----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**(x)      Quarterly Report Pursuant to Section 13 or 15(d) of**

**the      Securities Exchange Act of 1934**

**(      ) Transition Report Pursuant to Section 13 or 15(d) of**

**the      Securities Exchange Act of 1934**

| **ANALYSTS                INTERNATIONAL CORPORATION**                                                      |
|------------------------------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its charter)                                      |
|                                                                                                       |
| **Minnesota**                                                                                              | **41-0905408** |
| (State                of Incorporation)                                                                    | (IRS                Employer Identification No.) |
|                                                                                                       |   |
| **3601                West 76****th****Street**                                                            |   |
| **Minneapolis,                MN**                                                                         | **55435** |
| (Address                of Principal Executive Offices)                                                    | (Zip                Code) |
|                                                                                                       |   |
| Registrant’s                telephone number, including area code: **(952)                835-5900** |

----

----

----

**ANALYSTS      INTERNATIONAL CORPORATION**

**INDEX**

|                         |                                                                                                                      |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| **Part                I.**   | **FINANCIAL                INFORMATION**                                                                                  |
|                         |                                                                                                                      |
| Item                1.       | Financial                Statements                                                                                       |
|                         |                                                                                                                      |
|                         | Condensed                Consolidated Balance                Sheets                                                       |
|                         | March                31, 2007 (Unaudited) and December 30,                2006                                            |
|                         |                                                                                                                      |
|                         | Condensed                Consolidated Statements of                Operations                                             |
|                         | Three                months ended March 31, 2007 and April 1,                2006 (Unaudited)                             |
|                         |                                                                                                                      |
|                         | Condensed                Consolidated Statements of Cash                Flows                                             |
|                         | Three                months ended March 31, 2007 and April 1, 2006                (Unaudited)                             |
|                         |                                                                                                                      |
|                         | Notes                to Condensed Consolidated Financial                Statements (Unaudited)                            |
|                         |                                                                                                                      |
| Item                2.       | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations |
|                         |                                                                                                                      |
| Item                3.       | Quantitative                and Qualitative Disclosures                About Market Risk                                  |
|                         |                                                                                                                      |
| Item                4.       | Controls                and Procedures                                                                                    |
|                         |                                                                                                                      |
| **Part                II.**  | **OTHER                INFORMATION**                                                                                      |
|                         |                                                                                                                      |
| Item                1        | Legal                Proceedings                                                                                          |
|                         |                                                                                                                      |
| Item                1A.      | Risk                Factors                                                                                               |
|                         |                                                                                                                      |
| Item                2.       | Unregistered                Sales of Equity Securities and Use                of Proceeds                                 |
|                         |                                                                                                                      |
| Item                3.       | Defaults                Upon Senior                Securities                                                             |
|                         |                                                                                                                      |
| Item                4.       | Submission                of Matters to a Vote of Security                Holders                                         |
|                         |                                                                                                                      |
| Item                5.       | Other                Information                                                                                          |
|                         |                                                                                                                      |
| Item                6.       | Exhibits                                                                                                                  |
|                         |                                                                                                                      |
| Signatures                   |
|                         |                                                                                                                      |
| Exhibit                Index |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**Analysts      International Corporation**

**Condensed      Consolidated Balance      Sheets**

|                                                                     |   |                              |   |
|--------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                     |   | **March                31,** |   | **December                30,** |   |
| ***(In                thousands)***                                      |   | **2007**                     |   | **2006** |   |
|                                                                     |   | ***(Unaudited)***            |   |   |   |
|                                                                     |   |                         |   |   |   |   |   |
| **ASSETS**                                                               |   |                         |   |   |   |   |   |
| Current                assets:                                           |   |                         |   |   |   |   |   |
| Cash                and cash equivalents                                 |   | $                            | 81     |   | $ | 179 |   |
| Accounts                receivable, less allowance for doubtful accounts |   |                         | 65,277 |   |   | 64,196 |   |
| Prepaid                expenses and other current assets                 |   |                         | 3,834  |   |   | 2,484 |   |
| Total                current assets                                      |   |                         | 69,192 |   |   | 66,859 |   |
|                                                                     |   |                         |   |   |   |   |   |
| Property                and equipment, net                               |   |                         | 2,903  |   |   | 2,925 |   |
| Intangible                assets, net                                    |   |                         | 10,979 |   |   | 11,245 |   |
| Goodwill                                                                 |   |                         | 11,799 |   |   | 11,799 |   |
| Other                assets                                              |   |                         | 3,085  |   |   | 3,403 |   |
| Total                assets                                              |   | $                            | 97,958 |   | $ | 96,231 |   |
|                                                                     |   |                         |   |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS' EQUITY**                  |   |                         |   |   |   |   |   |
| Current                liabilities:                                      |   |                         |   |   |   |   |   |
| Accounts                payable                                          |   | $                            | 24,671 |   | $ | 24,411 |   |
| Salaries                and vacations                                    |   |                         | 5,362  |   |   | 7,416 |   |
| Line                of credit                                            |   |                         | 8,283  |   |   | 2,661 |   |
| Deferred                revenue                                          |   |                         | 1,029  |   |   | 1,267 |   |
| Restructuring                accrual, current portion                    |   |                         | 234    |   |   | 385 |   |
| Health                care reserves and other amounts                    |   |                         | 952    |   |   | 1,670 |   |
| Deferred                compensation                                     |   |                         | 383    |   |   | 208 |   |
| Total                current liabilities                                 |   |                         | 40,914 |   |   | 38,018 |   |
|                                                                     |   |                         |   |   |   |   |   |
| Non-current                liabilities:                                  |   |                         |   |   |   |   |   |
| Deferred                compensation                                     |   |                         | 2,312  |   |   | 2,319 |   |
| Restructuring                accrual                                     |   |                         | 116    |   |   | 160 |   |
| Other                long term liabilities                               |   |                         | 160    |   |   | -- |   |
| Shareholders’                equity                                |   |                         | 54,456 |   |   | 55,734 |   |
| Total                liabilities and shareholders equity                 |   | $                            | 97,958 |   | $ | 96,231 |   |

----

**Analysts      International Corporation**

**Condensed      Consolidated Statements of      Operations**

*(Unaudited)*

|                                                                   |   | **Three                Months Ended** |   |
|------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                   |   | **March                31,**          |   | **April                1,** |   |
| ***(In                thousands except per share amounts)***           |   | **2007**                              |   | **2006** |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Revenue:                                                               |   |                                  |   |   |   |   |   |
| Professional                services provided directly                 |   | $                                     | 62,951 |   | $ | 65,459 |   |
| Professional                services provided through subsuppliers     |   |                                  | 16,122 |   |   | 14,077 |   |
| Product                sales                                           |   |                                  | 10,034 |   |   | 7,305 |   |
| Total                revenue                                           |   |                                  | 89,107 |   |   | 86,841 |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Expenses:                                                              |   |                                  |   |   |   |   |   |
| Salaries,                contracted services and direct charges        |   |                                  | 65,821 |   |   | 65,196 |   |
| Cost                of product sales                                   |   |                                  | 8,705  |   |   | 6,444 |   |
| Selling,                administrative and other operating costs       |   |                                  | 16,250 |   |   | 14,492 |   |
| Amortization                of intangible assets                       |   |                                  | 266    |   |   | 253 |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Operating                (loss) income                                 |   |                                  | (1,935 | ) |   | 456 |   |
| Non-operating                income                                    |   |                                  | 7      |   |   | 4 |   |
| Interest                expense                                        |   |                                  | (78    | ) |   | (193 | ) |
|                                                                   |   |                                  |   |   |   |   |   |
| (Loss)                income before income taxes                       |   |                                  | (2,006 | ) |   | 267 |   |
| Income                tax expense                                      |   |                                  | 21     |   |   | 13 |   |
| Net                (loss) income                                       |   | $                                     | (2,027 | ) | $ | 254 |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Per                common share:                                       |   |                                  |   |   |   |   |   |
| Basic                (loss) income                                     |   | $                                     | (.08   | ) | $ | .01 |   |
| Diluted                (loss) income                                   |   | $                                     | (.08   | ) | $ | .01 |   |
|                                                                   |   |                                  |   |   |   |   |   |
| Average                common shares outstanding                       |   |                                  | 24,751 |   |   | 24,611 |   |
| Average                common and common equivalent shares outstanding |   |                                  | 24,751 |   |   | 25,086 |   |

----

**Analysts      International Corporation**

**Condensed      Consolidated Statements of Cash      Flows**

*(Unaudited)*

|                                                                |   | **Three                Months Ended** |   |
|---------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                |   | **March                31,**          |   | **April                1,** |   |
| ***(In                thousands)***                                 |   | **2007**                              |   | **2006** |   |
|                                                                |   |                                  |   |   |   |  |   |
| Net                cash used in operating activities                |   | $                                     | (5,265 | ) | $ | (5,093 | ) |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                flows from investing activities:                |   |                                  |   |   |   |   |   |
| Property                and equipment additions                     |   |                                  | (455   | ) |   | (326 | ) |
| Net                cash used in investing activities                |   |                                  | (455   | ) |   | (326 | ) |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                flows from financing activities:                |   |                                  |   |   |   |   |   |
| Net                change in line of credit                         |   |                                  | 5,622  |   |   | 5,492 |   |
| Net                cash provided by financing activities            |   |                                  | 5,622  |   |   | 5,492 |   |
|                                                                |   |                                  |   |   |   |   |   |
| Net                (decrease) increase in cash and cash equivalents |   |                                  | (98    | ) |   | 73 |   |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period     |   |                                  | 179    |   |   | 64 |   |
|                                                                |   |                                  |   |   |   |   |   |
| Cash                and cash equivalents at end of period           |   | $                                     | 81     |   | $ | 137 |   |
|                                                                |   |                                  |   |   |   |   |   |

----

**Analysts      International Corporation**

**Notes      to Condensed Consolidated Financial      Statements**

**1.**
**Summary      of Significant Accounting Policies**

*Goodwill      and Intangible Assets*

|                                            |   | **March                31, 2007** |   | **December                30, 2006** |   |
|-------------------------------------------------|--------|-----------------------------------|--------|--------------------------------------|--------|
|   ***(In                thousands)*** |   | **Gross****Carrying****Amount**   |   | **Accumulated****Amortization**      |   | **Other                Intangibles,****Net** |   | **Gross****Carrying****Amount** |   | **Accumulated****Amortization** |   | **Other                Intangibles,****Net** |   |
|                                            |   |                              |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer                list                    |   | $                                 | 15,075 |                                 | $      | (5,683 | ) | $ | 9,392 |   | $ | 15,075 |   | $ | (5,417 | ) | $ | 9,658 |   |
| Tradename                                       |   |                              | 1,720  |                                 |   | (133 | ) |   | 1,587 |   |   | 1,720 |   |   | (133 | ) |   | 1,587 |   |
|                                            |   | $                                 | 16,795 |                                 | $      | (5,816 | ) | $ | 10,979 |   | $ | 16,795 |   | $ | (5,550 | ) | $ | 11,245 |   |

*Accounting      Pronouncements*

*Fair      Value Measurements*

----

*Accounting      for Uncertainty in Income Taxes - an Interpretation of FASB Statement No.      109*
*Accounting      for Income Taxes. *

*Equity      Compensation Plans*

|                            |   | **2007**               |    | **2006**                                                                              |   |
|---------------------------------|--------|------------------------|---------|---------------------------------------------------------------------------------------|--------|
|                            |   |   **Grants** |    | **Weighted                Average Grant Date**** ****Fair                Value** |   |   **Grants** |   | **Weighted                Average Grant Date****Fair                Value** |   |
| Stock                options    |   |                   | 178,321 |                                                                                  | $      | .95 |   |   | 164,000 |   | $ | 1.62 |   |
| Restricted                stock |   |                   | 118,071 |                                                                                  | $      | 1.92 |   |   | 258,000 |   | $ | 2.43 |   |

**2.**
**Line      of Credit**

----

| **3.  ** | **Shareholders’                Equity** |
|--------------------|-----------------------------------------------|

|  ***(In                thousands)***     |   | **Three                Months Ended****March                31, 2007** |   |
|-----------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                          |   |                                                                   |   |   |
| Balance                at beginning of period |   | $                                                                      | 55,734 |   |
| Issuance                of common stock       |   |                                                                   | 110    |   |
| Restricted                shares amortization |   |                                                                   | 703    |   |
| FAS                123 R stock option expense |   |                                                                   | (64    | ) |
| Net                Loss                       |   |                                                                   | (2,027 | ) |
| Balance                at end of period       |   | $                                                                      | 54,456 |   |

| **4.  ** | **Earnings                Per Share** |
|--------------------|---------------------------------------|

|                                                                                      |   | **Three                Months Ended** |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|  ***(in                thousands, except per share amounts)***                       |   | **March                31, 2007**     |   | **April                1, 2006** |   |
|                                                                                      |   |                                  |   |   |   |   |   |
| Net                (loss) income                                                          |   | $                                     | (2,027 | ) | $ | 254 |   |
| Weighted-average                number of common shares outstanding                       |   |                                  | 24,751 |   |   | 24,611 |   |
| Dilutive                effect of equity compensation plan awards                         |   |                                  | --     |   |   | 475 |   |
| Weighted-average                number of common and common equivalent shares outstanding |   |                                  | 24,751 |   |   | 25,086 |   |
| Net                (loss) income per share:                                               |   |                                  |   |   |   |   |   |
| Basic                                                                                     |   | $                                     | (.08   | ) | $ | .01 |   |
| Diluted                                                                                   |   | $                                     | (.08   | ) | $ | .01 |   |

| **5.  ** | **Restructuring** |
|--------------------|-------------------|

|  ***(In                thousands)***   |   | **Office                Closure\****Consolidation** |   |
|---------------------------------------------|--------|-----------------------------------------------------|--------|
| Balance                at December 30, 2006 |   | $                                                   | 545    |   |
| Cash                expenditures            |   |                                                | (195   | ) |
| Balance                at March 31, 2007    |   | $                                                   | 350    |   |

----

**Item      2. Management's Discussion and Analysis of Financial Condition and      Results of Operations**

*Forward-Looking      Statements*

| ·   | The                market conditions in the IT services industry, including intense                competition for billable technical personnel at competitive rates,                strong                pricing pressures from many of the largest clients and the potential                impact of the Michigan economy on our solutions practices’                performance. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Difficulty                in identifying, attracting and retaining qualified technical personnel                and                its continued impact on our ability to grow our                business. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                possibility that reducing employee-related costs may limit our ability                to                retain or attract consultants. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to respond to client needs in a cost-controlled environment                and                the possibility that we may not be able to continue reducing costs                if it                affects our ability to deliver timely services or otherwise respond                to                customer needs or requirements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Significant                rapid growth in or a significant loss in our business, or significant                lengthening of payment terms with a major client could create a need                for                additional working capital. A failure to obtain additional working                capital, should it be required, would materially affect our                business. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Significant                changes in, reductions in or loss of a relationship with a major                client or technology partner. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Growth                opportunities may not be made available to                us. |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | Unsuccessful                implementation or execution of our new business plan/strategy, including                but not limited to: |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| o   | The                extent to which our investment and performance improvement initiatives                are                successful. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| o   | Our                success in hiring and retaining management with the necessary skills                and                experience. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------|

| o   | Lack                of success with our strategy for capturing any growth opportunities,                including geographic expansion. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| o   | Decisions                not to fully implement certain aspects of the new business                plan. |
|---------------|----------------------------------------------------------------------------------------------------------|

*Introduction      and Overview of First Quarter 2007 Events*

| ·   | Staffing;                serving our large high-volume, major accounts. This service is focused                on                providing reasonably priced resources to volume buyers effectively                and on                demand. This is driven by a recruiting-centric                approach, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Custom                Services;                serving middle market customers in targeted geographies. This part                of our                business focuses on understanding the customers’ business and providing                professional resources for application development and integration,                project managers, business analysts and other highly-skilled resources,                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Technology                Solutions;                providing network services, infrastructure, application integration,                I.P.                telephony and hardware solutions to the middle                market. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Market      Conditions and Economics of Our Business*

*Strategy*

| ·   | Aligning                our operations and services within selected target markets. This                means we                will invest primarily in developing middle market customers in targeted                geographies and in building our professional resource talent                pools, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Improving                our value proposition by providing services and benefit to customers                which                enhance their talent resources, productivity and                profitability, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Leveraging                our growth off a strong base of current and past customers,                and |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Positioning                Analysts International as a best-in-class IT services provider to                mid-market customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

| §   | IP                Communications, which includes Wireless, IP Telecommunications, Call                Center and Security Services |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| §   | Enterprise                Networking, which includes storage product support and VMware services |
|--------------------|--------------------------------------------------------------------------------------------------|

| §   | Lawson                Services, which includes integration, customization, and administration                of                Lawson Software applications |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | IT                Outsourcing which includes Application Outsourcing, Help Desk, Hosting,                and Field Engineering services |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

*Other      Factors*

*Overview      of Results of First Quarter 2007 Operations*

----

*Estimates      of Future Operating Results*

*Allowance      for Doubtful Accounts*

*Accrual      of Unreported Medical Claims*

*Revenue      Recognition*

----

*Subsupplier      Revenue*

*Goodwill      and Other Intangible Impairment*

*Deferred      Taxes*

*Restructuring      and other severance related costs*

*Sales      Taxes*

----

*Income      Taxes*

*Accounting      for the Uncertainty in Income Taxes*

*Stock-Based      Compensation*

----

**RESULTS      OF OPERATIONS, THREE-MONTH PERIODS ENDED MARCH 31, 2007 VS. APRIL 1,      2006**

|                                                                    |       | **Three****Months                Ended** |       | **Three****Months                Ended** |       |                                   |       |       |       |       |       |
|-------------------------------------------------------------------------|------------|------------------------------------------|------------|------------------------------------------|------------|----------------------------------------|------------|------------|------------|------------|------------|
|                                                                    |       | **March                31, 2007**        |       | **April                1, 2006**         |       | **Increase                (Decrease)** |       |
|                                                                    |       |                                     | ** ** | ** **                               | ** ** | **%                  of**              | ** ** | ** ** | ** ** | ** ** | ** ** | **%                of** | ** ** | ** ** |   |   | ** ** | **%** | ** ** | ** ** | **As                % of** | ** ** |
| ***(dollars                in thousands)***                             | ** ** | ** **                               | **Amount** | ** **                               | ** ** | ** Revenue**                      | ** ** | ** ** | **Amount** | ** ** | ** ** | **Revenue** | ** ** | ** ** | **Amount** | ** ** | ** ** | **Inc                (Dec** | **)** | ** ** | **Revenue** |   |
| Revenue:                                                                |       |                                     |       |                                     |       |                                   |       |       |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Professional                services provided directly                  |       | $                                        | 62,951     |                                     |       | 70.6                                   | %          | $          | 65,459     |       |       | 75.4 | % | $ | (2,508 | ) |   | (3.8 | )% |   | (4.8 | )% |
| Professional                services provided through Subsuppliers |       |                                     | 16,122     |                                     |       | 18.1                                   |       |       | 14,077     |       |       | 16.2 |   |   | 2,045 |   |   | 14.5 |   |   | 1.9 |   |
| Product                sales                                            |       |                                     | 10,034     |                                     |       | 11.3                                   |       |       | 7,305      |       |       | 8.4 |   |   | 2,729 |   |   | 37.4 |   |   | 2.9 |   |
| Total                revenue                                            |       |                                     | 89,107     |                                     |       | 100.0                                  |       |       | 86,841     |       |       | 100.0 |   |   | 2,266 |   |   | 2.6 |   |   | 0.0 |   |
|                                                                    |       |                                     |       |                                     |       |                                   |       |       |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Salaries,                contracted services and direct charges         |       |                                     | 65,821     |                                     |       | 73.9                                   |       |       | 65,196     |       |       | 75.1 |   |   | 625 |   |   | 1.0 |   |   | (1.2 | ) |
| Cost                of product sales                                    |       |                                     | 8,705      |                                     |       | 9.8                                    |       |       | 6,444      |       |       | 7.4 |   |   | 2,261 |   |   | 35.1 |   |   | 2.4 |   |
| Selling,                administrative and other operating costs        |       |                                     | 16,250     |                                     |       | 18.2                                   |       |       | 14,492     |       |       | 16.7 |   |   | 1,758 |   |   | 12.1 |   |   | 1.5 |   |
| Amortization                of intangible assets                        |       |                                     | 266        |                                     |       | 0.3                                    |       |       | 253        |       |       | 0.3 |   |   | 13 |   |   | 5.1 |   |   | 0.0 |   |
| Non-operating                income                                     |       |                                     | (7         | )                                        |       | 0.0                                    |       |       | (4         | )          |       | 0.0 |   |   | 3 |   |   | 75.0 |   |   | 0.0 |   |
| Interest                expense                                         |       |                                     | 78         |                                     |       | 0.1                                    |       |       | 193        |       |       | 0.2 |   |   | (115 | ) |   | (59.6 | ) |   | (0.1 | ) |
|                                                                    |       |                                     |       |                                     |       |                                   |       |       |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Loss                before income taxes                                 |       |                                     | (2,006     | )                                        |       | (2.3                                   | )          |       | 267        |       |       | 0.3 |   |   | (2,273 | ) |   | (851.3 | ) |   | (2.6 | ) |
| Income                tax expense                                       |       |                                     | 21         |                                     |       | 0.0                                    |       |       | 13         |       |       | 0.0 |   |   | 8 |   |   | 61.5 |   |   | 0.0 |   |
|                                                                    |       |                                     |       |                                     |       |                                   |       |       |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                 |       | $                                        | (2,027     | )                                        |       | (2.3                                   | )%         | $          | 254        |       |       | 0.3 | % | $ | (2,281 | ) |   | (898.0 | )% |   | (2.6 | )% |
|                                                                    |       |                                     |       |                                     |       |                                   |       |       |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Personnel:                                                              |       |                                     |       |                                     |       |                                   |       |       |       |       |       |   |   |   |   |   |   |   |   |   |   |   |
| Management                and administrative                            |       |                                     | 391        |                                     |       |                                   |       |       | 409        |       |       |   |   |   | (18 | ) |   | (4.4 | ) |   |   |   |
| Technical                consultants                                    |       |                                     | 2,170      |                                     |       |                                   |       |       | 2,378      |       |       |   |   |   | (208 | ) |   | (8.7 | ) |   |   |   |

*Revenue*

*Salaries,      Contracted Services and Direct Charges*

----

*Cost      of Product Sales*

*Selling,      Administrative and Other Operating Costs*

*Non-Operating      Income*

*Interest      Expense*

*Income      Taxes*

*Personnel*

----

|                                                   |   |                         |   |                            |   |           |   | **Percentage** |   |
|--------------------------------------------------------|--------|------------------------------|--------|---------------------------------|--------|----------------|--------|----------------|--------|
|                                                   |   | **March                31,** |   | **December                30,** |   | **Increase**   |   | **Increase**   |   |
| ***(In                thousands except percentages)*** |   | **2007**                     |   | **2006**                        |   | **(Decrease)** |   | **(Decrease)** |   |
|                                                   |   |                         |   |                            |   |           |   |           |   |   |   |   |   |
| Cash                and cash equivalents               |   | $                            | 81     |                            | $      | 179            |   | $              | (98    | ) |   | (54.7 | )% |
| Accounts                receivable                     |   |                         | 65,277 |                            |   | 64,196         |   |           | 1,081  |   |   | 1.7 |   |
| Other                current assets                    |   |                         | 3,834  |                            |   | 2,484          |   |           | 1,350  |   |   | 54.3 |   |
| Total                current assets                    |   | $                            | 69,192 |                            | $      | 66,859         |   | $              | 2,333  |   |   | 3.5 | % |
|                                                   |   |                         |   |                            |   |           |   |           |   |   |   |   |   |
| Accounts                payable                        |   | $                            | 24,671 |                            | $      | 24,411         |   | $              | 260    |   |   | 1.1 | % |
| Salaries                and vacations                  |   |                         | 5,362  |                            |   | 7,416          |   |           | (2,054 | ) |   | (27.7 | ) |
| Line                of credit                          |   |                         | 8,283  |                            |   | 2,661          |   |           | 5,622  |   |   | 211.3 |   |
| Restructuring                accruals current          |   |                         | 234    |                            |   | 385            |   |           | (151   | ) |   | (39.2 | ) |
| Other                current liabilities               |   |                         | 2,364  |                            |   | 3,145          |   |           | (781   | ) |   | (24.8 | ) |
| Total                current liabilities               |   | $                            | 40,914 |                            | $      | 38,018         |   | $              | 2,896  |   |   | 7.6 | % |
|                                                   |   |                         |   |                            |   |           |   |           |   |   |   |   |   |
| Working                capital                         |   | $                            | 28,278 |                            | $      | 28,841         |   | $              | (563   | ) |   | (2.0 | )% |
| Current                ratio                           |   |                         | 1.69   |                            |   | 1.76           |   |           | (.07   | ) |   | (4.0 | ) |
|                                                   |   |                         |   |                            |   |           |   |           |   |   |   |   |   |
| Total                shareholders’ equity        |   | $                            | 54,456 |                            | $      | 55,734         |   | $              | (1,278 | ) |   | (2.3 | )% |

*Cash      Requirements*

*Sources      and Uses of Cash/Credit Facility*

----

|  ***(in                thousands)***                                     |   |  **1                Year** |   |  **2-3                Years** |   |  **4-5                Years** |   | **Over                5****Years** |    |  **Total** |    |
|-------------------------------------------------------------------------------|--------|---------------------------------|--------|------------------------------------|--------|------------------------------------|--------|------------------------------------|---------|-----------------|---------|
|                                                                          |   |                            |   |                               |   |                               |   |                               |    |            |    |   |   |   |   |   |
| Line                of credit         |   |  $                         | 0      |                               | $      | 8,283                              |   |  $                            | 0  |            |  $ | 0 |   | $ | 8,283 |   |
|                                                                          |   |                            |   |                               |   |                               |   |                               |    |            |    |   |   |   |   |   |
| Operating                leases                                               |   |                            | 4,139  |                               |   | 5,019                              |   |                               | 3,931   |            |    | 328 |   |   | 13,417 |   |
|                                                                          |   |                            |   |                               |   |                               |   |                               |    |            |    |   |   |   |   |   |
| Deferred                compensation                                          |   |                            | 383    |                               |   | 1,448                              |   |                               | 204     |            |    | 660 |   |   | 2,695 |   |
|                                                                          |   |                            |   |                               |   |                               |   |                               |    |            |    |   |   |   |   |   |
| Total                                                                         |   | $                               | 4,522  |                               | $      | 14,750                             |   | $                                  | 4,135   |            | $       | 988 |   | $ | 24,395 |   |

*      Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement      No. 109,*
*      Accounting for Income Taxes.*

*Fair      Value Measurements.*

----

**Item      3. Quantitative and Qualitative Disclosures      About Market Risk**

**Item      4. Controls and      Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A. Risk Factors**

*Our      ability to meet our current revenue, earnings and cash flow goals is      substantially dependent on the successful implementation of our new business      plan.*

| ·   | We                decide than we cannot, or it is inadvisable to, implement all or                some                aspects of our plan. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Demand                for labor in the IT staffing and solutions markets does not meet                levels                projected in our business plan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                cannot identify and/or retain management personnel with the skills                and                experience we believe the plan                requires. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Productivity                initiatives and investments in growth do not provide the expected                returns. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Geographic                areas selected for expansion of the Company’s presence with middle-market                clients do not produce the demand for services or revenue growth                expected. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Costs                associated with implementing the new plan, including but not limited                to,                consultation fees, implementation of the growth initiatives of the                plan                and other aspects of the plan are significantly higher than                expected. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Improvement                in productivity/utilization rates in our solutions practices is not                attained. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3.** **Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security      Holders**

**Item      5. Other Information**

**Item      6. Exhibits**

| *^                Exhibit 10.1 |   | Terms                of employment for Michael J. LaVelle, President and Chief Executive                Officer (contained in From 8-K, filed February 21, 2007 Commission                File                No. 0-4090, incorporated by reference). |
|--------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| +                Exhibit 31.1  |   | Certification                of CEO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                                                                         |
| +                Exhibit 31.2  |   | Certification                of CFO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                                                                         |
| ++                Exhibit 32   |   | Certification                of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                Section 906 of the Sarbanes Oxley Act of                2002.                                                    |

| *  |   | Denotes                a management contract or compensatory plan or arrangement required                to be                filed as an exhibit to this quarterly report pursuant to Item 6 of                Form                10-Q. |
|----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ^  |   | Denotes                an exhibit previously filed with the Securities and Exchange Commission                and incorporated herein by reference.                                                                                       |
| +  |   | Filed                herewith                                                                                                                                                                                                             |
| ++ |   | Furnished                herewith                                                                                                                                                                                                         |

----

**SIGNATURES**

|                              | ANALYSTS                INTERNATIONAL CORPORATION |
|-----------------------------------|---------------------------------------------------|
|                              | (Registrant)                                      |
|                              |                                              |   |
|                              |                                              |   |
|                              |                                              |   |
| Date:                May 10, 2007 | By:                                               | /s/                Michael J. LaVelle |
|                              |                                              | Michael                J. LaVelle |
|                              |                                              | Interim                Chief Executive Officer |
|                              |                                              | (Principal                Executive Officer) |
|                              |                                              |   |
|                              |                                              |   |
| Date:                May 10, 2007 | By:                                               | /s/                David J. Steichen |
|                              |                                              | David                J. Steichen |
|                              |                                              | Chief                Financial Officer |
|                              |                                              | (Principal                Financial and Accounting Officer) |

----

**EXHIBIT      INDEX**

| Exhibit                31.1 |   | Certification                of CEO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                      |
|-----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit                31.2 |   | Certification                of CFO Pursuant to Section 302 of the Sarbanes Oxley Act of                2002.                                                                                      |
| Exhibit                32   |   | Certification                of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                section 906 of the Sarbanes Oxley Act of                2002. |