UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D.C.  20549





**FORM
      10-Q**





Quarterly
      Report Under Section 13 or 15(d) of


The
      Securities Exchange Act of 1934











For
                quarter ended: June 30, 2007
            Commission
                File No. 0-11178








UTAH
      MEDICAL PRODUCTS, INC.


(Exact
      name of Registrant as specified in its charter)








UTAH
            87-0342734(State
                or other jurisdiction of
              incorporation
                or organization)
            (I.R.S.
                Employer
              Identification
                No.)








7043
      South 300 West


Midvale,
      Utah  84047


Address
      of principal executive offices





Registrant's
        telephone number: (801)
        566-1200




Indicate
      by check mark whether the
      registrant (1) has filed all reports required to be filed by Sections 13 or
      15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
      (or
      for such shorter period that the registrant was required to file such reports)
      and; (2) has been subject to such filing requirements for the past 90
      days.   Yes**x**Noo





Indicate
      by check mark whether the
      registrant is a large accelerated filer, an accelerated filer, or a
      non-accelerated filer.  See definition of “accelerated filer” and
“large accelerated filer” in Rule 12b-2 of the Exchange Act  (check
      one):


Large
                accelerated filer o
            Accelerated
                filer **x**
            Non-accelerated
                filer o





Indicate
      by check mark whether the
      registrant is a shell company (as defined in Rule 12b-2 of the
      Act).  Yes o   No **x**





Indicate
      the number of shares
      outstanding of each of the issuer’s classes of common stock as of August 6,
      2007: 3,919,000.

















UTAH
      MEDICAL PRODUCTS, INC.


INDEX
      TO FORM 10-Q








PART
                I - FINANCIAL INFORMATION
            PAGEItem
                1.
            Financial
                StatementsConsolidated
                Condensed Balance Sheets as of June 30, 2007 and December 31,
                2006
            1Consolidated
                Condensed Statements of Income for the three and six months ended
                June 30,
                2007 and June 30, 2006
            2Consolidated
                Condensed Statements of Cash Flows for the six months ended June
                30, 2007
                and June 30, 2006
            3Notes
                to Consolidated Condensed Financial Statements
            4Item
                2.
            Management’s
                Discussion and Analysis of Financial
                Condition and Results of Operations
            6Item
                3.
            Quantitative
                and Qualitative Disclosures about Market Risk
            11Item
                4.
            Controls
                and Procedures
            11PART
                II – OTHER INFORMATIONItem
                1A.
            Risk
                Factors
            12Item
                2.
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            12Item
                4.
            Submission
                of Matters to a Vote of Security Holders
            13Item
                6.
            Exhibits
            13SIGNATURES
            
            13

















PART
      I  -  FINANCIAL INFORMATION





**Item
      1.  Financial Statements**





UTAH
      MEDICAL PRODUCTS, INC. AND SUBSIDIARIES


CONSOLIDATED
      CONDENSED BALANCE SHEETS AS OF


JUNE
      30, 2007 AND DECEMBER 31, 2006


(in
      thousands)





(unaudited)
            
            
            (audited)ASSETS
            
            JUNE
                30,
              2007
            
            
            DECEMBER31,
              2006Current
                assets:Cash
            
            $
            608
            
            
            $
            610Investments,
                available-for-sale
            
            
            20,474
            
            
            
            20,439Accounts
                & other receivables, net
            
            
            4,124
            
            
            
            3,746Inventories
            
            
            3,231
            
            
            
            3,037Other
                current assets
            
            
            658
            
            
            
            579Total
                current assets
            
            
            29,095
            
            
            
            28,411Property
                and equipment, net
            
            
            8,317
            
            
            
            8,331Goodwill
            
            
            7,191
            
            
            
            7,191Other
                intangible assets
            
            
            2,614
            
            
            
            2,588Other
                intangible assets - accumulated amortization
            
            
            (2,358
            )
            
            
            (2,334
            )Other
                intangible assets, net
            
            
            256
            
            
            
            254TOTAL
            
            $
            44,859
            
            
            $
            44,187LIABILITIES
                AND STOCKHOLDERS' EQUITYCurrent
                liabilities:Accounts
                payable
            
            $
            557
            
            
            $
            599Accrued
                expenses
            
            
            2,258
            
            
            
            2,341Current
                portion of note payable
            
            
            440
            
            
            
            441Total
                current liabilities
            
            
            3,255
            
            
            
            3,381Note
                payable
            
            
            4,041
            
            
            
            4,383Deferred
                income taxes
            
            
            314
            
            
            
            308Total
                liabilities
            
            
            7,610
            
            
            
            8,072Stockholders'
                equity:Preferred
                stock - $.01 par value; authorized - 5,000 shares; no shares issued
                or
                outstandingCommon
                stock - $.01 par value; authorized - 50,000 shares; issued - June
                30,
                2007, 3,924 shares and December 31, 2006, 3,944 shares
            
            
            39
            
            
            
            39Accumulated
                other comprehensive income
            
            
            (716
            )
            
            
            (720
            )Retained
                earnings
            
            
            37,926
            
            
            
            36,796Total
                stockholders' equity
            
            
            37,249
            
            
            
            36,115TOTAL
            
            $
            44,859
            
            
            $
            44,187





*see
      notes to consolidated condensed financial statements*





1





UTAH
      MEDICAL PRODUCTS, INC. AND SUBSIDIARIES


CONSOLIDATED
      CONDENSED STATEMENTS OF INCOME FOR THE


THREE
      AND SIX MONTHS ENDED JUNE 30, 2007 AND JUNE 30, 2006


(in
      thousands - unaudited)





Three
                Months Ended
            
            
            Six
                Months EndedJune
                30,
            
            
            June
                30,2007
            
            
            2006
            
            
            2007
            
            
            2006Sales,
                net
            
            $
            7,211
            
            
            $
            7,293
            
            
            $
            14,329
            
            
            $
            14,396Cost
                of goods sold
            
            
            3,205
            
            
            
            3,216
            
            
            
            6,387
            
            
            
            6,312Gross
                margin
            
            
            4,005
            
            
            
            4,077
            
            
            
            7,942
            
            
            
            8,084Operating
                expenseSelling,
                general and administrative
            
            
            1,179
            
            
            
            1,267
            
            
            
            2,329
            
            
            
            2,574Research
                & development
            
            
            109
            
            
            
            215
            
            
            
            205
            
            
            
            283Total
            
            
            1,288
            
            
            
            1,482
            
            
            
            2,534
            
            
            
            2,857Income
                from operations
            
            
            2,717
            
            
            
            2,595
            
            
            
            5,408
            
            
            
            5,227Other
                income
            
            
            314
            
            
            
            571
            
            
            
            615
            
            
            
            985Income
                before provision for income taxes
            
            
            3,031
            
            
            
            3,166
            
            
            
            6,022
            
            
            
            6,212Provision
                for income taxes
            
            
            1,046
            
            
            
            1,107
            
            
            
            2,093
            
            
            
            2,118Net
                income
            
            $
            1,985
            
            
            $
            2,059
            
            
            $
            3,929
            
            
            $
            4,094Earnings
                per common shares (basic)
            
            $
            0.50
            
            
            $
            0.52
            
            
            $
            1.00
            
            
            $
            1.04Earnings
                per common share (diluted)
            
            $
            0.50
            
            
            $
            0.51
            
            
            $
            0.98
            
            
            $
            1.01Shares
                outstanding - basic
            
            
            3,935
            
            
            
            3,946
            
            
            
            3,938
            
            
            
            3,949Shares
                outstanding - diluted
            
            
            3,995
            
            
            
            4,043
            
            
            
            4,004
            
            
            
            4,056





*see
      notes to consolidated condensed financial statements*





2





UTAH
      MEDICAL PRODUCTS, INC. AND SUBSIDIARIES


CONSOLIDATED
      CONDENSED STATEMENTS OF CASH FLOWS


FOR
      THE SIX MONTHS ENDED JUNE 30, 2007 AND JUNE 30, 2006


(in
      thousands - unaudited)





June
                30,2007
            
            
            2006CASH
                FLOWS FROM OPERATING ACTIVITIES:Net
                income
            
            $
            3,929
            
            
            $
            4,094Adjustments
                to reconcile net income to net cash provided by operating
                activities:Depreciation
                and amortization
            
            
            301
            
            
            
            444Gain
                on investments
            
            
            (511
            )
            
            
            (885
            )Provision
                for (recovery of) losses on accounts receivable
            
            
            0
            
            
            
            4Deferred
                income taxes
            
            
            -
            
            
            
            (15
            )Stock-based
                compensation expense
            
            
            44
            
            
            
            76Tax
                benefit attributable to exercise of stock options
            
            
            34
            
            
            
            2,155Changes
                in operating assets and liabilities:Accounts
                receivable - trade
            
            
            (442
            )
            
            
            (110
            )Accrued
                interest and other receivables
            
            
            77
            
            
            
            676Inventories
            
            
            (235
            )
            
            
            (231
            )Prepaid
                expenses and other current assets
            
            
            (79
            )
            
            
            (69
            )Accounts
                payable
            
            
            (43
            )
            
            
            217Accrued
                expenses
            
            
            (87
            )
            
            
            (436
            )Total
                adjustments
            
            
            (941
            )
            
            
            1,826Net
                cash provided by operating activities
            
            
            2,988
            
            
            
            5,920CASH
                FLOWS FROM INVESTING ACTIVITIES:Capital
                expenditures for:Property
                and equipment
            
            
            (152
            )
            
            
            (210
            )Intangible
                assets
            
            
            (10
            )
            
            
            -Purchases
                of investments
            
            
            (800
            )
            
            
            (3,900
            )Proceeds
                from sale of investments
            
            
            1,240
            
            
            
            3,590Net
                cash (used in) provided by investing activities
            
            
            278
            
            
            
            (520
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Proceeds
                from issuance of common stock - options
            
            
            125
            
            
            
            444Common
                stock purchased and retired
            
            
            (1,240
            )
            
            
            (1,590
            )Common
                stock purchased and retired - options
            
            
            -
            
            
            
            (2,488
            )Repayments
                of note payable
            
            
            (452
            )
            
            
            (403
            )Payment
                of dividends
            
            
            (1,697
            )
            
            
            (1,368
            )Net
                cash used in financing activities
            
            
            (3,264
            )
            
            
            (5,405
            )Effect
                of exchange rate changes on cash
            
            
            (4
            )
            
            
            (8
            )NET
                DECREASE IN CASH
            
            
            (2
            )
            
            
            (13
            )CASH
                AT BEGINNING OF PERIOD
            
            
            610
            
            
            
            703CASH
                AT END OF PERIOD
            
            $
            608
            
            
            $
            690SUPPLEMENTAL
                DISCLOSURE OF CASH FLOW INFORMATION:Cash
                paid during the period for income taxes
            
            $
            1,852
            
            
            $
            136Cash
                paid during the period for interest
            
            
            135
            
            
            
            125





*see
      notes to consolidated condensed financial statements*





3





UTAH
      MEDICAL PRODUCTS, INC.


NOTES
      TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


(unaudited)





(1)   
      The unaudited financial statements have been prepared in accordance with the
      instructions to form 10-Q and do not include all of the information and note
      disclosures required by accounting principles generally accepted in the United
      States.  These statements should be read in conjunction with the
      financial statements and notes included in the Utah Medical Products, Inc.
      ("UTMD" or "the Company") annual report on form 10-K for the year ended December
      31, 2006.  In the opinion of management, the accompanying financial
      statements include all adjustments (consisting only of normal recurring
      adjustments) necessary to summarize fairly the Company's financial position
      and
      results of operations.  Dollar amounts are in thousands except
      per-share amounts, and where noted.





(2)   
      Inventories at June 30, 2007 and December 31, 2006 (in thousands) consisted
      of
      the following:





June
                30,
            
            
            December
                31,2007
            
            
            2006Finished
                goods
            
            $
            1,007
            
            
            $
            1,002Work-in-process
            
            
            945
            
            
            
            984Raw
                materials
            
            
            1,279
            
            
            
            1,051Total
            
            $
            3,231
            
            
            $
            3,037







(3)   
      In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
      Interpretation No. 48, “Accounting for Uncertainty in Income Taxes—an
      interpretation of FASB Statement No. 109.”  This statement
      clarifies the accounting for uncertainty in income tax positions.  The
      Company or one of its subsidiaries files or has filed income tax returns in
      the
      U.S. federal jurisdiction, in various states and in Ireland.  With few
      exceptions, UTMD is no longer subject to U.S. federal, state and local, or
      non-U.S. income tax examinations by tax authorities for years before
      2003.  In 2005, the Internal Revenue Service examined the Company’s
      federal income tax returns for 2002 – 2004 and suggested one immaterial
      adjustment which the Company made.


The
      Company adopted the
      provisions of FIN 48 on January 1, 2007.  UTMD did not make any
      adjustment to opening retained earnings as a result of the
      implementation.  The Company recognizes interest accrued related to
      unrecognized tax benefits along with penalties in operating
      expenses.  During the three and six month periods ended June 30, 2007
      and 2006, the Company did not recognize any interest and penalties relating
      to
      income taxes.  UTMD did not have any accrual for the payment of
      interest and penalties at June 30, 2007 or December 31, 2006.





(4)   
      Stock-Based Compensation.  At June 31, 2007 the Company had
      stock-based employee compensation plans, which authorized the grant of stock
      options to eligible employees and directors.  Effective January 1,
      2006, the Company adopted Statement of Financial Accounting Standards (SFAS)
      123R, *Share-Based Payment*, using the modified prospective
      method.  This statement requires the Company to recognize compensation
      cost based on the grant date fair value of options granted to employees and
      directors.  In the quarters ended June 30, 2007 and 2006, the Company
      recognized $25 and $33, respectively, in compensation cost related to adoption
      of the statement.   In the six months ended June 30, 2007 and
      2006, the Company recognized $44 and $76, respectively, in compensation cost
      related to adoption of the statement.





(5)   
      Comprehensive Income.  Comprehensive income for the three and six
      months ending June 30, 2007 was $1,992 and $3,932, net of taxes,
      respectively.  The components used to adjust net income in order to
      obtain comprehensive income were foreign currency translation adjustments of
      $7
      and $3, respectively.








4





(6)   
      Warranty Reserve.   The Company accrues provisions for estimated
      costs that may be incurred for product warranties and uncollectible
      accounts.  The amount of the provision is adjusted, as required, to
      reflect historical experience.  The following table summarizes changes
      to UTMD’s warranty reserve during 2Q 2007:





Beginning
                Balance, April 1, 2007
            
            $
            60Changes
                in Warranty Reserve during 2Q 2007:Aggregate
                reductions for warranty repairs
            
            
            (20
            )Aggregate
                changes for warranties issued during reporting period
            
            
            -Aggregate
                changes in reserve related to preexisting warranties
            
            
            -Ending
                Balance, June 30, 2007
            
            $
            40







(7)   
      Investments.  As of June 30, 2007, all of the Company’s investments
      are held in Fidelity Cash Reserves. Changes
      in the unrealized holding gain on investment securities available-for-sale
      and
      reported as a separate component of accumulated other comprehensive income
      are
      as follows:





2Q
                2007
            
            
            2Q
                2006Balance,
                beginning of period
            
            $
            -
            
            
            $
            108Reversal
                of unrealized gain from securities included in beginning balance,
                realized
                in the period
            
            
            -
            
            
            
            (163
            )Unrealized
                holding gains (losses), in equity securities
            
            
            -
            
            
            
            (42
            )Deferred
                income taxes on unrealized holding gain (loss)
            
            
            -
            
            
            
            80Balance,
                end of period
            
            $
            -
            
            
            $
            (17
            )







(8)  
      Forward-Looking Information.   This report contains certain
      forward-looking statements and information relating to the Company that are
      based on the beliefs of management as well as assumptions made by, and
      information currently available to, management.  When used in this
      document, the words “anticipate,” “believe,” “should,”  “project,”
“estimate,” “expect,” “intend” and similar expressions, as they relate to the
      Company or its management, are intended to identify forward-looking
      statements.  Such statements reflect the current view of the Company
      respecting future events and are subject to certain risks, uncertainties, and
      assumptions, including the risks and uncertainties noted throughout this
      document.  Although the Company has attempted to identify important
      factors that could cause the actual results to differ materially, there may
      be
      other factors that cause the forward statement not to come true as anticipated,
      believed, projected, expected, or intended.  Should one or more of
      these risks or uncertainties materialize, or should underlying assumptions
      prove
      incorrect, actual results may differ materially from those described herein
      as
      anticipated, believed, projected, estimated, expected, or intended.


General
      risk factors that may
      impact the Company’s revenues include the market acceptance of competitive
      products; administrative practices of group purchasing organizations;
      obsolescence caused by new technologies; the possible introduction by
      competitors of new products that claim to have many of the advantages of UTMD’s
      products at lower prices; the timing and market acceptance of UTMD’s own new
      product introductions; changes in clinical practices; UTMD’s ability to
      efficiently and responsively manufacture its products; including the possible
      effects of lack of performance of suppliers; success in gaining access to
      important global distribution channels; budgetary constraints; the timing of
      regulatory approvals for newly introduced products; regulatory intervention
      in
      current operations; and third party reimbursement of health care costs of
      customers.


Risk
      factors, in addition to the
      risks outlined in the previous paragraph that may impact the Company’s assets
      and liabilities, as well as cash flows, include: risks inherent to companies
      manufacturing products used in healthcare, including claims resulting from
      the
      improper use of devices and other product liability claims; defense of the
      Company’s intellectual property or claims of patent infringement by others;
      productive use of assets in generating revenues; management of working capital,
      including inventory levels required to meet delivery commitments at a minimum
      cost; and timely collection of accounts receivable.


Additional
      risk factors that may
      affect non-operating income include: the continuing viability of the Company’s
      technology licensing agreements; actual cash and investment balances; asset
      dispositions; and acquisition activities that may require external
      funding.











5





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





General


UTMD
      manufactures and markets a
      well-established range of primarily single-use specialty medical
      devices.  The Company’s Form 10-K Annual Report for the year ended
      December 31, 2006 provides a detailed description of products, technologies,
      markets, regulatory issues, business initiatives, resources and business risks,
      among other details, and should be read in conjunction with this
      report.  Because of the relatively short span of time, results for any
      given three month period in comparison with a previous three month period may
      not be indicative of comparative results for the year as a
      whole.  Dollar amounts in the report are in thousands, except
      per-share amounts or where otherwise noted.





Analysis
      of Results of Operations


a)  Overview


In
      second quarter (2Q) 2007,
      UTMD’s consolidated global sales were 1% lower than in 2Q 2006.  2Q
      2007 earnings per share (EPS) were $.50 compared to $.51 EPS in 2Q
      2006.  UTMD achieved the following profitability measures for 2Q 2007
      and 2Q 2006:




2Q
                07
            
            2Q
                06Gross
                Profit Margin:
            55.5%
            
            55.9%Operating
                Profit Margin:
            37.7%
            
            35.6%Net
                Income Margin:
            27.5%
            
            28.2%





For
      first
      half (1H) 2007, UTMD’s total sales were only slightly less than in 1H 2006. 1H
      2007 EPS were $0.98 compared to $1.01 EPS in 1H 2006.  UTMD achieved
      the following profitability as a ratio of sales in 1H 2007 and 1H
      2006:




1H
                07
            
            1H
                06Gross
                Profit Margin:
            55.4%
            
            56.2%Operating
                Profit Margin:
            37.7%
            
            36.3%Net
                Income Margin:
            27.4%
            
            28.4%





b)  Revenues


The
      Company recognizes revenue
      at the time of shipment as title generally passes to the customer at that
      time.  Revenue recognized by UTMD is based upon documented
      arrangements and fixed contracts in which the selling price is fixed prior
      to
      completion of an order.  Revenue from product and service sales is
      generally recognized at the time the product is shipped or service completed
      and
      invoiced, and collectibility is reasonably assured.  There are
      circumstances under which revenue may be recognized when product is not shipped,
      which meet the criteria of SAB 104:  the Company provides engineering
      services, for example, design and production of manufacturing tooling that
      may
      be used in subsequent UTMD manufacturing of custom components for other
      companies.  This revenue is recognized when UTMD’s service has been
      completed according to a fixed contractual agreement.


Total
      sales were 1% lower in 2Q
      2007 compared to 2Q 2006.  International sales were 8% higher while
      domestic sales were down 5%.  Domestic sales were comprised of
      domestic OEM sales (sales of components to other companies for use in their
      products) down 4% and domestic direct sales (sales of finished devices to users
      or distributors) down 5%.  Domestic OEM sales and international sales
      have an uneven quarter-to-quarter sales pattern because customers tend to
      purchase several months’ supply of products at a time to minimize
      costs.  Trade shipments from UTMD’s Ireland facility were up 13% in
      EURO terms, and up 21% in USD terms due to a weaker US Dollar.


Domestic
      direct sales excluding
      obstetrics products were about the same in 2Q 2007 as in 2Q 2006.  The
      domestic obstetrics product sales, which products are sold to hospitals, were
      down substantially as a result of loss of market share due to significant price
      reductions offered by competitors in 2007, and the continued trend of
      administrative arrangements limiting physician choice of devices used in
      L&D.  UTMD’s objective is to replace sales lost due to increased
      competition by continued development of unique products that provide significant
      improvements in patient safety and effectiveness of care.





6





Total
      1H 2007 sales were only
      slightly lower than in 1H 2006.  International sales increased 14% and
      domestic sales decreased 5%.  International sales were 30% of total
      sales in 1H 2007, up from 26% in 1H 2006.  1H 2007 trade shipments
      from UTMD’s Ireland facility were up 20% in US Dollar terms and 11% in EURO
      terms compared to 1H 2006.


The
      following table provides
      the actual sales dollar amounts by general product category for total sales
      and
      the subset of international sales:




Global
      revenues by product category:


2Q
                2007
            
            
            2Q
                2006
            
            
            1H
                2007
            
            
            1H
                2006Obstetrics
            
            $
            2,044
            
            
            $
            2,359
            
            
            $
            4,304
            
            
            $
            4,769Gynecology/
                Electrosurgery/ Urology
            
            
            1,563
            
            
            
            1,565
            
            
            
            3,125
            
            
            
            2,994Neonatal
            
            
            1,748
            
            
            
            1,715
            
            
            
            3,491
            
            
            
            3,484Blood
                Pressure Monitoring and Accessories*
            
            
            1,856
            
            
            
            1,654
            
            
            
            3,409
            
            
            
            3,149Total:
            
            $
            7,211
            
            
            $
            7,293
            
            
            $
            14,329
            
            
            $
            14,396*includes
                molded components sold to OEM
                customers.







International
      revenues by product category:


2Q
                2007
            
            
            2Q
                2006
            
            
            1H
                2007
            
            
            1H
                2006Obstetrics
            
            $
            175
            
            
            $
            259
            
            
            $
            467
            
            
            $
            461Gynecology/
                Electrosurgery/ Urology
            
            
            545
            
            
            
            552
            
            
            
            1,002
            
            
            
            951Neonatal
            
            
            142
            
            
            
            120
            
            
            
            325
            
            
            
            289Blood
                Pressure Monitoring and Accessories*
            
            
            1,374
            
            
            
            1,130
            
            
            
            2,520
            
            
            
            2,095Total:
            
            $
            2,236
            
            
            $
            2,061
            
            
            $
            4,314
            
            
            $
            3,799*includes
                molded components sold to OEM
                customers.







For
      the rest of 2007, UTMD’s
      sales depend on its continued ability to retain medical staff involvement in
      purchasing decisions for UTMD’s “physician-preference” products used in U.S.
      hospitals where administrators are increasingly making the purchase decisions,
      continued expansion in clinical acceptance of its newer specialty products,
      release of new products after FDA concurrence with premarketing submissions
      and
      continued development of UTMD’s international distribution
      channels.





c)  Gross
      Profit


UTMD’s
      average gross profit
      margin (GPM), gross profits as a percentage of sales, was 55.5% and 55.4% in
      2Q
      and 1H 2007, respectively, compared to 55.9% and 56.2% in 2Q and 1H 2006,
      respectively.  UTMD’s prices for its products remained generally
      consistent with the prior year, but in 1H 2007 the sales mix was more heavily
      weighted toward lower margin products sold internationally.  The
      Company is also experiencing inflationary pressures in its manufacturing costs
      associated both with labor and with raw materials.  Since nearly all
      of UTMD’s products are made of petroleum-based compounds, the worldwide
      substantial increase in the cost of oil has a significant impact on raw
      materials costs.  In addition, the higher cost of oil has direct
      impact on transportation cost, both those included in manufacturing overhead
      for
      shipping and receiving products and raw materials, and those in operating
      expenses associated with sales and marketing travel expenses.  UTMD
      continues to retain facilities and other manufacturing capabilities in excess
      of
      its needs.  As a result, it projects that the dilution of fixed
      overhead costs that will occur with any increased sales during the remainder
      of
      2007 will help mitigate a continuing expected increase in incremental direct
      material and labor costs together with increased competitive pressure on
      prices.  The Company currently projects an overall 2007 GPM about
      three-quarters of one percent lower than in 2006.


OEM
      sales are
      sales of UTMD components that are marketed by other companies as part of their
      product offerings.  UTMD utilizes OEM sales as a means to help
      maximize utilization of its assets and capabilities established to satisfy
      its
      direct sales business.  As a general rule, prices for OEM sales
      expressed as a multiple of direct variable manufacturing expenses are lower
      than
      for direct sales because, in the OEM and international channels, UTMD’s business
      partners incur significant expenses of sales and marketing.  Because
      of UTMD’s small size and period-to-period fluctuations in OEM business activity,
      nonvariable manufacturing overhead expenses cannot be meaningfully allocated
      between direct and OEM sales.  Therefore, UTMD does not report GPM by
      sales channels.








7





d)  Operating
      Profit


Operating Profit, or income from operations, is the profit remaining after
      subtracting operating expenses from gross profits.  Operating expenses
      include sales and marketing (S&M), research and development (R&D) and
      general and administrative (G&A) expenses.  Combined operating
      expenses in 2Q 2007 were $194 lower than in 2Q 2006, and $323 lower in 1H 2007
      than in 1H 2006.  Please see the table below.  Operating
      expenses decreased in 2007 in large part because UTMD wrote off $130 in
      intellectual property in 2Q 2006 as a one time charge, and did not have such
      a
      write-off in 2Q 2007.  The 2Q 2006 write-off was recouped it in 3Q
      2006.  Operating expenses were also lower as a result of lower
      litigation costs as part of G&A expenses, and lower sales and marketing
      expenses when selling through international distributors.  In
      addition, option compensation expense included in G&A expenses was $7 lower
      in 2Q 2007 and $32 lower in 1H 2007 than in the same 2006
      periods.  Operating expenses were 17.9% of sales in 2Q 2007 compared
      to 20.3% in 2Q 2006, and 17.7% of sales in 1H 2007 compared to 19.9% in 1H
      2006.  For the remainder of 2007, UTMD expects to continue to hold
      operating expenses as a percent of sales for R&D and G&A consistent with
      the 1H2007, but increase S&M.  The year end result as a percent of
      sales, excluding consideration for litigation expenses which are less
      predictable, is projected to be about the same for the year as
      2006.  The year 2007 operating profit margin, therefore, is expected
      to be lower by about the same percent as the 2007 gross profit
      margin.


Because
      UTMD sells
      internationally through third party distributors, its S&M expenses are
      predominantly for U.S. business activity where it sells directly to clinical
      users.  S&M expenses in 2Q 2007 were 7.5% of sales compared to
      8.5% of sales in 2Q 2006.  S&M expenses in 1H 2007 were 7.2% of
      sales compared to 8.4% of sales in 1H 2006.  During the remainder of
      2007, UTMD intends to increase domestic S&M expenses as a percentage of
      sales, yielding a year-end percent of sales about the same is in
      2006.


R&D
      expenses in 2Q 2007
      were 1.5% of sales compared to 2.9% of sales in 2Q 2006, and 1.4% of 1H 2007
      sales compared to 2.0% of sales in 1H 2006.  2Q 2006 R&D expenses
      included a $130 write-off of intellectual property which was recouped in 3Q
      2006.  For the remainder of 2007, UTMD expects to continue R&D
      spending at a higher level as a percent of sales than in
      2006.**


G&A
      expenses in 2Q 2007
      were 8.9% of sales, the same as in 2Q 2006.  G&A expenses in 1H
      2007 were 9.1% of sales compared to 9.5% of 1H 2006 sales.  In
      addition to litigation costs, G&A expenses include the cost of outside
      auditors and corporate governance activities relating to the implementation
      of
      SEC rules resulting from the Sarbanes-Oxley Act of 2002 as well as stock-based
      compensation cost as required by SFAS 123R.  As noted above, 1H 2007
      stock-based compensation expense was $32 lower than in 1H 2006 and litigation
      expenses were also lower.  Excluding currently unknown litigation
      costs, UTMD plans to hold G&A expenses in 2007 at a level consistent with 1H
      2007 as a percent of sales.





2Q
                2007
            
            
            2Q
                2006
            
            
            1H
                2007
            
            
            1H
                2006S&M
                Expense
            
            $
            540
            
            
            $
            616
            
            
            $
            1,026
            
            
            $
            1,206R&D
                Expense
            
            
            109
            
            
            
            215
            
            
            
            205
            
            
            
            283G&A
                Expense
            
            
            639
            
            
            
            651
            
            
            
            1,303
            
            
            
            1,368Total
                Operating Expenses:
            
            $
            1,288
            
            
            $
            1,482
            
            
            $
            2,534
            
            
            $
            2,857





e)  Non-operating
      income


Non-operating
      income in 2Q 2007
      was $314 compared to $571 in 2Q 2006, and $615 in 1H 2007 compared to $985
      in 1H
      2006.  UTMD received interest, dividends and capital gains of $266 in
      2Q 2007 and $520 in 1H 2007, compared to $514 in 2Q 2006 and $886 in 1H 2006,
      from investing its cash balances.


In
      2Q and 1H 2007, UTMD paid
      $70 and $135, respectively, compared to $63 and $125 in 2Q and 1H 2006,
      respectively, for interest expense.  The interest expense resulted
      from UTMD’s Ireland facility borrowing 4,500 EURO (€) in December 2005 to allow
      the repatriation of profits generated by its Ireland operations between 1996
      and
      2005.  The average loan balance in 1H2007 was €3,502 compared to
€4,341 in 1H 2006. Even though the average loan balance in EURO terms was lower
      in 2007 compared to 2006, the combination of a weaker US Dollar and a slightly
      higher variable interest rate caused the interest expense stated in US Dollar
      terms to be higher.  The loan is being paid by the Ireland subsidiary
      from profits generated there.  It should take less than 5 more years
      to repay the loan.  The principal repayment schedule is set annually
      based on projected profits of the Ireland subsidiary.


Royalty
      income, which UTMD
      receives from licensing its technology to other companies, was approximately
      the
      same in both years.  Management currently projects total 2007
      non-operating income will be about $330 lower than in 2006, which means
      non-operating income for 2H 2007 is projected to be slightly higher than 2H
      2006.  The actual amount of 2007 non-operating income may be lower if
      UTMD utilizes its excess cash for an acquisition, unexpected litigation costs
      or
      more substantial share repurchases.


f)   Earnings
        Before Income Taxes
 Earnings
        before income taxes
        (EBT) in 2Q 2007 were $3,031 compared to $3,166 in 2Q 2006.  EBT in 1H
        2007 were $6,022 compared to $6,212 in 1H 2006.  EBT margins (EBT
        divided by sales) were both 42.0% of sales in 2Q and 1H 2007, compared to
        43.4%
        and 43.2% in 2Q and 1H 2006, respectively.





8




g)   Net
      Income and
      Earnings per Share


UTMD’s
      net income was $1,985 in
      2Q 2007 compared to $2,059 in 2Q 2006, and $3,929 in 1H 2007 compared to $4,094
      in 1H 2006.  Net profit margins (NPM), which are net income (after
      tax) expressed as a percentage of sales, were 27.5% in 2Q 2007 compared to
      28.2%
      in 2Q 2006, and 27.4% in 1H 2007 compared to 28.4% in 1H 2006.  The
      income tax provision rates in 2Q and 1H 2007 were 34.5% and 34.8% of EBT,
      respectively, compared to 35.0% and 34.1% in 2Q and 1H 2006,
      respectively.  The increased tax rate resulted primarily from IRS
      discontinuance of the extraterritorial income exclusion in 2007.  UTMD
      expects its consolidated income tax rate for 2007 will be about one-half
      percentage point higher than in 2006, which was 34.2% for the
      year.


UTMD’s
      net income divided by
      weighted average outstanding shares for the applicable reporting period, diluted
      for unexercised employee and director options, provides earnings per share
      (EPS):




2Q
                2007
            
            
            2Q
                2006
            
            
            1H
                2007
            
            
            1H
                2006Earnings
                Per Share (EPS)
            
            $
            .497
            
            
            $
            .509
            
            
            $
            .981
            
            
            $
            1.010Shares
                (000), Diluted
            
            
            3,995
            
            
            
            4,043
            
            
            
            4,004
            
            
            
            4,056





Diluted
      2Q 2007 Earnings per
      Share (EPS) were 2% lower than in 2Q 2006. Diluted 1H 2007 EPS were 3% lower
      than in 1H 2006.  The Company expects this trend to continue for the
      remainder of 2007.  UTMD repurchased 23,819 shares in 2Q 2007 and
      40,719 shares in 1H 2007.   Exercises of employee options in 2Q
      2007 added 1,436 shares and 21,159 shares in 1H 2007 (net of 221 and 6,418
      shares swapped or traded in 2Q and 1H, respectively, by individuals in payment
      of the exercise price of the options).  Options outstanding at June
      30, 2007 were about 223,100 shares at an average exercise price of $21.49 per
      share.


Increases
      and decreases in
      UTMD’s stock price impact EPS as a result of the dilution calculation for
      unexercised options with exercise prices below the average stock market value
      during each period.  The dilution calculation added 60,000 and 66,000
      shares to actual weighted average shares outstanding in 2Q and 1H 2007
      respectively, compared to 96,000 and 106,000 in 2Q and 1H 2006.  The
      decrease in dilution is primarily due to fewer unexercised options
      outstanding.  Actual outstanding common shares as of the end of 2Q
      2007 were 3,924,000 compared to 3,929,600 at the end of 2Q 2006.





h)  Return
      on
      Equity


Return
      on equity (ROE) is the
      portion of net income retained by UTMD (after payment of dividends) to
      internally finance its growth, divided by the average accumulated shareholder
      equity for the applicable time period.  Annualized ROE (after payment
      of dividends) for 1H 2007 was 12% compared to 16% for 1H 2006.  The
      lower ROE in 1H 2007 was due mainly to higher average equity to date in
      2007.  Share repurchases have a beneficial impact on ROE as long as
      the Company sustains net profit performance, because shareholder equity is
      reduced by the cost of the shares repurchased.  ROE in 2007 as a whole
      is expected to be lower than 2006 as a result of substantially higher dividends
      to shareholders, higher average shareholders’ equity and net profits which may
      be 4-5% lower than in the previous year.  A lower ROE in 2007 will not
      affect UTMD’s ability to internally finance its revenue growth.





Liquidity
      and Capital Resources


i)   Cash
      flows


Net
      cash provided by operating
      activities, including adjustments for depreciation and other non-cash operating
      expenses, along with changes in working capital and the tax benefit attributable
      to exercise and subsequent sale of employee and director stock options, totaled
      $2,988 in 1H 2007 compared to $5,920 in 1H 2006.  A $2,121 smaller tax
      benefit from exercise of employee and outside director stock options in 1H
      2007
      compared to 1H 2006 was the most significant difference in the two periods,
      followed by a $599 smaller increase in accrued interest and other
      receivables.





9





The
      Company’s use of cash for
      investing activities was primarily as a result of purchases of short-term
      investments, in an effort to maximize returns on excess cash balances while
      maintaining safety and liquidity.  Capital expenditures for property
      and equipment were $152 in 1H 2007 compared to $210 in 1H 2006.  This
      rate of investing in new property and equipment is required to keep facilities,
      equipment and tooling in good working condition.


In
      1H 2007, UTMD received $125
      and issued 21,159 shares of stock upon the exercise of employee stock
      options.  Option exercises in 1H 2007 were at an average price of
      $12.44 per share.  Employees exercised a total of 27,577 option shares
      in 1H 2007, with 6,418 shares immediately being retired as a result of the
      individuals trading the shares in payment of the exercise price of the
      options.  For comparison, the Company received $444 from issuing
      124,886 shares of stock on the exercise of employee stock options in 1H 2006,
      net of 145,399 shares retired upon employees trading those shares in payment
      of
      the stock option exercise price and related tax withholding.  UTMD
      used $2,488 in cash during 1H 2006 to meet tax withholding requirements on
      options exercised.  The Company repurchased 40,719 shares of its stock
      in the open market at a cost of $1,240 during 1H 2007, an average cost of $31.20
      per share including commissions and fees.  For comparison, UTMD
      repurchased 51,632 shares of stock in the open market at a cost of $1,590 during
      1H 2006.


UTMD
      Ltd. (Ireland subsidiary)
      made payments of $452 on its note payable during 1H 2007, compared to $403
      in 2Q
      2006.  UTMD paid $1,697 in cash dividends in 1H 2007 compared to
      $1,368 in 1H 2006, a 24% increase.


Management
      believes that future
      income from operations and effective management of working capital will provide
      the liquidity needed to finance growth plans.  Planned capital
      expenditures during the remainder of 2007 are expected to be less than $300
      to
      keep facilities, equipment and tooling in good working order.  In
      addition, UTMD may use cash in 2007 for selective infusions of technological,
      marketing or product manufacturing rights to broaden the Company's product
      offerings; for continued share repurchases when the price of the stock is
      undervalued; and if available for a reasonable price, acquisitions that may
      strategically fit UTMD’s business and are accretive to
      performance.  The revolving line of credit will continue to be
      available for liquidity when the timing of acquisitions or repurchases of stock
      require a large amount of cash in a short period of time not otherwise available
      from existing cash and investment balances.





j)   Assets
      and
      Liabilities


June
      30, 2007 total assets were
      $672 higher than at December 31, 2006.  Current assets increased $684,
      primarily from a $378 increase in accounts and other receivables, including
      a
      $454 increase in trade accounts receivable, net of allowance for doubtful
      accounts.  Although inventories have increased $194 since December 31,
      2006, the Company expects 2007-ending inventory balances to be about the same
      as
      2006-ending balances.  Other current assets increased
      $79.  Cash and investment balances increased despite paying $1,697 in
      dividends, $1,240 to repurchase shares and $452 in repayments of the note
      payable in Ireland.


Working
      capital was $25,840 at
      June 30, 2007, a $810 increase from 2006 year-end.  Working capital
      continues in excess of UTMD’s normal operating needs.  Representing
      the most significant part of current liabilities, accrued liabilities decreased
      since December 31, 2006 by $83 after payment in February 2007 of 2006 annual
      management bonuses.  Accrued liabilities decreased $922 since March
      31, 2007 as a result of the timing of estimated income tax
      payments.  As a result of the working capital changes, UTMD’s current
      ratio increased to 8.9 on June 30, 2007 from 8.4 at year-end 2006, and 8.2
      on
      June 30, 2006.


Net
      property and equipment
      decreased $14 in 1H 2007 after additions of $152 and an increase in the
      dollar-denominated value of Ireland P&E, offset by depreciation of
      $277.  U.S. dollar-denominated assets in Ireland increased about $48
      (after depreciation) or 1.1% during 1H 2007.  Goodwill resulting from
      prior acquisitions remained the same. Net intangible assets excluding goodwill
      increased $2 as a result of amortization of intellectual property of $24,
      additions to intangibles of $10 and the impact of exchange rate
      changes.  At June 30, 2007, net intangible assets including goodwill
      were 17% of total assets, the same as at year-end 2006.


UTMD’s
      long term liabilities
      are comprised of the Ireland note payable ($4,041 on June 30, 2007) and deferred
      revenue and income taxes ($314 on June 30, 2007).  As of December 31,
      2006, those long term liabilities were $4,383 and $308,
      respectively.  As of June 30, 2007, UTMD’s total debt ratio (total
      liabilities/ total assets) decreased to 17% from 18% on December 31,
      2006.  In comparison, UTMD’s total debt ratio on June 30, 2006 was
      20%.





k)   Management's
      Outlook.


As
      outlined in its December 31, 2006
      10-K report, UTMD’s plan for 2007 is to


1)  retain
      the significant
      U.S. market shares of key products, and continue growth of newer
      products;


2)  add
      proprietary products
      helpful to clinicians through internal new product development;


3)  continue
        to
        disproportionately increase international sales;
 4)  make effective adjustments to intracompany manufacturing
        operations to minimize consolidated manufacturing costs;
 5)  continue
        outstanding
        overall financial operating performance;
 6)  look
        for new acquisitions
        to augment sales growth;  and
 7)  utilize
        current cash
        balances in shareholders’ best long-term interest.


10




In
      1H 2007, UTMD failed to meet its
      first objective with respect to its domestic market share of Intran® Plus, the
      market-leading transducer-tipped intrauterine pressure catheter (IUPC) used
      in
      L&D for close surveillance of active management of difficult
      labor.  Intran sales in 1H 2007 were down $430 compared to 1H
      2006.  UTMD believes this is the result of the success of competitors
      in convincing hospital administrators that competing IUPC devices convey close
      to the same expected clinical outcomes at a lower out-of-pocket price, and
      the
      diminished role of physicians in purchase decisions of medical devices used
      in
      hospital L&D units.  For the remainder of 2007, UTMD will increase
      S&M efforts to help convey the significant difference in patient safety and
      effective outcomes when using Intran, thereby providing the least total cost
      of
      care alternative when the risk of complications and unnecessary device
      utilization are included in the purchase decision.  As a further
      consideration looking forward, UTMD’s GPO contract with Healthtrust Purchasing
      Group, representing Columbia/HCA hospitals among others, for its L&D and
      NICU devices expires on August 31, 2007.  HPG has decided to sole
      source its L&D devices with a competitor, which UTMD believes is a violation
      of its code of ethics to provide choice when it comes to “clinician-preference”
products.  HPG member purchases in 2006 were about $100 per
      month.  UTMD believes it can retain a significant portion of its prior
      HPG member hospital business since hospital members understand that medical
      devices which convey a significant improvement in patient safety, effectiveness
      and cost do not need a GPO contract.  UTMD believes that its devices
      generally convey all three.


Although
      domestic 1H 2007
      sales of other devices are close to the beginning of year plan, and
      international sales are exceeding plan, UTMD currently expects lower overall
      sales and profit performance than it had described in the SEC Form 10-K after
      the end of 2006.


For
      the other beginning of year
      objectives, UTMD believes it is on generally on track after the first six months
      of 2007.





l)    Accounting
      Policy Changes.


The
      Company adopted FIN 48, Accounting
      for Uncertainty in Income Taxes during 1H 2007.  Please see Note 3,
      above.








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





UTMD has manufacturing operations, including related assets, in Ireland
      denominated in the EURO, and sells products under agreements denominated in
      various Western European currencies.  The EURO and other currencies
      are subject to exchange rate fluctuations that are beyond the control of
      UTMD.  The exchange rate was 0.7433 EURO per USD as of June 30, 2007,
      and 0.7870 EURO per USD as of June 30, 2006.  UTMD manages its foreign
      currency risk without separate hedging transactions by converting currencies
      to
      USD as transactions occur.








**Item
      4. Controls and Procedures**





The
      company’s management, under the supervision and with the participation of the
      Chief Executive Officer and the Principal Financial Officer, evaluated the
      effectiveness of the company’s disclosure controls and procedures (as defined in
      Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of
      June
      30, 2007. Based on this evaluation, the Chief Executive Officer and Principal
      Financial Officer concluded that, as of June 30, 2007, the company’s disclosure
      controls and procedures were effective.


There
      were no changes in the company’s internal controls over financial reporting that
      occurred during the quarter ended June 30, 2007, that have materially affected,
      or are reasonably likely to materially affect, the company’s internal controls
      over financial reporting.





11





PART
      II -
      OTHER INFORMATION





**Item
      1A. Risk Factors**





In
      addition to the other
      information set forth in this report, investors should carefully consider the
      factors discussed in Part I, “Item 1A. Risk Factors” in UTMD’s Annual Report on
      Form 10-K for the year ended December 31, 2006, which could materially affect
      its business, financial condition or future results.  The risks described
      in the Annual Report on Form 10-K are not the only risks facing the
      Company.  Additional risks and uncertainties not currently known to UTMD or
      currently deemed to be immaterial also may materially adversely affect the
      Company’s business, financial condition and/or operating results.








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





The
      following table details purchases by UTMD of its own securities during 2Q
      2007.





**ISSUER
      PURCHASES OF EQUITY SECURITIES**





Period
            
            Total
                Number
              of
                Shares
              Purchased
                (1)
            
            Average
              Price
                Paid
              per
                Share
            
            Total
                Number of Shares Purchased as Part of Publicly Announced Plans
                or
              Programs
                (1)
            
            Maximum
                Number (or Approximate Dollar Value) of Shares that May be Purchased
                Under
                the Plans or
              Programs
                (1)4/01/07
                - 4/30/07
            
            1,899
            
            $  32.52
            
            1,8995/01/07
                - 5/31/07
            
            14,400
            
            30.39
            
            14,4006/01/07
                - 6/30/07
            
            7,520
            
            30.27
            
            7,520Total
            
            23,819
            
            $ 30.50
            
            23,819





(1)    In
      2Q 2007 UTMD repurchased the above shares pursuant to a continued open market
      repurchase program initially announced in August 1992.  Since 1993
      through 2Q 2007, the Company has repurchased 6.4 million shares at an average
      cost of $11.78 per share including broker commissions and fees in open market
      transactions.  In addition, the Company conducted tender offer
      transactions in which it purchased an additional 2.8 million shares at an
      average cost of $9.76 per share including fees and administrative
      costs.  In total, UTMD has repurchased 9.1 million of its shares at an
      average price of $11.16 per share since 1993.  To complete the picture
      relating to current shares outstanding, since 1993 the Company’s employees and
      directors have exercised and purchased 1.6 million option shares at an average
      price of $8.95 per share.  All options were awarded at the market
      value of the stock on the date of the award.





The
      frequency of UTMD’s open
      market share repurchases depends on the availability of sellers and the price
      of
      the stock.  The board of directors has not established an expiration
      date or a maximum dollar or share limit for UTMD’s continuing and long term
      consistent pattern of open market share repurchases.





The
      purpose of UTMD’s ongoing
      share repurchases is to maximize the value of the Company for its continuing
      shareholders, and maximize its return on shareholder equity by employing excess
      cash generated by effectively managing its business.  UTMD does not
      intend to repurchase shares that would result in terminating its NASDAQ Global
      Market listing.











12





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





On
      May 11,
      2007 at the annual meeting, shareholders of the Company approved the following
      matter submitted to them for consideration:


Elected
      Barbara A. Payne as a director of the Company;


Barbara
      A. Payne: For 3,435,971








**Item
      6.  Exhibits**





Exhibit
                #
            
            SEC
                Reference #
            
            Title
                of Document1
            
            31
            
            Certification
                of CEO pursuant to Rule 13a-14(a) as adopted pursuant to Section
                302 of
                the Sarbanes-Oxley Act of 20022
            
            31
            
            Certification
                of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted
                pursuant to Section 302 of the Sarbanes-Oxley Act of
                20023
            
            32
            
            Certification
                of CEO pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of
                the Sarbanes-Oxley Act of 20024
            
            32
            
            Certification
                of Principal Financial Officer pursuant to 18 U.S.C. §1350, as Adopted
                Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002








SIGNATURES





Pursuant
      to the requirements of the
      Securities Exchanges Act of 1934, the registrant has duly caused this report
      to
      be signed on its behalf by the undersigned thereunto duly
      authorized.








UTAH
                MEDICAL PRODUCTS, INC.REGISTRANTDate: 8/7/07
            By:
            /s/
                Kevin L. CornwellKevin
                L. CornwellCEODate: 8/7/07
            By:
            /s/ Paul O. RichinsPaul
                O. RichinsPrincipal
                Financial Officer



























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