----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

|   |
|--------|

**FORM      10-QSB**

**(Mark      One)**

**[X]QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF **

**THE      SECURITIES EXCHANGE ACT OF 1934**

**OR**

**[       ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF **

**THE      SECURITIES EXCHANGE ACT OF 1934**

**Commission      File No.: 000-07539**

**WINDSORTECH,      INC.**

| **Delaware**(State                or other jurisdiction ofincorporation                or organization)** ** | **13-2599131**(I.R.S.                EmployerIdentification                No.) |
|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|

**70      Lake Drive, Hightstown, NJ 08520**

**(609)      426-4666**

**Check      whether the issuer (1) filed all reports required to be filed by Section 13      or      15(d) of the Exchange Act during the past 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. **

| Class                of Common Equity       |   | Number                of Shares |
|---------------------------------------------|--------|---------------------------------|
| Common                Stock, par value $.01 |   | 28,578,340                      |

----

| **WINDSORTECH,                  INC.**                               |
|----------------------------------------------------------------------|
|                                                                 |
| TABLE                  OF CONTENTS                                   |
|                                                                 |   |   |
| Item                                                                 | Description | Page |
|                                                                 |   |   |
| **PART                  I - FINANCIAL                  INFORMATION** |   |
|                                                                 |   |   |
| 1.                                                                   | Financial                  Statements *(all                  unaudited)* |   |
|                                                                 | Condensed                  Consolidated Balance Sheets - June                  30, 2005 and December 31, 2004 | 1 |
|                                                                 | Condensed                  Consolidated Statements of Operations - Three                  and Six Months Ended June 30, 2005 and 2004 | 2 |
|                                                                 | Condensed                  Consolidated Statement of Stockholders’ Equity - Six                  Months Ended June 30, 2005 | 3 |
|                                                                 | Condensed                  Consolidated Statements of Cash Flows - Six                  Months Ended June 30, 2005 and 2004 | 4 |
|                                                                 | Notes                  to Condensed Consolidated Financial Statements | 5 |
| 2.                                                                   | Management’s                  Discussion and Analysis of Financial Condition and                  Results of Operations | 10 |
| 3.                                                                   | Controls                  and Procedures | 18 |
|                                                                 |   |   |
| **PART                  II - OTHER                  INFORMATION**    |   |
|                                                                 |   |   |
| 1.                                                                   | Legal                  Proceedings | 19 |
| 2.                                                                   | Unregistered                  Sales of Equity Securities and Use of                  Proceeds | 19 |
| 3.                                                                   | Defaults                  Upon Senior Securities | 19 |
| 4.                                                                   | Submission                  of Matters to a Vote of Security                  Holders | 19 |
| 5.                                                                   | Other                  Information | 19 |
| 6.                                                                   | Exhibits | 19 |
|                                                                 |   |   |
| SIGNATURES                                                           | 20 |
|                                                                 |   |
| EXHIBITS                                                             | 21 |

----

**PART      I**       **FINANCIAL      INFORMATION**

**WINDSORTECH,      INC.**

----

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

|                                                                                                |         |  **June                  30,** |                           | December                  31,  |   |
|-----------------------------------------------------------------------------------------------------|--------------|-------------------------------------|--------------------------------|-------------------------------------|--------|
|                                                                                                |         | **2005**                            |       | 2004                                |   |
| **Assets**                                                                                          |         |
| **Current                  Assets**                                                                 |         |                                |                           |                                |   |
| Cash                  and cash equivalents                                                          |         | **$**                               | **719,666**                    |                                | $      | 844,939 |   |
| Accounts                  receivable, net of reserve of $11,330 in 2005 and $50,000 in 2004         |         |                                | **5,858,931**                  |                                |   | 3,612,530 |   |
| Accounts                  receivable - related party                                                |         |                                | **276,714**                    |                                |   | 119,046 |   |
| Inventories                                                                                         |         |                                | **3,370,825**                  |                                |   | 2,721,505 |   |
| Prepaid                  expenses, income taxes and other assets                                    |         |                                | **207,128**                    |                                |   | 165,741 |   |
| Deferred                  income taxes                                                              |    |                                | **67,511**                     |                           |   | 67,511 |   |
| **Total                  Current Assets**                                                           |         |                                | **10,500,775**                 |                                |   | 7,531,272 |   |
| **Property                  and Equipment, Net**                                                    |         |                                | **656,188**                    |                                |   | 552,560 |   |
| **Goodwill**                                                                                        |         |                                | **2,066,963**                  |                                |   | 1,980,443 |   |
| **Intangibles,                  Net**                                                               |         |                                | **3,030,568**                  |                                |   | 3,188,896 |   |
| **Deferred                  Income Taxes**                                                          |         |                                | **688,234**                    |                                |   | 127,799 |   |
| **Other                  Assets**                                                                   |         |                                | **112,468**                    |                           |   | 89,843 |   |
|                                                                                                |         |                                |                           |                                |   |   |   |
|                                                                                                |    | **$**                               | **17,055,196**                 |                           | $      | 13,470,813 |   |
|                                                                                                |
| **Liabilities                  And Stockholders’ Equity**                                     |
| **Current                  Liabilities**                                                            |         |                                |                           |                                |   |   |   |
| Current                  maturities of notes payable                                                |         | **$**                               | -                              |                                | $      | 603,376 |   |
| Revolving                  lines of credit                                                          |         |                                | **2,071,500**                  |                                |   | 1,155,500 |   |
| Accounts                  payable                                                                   |         |                                | **2,902,894**                  |                                |   | 1,590,928 |   |
| Accrued                  expenses                                                                   |         |                                | **275,077**                    |                                |   | 265,391 |   |
| Deferred                  revenue                                                                   |         |                                | **650,368**                    |                                |   | 346,031 |   |
| Accrued                  payroll and other liabilities                                              |         |                                | **201,822**                    |                                |   | 210,205 |   |
| **Total                  Current Liabilities**                                                      |         |                                | **6,101,661**                  |                                |   | 4,171,431 |   |
|                                                                                                |         |                                |                           |                                |   |   |   |
| **Notes                  Payable**                                                                  |    |                                | -                              |                           |   | 255,000 |   |
| **Total                  Liabilities**                                                              |    |                                | **6,101,661**                  |                           |   | 4,426,431 |   |
|                                                                                                |         |                                |                           |                                |   |   |   |
| **Stockholders’                  Equity**                                                     |         |                                |                           |                                |   |   |   |
| Preferred                  shares: Authorized 5,000,000 shares in 2005                              |         |                                |                           |                                |   |   |   |
| and                  2004, $0.01 par value, none issued                                             |         |                                | -                              |                                |   | - |   |
| Common                  shares: authorized 55,000,000 shares in 2005 and 2004,                      |         |                                |                           |                                |   |   |   |
| $0.01                  par value; 28,578,340 shares issued and outstanding in                  2005 |         |                                |                           |                                |   |   |   |
| and                  25,550,007 shares issued and outstanding in 2004                               |         |                                | **285,783**                    |                                |   | 255,500 |   |
| Additional                  paid-in capital                                                         |         |                                | **12,001,548**                 |                                |   | 9,421,356 |   |
| Retained                  earnings (deficit)                                                        |    |                                | **(1,333,796**                 | **) **                         |   | (632,474 | ) |
| **Total                  Stockholders’ Equity**                                               |         |                                | **10,953,535**                 |                                |   | 9,044,382 |   |
|                                                                                                |         |                                |                           |                                |   |   |   |
|                                                                                                |         | **$**                               | **17,055,196**                 |                                | $      | 13,470,813 |   |

----

**WINDSORTECH,      INC.**

----

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**For      The Three and Six Months Ended June 30, 2005 and 2004**

|                                                                                            |                     | **Three                Months Ended****June                30,** |               | **Six                Months Ended****June                30,** |   |
|-------------------------------------------------------------------------------------------------|--------------------------|------------------------------------------------------------------|--------------------|----------------------------------------------------------------|--------|
|                                                                                            |                     | **2005**                                                         |     | 2004                                                           |   | **2005** |    | 2004 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |
| **Revenue**                                                                                     |                     | **$**                                                            | **8,947,425**      |                                                           | $      | 4,860,474 |   | **$** | **16,264,115** |   | $ | 7,542,331 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Cost                Of Sales**                                                                |      |                                                             | **6,848,993**      |                                                                |   | 3,358,814 |  |   | **12,757,658** |  |   | 5,270,285 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Gross                Profit**                                                                 |                     |                                                             | **2,098,432**      |                                                           |   | 1,501,660 |   |   | **3,506,457** |   |   | 2,272,046 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Selling,                General And Administrative Expenses**                                 |                     |                                                             | **2,216,354**      |                                                           |   | 1,519,920 |   |   | **4,384,071** |   |   | 2,157,139 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Depreciation                And Amortization**                                                |                     |                                                             | **156,073**        |                                                           |   | 85,103 |   |   | **300,943** |   |   | 110,212 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Interest                Expense, net**                                                        |                          |                                                             | **3,744**          |                                                                |   | 17,873 |  |   | **27,300** |  |   | 34,240 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Income                (Loss) Before Provision (Benefit) For Income                Taxes**     |                     |                                                             | **(277,739**       | **)**                                                          |   | (121,236 | ) |   | **(1,205,857** | **)** |   | (29,545 | ) |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Provision                (Benefit) For Income Taxes**                                         |                          |                                                             | **(182,695**       | **) **                                                    |   | (180,649 | ) |   | **(504,535** | **)** |   | (172,396 | ) |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Net                Income (Loss)**                                                            |                          | **$**                                                            | **(95,044**        | **) **                                                    | $      | 59,413 |  | **$** | **(701,322** | **)** | $ | 142,851 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Net                Income (Loss) Per Common Share - Basic**                                   |                     | $                                                                | **0.00**           |                                                           | $      | 0.00 |   | $ | (**0.03** | **)** | $ | 0.01 |   |
| **Net                Income (Loss) Per Common Share - Diluted**                                 |                          | $                                                                | **0.00**           |                                                                | $      | 0.00 |  | $ | (**0.03** | **)** | $ | 0.01 |   |
|                                                                                            |                     |                                                             |               |                                                           |   |   |   |   |   |   |   |   |   |
| **Weighted                Average Number Of Common Shares Outstanding                -Basic**   |                     |                                                             | **28,578,340**     |                                                           |   | 19,422,326 |   |   | **27,672,696** |   |   | 17,945,540 |   |
| **Weighted                Average Number Of Common Shares Outstanding                -Diluted** |           |                                                             | **28,578,340**     |                                                           |   | 21,750,373 |   |   | **27,672,696** |   |   | 20,600,835 |   |

----

**WINDSORTECH,        INC.**

----

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY **

**For      The Six Months Ended June 30, 2005**

|                                           |   |                            |       | **Additional** |   | **Retained** |         | **Total**               |       |
|------------------------------------------------|--------|---------------------------------|------------|----------------|--------|--------------|--------------|-------------------------|------------|
|                                           |   | **Common                Stock** |       | **Paid-in**    |   | **Earnings** |         | **Stockholders’** |       |
|                                           |   | **Number**                      |       | **Amount**     |   | **Capital**  |    | **(Deficit)**           |       | **Equity** |   |
|                                           |   |                            |       |           |   |         |         |                    |       |   |   |
| **Balance                - December 31, 2004** |   |                            | 25,550,007 |           | $      | 255,500      |         | $                       | 9,421,356  |   | $ | (632,474 | ) | $ | 9,044,382 |   |
|                                           |   |                            |       |           |   |         |         |                    |       |   |   |   |   |   |   |   |
|  **Warrants                Exercised**    |   |                            | 1,233,333  |           |   | 12,333       |         |                    | 1,337,666  |   |   | - |   |   | 1,349,999 |   |
|                                           |   |                            |       |           |   |         |         |                    |       |   |   |   |   |   |   |   |
| **Options                Exercised**           |   |                            | 1,795,000  |           |   | 17,950       |         |                    | 1,229,860  |   |   | - |   |   | 1,247,810 |   |
|                                           |   |                            |       |           |   |         |         |                    |       |   |   |   |   |   |   |   |
| **Stock                Option Compensation**   |   |                            | -          |           |   | -            |         |                    | 12,666     |   |   | - |   |   | 12,666 |   |
|                                           |   |                            |       |           |   |         |         |                    |       |   |   |   |   |   |   |   |
| **Net                Loss**                    |   |                            | -          |           |   | -            |         |                    | -          |   |   | (701,322 | ) |   | (701,322 | ) |
|                                           |   |                            |       |           |   |         |         |                    |       |   |   |   |   |   |   |   |
| **Balance                - June 30, 2005**     |   |                            | 28,578,340 |           | $      | 285,783      |         | $                       | 12,001,548 |   | $ | (1,333,796 | ) | $ | 10,953,535 |   |

----

**WINDSORTECH,      INC.**

----

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**For      The Six Months Ended June 30, 2005 and 2004**

|                                                                                               |   | **2005** |     | 2004   |   |
|----------------------------------------------------------------------------------------------------|--------|----------|--------------------|--------|--------|
|                                                                                               |   |     |               |   |   |
| **Cash                Flows From Operating Activities**                                            |   |     |               |   |   |
| Net                Income (Loss)                                                                   |   | **$**    | **(701,322**       | **)**  | $      | 142,851 |   |
| Adjustments                to reconcile net income (loss) to net cash used in operatingactivities: |   |     |               |   |   |   |   |
| Depreciation                and amortization                                                       |   |     | **300,943**        |   |   | 110,212 |   |
| Stock                option compensation expense                                                   |   |     | **12,666**         |   |   | 2,000 |   |
| Deferred                tax benefit                                                                |   |     | **(560,435**       | **)**  |   | (180,647 | ) |
| Changes                in assets and liabilities:                                                  |   |     |               |   |   |   |   |
| (Increase)                in accounts receivable                                                   |   |     | **(2,404,069**     | **)**  |   | (27,492 | ) |
| (Increase)                in inventories                                                           |   |     | **(649,320**       | **)**  |   | (1,230,713 | ) |
| (Increase)                in prepaid expenses and other assets                                     |   |     | **(17,079**        | **)**  |   | (25,948 | ) |
| Increase                in accounts payable and accrued expenses                                   |   |     | **1,612,108**      |   |   | 1,212,898 |   |
| **Net                Cash Provided by (Used In) Operating Activities**                             |   |     | **(2,406,508**     | **)**  |   | 3,161 |   |
|                                                                                               |   |     |               |   |   |   |   |
| **Cash                Used In Investing Activities**                                               |   |     |               |   |   |   |   |
| Payments                for Qualtech acquisition, net of cash acquired                             |   |     | **(86,520**        | **)**  |   | (3,004,719 | ) |
| Payments                for property and equipment                                                 |   |     | **(241,263**       | **)**  |   | (52,927 | ) |
| **Net                Cash Used In Investing Activities**                                           |   |     | **(327,783**       | **)**  |   | (3,057,646 | ) |
|                                                                                               |   |     |               |   |   |   |   |
| **Cash                Flows From Financing Activities**                                            |   |     |               |   |   |   |   |
| Net                proceeds from the exercise of options and warrants                              |   |     | **2,597,809**      |   |   | - |   |
| Net                proceeds from the sale of common stock and warrants                             |   |     | -                  |   |   | 3,300,000 |   |
| Other                financing fees                                                                |   |     | **(48,125**        | **)**  |   | - |   |
| Net                amounts paid on notes payable                                                   |   |     | **(856,666**       | **)**  |   | (7,192 | ) |
| Net                amounts borrowed on line of credit                                              |   |     | **916,000**        |   |   | - |   |
| Payments                on capital lease obligations                                               |   |     | -                  |   |   | (5,164 | ) |
| **Net                Cash Provided By Financing Activities**                                       |   |     | **2,609,018**      |   |   | 3,287,644 |   |
|                                                                                               |   |     |               |   |   |   |   |
| **Net                Increase (Decrease) In Cash And Cash Equivalents**                            |   |     | **(125,273**       | **)**  |   | 233,159 |   |
|                                                                                               |   |     |               |   |   |   |   |
| **Cash                And Cash Equivalents - Beginning Of Period**                                 |   |     | **844,939**        |   |   | 270,155 |   |
| **Cash                And Cash Equivalents - End of Period**                                       |   | **$**    | **719,666**        |   | $      | 503,314 |   |
|                                                                                               |   |     |               |   |   |   |   |

----

----

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS**

**(Unaudited)**

| **1.** | **BASIS                    OF PRESENTATION** |
|--------|----------------------------------------------|

| **2.** | **SUMMARY                OF SIGNIFICANT ACCOUNTING                POLICIES** |
|--------|------------------------------------------------------------------------------|

**Business      Organization**

|   | **A.** | **Data                Security & Compliance** |
|--------|--------|---------------------------------------------------|

----

|   | **B.** | **Data                Center Hardware** |
|--------|--------|-----------------------------------------|

|   | **C.** | **Data                Center Maintenance** |
|--------|--------|--------------------------------------------|

**Estimates**

**Earnings      (Loss) Per Share**

|                          | Three                Months Ended June 30, | Six                Months Ended June 30, |
|-------------------------------|--------------------------------------------|------------------------------------------|
|                          | 2005                                       | 2004                                     | 2005 | 2004 |
| Basic                         | 28,578,340                                 | 19,422,326                               | 27,672,696 | 17,945,540 |
| Stock                options  | -                                          | 1,756,939                                | - | 1,976,271 |
| Stock                warrants | -                                          | 571,108                                  | - | 679,024 |
| Diluted                       | 28,578,340                                 | 21,750,373                               | 27,672,696 | 20,600,835 |
|                          |                                       |                                     |   |   |

----

**Stock-Based      Compensation**

*Accounting      for Stock Issued to Employees*
*Accounting      for Stock-Based Compensation*

**:**

|                                                                                                                                                                                                            |   | Three                  Months Ended June 30, |     | Six                  Months Ended June 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------|--------------------------------------------|--------|
|                                                                                                                                                                                                            |   | 2005                                         |     | 2004                                       |   | 2005 |   | 2004 |   |
|                                                                                                                                                                                                            |   |                                         |     |                                       |   |   |   |   |   |
| Net                  income (loss), as reported                                                                                                                                                                 |   | $                                            | (95,044  | )                                          | $      | 59,413 |   | $ | (701,322 | ) | $ | 142,851 |   |
| Add:                  Stock-based employee compensation expense included in reported                  net income                  (loss), net of related tax effects                                            |   |                                         | 3,863    |                                       |   | 2,000 |   |   | 7,726 |   |   | 2,000 |   |
| Deduct:                  Total stock-based employee compensation expense determined under                  fair                  value based method for all awards, net of related tax                  effects |   |                                         | (61,932  | )                                          |   | (1,683,243 | ) |   | (6,900,090 | ) |   | (2,735,214 | ) |
| Pro                  forma net loss                                                                                                                                                                             |   | $                                            | (153,113 | )                                          | $      | (1,621,830 | ) |   | (7,593,686 | ) |   | (2,590,363 | ) |
| Earnings                  (loss) per share:                                                                                                                                                                     |   |                                         |     |                                       |   |   |   |   |   |   |   |   |   |
| Basic                  -                  as                  reported                                                                                                                                          |   | $                                            | (0.00    | )                                          | $      | (0.00 | ) | $ | (0.03 | ) | $ | 0.01 |   |
| Diluted                  - as reported                                                                                                                                                                          |   | $                                            | (0.00    | )                                          | $      | (0.00 | ) | $ | (0.03 | ) | $ | 0.01 |   |
| Basic                  - Pro forma                                                                                                                                                                              |   | $                                            | (0.01    | )                                          | $      | (0.08 | ) | $ | (0.27 | ) | $ | (0.14 | ) |
| Diluted                  - Pro forma                                                                                                                                                                            |   | $                                            | (0.01    | )                                          | $      | (0.08 | ) | $ | (0.27 | ) | $ | (0.14 | ) |
|                                                                                                                                                                                                            |   |                                         |     |                                       |   |   |   |   |   |   |   |   |   |

----

|                                    | 2005                   | 2004                   |
|-----------------------------------------|------------------------|------------------------|
|                                    |                   |                   |
| Risk-free                interest rates | 4.0%                   | 3.7%                   |
| Expected                option lives    | 5                years | 5                years |
| Expected                volatilities    | 92.23%                 | 100%                   |
| Expected                dividend yields | 0%                     | 0%                     |

**Impact      of Recently Issued Accounting Standards**

*Share-Based      Payment.*

| **3.** | **INVENTORIES** |
|--------|-----------------|

|                                                 |   | 2005   |      | 2004   |   |
|------------------------------------------------------|--------|--------|-----------|--------|--------|
| Finished                goods                        |   | $      | 2,680,440 |   | $      | 2,546,733 |   |
| Inventory                in transit                  |   |   | 705,385   |   |   | 189,772 |   |
| Allowance                for excess and obsolescence |   |   | (15,000   | )      |   | (15,000 | ) |
|                                                 |   | $      | 3,370,825 |   | $      | 2,721,505 |   |
|                                                 |   |   |      |   |   |   |   |

| **4.** | **FINANCING** |
|--------|---------------|

| **5.** | **ACQUISITIONS** |
|--------|------------------|

----

*Goodwill      and Other Intangible Assets*

|                                                     | **Three                Months Ended****June                30,** | **Six                Months Ended****June                30,** |
|----------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------|
|                                                     | 2004                                              |                                                           |   | 2004    |
|                                                     |                                                             |                                                           |   |   |
| **Revenue**                                              | $                8,127,980                                       |                                                           |   | $                16,184,538 |
|                                                     |                                                             |                                                           |   |   |
| **Net                Income**                            | $                63,739                                          |                                                           |   | $                342,714 |
|                                                     |                                                             |                                                           |   |   |
| **Net                Income Per Common Share - Basic**   | $0.00                                                            |                                                           |   | $0.01 |
|                                                     |                                                             |                                                           |   |   |
| **Net                Income Per Common Share - Diluted** | $0.00                                                            |                                                           |   | $0.01 |

| **6.** | **SEGMENT                  INFORMATION** |
|--------|------------------------------------------|

----

|                                                                                        |   | **Three                Months Ended****June                30,** |          | **Six                Months Ended****June                30,** |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------------|----------------------------------------------------------------|--------|
|                                                                                        |   | **2005**                                                         |          | 2004                                                           |   | **2005** |   | 2004 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |
| **Revenues**                                                                                |   |                                                             |          |                                                           |   |   |   |   |   |
| ** **Data                Security and Compliance                                       |   | **$**                                                            | **3,129,209** |                                                           | $      | 3,318,586 |   | **$** | **5,427,905** |   | $ | 6,000,443 |   |
| ** **Data                Center Hardware                                               |   |                                                             | **5,304,304** |                                                           |   | 1,686,914 |   |   | **9,849,284** |   |   | 1,686,914 |   |
| ** **Data                Center Maintenance                                            |   |                                                             | **811,568**   |                                                           |   | 225,854 |   |   | **1,547,841** |   |   | 225,854 |   |
| Intersegment                Elimination                                                     |   |                                                             | **(297,656**  | **)**                                                          |   | (370,880 | ) |   | **(560,915** | **)** |   | (370,880 | ) |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
| **Consolidated                Total**                                                       |   | **$**                                                            | **8,947,425** |                                                           | $      | 4,860,474 |   | **$** | **16,264,115** |   | $ | 7,542,331 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
| **Income                (loss) before Provision (Benefit) for Income                Taxes** |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
| Data                Security and Compliance                                                 |   | **$**                                                            | **(841,332**  | **)**                                                          | $      | (388,152 | ) | **$** | **(1,974,193** | **)** | $ | (296,461 | ) |
| Data                Center Hardware                                                         |   |                                                             | **381,403**   |                                                           |   | 154,737 |   |   | **379,966** |   |   | 154,737 |   |
| Data                Center Maintenance                                                      |   |                                                             | **182,190**   |                                                           |   | 112,179 |   |   | **388,370** |   |   | 112,179 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
| **Consolidated                Total**                                                       |   | **$**                                                            | **(277,739**  | **)**                                                          | $      | (121,236 | ) | **$** | **(1,205,857** | **)** | $ | (29,545 | ) |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |

| **7.** | **EMPLOYMENT                  CONTRACTS** |
|--------|-------------------------------------------|

**ITEM      2.** **MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

|   | · | Our                growth strategies.                                                                                           |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|   | · | Anticipated                trends in our business and demographics.                                                             |
|   | · | Our                ability to successfully integrate the business operations of recently                acquired companies; and |
|   | · | Regulatory,                competitive or other economic influences.                                                       |

----

**RECENT      DEVELOPMENTS**

**RESULTS      OF OPERATIONS**

|                                                                                            | **Three                  Months Ended****June                  30,** | **Six                  Months Ended****June                  30,** |
|-------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|--------------------------------------------------------------------|
|                                                                                            | **2005    **                                     | 2004                                                | **2005   ** | 2004    |
|                                                                                            | **%  **                                                    | %                                                        | **% ** | % |
| **Revenue**                                                                                     | **100.0**                                                            | 100.0                                                              | **100.0** | 100.0 |
| **Cost                  Of Products and Services Sold**                                         | **76.5**                                                             | 69.1                                                               | **78.4** | 69.9 |
| **Gross                  Profit**                                                               | **23.5**                                                             | 30.9                                                               | **21.6** | 30.1 |
| **Selling,                  General And Administrative Expenses**                               | **24.8**                                                             | 31.3                                                               | **27.0** | 28.6 |
| **Depreciation                  And Amortization**                                              | **1.7**                                                              | 1.8                                                                | **1.8** | 1.5 |
| **Interest                  Expense, net**                                                      | **0.1**                                                              | 0.3                                                                | **0.2** | 0.4 |
| **Income                  (Loss) Before Provision (Benefit) For Income                  Taxes** | **(3.1)**                                                            | (2.5)                                                              | **(                  7.4)** | (0.4) |
| **Provision                  (Benefit) For Income Taxes**                                       | **(2.0)**                                                            | (3.7)                                                              | **(3.1)** | (2.3) |
| **Net                  Income (Loss)**                                                          | **(1.1)**                                                            | 1.2                                                                | **(                  4.3)** | 1.9 |

***Quarter      Ended June 30, 2005 Compared to Quarter Ended June,      2004***

----

|                         | Three                Months Ended | Three                Months Ended |
|------------------------------|-----------------------------------|-----------------------------------|
|                         | June                30, 2005      | June                30, 2004      |
|                         |                              |                              |
| Revenue                      |                              |                              |
| Products                     | $                8,066,592        | $                4,465,876        |
| Services                     | 880,833                           | 394,598                           |
| Total                Revenue | $                8,947,425        | $                4,860,474        |
|                         |                              |                              |

----

***Six      Months Ended June 30, 2005 Compared to Six Months Ended June 30,      2004***

|                         | Six                Months Ended | Six                Months Ended |
|------------------------------|---------------------------------|---------------------------------|
|                         | June                30, 2005    | June                30, 2004    |
|                         |                            |                            |
| Revenue                      |                            |                            |
| Products                     | $                14,623,515     | $                7,081,034      |
| Services                     | 1,640,600                       | 461,297                         |
| Total                Revenue | $16,264,115                     | $                7,542,331      |
|                         |                            |                            |

----

**BUSINESS      SEGMENTS**

**Data      Security & Compliance Segment **

|                                                                                        |   | **Three                Months Ended****June                30,** |          | **Six                Months Ended****June                30,** |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------------|----------------------------------------------------------------|--------|
|                                                                                        |   | **2005**                                                         |          | 2004                                                           |   | **2005** |   | 2004 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |
| **Revenue**                                                                                 |   | **$**                                                            | **3,129,209** |                                                           | $      | 3,318,586 |   | **$** | **5,427,905** |   | $ | 6,000,443 |   |
| **Gross                Profit**                                                             |   |                                                             | **315,578**   |                                                           |   | 809,647 |   |   | **489,486** |   |   | 1,580,034 |   |
| **Selling,                General And Administrative Expenses**                             |   |                                                             | **1,108,916** |                                                           |   | 1,151,977 |   |   | **2,365,683** |   |   | 1,789,196 |   |
| **Depreciation                And Amortization**                                            |   |                                                             | **44,250**    |                                                           |   | 28,275 |   |   | **79,137** |   |   | 53,384 |   |
| **Interest                Expense, net**                                                    |   |                                                             | **3,744**     |                                                           |   | 17,547 |   |   | **18,858** |   |   | 33,915 |   |
| **Income                (Loss) Before Provision (Benefit) For Income                Taxes** |   |                                                             | **(841,332**  | **)**                                                          |   | (388,152 | ) |   | **(1,974,193** | **)** | $ | (296,461 | ) |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
| **Segment                Assets**                                                           |   |                                                             | **7,104,584** |                                                           |   | 4,007,980 |   |   | **7,104,584** |   |   | 4,007,980 |   |
| **Goodwill**                                                                                |   |                                                             | **-**         |                                                           |   | - |   |   | **-** |   |   | - |   |
| **Expenditures                for Property and Equipment**                                  |   |                                                             | **120,429**   |                                                           |   | 24,181 |   |   | **193,697** |   |   | 34,832 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |

***Quarter      Ended June 30, 2005 Compared to Quarter Ended June,      2004***

----

***Six      Months Ended June 30, 2005 Compared to Six Months Ended June 30,      2004***

----

**Data      Center Hardware Segment**

|                                                                                        |   | **Three                Months Ended****June                30,** |          | **Six                Months Ended****June                30,** |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------------|----------------------------------------------------------------|--------|
|                                                                                        |   | **2005**                                                         |          | 2004                                                           |   | **2005** |   | 2004 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |
| **Revenue**                                                                                 |   | **$**                                                            | **5,304,304** |                                                           | $      | 1,686,914 |   | **$** | **9,849,284** |   | $ | 1,686,914 |   |
| **Gross                Profit**                                                             |   |                                                             | **1,191,633** |                                                           |   | 558,282 |   |   | **1,947,479** |   |   | 558,282 |   |
| **Selling,                General And Administrative Expenses**                             |   |                                                             | **713,517**   |                                                           |   | 355,197 |   |   | **1,367,488** |   |   | 355,197 |   |
| **Depreciation                And Amortization**                                            |   |                                                             | **96,712**    |                                                           |   | 48,024 |   |   | **191,584** |   |   | 48,024 |   |
| **Interest                Expense, net**                                                    |   |                                                             | **-**         |                                                           |   | 324 |   |   | **8,442** |   |   | 324 |   |
| **Income                (Loss) Before Provision (Benefit) For Income                Taxes** |   |                                                             | **381,403**   |                                                           |   | 154,737 |   |   | **379,966** |   |   | 154,737 |   |
|                                                                                        |   |                                                             |          |                                                           |   |   |   |   |   |   |   |   |   |
| **Segment                Assets**                                                           |   |                                                             | **9,001,893** |                                                           |   | 6,051,618 |   |   | **9,001,893** |   |   | 6,051,618 |   |
| **Goodwill**                                                                                |   |                                                             | **1,902,805** |                                                           |   | 2,024,146 |   |   | **1,902,805** |   |   | 2,024,146 |   |
| **Expenditures                for Property and Equipment**                                  |   |                                                             | **20,207**    |                                                           |   | 17,120 |   |   | **44,889** |   |   | 17,120 |   |

**Data      Center Maintenance Segment**

|                                                                                        |   | **Three                Months Ended****June                30,** |        | **Six                Months Ended****June                30,** |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-------------|----------------------------------------------------------------|--------|
|                                                                                        |   | **2005**                                                         |        | 2004                                                           |   | **2005** |   | 2004 |   |
|                                                                                        |   |                                                             |        |                                                           |   |   |   |   |   |
| **Revenue**                                                                                 |   | **$**                                                            | **811,568** |                                                           | $      | 225,854 |   | **$** | **1,547,841** |   | $ | 225,854 |   |
| **Gross                Profit**                                                             |   |                                                             | **591,221** |                                                           |   | 133,729 |   |   | **1,069,492** |   |   | 133,729 |   |
| **Selling,                General And Administrative Expenses**                             |   |                                                             | **713,518** |                                                           |   | 355,197 |   |   | **1,367,488** |   |   | 355,197 |   |
| **Depreciation                And Amortization**                                            |   |                                                             | **15,111**  |                                                           |   | 8,804 |   |   | **30,222** |   |   | 8,804 |   |
| **Interest                Expense, net**                                                    |   |                                                             | **-**       |                                                           |   | - |   |   | **-** |   |   | - |   |
| **Income                (Loss) Before Provision (Benefit) For Income                Taxes** |   |                                                             | **182,191** |                                                           |   | 112,179 |   |   | **388,370** |   |   | 112,179 |   |
|                                                                                        |   |                                                             |        |                                                           |   |   |   |   |   |   |   |   |   |
| **Segment                Assets**                                                           |   |                                                             | **948,719** |                                                           |   | 916,064 |   |   | **948,719** |   |   | 916,064 |   |
| **Goodwill**                                                                                |   |                                                             | **164,158** |                                                           |   | 174,626 |   |   | **164,158** |   |   | 174,626 |   |
| **Expenditures                for Property and Equipment**                                  |   |                                                             | **0**       |                                                           |   | 975 |   |   | **2,677** |   |   | 975 |   |

----

***Geographic      Areas***

**Liquidity      and Capital Resources**
*** ***

----

**Impact      of Recently Issued Accounting Standards**

*Share-Based      Payment.*

**ITEM      3**     **CONTROLS      AND PROCEDURES**

***Evaluation      of disclosure controls and procedures***

----

**Changes      in internal control over financial reporting **

**PART      II - OTHER INFORMATION**

**ITEM      1.**
**LEGAL      PROCEEDINGS**

**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**

| Exhibits |
|----------|
|     | See                List of Exhibits filed as part of this quarterly report on Form                10-QSB. |
|     |   |

----

**SIGNATURE**

|                                  | **WINDSORTECH,                INC.**(Registrant)  |
|---------------------------------------|--------------------------------------------------------|
| Dated:                August 11, 2005 | By:                                                    | /s/                Marc Sherman |
|                                  |                                                   | Marc                Sherman |
|                                  |                                                   | Chief                Executive Officer |
|                                  |                                                   |   |
| Dated:                August 11, 2005 | By:                                                    | /s/                Edward L. Cummings |
|                                  |                                                   | Edward                L. Cummings |
|                                  |                                                   | Vice                President, Chief Financial Officer |
|                                  |                                                   |   |

----

**LIST      OF EXHIBITS**

| Exhibit                Number | Description                                                                                                                                                                                                                                                                                                                 |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |                                                                                                                                                                                                                                                                                                                        |
| 2.1                      | Agreement                and plan of Merger by and among Windsortech, Inc., Qualtech International                Corporation and Qualtech Service Group, Inc. dated May 1,                2004.                                                                                                                       |
| 3.1                      | Certificate                of Amendment of Certificate of Incorporation of WindsorTech, Inc.                **                                                                                                                                                                                                         |
| 3.2                      | Amended                and Restated ByLaws of WindsorTech, Inc. (Incorporated herein reference                to                Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-QSB filed with                the Commission on August 19, 2002 (Commission file number                000-07539)).  |
| 3.3                      | Action                by Consent in Writing of a Majority of Stockholders dated May 19,                2004                concerning Amended and Restated By Laws.                                                                                                                                                    |
| 3.4                      | Action                by Consent in Writing of a Majority of Stockholders dated September                17,                2004 increasing the number of shares of the Corporation                                                                                                                                    |
| 4.1                      | Specimen                Common Stock Certificate of WindsorTech, Inc. (Incorporated herein                reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form                10-QSB filed with the Commission on August 19, 2002 (Commission file                number 000-07539)).           |
| 4.2                      | Form                of Stock Purchase Agreements with Barron Partners, L.P., Guerrilla                Capital, and Odin Partners et al. dated May 26, 2004.                                                                                                                                                            |
| 4.3                      | Form                of Registration Rights Agreements with Barron Partners, L.P., Guerrilla                Capital, and Odin Partners et al. dated May 26, 2004.                                                                                                                                                       |
| 4.4                      | Form                of Common Stock Purchase Warrant at $1.50 per share dated May 28,                2004.                                                                                                                                                                                                             |
| 4.5                      | Form                of Common Stock Purchase Warrant at $3.60 per share dated May 28,                2004                                                                                                                                                                                                              |
| 4.6                      | Form                of Registration Rights Agreement with Joel Owens and Jolene Owens                dated                May 1, 2004.                                                                                                                                                                                 |
| 10.1*                    | Employment                and Non-Compete Agreement - Edward L. Cummings **                                                                                                                                                                                                                                            |
| 10.2*                    | Employment                and Non-Compete Agreement - David A. Loppert **                                                                                                                                                                                                                                              |
| 10.3*                    | Employment                and Non-Compete Agreement - Carl C. Saracino **                                                                                                                                                                                                                                              |
| 10.4*                    | Employment                and Non-Compete Agreement - Michael P. Sheerr **                                                                                                                                                                                                                                             |
| 10.5*                    | Employment                and Non-Compete Agreement - Marc Sherman **                                                                                                                                                                                                                                                  |
| 10.6*                    | 2002                Flexible Stock Plan (Incorporated herein reference to Exhibit 10.6                to the                Registrant’s Quarterly Report on Form 10-QSB filed with the Commission on                April 16, 2002 (Commission file number 000-07539)).                                         |
|                          |                                                                                                                                                                                                                                                                                                                        |
|                          |                                                                                                                                                                                                                                                                                                                        |
| 10.7                     | Lease                Agreement (Incorporated herein reference to Exhibit 10.9 to the                Registrant’s Quarterly Report on Form 10-QSB filed with the Commission on                August 19, 2002 (Commission file number 000-07539)).                                                                |
|                          |                                                                                                                                                                                                                                                                                                                        |

----

|                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.8                                                                                                                                                     | Employment                and Non-Compete Agreement - Joel Owens                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9***                                                                                                                                                  | Employment                and Non-Compete Agreement - Seth A. Grossman                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.10**                                                                                                                                                  | Credit                Agreement by and among Windsortech, Inc., Qualtech International                Corporation, Qualtech Services Corporation and Fifth Third                Bank.                                                                                                                                                                                                                                                                                                                              |
| 16.1                                                                                                                                                     | Letter                from Milton Reece, CPA (“Reece”) concurring with the statements made by                the Registrant in the Current Report on Form 8-K reporting Reece’s                resignation as the Registrant’s principal accountant (incorporated herein                by reference to Exhibit 16 to the Registrant’s Current Report on Form 8-K                filed with the Commission on February 13, 2002 (Commission file number                000-07539)).  |
| 31.1***                                                                                                                                                  | Chief                Executive Officer Certification Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.2***                                                                                                                                                  | Chief                Financial Officer Certification Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.1***                                                                                                                                                  | Certification                of Chief Executive Officer and Chief Financial Officer Pursuant to                18                U.S.C. § 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002.                                                                                                                                                                                                                                                                               |
| *                                                                                                                                                             | Management                contract or compensatory plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **                                                                                                                                                            | Incorporated                herein by reference to the same numbered exhibit in the Registrant’s                Transition Report on Form 10-KSB filed with the Commission on April                1,                2002 (Commission file number 000-07539).                                                                                                                                                                                                                                                     |
| ***                                                                                                                                                           | Attached                hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                          |
| There                are no other documents required to be filed as an Exhibit as required                by                Item 601 of Regulation S-B.  |
|                                                                                                                                                          |

----