----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

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

**FORM      10-Q**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE      SECURITIES EXCHANGE ACT OF 1934**

**OR**

**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE      SECURITIES EXCHANGE ACT OF 1934**

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

**QSGI      INC.**

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

**400      Royal Palm Way, Palm Beach, FL  33480**

**(561)      835-9757**

**Indicate      by check mark whether      the registrant (1) filed all reports required to be filed by Section 13 or      15(d)      of the Securities Exchange Act of 1934 during the proceeding 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.**

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

**Large      accelerated      filer **

**Accelerated      filer**

**Non-accelerated      filer x**

**Indicate      by check mark whether      the registrant is a shell company (as defined in Rule 12b-2 of the Exchange      Act). **

**The      number of outstanding common shares, par value $.01, of the registrant as of      November 1, 2007 was 31,172,716.**

----

| **QSGI                INC.**                            |                                                                                                                                         |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    |                                                                                                                                         |
| TABLE                OF CONTENTS                        |                                                                                                                                         |
|                                                    |                                                                                                                                         |   |   |
| Item                                                    | Description                                                                                                                                  | Page |   |
|                                                    |                                                                                                                                         |   |   |
| **PART                I – FINANCIAL INFORMATION** |                                                                                                                                         |   |
|                                                    |                                                                                                                                         |   |   |
| 1.                                                      | Financial                Statements *(all unaudited)*                                                                                        |   |   |
|                                                    | Condensed                Consolidated Balance Sheets –September                30, 2007 and December 31, 2006                          | 1 |
|                                                    | Condensed                Consolidated Statements of Operations –Three                and Nine Months Ended September 30, 2007 and 2006 | 2 |
|                                                    | Condensed                Consolidated Statement of Stockholders’ Equity –Nine                Months Ended September 30, 2007     | 3 |
|                                                    | Condensed                Consolidated Statements of Cash Flows –Nine                Months Ended September 30, 2007 and 2006           | 4 |
|                                                    | Notes                to Condensed Consolidated Financial Statements                                                                          | 5 |
| 2.                                                      | Management’s                Discussion and Analysis of Financial Conditionand                Results of Operations                     | 10 |
| 3.                                                      | Quantitative                and Qualitative Disclosures About Market Risk                                                                    | 21 |
| 4.                                                      | Controls                and Procedures                                                                                                       | 21  |
|                                                    |                                                                                                                                         |   |   |
| **PART                II – OTHER INFORMATION**    |                                                                                                                                         |   |
|                                                    |                                                                                                                                         |   |   |
| 1.                                                      | Legal                Proceedings                                                                                                             | 22 |
| 1A.                                                     | Risk                Factors                                                                                                                  | 22 |
| 2.                                                      | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                   | 22 |
| 3.                                                      | Defaults                Upon Senior Securities                                                                                               | 22 |
| 4.                                                      | Submission                of Matters to a Vote of Security Holders                                                                           | 22 |
| 5.                                                      | Other                Information                                                                                                             | 22 |
| 6.                                                      | Exhibits                                                                                                                                     | 22 |
|                                                    |                                                                                                                                         |   |   |
| SIGNATURES                                              | 23                                                                                                                                           |
|                                                    |                                                                                                                                         |   |
| EXHIBITS                                                | 24                                                                                                                                           |

----

**PART      I             FINANCIAL      INFORMATION**

**QSGI        INC.**

----

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

|                                                                                                                                                                                  |   | **September                30,** |           |   | December                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------------|--------|-----------------------------|--------|
|                                                                                                                                                                                  |   | **2007**                         |           |   | 2006                        |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |
| **Assets**                                                                                                                                                                            |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |
| **Current                Assets**                                                                                                                                                     |   |                             |           |   |                        |   |
| Cash                and cash                equivalents                                                                                                                               |   | **$**                            | **661,488**    |   |                        | $      | 632,948 |   |
|  Accounts                receivable, net                of reserve of $381,282 in 2007 and $780,116 in 2006                                                                      |   | ** **                       | **4,239,986**  |   |                        |   | 8,012,421 |   |
| Inventories                                                                                                                                                                           |   | ** **                       | **7,377,065**  |   |                        |   | 4,982,710 |   |
|      Prepaid                expenses, income taxes and other assets                                                                                          |   | ** **                       | **168,057**    |   |                        |   | 183,069 |   |
| Deferred                income                taxes                                                                                                                                   |   | ** **                       | **598,661**    |   |                        |   | 598,661 |   |
| **Total                Current                Assets**                                                                                                                                |   | ** **                       | **13,045,257** |   |                        |   | 14,409,809 |   |
| **Property                and Equipment, Net**                                                                                                                                        |   | ** **                       | **286,072**    |   |                        |   | 410,241 |   |
| **Goodwill**                                                                                                                                                                          |   | ** **                       | **6,644,403**  |   |                        |   | 6,644,403 |   |
| **Intangibles,                Net**                                                                                                                                                   |   | ** **                       | **2,629,760**  |   |                        |   | 2,555,584 |   |
| **Other                Assets**                                                                                                                                                       |   | ** **                       | **445,509**    |   |                        |   | 158,784 |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |   |   |
|                                                                                                                                                                                  |   | **$**                            | **23,051,001** |   |                        | $      | 24,178,821 |   |
|                                                                                                                                                                                  |   |
| **Liabilities                And Stockholders’ Equity**                                                                                                                         |   |
| **Current                Liabilities**                                                                                                                                                |   |                             |           |   |                        |   |   |   |
|      Revolving                line of credit                                                                                                                 |   | **$**                            | **4,275,360**  |   |                        | $      | 3,915,825 |   |
| Accounts                payable                                                                                                                                                       |   | ** **                       | **1,165,287**  |   |                        |   | 1,382,336 |   |
| Accrued                expenses                                                                                                                                                       |   | ** **                       | **484,168**    |   |                        |   | 601,850 |   |
| Deferred                revenue                                                                                                                                                       |   | ** **                       | **482,717**    |   |                        |   | 517,439 |   |
| Accrued                payroll                                                                                                                                                        |   | ** **                       | **126,852**    |   |                        |   | 329,658 |   |
| Other                liabilities                                                                                                                                                      |   | ** **                       | **103,450**    |   |                        |   | 122,784 |   |
| **Total                Current                Liabilities**                                                                                                                           |   | ** **                       | **6,637,834**  |   |                        |   | 6,869,892 |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |   |   |
| **Long-Term                Deferred Revenue**                                                                                                                                         |   | ** **                       | **225,889**    |   |                        |   | 416,239 |   |
| **Deferred                Income Taxes**                                                                                                                                              |   | ** **                       | **294,561**    |   |                        |   | 451,625 |   |
| **Total                Liabilities**                                                                                                                                                  |   | ** **                       | **7,158,284**  |   |                        |   | 7,737,756 |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |   |   |
| **Redeemable                Convertible Preferred Stock**                                                                                                                             |   | ** **                       | **4,234,056**  |   |                        |   | 4,220,577 |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |   |   |
| **Stockholders’                Equity**                                                                                                                                         |   |                             |           |   |                        |   |   |   |
| Preferred                shares: authorized 5,000,000 shares in 2007                                                                                                                  |   |                             |           |   |                        |   |   |   |
| and                2006, $0.01 par value, none issued                                                                                                                                 |   |                             | –        |   |                        |   | – |   |
| Common                shares: authorized                95,000,000 shares in 2007 and 2006, $0.01 par value;                31,172,716 shares issued and outstanding in 2007 and 2006 |   | ** **                       | **311,727**    |   |                        |   | 311,727 |   |
| Additional                paid-in capital                                                                                                                                             |   | ** **                       | **14,195,732** |   |                        |   | 14,390,976 |   |
| Retained                earnings                (deficit)                                                                                                                             |   | ** **                       | **(2,848,798** | **)**  |                        |   | (2,482,215 | ) |
| **Total                Stockholders’                Equity**                                                                                                                    |   | ** **                       | **11,658,661** |   |                        |   | 12,220,488 |   |
|                                                                                                                                                                                  |   |                             |           |   |                        |   |   |   |
|                                                                                                                                                                                  |   | **$**                            | **23,051,001** |   |                        | $      | 24,178,821 |   |

----

**QSGI        INC.**

----

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**For      The Three and Nine Months Ended September 30, 2007 and      2006**

|                                                                                                  |   | **Three                Months Ended****September                30,** |           |   | **Nine                Months Ended****September                30,** |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|----------------|--------|----------------------------------------------------------------------|--------|
|                                                                                                  |   | **2007**                                                              |           |   | 2006                                                                 |   |   | **2007** |   |   | 2006 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |
| **Product                Revenue**                                                                    |   | **$**                                                                 | **6,753,288**  |   |                                                                 | $      | 7,964,854 |   |   | **$** | **22,659,971** |   |   | $ | 30,002,721 |   |
| **Service                Revenue**                                                                    |   | ** **                                                            | **2,003,599**  |   |                                                                 |   | 1,400,856 |   |   | ** ** | **5,156,272** |   |   |   | 3,838,453 |   |
| **Total                Revenue**                                                                      |   | ** **                                                            | **8,756,887**  |   |                                                                 |   | 9,365,710 |   |   | ** ** | **27,816,243** |   |   |   | 33,841,174 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Cost                Of Products Sold**                                                              |   | ** **                                                            | **6,018,499**  |   |                                                                 |   | 6,610,560 |   |   | ** ** | **18,731,156** |   |   |   | 25,067,620 |   |
| **Cost                Of Services Sold**                                                              |   | ** **                                                            | **654,474**    |   |                                                                 |   | 492,994 |   |   | ** ** | **1,830,475** |   |   |   | 1,282,739 |   |
| **Total                Cost Of Sales**                                                                |   | ** **                                                            | **6,672,973**  |   |                                                                 |   | 7,103,554 |   |   | ** ** | **20,561,631** |   |   |   | 26,350,359 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Gross                Profit**                                                                       |   | ** **                                                            | **2,083,914**  |   |                                                                 |   | 2,262,156 |   |   | ** ** | **7,254,612** |   |   |   | 7,490,815 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Selling,                General And Administrative Expenses**                                       |   | ** **                                                            | **1,904,476**  |   |                                                                 |   | 2,312,095 |   |   | ** ** | **6,897,779** |   |   |   | 7,203,007 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Depreciation                And Amortization**                                                      |   | ** **                                                            | **181,079**    |   |                                                                 |   | 174,752 |   |   | ** ** | **520,796** |   |   |   | 516,432 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                Expense, net**                                                              |   | ** **                                                            | **166,798**    |   |                                                                 |   | 56,481 |   |   | ** ** | **297,990** |   |   |   | 156,264 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                Before Benefit For Income Taxes**                                               |   | ** **                                                            | **(168,439**   | **)**  |                                                                 |   | (281,172 | ) |   | ** ** | **(461,953** | **)** |   |   | (384,888 | ) |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Benefit                For Income Taxes**                                                           |   | ** **                                                            | **(55,257**    | **)**  |                                                                 |   | (123,652 | ) |   | ** ** | **(133,370** | **)** |   |   | (101,199 | ) |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Loss**                                                                           |   | ** **                                                            | **(113,182**   | **)**  |                                                                 |   | (157,520 | ) |   | ** ** | **(328,583** | **)** |   |   | (283,689 | ) |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                Stock Dividends**                                                          |   | ** **                                                            | **65,031**     |   |                                                                 |   | 64,323 |   |   | ** ** | **192,970** |   |   |   | 191,359 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Accretion                To Redemption Value of Preferred Stock**                                   |   | ** **                                                            | **4,560**      |   |                                                                 |   | 4,295 |   |   | ** ** | **13,478** |   |   |   | 12,695 |   |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Loss Available to Common****Stockholders**                                       |   | **$**                                                                 | **(182,773**   | **)**  |                                                                 | $      | (226,138 | ) |   | **$** | **(535,031** | **)** |   | $ | (487,743 | ) |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Loss Per Common Share – Basic**                                            |   | **$**                                                                 | **(0.01**      | **)**  |                                                                 | $      | (0.01 | ) |   | **$** | **(0.02** | **)** |   | $ | (0.02 | ) |
| **Net                Loss Per Common Share – Diluted**                                          |   | **$**                                                                 | **(0.01**      | **)**  |                                                                 | $      | (0.01 | ) |   | **$** | **(0.02** | **)** |   | $ | (0.02 | ) |
|                                                                                                  |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Weighted                Average Number Of Common Shares Outstanding–Basic**                   |   | ** **                                                            | **31,172,716** |   |                                                                 |   | 31,172,716 |   |   | ** ** | **31,172,716** |   |   |   | 29,774,939 |   |
| **Weighted                Average Number Of Common Shares Outstanding                –Diluted** |   | ** **                                                            | **31,172,716** |   |                                                                 |   | 31,172,716 |   |   | ** ** | **31,172,716** |   |   |   | 29,774,939 |   |

----

**QSGI        INC.**

----

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY**

**For      The Nine Months Ended September 30, 2007**

|                                                                                                                                                                                     |                                                                            | **Additional**       | **Retained**                        | **Total**               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|----------------------|-------------------------------------|-------------------------|
|                                                                                                                                                                                     | **        Common                Stock** | **Paid-in**          | **Earnings**                        | **Stockholders’** |
|                                                                                                                                                                                     | **Number**                                                                      | **Amount**           | **    Capital** | **(Deficit)**           | **Equity** |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
| **Balance                (Deficit) - December 31, 2006**                                                                                                                                 | 31,172,716                                                                      | $  311,727 | $                14,390,976         | $(2,482,215)            | $    12,220,488 |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
| **Stock                Option Compensation**                                                                                                                                             | –                                                                         | –              | 11,204                              | –                 | 11,204 |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
|  **FIN                48 Adoption**                                                                                                                                                 | –                                                                         | –              | –                             | (38,000)                |  (38,000) |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
| **Preferred                Stock Dividends**                                                                                                                                             | –                                                                         | –              | (192,970)                           | –                 | (192,970) |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
| **Accretion                To Redemption Value                Of              ****Preferred                Stock** |  –                                                                   |  –        |  (13,478)                      |  –           |  (13,478) |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
| **Net                Loss**                                                                                                                                                              | –                                                                         | –              | –                             | (328,583)               | (328,583) |
|                                                                                                                                                                                     |                                                                            |                 |                                |                    |   |
| **Balance                (Deficit) – September 30, 2007**                                                                                                                          | 31,172,716                                                                      | $  311,727 | $                14,195,732         | $(2,848,798)            | $    11,658,661 |

----

**QSGI      INC.**

----

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**For      The Nine Months Ended September 30, 2007 and 2006**

|                                                                                                                                                  |   | **2007**   |           |   | 2006   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|----------------|--------|--------|--------|
|                                                                                                                                                  |   |       |           |   |   |   |
| **Cash                Flows From Operating Activities**                                                                                               |   |       |           |   |   |   |
| Net                Loss                                                                                                                               |   | **$**      | **(328,583**   | **)**  |   | $      | (283,689 | ) |
| Adjustments                to reconcile net                loss to net cash provided by (used in) operating                activities:                |   |       |           |   |   |   |   |   |
|                  Depreciation and amortization                                                                                                   |   | ** ** | **520,796**    |   |   |   | 516,432 |   |
|               Stock                option compensation expense                  |   | ** ** | **11,204**     |   |   |   | 13,229 |   |
|               Deferred                income taxes                              |   | ** ** | **(157,064**   | **)**  |   |   | (180,588 | ) |
|               Common                shares issued for services                  |   | ** ** | **–**    |   |   |   | 161,687 |   |
|               Provision                for doubtful accounts, net of recoveries |   | ** ** | **(240,650**   | **)**  |   |   | 556,483 |   |
| Changes                in assets and                liabilities:                                                                                      |   |       |           |   |   |   |   |   |
| Accounts                receivable                                                                                                                    |   | ** ** | **3,667,086**  |   |   |   | 655,216 |   |
| Inventories                                                                                                                                           |   | ** ** | **(2,394,355** | **)**  |   |   | (1,480,478 | ) |
| Prepaid                expenses and other                current assets                                                                               |   | ** ** | **(139,378**   | **)**  |   |   | (64,464 | ) |
| Accounts                payable and accrued                expenses                                                                                   |   | ** ** | **(819,943**   | **)**  |   |   | (682,086 | ) |
| **Net                Cash Provided by (Used In) Operating Activities**                                                                                |   | ** ** | **119,113**    |   |   |   | (788,258 | ) |
|                                                                                                                                                  |   |       |           |   |   |   |   |   |
| **Cash                Used In Investing Activities**                                                                                                  |   |       |           |   |   |   |   |   |
|      Purchases                of property and equipment, net                                                                 |   | ** ** | **(89,311**    | **)**  |   |   | (100,220 | ) |
| **Net                Cash Used In Investing Activities**                                                                                              |   | ** ** | **(89,311**    | **)**  |   |   | (100,220 | ) |
|                                                                                                                                                  |   |       |           |   |   |   |   |   |
| **Cash                Flows From Financing Activities**                                                                                               |   |       |           |   |   |   |   |   |
|      Proceeds                from the issuance of redeemable preferred stock                                                 |   |       | –        |   |   |   | 2,236,301 |   |
|      Proceeds                from the exercise of options and warrants                                                       |   |       | –        |   |   |   | 9,100 |   |
|      Stock                issuance costs                                                                                     |   |       | –        |   |   |   | (25,499 | ) |
|      Payments                for financing costs                                                                             |   | ** ** | **(167,827**   | **)**  |   |   | – |   |
|      Preferred                stock dividends                                                                                |   | ** ** | **(192,970**   | **)**  |   |   | (191,359 | ) |
|      Net                amounts (paid) borrowed under revolving lines of credit                                              |   | ** ** | **359,535**    |   |   |   | (710,000 | ) |
| **Net                Cash Provided By (Used In) Financing Activities**                                                                                |   | ** ** | **(1,262**     | **)**  |   |   | 1,318,543 |   |
|                                                                                                                                                  |   |       |           |   |   |   |   |   |
| **Net                Increase In Cash And Cash Equivalents**                                                                                          |   | ** ** | **28,540**     |   |   |   | 430,065 |   |
|                                                                                                                                                  |   |       |           |   |   |   |   |   |
| **Cash                And Cash Equivalents – Beginning Of Period**                                                                              |   | ** ** | **632,948**    |   |   |   | 153,794 |   |
| **Cash                And Cash Equivalents – End of Period**                                                                                    |   | **$**      | **661,488**    |   |   | $      | 583,859 |   |
|                                                                                                                                                  |   |       |           |   |   |   |   |   |

----

----

**NOTES      TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS**

**(Unaudited)**

| **1.** | **Basis                of Presentation** |
|--------|------------------------------------------|

| **2.  ** | **Summary                of Significant Accounting                Policies** |
|--------------------|------------------------------------------------------------------------------|

**Business      Organization**

**Segments**

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

|   | -                IT Asset auditing and life-cycle management to minimize IT expenses                while                maximizing return                on investment |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | -                Data erasure to Department of Defense standards for hard                drives |
|--------|-------------------------------------------------------------------------------------------------|

|   | -                Remarketing for IT assets with market value to enhance client                ROI |
|--------|---------------------------------------------------------------------------------------------------|

|   | -                Detailed on-line reporting of audit records, erasure and EPA disposal                certificates |
|--------|--------------------------------------------------------------------------------------------------------------------|

**B.   Data      Center Hardware**

**C.  Data      Center Maintenance**

**Estimates**

**Earnings      (Loss) Per Share**

----

|                                      | Three                Months Ended September 30, | Nine                Months Ended September 30, |
|-------------------------------------------|-------------------------------------------------|------------------------------------------------|
|                                      | 2007                                            | 2006                                           | 2007 | 2006 |
| Basic                                     | 31,172,716                                      | 31,172,716                                     | 31,172,716 | 29,774,939 |
| Stock                options              | –                                         | –                                        | – | – |
| Stock                warrants             | –                                         | –                                        | – | – |
| Redeemable                preferred stock | –                                         | –                                        | – | – |
| Diluted                                   | 31,172,716                                      | 31,172,716                                     | 31,172,716 | 29,774,939 |
|                                      |                                            |                                           |   |   |

**Stock-Based      Compensation**

*Share-Based      Payment.*

----

|                                       |   | Shares(in                thousands) |    |   | Weighted                AverageExercise                Price |   |    | Weighted                Average Remaining Contractual Term (years) |   |   | Aggregate                Intrinsic Value                (in thousands) |   |
|--------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------------------------------|--------|---------|--------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|
|                                       |   |                                |    |   |                                                         |   |    |                                                               |   |   |                                                                   |   |
| Balance,                December 31, 2006  |   |                                | 12,222  |   |                                                         | $      | 1.97    |                                                               |   |   | 7.2                                                                    |   |   | $ | 2,898 |   |
|      Granted      |   |                                | 40      |   |                                                         |   | 1.41    |                                                               |   |   |                                                                   |   |   |   |   |   |
|      Exercised    |   |                                | – |   |                                                         |   | – |                                                               |   |   |                                                                   |   |   |   |   |   |
|      Canceled     |   |                                | – |   |                                                         |   | – |                                                               |   |   |                                                                   |   |   |   |   |   |
|      Forfeited    |   |                                | (360    | )      |                                                         |   | 2.67    |                                                               |   |   |                                                                   |   |   |   |   |   |
|                                       |   |                                |    |   |                                                         |   |    |                                                               |   |   |                                                                   |   |   |   |   |   |
| Balance,                September 30, 2007 |   |                                | 11,902  |   |                                                         | $      | 1.95    |                                                               |   |   | 6.6                                                                    |   |   | $ | 1,508 |   |

|                                                            |   | Nine                Months EndedSeptember                30, |    |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------|---------|
|                                                            |   | 2007                                                         |    |   | 2006 |   |
| Total                intrinsic value of stock options exercised |   |                                                         | – |   |   | $ | 635,900 |   |
|                                                            |   |                                                         |    |   |   |   |   |   |

| **3.** | **Inventories** |
|--------|-----------------|

|                                                 | 2007                        |   | 2006                   |
|------------------------------------------------------|-----------------------------|--------|------------------------|
| Finished                goods                        | $  6,958,413      |   | $  4,810,843 |
| Inventory                in transit                  |    621,652   |   | 246,867                |
| Allowance                for excess and obsolescence |    (203,000) |   |   (75,000)   |
|                                                 | $  7,377,065      |   | $  4,982,710 |
|                                                 |                        |   |                   |

| **4.** | **Intangibles** |
|--------|-----------------|

----

**5.           Financing**

|                              |   | **Year                To Date** |     |
|-----------------------------------|--------|---------------------------------|----------|
|                              |   | **Net                Income**   |     |
| **Period                Ending**  |   | **(Loss)**                      |     |
|                              |   |                            |     |
| March                31, 2007     |   | $                               | (250,000 | ) |
| June                30, 2007      |   |                            | (428,000 | ) |
| September                30, 2007 |   |                            | (337,000 | ) |
| December                31, 2007  |   |                            | (49,000  | ) |
|                              |   |                            |     |   |
| March                31, 2008     |   |                            | 100,000  |   |
| June                30, 2008      |   |                            | 300,000  |   |
| September                30, 2008 |   |                            | 500,000  |   |
| December                31, 2008  |   |                            | 800,000  |   |
|                              |   |                            |     |   |
| March                31, 2009     |   |                            | 100,000  |   |
| June                30, 2009      |   |                            | 300,000  |   |
| September                30, 2009 |   |                            | 500,000  |   |
| December                31, 2009  |   |                            | 800,000  |   |

** **

----

**6.           TAXES**

**7.           SEGMENT      INFORMATION **

|                                                                                        |   | **Three                Months Ended****September                30,** |          |   | **Nine                Months Ended****September                30,** |   |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------------|--------|----------------------------------------------------------------------|--------|
|                                                                                        |   | **2007**                                                              |          |   | 2006                                                                 |   |   | **2007** |   |   | 2006 |   |
|                                                                                        |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |
| **Revenues**                                                                                |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |
| **     **Data                Security and Compliance               |   | **$**                                                                 | **6,217,220** |   |                                                                 | $      | 5,032,395 |   |   | **$** | **15,369,446** |   |   | $ | 15,304,361 |   |
| **     **Data                Center Hardware                       |   | ** **                                                            | **1,567,822** |   |                                                                 |   | 2,994,740 |   |   | ** ** | **8,680,399** |   |   |   | 15,474,106 |   |
| **     **Data                Center Maintenance                    |   | ** **                                                            | **1,677,058** |   |                                                                 |   | 1,348,975 |   |   | ** ** | **4,519,140** |   |   |   | 3,513,997 |   |
|      Intersegment                Elimination                       |   | ** **                                                            | **(705,213**  | **)**  |                                                                 |   | (10,400 | ) |   | ** ** | **(752,742** | **)** |   |   | (451,290 | ) |
|                                                                                        |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Consolidated                Total**                                                       |   | **$**                                                                 | **8,756,887** |   |                                                                 | $      | 9,365,710 |   |   | **$** | **27,816,243** |   |   | $ | 33,841,174 |   |
|                                                                                        |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                (loss) before Provision (Benefit) for Income                Taxes** |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Data                Security and Compliance                   |   | **$**                                                                 | **(223,014**  | **)**  |                                                                 | $      | (689,027 | ) |   | **$** | **(1,409,185** | **)** |   | $ | (2,117,845 | ) |
|      Data                Center Hardware                           |   | ** **                                                            | **(403,255**  | **)**  |                                                                 |   | 5,564 |   |   | ** ** | **(43,236** | **)** |   |   | 814,286 |   |
|      Data                Center Maintenance                        |   | ** **                                                            | **457,830**   |   |                                                                 |   | 402,291 |   |   | ** ** | **990,468** |   |   |   | 918,671 |   |
|                                                                                        |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Consolidated                Total**                                                       |   | **$**                                                                 | **(168,439**  | **)**  |                                                                 | $      | (281,172 | ) |   | **$** | **(461,953** | **)** |   | $ | (384,888 | ) |
|                                                                                        |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

----

**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. |
|--------|--------|--------------------------------------------------------------------|

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

----

**Results      of Operations**

|                                                            |   | **Three                Months Ended****September                30,** |      |   | **Nine                Months Ended****September                30,** |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|--------|----------------------------------------------------------------------|--------|
|                                                            |   | **2007**                                                              |      |   | 2006                                                                 |   |   | **2007** |   |   | 2006 |   |
|                                                            |   |                                                                  |      |   |                                                                 |   |   |   |   |   |   |   |
|                                                            |   | **%**                                                                 |      |   | %                                                                    |   |   | **%** |   |   | % |   |
| **Product                Revenue**                              |   | ** **                                                            | **77.1**  |   |                                                                 |   | 85.0 |   |   | ** ** | **81.5** |   |   |   | 88.7 |   |
| **Service                Revenue**                              |   | ** **                                                            | **22.9**  |   |                                                                 |   | 15.0 |   |   | ** ** | **18.5** |   |   |   | 11.3 |   |
| **Total                Revenue**                                |   | ** **                                                            | **100.0** |   |                                                                 |   | 100.0 |   |   | ** ** | **100.0** |   |   |   | 100.0 |   |
| **Cost                Of Products Sold**                        |   | ** **                                                            | **68.7**  |   |                                                                 |   | 70.5 |   |   | ** ** | **67.3** |   |   |   | 74.1 |   |
| **Cost                Of Services Sold**                        |   | ** **                                                            | **7.5**   |   |                                                                 |   | 5.3 |   |   | ** ** | **6.6** |   |   |   | 3.8 |   |
| **Cost                Of Products and Services Sold**           |   | ** **                                                            | **76.2**  |   |                                                                 |   | 75.8 |   |   | ** ** | **73.9** |   |   |   | 77.9 |   |
| **Gross                Profit**                                 |   | ** **                                                            | **23.8**  |   |                                                                 |   | 24.2 |   |   | ** ** | **26.1** |   |   |   | 22.1 |   |
| **Selling,                General And Administrative Expenses** |   | ** **                                                            | **21.7**  |   |                                                                 |   | 24.7 |   |   | ** ** | **24.8** |   |   |   | 21.2 |   |
| **Depreciation                And Amortization**                |   | ** **                                                            | **2.1**   |   |                                                                 |   | 1.9 |   |   | ** ** | **1.9** |   |   |   | 1.5 |   |
| **Interest                Expense, net**                        |   | ** **                                                            | **1.9**   |   |                                                                 |   | 0.6 |   |   | ** ** | **1.1** |   |   |   | 0.5 |   |
| **Loss                Before Benefit For Income Taxes**         |   | ** **                                                            | **(1.9**  | **)**  |                                                                 |   | (3.0 | ) |   | ** ** | **(1.7** | **)** |   |   | (1.1 | ) |
| **Benefit                For Income Taxes**                     |   | ** **                                                            | **(0.6**  | **)**  |                                                                 |   | (1.3 | ) |   | ** ** | **(0.5** | **)** |   |   | (0.3 | ) |
| **Net                Loss**                                     |   | ** **                                                            | **(1.3**  | **)**  |                                                                 |   | (1.7 | ) |   | ** ** | **(1.2** | **)** |   |   | (0.8 | ) |

***Quarter      Ended September 30, 2007 Compared to Quarter Ended September 30,      2006***

----

|                         |   | Three                Months Ended |      |   | Three                Months Ended |   |
|------------------------------|--------|-----------------------------------|-----------|--------|-----------------------------------|--------|
|                         |   | September                30, 2007 |      |   | September                30, 2006 |   |
|                         |   |                              |      |   |                              |   |
| Revenue                      |   |                              |      |   |                              |   |
|    Products   |   | $                                 | 6,753,288 |   |                              | $      | 7,964,854 |   |
|    Services   |   |                              | 2,003,599 |   |                              |   | 1,400,856 |   |
| Total                Revenue |   | $                                 | 8,756,887 |   |                              | $      | 9,365,710 |   |
|                         |   |                              |      |   |                              |   |   |   |

----

***Nine      Months Ended September 30, 2007 Compared to Nine Months Ended September 30,      2006***

----

|                         |   | Nine                Months Ended  |       |   | Nine                Months Ended  |   |
|------------------------------|--------|-----------------------------------|------------|--------|-----------------------------------|--------|
|                         |   | September                30, 2007 |       |   | September                30, 2006 |   |
|                         |   |                              |       |   |                              |   |
| Revenue                      |   |                              |       |   |                              |   |
|    Products   |   | $                                 | 22,659,971 |   |                              | $      | 30,002,721 |   |
|    Services   |   |                              | 5,156,272  |   |                              |   | 3,838,453 |   |
| Total                Revenue |   | $                                 | 27,816,243 |   |                              | $      | 33,841,174 |   |
|                         |   |                              |       |   |                              |   |   |   |

----

**Business      Segments**

**Data      Security & Compliance Segment**

|                                                            |   | **Three                Months Ended****September                30,** |           |   | **Nine                Months Ended****September                30,** |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------|----------------|--------|----------------------------------------------------------------------|--------|
|                                                            |   | **2007**                                                              |           |   | 2006                                                                 |   |   | **2007** |   |   | 2006 |   |
|                                                            |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |
| **Revenue**                                                     |   | **$**                                                                 | **6,217,220**  |   |                                                                 | $      | 5,032,395 |   |   | **$** | **15,369,446** |   |   | $ | 15,304,362 |   |
| **Gross                Profit**                                 |   | ** **                                                            | **912,557**    |   |                                                                 |   | 591,081 |   |   | ** ** | **2,421,804** |   |   |   | 2,031,607 |   |
| **Selling,                General And Administrative Expenses** |   | ** **                                                            | **880,521**    |   |                                                                 |   | 1,164,326 |   |   | ** ** | **3,329,191** |   |   |   | 3,820,010 |   |
| **Depreciation                And Amortization**                |   | ** **                                                            | **88,252**     |   |                                                                 |   | 59,253 |   |   | ** ** | **203,793** |   |   |   | 171,946 |   |
| **Loss                Before Benefit For Income Taxes**         |   | ** **                                                            | **(223,014**   | **)**  |                                                                 |   | (689,028 | ) |   | ** ** | **(1,409,185** | **)** |   |   | (2,117,846 | ) |
|                                                            |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                Assets**                               |   | ** **                                                            | **10,162,306** |   |                                                                 |   | 9,458,595 |   |   | ** ** | **10,162,306** |   |   |   | 9,458,595 |   |
| **Goodwill**                                                    |   |                                                                  | –        |   |                                                                 |   | – |   |   | ** ** | **–** |   |   |   | – |   |
| **Expenditures                for Property and Equipment**      |   | ** **                                                            | **3,662**      |   |                                                                 |   | 30,996 |   |   | ** ** | **76,104** |   |   |   | 85,568 |   |
|                                                            |   |                                                                  |           |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

***Quarter      Ended September 30, 2007 Compared to Quarter Ended September 30,      2006***

----

***Nine      Months Ended September 30, 2007 Compared to Nine Months Ended September 30,      2006***

**Data      Center Hardware Segment**

|                                                               |   | **Three                Months Ended****September                30,** |          |   | **Nine                Months Ended****September                30,** |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------------|--------|----------------------------------------------------------------------|--------|
|                                                               |   | **2007**                                                              |          |   | 2006                                                                 |   |   | **2007** |   |   | 2006 |   |
|                                                               |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |
| **Revenue**                                                        |   | **$**                                                                 | **1,567,822** |   |                                                                 | $      | 2,994,740 |   |   | **$** | **8,680,399** |   |   | $ | 15,474,106 |   |
| **Gross                Profit**                                    |   | ** **                                                            | **91,687**    |   |                                                                 |   | 760,469 |   |   | ** ** | **1,947,727** |   |   |   | 3,072,499 |   |
| **Selling,                General And Administrative Expenses**    |   | ** **                                                            | **416,929**   |   |                                                                 |   | 655,185 |   |   | ** ** | **1,719,167** |   |   |   | 1,962,125 |   |
| **Depreciation                And Amortization**                   |   | ** **                                                            | **78,013**    |   |                                                                 |   | 99,771 |   |   | ** ** | **271,811** |   |   |   | 297,460 |   |
| **Income                (Loss) Before Provision For Income Taxes** |   | ** **                                                            | **(403,255**  | **)**  |                                                                 |   | 5,564 |   |   | ** ** | **(43,236** | **)** |   |   | 814,286 |   |
|                                                               |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                Assets**                                  |   | ** **                                                            | **9,090,256** |   |                                                                 |   | 11,225,247 |   |   | ** ** | **9,090,256** |   |   |   | 11,225,247 |   |
| **Goodwill**                                                       |   | ** **                                                            | **5,154,782** |   |                                                                 |   | 6,116,707 |   |   | ** ** | **5,154,782** |   |   |   | 6,116,707 |   |
| **Expenditures                for Property and Equipment**         |   |                                                                  | –       |   |                                                                 |   | 4,157 |   |   | ** ** | **13,207** |   |   |   | 16,564 |   |

----

***Quarter      Ended September 30, 2007 Compared to Quarter Ended September 30,      2006***

***Nine      Months Ended September 30, 2007 Compared to Nine Months Ended September 30,      2006***

----

**Data      Center Maintenance Segment**

|                                                            |   | **Three                Months Ended****September                30,** |          |   | **Nine                Months Ended****September                30,** |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------------|--------|----------------------------------------------------------------------|--------|
|                                                            |   | **2007**                                                              |          |   | 2006                                                                 |   |   | **2007** |   |   | 2006 |   |
|                                                            |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |
| **Revenue**                                                     |   | **$**                                                                 | **1,677,058** |   |                                                                 | $      | 1,348,975 |   |   | **$** | **4,519,140** |   |   | $ | 3,513,997 |   |
| **Gross                Profit**                                 |   | ** **                                                            | **1,079,670** |   |                                                                 |   | 910,606 |   |   | ** ** | **2,885,081** |   |   |   | 2,386,709 |   |
| **Selling,                General And Administrative Expenses** |   | ** **                                                            | **607,026**   |   |                                                                 |   | 492,585 |   |   | ** ** | **1,849,421** |   |   |   | 1,420,872 |   |
| **Depreciation                And Amortization**                |   | ** **                                                            | **14,814**    |   |                                                                 |   | 15,729 |   |   | ** ** | **45,192** |   |   |   | 47,027 |   |
| **Income                Before Provision For Income Taxes**     |   | ** **                                                            | **457,830**   |   |                                                                 |   | 402,291 |   |   | ** ** | **990,468** |   |   |   | 918,671 |   |
|                                                            |   |                                                                  |          |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Segment                Assets**                               |   | ** **                                                            | **3,798,439** |   |                                                                 |   | 1,505,684 |   |   | ** ** | **3,798,439** |   |   |   | 1,505,684 |   |
| **Goodwill**                                                    |   | ** **                                                            | **1,489,621** |   |                                                                 |   | 527,696 |   |   | ** ** | **1,489,621** |   |   |   | 527,696 |   |
| **Expenditures                for Property and Equipment**      |   |                                                                  | –       |   |                                                                 |   | – |   |   |   | – |   |   |   | 6,137 |   |

***Quarter      Ended September 30, 2007 Compared to Quarter Ended September 30,      2006***

----

***Nine      Months Ended September 30, 2007 Compared to Nine Months Ended September 30,      2006***

***Geographic      Areas***

**Liquidity      and Capital Resources**

----

----

|                              |   | **Year                To Date** |     |
|-----------------------------------|--------|---------------------------------|----------|
|                              |   | **Net                Income**   |     |
| **Period                Ending**  |   | **(Loss)**                      |     |
|                              |   |                            |     |
| March                31, 2007     |   | $                               | (250,000 | ) |
| June                30, 2007      |   |                            | (428,000 | ) |
| September                30, 2007 |   |                            | (337,000 | ) |
| December                31, 2007  |   |                            | (49,000  | ) |
|                              |   |                            |     |   |
| March                31, 2008     |   |                            | 100,000  |   |
| June                30, 2008      |   |                            | 300,000  |   |
| September                30, 2008 |   |                            | 500,000  |   |
| December                31, 2008  |   |                            | 800,000  |   |
|                              |   |                            |     |   |
| March                31, 2009     |   |                            | 100,000  |   |
| June                30, 2009      |   |                            | 300,000  |   |
| September                30, 2009 |   |                            | 500,000  |   |
| December                31, 2009  |   |                            | 800,000  |   |

** **

----

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

The      Company does not engage in transactions in derivative      financial instruments or derivative commodity instruments.  As of      September 30, 2007, the Company’s financial instruments were not exposed to      significant market risk due to interest rate risk, foreign currency exchange      risk, commodity price risk or equity price risk.

**Item      4                                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      1A.    Risk      Factors**

**Item      2.    Unregistered sales of      equity securities and Use of Proceeds**

**Item      3.     Defaults Upon Senior      Securities**

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

| Name                of Director | For    | Against    | Withheld  |
|---------------------------------|--------|------------|-----------|
|                            |   |       |      |   |
| Seth                A. Grossman |   | 14,435,222 | 3,254,133 | – |
| R.                Keith Elliott |   | 15,884,548 | 1,804,807 | – |

----

**Item      5.    Other      Information**

**Item      6.    **
**Exhibits**

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

----

**SIGNATURE**

|                                                                                                                                                                       | **QSGI                Inc.**(Registrant)  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|
| Dated:                      November                14, 2007 | By:                                            | /s/                Marc Sherman |
|                                                                                                                                                                       |                                           | Marc                Sherman |
|                                                                                                                                                                       |                                           | Chairman                and Chief Executive Officer |
|                                                                                                                                                                       |                                           |   |
| Dated:                      November                14, 2007 | By:                                            | /s/                Edward L. Cummings |
|                                                                                                                                                                       |                                           | Edward                L. Cummings |
|                                                                                                                                                                       |                                           | Chief                Financial Officer and Treasurer |
|                                                                                                                                                                       |                                           |   |

----

----

**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.                                                                                                                                 |

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| Exhibit                Number                                                                                                                                                                                                                                                                 | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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-K.                                                                                                                                       |
|                                                                                                                                                                                                                                                                                          |

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