| DGT HOLDINGS CORP.                                     |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| NEW YORK                                                       | 13-1784308                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 100 PINE AIRE DRIVE, BAY SHORE, NY       | 11706      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

| 631-231-6400                                                                       |
|------------------------------------------------------------------------------------|
| (Registrant’s telephone number, including area code)                         |
|                                                                               |
|                                                                               |
| (Former name, former address and former fiscal year, if changed since last report) |

| Large accelerated filer [ ]                                             | Accelerated filer [ ]         |
|-------------------------------------------------------------------------|-------------------------------|
| Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [X] |

----

|      |                                                                                                           | Page No. |
|-----------|----------------------------------------------------------------------------------------------------------------|----------|
|      |                                                                                                           |     |   |
| PART I    | FINANCIAL INFORMATION                                                                                          |     |   |
|      | Item 1.  FINANCIAL STATEMENTS                                                                        | 3        |   |
|      | Statements of Operations for the Three and Six Months ended January 29, 2011 and January 30, 2010              | 3        |   |
|      | Balance Sheets as of January 29, 2011 and July 31, 2010                                                        | 4        |   |
|      | Statements of Cash Flows for the Six Months ended January 29, 2011 and January 30, 2010                        | 5        |   |
|      | Notes to Financial Statements                                                                                  | 6-12     |   |
|      | Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 13-18    |   |
|      | Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 18       |   |
|      | Item 4.  CONTROLS AND PROCEDURES                                                                     | 18-19    |   |
|      |                                                                                                           |     |   |
| PART II - | OTHER INFORMATION                                                                                              |     |   |
|      | Item 1.  LEGAL PROCEEDINGS                                                                           | 20       |   |
|      | Item 1A.  RISK FACTORS                                                                               | 20       |   |
|      | Item 6.  EXHIBITS                                                                                    | 20       |   |
|      | SIGNATURES                                                                                                     | 21       |   |
|      | EX-31.1 (EX-31.1):  Certification                                                                    |     |   |
|      | EX-31.2 (EX-31.2):  Certification                                                                    |     |   |
|      | EX-32.1 (EX-32.1):  Certification                                                                    |     |   |
|      | EX-32.2 (EX-32.2):  Certification                                                                    |     |   |

----

PART 

| Item 1. | FINANCIAL STATEMENTS |
|---------|----------------------|

DGT 

|                                                                                                                                                                                                   |   | Three Months Ended |        |   | Six Months Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|------------------|--------|
|                                                                                                                                                                                                   |   | January 29,2011    |        |   | January 30,2010  |   |   | January 29,2011 |   |   | January 30,2010 |   |
| SALES                                                                                                                                                                                                  |   | $                  | 24,838      |   |             | $      | 18,058 |   |   | $ | 40,396 |   |   | $ | 29,640 |   |
| COST OF SALES                                                                                                                                                                                          |   |               | 19,274      |   |             |   | 13,212 |   |   |   | 31,337 |   |   |   | 22,219 |   |
| GROSS MARGIN                                                                                                                                                                                           |   |               | 5,564       |   |             |   | 4,846 |   |   |   | 9,059 |   |   |   | 7,421 |   |
|                                                                                                                                                                                                   |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                                                                                                                                                                    |   |               | 2,752       |   |             |   | 2,347 |   |   |   | 4,987 |   |   |   | 4,575 |   |
| Research and development                                                                                                                                                                               |   |               | 615         |   |             |   | 532 |   |   |   | 1,083 |   |   |   | 975 |   |
| Total operating expenses                                                                                                                                                                               |   |               | 3,367       |   |             |   | 2,879 |   |   |   | 6,070 |   |   |   | 5,550 |   |
| OPERATING INCOME                                                                                                                                                                                       |   |               | 2,197       |   |             |   | 1,967 |   |   |   | 2,989 |   |   |   | 1,871 |   |
|                                                                                                                                                                                                   |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net of interest income of $32   and $52 for the three and six months ended   in FY 2011 and $7 and $11 for the three and   six months ended in FY 2010 |   |               | (56         | )      |             |   | (195 | ) |   |   | (137 | ) |   |   | (349 | ) |
| Other income (expense)                                                                                                                                                                                 |   |               | 31          |   |             |   | (22 | ) |   |   | 92 |   |   |   | (45 | ) |
| INCOME FROM CONTINUING OPERATIONS   BEFORE INCOME TAXES                                                                                                                                      |   |               |  2,172 |   |             |   |  1,750 |   |   |   |  2,944 |   |   |   |  1,477 |   |
| Income tax provision                                                                                                                                                                                   |   |               | 1,042       |   |             |   | 568 |   |   |   | 1,541 |   |   |   | 683 |   |
|  INCOME FROM CONTINUING OPERATIONS                                                                                                                                                                |   |               |  1,130 |   |             |   |  1,182 |   |   |   |  1,403 |   |   |   |  794 |   |
| Income (loss) from discontinued operations                                                                                                                                                             |   |               | -           |   |             |   | 19 |   |   |   | - |   |   |   | (3,095 | ) |
| NET INCOME (LOSS)                                                                                                                                                                                      |   | $                  | 1,130       |   |             | $      | 1,201 |   |   | $ | 1,403 |   |   | $ | (2,301 | ) |
|                                                                                                                                                                                                   |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER BASIC SHARE:                                                                                                                                                                     |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                                                                                                                                      |   | $                  | 0.43        |   |             | $      | 0.65 |   |   | $ | 0.63 |   |   | $ | 0.43 |   |
| Income (loss) from discontinued operations                                                                                                                                                             |   |               | -           |   |             |   | 0.01 |   |   |   | - |   |   |   | (1.70 | ) |
| Net income (loss)                                                                                                                                                                                      |   | $                  | 0.43        |   |             | $      | 0.66 |   |   | $ | 0.63 |   |   | $ | (1.27 | ) |
| Weighted average shares outstanding*                                                                                                                                                                   |   |               | 2,652,420   |   |             |   | 1,817,464 |   |   |   | 2,234,912 |   |   |   | 1,817,464 |   |
|                                                                                                                                                                                                   |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER DILUTED SHARE:                                                                                                                                                                   |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                                                                                                                                      |   | $                  | 0.43        |   |             | $      | 0.65 |   |   | $ | 0.63 |   |   | $ | 0.43 |   |
| Income (loss) from discontinued operations                                                                                                                                                             |   |               | -           |   |             |   | 0.01 |   |   |   | - |   |   |   | (1.70 | ) |
| Net income (loss)                                                                                                                                                                                      |   | $                  | 0.43        |   |             | $      | 0.66 |   |   | $ | 0.63 |   |   | $ | (1.27 | ) |
| Weighted average shares outstanding*                                                                                                                                                                   |   |               | 2,653,432   |   |             |   | 1,817,464 |   |   |   | 2,234,912 |   |   |   | 1,817,464 |   |

----

DGT 

|                                                                                                                                                                                                            |   | January 29,2011 |    |   | July 31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
| ASSETS                                                                                                                                                                                                          |   |            |    |   |         |   |
| CURRENT ASSETS:                                                                                                                                                                                                 |   |            |    |   |         |   |
| Cash and cash equivalents                                                                                                                                                                                       |   | $               | 28,558  |   |         | $      | 3,987 |   |
| Trade receivables (net of allowance for doubtful accounts of $1,311 and $1,214 at   January 29, 2011 and July 31, 2010, respectively)                                                                 |   |            | 20,775  |   |         |   | 12,925 |   |
| Inventories (net of allowance for excess and obsolete of $3,325 and $2,536 at   January 29, 2011 and July 31, 2010, respectively)                                                                     |   |            | 9,304   |   |         |   | 9,123 |   |
| Prepaid expenses and other current assets                                                                                                                                                                       |   |            | 2,209   |   |         |   | 2,770 |   |
| Total current assets                                                                                                                                                                                            |   |            | 60,846  |   |         |   | 28,805 |   |
|                                                                                                                                                                                                            |   |            |    |   |         |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                                                                             |   |            |    |   |         |   |   |   |
| Property plant and equipment, net                                                                                                                                                                               |   |            | 5,275   |   |         |   | 5,254 |   |
| Deferred income taxes                                                                                                                                                                                           |   |            | 530     |   |         |   | 415 |   |
| Goodwill                                                                                                                                                                                                        |   |            | 4,526   |   |         |   | 4,526 |   |
| Other assets                                                                                                                                                                                                    |   |            | 130     |   |         |   | 29 |   |
| Total non-current assets                                                                                                                                                                                        |   |            | 10,461  |   |         |   | 10,224 |   |
| TOTAL ASSETS                                                                                                                                                                                                    |   | $               | 71,307  |   |         | $      | 39,029 |   |
|                                                                                                                                                                                                            |   |            |    |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                      |   |            |    |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                            |   |            |    |   |         |   |   |   |
| Revolving loan                                                                                                                                                                                                  |   | $               | 283     |   |         | $      | 135 |   |
| Current portion of long-term debt                                                                                                                                                                               |   |            | 1,506   |   |         |   | 1,973 |   |
| Accounts payable – trade                                                                                                                                                                                  |   |            | 14,878  |   |         |   | 5,643 |   |
| Accrued expenses                                                                                                                                                                                                |   |            | 7,480   |   |         |   | 3,643 |   |
| Total current liabilities                                                                                                                                                                                       |   |            | 24,147  |   |         |   | 11,394 |   |
|                                                                                                                                                                                                            |   |            |    |   |         |   |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                                                        |   |            |    |   |         |   |   |   |
| Long-term debt, less current portion                                                                                                                                                                            |   |            | 2,432   |   |         |   | 95 |   |
| Other long-term liabilities                                                                                                                                                                                     |   |            | 1,922   |   |         |   | 1,763 |   |
| Total non-current liabilities                                                                                                                                                                                   |   |            | 4,354   |   |         |   | 1,858 |   |
| Total liabilities                                                                                                                                                                                               |   |            | 28,501  |   |         |   | 13,252 |   |
|                                                                                                                                                                                                            |   |            |    |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                   |   |            |    |   |         |   |   |   |
|                                                                                                                                                                                                            |   |            |    |   |         |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                                                                                           |   |            |    |   |         |   |   |   |
| Common stock, $.10 par value;                                                                                                                                                                                   |   |            |    |   |         |   |   |   |
| Authorized 100,000,000 and 50,000,000; January 29, 2011 and July 31, 2010,   respectively; issued-3,991,057 and 1,992,050 at January 29, 2011 and  July   31, 2010, respectively* |   |            | 399     |   |         |   | 199 |   |
| Additional paid-in capital*                                                                                                                                                                                     |   |            | 97,379  |   |         |   | 83,270 |   |
| Treasury shares – 174,585 shares, at cost at January 29, 2011 and  July 31, 2010*                                                                                                               |   |            | (7,176  | )      |         |   | (7,176 | ) |
| Accumulated other comprehensive income (loss)                                                                                                                                                                   |   |            | 1,103   |   |         |   | (214 | ) |
| Accumulated deficit                                                                                                                                                                                             |   |            | (48,899 | )      |         |   | (50,302 | ) |
| Total shareholders' equity                                                                                                                                                                                      |   |            | 42,806  |   |         |   | 25,777 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                      |   | $               | 71,307  |   |         | $      | 39,029 |   |

----

DGT 

|                                                                                     |   | Six Months Ended |   |
|------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                     |   | January 29,2011  |   |   | January 30,2010 |   |
|                                                                                     |   |             |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                    |   |             |   |   |   |   |
| Net income (loss)                                                                        |   | $                | 1,403  |   |   | $ | (2,301 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |             |   |   |   |   |   |   |
| Depreciation and amortization                                                            |   |             | 431    |   |   |   | 542 |   |
| Deferred income tax provision                                                            |   |             | (77    | ) |   |   | 35 |   |
| Stock based compensation expense                                                         |   |             | 65     |   |   |   | 125 |   |
| Write-down of assets and additional accruals for discontinued operations                 |   |             | -      |   |   |   | 1,549 |   |
| Changes in operating assets and liabilities:                                             |   |             |   |   |   |   |   |   |
| Trade receivables                                                                        |   |             | (6,792 | ) |   |   | 674 |   |
| Inventories                                                                              |   |             | 458    |   |   |   | 5,046 |   |
| Prepaid expenses and other current assets                                                |   |             | 647    |   |   |   | (85 | ) |
| Other assets                                                                             |   |             | (99    | ) |   |   | 45 |   |
| Accounts payable – trade                                                           |   |             | 8,743  |   |   |   | 1,900 |   |
| Accrued expenses                                                                         |   |             | 2,491  |   |   |   | (772 | ) |
| Other long-term liabilities                                                              |   |             | 1,132  |   |   |   | (184 | ) |
| Net cash provided by operating activities                                                |   |             | 8,402  |   |   |   | 6,574 |   |
|                                                                                     |   |             |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                    |   |             |   |   |   |   |   |   |
| Property plant and equipment purchases                                                   |   |             | (158   | ) |   |   | (316 | ) |
| Net cash used in investing activities                                                    |   |             | (158   | ) |   |   | (316 | ) |
|                                                                                     |   |             |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                    |   |             |   |   |   |   |   |   |
| Proceeds from Rights Offering, net of expenses                                           |   |             | 14,253 |   |   |   | - |   |
| Payment for fractional shares as a result of stock split                                 |   |             | (9     | ) |   |   | - |   |
| Proceeds from borrowing of long-term debt                                                |   |             | 2,500  |   |   |   | - |   |
| Borrowings under revolving loan                                                          |   |             | 135    |   |   |   | (7,416 | ) |
| Repayment of long-term debt                                                              |   |             | (808   | ) |   |   | (839 | ) |
| Net cash provided by (used in) financing activities                                      |   |             | 16,071 |   |   |   | (8,255 | ) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                  |   |             | 256    |   |   |   | (49 | ) |
| CASH AND CASH EQUIVALENTS INCREASE (DECREASE) FOR THE PERIOD                             |   |             | 24,571 |   |   |   | (2,046 | ) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD                                       |   |             | 3,987  |   |   |   | 7,983 |   |
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD                                             |   | $                | 28,558 |   |   | $ | 5,937 |   |
|                                                                                     |   |             |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                        |   |             |   |   |   |   |   |   |
| Cash paid for                                                                            |   |             |   |   |   |   |   |   |
| Interest                                                                                 |   | $                | 200    |   |   | $ | 349 |   |
| Taxes paid                                                                               |   |             | 403    |   |   |   | 499 |   |

----

DGT 

----

|                                                                                   |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                                                   |   | January 29,2011    |   |   | January 30,2010  |   |   | January 29,2011 |   |   | January 30,2010 |   |
| Sales                                                                                  |   | $                  | -      |   |             | $      | 1,911 |   |   | $ | - |   |   | $ | 5,428 |   |
| Loss from operations                                                                   |   | $                  | -      |   |             | $      | (263 | ) |   | $ | - |   |   | $ | (1,526 | ) |
| Asset realization (writedown) to net realizable value                                  |   |               |   |   |             |   | 291 |   |   |   | - |   |   |   | (1,549 | ) |
| Provision for income taxes                                                             |   |               | -      |   |             |   | (9 | ) |   |   | - |   |   |   | (20 | ) |
| Total net income (loss) from discontinued operations                                   |   | $                  | -      |   |             | $      | 19 |   |   | $ | - |   |   | $ | (3,095 | ) |
|                                                                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss)  per share – Basic and Diluted                           |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                                                          |   | $                  | -      |   |             | $      | (0.14 | ) |   | $ | - |   |   | $ | (0.84 | ) |
| Income (loss) on sale of operations, asset writedowns and   accrued expenses |   |               | -      |   |             |   | 0.15 |   |   |   | - |   |   |   | (0.86 | ) |
| Income (loss) per share—discontinued operations                                  |   | $                  | -      |   |             | $      | 0.01 |   |   | $ | - |   |   | $ | (1.70 | ) |

|                      |   | January 29,2011 |   |   | July 31,2010 |   |
|---------------------------|--------|-----------------|--------|--------|--------------|--------|
| Accounts receivable       |   | $               | -      |   |         | $      | 188 |   |
| Other current liabilities |   |            | 21     |   |         |   | 63 |   |

|                                                          |   | January 29,2011 |   |   | July 31, 2010 |   |
|---------------------------------------------------------------|--------|-----------------|--------|--------|--------------------|--------|
| Raw materials and purchased parts                             |   | $               | 8,831  |   |               | $      | 7,952 |   |
| Work-in-process                                               |   |            | 1,411  |   |               |   | 1,047 |   |
| Finished goods                                                |   |            | 2,387  |   |               |   | 2,660 |   |
|                                                          |   |            | 12,629 |   |               |   | 11,659 |   |
| Less allowance for  excess and obsolete inventories |   |            | (3,325 | )      |               |   | (2,536 | ) |
| Total inventories                                             |   | $               | 9,304  |   |               | $      | 9,123 |   |

----

|                                         |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                         |   | January 29,2011    |   |   | January 30,2010  |   |   | January 29,2011 |   |   | January 30,2010 |   |
| Balance at beginning of period               |   | $                  | 789    |   |             | $      | 597 |   |   | $ | 629 |   |   | $ | 704 |   |
| Provision for anticipated warranty claims    |   |               | 302    |   |             |   | 18 |   |   |   | 408 |   |   |   | 36 |   |
| Costs incurred related to warranty claims    |   |               | (35    | )      |             |   | (34 | ) |   |   | (75 | ) |   |   | (73 | ) |
| Liability related to discontinued operations |   |               | -      |   |             |   | 9 |   |   |   | - |   |   |   | (97 | ) |
| Effect of foreign currency fluctuations      |   |               | (15    | )      |             |   | (19 | ) |   |   | 79 |   |   |   | 1 |   |
| Balance at end of period                     |   | $                  | 1,041  |   |             | $      | 571 |   |   | $ | 1,041 |   |   | $ | 571 |   |

|                                     |   | Three Months Ended |   |   | Six Months Ended |   |
|------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                     |   | January 29,2011    |   |   | January 30,2010  |   |   | January 29,2011 |   |   | January 30,2010 |   |
| Net income (loss)                        |   | $                  | 1,130  |   |             | $      | 1,201 |   |   | $ | 1,403 |   |   | $ | (2,301 | ) |
| Foreign currency translation adjustments |   |               | (421   | )      |             |   | (295 | ) |   |   | 1,317 |   |   |   | 281 |   |
| Comprehensive income (loss)              |   | $                  | 709    |   |             | $      | 906 |   |   | $ | 2,720 |   |   | $ | (2,020 | ) |

----

|                                                                                             |   | Three Months Ended |        |   | Six Months Ended |   |
|--------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|------------------|--------|
|                                                                                             |   | January 29,2011    |        |   | January 30,2010  |   |   | January 29,2011 |   |   | January 30,2010 |   |
| Numerator:                                                                                       |   |               |        |   |             |   |   |   |   |   |   |   |
| Net income (loss)                                                                                |   | $                  | 1,130       |   |             | $      | 1,201 |   |   | $ | 1,403 |   |   | $ | (2,301 | ) |
| Denominator (shares in thousands):                                                               |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares   outstanding used for basic income per share |   |               |  2,652 |   |             |   |  1,817 |   |   |   |  2,235 |   |   |   |  1,817 |   |
| Effect of dilutive securities                                                                    |   |               | 1           |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Denominator for diluted income per share                                                         |   |               | 2,653       |   |             |   | 1,817 |   |   |   | 2,235 |   |   |   | 1,817 |   |
|                                                                                             |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) per common share:                                                                  |   |               |        |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                            |   | $                  | 0.43        |   |             | $      | 0.66 |   |   | $ | 0.63 |   |   | $ | (1.27 | ) |
| Diluted                                                                                          |   | $                  | 0.43        |   |             | $      | 0.66 |   |   | $ | 0.63 |   |   | $ | (1.27 | ) |

|                   |   | Three Months Ended |   |   | Six Months Ended |   |
|------------------------|--------|--------------------|--------|--------|------------------|--------|
|                   |   | January 29,2011    |   |   | January 30,2010  |   |   | January 29,2011 |   |   | January 30,2010 |   |
| Employee stock options |   |               | 145    |   |             |   | 205 |   |   |   | 157 |   |   |   | 205 |   |

| Revolving lines of credit: |   | January 29,2011 |   |   | July 31,2010 |   |
|----------------------------|--------|-----------------|--------|--------|--------------|--------|
| Domestic                   |   | $               | -      |   |         | $      | - |   |
| Foreign                    |   |            | 283    |   |         |   | 135 |   |
| Total                      |   | $               | 283    |   |         | $      | 135 |   |

----

|                                        |   | January 29,2011 |   |   | July 31,2010 |   |
|---------------------------------------------|--------|-----------------|--------|--------|--------------|--------|
| Mortgage                                    |   | $               | 2,475  |   |         | $      | - |   |
| Foreign capital lease obligations           |   |            | 1,155  |   |         |   | 1,273 |   |
| Foreign credit facilities                   |   |            | 308    |   |         |   | 647 |   |
| Foreign Italian government loans            |   |            | -      |   |         |   | 148 |   |
| Total long term debt                        |   |            | 3,938  |   |         |   | 2,068 |   |
| Less current portion of long-term bank debt |   |            | (1,506 | )      |         |   | (1,973 | ) |
| Long term debt, less current portion        |   | $               | 2,432  |   |         | $      | 95 |   |

----

| For three months endedJanuary 29, 2011 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|----------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers            |   | $                   | 22,350 |   |                 | $      | 2,488  |   |   | $      | -      |   |   | $ | 24,838 |   |
| Cost of sales                          |   |                | 17,062 |   |                 |   | 2,212  |   |   |   | -      |   |   |   | 19,274 |   |
| Gross margin                           |   |                | 5,288  |   |                 |   | 276    |   |   |   |   |   |   |   | 5,564 |   |
|                                   |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                     |   |                | 2,433  |   |                 |   | 539    |   |   |   | 395    |   |   |   | 3,367 |   |
| Operating income (loss)                |   | $                   | 2,855  |   |                 | $      | (263   | )      |   | $      | (395   | )      |   | $ | 2,197 |   |

| For three months endedJanuary 30, 2010 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|----------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers            |   | $                   | 14,949 |   |                 | $      | 3,109  |   |   | $      | -      |   |   | $ | 18,058 |   |
| Cost of sales                          |   |                | 11,265 |   |                 |   | 1,947  |   |   |   | -      |   |   |   | 13,212 |   |
| Gross margin                           |   |                | 3,684  |   |                 |   | 1,162  |   |   |   | -      |   |   |   | 4,846 |   |
|                                   |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                     |   |                | 2,052  |   |                 |   | 664    |   |   |   | 163    |   |   |   | 2,879 |   |
| Operating income (loss)                |   | $                   | 1,967  |   |                 | $      | 498    |   |   | $      | (163   | )      |   | $ | 1,967 |   |

| For six months endedJanuary 29, 2011 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|--------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers          |   | $                   | 35,661 |   |                 | $      | 4,735  |   |   | $      | -      |   |   | $ | 40,396 |   |
| Cost of sales                        |   |                | 27,420 |   |                 |   | 3,917  |   |   |   | -      |   |   |   | 31,337 |   |
| Gross margin                         |   |                | 8,241  |   |                 |   | 818    |   |   |   |   |   |   |   | 9,059 |   |
|                                 |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                   |   |                | 4,116  |   |                 |   | 1,403  |   |   |   | 551    |   |   |   | 6,070 |   |
| Operating income (loss)              |   | $                   | 4,125  |   |                 | $      | (585   | )      |   | $      | (551   | )      |   | $ | 2,989 |   |

| For six months endedJanuary 30, 2010 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|--------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers          |   | $                   | 24,444 |   |                 | $      | 5,196  |   |   | $      | -      |   |   | $ | 29,640 |   |
| Cost of sales                        |   |                | 18,833 |   |                 |   | 3,386  |   |   |   | -      |   |   |   | 22,219 |   |
| Gross margin                         |   |                | 5,611  |   |                 |   | 1,810  |   |   |   |   |   |   |   | 7,421 |   |
|                                 |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                   |   |                | 3,788  |   |                 |   | 1,241  |   |   |   | 521    |   |   |   | 5,550 |   |
| Operating income (loss)              |   | $                   | 1,823  |   |                 | $      | 569    |   |   | $      | (521   | )      |   | $ | 1,871 |   |

----

----

| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

----

|                                                   |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (Dollars in thousands, except per share data)          |   | Jan. 29,2011       |   |   | Jan. 30,2010     |   |   | Jan. 29,2011 |   |   | Jan. 30,2010 |   |
| Sales:                                                 |   |               |   |   |             |   |   |   |   |   |   |   |
| Medical Systems Group                                  |   | $                  | 22,350 |   |             | $      | 14,949 |   |   | $ | 35,661 |   |   | $ | 24,444 |   |
| Power Conversion Group                                 |   |               | 2,488  |   |             |   | 3,109 |   |   |   | 4,735 |   |   |   | 5,196 |   |
| Total                                                  |   | $                  | 24,838 |   |             | $      | 18,058 |   |   | $ | 40,396 |   |   | $ | 29,640 |   |
|                                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin as a percentage of sales                  |   |               | 22.4   | %      |             |   | 26.8 | % |   |   | 22.4 | % |   |   | 25.0 | % |
| Total operating expenses                               |   |               | 3,367  |   |             |   | 2,879 |   |   |   | 6,070 |   |   |   | 5,550 |   |
| Net earnings from continuing operations                |   |               | 1,130  |   |             |   | 1,182 |   |   |   | 1,403 |   |   |   | 794 |   |
| Diluted earnings per share—continuing operations |   | $                  | 0.43   |   |             | $      | 0.65 |   |   | $ | 0.63 |   |   | $ | 0.44 |   |

----

| (Dollars in thousands)              |   | Three months endedJanuary 29, 2011 |   |   | Six Months endedJanuary 29, 2011 |   |
|-------------------------------------|--------|------------------------------------|--------|--------|----------------------------------|--------|
|                                |   |                               |   |   |                             |   |
| Research and development            |   | $                                  | 83     |   |                             | $      | 108 |   |
| Selling, general and administrative |   |                               | 405    |   |                             |   | 412 |   |
| Change in operating expenses        |   | $                                  | 488    |   |                             | $      | 520 |   |

----

| The following is a summary of the Company’s cash flows: |   | Three Months Ended |   |
|---------------------------------------------------------------|--------|--------------------|--------|
| (Dollars in thousands,)                                       |   | Jan. 29,2011       |   |   | Jan. 30,2010 |   |
| Net cash provided by operating activities                     |   | $                  | 8,402  |   |   | $ | 6,574 |   |
| Net cash used in investing activities                         |   |               | (158   | ) |   |   | (316 | ) |
| Net cash provided by financing activities                     |   |               | 16,071 |   |   |   | (8,255 | ) |
| Effect of exchange rate changes on cash                       |   |               | 256    |   |   |   | (49 | ) |
| Net increase/(decrease) in cash and cash equivalents          |   |               | 24,571 |   |   |   | (2,046 | ) |
| Cash and cash equivalents at beginning of year                |   |               | 3,987  |   |   |   | 7,983 |   |
| Cash and cash equivalents at end of period                    |   | $                  | 28,558 |   |   | $ | 5,937 |   |

----

| Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| Item 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

----

----

PART 

| Item 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| Item 1A. | RISK FACTORS |
|----------|--------------|

| Item 6. | EXHIBITS |
|---------|----------|

|   |                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1*  | Certification of the Principal Executive Officer, John J. Quicke, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                            |
|   |                                                                                                                                                                    |
| 31.2*  | Certification of Principal Financial Officer, Mark A. Zorko, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                 |
|   |                                                                                                                                                                    |
| 32.1*  | Certification of the Principal Executive Officer, John J. Quicke, pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                                                                    |
| 32.2*  | Certification of the Principal Financial Officer, Mark A. Zorko, pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |
|   |                                                                                                                                                                    |
|   | * Filed herewith                                                                                                                                                        |

----

SIGNATURES

|   | DGT HOLDINGS CORP.                    |
|--------|---------------------------------------|
|   |                                  |
|   | /s/ John J. Quicke                    |
|   | John J. Quicke                        |
|   | President and Chief Executive Officer |

|   |                    |
|--------|-------------------------|
|   | /s/ Mark A. Zorko       |
|   | Mark A. Zorko           |
|   | Chief Financial Officer |

----