| 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 Nine Months ended April 30, 2011 and May 1, 2010                    | 3        |   |
|      | Balance Sheets as of April 30, 2011 and July 31, 2010                                                          | 4        |   |
|      | Statements of Cash Flows for the Nine Months ended April 30, 2011 and May 1, 2010                              | 5        |   |
|      | Notes to Financial Statements                                                                                  | 6-11     |   |
|      | Item 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 12-18    |   |
|      | Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 18       |   |
|      | Item 4.  CONTROLS AND PROCEDURES                                                                     | 18       |   |
|      |                                                                                                           |     |   |
| 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 |      |   | Nine Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                                                                                                                                                                         |   | April 30,2011      |      |   | May 1,2010        |   |   | April 30,2011 |   |   | May 1,2010 |   |
| SALES                                                                                                                                                                                                                        |   | $                  | 12,652    |   |              | $      | 13,150 |   |   | $ | 53,048 |   |   | $ | 42,790 |   |
| COST OF SALES                                                                                                                                                                                                                |   |               | 10,025    |   |              |   | 10,059 |   |   |   | 41,362 |   |   |   | 32,278 |   |
| GROSS MARGIN                                                                                                                                                                                                                 |   |               | 2,627     |   |              |   | 3,091 |   |   |   | 11,686 |   |   |   | 10,512 |   |
|                                                                                                                                                                                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                                                                                                                                                                                          |   |               | 2,410     |   |              |   | 2,202 |   |   |   | 7,397 |   |   |   | 6,777 |   |
| Research and development                                                                                                                                                                                                     |   |               | 518       |   |              |   | 592 |   |   |   | 1,601 |   |   |   | 1,567 |   |
| Total operating expenses                                                                                                                                                                                                     |   |               | 2,928     |   |              |   | 2,794 |   |   |   | 8,998 |   |   |   | 8,344 |   |
| OPERATING INCOME (LOSS)                                                                                                                                                                                                      |   |               | (301      | )      |              |   | 297 |   |   |   | 2,688 |   |   |   | 2,168 |   |
|                                                                                                                                                                                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net of interest income of $52    and $104 for the three and nine months    ended in FY 2011 and $23 and $34 for the    three and nine months ended in FY 2010 |   |               | (25       | )      |              |   | (45 | ) |   |   | (162 | ) |   |   | (394 | ) |
| Other income (expense)                                                                                                                                                                                                       |   |               | 11        |   |              |   | 121 |   |   |   | 103 |   |   |   | 76 |   |
| INCOME (LOSS) FROM CONTINUING    OPERATIONS BEFORE INCOME TAXES                                                                                                                                               |   |               | (315      | )      |              |   | 373 |   |   |   | 2,629 |   |   |   | 1,850 |   |
| Income tax provision                                                                                                                                                                                                         |   |               | 35        |   |              |   | 62 |   |   |   | 1,576 |   |   |   | 745 |   |
|                                                                                                                                                                                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM CONTINUING    OPERATIONS                                                                                                                                                                   |   |               | (350      | )      |              |   | 311 |   |   |   | 1,053 |   |   |   | 1,105 |   |
| Loss from discontinued operations                                                                                                                                                                                            |   |               | -         |   |              |   | (15 | ) |   |   | - |   |   |   | (3,110 | ) |
| NET INCOME (LOSS)                                                                                                                                                                                                            |   | $                  | (350      | )      |              | $      | 296 |   |   | $ | 1,053 |   |   | $ | (2,005 | ) |
|                                                                                                                                                                                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER BASIC SHARE:                                                                                                                                                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                                                                                                                                                            |   | $                  | (0.09     | )      |              | $      | 0.17 |   |   | $ | 0.38 |   |   | $ | 0.61 |   |
| Income (loss) from discontinued operations                                                                                                                                                                                   |   |               | -         |   |              |   | (0.01 | ) |   |   | - |   |   |   | (1.71 | ) |
| Net income (loss)                                                                                                                                                                                                            |   | $                  | (0.09     | )      |              | $      | 0.16 |   |   | $ | 0.38 |   |   | $ | (1.10 | ) |
| Weighted average shares outstanding*                                                                                                                                                                                         |   |               | 3,846,234 |   |              |   | 1,817,464 |   |   |   | 2,772,040 |   |   |   | 1,817,464 |   |
|                                                                                                                                                                                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER DILUTED SHARE:                                                                                                                                                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                                                                                                                                                            |   | $                  | (0.09     | )      |              | $      | 0.17 |   |   | $ | 0.38 |   |   | $ | 0.61 |   |
| Income (loss) from discontinued operations                                                                                                                                                                                   |   |               | -         |   |              |   | (0.01 | ) |   |   | - |   |   |   | (1.71 | ) |
| Net income (loss)                                                                                                                                                                                                            |   | $                  | (0.09     | )      |              | $      | 0.16 |   |   | $ | 0.38 |   |   | $ | (1.10 | ) |
| Weighted average shares outstanding*                                                                                                                                                                                         |   |               | 3,846,234 |   |              |   | 1,818,824 |   |   |   | 2,773,528 |   |   |   | 1,817,464 |   |

----

DGT 

|                                                                                                                                                                              |   | April 30,2011 |    |   | July 31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
| ASSETS                                                                                                                                                                            |   |          |    |   |         |   |
| CURRENT ASSETS:                                                                                                                                                                   |   |          |    |   |         |   |
| Cash and cash equivalents                                                                                                                                                         |   | $             | 22,767  |   |         | $      | 3,987 |   |
| Trade receivables (net of allowance for doubtful accounts of $1,035 and $1,214 at     April 30, 2011 and July 31, 2010, respectively)                         |   |          | 15,722  |   |         |   | 12,925 |   |
| Inventories (net of allowance for excess and obsolete of $3,554 and $2,536 at     April 30, 2011 and July 31, 2010, respectively)                             |   |          | 11,040  |   |         |   | 9,123 |   |
| Prepaid expenses and other current assets                                                                                                                                         |   |          | 4,104   |   |         |   | 2,770 |   |
| Total current assets                                                                                                                                                              |   |          | 53,633  |   |         |   | 28,805 |   |
|                                                                                                                                                                              |   |          |    |   |         |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                                                               |   |          |    |   |         |   |   |   |
| Property plant and equipment, net                                                                                                                                                 |   |          | 5,293   |   |         |   | 5,254 |   |
| Deferred income taxes                                                                                                                                                             |   |          | 545     |   |         |   | 415 |   |
| Goodwill                                                                                                                                                                          |   |          | 4,526   |   |         |   | 4,526 |   |
| Other assets                                                                                                                                                                      |   |          | 121     |   |         |   | 29 |   |
| Total non-current assets                                                                                                                                                          |   |          | 10,485  |   |         |   | 10,224 |   |
| TOTAL ASSETS                                                                                                                                                                      |   | $             | 64,118  |   |         | $      | 39,029 |   |
|                                                                                                                                                                              |   |          |    |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                        |   |          |    |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                              |   |          |    |   |         |   |   |   |
| Revolving loan                                                                                                                                                                    |   | $             | 109     |   |         | $      | 135 |   |
| Current portion of long-term debt                                                                                                                                                 |   |          | 1,397   |   |         |   | 1,973 |   |
| Accounts payable – trade                                                                                                                                                    |   |          | 7,162   |   |         |   | 5,643 |   |
| Accrued expenses                                                                                                                                                                  |   |          | 7,317   |   |         |   | 3,643 |   |
| Total current liabilities                                                                                                                                                         |   |          | 15,985  |   |         |   | 11,394 |   |
|                                                                                                                                                                              |   |          |    |   |         |   |   |   |
| NON-CURRENT LIABILITIES:                                                                                                                                                          |   |          |    |   |         |   |   |   |
| Long-term debt, less current portion                                                                                                                                              |   |          | 2,379   |   |         |   | 95 |   |
| Other long-term liabilities                                                                                                                                                       |   |          | 1,919   |   |         |   | 1,763 |   |
| Total non-current liabilities                                                                                                                                                     |   |          | 4,298   |   |         |   | 1,858 |   |
| Total liabilities                                                                                                                                                                 |   |          | 20,283  |   |         |   | 13,252 |   |
|                                                                                                                                                                              |   |          |    |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                     |   |          |    |   |         |   |   |   |
|                                                                                                                                                                              |   |          |    |   |         |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                                                             |   |          |    |   |         |   |   |   |
| Common stock, $.10 par value;                                                                                                                                                     |   |          |    |   |         |   |   |   |
| Authorized 100,000,000 and 50,000,000; April 30, 2011 and July 31, 2010,respectively; issued-3,991,057 and 1,992,050 at April 30, 2011 and  July 31,2010, respectively* |   |          | 399     |   |         |   | 199 |   |
| Additional paid-in capital*                                                                                                                                                       |   |          | 97,546  |   |         |   | 83,270 |   |
| Treasury shares – 174,585 shares, at cost at April 30, 2011 and  July 31, 2010*                                                                                   |   |          | (7,176  | )      |         |   | (7,176 | ) |
| Accumulated other comprehensive income (loss)                                                                                                                                     |   |          | 2,315   |   |         |   | (214 | ) |
| Accumulated deficit                                                                                                                                                               |   |          | (49,249 | )      |         |   | (50,302 | ) |
| Total shareholders' equity                                                                                                                                                        |   |          | 43,835  |   |         |   | 25,777 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                        |   | $             | 64,118  |   |         | $      | 39,029 |   |

----

DGT 

|                                                                                     |   | Nine Months Ended |   |
|------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                     |   | April 30,2011     |   |   | May 1,2010 |   |
|                                                                                     |   |              |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                    |   |              |   |   |   |   |
| Net income (loss)                                                                        |   | $                 | 1,053  |   |   | $ | (2,005 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |              |   |   |   |   |   |   |
| Depreciation and amortization                                                            |   |              | 651    |   |   |   | 797 |   |
| Deferred income tax provision                                                            |   |              | (59    | ) |   |   | - |   |
| Stock based compensation expense                                                         |   |              | 145    |   |   |   | 204 |   |
| Write-down of assets and additional accruals for discontinued operations                 |   |              | -      |   |   |   | 1,555 |   |
| Changes in operating assets and liabilities:                                             |   |              |   |   |   |   |   |   |
| Trade receivables                                                                        |   |              | (870   | ) |   |   | 3,614 |   |
| Inventories                                                                              |   |              | (733   | ) |   |   | 4,917 |   |
| Prepaid expenses and other current assets                                                |   |              | (75    | ) |   |   | 370 |   |
| Other assets                                                                             |   |              | (90    | ) |   |   | 45 |   |
| Accounts payable – trade                                                           |   |              | 724    |   |   |   | (761 | ) |
| Accrued expenses                                                                         |   |              | 3,080  |   |   |   | (1,450 | ) |
| Other long-term liabilities                                                              |   |              | (114   | ) |   |   | (354 | ) |
| Net cash provided by operating activities                                                |   |              | 3,712  |   |   |   | 6,932 |   |
|                                                                                     |   |              |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                    |   |              |   |   |   |   |   |   |
| Property plant and equipment purchases                                                   |   |              | (183   | ) |   |   | (495 | ) |
| Net cash used in investing activities                                                    |   |              | (183   | ) |   |   | (495 | ) |
|                                                                                     |   |              |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                    |   |              |   |   |   |   |   |   |
| Proceeds from Rights Offering, net of expenses                                           |   |              | 14,340 |   |   |   | - |   |
| Payment for fractional shares as a result of stock split                                 |   |              | (9     | ) |   |   | - |   |
| Proceeds from borrowing of long-term debt                                                |   |              | 2,500  |   |   |   | - |   |
| Repayments  under revolving loan                                               |   |              | (44    | ) |   |   | (7,414 | ) |
| Repayment of long-term debt                                                              |   |              | (2,095 | ) |   |   | (1,342 | ) |
| Net cash provided by (used in) financing activities                                      |   |              | 14,692 |   |   |   | (8,756 | ) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                  |   |              | 559    |   |   |   | (293 | ) |
| CASH AND CASH EQUIVALENTS INCREASE (DECREASE) FOR THE PERIOD                             |   |              | 18,780 |   |   |   | (2,612 | ) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD                                       |   |              | 3,987  |   |   |   | 7,983 |   |
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD                                             |   | $                 | 22,767 |   |   | $ | 5,371 |   |
|                                                                                     |   |              |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                                        |   |              |   |   |   |   |   |   |
| Cash paid for                                                                            |   |              |   |   |   |   |   |   |
| Interest                                                                                 |   | $                 | 447    |   |   | $ | 394 |   |
| Taxes paid                                                                               |   |              | 434    |   |   |   | 457 |   |

----

DGT 

----

|                                                                                               |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                               |   | April 30,2011      |   |   | May 1,2010        |   |   | April 30,2011 |   |   | May 1,2010 |   |
| Sales                                                                                              |   | $                  | -      |   |              | $      | - |   |   | $ | - |   |   | $ | 5,428 |   |
| Loss from operations                                                                               |   | $                  | -      |   |              | $      | (15 | ) |   | $ | - |   |   | $ | (1,541 | ) |
| Asset realization (writedown) to net realizable value                                              |   |               |   |   |              |   | - |   |   |   | - |   |   |   | (1,549 | ) |
| Provision for income taxes                                                                         |   |               | -      |   |              |   | - |   |   |   | - |   |   |   | (20 | ) |
| Total net income (loss) from discontinued operations                                               |   | $                  | -      |   |              | $      | (15 | ) |   | $ | - |   |   | $ | (3,110 | ) |
|                                                                                               |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss)  per share – Basic and Diluted                                       |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                                                                      |   | $                  | -      |   |              | $      | (0.01 | ) |   | $ | - |   |   | $ | (0.86 | ) |
| Income (loss) on sale of operations, asset writedowns and     accrued expenses |   |               | -      |   |              |   | - |   |   |   | - |   |   |   | (0.85 | ) |
| Income (loss) per share—discontinued operations                                              |   | $                  | -      |   |              | $      | (0.01 | ) |   | $ | - |   |   | $ | (1.71 | ) |

|                                                          |   | April 30,2011 |   |   | July 31, 2010 |   |
|---------------------------------------------------------------|--------|---------------|--------|--------|--------------------|--------|
| Raw materials and purchased parts                             |   | $             | 9,891  |   |               | $      | 7,952 |   |
| Work-in-process                                               |   |          | 1,647  |   |               |   | 1,047 |   |
| Finished goods                                                |   |          | 3,056  |   |               |   | 2,660 |   |
|                                                          |   |          | 14,594 |   |               |   | 11,659 |   |
| Less allowance for  excess and obsolete inventories |   |          | (3,554 | )      |               |   | (2,536 | ) |
| Total inventories                                             |   | $             | 11,040 |   |               | $      | 9,123 |   |

----

|                                         |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                         |   | April 30,2011      |   |   | May 1,2010        |   |   | April 30,2011 |   |   | May 1,2010 |   |
| Balance at beginning of period               |   | $                  | 1,041  |   |              | $      | 571 |   |   | $ | 629 |   |   | $ | 704 |   |
| Provision for anticipated warranty claims    |   |               | 41     |   |              |   | 170 |   |   |   | 449 |   |   |   | 206 |   |
| Costs incurred related to warranty claims    |   |               | (84    | )      |              |   | (31 | ) |   |   | (159 | ) |   |   | (104 | ) |
| Liability related to discontinued operations |   |               | -      |   |              |   | - |   |   |   | - |   |   |   | (97 | ) |
| Effect of foreign currency fluctuations      |   |               | 57     |   |              |   | - |   |   |   | 136 |   |   |   | 1 |   |
| Balance at end of period                     |   | $                  | 1,055  |   |              | $      | 710 |   |   | $ | 1,055 |   |   | $ | 710 |   |

|                                     |   | Three Months Ended |   |   | Nine Months Ended |   |
|------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                     |   | April 30,2011      |   |   | May 1,2010        |   |   | April 30,2011 |   |   | May 1,2010 |   |
| Net income (loss)                        |   | $                  | (350   | )      |              | $      | 296 |   |   | $ | 1,053 |   |   | $ | (2,005 | ) |
| Foreign currency translation adjustments |   |               | 1,212  |   |              |   | (1,109 | ) |   |   | 2,529 |   |   |   | (828 | ) |
| Comprehensive income (loss)              |   | $                  | 862    |   |              | $      | (813 | ) |   | $ | 3,582 |   |   | $ | (2,833 | ) |

----

|                                                                                                         |   | Three Months Ended |   |   | Nine Months Ended |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                                         |   | April 30, 2011     |   |   | May 1, 2010       |   |   | April 30, 2011 |   |   | May 1, 2010 |   |
| Numerator:                                                                                                   |   |               |   |   |              |   |   |   |   |   |   |   |
| Net income (loss)                                                                                            |   | $                  | (350   | )      |              | $      | 296 |   |   | $ | 1,053 |   |   | $ | (2,005 | ) |
| Denominator (shares in thousands):                                                                           |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares     outstanding used for basic income per share |   |               | 3,846  |   |              |   | 1,817 |   |   |   | 2,772 |   |   |   | 1,817 |   |
| Effect of dilutive securities                                                                                |   |               | -      |   |              |   | 2 |   |   |   | 2 |   |   |   | - |   |
| Denominator for diluted income per share                                                                     |   |               | 3,846  |   |              |   | 1,819 |   |   |   | 2,774 |   |   |   | 1,817 |   |
|                                                                                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) per common share:                                                                              |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                        |   | $                  | (0.09  | )      |              | $      | 0.16 |   |   | $ | 0.38 |   |   | $ | (1.10 | ) |
| Diluted                                                                                                      |   | $                  | (0.09  | )      |              | $      | 0.16 |   |   | $ | 0.38 |   |   | $ | (1.10 | ) |

|                   |   | Three Months Ended |   |   | Nine Months Ended |   |
|------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                   |   | April 30,2011      |   |   | May 1,2010        |   |   | April 30,2011 |   |   | May 1,2010 |   |
| Employee stock options |   |               | 126    |   |              |   | 195 |   |   |   | 126 |   |   |   | 205 |   |

| Revolving lines of credit: |   | April 30,2011 |   |   | July 31,2010 |   |
|----------------------------|--------|---------------|--------|--------|--------------|--------|
| Domestic                   |   | $             | -      |   |         | $      | - |   |
| Foreign                    |   |          | 109    |   |         |   | 135 |   |
| Total                      |   | $             | 109    |   |         | $      | 135 |   |

----

|                                        |   | April 30,2011 |   |   | July 31,2010 |   |
|---------------------------------------------|--------|---------------|--------|--------|--------------|--------|
| Mortgage                                    |   | $             | 2,456  |   |         | $      | - |   |
| Foreign capital lease obligations           |   |          | 1,101  |   |         |   | 1,273 |   |
| Foreign credit facilities                   |   |          | 219    |   |         |   | 647 |   |
| Foreign Italian government loans            |   |          | -      |   |         |   | 148 |   |
| Total long term debt                        |   |          | 3,776  |   |         |   | 2,068 |   |
| Less current portion of long-term bank debt |   |          | (1,397 | )      |         |   | (1,973 | ) |
| Long term debt, less current portion        |   | $             | 2,379  |   |         | $      | 95 |   |

----

| For three months endedApril 30, 2011 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|--------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers          |   | $                   | 9,920  |   |                 | $      | 2,732  |   |   | $      | -      |   |   | $ | 12,652 |   |
| Cost of sales                        |   |                | 8,118  |   |                 |   | 1,907  |   |   |   | -      |   |   |   | 10,025 |   |
| Gross margin                         |   |                | 1,802  |   |                 |   | 825    |   |   |   |   |   |   |   | 2,627 |   |
|                                 |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                   |   |                | 1,952  |   |                 |   | 704    |   |   |   | 272    |   |   |   | 2,928 |   |
| Operating income (loss)              |   | $                   | (150   | )      |                 | $      | 121    |   |   | $      | (272   | )      |   | $ | (301 | ) |

| For three months endedMay 1, 2010 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|-----------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers       |   | $                   | 9,872  |   |                 | $      | 3,278  |   |   | $      | -      |   |   | $ | 13,150 |   |
| Cost of sales                     |   |                | 7,952  |   |                 |   | 2,107  |   |   |   | -      |   |   |   | 10,059 |   |
| Gross margin                      |   |                | 1,920  |   |                 |   | 1,171  |   |   |   | -      |   |   |   | 3,091 |   |
|                              |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                |   |                | 1,882  |   |                 |   | 677    |   |   |   | 235    |   |   |   | 2,794 |   |
| Operating income (loss)           |   | $                   | 38     |   |                 | $      | 494    |   |   | $      | (235   | )      |   | $ | 297 |   |

| For nine months endedApril 30, 2011 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|-------------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers         |   | $                   | 45,581 |   |                 | $      | 7,467  |   |   | $      | -      |   |   | $ | 53,048 |   |
| Cost of sales                       |   |                | 35,538 |   |                 |   | 5,824  |   |   |   | -      |   |   |   | 41,362 |   |
| Gross margin                        |   |                | 10,043 |   |                 |   | 1,643  |   |   |   |   |   |   |   | 11,686 |   |
|                                |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                  |   |                | 6,068  |   |                 |   | 2,107  |   |   |   | 823    |   |   |   | 8,998 |   |
| Operating income (loss)             |   | $                   | 3,975  |   |                 | $      | (464   | )      |   | $      | (823   | )      |   | $ | 2,688 |   |

| For nine months endedMay 1, 2010 |   | MedicalSystemsGroup |   |   | PowerConversionGroup |   |   | Other  |   |   | Total  |   |
|----------------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| Sales to External Customers      |   | $                   | 34,316 |   |                 | $      | 8,474  |   |   | $      | -      |   |   | $ | 42,790 |   |
| Cost of sales                    |   |                | 26,785 |   |                 |   | 5,493  |   |   |   | -      |   |   |   | 32,278 |   |
| Gross margin                     |   |                | 7,531  |   |                 |   | 2,981  |   |   |   |   |   |   |   | 10,512 |   |
|                             |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses               |   |                | 5,670  |   |                 |   | 1,918  |   |   |   | 756    |   |   |   | 8,344 |   |
| Operating income (loss)          |   | $                   | 1,861  |   |                 | $      | 1,063  |   |   | $      | (756   | )      |   | $ | 2,168 |   |

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

----

----

|                                                   |   | Three Months Ended |   |   | Nine Months Ended |   |
|--------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| (Dollars in thousands, except per share data)          |   | Apr. 30,2011       |   |   | May 1,2010        |   |   | Apr. 30,2011 |   |   | May 1,2010 |   |
| Sales:                                                 |   |               |   |   |              |   |   |   |   |   |   |   |
| Medical Systems Group                                  |   | $                  | 9,920  |   |              | $      | 9,872 |   |   | $ | 45,581 |   |   | $ | 34,316 |   |
| Power Conversion Group                                 |   |               | 2,732  |   |              |   | 3,278 |   |   |   | 7,467 |   |   |   | 8,474 |   |
| Total                                                  |   | $                  | 12,652 |   |              | $      | 13,150 |   |   | $ | 53,048 |   |   | $ | 42,790 |   |
|                                                   |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin as a percentage of sales                  |   |               | 20.8   | %      |              |   | 23.5 | % |   |   | 22.0 | % |   |   | 24.6 | % |
| Total operating expenses                               |   |               | 2,928  |   |              |   | 2,794 |   |   |   | 8,998 |   |   |   | 8,344 |   |
| Net income (loss) from continuing operations           |   |               | (350   | )      |              |   | 311 |   |   |   | 1,053 |   |   |   | 1,105 |   |
| Diluted earnings per share—continuing operations |   | $                  | (0.09  | )      |              | $      | 0.17 |   |   | $ | 0.38 |   |   | $ | 0.61 |   |

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| (Dollars in thousands)              |   | Three months endedApril 30, 2011 |   |   | Nine Months endedApril 30, 2011 |   |
|-------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| Research and development            |   | $                                | (74    | )      |                            | $      | 34 |   |
| Selling, general and administrative |   |                             | 208    |   |                            |   | 620 |   |
| Change in operating expenses        |   | $                                | 134    |   |                            | $      | 654 |   |

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|                                                           |   | Nine Months Ended |   |
|----------------------------------------------------------------|--------|-------------------|--------|
| (Dollars in thousands)                                         |   | Apr. 30,2011      |   |   | May 1,2010 |   |
| Net cash provided by operating activities                      |   | $                 | 3,712  |   |   | $ | 6,932 |   |
| Net cash used in investing activities                          |   |              | (183   | ) |   |   | (495 | ) |
| Net cash provided by (used in)  financing activities |   |              | 14,692 |   |   |   | (8,756 | ) |
| Effect of exchange rate changes on cash                        |   |              | 559    |   |   |   | (293 | ) |
| Net increase/(decrease) in cash and cash equivalents           |   |              | 18,780 |   |   |   | (2,612 | ) |
| Cash and cash equivalents at beginning of year                 |   |              | 3,987  |   |   |   | 7,983 |   |
| Cash and cash equivalents at end of period                     |   | $                 | 22,767 |   |   | $ | 5,371 |   |

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

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

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----

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                                                                                                                                                        |

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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 |

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