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| T      | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934.                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                    |
|   | For      the Quarterly Period Ended March 31, 2008                                                                                                                                                      |
|   |
| Or     |
|   |
| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934. For the      transition period from ____________________ to      _____________________________ |

| TELTRONICS,      INC.                                                             |
|-----------------------------------------------------------------------------------|
| (Exact name      of registrant as specified in its charter)                       |
|                                                                              |
| Delaware                                                                          | 59-2937938 |
| (State or      other jurisdiction of Incorporation or organization)               | (IRS Employer      Identification Number) |
|                                                                              |
| 2150      Whitfield Industrial Way, Sarasota,      Florida   34243 |
| (Address of      principal executive offices including zip code)                  |
|                                                                              |
| (941)      753-5000                                                               |
| Issuer's      telephone number, including areacode                                |

| Large      accelerated filer                             | £ | Accelerated      filer         | £ |
|----------------------------------------------------------|--------|--------------------------------|--------|
| Non-accelerated      filer                               | T      | Smaller      reporting company | £ |
|  (Do not check      if a smaller reporting company) |

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|                     |                                                                                                                          | PAGE   |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| PART      I              | FINANCIAL      INFORMATION                                                                                               |   |
| ITEM 1.                  | FINANCIAL      STATEMENTS                                                                                                |   |
|                     | Condensed      Consolidated Balance Sheets at March 31, 2008(Unaudited)      and December 31, 2007                            | 1      |
|                     |  Condensed      Consolidated Statements of Operations (Unaudited)for the Three      months ended March 31, 2008 and 2007 | 2      |
|                     |  Condensed      Consolidated Statements of Cash Flows (Unaudited)for the Three      months ended March 31, 2008 and 2007 | 3      |
|                     |  Notes to      Condensed Consolidated Financial Statements (Unaudited)                                                   | 4      |
|  ITEM 2.            |  MANAGEMENT’S      DISCUSSION AND ANALYSIS OFFINANCIAL      CONDITION AND RESULTS OF OPERATIONS                    | 6      |
|  ITEM 3.            |  QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUTMARKET      RISK                                                     | 7      |
|  ITEM 4.            |  CONTROLS AND      PROCEDURES                                                                                            | 8      |
|  PART      II       |  OTHER      INFORMATION                                                                                                  |
|  ITEM 3.            |  DEFAULTS UPON      SENIOR SECURITIES                                                                                    | 8      |
|  ITEM 6.            |  EXHIBITS AND      REPORTS ON FORM 8-K                                                                                   | 8      |
|  SIGNATURE          | 9                                                                                                                             |
|  EXHIBIT      INDEX | 10                                                                                                                            |
|                     |                                                                                                                          |   |

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| ASSETS                                                           |   |
|------------------------------------------------------------------|--------|
|                                                             |   |   |   |   |   |   |
|                                                             |   | March      31, |   |   | December      31, |   |
|                                                             |   | 2008 |   |   | 2007 |   |
|                                                             |   | (Unaudited) |   |   |   |   |
| Current      assets:                                             |   |   |   |   |   |   |
| Cash and cash    equivalents                                     |   | $ | 633 |   |   | $ | 1,123 |   |
| Accounts receivable, net of allowance      for doubtful accounts |   |   | 6,231 |   |   |   | 9,122 |   |
| Inventories, net                                                 |   |   | 6,158 |   |   |   | 5,423 |   |
| Prepaid expenses and other current      assets                   |   |   | 450 |   |   |   | 643 |   |
| Total current assets                                             |   |   | 13,472 |   |   |   | 16,311 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                 |   |   | 951 |   |   |   | 949 |   |
| Other      assets                                                |   |   | 968 |   |   |   | 773 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $ | 15,391 |   |   | $ | 18,033 |   |
|                                                             |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ DEFICIENCY              |   |
|                                                             |   |   |   |   |   |   |   |   |
| Current      liabilities:                                        |   |   |   |   |   |   |   |   |
| Line of credit                                                   |   | $ | 2,323 |   |   | $ | 4,029 |   |
| Current portion of long-term      debt                           |   |   | 1,536 |   |   |   | 1,759 |   |
| Accounts payable                                                 |   |   | 6,496 |   |   |   | 6,279 |   |
| Other current    liabilities                                     |   |   | 4,166 |   |   |   | 4,128 |   |
| Total current    liabilities                                     |   |   | 14,521 |   |   |   | 16,195 |   |
| Long-term      liabilities:                                      |   |   |   |   |   |   |   |   |
| Deferred dividends                                               |   |   | 2,400 |   |   |   | 2,200 |   |
| Long-term debt, net of current      portion                      |   |   | 3,174 |   |   |   | 4,125 |   |
| Total long-term    liabilities                                   |   |   | 5,574 |   |   |   | 6,325 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Minority interest                                                |   |   | --- |   |   |   | --- |   |
|                                                             |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                               |   |   |   |   |   |   |   |   |
| Shareholders'      deficiency:                                   |   |   |   |   |   |   |   |   |
| Capital stock                                                    |   |   | 9 |   |   |   | 9 |   |
| Additional paid-in    capital                                    |   |   | 24,723 |   |   |   | 24,722 |   |
| Accumulated deficit and other      comprehensive loss            |   |   | (29,436 | ) |   |   | (29,218 | ) |
| Total shareholders'      deficiency                              |   |   | (4,704 | ) |   |   | (4,487 | ) |
|                                                             |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders'      deficiency              |   | $ | 15,391 |   |   | $ | 18,033 |   |

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|                                                                                |   | Three      Months Ended March 31, |      |
|-------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                |   | 2008                              |      |   | 2007 |   |
|                                                                                |   |                              |      |   |   |   |
| Net      sales                                                                      |   |                              |      |   |   |   |
|         Product      sales and installation |   | $                                 | 5,645     |   |   | $ | 6,657 |   |
| Maintenance and service                                                             |   |                              | 2,682     |   |   |   | 2,918 |   |
|                                                                                |   |                              | 8,327     |   |   |   | 9,575 |   |
| Cost of goods      sold                                                             |   |                              | 5,524     |   |   |   | 6,071 |   |
| Gross      profit                                                                   |   |                              | 2,803     |   |   |   | 3,504 |   |
| Operating      expenses:                                                            |   |                              |      |   |   |   |   |   |
| General and    administrative                                                       |   |                              | 1,514     |   |   |   | 1,390 |   |
| Sales and marketing                                                                 |   |                              | 1,339     |   |   |   | 1,540 |   |
| Research anddevelopment                                                             |   |                              | 904       |   |   |   | 1,140 |   |
| Depreciation                                                                        |   |                              | 88        |   |   |   | 64 |   |
|                                                                                |   |                              | 3,845     |   |   |   | 4,134 |   |
|                                                                                |   |                              |      |   |   |   |   |   |
| Loss from      operations                                                           |   |                              | (1,042    | ) |   |   | (630 | ) |
|                                                                                |   |                              |      |   |   |   |   |   |
| Other      income (expense):                                                        |   |                              |      |   |   |   |   |   |
| Interest                                                                            |   |                              | (326      | ) |   |   | (351 | ) |
| Other                                                                               |   |                              | 1,421     |   |   |   | (47 | ) |
| Minority interest                                                                   |   |                              | 38        |   |   |   | --- |   |
|                                                                                |   |                              | 1,133     |   |   |   | (398 | ) |
| Income      (loss) before income taxes                                              |   |                              | 91        |   |   |   | (1,028 | ) |
| Income      taxes                                                                   |   |                              | 4         |   |   |   | 6 |   |
| Net      income (loss)                                                              |   | $                                 | 87        |   |   | $ | (1,034 | ) |
| Dividends      on Preferred Series B and C Convertible stock                        |   |                              | 305       |   |   |   | 163 |   |
| Net      loss available to common shareholders                                      |   | $                                 | (218      | ) |   | $ | (1,197 | ) |
|                                                                                |   |                              |      |   |   |   |   |   |
| Net      loss per share:                                                            |   |                              |      |   |   |   |   |   |
| Basic and Diluted                                                                   |   | $                                 | (0.03     | ) |   | $ | (0.14 | ) |
|                                                                                |   |                              |      |   |   |   |   |   |
| Weighted      average shares outstanding:                                           |   |                              |      |   |   |   |   |   |
| Basic and Diluted                                                                   |   |                              | 8,647,539 |   |   |   | 8,644,161 |   |

----

|                                                              |   | Three      Months Ended March 31, |   |
|-------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                              |   | 2008                              |   |   | 2007 |   |
|                                                              |   |                              |   |   |   |   |
| NET      CASH FLOWS PROVIDED BY OPERATING ACTIVITIES              |   | $                                 | 800    |   |   | $ | 716 |   |
|                                                              |   |                              |   |   |   |   |   |   |
| INVESTING      ACTIVITIES – NET                             |   |                              | 1,655  |   |   |   | (24 | ) |
|                                                              |   |                              |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                        |   |                              |   |   |   |   |   |   |
| Net repayments on line of      credit                             |   |                              | (1,706 | ) |   |   | (1,214 | ) |
| Net principal repayments on loan, notes      and capital leases   |   |                              | (1,175 | ) |   |   | (96 | ) |
| Dividends paid on Preferred Series B      Convertible Stock       |   |                              | (63    | ) |   |   | (63 | ) |
| Net cash      flows used in financing activities                  |   |                              | (2,944 | ) |   |   | (1,373 | ) |
|                                                              |   |                              |   |   |   |   |   |   |
| Effect of      exchange rate changes on cash and cash equivalents |   |                              | (1     | ) |   |   | (1 | ) |
|                                                              |   |                              |   |   |   |   |   |   |
| Net decrease      in cash and cash equivalents for the period     |   |                              | (490   | ) |   |   | (682 | ) |
|                                                              |   |                              |   |   |   |   |   |   |
| Cash and cash      equivalents - Beginning of Period              |   |                              | 1,123  |   |   |   | 794 |   |
|                                                              |   |                              |   |   |   |   |   |   |
| Cash and cash      equivalents - End of Period                    |   | $                                 | 633    |   |   | $ | 112 |   |

----

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|                                   |   | Three      Months Ended March 31, |   |
|----------------------------------------|--------|-----------------------------------|--------|
|                                   |   | 2008                              |   |   | 2007 |   |
|                                   |   |                              |   |   |   |   |
| Net income      (loss)                 |   | $                                 | 87     |   |   | $ | (1,034 | ) |
| Foreign      currency translation      |   |                              | (1     | ) |   |   | (1 | ) |
| Total      comprehensive income (loss) |   | $                                 | 86     |   |   | $ | (1,035 | ) |

|                                                  |   | Three      Months Ended March 31, |      |
|-------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                  |   | 2008                              |      |   | 2007 |   |
| Basic and      diluted                                |   |                              |      |   |   |   |
| Net income      (loss)                                |   | $                                 | 87        |   |   | $ | (1,034 | ) |
| Preferred      dividends                              |   |                              | (305      | ) |   |   | (163 | ) |
|                                                  |   | $                                 | (218      | ) |   | $ | (1,197 | ) |
|                                                  |   |                              |      |   |   |   |   |   |
| Weighted      average shares outstanding              |   |                              | 8,647,539 |   |   |   | 8,644,161 |   |
|      Net      loss per share |   | $                                 | (0.03     | ) |   | $ | (0.14 | ) |

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|                |   | March      31, 2008 |   |   | December      31, 2007 |   |
|---------------------|--------|---------------------|--------|--------|------------------------|--------|
|                |   | (Unaudited)         |   |   |                   |   |
|                |   |                |   |   |                   |   |
| Raw      materials  |   | $                   | 2,783  |   |                   | $      | 2,670 |   |
| Work-in-process     |   |                | 988    |   |                   |   | 1,237 |   |
| Finished      goods |   |                | 2,387  |   |                   |   | 1,516 |   |
|                |   | $                   | 6,158  |   |                   | $      | 5,423 |   |

|   ITEM 2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF      OPERATIONS     (In thousands, except shares      and per share amounts) |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM      3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|--------------|----------------------------------------------------------------|

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| 31.1 |   | Certification      by the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
|------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2 |   | Certification      by the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 32   |   | Certification      of Periodic Financial Report by the Chief Executive Officer and Chief      Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |

| Date      Filed       | Item Reported      On                                                              |
|-----------------------|------------------------------------------------------------------------------------|
|                  |                                                                               |
| January 23,      2008 | Item      1.01:  Entry into a Material Definitive  Agreement             |
|                  | Item      2.01:  Completion of Acquisition or Disposition of      Assets |
|                  | Item      8.01:  Other Events                                            |
|                  | Item      9.01:  Financial Statements and Exhibits                       |
| February 8,      2008 | Item      8.01:  Other Events                                            |

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|                                      | TELTRONICS,      INC. |
|-------------------------------------------|-----------------------|
|                                 |                  |   |
| Dated:   May      15, 2008 | By:                   | /s/ EWEN R.      CAMERON                              Ewen R.      CameronPresident      & Chief Executive Officer |
|                                      |                  |   |
| Dated:   May      15, 2008 | By:                   | /s/ RUSSELL R. LEE      III                                Russell R.      Lee IIIVice      President and Chief FinancialOfficer |

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| ExhibitNumber |  Description                                                                                                                                                               |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                            |
|          |                                                                                                                                                                            |
| 31.1*         | Certification      by the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 31.2*         | Certification      by the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                               |
| 32*           | Certification      of Periodic Financial Report by the Chief Executive Officer and Chief      Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |
|          |                                                                                                                                                                            |
| _______       |                                                                                                                                                                            |
| (*)           | Filed as an      Exhibit to this Report on Form 10-Q for the period ended March 31,      2008.                                                                                  |

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