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**U.S.      SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| [                X                ]                              | QUARTERLY                REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934.  |
|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
|                                                             |                                                                                                                                   |
| **For                the Quarterly Period Ended March 31, 2007** |
|                                                             |                                                                                                                                   |
| [    ]                                       | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934. |

**COMMISSION      FILE NUMBER:  0-17893**

| **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 area                code                              |

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**TABLE      OF      CONTENTS**

|                                                             |                                                                                                                                                       | **PAGE** |
|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **PART                I**                                        | **FINANCIAL                INFORMATION**                                                                                                                   |     |
|        ITEM                1. | FINANCIAL                STATEMENTS                                                                                                                        |     |
|                                                             | Condensed                Consolidated Balance Sheets at March 31, 2007(Unaudited)                and December 31, 2006                                     | 1        |
|                                                             | Condensed                Consolidated Statements of Operations (Unaudited)for                the Three                months ended March 31, 2007 and 2006 | 2        |
|                                                             | Condensed                Consolidated Statements of Cash Flows (Unaudited)for                the Three                months ended March 31, 2007 and 2006 | 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                                                                                                      | 7        |
| **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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**PART  I      – FINANCIAL INFORMATION**

**ITEM  1.     FINANCIAL      STATEMENTS**

**TELTRONICS,      INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

*In      thousands,      except shares and per share amounts*

| **ASSETS**                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |   |   |   |   |   |
|                                                                                                             |   | **March                31,** |   |   | **December                31,** |   |
|                                                                                                             |   | **2007** |   |   | **2006** |   |
|                                                                                                             |   | (Unaudited) |   |   |   |   |
| **Current                assets:**                                                                               |   |   |   |   |   |   |
| Cash                and cash                equivalents                                                          |   | $ | 112 |   |   | $ | 794 |   |
| Accounts                receivable, net of allowance                for doubtful accounts                        |   |   | 6,931 |   |   |   | 8,512 |   |
| Inventories,                net                                                                                  |   |   | 5,470 |   |   |   | 5,227 |   |
| Other                current assets                                                                              |   |   | 397 |   |   |   | 543 |   |
| Total                current assets                                                                              |   |   | 12,910 |   |   |   | 15,076 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| **Property                and equipment, net**                                                                   |   |   | 729 |   |   |   | 809 |   |
| **Other                assets**                                                                                  |   |   | 818 |   |   |   | 807 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total                assets                                                                                      |   | $ | 14,457 |   |   | $ | 16,692 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ DEFICIENCY**                                                |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| **Current                liabilities:**                                                                          |   |   |   |   |   |   |   |   |
| Line                of credit                                                                                    |   | $ | 4,181 |   |   | $ | 5,394 |   |
| Current                portion of long-term debt and                capitallease                obligations      |   |   | 821 |   |   |   | 834 |   |
| Accounts                payable                                                                                  |   |   | 4,606 |   |   |   | 4,040 |   |
| Other                current                liabilities                                                          |   |   | 3,714 |   |   |   | 4,010 |   |
| Total                current                liabilities                                                          |   |   | 13,322 |   |   |   | 14,278 |   |
| **Long-term                liabilities:**                                                                        |   |   |   |   |   |   |   |   |
| Deferred                dividends                                                                                |   |   | 1,600 |   |   |   | 1,500 |   |
| Long-term                debt and capital lease                obligations, net ofcurrent                portion |   |   | 2,181 |   |   |   | 2,366 |   |
| Total                long-term                liabilities                                                        |   |   | 3,781 |   |   |   | 3,866 |   |
| **Commitments                and contingencies**                                                                 |   |   |   |   |   |   |   |   |
| **Shareholders'                deficiency:**                                                                     |   |   |   |   |   |   |   |   |
| Capital                stock                                                                                     |   |   | 9 |   |   |   | 9 |   |
| Additional                paid-in                capital                                                         |   |   | 24,711 |   |   |   | 24,707 |   |
| Accumulated                deficit and other                comprehensive loss                                   |   |   | (27,366 | ) |   |   | (26,168 | ) |
| Total                shareholders'                deficiency                                                     |   |   | (2,646 | ) |   |   | (1,452 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total                liabilities and shareholders'                deficiency                                     |   | $ | 14,457 |   |   | $ | 16,692 |   |

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**TELTRONICS,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

*In      thousands,      except shares and per share amounts*

|                                                                                          |   | **Three                Months Ended March 31,** |      |
|-----------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                                                          |   | **2007**                                        |      |   | **2006** |   |
|                                                                                          |   |                                            |      |   |   |   |
| **Net                sales**                                                                  |   |                                            |      |   |   |   |
|         Product                sales and installation |   | $                                               | 6,657     |   |   | $ | 6,910 |   |
| Maintenance                and service                                                        |   |                                            | 2,918     |   |   |   | 3,381 |   |
|                                                                                          |   |                                            | 9,575     |   |   |   | 10,291 |   |
| Cost                of goods                sold                                              |   |                                            | 6,071     |   |   |   | 6,383 |   |
| **Gross                profit**                                                               |   |                                            | 3,504     |   |   |   | 3,908 |   |
| **Operating                expenses:**                                                        |   |                                            |      |   |   |   |   |   |
| General                and                administrative                                      |   |                                            | 1,390     |   |   |   | 1,280 |   |
| Sales                and marketing                                                            |   |                                            | 1,540     |   |   |   | 1,676 |   |
| Research                and development                                                       |   |                                            | 1,140     |   |   |   | 1,083 |   |
| Depreciation                                                                                  |   |                                            | 64        |   |   |   | 119 |   |
|                                                                                          |   |                                            | 4,134     |   |   |   | 4,158 |   |
|                                                                                          |   |                                            |      |   |   |   |   |   |
| Loss                from                operations                                            |   |                                            | (630      | ) |   |   | (250 | ) |
|                                                                                          |   |                                            |      |   |   |   |   |   |
| **Other                income (expense):**                                                    |   |                                            |      |   |   |   |   |   |
| Interest                                                                                      |   |                                            | (351      | ) |   |   | (318 | ) |
| Other                                                                                         |   |                                            | (47       | ) |   |   | 25 |   |
|                                                                                          |   |                                            | (398      | ) |   |   | (293 | ) |
| **Loss                before income taxes**                                                   |   |                                            | (1,028    | ) |   |   | (543 | ) |
| **Income                taxes**                                                               |   |                                            | 6         |   |   |   | 17 |   |
| **Net                loss**                                                                   |   | $                                               | (1,034    | ) |   | $ | (560 | ) |
| **Dividends                on Preferred Series B and C Convertible stock**                    |   |                                            | 163       |   |   |   | 163 |   |
| **Net                loss available to common shareholders**                                  |   | $                                               | (1,197    | ) |   | $ | (723 | ) |
|                                                                                          |   |                                            |      |   |   |   |   |   |
| **Net                loss per share:**                                                        |   |                                            |      |   |   |   |   |   |
| Basic                and Diluted                                                              |   | $                                               | (0.14     | ) |   | $ | (0.08 | ) |
|                                                                                          |   |                                            |      |   |   |   |   |   |
| **Weighted                average shares outstanding:**                                       |   |                                            |      |   |   |   |   |   |
| Basic                and Diluted                                                              |   |                                            | 8,644,161 |   |   |   | 8,636,539 |   |

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**TELTRONICS,      INC. AND SUBSIDIARIES**

**UNAUDITED      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

*In      thousands,      except shares and per share amounts*

|                                                                                           |   | **Three                Months Ended March 31,** |   |
|------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                                           |   | **2007**                                        |   |   | **2006** |   |
|                                                                                           |   |                                            |   |   |   |   |
| **NET                CASH FLOWS PROVIDED BY (USED IN)****OPERATING                ACTIVITIES** |   | $                                               | 716    |   |   | $ | (533 | ) |
|                                                                                           |   |                                            |   |   |   |   |   |   |
| **INVESTING                ACTIVITIES – NET**                                            |   |                                            | (24    | ) |   |   | (48 | ) |
|                                                                                           |   |                                            |   |   |   |   |   |   |
| **FINANCING                ACTIVITIES:**                                                       |   |                                            |   |   |   |   |   |   |
| Net                (repayments) borrowings on line of                credit                    |   |                                            | (1,214 | ) |   |   | 752 |   |
| Net                principle repayments on loan, notes                and capital leases       |   |                                            | (96    | ) |   |   | (104 | ) |
| Dividends                paid on Preferred Series B                Convertible Stock           |   |                                            | (63    | ) |   |   | (59 | ) |
| Net                cash                flows provided by (used in) financing activities        |   |                                            | (1,373 | ) |   |   | 589 |   |
|                                                                                           |   |                                            |   |   |   |   |   |   |
| Effect                of                exchange rate changes on cash                          |   |                                            | (1     | ) |   |   | (10 | ) |
|                                                                                           |   |                                            |   |   |   |   |   |   |
| Net                decrease                in cash and cash equivalents for the period         |   |                                            | (682   | ) |   |   | (2 | ) |
|                                                                                           |   |                                            |   |   |   |   |   |   |
| Cash                and cash                equivalents - Beginning of Period                  |   |                                            | 794    |   |   |   | 1,150 |   |
|                                                                                           |   |                                            |   |   |   |   |   |   |
| Cash                and cash                equivalents - End of Period                        |   | $                                               | 112    |   |   | $ | 1,148 |   |

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**TELTRONICS,      INC. AND SUBSIDIARIES**

**NOTES      TO      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*In      thousands,      except shares and per share amounts*

**(Unaudited)**

**NOTE      1 -      BASIS OF PRESENTATION**

**NOTE      2 -      COMPREHENSIVE LOSS**

|                                        |   | **Three                Months Ended March 31,** |   |
|---------------------------------------------|--------|-------------------------------------------------|--------|
|                                        |   | **2007**                                        |   |   | **2006** |   |
|                                        |   |                                            |   |   |   |   |
| Net                loss                     |   | $                                               | (1,034 | ) |   | $ | (560 | ) |
| Foreign                currency translation |   |                                            | (1     | ) |   |   | (10 | ) |
| Total                comprehensive loss     |   | $                                               | (1,035 | ) |   | $ | (570 | ) |

**NOTE      3 -      NET LOSS PER SHARE**

|                                                            |   | **Three                Months Ended March 31,** |      |
|-----------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                            |   | **2007**                                        |      |   | **2006** |   |
| **Basic                and diluted**                            |   |                                            |      |   |   |   |
| Net                loss                                         |   | $                                               | (1,034    | ) |   | $ | (560 | ) |
| Preferred                dividends                              |   |                                            | (163      | ) |   |   | (163 | ) |
|                                                            |   | $                                               | (1,197    | ) |   | $ | (723 | ) |
|                                                            |   |                                            |      |   |   |   |   |   |
| Weighted                average shares outstanding              |   |                                            | 8,644,161 |   |   |   | 8,636,539 |   |
|      Net                loss per share |   | $                                               | (0.14     | ) |   | $ | (0.08 | ) |

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**NOTE      4 -      INVENTORIES**

|                          |   | **March                31, 2007** |   |   | **December                31, 2006** |   |
|-------------------------------|--------|-----------------------------------|--------|--------|--------------------------------------|--------|
|                          |   | **(Unaudited)**                   |   |   |                                 |   |
|                          |   |                              |   |   |                                 |   |
| Raw                materials  |   | $                                 | 3,773  |   |                                 | $      | 2,883 |   |
| Work-in-process               |   |                              | 985    |   |                                 |   | 1,045 |   |
| Finished                goods |   |                              | 1,854  |   |                                 |   | 1,299 |   |
|                          |   | $                                 | 5,470  |   |                                 | $      | 5,227 |   |

**NOTE        5 –INCOME TAXES**

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

**               RESULTS      OF OPERATIONS     **
*In thousands, except      shares and per share amounts)*

**FORWARD-LOOKING      STATEMENTS**

*References      in      this report to the “Company,” “Teltronics,” “we” or “us” mean Teltronics, Inc.      together with its subsidiaries, except where the context otherwise      requires.  A number of statements contained in this Quarterly Report      on Form 10-Q are forward-looking statements, which are made pursuant to the      safe      harbor provisions of the Private Securities Litigation Reform Act of      1995.  These forward-looking statements can generally be identified as      such because the context of the statement will include words such as we“believe,” “anticipate,” “expect,” or words of similar      import.  Similarly, statements that describe our future plans,      objectives, strategies or goals are also forward-looking      statements.  These forward-looking statements involve a number of      risks and uncertainties that may materially adversely affect the anticipated      results.  Such risks and uncertainties include, but are not limited      to, the timely development and market acceptance of products and technologies,      competitive market conditions, successful integration of acquisitions, the      ability to secure additional sources of financing, the ability to reduce      operating expenses, and other factors described in the Company’s filings with      the Securities and Exchange Commission. Shareholders, potential investors and      other readers are urged to consider these factors carefully in evaluating the      forward-looking statements made herein and are cautioned not to place undue      reliance on such forward-looking statements.  The forward-looking      statements made herein are only made as of the date of this Form 10-Q and we      disclaim any obligation to publicly update such forward-looking statements      to      reflect subsequent events or circumstances.*

**RESULTS      OF OPERATIONS**

**Net      Sales and Gross Profit Margin**

**Operating      Expenses**

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**Other      Income (Expense)**

**LIQUIDITY      AND CAPITAL RESOURCES**

**Seasonality**

**ITEM        3.    **QUANTITATIVE        AND QUALITATIVE DISCLOSURES ABOUT MARKET        RISK****

**ITEM      4.    CONTROLS AND      PROCEDURES**

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**PART  II      – OTHER INFORMATION**

**ITEM      3.    DEFAULTS UPON SENIOR      SECURITIES**

**ITEM      6(a).       EXHIBITS**

| 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. |

**ITEM      6(b).   REPORTS ON FORM 8-K**

| **Date                Filed**                | **Item                Reported On**                                                                                                  |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                         |                                                                                                                                 |
| April                19,                2007 | 2.02                Results                of Operation and Financial Condition9.01                Financial Statements and Exhibits |

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**SIGNATURES**

|                                                | **TELTRONICS,                INC.** |
|-----------------------------------------------------|-------------------------------------|
|                                                |                                |   |
| Dated:   May                14, 2007 | By:                                 | /s/                EWEN                R.                CAMERON                              Ewen                R.                CameronPresident                & Chief Executive Officer |
|                                                |                                |   |
| Dated:   May                14, 2007 | By:                                 | /s/                RUSSELL R. LEE                III                                Russell                R.                Lee IIIVice                President and Chief Financial                Officer |

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**EXHIBIT      INDEX**

| **Exhibit****Number** |  **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,                2007.                                                                                            |

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