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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 June 30, 2010                                                                                                                                        |
|   |
| 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) |
|                                                           |
| 2511 Corporate Way, Palmetto, Florida   34221   |
| (Address of principal executive offices including zip code)    |
|                                                           |
| (941) 753-5000                                                 |
| Registrant's telephone number, including area code             |

| Large accelerated filer                       | £ | Accelerated filer         | £ |
|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer                         | £ | Smaller reporting company | T      |
| (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 June 30, 2010(Unaudited) and December 31, 2009                              | 1      |
|                                                                 | Condensed Consolidated Statements of Operations (Unaudited)for the Three and Six months ended June 30, 2010 and 2009 | 2      |
|                                                                 | Condensed Consolidated Statements of Cash Flows (Unaudited)for the Six months ended June 30, 2010 and 2009           | 3      |
|                                                                 | Notes to Condensed Consolidated Financial Statements (Unaudited)                                                     | 4      |
|            ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS                           | 8      |
|            ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUTMARKET RISK                                                            | 11     |
|            ITEM 4. | CONTROLS AND PROCEDURES                                                                                              | 11     |
| PART II                                                              | OTHER INFORMATION                                                                                                    |
|            ITEM 3. | DEFAULTS UPON SENIOR SECURITIES                                                                                      | 12     |
|            ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K                                                                                     | 12     |
| SIGNATURES                                                           | 13                                                                                                                   |
| EXHIBIT INDEX                                                        | 14                                                                                                                   |
|                                                                 |                                                                                                                 |   |

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| ASSETS                                                              |   |
|---------------------------------------------------------------------|--------|
|                                                                |   |   |   |   |   |   |
|                                                                |   | June 30, |   |   | December 31, |   |
|                                                                |   | 2010 |   |   | 2009 |   |
|                                                                |   | (Unaudited) |   |   |   |   |
| Current assets:                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                           |   | $ | 629 |   |   | $ | 339 |   |
| Accounts receivable, net                                            |   |   | 3,193 |   |   |   | 4,856 |   |
| Inventories, net                                                    |   |   | 4,659 |   |   |   | 4,823 |   |
| Prepaid expenses and other current assets                           |   |   | 510 |   |   |   | 406 |   |
| Total current assets                                                |   |   | 8,991 |   |   |   | 10,424 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Property and equipment, net                                         |   |   | 807 |   |   |   | 751 |   |
| Other assets                                                        |   |   | 344 |   |   |   | 368 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Total assets                                                        |   | $ | 10,142 |   |   | $ | 11,543 |   |
|                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ DEFICIENCY                      |   |
|                                                                |   |   |   |   |   |   |   |   |
| Current liabilities:                                                |   |   |   |   |   |   |   |   |
| Line of credit                                                      |   | $ | 2,651 |   |   | $ | 3,124 |   |
| Current portion of long-term debt and capital lease obligations     |   |   | 1,620 |   |   |   | 1,220 |   |
| Accounts payable                                                    |   |   | 4,607 |   |   |   | 3,316 |   |
| Accrued expenses and other current liabilities                      |   |   | 4,930 |   |   |   | 3,200 |   |
| Deferred revenue                                                    |   |   | 618 |   |   |   | 526 |   |
| Total current liabilities                                           |   |   | 14,426 |   |   |   | 11,386 |   |
| Long-term liabilities:                                              |   |   |   |   |   |   |   |   |
| Deferred dividends                                                  |   |   | 4,200 |   |   |   | 3,800 |   |
| Long-term debt and capital lease obligations, net ofcurrent portion |   |   | 43 |   |   |   | 1,029 |   |
| Total long-term liabilities                                         |   |   | 4,243 |   |   |   | 4,829 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                       |   |   |   |   |   |   |   |   |
| Shareholders' deficiency:                                           |   |   |   |   |   |   |   |   |
| Capital stock                                                       |   |   | 9 |   |   |   | 9 |   |
| Additional paid-in capital                                          |   |   | 24,742 |   |   |   | 24,735 |   |
| Other comprehensive loss                                            |   |   | (171 | ) |   |   | (169 | ) |
| Accumulated deficit                                                 |   |   | (33,107 | ) |   |   | (29,247 | ) |
| Total shareholders' deficiency                                      |   |   | (8,527 | ) |   |   | (4,672 | ) |
| Total liabilities and shareholders' deficiency                      |   | $ | 10,142 |   |   | $ | 11,543 |   |

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|                                                   |   | Three MonthsEnded June 30, |      |   | Six MonthsEnded June 30, |   |
|--------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                   |   | 2010                       |      |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Net sales                                              |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Product sales and installation                         |   | $                          | 3,762     |   |                     | $      | 9,032 |   |   | $ | 7,463 |   |   | $ | 16,090 |   |
| Maintenance and service                                |   |                       | 2,411     |   |                     |   | 2,710 |   |   |   | 4,933 |   |   |   | 5,301 |   |
|                                                   |   |                       | 6,173     |   |                     |   | 11,742 |   |   |   | 12,396 |   |   |   | 21,391 |   |
| Cost of goods sold                                     |   |                       | 4,386     |   |                     |   | 6,673 |   |   |   | 7,740 |   |   |   | 12,842 |   |
| Gross profit                                           |   |                       | 1,787     |   |                     |   | 5,069 |   |   |   | 4,656 |   |   |   | 8,549 |   |
| Operating expenses:                                    |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                             |   |                       | 1,314     |   |                     |   | 1,114 |   |   |   | 2,831 |   |   |   | 2,292 |   |
| Sales and marketing                                    |   |                       | 579       |   |                     |   | 744 |   |   |   | 1,260 |   |   |   | 1,345 |   |
| Research and development                               |   |                       | 703       |   |                     |   | 609 |   |   |   | 1,444 |   |   |   | 1,344 |   |
| Depreciation and amortization                          |   |                       | 57        |   |                     |   | 53 |   |   |   | 115 |   |   |   | 106 |   |
|                                                   |   |                       | 2,653     |   |                     |   | 2,520 |   |   |   | 5,650 |   |   |   | 5,087 |   |
|                                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                          |   |                       | (866      | )      |                     |   | 2,549 |   |   |   | (994 | ) |   |   | 3,462 |   |
|                                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                               |   |                       | (275      | )      |                     |   | (371 | ) |   |   | (527 | ) |   |   | (779 | ) |
| Other                                                  |   |                       | (1,820    | )      |                     |   | (3 | ) |   |   | (1,801 | ) |   |   | 27 |   |
|                                                   |   |                       | (2,095    | )      |                     |   | (374 | ) |   |   | (2,328 | ) |   |   | (752 | ) |
| Income (loss) before income taxes                      |   |                       | (2,961    | )      |                     |   | 2,175 |   |   |   | (3,322 | ) |   |   | 2,710 |   |
| Income taxes                                           |   |                       | 6         |   |                     |   | 6 |   |   |   | 12 |   |   |   | 12 |   |
| Net income (loss)                                      |   |                       | (2,967    | )      |                     |   | 2,169 |   |   |   | (3,334 | ) |   |   | 2,698 |   |
| Dividends on Preferred Series Band C Convertible stock |   |                       | 263       |   |                     |   | 263 |   |   |   | 526 |   |   |   | 526 |   |
| Net income (loss) available tocommon shareholders      |   | $                          | (3,230    | )      |                     | $      | 1,906 |   |   | $ | (3,860 | ) |   | $ | 2,172 |   |
|                                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) percommon share:                     |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                  |   | $                          | (0.37     | )      |                     | $      | 0.22 |   |   | $ | (0.44 | ) |   | $ | 0.25 |   |
| Diluted                                                |   | $                          | (0.37     | )      |                     | $      | 0.20 |   |   | $ | (0.44 | ) |   | $ | 0.25 |   |
|                                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common sharesoutstanding:             |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                  |   |                       | 8,720,539 |   |                     |   | 8,647,539 |   |   |   | 8,713,931 |   |   |   | 8,647,539 |   |
| Diluted                                                |   |                       | 8,720,539 |   |                     |   | 10,925,491 |   |   |   | 8,713,931 |   |   |   | 9,368,968 |   |
|                                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                          |   | Six Months Ended June 30, |   |
|-------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                          |   | 2010                      |   |   | 2009 |   |
|                                                                          |   |                      |   |   |   |   |
| NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES                               |   | $                         | 1,657  |   |   | $ | 161 |   |
|                                                                          |   |                      |   |   |   |   |   |   |
| INVESTING ACTIVITIES – ACQUISITION OF PROPERTY  AND EQUIPMENT |   |                      | (142   | ) |   |   | (4 | ) |
|                                                                          |   |                      |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                         |   |                      |   |   |   |   |   |   |
| Net borrowings (repayments) on line of credit                                 |   |                      | (473   | ) |   |   | 1,024 |   |
| Net principal repayments on loan, notes and capital leases                    |   |                      | (628   | ) |   |   | (601 | ) |
| Net proceeds from exercised options                                           |   |                      | 4      |   |   |   | --- |   |
| Dividends paid on Preferred Series B Convertible stock                        |   |                      | (126   | ) |   |   | (126 | ) |
| Net cash flows provided by (used in) financing activities                     |   |                      | (1,223 | ) |   |   | 297 |   |
|                                                                          |   |                      |   |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                  |   |                      | (2     | ) |   |   | 138 |   |
|                                                                          |   |                      |   |   |   |   |   |   |
| Net increase in cash and cash equivalents for the period                 |   |                      | 290    |   |   |   | 592 |   |
|                                                                          |   |                      |   |   |   |   |   |   |
| Cash and cash equivalents - Beginning of Period                               |   |                      | 339    |   |   |   | 548 |   |
|                                                                          |   |                      |   |   |   |   |   |   |
| Cash and cash equivalents – End of Period                               |   | $                         | 629    |   |   | $ | 1,140 |   |
|                                                                          |   |                      |   |   |   |   |   |   |

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|                              |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-----------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                              |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                              |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net income (loss)                 |   | $                          | (2,967 | )      |                     | $      | 2,169 |   |   | $ | (3,334 | ) |   | $ | 2,698 |   |
| Foreign currency translation      |   |                       | 8      |   |                     |   | 150 |   |   |   | (2 | ) |   |   | 136 |   |
| Total comprehensive income (loss) |   | $                          | (2,959 | )      |                     | $      | 2,319 |   |   | $ | (3,336 | ) |   | $ | 2,834 |   |
|                              |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

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|                                      |   | Three Months EndedJune 30, |      |   | Six Months EndedJune 30, |   |
|-------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
| Net income (loss) per share               |   | 2010                       |      |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                      |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Basic                                     |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Net income (loss)                         |   | $                          | (2,967    | )      |                     | $      | 2,169 |   |   | $ | (3,334 | ) |   | $ | 2,698 |   |
| Preferred dividends                       |   |                       | (263      | )      |                     |   | (263 | ) |   |   | (526 | ) |   |   | (526 | ) |
|                                      |   | $                          | (3,230    | )      |                     | $      | 1,906 |   |   | $ | (3,860 | ) |   | $ | 2,172 |   |
|                                      |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common sharesOutstanding |   |                       | 8,720,539 |   |                     |   | 8,647,539 |   |   |   | 8,713,931 |   |   |   | 8,647,539 |   |
| Net income (loss) per common share        |   | $                          | (0.37     | )      |                     | $      | 0.22 |   |   | $ | (0.44 | ) |   | $ | 0.25 |   |
|                                      |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                   |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                         |   | $                          | (2,967    | )      |                     | $      | 2,169 |   |   | $ | (3,334 | ) |   | $ | 2,698 |   |
| Preferred dividends                       |   |                       | (263      | )      |                     |   | --- |   |   |   | (526 | ) |   |   | (400 | ) |
|                                      |   | $                          | (3,230    | )      |                     | $      | 2,169 |   |   | $ | (3,860 | ) |   | $ | 2,298 |   |
|                                      |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common sharesOutstanding |   |                       | 8,720,539 |   |                     |   | 10,925,491 |   |   |   | 8,713,931 |   |   |   | 9,368,968 |   |
| Net income (loss) per common share        |   | $                          | (0.37     | )      |                     | $      | 0.20 |   |   | $ | (0.44 | ) |   | $ | 0.25 |   |

|            |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-----------------|--------|---------------|--------|--------|-------------------|--------|
|            |   | (Unaudited)   |   |   |              |   |
|            |   |          |   |   |              |   |
| Raw materials   |   | $             | 2,375  |   |              | $      | 2,566 |   |
| Work-in-process |   |          | 323    |   |              |   | 1,099 |   |
| Finished goods  |   |          | 1,961  |   |              |   | 1,158 |   |
|            |   | $             | 4,659  |   |              | $      | 4,823 |   |

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| 10   |   | Amendment Number Eight to Credit Agreement by and among Wells Fargo Foothill, Inc. and Teltronics, Inc. dated August 13, 2010.                                   |
|------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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. |

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|                                    | TELTRONICS, INC. |
|-----------------------------------------|------------------|
|                                    |             |   |
| Dated:   August 16, 2010 | By:              | /s/ Ewen R. Cameron          Ewen R. CameronPresident & Chief Executive Officer |
|                                    |             |   |
| Dated:   August 16, 2010 | By:              | /s/ Angela L. Marvin             |
|                                    |             | Angela L. MarvinVice President Finance and Chief Financial Officer |

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| ExhibitNumber |  Description                                                                                                                                                |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                             |
| 10*           | Amendment Number Eight to Credit Agreement by and among Wells Fargo Foothill, Inc. and Teltronics, Inc. dated August 13, 2010.                                   |
| 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 June 30, 2010.                                                                              |

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