| T      | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934.                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                    |
|   | For      the Quarterly Period Ended September 30, 2009                                                                                                                                                  |
|   |
| 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                                                               |
| Registrant's      telephone number, including areacode                            |

| 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 September 30, 2009(Unaudited)      and December 31, 2008                                                | 1      |
|                     |  Condensed      Consolidated Statements of Operations (Unaudited)for the Three      months and Nine months ended September 30, 2009and      2008 | 2      |
|                     |  Condensed      Consolidated Statements of Cash Flows (Unaudited)for the Three      months and Nine months ended September 30, 2009and      2008 | 3      |
|                     |  Notes to      Condensed Consolidated Financial Statements (Unaudited)                                                                           | 4      |
|  ITEM 2.            |  MANAGEMENT’S      DISCUSSION AND ANALYSIS OFFINANCIAL      CONDITION AND RESULTS OF OPERATIONS                                            | 7      |
|  ITEM 3.            |  QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUTMARKET      RISK                                                                             | 9      |
|  ITEM 4.            |  CONTROLS AND      PROCEDURES                                                                                                                    | 9      |
|  PART      II       |  OTHER      INFORMATION                                                                                                                          |
|  ITEM 3.            |  DEFAULTS UPON      SENIOR SECURITIES                                                                                                            | 10     |
|  ITEM 6.            |  EXHIBITS AND      REPORTS ON FORM 8-K                                                                                                           | 10     |
|  SIGNATURES         | 11                                                                                                                                                    |
|  EXHIBIT      INDEX | 12                                                                                                                                                    |
|                     |                                                                                                                                                  |   |

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| ASSETS                                                                  |   |
|-------------------------------------------------------------------------|--------|
|                                                                    |   |   |   |   |   |   |
|                                                                    |   | September      30, |   |   | December      31, |   |
|                                                                    |   | 2009 |   |   | 2008 |   |
|                                                                    |   | (Unaudited) |   |   |   |   |
| Current      assets:                                                    |   |   |   |   |   |   |
| Cash and cash    equivalents                                            |   | $ | 1,309 |   |   | $ | 548 |   |
| Accounts receivable,net                                                 |   |   | 8,397 |   |   |   | 5,366 |   |
| Inventories, net                                                        |   |   | 4,711 |   |   |   | 5,085 |   |
| Prepaid expenses and other current      assets                          |   |   | 400 |   |   |   | 622 |   |
| Total current assets                                                    |   |   | 14,817 |   |   |   | 11,621 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                        |   |   | 755 |   |   |   | 748 |   |
| Other      assets                                                       |   |   | 365 |   |   |   | 275 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $ | 15,937 |   |   | $ | 12,644 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ DEFICIENCY                     |
|                                                                    |   |   |   |   |   |   |   |   |
| Current      liabilities:                                               |   |   |   |   |   |   |   |   |
| Line of credit                                                          |   | $ | 5,096 |   |   | $ | 4,291 |   |
| Current portion of long-term debt and      capitallease obligations     |   |   | 1,228 |   |   |   | 1,440 |   |
| Accounts payable                                                        |   |   | 5,263 |   |   |   | 6,954 |   |
| Accrued expenses and other current      liabilities                     |   |   | 3,966 |   |   |   | 3,871 |   |
| Total current liabilities                                               |   |   | 15,553 |   |   |   | 16,556 |   |
| Long-term      liabilities:                                             |   |   |   |   |   |   |   |   |
| Deferred dividends                                                      |   |   | 3,600 |   |   |   | 3,000 |   |
| Long-term debt and capital lease      obligationsnet of current portion |   |   | 1,335 |   |   |   | 2,214 |   |
| Total long-term    liabilities                                          |   |   | 4,935 |   |   |   | 5,214 |   |
|                                                                    |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                      |   |   |   |   |   |   |   |   |
| Shareholders'      deficiency:                                          |   |   |   |   |   |   |   |   |
| Capital stock                                                           |   |   | 9 |   |   |   | 9 |   |
| Additional paid-in    capital                                           |   |   | 24,730 |   |   |   | 24,725 |   |
| Accumulated deficit and other      comprehensive loss                   |   |   | (29,290 | ) |   |   | (33,860 | ) |
| Total shareholders'      deficiency                                     |   |   | (4,551 | ) |   |   | (9,126 | ) |
|                                                                    |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders'      deficiency                     |   | $ | 15,937 |   |   | $ | 12,644 |   |

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|                                                             |   | Three      MonthsEnded      September 30, |       |   | Nine      MonthsEnded      September 30, |   |
|------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|------------------------------------------|--------|
|                                                             |   | 2009                                      |       |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |
| Net      sales                                                   |   |                                      |       |   |                                     |   |   |   |   |   |   |   |
| Product sales and      installation                              |   | $                                         | 11,513     |   |                                     | $      | 5,097 |   |   | $ | 27,603 |   |   | $ | 17,656 |   |
| Maintenance and service                                          |   |                                      | 2,692      |   |                                     |   | 2,999 |   |   |   | 7,994 |   |   |   | 8,528 |   |
|                                                             |   |                                      | 14,205     |   |                                     |   | 8,096 |   |   |   | 35,597 |   |   |   | 26,184 |   |
| Cost of goods      sold                                          |   |                                      | 8,367      |   |                                     |   | 4,954 |   |   |   | 21,209 |   |   |   | 16,934 |   |
| Gross      profit                                                |   |                                      | 5,838      |   |                                     |   | 3,142 |   |   |   | 14,388 |   |   |   | 9,250 |   |
| Operating      expenses:                                         |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| General andadministrative                                        |   |                                      | 1,270      |   |                                     |   | 1,075 |   |   |   | 3,562 |   |   |   | 4,617 |   |
| Sales and marketing                                              |   |                                      | 839        |   |                                     |   | 798 |   |   |   | 2,184 |   |   |   | 3,088 |   |
| Research and development                                         |   |                                      | 752        |   |                                     |   | 794 |   |   |   | 2,096 |   |   |   | 3,043 |   |
| Depreciation and    amortization                                 |   |                                      | 38         |   |                                     |   | 92 |   |   |   | 144 |   |   |   | 440 |   |
|                                                             |   |                                      | 2,899      |   |                                     |   | 2,759 |   |   |   | 7,986 |   |   |   | 11,188 |   |
|                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss)      from operations                               |   |                                      | 2,939      |   |                                     |   | 383 |   |   |   | 6,402 |   |   |   | (1,938 | ) |
|                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other      income (expense):                                     |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                         |   |                                      | (339       | )      |                                     |   | (299 | ) |   |   | (1,118 | ) |   |   | (924 | ) |
| Other                                                            |   |                                      | (14        | )      |                                     |   | (3 | ) |   |   | 13 |   |   |   | 1,406 |   |
| Minority interest income                                         |   |                                      | ---        |   |                                     |   | --- |   |   |   | --- |   |   |   | 38 |   |
|                                                             |   |                                      | (353       | )      |                                     |   | (302 | ) |   |   | (1,105 | ) |   |   | 520 |   |
| Income      (loss) before income taxes                           |   |                                      | 2,586      |   |                                     |   | 81 |   |   |   | 5,297 |   |   |   | (1,418 | ) |
| Income      taxes                                                |   |                                      | 5          |   |                                     |   | 6 |   |   |   | 17 |   |   |   | 16 |   |
| Net      income (loss)                                           |   |                                      | 2,581      |   |                                     |   | 75 |   |   |   | 5,280 |   |   |   | (1,434 | ) |
| Dividends      on Preferred Series Band C Convertible      stock |   |                                      | 263        |   |                                     |   | 263 |   |   |   | 791 |   |   |   | 832 |   |
| Net      income (loss) available tocommon    shareholders        |   | $                                         | 2,318      |   |                                     | $      | (188 | ) |   | $ | 4,489 |   |   | $ | (2,266 | ) |
|                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) percommon share:                          |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                            |   | $                                         | 0.27       |   |                                     | $      | (0.02 | ) |   | $ | 0.52 |   |   | $ | (0.26 | ) |
| Diluted                                                          |   | $                                         | 0.23       |   |                                     | $      | (0.02 | ) |   | $ | 0.48 |   |   | $ | (0.26 | ) |
|                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common sharesoutstanding:                  |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                            |   |                                      | 8,648,361  |   |                                     |   | 8,647,539 |   |   |   | 8,647,810 |   |   |   | 8,647,539 |   |
| Diluted                                                          |   |                                      | 11,230,761 |   |                                     |   | 8,647,539 |   |   |   | 11,044,528 |   |   |   | 8,647,539 |   |
|                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                     |   | Nine      Months EndedSeptember      30, |   |
|--------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                     |   | 2009                                     |   |   | 2008 |   |
|                                                                     |   |                                     |   |   |   |   |
| NET      CASH FLOWS PROVIDED BY OPERATING ACTIVITIES                     |   | $                                        | 1,334  |   |   | $ | 1,468 |   |
|                                                                     |   |                                     |   |   |   |   |   |   |
| INVESTING      ACTIVITIES – NET                                    |   |                                     | (180   | ) |   |   | 1,524 |   |
|                                                                     |   |                                     |   |   |   |   |   |   |
| FINANCING      ACTIVITIES:                                               |   |                                     |   |   |   |   |   |   |
| Net borrowings (repayments) on line of      credit                       |   |                                     | 805    |   |   |   | (1,238 | ) |
| Net principal repayments on loan, notes      and capital leases          |   |                                     | (887   | ) |   |   | (1,646 | ) |
| Repayment of loan from related      party                                |   |                                     | (203   | ) |   |   | (177 | ) |
| Dividends paid on Preferred Series B      Convertible Stock              |   |                                     | (189   | ) |   |   | (189 | ) |
| Net cash      flows provided by (used in) financing activities           |   |                                     | (474   | ) |   |   | (3,250 | ) |
|                                                                     |   |                                     |   |   |   |   |   |   |
| Effect of      exchange rate changes on cash and cash equivalents        |   |                                     | 81     |   |   |   | (80 | ) |
|                                                                     |   |                                     |   |   |   |   |   |   |
| Net increase      (decrease) in cash and cash equivalents for the period |   |                                     | 761    |   |   |   | (338 | ) |
|                                                                     |   |                                     |   |   |   |   |   |   |
| Cash and cash      equivalents - Beginning of Period                     |   |                                     | 548    |   |   |   | 1,123 |   |
|                                                                     |   |                                     |   |   |   |   |   |   |
| Cash and cash      equivalents – End of Period                     |   | $                                        | 1,309  |   |   | $ | 785 |   |
|                                                                     |   |                                     |   |   |   |   |   |   |

----

----

|                                   |   | Three      Months EndedSeptember      30, |   |   | Nine      Months EndedSeptember      30, |   |
|----------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                                   |   | 2009                                      |   |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Net income      (loss)                 |   | $                                         | 2,581  |   |                                     | $      | 75 |   |   | $ | 5,280 |   |   | $ | (1,434 | ) |
| Foreign      currency translation      |   |                                      | (55    | )      |                                     |   | (71 | ) |   |   | 81 |   |   |   | (80 | ) |
| Total      comprehensive income (loss) |   | $                                         | 2,526  |   |                                     | $      | 4 |   |   | $ | 5,361 |   |   | $ | (1,514 | ) |
|                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |

|                                           |   | Three      Months EndedSeptember      30, |       |   | Nine      Months EndedSeptember      30, |   |
|------------------------------------------------|--------|-------------------------------------------|------------|--------|------------------------------------------|--------|
| Net      income (loss) per share               |   | 2009                                      |       |   | 2008                                     |   |   | 2009 |   |   | 2008 |   |
|                                           |   |                                      |       |   |                                     |   |   |   |   |   |   |   |
| Basic                                          |   |                                      |       |   |                                     |   |   |   |   |   |   |   |
| Net income      (loss)                         |   | $                                         | 2,581      |   |                                     | $      | 75 |   |   | $ | 5,280 |   |   | $ | (1,434 | ) |
| Preferred      dividends                       |   |                                      | (263       | )      |                                     |   | (263 | ) |   |   | (791 | ) |   |   | (832 | ) |
|                                           |   | $                                         | 2,318      |   |                                     | $      | (188 | ) |   | $ | 4,489 |   |   | $ | (2,266 | ) |
|                                           |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common sharesOutstanding |   |                                      | 8,648,361  |   |                                     |   | 8,647,539 |   |   |   | 8,647,810 |   |   |   | 8,647,539 |   |
| Net income (loss) per common      share        |   | $                                         | 0.27       |   |                                     | $      | (0.02 | ) |   | $ | 0.52 |   |   | $ | (0.26 | ) |
|                                           |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                        |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income      (loss)                         |   | $                                         | 2,581      |   |                                     | $      | 75 |   |   | $ | 5,280 |   |   | $ | (1,434 | ) |
| Preferred      dividends                       |   |                                      | ---        |   |                                     |   | (263 | ) |   |   | --- |   |   |   | (832 | ) |
|                                           |   | $                                         | 2,581      |   |                                     | $      | (188 | ) |   | $ | 5,280 |   |   | $ | (2,266 | ) |
|                                           |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common sharesOutstanding |   |                                      | 11,230,761 |   |                                     |   | 8,647,539 |   |   |   | 11,044,528 |   |   |   | 8,647,539 |   |
| Net income (loss) per common      share        |   | $                                         | 0.23       |   |                                     | $      | (0.02 | ) |   | $ | 0.48 |   |   | $ | (0.26 | ) |

----

|                |   | September      30, 2009 |   |   | December      31, 2008 |   |
|---------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                |   | (Unaudited)             |   |   |                   |   |
|                |   |                    |   |   |                   |   |
| Raw      materials  |   | $                       | 2,525  |   |                   | $      | 2,697 |   |
| Work-in-process     |   |                    | 1,216  |   |                   |   | 841 |   |
| Finished      goods |   |                    | 970    |   |                   |   | 1,547 |   |
|                |   | $                       | 4,711  |   |                   | $      | 5,085 |   |

| NOTE      6 - LINE OF CREDIT AND LONG-TERMDEBT |
|-----------------------------------------------------|

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

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----

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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. |

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|                                           | TELTRONICS,      INC. |
|------------------------------------------------|-----------------------|
|                                           |                  |   |
| Dated:   November      10, 2009 | By:                   |   /s/ Ewen R.      Cameron             Ewen R.      CameronPresident      & Chief Executive Officer |
|                                           |                  |   |
| Dated:   November      10, 2009 | By:                   |   /s/ Angela L.      Marvin               |
|                                           |                  | Angela L.      MarvinVice      President Finance and Chief FinancialOfficer |

----

| 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 September 30,      2009.                                                                              |

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