| T      | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.                                                                                            |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                |
|   | For the Quarterly Period Ended September 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 September 30, 2010(Unaudited) and December 31, 2009                                     | 1      |
|                                  |  Condensed Consolidated Statements of Operations (Unaudited)for the Three and Nine months ended September 30, 2010 and 2009 | 2      |
|                                  |  Condensed Consolidated Statements of Cash Flows (Unaudited)for the Nine months ended September 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                                                              |   |
|---------------------------------------------------------------------|--------|
|                                                                |   |   |   |   |   |   |
|                                                                |   | September 30, |   |   | December 31, |   |
|                                                                |   | 2010 |   |   | 2009 |   |
|                                                                |   | (Unaudited) |   |   |   |   |
| Current assets:                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                           |   | $ | 68 |   |   | $ | 339 |   |
| Accounts receivable, net                                            |   |   | 4,432 |   |   |   | 4,856 |   |
| Inventories, net                                                    |   |   | 4,150 |   |   |   | 4,823 |   |
| Prepaid expenses and other current assets                           |   |   | 449 |   |   |   | 406 |   |
| Total current assets                                                |   |   | 9,099 |   |   |   | 10,424 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Property and equipment, net                                         |   |   | 748 |   |   |   | 751 |   |
| Other assets                                                        |   |   | 407 |   |   |   | 368 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Total assets                                                        |   | $ | 10,254 |   |   | $ | 11,543 |   |
|                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ DEFICIENCY                      |   |
|                                                                |   |   |   |   |   |   |   |   |
| Current liabilities:                                                |   |   |   |   |   |   |   |   |
| Line of credit                                                      |   | $ | 3,706 |   |   | $ | 3,124 |   |
| Current portion of long-term debt and capitallease obligations      |   |   | 1,288 |   |   |   | 1,220 |   |
| Accounts payable                                                    |   |   | 4,661 |   |   |   | 3,316 |   |
| Accrued expenses and other current liabilities                      |   |   | 4,448 |   |   |   | 3,200 |   |
| Deferred revenue                                                    |   |   | 598 |   |   |   | 526 |   |
| Total current liabilities                                           |   |   | 14,701 |   |   |   | 11,386 |   |
| Long-term liabilities:                                              |   |   |   |   |   |   |   |   |
| Deferred dividends                                                  |   |   | 4,400 |   |   |   | 3,800 |   |
| Long-term debt and capital lease obligations, net ofcurrent portion |   |   | 36 |   |   |   | 1,029 |   |
| Total long-term liabilities                                         |   |   | 4,436 |   |   |   | 4,829 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                       |   |   |   |   |   |   |   |   |
| Shareholders' deficiency:                                           |   |   |   |   |   |   |   |   |
| Capital stock                                                       |   |   | 9 |   |   |   | 9 |   |
| Additional paid-in capital                                          |   |   | 24,745 |   |   |   | 24,735 |   |
| Accumulated deficit and other comprehensive loss                    |   |   | (33,637 | ) |   |   | (29,416 | ) |
| Total shareholders' deficiency                                      |   |   | (8,883 | ) |   |   | (4,672 | ) |
| Total liabilities and shareholders' deficiency                      |   | $ | 10,254 |   |   | $ | 11,543 |   |

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|                                                   |   | Three MonthsEnded September 30, |      |   | Nine MonthsEnded September 30, |   |
|--------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                                   |   | 2010                            |      |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Net sales                                              |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Product sales and installation                         |   | $                               | 4,591     |   |                           | $      | 11,513 |   |   | $ | 12,054 |   |   | $ | 27,603 |   |
| Maintenance and service                                |   |                            | 3,371     |   |                           |   | 2,692 |   |   |   | 8,304 |   |   |   | 7,994 |   |
|                                                   |   |                            | 7,962     |   |                           |   | 14,205 |   |   |   | 20,358 |   |   |   | 35,597 |   |
| Cost of goods sold                                     |   |                            | 5,084     |   |                           |   | 8,367 |   |   |   | 12,824 |   |   |   | 21,209 |   |
| Gross profit                                           |   |                            | 2,878     |   |                           |   | 5,838 |   |   |   | 7,534 |   |   |   | 14,388 |   |
| Operating expenses:                                    |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                             |   |                            | 1,469     |   |                           |   | 1,270 |   |   |   | 4,300 |   |   |   | 3,562 |   |
| Sales and marketing                                    |   |                            | 498       |   |                           |   | 839 |   |   |   | 1,758 |   |   |   | 2,184 |   |
| Research and development                               |   |                            | 672       |   |                           |   | 752 |   |   |   | 2,116 |   |   |   | 2,096 |   |
| Depreciation and amortization                          |   |                            | 57        |   |                           |   | 38 |   |   |   | 172 |   |   |   | 144 |   |
|                                                   |   |                            | 2,696     |   |                           |   | 2,899 |   |   |   | 8,346 |   |   |   | 7,986 |   |
|                                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                          |   |                            | 182       |   |                           |   | 2,939 |   |   |   | (812 | ) |   |   | 6,402 |   |
|                                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                               |   |                            | (310      | )      |                           |   | (339 | ) |   |   | (837 | ) |   |   | (1,118 | ) |
| Other                                                  |   |                            | 41        |   |                           |   | (14 | ) |   |   | (1,760 | ) |   |   | 13 |   |
|                                                   |   |                            | (269      | )      |                           |   | (353 | ) |   |   | (2,597 | ) |   |   | (1,105 | ) |
| Income (loss) before income taxes                      |   |                            | (87       | )      |                           |   | 2,586 |   |   |   | (3,409 | ) |   |   | 5,297 |   |
| Income taxes                                           |   |                            | 5         |   |                           |   | 5 |   |   |   | 17 |   |   |   | 17 |   |
| Net income (loss)                                      |   |                            | (92       | )      |                           |   | 2,581 |   |   |   | (3,426 | ) |   |   | 5,280 |   |
| Dividends on Preferred Series Band C Convertible stock |   |                            | 263       |   |                           |   | 263 |   |   |   | 789 |   |   |   | 791 |   |
| Net income (loss) available tocommon shareholders      |   | $                               | (355      | )      |                           | $      | 2,318 |   |   | $ | (4,215 | ) |   | $ | 4,489 |   |
|                                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) percommon share:                     |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                  |   | $                               | (0.04     | )      |                           | $      | 0.27 |   |   | $ | (0.48 | ) |   | $ | 0.52 |   |
| Diluted                                                |   | $                               | (0.04     | )      |                           | $      | 0.23 |   |   | $ | (0.48 | ) |   | $ | 0.48 |   |
|                                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common sharesoutstanding:             |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                  |   |                            | 8,727,428 |   |                           |   | 8,648,361 |   |   |   | 8,718,429 |   |   |   | 8,647,810 |   |
| Diluted                                                |   |                            | 8,727,428 |   |                           |   | 11,230,761 |   |   |   | 8,718,429 |   |   |   | 11,044,528 |   |
|                                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                |   | Nine Months EndedSeptember 30, |   |
|-------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                |   | 2010                           |   |   | 2009 |   |
|                                                                                |   |                           |   |   |   |   |
| NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES                                     |   | $                              | 452    |   |   | $ | 1,334 |   |
|                                                                                |   |                           |   |   |   |   |   |   |
| INVESTING ACTIVITIES – NET                                                    |   |                           | (147   | ) |   |   | (180 | ) |
|                                                                                |   |                           |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                               |   |                           |   |   |   |   |   |   |
| Net borrowings on line of credit                                                    |   |                           | 582    |   |   |   | 805 |   |
| Net principal repayments on current and long-term debt and capitallease obligations |   |                           | (967   | ) |   |   | (887 | ) |
| Repayment of loan from related party                                                |   |                           | ---    |   |   |   | (203 | ) |
| Net proceeds from exercised options                                                 |   |                           | 4      |   |   |   | --- |   |
| Dividends paid on Preferred Series B Convertible stock                              |   |                           | (189   | ) |   |   | (189 | ) |
| Net cash flows used in financing activities                                         |   |                           | (570   | ) |   |   | (474 | ) |
|                                                                                |   |                           |   |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                        |   |                           | (6     | ) |   |   | 81 |   |
|                                                                                |   |                           |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents for the period                 |   |                           | (271   | ) |   |   | 761 |   |
|                                                                                |   |                           |   |   |   |   |   |   |
| Cash and cash equivalents - Beginning of Period                                     |   |                           | 339    |   |   |   | 548 |   |
|                                                                                |   |                           |   |   |   |   |   |   |
| Cash and cash equivalents – End of Period                                     |   | $                              | 68     |   |   | $ | 1,309 |   |
|                                                                                |   |                           |   |   |   |   |   |   |

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|                              |   | Three Months EndedSeptember 30, |   |   | Nine Months EndedSeptember 30, |   |
|-----------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                              |   | 2010                            |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                              |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Net income (loss)                 |   | $                               | (92    | )      |                           | $      | 2,581 |   |   | $ | (3,426 | ) |   | $ | 5,280 |   |
| Foreign currency translation      |   |                            | (4     | )      |                           |   | (55 | ) |   |   | (6 | ) |   |   | 81 |   |
| Total comprehensive income (loss) |   | $                               | (96    | )      |                           | $      | 2,526 |   |   | $ | (3,432 | ) |   | $ | 5,361 |   |
|                              |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |

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|                                      |   | Three Months EndedSeptember 30, |      |   | Nine Months EndedSeptember 30, |   |
|-------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
| Net income (loss) per share               |   | 2010                            |      |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Basic                                     |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Net income (loss)                         |   | $                               | (92       | )      |                           | $      | 2,581 |   |   | $ | (3,426 | ) |   | $ | 5,280 |   |
| Preferred dividends                       |   |                            | (263      | )      |                           |   | (263 | ) |   |   | (789 | ) |   |   | (791 | ) |
|                                      |   | $                               | (355      | )      |                           | $      | 2,318 |   |   | $ | (4,215 | ) |   | $ | 4,489 |   |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common sharesOutstanding |   |                            | 8,727,428 |   |                           |   | 8,648,361 |   |   |   | 8,718,429 |   |   |   | 8,647,810 |   |
| Net income (loss) per common share        |   | $                               | (0.04     | )      |                           | $      | 0.27 |   |   | $ | (0.48 | ) |   | $ | 0.52 |   |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                   |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                         |   | $                               | (92       | )      |                           | $      | 2,581 |   |   | $ | (3,426 | ) |   | $ | 5,280 |   |
| Preferred dividends                       |   |                            | (263      | )      |                           |   | --- |   |   |   | (789 | ) |   |   | --- |   |
|                                      |   | $                               | (355      | )      |                           | $      | 2,581 |   |   | $ | (4,215 | ) |   | $ | 5,280 |   |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common sharesOutstanding |   |                            | 8,727,428 |   |                           |   | 11,230,761 |   |   |   | 8,718,429 |   |   |   | 11,044,528 |   |
| Net income (loss) per common share        |   | $                               | (0.04     | )      |                           | $      | 0.23 |   |   | $ | (0.48 | ) |   | $ | 0.48 |   |

|            |   | September 30, 2010 |   |   | December 31, 2009 |   |
|-----------------|--------|--------------------|--------|--------|-------------------|--------|
|            |   | (Unaudited)        |   |   |              |   |
|            |   |               |   |   |              |   |
| Raw materials   |   | $                  | 2,033  |   |              | $      | 2,566 |   |
| Work-in-process |   |               | 455    |   |              |   | 1,099 |   |
| Finished goods  |   |               | 1,662  |   |              |   | 1,158 |   |
|            |   | $                  | 4,150  |   |              | $      | 4,823 |   |

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| NOTE 5 – LINE OF CREDIT AND LONG-TERM DEBT |
|--------------------------------------------------|

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

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| 10.1 |   | Lease Agreement dated September 10, 2010 between 1979 Marcus Avenue Associates, LLC “Landlord” and Teltronics, Inc. “Tenant” for property located at 1979 Marcus Avenue, Lake Success, New York. |
|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2 |   | Amendment Number Nine to Credit Agreement by and among Wells Fargo Capital Finance, Inc. formerly known as Wells Fargo Foothill, Inc. and Teltronics, Inc. dated November 15, 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.                                                         |

| Date Filed      | Item Reported On                                                    |
|-----------------|---------------------------------------------------------------------|
|            |                                                                |
| August 17, 2010 | Item 2.02:  Results of Operations and Financial Condition |
|            | Item 9.01:  Financial Statements and Exhibits             |

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|                                      | TELTRONICS, INC. |
|-------------------------------------------|------------------|
|                                      |             |   |
| Dated:   November 15, 2010 | By:              | /s/ Ewen R. Cameron              Ewen R. CameronPresident & Chief Executive Officer |
|                                      |             |   |
| Dated:   November 15, 2010 | By:              | /s/ Angela L. Marvin                  |
|                                      |             | Angela L. MarvinVice President Finance and Chief Financial Officer |

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| ExhibitNumber |  Description                                                                                                                                                                                                        |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                     |
| 10.1*         | Lease Agreement dated September 10, 2010 between 1979 Marcus Avenue Associates, LLC “Landlord” and Teltronics, Inc. “Tenant” for property located at 1979 Marcus Avenue, Lake Success, New York. |
| 10.2*         | Amendment Number Nine to Credit Agreement by and among Wells Fargo Capital Finance, Inc. formerly known as Wells Fargo Foothill, Inc. and Teltronics, Inc. dated November 15, 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 September 30, 2010.                                                                                                                                 |

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