----

| T      | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.                                                                                            |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                |
|   | For the Quarterly Period Ended March 31, 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) |

----

|          |                                                                                                          | PAGE   |
|---------------|---------------------------------------------------------------------------------------------------------------|--------|
| PART I        | FINANCIAL INFORMATION                                                                                         |   |
| ITEM 1.       | FINANCIAL STATEMENTS                                                                                          |   |
|          | Condensed Consolidated Balance Sheets at March 31, 2010(Unaudited) and December 31, 2009                      | 1      |
|          | Condensed Consolidated Statements of Operations (Unaudited)for the Three months ended March 31, 2010 and 2009 | 2      |
|          | Condensed Consolidated Statements of Cash Flows (Unaudited)for the Three months ended March 31, 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                    | 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                                                                               | 9      |
| ITEM 6.       | EXHIBITS AND REPORTS ON FORM 8-K                                                                              | 9      |
| SIGNATURES    | 10                                                                                                            |
| EXHIBIT INDEX | 11                                                                                                            |
|          |                                                                                                          |   |

----

| ASSETS                                                              |   |
|---------------------------------------------------------------------|--------|
|                                                                |   |   |   |   |   |   |
|                                                                |   | March 31, |   |   | December 31, |   |
|                                                                |   | 2010 |   |   | 2009 |   |
|                                                                |   | (Unaudited) |   |   |   |   |
| Current assets:                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                           |   | $ | 64 |   |   | $ | 339 |   |
| Accounts receivable, net                                            |   |   | 3,183 |   |   |   | 4,856 |   |
| Inventories, net                                                    |   |   | 5,244 |   |   |   | 4,823 |   |
| Prepaid expenses and other current assets                           |   |   | 464 |   |   |   | 406 |   |
| Total current assets                                                |   |   | 8,955 |   |   |   | 10,424 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Property and equipment, net                                         |   |   | 805 |   |   |   | 751 |   |
| Other assets                                                        |   |   | 345 |   |   |   | 368 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Total assets                                                        |   | $ | 10,105 |   |   | $ | 11,543 |   |
|                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ DEFICIENCY                      |   |
|                                                                |   |   |   |   |   |   |   |   |
| Current liabilities:                                                |   |   |   |   |   |   |   |   |
| Line of credit                                                      |   | $ | 2,591 |   |   | $ | 3,124 |   |
| Current portion of long-term debt and capital lease obligations     |   |   | 1,255 |   |   |   | 1,220 |   |
| Accounts payable                                                    |   |   | 3,718 |   |   |   | 3,316 |   |
| Accrued expenses and other current liabilities                      |   |   | 2,554 |   |   |   | 3,200 |   |
| Deferred revenue                                                    |   |   | 571 |   |   |   | 526 |   |
| Total current liabilities                                           |   | $ | 10,689 |   |   | $ | 11,386 |   |
| Long-term liabilities:                                              |   |   |   |   |   |   |   |   |
| Deferred dividends                                                  |   |   | 4,000 |   |   |   | 3,800 |   |
| Long-term debt and capital lease obligations, net ofcurrent portion |   |   | 723 |   |   |   | 1,029 |   |
| Total long-term liabilities                                         |   |   | 4,723 |   |   |   | 4,829 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                       |   |   |   |   |   |   |   |   |
| Shareholders' deficiency:                                           |   |   |   |   |   |   |   |   |
| Capital stock                                                       |   |   | 9 |   |   |   | 9 |   |
| Additional paid-in capital                                          |   |   | 24,740 |   |   |   | 24,735 |   |
| Other comprehensive loss                                            |   |   | (179 | ) |   |   | (169 | ) |
| Accumulated deficit                                                 |   |   | (29,877 | ) |   |   | (29,247 | ) |
| Total shareholders' deficiency                                      |   |   | (5,307 | ) |   |   | (4,672 | ) |
| Total liabilities and shareholders' deficiency                      |   | $ | 10,105 |   |   | $ | 11,543 |   |

----

|                                                    |   | Three Months Ended March 31, |      |
|---------------------------------------------------------|--------|------------------------------|-----------|
|                                                    |   | 2010                         |      |   | 2009 |   |
|                                                    |   |                         |      |   |   |   |
| Net sales                                               |   |                         |      |   |   |   |
| Product sales and installation                          |   | $                            | 3,701     |   |   | $ | 7,058 |   |
| Maintenance and service                                 |   |                         | 2,522     |   |   |   | 2,591 |   |
|                                                    |   |                         | 6,223     |   |   |   | 9,649 |   |
| Cost of goods sold                                      |   |                         | 3,354     |   |   |   | 6,169 |   |
| Gross profit                                            |   |                         | 2,869     |   |   |   | 3,480 |   |
| Operating expenses:                                     |   |                         |      |   |   |   |   |   |
| General and administrative                              |   |                         | 1,517     |   |   |   | 1,178 |   |
| Sales and marketing                                     |   |                         | 681       |   |   |   | 601 |   |
| Research and development                                |   |                         | 741       |   |   |   | 735 |   |
| Depreciation and amortization                           |   |                         | 58        |   |   |   | 53 |   |
|                                                    |   |                         | 2,997     |   |   |   | 2,567 |   |
|                                                    |   |                         |      |   |   |   |   |   |
| Income (loss) from operations                           |   |                         | (128      | ) |   |   | 913 |   |
|                                                    |   |                         |      |   |   |   |   |   |
| Other income (expense):                                 |   |                         |      |   |   |   |   |   |
| Interest                                                |   |                         | (252      | ) |   |   | (408 | ) |
| Other                                                   |   |                         | 19        |   |   |   | 30 |   |
|                                                    |   |                         | (233      | ) |   |   | (378 | ) |
| Income (loss) before income taxes                       |   |                         | (361      | ) |   |   | 535 |   |
| Income taxes                                            |   |                         | 6         |   |   |   | 6 |   |
| Net income (loss)                                       |   | $                            | (367      | ) |   | $ | 529 |   |
| Dividends on Preferred Series B and C Convertible stock |   |                         | 263       |   |   |   | 263 |   |
| Net income (loss) available to common shareholders      |   | $                            | (630      | ) |   | $ | 266 |   |
|                                                    |   |                         |      |   |   |   |   |   |
| Net income (loss) per common share:                     |   |                         |      |   |   |   |   |   |
| Basic and diluted                                       |   | $                            | (0.07     | ) |   | $ | 0.03 |   |
|                                                    |   |                         |      |   |   |   |   |   |
| Weighted average common shares outstanding:             |   |                         |      |   |   |   |   |   |
| Basic and diluted                                       |   |                         | 8,707,250 |   |   |   | 8,647,539 |   |
|                                                    |   |                         |      |   |   |   |   |   |

----

|                                                                |   | Three Months Ended March 31, |   |
|---------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                |   | 2010                         |   |   | 2009 |   |
|                                                                |   |                         |   |   |   |   |
| NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES           |   | $                            | 717    |   |   | $ | (834 | ) |
|                                                                |   |                         |   |   |   |   |   |   |
| INVESTING ACTIVITIES – NET                                    |   |                         | (76    | ) |   |   | (3 | ) |
|                                                                |   |                         |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                               |   |                         |   |   |   |   |   |   |
| Net (repayments) borrowings on line of credit                       |   |                         | (533   | ) |   |   | 1,296 |   |
| Net principal repayments on loan, notes and capital leases          |   |                         | (314   | ) |   |   | (300 | ) |
| Net proceeds from exercised options                                 |   |                         | 4      |   |   |   | --- |   |
| Dividends paid on Preferred Series B Convertible Stock              |   |                         | (63    | ) |   |   | (63 | ) |
| Net cash flows (used in) provided by financing activities           |   |                         | (906   | ) |   |   | 933 |   |
|                                                                |   |                         |   |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents        |   |                         | (10    | ) |   |   | (14 | ) |
|                                                                |   |                         |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents for the period |   |                         | (275   | ) |   |   | 82 |   |
|                                                                |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents - Beginning of Period                     |   |                         | 339    |   |   |   | 548 |   |
|                                                                |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents – End of Period                     |   | $                            | 64     |   |   | $ | 630 |   |
|                                                                |   |                         |   |   |   |   |   |   |

----

|                              |   | Three Months Ended March 31, |   |
|-----------------------------------|--------|------------------------------|--------|
|                              |   | 2010                         |   |   | 2009 |   |
|                              |   |                         |   |   |   |   |
| Net income (loss)                 |   | $                            | (367   | ) |   | $ | 529 |   |
| Foreign currency translation      |   |                         | (10    | ) |   |   | (14 | ) |
| Total comprehensive income (loss) |   | $                            | (377   | ) |   | $ | 515 |   |
|                              |   |                         |   |   |   |   |   |   |

----

|                                      |   | Three Months Ended March 31, |      |
|-------------------------------------------|--------|------------------------------|-----------|
| Net income (loss) per share               |   | 2010                         |      |   | 2009 |   |
|                                      |   |                         |      |   |   |   |
| Basic and dilutive                        |   |                         |      |   |   |   |
| Net income (loss)                         |   | $                            | (367      | ) |   | $ | 529 |   |
| Preferred dividends                       |   |                         | (263      | ) |   |   | (263 | ) |
|                                      |   | $                            | (630      | ) |   | $ | 266 |   |
|                                      |   |                         |      |   |   |   |   |   |
| Weighted average common sharesOutstanding |   |                         | 8,707,250 |   |   |   | 8,647,539 |   |
| Net income (loss) per common share        |   | $                            | (0.07     | ) |   | $ | 0.03 |   |
|                                      |   |                         |      |   |   |   |   |   |

|            |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-----------------|--------|---------------------|--------|--------|-------------------|--------|
|            |   | (Unaudited)         |   |   |              |   |
|            |   |                |   |   |              |   |
| Raw materials   |   | $                   | 2,412  |   |              | $      | 2,566 |   |
| Work-in-process |   |                | 768    |   |              |   | 1,099 |   |
| Finished goods  |   |                | 2,064  |   |              |   | 1,158 |   |
|            |   | $                   | 5,244  |   |              | $      | 4,823 |   |

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

----

----

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

----

----

| 10   |   | Amendment Number Seven to Credit Agreement by and among Wells Fargo Foothill, Inc. and Teltronics, Inc. dated May 14, 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                                                                                |
|----------------|-------------------------------------------------------------------------------------------------|
|           |                                                                                            |
| March 10, 2010 | Item 5.03:  Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. |

----

|                                 | TELTRONICS, INC. |
|--------------------------------------|------------------|
|                                 |             |   |
| Dated:   May 17, 2010 | By:              |  /s/ Ewen R. Cameron                Ewen R. CameronPresident & Chief Executive Officer |
|                                 |             |   |
| Dated:   May 17, 2010 | By:              |  /s/ Angela L. Marvin                 |
|                                 |             | Angela L. MarvinVice President Finance and Chief Financial Officer |

----

| ExhibitNumber |  Description                                                                                                                                                |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                             |
| 10*           | Amendment Number Seven to Credit Agreement by and among Wells Fargo Foothill, Inc. and Teltronics, Inc. dated May 14, 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 March 31, 2010.                                                                             |

----