UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 For the quarterly period ended March 31, 2007

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 For the transition period from _________ to __________


                         Commission File Number 0-25844


                         TAITRON COMPONENTS INCORPORATED
        (Exact name of small business issuer as specified in its charter)


                 California                                 95-4249240
        (State or other jurisdiction of                  (I.R.S. Employer
        incorporation or organization)                  Identification No.)

          28040 West Harrison Parkway, Valencia, California 91355-4162
                    (Address of principal executive offices)

                                 (661) 257-6060
                           (Issuer's telephone number)






Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]


Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

           Class                                   Outstanding on April 30, 2007
-------------------------------------              -----------------------------
Class A common stock, $.001 par value                      4,775,144
Class B common stock, $.001 par value                        762,612


Transitional Small Business Disclosure Format: Yes [ ] No [X]

<PAGE>

PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements





                         TAITRON COMPONENTS INCORPORATED

                      Condensed Consolidated Balance Sheet
                             (Dollars in Thousands)
                                                                      March 31,
                                                                         2007
                                                                     -----------
                           Assets                                    (Unaudited)
Current assets:
    Cash and cash equivalents                                          $ 1,308
    Trade accounts receivable, net                                       1,562
    Inventory, net                                                      15,507
    Prepaid expenses and other current assets                              219
                                                                       -------
           Total current assets                                         18,596

Property and equipment, net                                              4,329
Other assets                                                             1,786
                                                                       -------

           Total assets                                                $24,711
                                                                       =======

            Liabilities and Shareholders' Equity
Current liabilities:
    Trade accounts payable                                             $ 1,067
    Accrued liabilities and other                                          448
    Current portion of long-term debt                                       89
                                                                       -------
           Total current liabilities                                     1,604

 Long-term debt, less current portion (Note 3)                             487
                                                                       -------

           Total liabilities                                             2,091
                                                                       -------

Commitments and contingencies (Note 4)

Shareholders' equity:
    Preferred stock, $.001 par value. Authorized
    5,000,000 shares
      None issued or outstanding                                            --
      Class A common stock, $.001 par value
      Authorized 20,000,000 shares;
      issued and outstanding 4,765,144 shares
      Class B common stock, $.001 par value
      Authorized, issued and outstanding                                     7
      762,612 shares
    Additional paid-in capital                                          10,517
    Accumulated other comprehensive income, net of tax                      25
    Retained earnings                                                   12,071
                                                                       -------

           Total shareholders' equity                                   22,620
                                                                       -------

           Total liabilities and shareholders' equity                  $24,711
                                                                       =======

     See accompanying notes to condensed consolidated financial statements.


                                     Page 2
<PAGE>

                         TAITRON COMPONENTS INCORPORATED

                 Condensed Consolidated Statements of Operations
                (Dollars in Thousands, except per share amounts)


                                                    Three months ended March 31,
                                                        2007           2006
                                                    -----------     -----------
                                                    (Unaudited)     (Unaudited)
Net sales                                           $     1,855     $     1,989

Cost of goods sold                                        1,355           1,509
                                                    -----------     -----------

         Gross profit                                       500             480

Selling, general and administrative                         691             636
    expenses
                                                    -----------     -----------

     Loss from operations                                  (191)           (156)

Interest income, net                                         11              15
Other expense, net                                           (8)            (17)
                                                    -----------     -----------

     Loss before income taxes                              (188)           (158)

Income tax provision                                         (2)             (4)
                                                    -----------     -----------

         Net loss                                   $      (190)    $      (162)
                                                    ===========     ===========

Other comprehensive income:
     Foreign currency translation adjustment                 16              12
                                                    -----------     -----------

Comprehensive loss                                  $      (174)    $      (150)
                                                    ===========     ===========

Loss per share
         Basic and diluted                          $      (.03)    $      (.03)
                                                    ===========     ===========
Weighted average common shares outstanding
         Basic and diluted                            5,519,701       5,472,201
                                                    ===========     ===========



     See accompanying notes to condensed consolidated financial statements.


                                     Page 3
<PAGE>

                         TAITRON COMPONENTS INCORPORATED

                 Condensed Consolidated Statements of Cash Flows
                             (Dollars in thousands)

<TABLE>
<CAPTION>

                                                                                                        Three months ended March 31,
                                                                                                           2007              2006
                                                                                                        ----------       -----------
                                                                                                        (Unaudited)      (Unaudited)
<S>                                                                                                      <C>                <C>
  Cash flows from operating activities:
      Net loss                                                                                           $  (190)           $  (162)
                                                                                                         -------            -------
      Adjustments to reconcile net loss to net cash provided by operating
           activities:
      Depreciation and amortization                                                                           56                 54
      Provision for sales returns and doubtful accounts                                                       22                 15
      Stock-based compensation                                                                                 7                 --
      Changes in assets and liabilities:
        Trade accounts receivable                                                                           (337)               187
        Inventory, net                                                                                       186                314
        Prepaid expenses and other current assets                                                           (114)               (17)
        Other assets                                                                                        (155)                (4)
        Trade accounts payable                                                                              (153)                20
        Accrued liabilities and other                                                                         68                (34)
                                                                                                         -------            -------
                Total adjustments                                                                           (420)               535
                                                                                                         -------            -------
                Net cash (used in) provided by operating activities                                         (610)               373
                                                                                                         -------            -------

  Cash flows from investing activities:
        Acquisitions of property and equipment                                                                --                (28)
        Purchase of long-term investments                                                                   (305)                --
                                                                                                         -------            -------
                Net cash used in investing activities                                                       (305)               (28)
                                                                                                         -------            -------

  Cash flows from financing activities:
      Payments on notes payable                                                                              (22)                --
      Proceeds from exercise of stock options and issuance of stock                                           54                 24
      Payments on dividends declared                                                                        (552)                --
                                                                                                         -------            -------
                Net cash (used in) provided by financing activities                                         (520)                24
                                                                                                         -------            -------

  Impact of exchange rate changes on cash                                                                     16                 12
                                                                                                         -------            -------

                Net (decrease) increase in cash and cash equivalents                                      (1,419)               381

  Cash and cash equivalents, beginning of period                                                           2,727              1,962
                                                                                                         -------            -------

  Cash and cash equivalents, end of period                                                               $ 1,308            $ 2,343
                                                                                                         =======            =======

  Supplemental disclosure of cash flow information:
      Cash paid for interest                                                                             $    10            $    --
                                                                                                         =======            =======
      Cash paid for income taxes                                                                         $     1            $     1
                                                                                                         =======            =======

</TABLE>


     See accompanying notes to condensed consolidated financial statements.


                                     Page 4
<PAGE>

                         TAITRON COMPONENTS INCORPORATED

              Notes to Condensed Consolidated Financial Statements
                                 March 31, 2007
                           (All amounts are unaudited)


Note 1 - Basis of Presentation

      The accompanying unaudited condensed consolidated financial statements of
      Taitron Components Incorporated ("the Company") were prepared in
      accordance with accounting principles generally accepted in the United
      States of America and reflect all adjustments, consisting of normal
      recurring accruals and adjustments, which are, in the opinion of
      management, necessary for a fair presentation of the consolidated
      financial position and results of operations at and for the periods
      presented. Such financial statements do not include all the information or
      notes necessary for a complete presentation. Therefore, they should be
      read in conjunction with the Company's Annual Report on Form 10-KSB for
      the fiscal year ended December 31, 2006, and the notes thereto, which
      include significant accounting policies and estimates. The results of
      operations for the interim periods are not necessarily indicative of
      results for the full year.


Note 2 - Summary of Significant Accounting Policies and Estimates

      Principles of Consolidation

      The unaudited condensed consolidated financial statements include the
      accounts of the Company and its 60% majority-owned subsidiary, Taitron
      Components Mexico SA de CV. All significant intercompany transactions and
      balances have been eliminated in consolidation.

      Revenue Recognition

      Revenue is typically recognized upon shipment of merchandise and sales are
      recorded net of discounts, rebates, and returns. Reserves for sales
      allowances and customer returns are established based upon historical
      experience and management's estimates as shipments are made. Sales returns
      for the quarters ended March 31, 2007 and 2006 were $17,000 and $15,000,
      respectively.

      Allowance for Sales Returns and Doubtful Accounts

      On a case-by-case basis, the Company accepts returns of products from its
      customers, without restocking charges, when they can demonstrate an
      acceptable cause for the return. Requests by a distributor to return
      products purchased for its own inventory generally are not included under
      this policy. The Company will, on a case-by-case basis, accept returns of
      products upon payment of a restocking fee, which is generally 15% to 30%
      of the net sales price. The Company will not accept returns of any
      products that were special-ordered by a customer or that otherwise are not
      generally included in inventory. The allowance for sales returns and
      doubtful accounts at March 31, 2007 aggregated $85,000.

      Inventory

      Inventory, consisting principally of products held for resale, is recorded
      at the lower of cost (determined using the first in-first out method) or
      estimated market value. Inventory is presented net of valuation allowances
      of $1,300,000 at March 31, 2007.


                                     Page 5
<PAGE>

      Income Taxes

      In June 2006, FASB issued Interpretation No. 48, Accounting for
      Uncertainty in Income Taxes (FIN48), which defines the threshold for
      recognizing the benefits of tax return positions in the financial
      statements as "more-likely-than-not" to be sustained by the taxing
      authority. A tax position that meet the "more-likely-than-not" criterion
      shall be measured at the largest amount of benefit that is more than 50%
      likely of being realized upon ultimate settlement. FIN48 applies to all
      tax positions accounted for under SFAS No. 109, Accounting for Income
      Taxes. FIN48 is effective for fiscal years beginning after December 15,
      2006.

      The Company adopted FIN48 as of January 1, 2007, the beginning of its
      current fiscal year. Based on the Company's preliminary analysis, the
      Company believes that its income tax filing positions and deductions will
      be sustained on audit and does not anticipate any adjustments that will
      result in a material change to its financial position including its
      effective tax rate. Therefore, no reserves for uncertain income tax
      positions have been recorded pursuant to FIN 48 and the Company did not
      record a cumulative effect adjustment related to the adoption of FIN 48.
      In addition, the Company has not recorded any accrued interest and
      penalties related to income tax. It is the Company's policy to classify
      interest and penalties related to income tax as income taxes in its
      financial statements.

      The following tax years that remain subject to examination by major tax
      jurisdictions are as follows: Federal - 2003, 2004 and 2005; and
      California (State) - 2002, 2003, 2004 and 2005.

      However, the Company has certain tax attribute carryforwards which will
      remain subject to review and adjustment by the relevant tax authorities
      until the statute of limitations closes with respect to the year in which
      such attributes are utilized.


      Per Share Data

      Basic earnings per share data are based upon the weighted average number
      of common shares outstanding. Diluted earnings per share data are based
      upon the weighted average number of common shares outstanding, plus the
      number of common shares potentially issuable for dilutive securities such
      as stock options and warrants. The weighted average number of common
      shares outstanding for each of the three and nine month periods ended
      March 31, 2007 and 2006 is set forth in the following table:

                                                         Three months ended
                                                              March 31
                                                   ----------------------------
                                                      2007                2006
                                                   ----------        ----------
Basic weighted average shares                       5,519,701         5,472,201
     outstanding
Potentially dilutive stock options                    381,000           447,000
Anti-dilutive stock options due
     to net loss in period                           (381,000)         (447,000)
                                                   ----------        ----------
Diluted weighted average
     shares outstanding                             5,519,701         5,472,201
                                                   ==========        ==========

      Use of Estimates

      Management has made a number of estimates and assumptions relating to the
      reporting of assets and liabilities and the disclosure of contingent
      assets and liabilities to prepare these condensed consolidated financial
      statements in conformity with accounting principles generally accepted in
      the United States. These estimates have a significant impact on the
      Company's valuation and reserve accounts relating to the allowance for
      sales returns, doubtful accounts, inventory reserves and deferred income
      taxes. Actual results could differ from these estimates.


                                     Page 6
<PAGE>

      Stock-Based Compensation

      In September 2006, the Company' 2005 Stock Incentive Plan (the "2005
      Plan") was approved by state regulators, which authorizes the issuance of
      up to 1,000,000 shares pursuant to options or awards granted under the
      plan.

      Effective January 1, 2006, the Company adopted SFAS No. 123 (revised
      2004), "Share-Based Payment" (SFAS 123R). SFAS 123R requires that the
      Company account for all stock-based compensation using a fair-value method
      and recognize the fair value of each award as an expense over the service
      period.

      Stock option activity during the three months ended March 31, 2007 is as
      follows:

<TABLE>
<CAPTION>

                                                                                          Weighted
                                                                                           Average
                                                                        Weighted            Years                          Weighted
                                                                         Average          Remaining        Aggregate        Average
                                                       Number           Exercise         Contractual       Intrinsic         Fair
                                                     of Shares            Price             Term             Value           Value
                                                     ---------          --------         -----------       ---------       --------
<S>                                                   <C>                 <C>               <C>            <C>
Outstanding at December 31, 2006                      502,000             $1.82             5.28
   Exercised                                          (48,333)             1.10                                  --
   Forfeited                                          (15,000)             3.00                                  --
                                                     --------
Outstanding at March 31, 2007                         438,667             $1.86             5.08           $301,000
                                                     ========
Exercisable at March 31, 2007                         352,332             $1.64             3.85           $329,000
                                                     ========

</TABLE>

      At March 31, 2007, the range of individual outstanding weighted average
      exercise prices was $1.66 to $2.70.


Note 3 - Note Payable

                                                                       March 31,
                                                                         2007
                                                                       --------
      Bank loan payable in fixed monthly principal
      installments of $7,381,  plus interest at the
      rate of one year LIBOR + 1.8% per annum, due                      576,000
      September  20, 2013
           Less current portion                                         (89,000)
                                                                       --------
      Long-term debt, less current portion                              487,000

      On September 21, 2006, the Company borrowed $620,000 in connection with
      its deposit on a real estate purchase contract related to the acquisition
      of approximately 4,500 square feet of office space (consisting of 2
      separate units on the same floor) in Shanghai, China with a total purchase
      price of $1,230,000. The overall office building project is under
      construction and is estimated to be completed in June 2007. The investment
      will be used as rental property for lease to others and for the Company's
      project design and engineering center.


Note 4 - Commitments and Contingencies

      On July 1, 2006, the European Union ("EU") directive relating to the
      Restriction of Certain Hazardous Substance ("RoHS") restricted the
      distribution of products within the EU containing certain substances,
      including lead. Further, many of our suppliers are not yet supplying RoHS
      compliant products. The legislation is effective and some of our inventory
      has become obsolete. Management has estimated the impact of the
      legislation and have written down or reserved for related inventories
      based on amounts expected to be realized given all available current
      information. Actual amounts realized from the ultimate disposition of
      related inventories could be different from those estimated.


                                     Page 7
<PAGE>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

      The following discussion should be read in conjunction with the condensed
consolidated financial statements, including the related notes, appearing in
Item 1 of this report as well as our most recent annual report on Form 10-KSB
for the year ended December 31, 2006. Also, several of the matters discussed in
this document contain forward-looking statements that involve risks and
uncertainties. Forward-looking statements usually are denoted by words or
phrases such as "believes," "expects," "projects," "estimates," "anticipates,"
"will likely result" or similar expressions. We wish to caution readers that all
forward-looking statements are necessarily speculative and not to place undue
reliance on forward-looking statements, which speak only as of the date made,
and to advise readers that actual results could vary due to a variety of risks
and uncertainties. Factors associated with the forward looking statements that
could cause the forward looking statements to be inaccurate and could otherwise
impact our future results are set forth in detail in our most recent annual
report on Form 10-KSB. In addition to the other information contained in this
document, readers should carefully consider the information contained in our
most recent annual report on Form 10-KSB under the heading "Cautionary
Statements and Risk Factors."

      References to "Taitron," "the Company," "we," "our" and "us" refer to
Taitron Components Incorporated and its majority-owned subsidiary, unless the
context otherwise requires.

Critical Accounting Policies and Estimates

      Use Of Estimates - Management has made a number of estimates and
assumptions relating to the reporting of assets and liabilities and the
disclosure of contingent assets and liabilities to prepare its condensed
consolidated financial statements in conformity with accounting principles
generally accepted in the United States. These estimates have a significant
impact on the Company's valuation and reserve accounts relating to the allowance
for sales returns, doubtful accounts, inventory reserves and deferred income
taxes. Actual results could differ from these estimates.

      Revenue Recognition - Revenue is recognized upon shipment of the
merchandise, which is when legal transfer of title occurs. Reserves for sales
allowances and customer returns are established based upon historical experience
and our estimates of future returns. Sales returns for the quarters ended March
31, 2007 and 2006 were $17,000 and $15,000, respectively. The allowance for
sales returns and doubtful accounts at March 31, 2007 aggregated $85,000.

      Inventory - Inventory, consisting principally of products held for resale,
is recorded at the lower of cost (determined using the first in-first out
method) or estimated market value. We had inventory balances in the amount of
$15,507,000 at March 31, 2007, which is presented net of valuation allowances of
$1,300,000. We evaluate inventories to identify excess, high-cost, slow-moving
or other factors rendering inventories as unmarketable at normal profit margins.
Due to the large number of transactions and the complexity of managing and
maintaining a large inventory of product offerings, estimates are made regarding
adjustments to the cost of inventories. Based on our assumptions about future
demand and market conditions, inventories are carried at the lower of cost or
estimated market value. If our assumptions about future demand change, or market
conditions are less favorable than those projected, additional write-downs of
inventories may be required. In any case, actual amounts could be different from
those estimated.

      Impact of Governmental Regulation - Our worldwide operations are subject
to local laws and regulations. As such, of particular interest is the European
Union ("EU") directive relating to the Restriction of Certain Hazardous
Substance ("RoHS"). On July 1, 2006, this directive restricted the distribution
of products within the EU containing certain substances, including lead. At the
present time, much of our inventory contains substances prohibited by the RoHS
directive. Further, many of our suppliers are not yet supplying RoHS compliant
products. The legislation is effective and some of our inventory has become
obsolete. Management has estimated the impact of the legislation and have
written down or reserved for related inventories based on amounts expected to be
realized given all available current information. Actual amounts realized from
the ultimate disposition of related inventories could be different from those
estimated.

      Deferred Taxes - In June 2006, FASB issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes (FIN48), which defines the threshold
for recognizing the benefits of tax return positions in the financial statements
as "more-


                                     Page 8
<PAGE>

likely-than-not" to be sustained by the taxing authority. A tax position that
meet the "more-likely-than-not" criterion shall be measured at the largest
amount of benefit that is more than 50% likely of being realized upon ultimate
settlement. FIN48 applies to all tax positions accounted for under SFAS No. 109,
Accounting for Income Taxes. FIN48 is effective for fiscal years beginning after
December 15, 2006. The Company adopted FIN48 as of January 1, 2007, the
beginning of its current fiscal year. Based on the Company's preliminary
analysis, the Company believes that its income tax filing positions and
deductions will be sustained on audit and does not anticipate any adjustments
that will result in a material change to its financial position including its
effective tax rate. Therefore, no reserves for uncertain income tax positions
have been recorded pursuant to FIN 48 and the Company did not record a
cumulative effect adjustment related to the adoption of FIN 48. In addition, the
Company has not recorded any accrued interest and penalties related to income
tax. It is the Company's policy to classify interest and penalties related to
income tax as income taxes in its financial statements. The following tax years
that remain subject to examination by major tax jurisdictions are as follows:
Federal - 2003, 2004 and 2005; and California (State) - 2002, 2003, 2004 and
2005.

Selected Recent Accounting Policies

      In February 2007, the Financial Accounting Standard Board (FASB) issued
SFAS No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities (SFAS 159), which creates an alternative measurement method for
certain financial assets and liabilities. SFAS 159 permits fair value to be used
for both the initial and subsequent measurements on a contract-by-contract
election, with changes in fair value to be recognized in earnings as those
changes occur. This election is referred to as the "fair value option." SFAS 159
also requires additional disclosures to compensate for the lack of comparability
that will arise from the use of the fair value option. SFAS 159 is effective for
fiscal years beginning after November 15, 2007, with early adoption permitted as
of the beginning of a company's fiscal year, provided the company has not yet
issued financial statements for that fiscal year. The Company is currently
evaluating the impact the adoption of SFAS 159 will have on its financial
position and results of operations.

Overview

      We distribute discrete semiconductors, optoelectronic devices and passive
components to other electronic distributors, CEMs and OEMs, who incorporate them
in their products and supply ODM products for our customer's multi-year turn-key
projects.

      We continue to be impacted by the severe decline in demand for discrete
semiconductors from the U.S. market, which began in late 2000. As a result, we
have experienced declining sales is such components since early 2001. In
response to this declining demand, we placed emphasis on increasing our sales to
existing customers through further expansion of the number of different types of
discrete components and other integrated circuits in our inventory and by
attracting additional contract electronic manufacturers (CEMs), original
equipment manufacturers (OEMs) and electronics distributor customers. In
addition, over the last three years we have developed our ODM service
capabilities and added products developed through partnership agreements with
offshore solution providers (OEMs and CEMs). Looking forward, we plan to offer
commodity Integrated Circuits (ICs) as an extension of current discrete
semiconductor lines in 2007.

      Our core strategy of electronic components fulfillment, however, consists
of carrying a substantial quantity and variety of products in inventory to meet
the rapid delivery requirements of our customers. This strategy allows us to
fill customer orders immediately from stock on hand. Although we believe better
market conditions may return, we are focused on lowering our inventory balances
and increasing our cash holdings. Our long-term strategy is to rely not only on
our core strategy of component fulfillment service, but also the value-added
engineering and turn-key services. In accordance with Generally Accepted
Accounting Principles, we classify inventory as a current asset. However, if all
or a substantial portion of the inventory was required to be immediately
liquidated, the inventory would not be as readily marketable or liquid as other
items included or classified as a current asset, such as cash. We cannot assure
you that demand in the discrete semiconductor market will increase and that
market conditions will improve. Therefore, it is possible that further declines
in our carrying values of inventory may result.

      In accordance with Generally Accepted Accounting Principles, we have
classified inventory as a current asset in our March 31, 2007, consolidated
financial statements representing approximately 83% of current assets and 63% of
total assets. However, if all or a substantial portion of the inventory was
required to be immediately


                                     Page 9
<PAGE>

liquidated, the inventory would not be as readily marketable or liquid as other
items included or classified as a current asset, such as cash. We cannot assure
you that demand in the discrete semiconductor market will increase and that
market conditions will improve. Therefore, it is possible that further declines
in our carrying values of inventory may result.

      Since the beginning of 2001, our gross profit margins in general have been
stable. Our gross profit margins are subject to a number of factors, including
product demand, a strong U.S. dollar, our ability to purchase inventory at
favorable prices and our sales product mix.


Results of Operations

First quarter of 2007 versus First quarter of 2006.

      Net sales in the first quarter of 2007 totaled $1,855,000 versus
$1,989,000 in the comparable period for 2006, a decrease of $134,000 or 6.7%
over the same period last year. The overall decline came from our ODM Product
sales decreasing by $140,000, while our component product sales remained steady
with higher per unit pricing offset by lower quantities shipped, when comparing
the first quarter of 2007 over the same period last year.

      Gross profit for the first quarter of 2007 was $500,000 versus $480,000 in
the comparable period for 2006, and gross margin percentage of net sales was 27%
in the first quarter of 2007 versus 24% in the comparable period for 2006. The
overall increase came from higher margins on our component product sales.

      Selling, general and administrative ("SG&A") expenses in the first quarter
of 2007 totaled $691,000 versus $636,000 in the comparable period for 2006. As a
percentage of net sales, SG&A expenses were 37% in the first quarter of 2007
compared to 32% in the first quarter for 2006. The increase of $55,000 was
primarily attributable to personnel related expenses from our engineering center
in China and higher professional fees and services.

      Interest income, net of interest expense, was $11,000 for the first
quarter of 2007 versus $15,000 in the comparable period for 2006, primarily due
to $10,000 of interest expense incurred related to our borrowing (see Note 3)
for the first quarter of 2007, when comparing $0 in the same period last year.

      Income tax provision was $2,000 for the first quarter of 2007 and $4,000
in the comparable period for 2006, as we do not expect significant taxable
income for fiscal year 2007.

      Net loss was $190,000 for the first quarter of 2007 versus $162,000 in the
comparable period for 2006, an increase of $28,000.

      Effective January 1, 2006, we adopted SFAS 123(R) and such had a $7,000
financial impact to our SG&A for the first quarter of 2007, as compared to a
minimal financial impact for the same period last year.


Liquidity and Capital Resources

      We have satisfied our liquidity requirements principally through cash
generated from operations and short-term commercial loans. A summary of our cash
flows resulting from our operating, investing and financing activities for the
three months ended March 31, 2007 and 2006 are as follows:

                                                   Three months ended March 31,
                                                  -----------------------------
        (Dollars in thousands)                        2007             2006
                                                  -----------       -----------
                                                  (Unaudited)       (Unaudited)
Operating activities ...................           (610,000)          373,000
Investing activities ...................           (305,000)          (28,000)
Financing activities ...................           (520,000)           24,000


      Cash used in operating activities for the three months ended March 31,
2007 was $610,000 versus $373,000 provided by during the comparable period in
2006. The decrease was primarily attributed to receivables increasing


                                    Page 10
<PAGE>

by $337,000 for the three months ended March 31, 2007 and payables decreasing by
$153,000, as compared to the comparable period in 2006.

      Cash used in investing activities for the three months ended March 31,
2007 was $305,000 and 2006 was $28,000, respectively. The increase came from our
$305,000 investment in the preferred stock of Zowie Technology Corporation in
the three months ended March 31, 2007.

      Cash used in financing activities for the three months ended March 31,
2007 was $520,000 versus $24,000 provided by, during the comparable period in
2006. The increase is for our cash dividend payment of $0.10 per share, or
$552,000 paid on January 31, 2007, to shareholders of record at the close of
business on January 22, 2007.

      Inventory is included in current assets; however, it will take over one
year for the inventory to turn. Hence, inventory would not be as readily
marketable or liquid as other items included in current assets, such as cash.

      We believe that funds generated from operations, in addition to existing
cash balances are likely to be sufficient to finance our working capital and
capital expenditure requirements for the foreseeable future. If these funds are
not sufficient, we may secure new sources of short-term commercial loans,
asset-based lending on accounts receivables or issue debt or equity securities.

Item 3. Controls and Procedures.

      The Company's management, including its Chief Executive Officer and Chief
Financial Officer, have evaluated the effectiveness of the Company's disclosure
controls and procedures (as such term is defined in Rules 13a-15(e) under the
Securities Exchange Act of 1934 (the "Exchange Act")) as of the end of the
reporting period covered by this quarterly report. Based on such evaluation, the
Chief Executive Officer and Chief Financial Officer has concluded that, as of
the end of the period covered by this quarterly report, the Company's disclosure
controls and procedures are effective such that material information required to
be disclosed by the Company (including its consolidated subsidiary) in the
reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified by the Securities and
Exchange Commission's rules and forms relating to the Company.

      During the quarterly period covered by this report, there have been no
changes to the Company's internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.


PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

      None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

      There were no issuances or sales of our securities by us during the
quarter ended March 31, 2007 that were not registered under the Securities Act.

Item 3. Defaults Upon Senior Securities.

      None.

Item 4. Submission of Matters to a Vote of Security Holders.

      None.

Item 5. Other Information.

      None.

Item 6. Exhibits.

      a.    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
            2002.

      b.    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
            2002.


                                    Page 11
<PAGE>

                                   SIGNATURES

      In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                            TAITRON COMPONENTS INCORPORATED



Date: May 15, 2007                      By: /s/ Stewart Wang
                                            ------------------------------------
                                            Stewart Wang
                                            Chief Executive Officer, President,
                                            Chief Financial Officer and Director
                                            (Principal Executive, Financial and
                                            Accounting Officer)


                                    Page 12
<PAGE>

Exhibit 31 - Certification of Principal Executive Officer and Principal
Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

                                  Certification

I, Stewart Wang, certify that:

      1.    I have reviewed this quarterly report on Form 10-QSB of Taitron
            Components Incorporated;

      2.    Based on my knowledge, this report does not contain any untrue
            statement of a material fact or omit to state a material fact
            necessary to make the statements made, in light of the circumstances
            under which such statements were made, not misleading with respect
            to the period covered by this report;

      3.    Based on my knowledge, the financial statements, and other financial
            information included in this report, fairly present in all material
            respects the financial condition, results of operations and cash
            flows of the small business issuer as of, and for, the periods
            presented in this report;

      4.    The small business issuer's other certifying officer(s) and I are
            responsible for establishing and maintaining disclosure controls and
            procedures (as defined in Exchange Act Rules 13a-15(e) and
            15d-15(e)) and internal control over financial reporting (as defined
            in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small
            business issuer and have:

                  (a) Designed such disclosure controls and procedures, or
                  caused such disclosure controls and procedures to be designed
                  under our supervision, to ensure that material information
                  relating to the small business issuer, including its
                  consolidated subsidiaries, is made known to us by others
                  within those entities, particularly during the period in which
                  this report is being prepared;

                  (b) Designed such internal control over financial reporting,
                  or caused such internal control over financial reporting to be
                  designed under our supervision, to provide reasonable
                  assurance regarding the reliability of financial reporting and
                  the preparation of financial statements for external purposes
                  in accordance with generally accepted accounting principles;

                  (c) Evaluated the effectiveness of the small business issuer's
                  disclosure controls and procedures and presented in this
                  report our conclusions about the effectiveness of the
                  disclosure controls and procedures, as of the end of the
                  period covered by this report based on such evaluation; and

                  (d) Disclosed in this report any change in the small business
                  issuer's internal control over financial reporting that
                  occurred during the small business issuer's most recent fiscal
                  quarter (the small business issuer's fourth fiscal quarter in
                  the case of an annual report) that has materially affected, or
                  is reasonably likely to materially affect, the small business
                  issuer's internal control over financial reporting; and

      5.    The small business issuer's other certifying officer(s) and I have
            disclosed, based on our most recent evaluation of internal control
            over financial reporting, to the small business issuer's auditors
            and the audit committee of the small business issuer's board of
            directors (or persons performing the equivalent functions):

                  (a) All significant deficiencies and material weaknesses in
                  the design or operation of internal control over financial
                  reporting which are reasonably likely to adversely affect the
                  small business issuer's ability to record, process, summarize
                  and report financial information; and

                  (b) Any fraud, whether or not material, that involves
                  management or other employees who have a significant role in
                  the small business issuer's internal control over financial
                  reporting.


Dated May 15, 2007.                     By: /s/ Stewart Wang
                                            ------------------------------------
                                            Stewart Wang
                                            Principal Executive Officer and
                                            Principal Financial Officer


                                    Page 13
<PAGE>

Exhibit 32 - Certification of Principal Executive Officer and Principal
Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, 18 U.S.C Section 1350, and accompanies the quarterly report on Form
10-QSB for the quarter ended March 31, 2007 of Taitron Components Incorporated.

I, Stewart Wang, the Principal Executive Officer and Principal Financial Officer
of registrant, certify that to the best of my knowledge:

      (i)   the quarterly report on Form 10-QSB fully complies with the
            requirements of Section 13(a) or Section 15(d) of the Securities
            Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

      (ii)  the information contained in such report fairly presents, in all
            material respects, the financial condition and results of operations
            of the registrant.

Dated May 15, 2007.                     By: /s/ Stewart Wang
                                            ------------------------------------
                                            Stewart Wang
                                            Principal Executive Officer and
                                            Principal Financial Officer


                                    Page 14