UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington,  DC  20549

                                   FORM  10-K
(Mark  One)

X    ANNUAL  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT  OF  1934  for  the  fiscal  year  ended  December  31,  2007

     or

     TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF THE SECURITIES
EXCHANGE  ACT  OF  1934  for  the  transition  period  from  to  ____

                         Commission  File  No.  0-3936

                        ORBIT  INTERNATIONAL  CORP.
             (Name  of  registrant  as  specified  in  its  charter)

             DELAWARE                                   11-1826363
(State  or  Other  Jurisdiction  of       (I.R.S.  Employer Identification  No.)
       Incorporation  or  Organization)

80  CABOT  COURT,  HAUPPAUGE,  NEW  YORK                        11788
   (Address  of  principal  executive  offices)              (Zip  Code)

Registrant's  telephone  number,  including  area  code:  (631)  435-8300

Securities  registered  pursuant  to  Section  12(b)  of  the  Exchange  Act:

COMMON STOCK, $.10 PAR VALUE PER SHARE        NASDAQ CAPITAL MARKET
--------------------------------------        ---------------------
        (TITLE OF EACH CLASS)        (NAME OF EACH EXCHANGE ON WHICH REGISTERED)
Securities  registered  pursuant  to  Section  12(g)  of  the Exchange Act: None

Indicate  by  check  mark  if the registrant is a well-known seasoned issuer, as
defined  in  Rule  405  of  the  Securities  Act.
                  Yes               No    X

Indicate  by  check  mark  if  the  registrant  is  not required to file reports
pursuant  to  Section  13  or  Section  15(d)  of  the  Act.
                  Yes               No    X

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the Registrant was
required to file such reports), and (2) been subject to such filing requirements
for  the  past  90  days.
                  Yes   X           No
Indicate  by  check mark if disclosure of delinquent filers pursuant to Item 405
of  Regulation  S-K  is  not contained herein, and will not be contained, to the
best  of  Registrant's  knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form  10-K. X

Indicate  by  check mark whether the Registrant is a large accelerated filer, an
accelerated  filer,  a  non-accelerated  filer,  or a smaller reporting company.
Large  accelerated  filer     Accelerated  Filer
Non-accelerated  filer     Smaller  reporting  company  X

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

Aggregate  market value of Registrant's voting and non-voting common equity held
by  non-affiliates  (based  on  shares  held and the closing price quoted on the
Nasdaq  Capital  Market  on  June  29,  2007):  $33,577,059

Number  of  shares  of  common stock outstanding as of March 16, 2008: 4,723,753

Documents incorporated by reference: The Registrant's definitive proxy statement
to be filed pursuant to Regulation 14A promulgated under the Securities Exchange
Act  of  1934  in  connection  with  the  Registrant's  2008  Annual  Meeting of
Stockholders.

PART  I
-------


ITEM  1.          DESCRIPTION  OF  BUSINESS

GENERAL

     Orbit International Corp. (the "Company" or "Orbit") was incorporated under
the laws of the State of New York on April 4, 1957 as Orbit Instrument Corp.  In
December  1986, the state of incorporation was changed from New York to Delaware
and in July 1991, the name was changed to Orbit International Corp.  The Company
conducts  its  operations  through  its Orbit Instrument Division and its wholly
owned  subsidiaries, Behlman Electronics, Inc. and Tulip Development Laboratory,
Inc.  ("TDL")  and its affiliated manufacturing company, TDL Manufacturing, Inc.
("TDLM")(collectively  "Tulip").  Through  its  Orbit Instrument Division, which
includes its wholly owned subsidiaries, Orbit Instrument of California, Inc. and
Tulip,  the Company is engaged in the design, manufacture and sale of customized
electronic  components  and  subsystems.  Integrated  Consulting Services, Inc.,
d/b/a  Integrated  Combat Systems, Inc. ("ICS"), acquired effective December 31,
2007  and  based  in  Louisville, Kentucky, performs systems integration for gun
weapons  systems  and  fire  control interface, as well as logistics support and
documentation.  Behlman  Electronics,  Inc.  is  engaged  in  the  design  and
manufacture  of distortion free commercial power units, power conversion devices
and  electronic  devices  for  measurement  and  display.

On December 19, 2007, the Company completed the acquisition of all of the issued
and  outstanding stock of ICS effective December 31, 2007. The total transaction
value  was  approximately  $6,600,000 consisting of $5,400,000 in cash, of which
$4,500,000  was  funded  by  a  five  year  term  loan  from its primary lender,
approximately  120,000  shares of Orbit stock valued at approximately $1,000,000
and  approximately  $200,000  in  acquisition  costs.  Additionally,  there is a
contingent  earn  out of $1,000,000, payable over the next three years, based on
ICS's  ability  to  attain  certain  revenue  levels over the three year period.

FINANCIAL  INFORMATION  ABOUT  INDUSTRY  SEGMENTS

     The  Company  currently  operates in two industry segments. The Electronics
Group  is  comprised  of  the  Company's  Orbit  Instrument  Division, its Tulip
subsidiary,  and  its  ICS  subsidiary,  commencing  December  31,  2007.  Orbit
Instrument  Division  and  Tulip  are  engaged  in the design and manufacture of
electronic  components  and  subsystems. ICS performs system integration for gun
weapons  systems  and  fire  control  interface as well as logistics support and
documentation.  The Power Group is comprised of the Company's Behlman subsidiary
and  is  engaged  in  the  design  and  manufacture  of  commercial power units.






The  following  sets  forth  certain  selected  historical financial information
relating  to  the  Company's  business  segments:


                                           December 31,
                                             ------------
                                2007(1)                  2006(1)
                                -------                  -------

Net sales:
---------


Electronics Group
     Domestic                  $15,503,000               $15,291,000
     Foreign                     1,162,000                 1,031,000
                                -----------              -----------
Total Electronics Group        $16,665,000               $16,322,000


Power Group
     Domestic                  $ 8,207,000               $ 8,170,000
     Foreign                     1,013,000                   523,000
                               -----------             -------------
Total Power Group              $ 9,220,000               $ 8,693,000

Operating income (2):
----------------


Electronics Group             $  2,666,000               $ 3,017,000
Power Group                   $  1,232,000               $   996,000

Assets:
------

Electronics Group             $ 10,504,000               $  8,680,000
Power Group                   $  5,668,000               $  4,853,000

(1)     Does  not  include  the  operations of ICS since the acquisition was not
effective  until  December  31,  2007.
(2)     Exclusive of corporate overhead expenses, interest expense and
investment and other income- net, which are not allocated to the business
segments.

     Additional financial information relating to the business segments in which
Orbit  conducts  its  operations  is  set  forth  in Note 16 to the Consolidated
Financial  Statements  appearing  elsewhere  in  this  report.

DESCRIPTION  OF  BUSINESS

GENERAL

     Orbit's  Electronics  Group  designs,  manufactures  and  sells  customized
panels,  components, and "subsystems" for contract program requirements to prime
contractors,  governmental  procurement  agencies  and  research and development
("R&D")  laboratories.  The  Group primarily designs and manufactures in support
of  specific  military  programs.  More  recently,  the  Company  has focused on
providing  commercial,  non-military "ruggedized hardware" (hardware designed to
meet  severe  environmental  conditions)  for  prime contractor programs at cost
competitive prices.  Products include a variety of custom designed "plasma based
telephonic  intercommunication  panels"  for secure voice airborne and shipboard
program requirements, "full-mil keyboards", "trackballs" and "data entry display
devices".  The Electronics Group's products, which in all cases are designed for
customer  requirements  on  a  firm  fixed  price  contract  basis,  have  been
successfully  incorporated  on  surveillance  aircraft programs, including E-2C,
E-2D,  Joint  Surveillance  Target  Attack  Radar  Systems  (J/STARS),  Lookdown
Surveillance Aircraft (AWACS) and P-3 (anti-submarine warfare) requirements, and
shipboard  programs,  including  AEGIS (Guided Missile Cruisers and Destroyers),
DDG'S  (Guided Missile Destroyers), BFTT (Battle Force Tactical Training), LSD'S
(Amphibious Warfare Ships) and LHA'S (Amphibious Warfare Ships) applications, as
well  as  a  variety  of  land based guidance control programs including the TAD
(Towed Artillery Digitization) fire control system. Through ICS, the Electronics
Group  also  performs  (i)  analysis  and evaluation of medium and major caliber
Naval  Gun  Weapon  Systems  performance,  including  interoperability  and
compatibility with combat systems, interface systems, ammunition, subsystems and
components,  (ii)  engineering  requirements such as the design, integration and
production  of medium and major caliber Naval Gun Weapon Systems' components and
(iii)  engineering  supplies and services in support of medium and major caliber
Naval  Gun  Weapon Systems initiatives, including the development of test plans,
test  equipment,  test  articles/units,  analyses,  trouble  shooting,  repair,
maintenance  and  reporting.

     Orbit's Power Group manufactures and sells power supplies, AC power sources
(equipment that produces power that is the same as what would be received from a
public  utility), "frequency converters" (equipment that converts local power to
equivalent  foreign  power),  "uninterruptible  power supplies ("UPS")" (devices
that  allow  a  computer  to  operate  while  utility power is lost), associated
analytical  equipment  and other electronic equipment.  The military division of
Behlman  designs  and  manufactures  "power  conversion devices" (equipment that
produces power that is the same as what would be received from a public utility)
and  electronic  products  for  measurement  and  display.

PRODUCTS

Electronics  Group

     IFF-  Identification  Friend  or  Foe

     Orbit  Instrument  has designed and developed a Remote Control Unit ("RCU")
that has supported the Common Transponder ("CXP") program for both U.S. Navy and
U.S.  Army  program  requirements.  Orbit's  RCU  has  been  fully qualified for
shipboard,  aircraft  and  ground  based  programs, which are now functional and
supporting  U.S. forces in air, sea and ground battlefield conditions. The Orbit
RCU  now  has  embedded  proprietary  software code for Mode S, Enhanced Traffic
Alert  and  Collision  Avoidance  Systems  ("ETCAS"),  and  Mode  5  IFF  combat
applications.

     After  shipping more than 3,000 units in support of U.S. Army and U.S. Navy
CXP  program  requirements,  Orbit  has  designed and qualified a new Integrated
Remote  Control Unit ("IRCU") which has been qualified to support U.S. Air Force
retrofit,  as  well  as  new  program  opportunities.

     Intercommunication Panels

     The  Orbit  Instrument Division has designed and developed various types of
shipboard  communication  terminals.  Orbit  also  upgraded  these  panels  with
state-of-the-art  displays  and  touch  screens.  These  communication terminals
support  existing  shipboard secure and non secure voice communication switches.
In  addition, the Orbit Instrument Division has also upgraded the communications
Terminals  with  "telco-based"  capability. The upgraded communication terminals
are  installed  on  combat  information  centers  of  various  U.S. Naval ships.

The  Orbit  Instrument  Division has designed and developed the next generation,
Color  LCD  flat  panel technology with a touch screen based Computer Controlled
Action  Entry  Panel  for the AEGIS Class Ships. The new Color Entry Panel (CEP)
replaces  our  existing  Plasma  Entry  Panel  (PEP).  The  CEP has already been
successfully  manufactured  and  tested  on  several  platforms.

     Displays

     The  Electronics  Group,  through  the Orbit Instrument Division and Tulip,
have  designed,  developed,  qualified  and  successfully  supported a number of
critical  programs  for  prime  contractor  and  government  procurement  agency
requirements.  The  Electronics  Group  has  designed  displays  using
Electroluminescent  ("EL"),  Plasma,  and  Liquid  Crystal  Display  ("LCD")
technologies,  for  military  and  ruggedized  environments.

     Displays  designed  by  Orbit's  Electronics  Group  allow an operator, or,
multiple  operators  to  monitor  and  control  radar  systems  for  aircraft,
helicopter, shipboard, ground based, and tracked vehicles systems on a number of
critical  defense  electronics  programs.  The  unique  modular design technique
allows  Orbit's  displays  to provide "smart technology", high-speed graphics to
operators  in  the  most  severe  combat  conditions. Tulip and Orbit Instrument
displays  are  designed to meet both sunlight readable and night vision (NVIS"),
and  continue  to  operate  after  exposure  to nuclear, biological and chemical
("NBC")  environments.

     Both Orbit Instrument and Tulip have penetrated a niche defense electronics
marketplace  by  providing  avionic  displays  and keyboards for a number of Air
Force  jet fighter, bomber, surveillance and tanker refueling programs. Displays
may  vary  from  four  (4)  inches,  up to forty five (45) inches, incorporating
multiple  inputs  and  outputs  for  operator  program  requirements.

     With  years  of prime contractor and procurement agency support, both Tulip
and  Orbit have designed and embedded displays for U.S. Army programs, providing
multiple  display  systems  supporting  commander,  fire  control and GPS driver
requirements  for  the  Abrams,  Bradley,  and  Challenger  programs.

     Tulip has developed a number of color LCD displays that have been qualified
and  currently  support a number of helicopter, jet fighter, bomber, and tracked
vehicle  programs  requirements.

     Orbit  Instrument  has  supported  programs  that  now  include  displays,
keyboards  and  track  balls  to form complete operator systems. These trays are
qualified  for  sub-surface,  shipboard,  aircraft  and  tracked vehicle program
opportunities.

     Tulip  has  successfully  designed  and  qualified an Input Device Assembly
("IDA"),  which  includes an integrated keyboard, trackball and display assembly
that  is worn (via Velcro), on the co-pilot's thigh during flight missions. This
unique  wearable  system  provides co-pilots with additional information that is
easy  to  access,  and  does  not  require  additional  space  with  the cockpit
environment.

     Keyboards,  Keypads  and  Pointing  Devices

     The  Orbit  Instrument  Division and Tulip have designed a number of custom
backlit  keyboards  and  keypads  to  meet  full military specifications.  These
keyboards  and  keypads  have been designed for shipboard, airborne, sub-surface
and  land  based  program  requirements,  as  well  as  for the Federal Aviation
Administration.  The  keyboards  include  various  microprocessor  based  serial
interfaces, such as RS-232, RS-422, PS/2, USB and SUN type interfaces. Depending
on  the  requirement,  some  of  the  backlit  keyboards are night vision goggle
compatible  and  designed for NVIS Green A or Green B night vision requirements.

     Orbit  designed/developed  pointing  devices,  trackballs and force sticks.
Orbit manufactures various militarized trackballs in various sizes for airborne,
shipboard,  Army  and  FAA  requirements.  The  trackballs  and the force sticks
include  various  microprocessor based serial interfaces such as RS-232, RS-422,
PS/2,  USB  and  SUN  type  interfaces.

     Tulip  has  successfully  designed  and  qualified an Input Device Assembly
(IDA), which is a fully integrated keyboard, trackball and display assembly that
is worn (via Velcro) on the co-pilot's thigh during flight missions. This allows
the  aircraft  to  actually have four bullnose systems, the last being the Tulip
designed  IDA  thigh  pad.

     Operator Control Trays

     The  Orbit  Instrument  Division  designs  and  manufactures  a  variety of
"operator  control  trays"  that  help  organize  and  process  data  created by
interactive  communications  systems,  making  such  data  more  manageable  for
operator  consumption.  These  trays  are  presently  used to support patrol and
surveillance  airborne  aircraft  programs,  "standard shipboard display console
requirements"  and  shore  land based defense systems applications. The operator
trays  are  integrated  with  Orbit  designed/developed  keyboards,  flat  panel
technology  based  computer  controlled  action  entry panels, switch panels and
pointing  devices.

Command  Display  Units  (CDU'S)

The  Orbit  Instrument  Division currently has orders for command display panels
that  are  being  utilized  for  vehicular,  shipboard  and  sheltered  platform
requirements.  The  display panels are flat panel technology based and include a
Pentium  based single board computer. Orbit designed/developed several models of
the  CDU  to  be  used  by U.S. Navy, U.S. Army and Marines, Korean and Canadian
armies.

Mobile  Key  Panel  Receivers

Tulip  is  under  contract for the production of mobile key panel receivers that
provide  battlefield operators with real time position, velocity, navigation and
timing  (PVNT)  information  in  a  stand  alone,  hand-held,  lightweight
configuration.

     MK  119  Gun  Console  System  Computer  (GCSC)

      ICS  is  under  multi-year  contract  for  the  MK  119  GCSC, an unmanned
environmentally  isolated  shipboard  enclosure  that  houses a standard 19 inch
electronics rack containing processors, electronic devices and cooling and power
conditioning  equipment that perform processing, interfacing and data extraction
functions.

     MK  437  Gun  Mount  Control  Panel  (GMCP)

      ICS  is  also  under contract for the GMCP, a manned control panel located
shipboard  in the Gun Loader room.  The GMCP consists of an interactive operator
control/display  terminal that provides operator interactions with the Gun Mount
and  the  GCSC  to  allow  the  operator  to  enter ammunition and environmental
pre-engagement data and allows monitoring of the Gun Mount status and operation.
In  the event of a loss of the Gun Console (GC) the GMCP can serve as a casualty
mode  of  system  operation.

     Selected Products

     ICS  builds a wide range of system integration related products, including:
fiber optic cables, specialty enclosures, traditional shipboard cable sets (both
low  smoke  and  non-low  smoke)  and  training  devices.

Power  Group

     Behlman's  Commercial  Power  Supply  Division  designs and manufactures AC
power  sources.  These  products  are  used  for  clean  regulated power and for
frequency  and voltage conversion applications.  Behlman's AC power supplies are
used  on  production lines, in engineering labs, for oil and gas exploration, on
aircraft  (both  manned  and  unmanned),  and  on ships including related ground
support.

Behlman's  frequency  converters are used to convert power from one frequency to
another.  They  are  used  to  test products to be exported to foreign countries
from  the  point  of  origin  (e.g.  in the U.S., 60 Hz. is converted to 50 Hz).
These  frequency  converters  are  used to supply 400 Hz aircraft and ship power
from  the local power grid that is 50 or 60 Hz.  They are also used on airplanes
to  supply  the 60 Hz. required by standard equipment such as computers from the
400  Hz.  available  on  the  aircraft.  Behlman's  products  are being used for
railroad  signaling; its frequency converters are being manufactured for most of
the  passenger  railroads  in  the  United States.  Behlman's power sources have
power  levels  from  100  VA  to  120,000  VA.

Behlman's  UPS  products  are  used  for  backup power when local power is lost.
Behlman  only  competes  in  the  "ruggedized", industrial and military markets.
Behlman  is  now  producing  its  UPS units for Aegis Destroyers, LHD Wasp Class
ships  and  military  aircraft.

Behlman's  inverters  which convert system battery power to AC are being used in
electric,  gas  and  water  transmission  systems  and  in  utility substations.

Behlman's  Custom  Power Supply Division designs and manufactures power supplies
that  use  commercial-off-the-shelf  (COTS) power modules to meet its customers'
environmental  specifications.  This  technique  requires  less  engineering and
produces  a  more  reliable  unit  in  much  less  time.

     Behlman  also performs reverse engineering of analog systems for the United
States Government or United States Government contractors to enable them to have
a  new  supplier  when  the  old  manufacturer  cannot  or  will  not supply the
equipment.

Behlman  is  a  long  time  supplier to the Source Development Department of the
NAVICP  and has been given the opportunity to compete against prime contractors.
Behlman  has  supplied  products  including  positioning  assemblies  and  power
supplies  for  the  F/18  FLIR  system.

     Behlman  also  operates  as a qualified repair depot for many United States
Air  Force  and  Navy  programs.

PROPOSED  PRODUCTS

Electronics  Group

     The  Orbit  Electronics  Group  has  continued  to  identify  new  program
opportunities,  which require new hardware and software designs to support prime
contractors  and  defense  procurement  agency  land,  sea  and  air  solutions.

     Tulip  continues  to be a leading supplier of display and keyboard designs,
supporting  defense  electronics  and industrial program requirements. Tulip has
developed  a  second  LCD  display  configuration,  which  is supporting transit
authority  communication  directly  with  the  driver.  This device is typically
mounted  within  a  bus,  and allows the driver to input and receive information
throughout  the  intended  route. The significance of this market penetration is
the  specific transit authority operational requirements, where down time due to
repeated  failures  is  not  an  option.  Tulip  continues  to  support  this
transportation  display  requirement,  and can provide solutions to each transit
authority  as  new  awards  are  released.

     The  Electronics  Group  has developed several new color smart displays for
use  on  helicopter  programs. Given the critical requirements of the helicopter
missions,  each  configuration  has  been  designed  as sunlight readable, night
vision  qualified  displays  that  provides  the  crew with real time data under
extreme  environmental  combat  requirements.

     The  Electronics  Group  continues  to  provide  a  family  of  display
configurations  that are designed with latest state of the art technologies, and
combines  various stand alone switch panels and data input devices onto a single
display.  These  displays  provides  an operator with a single source of easy to
access  information  that  supports  naval  consoles,  aircraft  cockpits, armor
vehicle  suites  and  helicopter  cockpit  requirements.

     The  Orbit Instrument Division continues to develop new GPS Control Display
Unit  ("CDU") panels that support U.S. Army land navigation system requirements.
A  number  of  CDU  panels  have  been designed as a total solution for customer
requirements.  As each foreign country procures this Fire Finder system from the
prime  contractor, critical country mapping and targeting code is written by the
division  segment,  and  embedded  into  the  CDU as an operational requirement.

     The  Electronics Group continues to target ongoing retrofit programs, which
are  intended to extend the life cycle of ships, aircraft, and armored vehicles.
To  that  extent,  the  Orbit Instrument Division and Tulip have designed latest
state of the art LED switch panels, keyboards, and communication panels that are
form fit and replaceable for units that have exceeded their intended operational
usage. In all cases, the new technological designs supporting the switch panels,
keyboards,  and  communication panels are intended to replace Orbit units, which
have  been  operational  in  combat  mode  for decades. As the Electronics Group
continues  to  receive new contract awards for program opportunities, developing
replacement  hardware to obsolete our previously designed units will continue to
be  a  significant  part  of  the  Group's  business  strategy.

     In  response to market based influences ICS is planning to develop a family
of  shock-isolated  cabinets  to  house  both  custom and COTS components.  This
family  of  cabinets  will  be  qualified  to the full spectrum of environmental
criteria  mandated  by  our  Defense  customer  base.

     Future modifications of the GCSC will incorporate touch sensitive displays,
detailed  built-in-test  capabilities  and  a  robust  graphic  interface.

Power Group

     In  an  effort to expand its product base, Behlman is developing new higher
power  inverters.  These  products  are designed to expand Behlman's presence in
the  utility  market and to establish a presence in the military inverter market
to  be  used  on  equipment  such  as  Hummers.

Behlman  is  expanding  its high power BL series to be used on new aircraft that
utilize  "wild  frequency"  systems.

Behlman  is  expanding  its  P series of low cost AC power supplies to add power
factor  corrected  input  and  CE  marking  in order to enhance its sales to the
European  Community.

Behlman  is  developing  a new line of ruggedized UPS to be used in military and
high  end  industrial  applications.

In  response  to customer requests, Behlman is developing COTS power supplies to
be  used  in  applications  such  as  satellite,  sonar and fire control optics.
Behlman  continues  to be the company of choice by certain divisions of military
procurement  to  replace  obsolete  power  equipment  with modern COTS versions.

SALES  AND  MARKETING

     Products  of  the  Electronics  Group  are  marketed  by  Orbit  Instrument
Division's  sales  personnel  and  management.  Products and services of ICS are
marketed  by ICS's management. Military products of the Power Group are marketed
by  Behlman's  sales  and  program  managers  and  other  management  personnel.
Commercial  products  of  the  Power  Group are sold by regional sales managers,
manufacturer's  representatives  and  non-exclusive  distributors.

COMPETITION

     Many  of our competitors are well established, have reputations for success
in  the  development  and  sale  of  their  products  and  services  and  have
significantly  greater  financial,  marketing, distribution, personnel and other
resources  than  us,  thereby permitting them to implement extensive advertising
and  promotional  campaigns,  both  in  general  and  in  response to efforts by
additional  competitors to enter into new markets and introduce new products and
services.

     The  electronics  industry is characterized by frequent introduction of new
products  and  services,  and  is  subject  to changing consumer preferences and
industry  trends,  which  may  adversely  affect  our ability to plan for future
design, development and marketing of our products and services.  The markets for
electronic  products,  components and related services are also characterized by
rapidly  changing technology and evolving industry standards, often resulting in
product  obsolescence  or short product life cycles.  We are constantly required
to  expend  more  funds  for  research  and  development  of  new  technologies.

     The  Electronics  Group's  competitive  position  within  the  electronics
industry  is,  in  management's  view,  predicated  upon  the  Orbit  Instrument
Division's  and  Tulip's  manufacturing  techniques,  its  ability to design and
manufacture products which will meet the specific needs of its customers and its
long-standing  successful  relationship with its major customers.  (See "- Major
Customers").  There are numerous companies, many of which have greater resources
than  the  Company,  capable  of  producing  substantially  all of the Company's
products.  However,  to  the  Company's  knowledge,  none  of  such  competitors
currently  produce  nearly  all  of  the  products  that the Electronics Segment
produces.

     Competition  in  the  markets for the Power Group's commercial and military
products  depends on such factors as price, product reliability and performance,
engineering  and  production.  In  particular,  due  primarily  to  budgetary
restraints  and  program  cutbacks,  competition  in  Behlman's  United  States
Government  markets  has been increasingly severe and price has become the major
overriding  factor  in  contract  and  subcontract  awards.  To  the  Company's
knowledge,  some  of  Behlman's  regular  competitors  include  companies  with
substantially  greater capital resources and larger engineering, administrative,
sales  and  production  staffs  than  Behlman's.



SOURCES AND AVAILABILITY OF RAW MATERIALS

          The Company uses multiple sources for its procurement of raw materials
and  is  not  dependent  on  any  suppliers  for  such procurement.  The Company
continuously  updates  its  delivery  schedules  and  evaluates  availability of
components  so  that  they  are  received  on  a  "just-in-time  schedule".
Occasionally,  in  the production of certain military units, the Company will be
faced with procuring certain components that are either obsolete or difficult to
procure.  However,  the  Company  has  access  to  worldwide  brokers  using the
internet  to  assure  component  availability.  Nevertheless,  there  can  be no
assurance  that such components will be available, and even if so, at reasonable
prices.

MAJOR  CUSTOMERS

     A unit of BAE Systems, various agencies of the United States Government and
Raytheon  Company,  accounted for approximately 14%, 12%, and 10%, respectively,
of  consolidated  net sales of the Company for the year ended December 31, 2007.
The  loss  of any of these customers would have a material adverse effect on the
net  sales  and  earnings  of  the  Company.  The  Company  does  not  have  any
significant  long-term  contracts  with  any  of  the above-mentioned customers.

     The  major  customers  of  the Electronics Group are a unit of BAE Systems,
various  agencies  of  the  United States Government, Raytheon Company, Lockheed
Martin  and  Rockwell Collins, Inc., accounting for approximately 20%, 15%, 15%,
11%  and  10%, respectively, of the net sales of such segment for the year ended
December  31,  2007.  The  loss  of any of these customers would have a material
adverse  effect  on  the  net  sales  and  earnings  of  the  Electronics Group.

     The  major  customers  of  the  Power Group are Telephonics, Inc. and Baker
Hughes  Inc.  accounting for approximately 16% and 10%, respectively, of the net
sales  of  such segment for the year ended December 31, 2007.  The loss of these
customers  would have a material adverse effect on the net sales and earnings of
the  Power  Group.

     Since  a  significant  amount  of  all  of  the  products which the Company
manufactures  are  used  in  military applications, any substantial reduction in
overall  military  spending  by  the  United  States  Government  could  have  a
materially  adverse  effect  on  the  Company's  sales  and  earnings.

BACKLOG

As  of  December  31,  2007  and  2006  the  Company's  backlog  was as follows:


                                     2007                       2006
                                     ----                       ----

Electronics Group                $ 9,000,000                  $11,000,000

Power Group                        6,000,000                    4,000,000
                                  -----------                 -----------

Total                            $15,000,000                  $15,000,000
                                  ==========                  ===========

          The  backlog  of  the  Electronics Group at December 31, 2007 included
$1,600,000  of  backlog  attributable  to  ICS.

     Approximately  $1,100,000  of  the  backlog at December 31, 2007 represents
backlog  under  contracts  that  will  be  shipped  beyond  2008.

The  backlog  at  December  31,  2007  and  December  31,  2006 does not include
approximately  $3,800,000  and  $2,000,000,  respectively,  of  orders  not  yet
received  under  a  Master  Order Agreement received from a customer whereby the
Company  was  authorized  to  procure  material  to  complete  such  orders.

A  significant  amount  of the Company's contracts are subject to termination at
the  convenience of the United States Government.  The backlog is not influenced
by  seasonality.

SPECIAL  FEATURES  OF  UNITED  STATES  GOVERNMENT  CONTRACTS

     Orders  under  United States Government prime contracts or subcontracts are
customarily subject to termination at the convenience of the U.S. Government, in
which  event  the contractor is normally entitled to reimbursement for allowable
costs  and  a  reasonable  allowance  for  profits,  unless the termination of a
contract  was  due  to  a  default  on  the  part  of  the  contractor.

During  the year ended December 31, 2007, the Power Group was a subcontractor to
a  prime  contractor  on  a  program that was terminated by the U.S. Government,
under  which  the  Company  expects  to  recover  all its costs of approximately
$200,000.  The  termination  claim  is  currently  under  review  by  the  U.S.
Government.

During the year ended December 31, 2006, the Power Group recovered substantially
all  of  its  costs  associated  with a $299,000 contract terminated by the U.S.
Government.  No  other  material  terminations  of  contracts  of  either  the
Electronics  Group  or the Power Group at the convenience of the U.S. Government
occurred  during  the  years  ended  December  31,  2007  and  2006.

     A  significant portion of the Company's revenues are subject to audit under
the Vinson-Trammel Act of 1934 and other federal statutes since they are derived
from  sales under United States Government contracts.  The Company believes that
adjustments  to  such  revenues,  if any, will not have a material effect on the
Company's  financial  position  or  results  of  operations.

RESEARCH  AND  DEVELOPMENT

     The  Company  incurred  approximately $1,203,000 and $1,110,000 of research
and  development  expenses  during  the  years ended December 31, 2007 and 2006,
respectively.  During  the  years  ended December 31, 2007 and 2006, the Company
recognized  revenue  of  approximately  $690,000 and $705,000, respectively, for
customer  funded  research  and  development.

PATENTS

     The  Company  does  not  own  any patents which it believes are of material
significance  to  its  operations.

EMPLOYEES

     As  of March 14, 2008, the Company employed 146 persons, all on a full-time
basis  except  for  two  part-time  employees.  Of  these, the Electronics Group
employed 97 people, consisting of 23 in engineering and drafting, 6 in sales and
marketing,  18  in  direct  and  corporate  administration  and  the  balance in
production.  The Power Group employed 49 people, consisting of 13 in engineering
and  drafting,  6  in  sales,  3  in direct and corporate administration and the
balance  in  production.

ITEM  1A.     RISK  FACTORS

     This  report and other reports filed by us with the Securities and Exchange
Commission  contain certain forward-looking statements within the meaning of the
Private  Securities  Litigation  Reform Act of 1995. Actual results could differ
materially from those projected in the forward-looking statements as a result of
certain  uncertainties  set forth below and elsewhere in this report, as well as
additional  risks and uncertainties of which we are currently unaware.  See Item
7.  "Management's  Discussion and Analysis of Financial Condition and Results of
Operations-Forward  Looking  Statements".

RISKS  RELATING  TO  THE  COMPANY

WE  ARE  HEAVILY DEPENDENT UPON THE CONTINUANCE OF MILITARY SPENDING AS A SOURCE
OF  REVENUE  AND  INCOME.

A  significant  amount  of  all the products we manufacture are used in military
applications.  The  attacks  of  September  11, 2001 and subsequent world events
have  led  the  U.S.  Government  to  increase  the  level  of military spending
necessary  for  domestic  and  overseas security.  We are heavily dependent upon
military  spending  as  a  source  of  revenues  and  income.  Accordingly,  any
substantial  future  reductions  in  overall  military  spending  by  the  U.S.
Government  could  have  a  material  adverse  effect on our sales and earnings.

WE COULD ENCOUNTER DIFFICULTIES IN PROCURING CONTRACTS BECAUSE OF A REDUCTION IN
THE  LEVEL  OF  INDUSTRY-WIDE  FUNDING  AND  PRICING  PRESSURES.

          We  continue to pursue many business opportunities, including programs
in  which  we  have  previously  participated but, in the event of industry-wide
funding  and pricing pressures, we could encounter delays in the awards of these
contracts.   We  continue to seek new contracts which require incurring up-front
design,  engineering,  prototype  and  pre-production  costs.  While  we  are
attempting  to  negotiate  contract  awards  for  reimbursement  of  product
development,  there  is no assurance that sufficient monies will be set aside by
our  customers,  including  the  U.S. Government, for such effort.  In addition,
even  if  the  U.S.  Government  agrees to reimburse development costs, there is
still  a  significant  risk  of  cost  overrun,  which  may not be reimbursable.
Furthermore,  once  we have completed the design and pre-production stage, there
is  no  assurance  that  funding  will  be  provided  for  future  production.

     A  significant  amount  of  our contracts are subject to termination at the
convenience  of  the  U.S.  Government.  Orders  under  U.S.  Government  prime
contracts  or  subcontracts  are  customarily  subject  to  termination  at  the
convenience  of  the  U.S. Government, in which event the contractor is normally
entitled  to  reimbursement  for  allowable costs and a reasonable allowance for
profits,  unless  the termination of a contract was due to a default on the part
of  the  contractor.

WE  ARE  DEPENDENT  ON CERTAIN OF OUR CUSTOMERS AND WE DO NOT HAVE ANY LONG-TERM
CONTRACTS  WITH  THESE  CUSTOMERS.

          A  unit  of  BAE  Systems,  various  agencies  of  the  United  States
Government, and Raytheon Company, accounted for approximately 14%, 12%, and 10%,
respectively,  of  consolidated  net  sales  of  the  Company for the year ended
December  31,  2007.  A  unit  of  BAE  Systems,  various  agencies  of the U.S.
Government,  Raytheon  Company,  Lockheed  Martin  and  Rockwell  Collins, Inc.,
accounted for approximately 20%, 15%, 15%, 11% and 10%, respectively, of the net
sales  of  our  Electronics  Group  for  the  year  ended  December  31,  2007.
Telephonics,  Inc.  and  Baker Hughes Inc., accounted for approximately 16%, and
10%,  respectively,  of  the  net  sales  of  our Power Group for the year ended
December  31, 2007.  We do not have any significant long-term contracts with any
of the above-mentioned customers.  The loss of any of these customers would have
a  material  adverse  effect  on  our  net  sales  and earnings.    Due to major
consolidations  in  the  defense industry, it has become more difficult to avoid
dependence  on  certain  customers  for  revenue  and  income.

WE  ARE  DEPENDENT  UPON OUR SENIOR EXECUTIVE OFFICERS AND KEY PERSONNEL FOR THE
OPERATION  OF  OUR  BUSINESS.

     We  are  dependent  for  the  operation  of our business on the experience,
technology  knowledge,  abilities and continued services of our senior officers,
Dennis  Sunshine,  President  and  Chief  Executive  Officer,  Bruce  Reissman,
Executive  Vice  President  and  Chief  Operating  Officer, and Mitchell Binder,
Executive  Vice  President  and  Chief  Financial  Officer  as well as the Chief
Operating  Officers  at each of our operating units. The loss of services of any
of  such  persons  would  be expected to have a material adverse effect upon our
business  and/or  our  prospects.  Our  future  success is dependent upon, among
other  things,  the  successful  recruitment  and  retention  of  key  personnel
including  executive officers, for sales, marketing, finance and operations.  We
face significant competition for skilled and technical talent.  No assurance can
be  made  that we will be successful in attracting and retaining such personnel.
If  we  are  unable  to retain existing key employees or hire new employees upon
acceptable  terms  when  necessary,  our business could potentially be adversely
affected.

WE  MAY  NOT  BE  ABLE  TO  EFFECTIVELY  MANAGE  OUR  RECENT  ACQUISITION.

          We may face challenges managing our recent acquisition of ICS together
with  our  other  existing  operations  in different geographic locations. These
risks  include  the  integration  of  ICS  with the operations, technologies and
management  of  the  Company  and  the  attendant  risks  associated  with  such
acquisition,  including possible unanticipated liabilities, unanticipated costs,
and  diversion  of  management  attention.

          There  can  be  no  assurance  that  we will successfully integrate or
profitably  manage  ICS's  business, that our consolidated business will achieve
sales  levels,  profitability,  efficiencies  or  synergies that justify the ICS
acquisition,  or that ICS will result in increased earnings for us in any future
period. We may not be able to manage all of our combined operations effectively,
and  failure  to  do  so  could  have a material adverse effect on the Company's
business,  financial  condition  and/or  operating  results.

WE  MAY  NOT  BE  SUCCESSFUL  IN  OUR  EXPANSION  EFFORTS.

          Part  of  our  business  strategy  is to expand our operations through
strategic  acquisitions.  Through  the  past  several years, we reviewed various
potential  acquisitions  and  believe there are numerous opportunities presently
available,  although  there  is increased competition among private equity firms
and  other  entities  seeking  similar  type  acquisitions.  In  April  2005, we
completed  the  acquisition  of  Tulip  and  in  December 2007, we completed the
acquisition of ICS. While there can be no assurance we will obtain the necessary
financing  to  complete  additional acquisitions, even if we do, there can be no
assurance  that  we will have sufficient income from operations of such acquired
companies  to  satisfy the interest payments, in which case, we will be required
to  pay  them  out  of  Orbit's  operations  which  may  be  adversely affected.
Furthermore,  there can be no assurance we will be able to successfully complete
the  integration  of any future acquired business and that such acquisition will
be  profitable  and  enable  us  to  grow  our  business.

WE  MAY HAVE DIFFICULTY PROCURING CERTAIN RAW MATERIALS ON TERMS SATISFACTORY TO
US.

          We  use  multiple sources for our procurement of our raw materials and
we  are  not  dependent  on  any  suppliers for such procurement.  Occasionally,
however,  in  the  production  of  certain  military units, we may be faced with
procuring  certain  components that are either obsolete or difficult to procure.
Although we believe that with our access to worldwide brokers using the Internet
we  can  obtain  the  necessary  components, there can be no assurance that such
components  will  be  available,  and  even  if  so,  at  reasonable  prices.

ITEM  1B.     UNRESOLVED  STAFF  COMMENTS

          None.



ITEM  2.     PROPERTIES

     The  Company  owned  its  plant  and executive offices, located at 80 Cabot
Court,  Hauppauge,  New  York,  which  consists  of 60,000 square feet (of which
approximately  50,000 square feet are available for manufacturing operations) in
a two-story, brick building, which was completed in October 1982 and expanded in
1985.  The  Company  is currently operating at approximately 70% of capacity. In
March  2001,  the Company completed a sale leaseback transaction whereby it sold
its  land  and  building for $3,000,000 and entered into a twelve-year net lease
with  the  buyer  of  the property.  The lease provides for an annual payment of
$360,000 with 10% increases in the fourth, seventh and tenth years of the lease.
The  lease  expires  in February 2013, but may be extended by the Company at its
option  through  2025.  During  the  extension period, the lease provides for an
annual  rent  of  $527,076  with  10% increases in the fourth, seventh and tenth
years  of  the  extended  lease.

     Behlman  leased 1,700 square feet in Ventura, California, which was used as
a selling office. The lease provided for monthly payments of $1,679 from January
1,  2005  through December 31, 2005 and increased to $1,730 from January 1, 2006
through  December  31,  2006  and to $1,781 from January 1, 2007 to December 31,
2007. In December 2007, Behlman entered into a new lease for a 2,000 square foot
facility in Newbury Park, California, which will be used as a selling office for
all  of  the Company's operating units. The five year lease provides for monthly
payments  of approximately $2,100 with annual increases of approximately 3%. The
lease  provides for an option to renew for an additional five years at a monthly
rent  equal  to  the rent charged for comparable space in the geographical area.

On April 4, 2005, Tulip entered into a five-year lease for 19,000 square feet at
1765  Walnut  Drive,  Quakertown, Pennsylvania, which is used for manufacturing,
engineering  and administration. The facility is operating at full capacity. The
lessor  of  this  facility  is  a limited partnership, the ownership of which is
controlled  by  the former shareholders of Tulip. The lease provides for monthly
payments  of  $9,100  for  the  first year and increases by 2% each year for the
first  two  renewal  periods  and  by  3%  for  the  final  two renewal periods.

ICS  operates  out of two facilities in Louisville, KY, one of which is used for
engineering,  logistics and administration and the other for manufacturing.  The
lease  for engineering, logistics and administration is for approximately 10,000
square  feet  and  provides  for monthly payments of approximately $5,900, which
expires  in  March  2009  and  includes  an  option  to  extend the lease for an
additional  five  years  at  115% of the current rent. The facility is currently
operating  at approximately 75% of capacity The lease for manufacturing space is
for  approximately  13,000  square  feet  and  provides  for monthly payments of
approximately  $4,300,  which  expires  in  April 2009 and includes an option to
extend  the  lease for an additional five years at 115% of the current rent. The
facility  is  currently  operating  at  approximately  85% of capacity. ICS also
entered  into a three year lease for a sales office in Virginia Beach, VA, which
consists  of  approximately  800  square  feet  and provides for monthly rent of
approximately  $1,000.  The  lease expires in December 2008 and ICS has no plans
to  renew.

ITEM  3.     LEGAL  PROCEEDINGS


There  are  no  material  pending  legal  proceedings  against  the  Company.



ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS


          None.

                                    PART II
                                    -------


ITEM  5.          MARKET  FOR  REGISTRANT'S  COMMON  EQUITY, RELATED STOCKHOLDER
MATTERS  AND  ISSUER  PURCHASES  OF  EQUITY  SECURITIES

     The Company's common stock is quoted on the Nasdaq Capital Market under the
symbol  ORBT.

     The  following  table  sets  forth  the  high  and  low sales prices of the
Company's  common stock for each quarter from January 1, 2006 through its fiscal
year  ended  December  31,  2007,  as  reported  on  the  Nasdaq Capital Market.



                             HIGH                   LOW
                             ----                   ---

2006:

First Quarter:              $14.23                  $8.90

Second Quarter:              10.12                   6.70

Third Quarter:                7.49                   4.55

Fourth Quarter:               8.25                   6.63


2007:

First Quarter:               $8.43                  $7.04

Second Quarter:               9.35                   7.38

Third Quarter:                9.67                   6.84

Fourth Quarter:               9.30                   8.02



HOLDERS
     As  of  March  13,  2008,  the  Company  had  184  shareholders  of record.

DIVIDENDS
     The  Company  has  not paid or declared any cash dividends to date and does
not  anticipate  paying  any  in the foreseeable future.  The Company intends to
retain  earnings,  if  any,  to  support  the  growth  of  the  business.

<PAGE>

                               PERFORMANCE GRAPH
     The  graph  below  compares  the cumulative total shareholder return on the
Common  Stock for the last five fiscal years with the cumulative total return on
the Nasdaq Stock Market-U.S. Index and a peer group of comparable companies (the
"Peer  Group")  selected  by  the  Company  over  the  same period (assuming the
investment  of  $100  in  the Common Stock, the Nasdaq Stock Market-U.S. and the
Peer  Group  on  December  31,  2002,  and  the  reinvestment of all dividends).


                              [GRAPHIC OMITTED]


                COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN*
                     AMONG ORBIT INTERNATIONAL, THE NASDAQ
                     STOCK MARKET-US INDEX AND A PEER GROUP
                                (in  dollars)
                  Orbit
                  International          Peer
                  Corp.                  Group                NASDAQ

12/02               100.00               100.00               100.00
12/03               206.04               118.32               149.75
12/04               309.62               171.74               164.64
12/05               427.88               202.66               168.60
12/06               280.22               211.46               187.83
12/07               296.70               235.13               205.22

     *  The  Peer Group is comprised of six companies in the defense electronics
industry  -Megadata Corp., La Barge, Inc., Miltope Group Inc., DRS Technologies,
Inc.,  Esterline  Technologies  Corp.,  and  Espey Manufacturing and Electronics
Corp.  Such  companies  were chosen for the Peer Group because they have similar
market  capitalizations to the Company and/or because they represent the line of
business  in  which  the  Company is engaged.  Each of the Peer Group issuers is
weighted  according  to  its  respective  market  capitalization.

SECURITIES  AUTHORIZED  FOR  ISSUANCE  UNDER  EQUITY  COMPENSATION  PLANS

     The  following  table  sets  forth,  as  of  December  31,  2007:

-     the  number of shares of the Company's common stock issuable upon exercise
of  outstanding  options,  warrants  and  rights, separately identified by those
granted     under  equity incentive plans approved by the Company's stockholders
and  those granted under plans, including individual compensation contracts, not
approved  by  the  Company's  stockholders  (column  a),

-     the  weighted average exercise price of such options, warrants and rights,
also  as  separately  identified  (column  b),  and

-     the  number  of  shares remaining available for future issuance under such
plans,  other  than  those shares issuable upon exercise of outstanding options,
warrants  and  rights  (column  c).

<TABLE>
<CAPTION>
<S>                                  <C>                           <C>                       <C>
                                     (a)                           (b)                        (c)
Plan Category                         Number of securities to be    Weighted-average         Number of securities
                                      issued upon exercise of       exercise price of        remaining available for
                                      outstanding options,          outstanding options,     future issuance under
                                      warrants and rights           warrants and rights      equity compensation
                                                                                             plans (excluding
                                                                                             securities reflected in
                                                                                             column (a))

Equity compensation plans
approved by security holders                 599,000                     $ 3.15                  331,000

Equity compensation plans not
approved by security holders                   -0-                         N/A                     -0-
                                             -------                     ------                  -------

Total                                        599,000                     $ 3.15                  331,000
                                             =======                     ======                 ========
</TABLE>


RECENT  SALE  OF  UNREGISTERED  SECURITIES

          As  previously  reported  by  the Company on Form 8-K for December 19,
2007,  approximately  120,000  shares of unregistered common stock was issued in
connection  with  the  ICS  acquisition.


ITEM 6.     SELECTED FINANCIAL DATA

          Not  applicable,  as  the  Company  is  a  smaller  reporting company.


<PAGE>

ITEM  7.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF
     FINANCIAL  CONDITION  AND  RESULTS  OF  OPERATIONS

Executive Overview
------------------

     The  Company  recorded  an increase in operating results for the year ended
December  31,  2007.   Revenues  increased  by  3.5%  and  gross  profit margins
increased  slightly  for the year ended December 31, 2007, compared to the prior
year.  The increase in revenues was principally due to slight increases for both
our  Electronics and Power Groups.  However, selling, general and administrative
expenses  also  increased  due  to  increased selling costs and higher corporate
expenses.  Interest expense decreased and investment and other income increased.
Consequently,  net income for the year ended December 31, 2007 increased by 6.7%
compared  to the prior year.  Our backlog at December 31, 2007 was approximately
$14,500,000  compared  to  $14,700,000  at  December  31,  2006.  There  is  no
seasonality  to  the  Company's  business.  Our shipping schedules are generally
determined  by  the  shipping schedules outlined in the purchase orders received
from  our  customers.  Both of our operating segments are pursuing a significant
amount of business opportunities and our confidence level remains very high with
respect  to  receiving  many  of  the orders we are pursuing, although timing is
always  an  uncertainty.  Our  success  of  the past few years has significantly
strengthened  our  balance  sheet  evidenced  by  our  4.1 to 1 current ratio at
December  31,  2007,  which  includes  the  balance  sheet  accounts of ICS.  We
currently  have  a $3,000,000 credit facility in place and the Company continues
to  explore  acquisition  opportunities  that  are  compatible with our existing
operations.  We  also  have  several  financing alternatives available to us, if
needed,  in  order  to  fund  any  potential  acquisitions.


Forward  Looking  Statements
----------------------------

     Statements  in  this  Item  7.  "Management's  Discussion  and  Analysis of
Financial  Condition  and  Results of Operations" and elsewhere in this document
are  certain  statements which are not historical or current fact and constitute
"forward-looking  statements"  within the meaning of such term in Section 27A of
the  Securities  Act  of  1933 and Section 21E of the Securities Exchange Act of
1934.  Such  forward-looking  statements  involve  known  and  unknown  risks,
uncertainties  and  other  factors  that  could  cause  the  actual financial or
operating  results of the Company to be materially different from the historical
results  or from any future results expressed or implied by such forward-looking
statements.  Such  forward looking statements are based on our best estimates of
future results, performance or achievements, based on current conditions and the
most  recent results of the Company.  In addition to statements which explicitly
describe  such risks and uncertainties, readers are urged to consider statements
labeled  with  the  terms "may", "will", "potential", "opportunity", "believes",
"belief",  "expects",  "intends",  "estimates",  "anticipates"  or "plans" to be
uncertain  and  forward-looking. The forward-looking statements contained herein
are  also  subject generally to other risks and uncertainties that are described
from  time  to  time  in the Company's reports and registration statements filed
with  the  Securities  and  Exchange  Commission.



CRITICAL ACCOUNTING POLICIES

     The  discussion  and  analysis of the Company's financial condition and the
results  of  its  operations are based on the Company's financial statements and
the  data  used  to  prepare them.  The Company's financial statements have been
prepared  based on accounting principles generally accepted in the United States
of  America.  On  an  on-going basis, we re-evaluate our judgments and estimates
including  those  related to inventory valuation, the valuation allowance on the
Company's  deferred  tax  asset,  goodwill  impairment  and  the  valuation  of
share-based compensation.  These estimates and judgments are based on historical
experience  and  various  other  assumptions  that are believed to be reasonable
under  current business conditions and circumstances.  Actual results may differ
from  these  estimates  under  different assumptions or conditions.  The Company
believes  the  following  critical  accounting  policies affect more significant
judgments  and  estimates  in  the  preparation  of  the  consolidated financial
statements.

Inventories
-----------

     Inventory  is  valued at the lower of cost (specific, average and first-in,
first-out  basis)  or market.  Inventory items are reviewed regularly for excess
and obsolete inventory based on an estimated forecast of product demand.  Demand
for  the Company's products can be forecasted based on current backlog, customer
options  to  reorder  under existing contracts, the need to retrofit older units
and  parts  needed for general repairs.  Although the Company makes every effort
to  insure  the  accuracy  of  its  forecasts  of  future  product  demand,  any
significant  unanticipated changes in demand or technological developments could
have  an impact on the level of obsolete material in its inventory and operating
results  could  be affected, accordingly.  However, world events have forced our
country  into various situations of conflict whereby equipment is used and parts
may  be  needed for repair.  This could lead to increased product demand as well
as  the  use  of  some  older  inventory  items  that the Company had previously
determined  to  be  obsolete.

Deferred tax asset
------------------

At  December  31,  2007,  the  Company  had an alternative minimum tax credit of
approximately  $573,000  with  no  limitation  on  the  carry-forward period and
federal  net  operating  loss  carry-forwards  of approximately $21,000,000 that
expire  through  2025.  Approximately, $18,000,000 of federal net operating loss
carry-forwards expire between 2010-2012. In addition, the Company receives a tax
deduction  when  their  employees  exercise  their  non-qualified  stock options
thereby  increasing  the  Company's  deferred  tax  asset. The Company records a
valuation allowance to reduce its deferred tax asset when it is more likely than
not  that a portion of the amount may not be realized. The Company estimates its
valuation  allowance based on an estimated forecast of its future profitability.
Any  significant  changes  in  future profitability resulting from variations in
future revenues or expenses could affect the valuation allowance on its deferred
tax  asset  and  operating  results  could  be  affected,  accordingly.


Impairment  of  Goodwill
------------------------

     The Company has significant intangible assets related to goodwill and other
acquired  intangibles.  In  determining the recoverability of goodwill and other
intangibles,  assumptions must be made regarding estimated future cash flows and
other  factors to determine the fair value of the assets.  If these estimates or
their  related  assumptions change in the future, the Company may be required to
record  impairment  charges for those assets not previously recorded.  Effective
January 1, 2001, the Company adopted Statement of Financial Accounting Standards
No.  142,  "Goodwill  and  Other  Intangible  Assets"  ("SFAS  142").  Under the
provisions  of  SFAS  142,  the costs of certain intangible assets are no longer
subject  to amortization.  These costs were reviewed for potential impairment in
2007  and  2006  and  will  be  reviewed  on  an  annual  basis  thereafter.

Share-Based  Compensation
-------------------------

     Effective  January  1,  2006,  the  Company  began  recognizing share-based
compensation under SFAS No. 123(R), which requires the measurement at fair value
and  recognition  of  compensation  expense  for  all  share-based awards. Total
share-based  compensation  expense  was $180,000 for the year ended December 31,
2007.  The estimated fair value of stock options granted in 2007 were calculated
using the Black-Scholes model. This model requires the use of input assumptions.
These  assumptions include expected volatility, expected life, expected dividend
rate,  and  expected  risk-free  rate  of  return.

RESULTS  OF  OPERATIONS:

Year  Ended  December  31,  2007  vs.  Year  Ended  December  31,  2006
-----------------------------------------------------------------------

     The  Company  currently  operates  in  two  industry  segments.  Its  Orbit
Instrument  Division  and  its  Tulip  subsidiary  are engaged in the design and
manufacture  of  electronic components and subsystems (the "Electronics Group").
Its  Behlman  subsidiary  is engaged in the design and manufacture of commercial
power  units  (the  "Power Group").  On December 19, 2007, the Company completed
the  acquisition of ICS, effective December 31, 2007.  ICS, which became part of
the  Company's  Electronics  Group,  performs system integration for Gun Weapons
Systems  and  Fire  Control  Interface  as  well  as  logistics  support  and
documentation.  Since  the  effective  date  of the acquisition was December 31,
2007, ICS was not included in the Company's statement of operations for the year
ended  December  31,  2007.

Consolidated net sales for the year ended December 31, 2007 increased by 3.5% to
$25,885,000  from  $25,015,000  for the prior year principally due to a 2.1% and
6.1%  increase  in  sales  recorded  from the Electronics Group and Power Group,
respectively.

Gross profit, as a percentage of net sales, for the year ended December 31, 2007
increased  to 43.4% from 43.3% for the prior year. This increase resulted from a
higher  gross  profit  recorded by the Power Group that was offset by a slightly
lower  gross  profit  recorded  by the Electronics Group.  The increase in gross
profit (44.3% v. 43.6%) from the Power Group was principally due to the increase
in  sales  and  to  product  mix.  The slight decrease in gross profit (42.9% v.
43.1%)  from  the  Electronics  Group  was  due  principally  to  product  mix.

Selling,  general  and  administrative  expenses for the year ended December 31,
2007  increased  by  5.4%  to  $8,729,000  from  $8,285,000  from the year ended
December 31, 2006 principally due to higher selling costs (brochures and website
design)  incurred  by  the  Electronics  Group  and  due  to  higher  corporate
administrative costs particularly: i) $93,000 of costs related to implementation
of  internal controls over financial reporting as required by Section 404 of the
Sarbanes  Oxley  Act  and  ii) $50,000 retainer paid to its investment banker to
pursue  strategic  alternatives  for  the  Company.  Selling,  general  and
administrative  expenses,  as a percentage of sales, for the year ended December
31,  2007  increased  to  33.7%  from  33.1%  principally due to the increase in
expenses  without  a  commensurate  increase  in  sales.

Interest expense for the year ended December 31, 2007 decreased to $332,000 from
$443,000  for  the year ended December 31, 2006 due to a decrease in the amounts
owed  to  lenders  in  the  current  year  and to a reduction in interest rates.

Investment  and  other  income for the year ended December 31, 2007 increased to
$447,000  from $358,000 for the prior year principally due to an increase in the
amounts  invested  during  the current year and despite a write-down of $50,000,
related  to  certain corporate bonds held by the Company, for an unrealized loss
that  was  determined  to  be  other  than  temporary.

Income  before  income  tax provision was $2,612,000 for the year ended December
31,  2007  compared  to  $2,459,000  for the year ended December 31, 2006.  This
increase  was  principally  due to the increase in sales, the slight increase in
gross  margins,  the decrease in interest expense and increase in investment and
other  income  and  despite  the increase in selling, general and administrative
expenses.

Income  taxes for the year ended December 31, 2007 and December 31, 2006 consist
of  $30,000  and  $40,000,  respectively,  in  state income taxes that cannot be
offset  by  any  state  net  operating  loss  carry-forwards.

As  a  result  of the foregoing, net income for the year ended December 31, 2007
was  $2,582,000  compared to $2,419,000 for the year ended December 31, 2006, an
increase  of  6.7%.

     Earnings before interest, taxes, depreciation and amortization (EBITDA) for
the  year  ended  December  31,  2007  increased  slightly  to  $3,505,000  from
$3,468,000  for  the  year  ended December 31, 2006.  Listed below is the EBITDA
reconciliation  to  net  income:

                                           Year  ended
                                          December  31,
                                          -------------
                                     2007                   2006
                                     ----                   ----

Net  income                       $2,582,000            $2,419,000
Interest  expense                    332,000               443,000
Income  tax  expense                  30,000                40,000
Depreciation  and  amortization      561,000               566,000
                                  ----------          ------------
EBITDA                            $3,505,000            $3,468,000
                                  ==========            ==========

     EBITDA  is  a  Non-GAAP  financial  measure  and should not be construed as
     an  alternative  to net income. An element of the Company's growth strategy
     has  been  through  strategic  acquisitions  which  have been substantially
     funded  through  the  issuance  of  debt.  This has resulted in significant
     interest  expense  and  amortization  expense.  EBITDA  is  presented  as
     additional  information  because  the  Company believes it is useful to our
     investors  and  management  as  a measure of cash generated by our business
     operations  that  will  be  used  to  service  our  debt  and  fund  future
     acquisitions  as  well  as  provide  an  additional  element  of  operating
     performance.

Liquidity,  Capital  Resources  and  Inflation
----------------------------------------------

     Our  consolidated  balance sheet accounts include ICS at December 31, 2007.
Working  capital  increased  to  $18,167,000 at December 31, 2007 as compared to
$17,176,000  at  December  31,  2006.  The  ratio  of  current assets to current
liabilities  was  4.1 to 1 at December 31, 2007 compared to 4.9 to 1 at December
31,  2006.  This  reduction was principally due to the term debt used to finance
the  acquisition  of  ICS.

Net  cash  provided by operating activities for the year ended December 31, 2007
was  $1,477,000,  primarily  attributable  to  net  income  for  the period, the
non-cash  amortization  of  intangible  assets,  depreciation  and  stock  based
compensation  and  the increase in accounts payable that was partially offset by
the  increase  in accounts receivable and inventory and the decrease in customer
advances.  Net cash provided by operating activities for the year ended December
31,  2006  was  $4,422,000,  primarily  attributable  to  the net income for the
period,  the  non-cash  amortization  of  intangible  assets  and  stock  based
compensation,  depreciation,  an  increase  in  accounts  payable  and  customer
advances  and  a  decrease  in  other  long  term  assets.

Cash flows used in investing activities for the year ended December 31, 2007 was
$3,846,000,  attributable  to the acquisition of ICS, the purchase of marketable
securities  and fixed assets that was partially offset by the sale of marketable
securities.  Cash flows used in investing activities for the year ended December
31,  2006  was  $3,266,000, primarily attributable to the purchase of marketable
securities  and fixed assets that was partially offset by the sale of marketable
securities.

Cash flows provided by financing activities for the year ended December 31, 2007
was  $2,010,000,  attributable  to  loan  proceeds  primarily  related  to  the
acquisition  of  ICS  and  stock  option  exercises that was partially offset by
repayments  of debt.  Cash flows used in financing activities for the year ended
December  31,  2006  was $1,154,000, attributable to the repayments of debt that
was  partially  offset  by  the  proceeds  from  stock  option  exercises.

In  June  2007,  the  Company entered into an amended $3,000,000 credit facility
with  a commercial lender secured by accounts receivable, inventory and property
and  equipment.  In  April 2005, the Company entered into a five-year $5,000,000
Term  Loan  Agreement  to finance the acquisition of Tulip and its manufacturing
affiliate.  In  December  2007,  the Company entered into a five-year $4,500,000
Term  Loan  Agreement to finance the acquisition of ICS.  In connection with the
new  Term  Loan  entered  into in December 2007, the interest rates on both Term
Loan  Agreements  and  the  credit  facility  were  amended  to  equal a certain
percentage,  depending  on  a matrix related to a certain financial covenant (as
defined), plus the one month LIBOR.  At December 31, 2007, the interest rate was
equal  to  the  sum  of either 1.15% or 1.50% plus the one-month LIBOR (4.60% at
December  31, 2007).  The credit facility will continue from year to year unless
sooner  terminated for an event of default including non-compliance with certain
financial  covenants.  Principal payments under the two term loan facilities are
approximately  $113,000  per  month.  The  Company had outstanding borrowings of
$699,000  under  its  credit  facility  at  December  31,  2007.

In  April  2005, the Company entered into a five year $2,000,000 Promissory Note
with  the  selling shareholders of Tulip at an interest rate of prime plus 2.00%
(7.25%  at  December  31,  2007).  Principal payments of $100,000 were made on a
quarterly  basis  along  with  accrued  interest.  In  June  2007,  the  Company
refinanced the balance due on the Promissory Note of $1,050,000 with its primary
commercial  lender.  Under  the  terms  of  a new Term Loan, monthly payments of
$35,000  will  be  made  over a thirty-month period along with accrued interest,
depending on a matrix related to a certain financial covenant (1.15% at December
31,  2007),  (as defined), plus the one-month LIBOR(4.60% at December 31, 2007).

        The  Company's contractual obligations and commitments are summarized as
follows:

                                  Less than     1-3          4-5        After
Obligation           Total         1 Year      Years       Years       5 Years
-----------          ------       -------      -----       -----       --------
Long-term  debt     $8,530,000   $1,777,000  $4,824,000  $1,929,000        -

Note Payable           699,000      699,000       -           -            -

Employment
 contracts           6,104,000    2,190,000   3,914,000       -            -

Operating  leases    3,011,000      759,000   1,665,000     587,000        -
                     ---------      -------   ---------     -------     -------

Total  contractual
    obligations    $18,344,000   $5,425,000 $10,403,000  $2,516,000        -

     The  Company's  existing  capital  resources,  including  its  bank  credit
facilities  and  its  cash  flow  from operations are expected to be adequate to
cover  the  Company's cash requirements for its operations. The Company believes
that  financing alternatives are available in order to fund future acquisitions.

     Inflation  has  not  materially  impacted  the  operations  of the Company.

Certain  Material  Trends
-------------------------

     In  April  2005,  the  Company  completed  the acquisition of Tulip and its
operations  became  part  of the Company's Electronics Group.  In December 2007,
the  Company  completed  the  acquisition  of  ICS which also became part of the
Electronics  Group.  The  Company's Electronics Group and the Custom Division of
its  Power  Group  are  heavily  dependent  on military spending.  The events of
September  11,  2001,  have  put  a  tremendous emphasis on defense and homeland
security  spending  and  the  Company  has  benefited from an increasing defense
budget.   Although  the  Electronics  Group and the Custom Division of the Power
Group  are  pursuing several opportunities for reorders, as well as new contract
awards,  the  Company  has  normally found it difficult to predict the timing of
such  awards.  In  addition,  the  Company  has  an  unprecedented amount of new
opportunities  that  are  in  the  prototype  or  pre-production  stage.  These
opportunities  generally  move  to  a  production  stage at a later date but the
timing  of  such  is  also  uncertain.


There  is  no  seasonality to the Company's business. The Company's revenues are
generally  determined  by the shipping schedules outlined in the purchase orders
received  from its customers. The Company stratifies all the opportunities it is
pursuing  by  various  confidence  levels. The Company generally realizes a very
high success rate with those opportunities to which it applies a high confidence
level.  The  Company  currently  has  a significant amount of potential contract
awards  to  which it has applied a high confidence level. However, because it is
difficult  to  predict  the  timing  of awards for most of the opportunities the
Company  is  pursuing,  it  is  also  difficult to predict when the Company will
commence  shipping under these contracts. A delay in the receipt of any contract
from  its  customer  ultimately  causes a corresponding delay in shipments under
that contract. During 2007, due to shipping schedules, the Company's second half
of  the  year  was  stronger  than the first half. Once again for 2008, based on
current and projected shipping schedules, the Company expects the second half of
2008  to  be  stronger  than  the  first  half.

Despite the increase in military spending, the Company still faces a challenging
environment.  The  government is emphasizing the engineering of new and improved
weaponry  and  it  continues  to be our challenge to work with each of our prime
contractors  so  that  we  can  participate on these new programs.  In addition,
these  new  contracts  require incurring up-front design, engineering, prototype
and  pre-production  costs.  While  the  Company  attempts to negotiate contract
awards  for  reimbursement  of  product  development, there is no assurance that
sufficient  monies  will  be  set  aside  by its customers, including the United
States  Government,  for  such  effort.  In  addition, even if the United States
Government  agrees  to reimburse development costs, there is still a significant
risk  of  cost  overrun  that  may  not  be reimbursable.  Furthermore, once the
Company has completed the design and pre-production stage, there is no assurance
that funding will be provided for future production.  In such event, even if the
Company is reimbursed its development costs it will not generate any significant
profits.

     The  Company  is  heavily  dependent  upon military spending as a source of
revenues  and  income.  However,  even  increased  military  spending  does  not
necessarily  guarantee  the  Company  increased revenues, particularly, when the
allocation  of  budget  dollars  may  vary  depending  on what may be needed for
specific  military  conflicts   Any  future  reductions in the level of military
spending  by  the  United States Government due to budget constraints or for any
other  reason, could have a negative impact on the Company's future revenues and
earnings.  In  addition, due to major consolidations in the defense industry, it
has  become  more difficult to avoid dependence on certain customers for revenue
and  income.  Behlman's  line  of  commercial  products  gives  the Company some
diversity  and  the  additions  of Tulip and ICS gives the Electronics Segment a
more  diversified  customer  base.

     The  Company's  business  strategy  is  to  expand  its  operations through
strategic,  accretive acquisitions.  Through the past several years, the Company
reviewed  various  potential  acquisitions  and  believes  there  are  numerous
opportunities  presently available.  In April 2005, it completed the acquisition
of  Tulip  and  in  December  2007,  it completed the acquisition of ICS.    The
Company  has  received  offers  from  several  financial  institutions that have
expressed  an  interest  in  helping  the  Company  with  acquisition financing.
However,  there  can  be  no assurance it will obtain the necessary financing to
complete  additional acquisitions and even if it does, there can be no assurance
that  we  will have sufficient income from operations of such acquired companies
to satisfy the interest payments, in which case, we will be required to pay them
out  of  Orbit's  operations  which  may  be  adversely  affected.  The  Company
continues  to  review  acquisition  candidates but there is no assurance that an
acquisition  will  be  completed  in  2008.

In  the  first quarter of 2007, the Company hired an investment banker to assist
the  Company  in its efforts to pursue strategic acquisitions. During the second
quarter of 2007, the Company expanded the activities of its investment banker to
include  the  pursuit of alternative strategies, including the potential sale of
the  Company  as  a  means of enhancing shareholder value.  However, there is no
assurance  that  a  sale  or  any  of  the  other strategic alternatives will be
accomplished.

ITEM  7A.     QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

     As  of December 31, 2007, the Company had amounts due to its primary lender
under three separate term loans totaling approximately $8,530,000.  Interests on
these  term  loans  are  equal  to  the  sum  of  either 1.15% or 1.50% plus the
one-month  LIBOR.  In addition, the Company has a $3,000,000 line of credit with
the  same  lender  at a rate equal to the sum of 1.50% plus the one-month LIBOR.
The Company had approximately $699,000 in borrowings under the line of credit at
December  31,  2007.  During  2006,  LIBOR  averaged approximately 5.32% and was
4.60%  at  December  31,  2007.

We  are subject to changes in the prime rate based on the actions of the Federal
Reserve  that  are  generally  determined  by  general  market  and  economic
fluctuations.  Any  hypothetical increase of 1% in interest rates will result in
an increase of approximately $85,000 of annual interest expense exclusive of the
impact  of  any  borrowings  under  the  Company's  line  of  credit.

None  of  the Company's variable rate of interest arrangements are hedged by any
derivative  instruments.  The  Company  believes that any moderate interest rate
increases  will  not  have  any  material  adverse  effect  on  its  results  of
operations,  liquidity  or  financial  position.

The  Company  believes  that  it is not subject in any material way to any other
forms  of  market  risk.

ITEM  8     .     FINANCIAL  STATEMENTS  AND  SUPPLEMENTARY  DATA

The  information  required  under  this  Item appears in Item 15 of this report.


ITEM  9.     CHANGES  IN  AND  DISAGREEMENTS  WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL  DISCLOSURE

     None.


ITEM  9A(T).     CONTROLS  AND  PROCEDURES

     DISCLOSURE  CONTROLS  AND  PROCEDURES

     The  Company's  management, including the Company's Chief Executive Officer
and  Chief  Financial  Officer, evaluated the effectiveness of the design of the
Company's  disclosure  controls and procedures, as defined in Rules 13a-15(e) or
15d-15(e)  under the Securities Exchange Act of 1934 as of the end of the period
covered  by  this report.  Based on that evaluation, the Chief Executive Officer
and the Chief Financial Officer concluded that the Company's disclosure controls
and  procedures  are  effective.

     There have been no changes in our internal control over financial reporting
during  the three months ended December 31, 2007, that have materially affected,
or  are  reasonably  likely  to  materially  affect,  our  internal control over
financial  reporting.


     MANAGEMENT'S  REPORT  ON  INTERNAL  CONTROL  OVER  FINANCIAL  REPORTING

     The  Company's  management  is responsible for establishing and maintaining
adequate  internal  control  over  financial reporting as defined in Rules 13a -
15(f)  of  the  Securities  Exchange  Act  of  1934.

     The  Company's  management  conducted an evaluation of the effectiveness of
its internal control over financial reporting, as of December 31, 2007, based on
the  framework  and  criteria  established  in  Internal  Control  -  Integrated
Framework,  issued  by the Committee of Sponsoring Organizations of the Treadway
Commission.  This  evaluation  included review of the documentation of controls,
evaluation  of  the  design  effectiveness of controls, testing of the operating
effectiveness  of  controls  and  a conclusion on this evaluation. Based on this
evaluation,  management  concluded  that  the  Company's  internal  control over
financial  reporting  was  effective  as  of  December  31,  2007.

     This  annual report does not include an attestation report of the Company's
independent  registered  public  accounting firm regarding internal control over
financial  reporting.  Management's report was not subject to attestation by the
Company's  independent  registered  public accounting firm pursuant to temporary
rules  of  the  Securities  and  Exchange  Commission that permit the Company to
provide  only  management's  report  in  this  annual  report.

     We  believe  that  a  controls  system,  no  matter  how  well designed and
operated, can not provide absolute assurance that the objectives of the controls
system  are  met,  and  no evaluation of controls can provide absolute assurance
that  all  control  issues and instances of fraud, if any, within a company have
been  detected.

ITEM  9B.     OTHER  INFORMATION

     There  have  not  been  any other material changes in the Company's affairs
which  have not been described in a report on Form 8-K during the fourth quarter
ended  December  31,  2007.


          PART  III
          ---------

ITEM  10.     DIRECTORS,  EXECUTIVE  OFFICERS,  AND  CORPORATE     GOVERNANCE.

     Incorporated by reference to the Company's definitive proxy statement to be
filed  pursuant  to Regulation 14A promulgated under the Securities Exchange Act
of  1934  in  connection with the Company's 2008 Annual Meeting of Stockholders.

ITEM  11.     EXECUTIVE  COMPENSATION

     Incorporated by reference to the Company's definitive proxy statement to be
filed  pursuant  to Regulation 14A promulgated under the Securities Exchange Act
of  1934  in  connection with the Company's 2008 Annual Meeting of Stockholders.

ITEM  12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED  STOCKHOLDER  MATTERS

     Incorporated by reference to the Company's definitive proxy statement to be
filed  pursuant  to Regulation 14A promulgated under the Securities Exchange Act
of  1934  in  connection with the Company's 2008 Annual Meeting of Stockholders.

ITEM  13.     CERTAIN  RELATIONSHIPS,  RELATED  TRANSACTIONS  AND
DIRECTOR  INDEPENDENCE

     Incorporated by reference to the Company's definitive proxy statement to be
filed  pursuant  to Regulation 14A promulgated under the Securities Exchange Act
of  1934  in  connection with the Company's 2008 Annual Meeting of Stockholders.

ITEM 14.     PRINCIPAL ACCOUNTANT FEES AND SERVICES

          Incorporated  by reference to the Company's definitive proxy statement
to be filed pursuant to Regulation 14A promulgated under the Securities Exchange
Act  of  1934  in  connection  with  the  Company's  2008  Annual  Meeting  of
Shareholders.

ITEM  15.     EXHIBITS,  FINANCIAL  STATEMENT  SCHEDULES

     (a) The following documents are filed as part of this Annual Report on Form
10-K  for  the  fiscal  year  ended  December  31,  2007.

1  .     Financial  Statements


2.       Schedules-
         None.


3.     Exhibits:

Exhibit  No.     Description  of  Exhibit
------------     ------------------------

2.1               Stock  Purchase  Agreement,  dated  December  13, 2004, by and
among  Orbit          International  Corp.,  Tulip  Development  Laboratory, TDL
Manufacturing,  Inc.          and  the  respective  Shareholders  of  Tulip
Development  Laboratory, Inc. and TDL          Manufacturing, Inc.  Incorporated
by  reference to Exhibit 2.1 to Registrant's          Current Report on Form 8-K
for  December  13,  2004.

2.2     Stock  Purchase  Agreement,  dated December 19, 2007, by and among Orbit
International  Corp.,  Integrated  Consulting  Services, Inc. and the respective
shareholders  of  Integrated Consulting Services, Inc. Incorporated by reference
to Exhibit 2.1 to Registrant's Current Report on Form 8-K for December 19, 2007.

  3.1     Certification of Incorporation, as amended.  Incorporated by reference
to  Exhibit  3(a) to Registrant's Annual Report on Form 10-K for the fiscal year
ended  June  30,  1991.

  3.2     By-Laws,  as  amended.  Incorporated  by  reference to Exhibit 3(b) to
Registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1988.

  4.1     Orbit  International Corp. 2003 Stock Incentive Plan.  Incorporated by
reference to Registrant's Annual Report on Form 10-KSB for the fiscal year ended
December  31,  2002.

  10.1     New  Employment  Agreement,  dated  as  of December 14, 2007, between
Registrant  and  Mitchell  Binder.  Incorporated  by  reference  to Registrant's
Current  Report  on  Form  8-K  for  December  11,  2007.

  10.2     New  Employment  Agreement,  dated  as  of December 14, 2007, between
Registrant  and  Bruce  Reissman.  Incorporated  by  reference  to  Registrant's
Current  Report  on  Form  8-K  for  December  11,  2007.

  10.3     New  Employment  Agreement,  dated  as  of December 14, 2007, between
Registrant  and  Dennis  Sunshine.  Incorporated  by  reference  to Registrant's
Current  Report  on  Form  8-K  for  December  11,  2007.

  10.4     Form of Indemnification Agreement between the Company and each of its
Directors  dated  as of September 10, 2001. Incorporated by reference to Exhibit
10(d)  to  Registrant's Annual Report on Form 10-KSB for the year ended December
31,  2001.

  10.5     Purchase  and  Sale Agreement between the Company and 80 Cabot Realty
LLC  dated  February  26,  2001.  Incorporated  by  reference to Exhibit 4(b) to
Registrant's Annual Report on Form 10-KSB for the fiscal year ended December 31,
2000.

  10.6     Lease  Agreement  between  the  Company and 80 Cabot Realty LLC dated
February  26,  2001.  Incorporated  by reference to Exhibit 4(b) to Registrant's
Annual  Report  on  Form  10-KSB  for  the  fiscal year ended December 31, 2000.

  10.7     Term  Loan  and  Security  Agreement  dated  as of December 19, 2007,
between  Orbit International Corp. and Merrill Lynch Business Financial Services
Inc.  ("MLBFS").  Incorporated  by  reference  to  Exhibit  10.6 to Registrant's
Current  Report  on  Form  8-K  for  December  19,  2007.

  10.8     Employment  Agreement  dated  April 4, 2005 between Tulip Development
laboratory,  Inc.  and  Richard  Hetherington.  Incorporated  by  reference  to
Registrant's  Current  Report  on  Form  8-K  for  April  4,  2005.

  10.9     Custody,  Pledge and Security Agreement dated as of April 4, 2005, by
and  among  the  Company and Richard Hetherington, Joanne Hetherington, Larry M.
Bateman  and  Stephen  Hill.   Incorporated by reference to Registrant's Current
Report  on  Form  8-K  for  April  4,  2005.

  10.10     Net  Lease  dated  as  of  April  4,  2005  by  and  between  Rudy's
Thermo-Nuclear  Devices,  as  Landlord,  and  TDL  Manufacturing, Inc. and Tulip
Development  Laboratory, Inc.  Incorporated by reference to Registrant's Current
Report  on  Form  8-K  for  April  4,  2005.

  10.11     Term  Loan  and Security Agreement dated as of April 4, 2005 between
the  Company and Merrill Lynch Financial Business Services Inc.  Incorporated by
reference  to  Registrant's  Current  Report  on  Form  8-K  for  April 4, 2005.

10.12                 Collateral  Installment  Note  to  Merrill Lynch Financial
Business  Services  Inc.  dated  as  of  April  4,  2005,  from  the  Company.
Incorporated  by  reference to Registrant's Current Report on Form 8-K for April
4,  2005.

10.13     Employment  Agreement,  dated  December  19,  2007, between Integrated
Consulting  Services,  Inc.  and  Kenneth  J.  Ice. Incorporated by reference to
Registrant's  Current  Report  on  Form  8-K  for  December  19,  2007.

10.14     Employment  Agreement,  dated  December  19,  2007, between Integrated
Consulting  Services,  Inc.  and  Michael R. Rhudy. Incorporated by reference to
Registrant's  Current  Report  on  Form  8-K  for  December  19,  2007.

10.15     Employment  Agreement,  dated  December  19,  2007, between Integrated
Consulting  Services,  Inc. and Julie A. McDearman. Incorporated by reference to
Registrant's  Current  Report  on  Form  8-K  for  December  19,  2007.

10.16     Custody, Pledge and Security Agreement, dated as of December 19, 2007,
by  and  among Orbit International Corp. ("Pledgor"), Kenneth J. Ice, Michael R.
Rhudy and Julie A. McDearman ("Pledgees"), and Phillips Nizer LLP ("Custodian").
Incorporated  by  reference  to  Registrant's  Current  Report  on  Form 8-K for
December  19,  2007.

10.17     Form  of Contingent Promissory Note (three substantially similar notes
were  issued)  from Orbit International Corp. to Kenneth J. Ice. Incorporated by
reference  to  Registrant's  Current  Report  on Form 8-K for December 19, 2007.

  14.1     Form  of  Code  of Ethics between the Company and its Chief Executive
Officer,  Chief Financial Officer and Chief Accounting Officer.  Incorporated by
reference to Registrant's Annual Report on Form 10K-SB for the fiscal year ended
December  31,  2003.

  21.1*     Subsidiaries  of  Registrant.

  23.1*     Consent  of  McGladrey  &  Pullen,  LLP.

  23.2*     Consent  of  Goldstein  Golub  Kessler  LLP.

  31.1*     Certification  of  the  Chief  Executive  Officer  required  by Rule
13a-14(a)  or  Rule  15d-14(a)  and  18  U.S.C.  1350.

  31.2*     Certification  of  the  Chief  Financial  Officer  required  by Rule
13a-14(a)  or  Rule  15d-14(a)  and  18  U.S.C.  1350.

  32.1*     Certification  of  the  Chief  Executive  Officer  required  by Rule
13a-14(b)  or  Rule  15d-14(b)  and  18  U.S.C.  1350.

  32.2*     Certification  of  the  Chief  Financial  Officer  required  by Rule
13a-14(b)  or  Rule  15d-14(b)  and  18  U.S.C.  1350.
_________
     *  Filed  herewith.





<PAGE>
ORBIT INTERNATIONAL CORP.
 AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2007

<PAGE>

                                      ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES

                                      INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
                                      ------------------------------------------
<TABLE>
<CAPTION>
<S>                                                                                    <C>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - MCGLADREY & PULLEN, LLP      F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - GOLDSTEIN GOLUB KESSLER LLP  F-2

CONSOLIDATED FINANCIAL STATEMENTS:

   Balance Sheet as of December 31, 2007 and 2006                                      F-3
   Statement of Operations for the Years Ended December 31, 2007 and 2006              F-4
   Statement of Stockholders' Equity for the Years Ended December 31, 2007 and 2006    F-5
   Statement of Cash Flows for the Years Ended December 31, 2007 and 2006           F-6 - F-7
   Notes to Consolidated Financial Statements                                       F-8 - F-23
 </TABLE>



<PAGE>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




To  the  Stockholders  and  Board  of  Directors
Orbit  International  Corp.


We  have audited the consolidated balance sheet of Orbit International Corp. and
Subsidiaries as of December 31, 2007, and the related consolidated statements of
operations, stockholders' equity, and cash flows for the year then ended.  These
financial  statements  are  the responsibility of the Company's management.  Our
responsibility  is  to express an opinion on these financial statements based on
our  audit.

We  conducted  our  audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test  basis,  evidence  supporting  the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.  We  believe  that  our  audit  provides  a
reasonable  basis  for  our  opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly,  in all material respects, the financial position of Orbit International
Corp.  and  Subsidiaries  as  of  December  31,  2007,  and the results of their
operations  and their cash flows for the year then ended in conformity with U.S.
generally  accepted  accounting  principles.

We were not engaged to examine management's assertion about the effectiveness of
Orbit  International  Corp.  and  Subsidiaries'  internal control over financial
reporting  as  of  December  31,  2007 included in the accompanying Management's
Report  on Internal Control Over Financial Reporting and, accordingly, we do not
express  an  opinion  thereon.

MCGLADREY  &  PULLEN,  LLP
New  York,  New  York

March  31,  2008

<PAGE>

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




To  the  Stockholders  and  Board  of  Directors
Orbit  International  Corp.


We  have  audited  the  accompanying  consolidated  balance  sheet  of  Orbit
International  Corp.  and  Subsidiaries  as of December 31, 2006 and the related
consolidated  statements of operations, stockholders' equity, and cash flows for
the  year  then ended.  These financial statements are the responsibility of the
Company's  management.  Our  responsibility  is  to  express an opinion on these
financial  statements  based  on  our  audit.

We  conducted  our  audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test  basis,  evidence  supporting  the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.  We  believe  that  our  audit  provides  a
reasonable  basis  for  our  opinion.

In  our  opinion,  the financial statements referred to above present fairly, in
all  material  respects, the financial position of Orbit International Corp. and
Subsidiaries  as  of  December  31, 2006 and the results of their operations and
their  cash  flows  for  the  year  then  ended in conformity with United States
generally  accepted  accounting  principles.

As  discussed  in  Note  3  to  the consolidated financial statements, effective
January  1,  2006,  the  Company adopted the fair value method of accounting for
stock-based  compensation  as  required  by  Statement  of  Financial Accounting
Standards  No.  123(R),  Share-Based  Payment.

GOLDSTEIN  GOLUB  KESSLER  LLP
New  York,  New  York

March  27,  2007

<TABLE>
<CAPTION>
ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
 <S>                                                                     <C>                     <C>          <C>
DECEMBER 31,                                                                   2007             2006
----------------------------------------------------------------------       ------           --------
ASSETS
Current Assets:
  Cash and cash equivalents                                             $ 3,576,000            $ 3,935,000
  Investments in marketable securities                                    3,997,000              4,062,000
  Accounts receivable, less allowance for doubtful accounts of $145,000   4,561,000              3,712,000
  Inventories                                                            10,453,000              8,992,000
  Costs and estimated earnings
   in excess of billings on uncompleted contracts                           136,000                    -
  Deferred tax asset                                                      1,025,000                717,000
  Other current assets                                                      331,000                145,000
                                                                        -----------             -----------
  Total current assets                                                   24,079,000             21,563,000

  Property and equipment, net                                               691,000                414,000
  Intangible assets, net                                                  2,969,000              1,204,000
  Goodwill                                                                9,634,000              6,135,000
  Deferred tax asset                                                      1,678,000              1,333,000
  Other assets                                                              634,000                566,000
                                                                          ---------             ----------
                                                                        $39,685,000            $31,215,000
                                                                        ===========            ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Current portion of long-term obligations                              $ 1,777,000            $ 1,124,000
  Notes payable - bank                                                      699,000                   -
  Accounts payable                                                        1,384,000              1,028,000
  Income taxes payable                                                      162,000                 36,000
  Accrued expenses                                                        1,395,000              1,317,000
  Customer advances                                                         163,000                797,000
  Deferred income                                                           332,000                 85,000
                                                                         ----------             ----------
  Total current liabilities                                               5,912,000              4,387,000
Deferred income                                                             342,000                427,000
Deferred tax liability                                                      595,000                    -
Long-term obligations, net of current maturities                          6,753,000              4,105,000
                                                                         ----------              ----------
  Total liabilities                                                      13,602,000              8,919,000


Stockholders' Equity:
  Common stock, $.10 par value, authorized 10,000,000 shares-
   issued and outstanding 4,724,000 and 4,588,000 shares, respectively      472,000                459,000
  Additional paid-in capital                                             20,766,000             19,536,000
  Accumulated other comprehensive (loss) gain                               (33,000)                 5,000
  Retained earnings                                                       4,878,000              2,296,000
                                                                        -----------             ----------
  Stockholders' equity                                                   26,083,000             22,296,000

  Total Liabilities and Stockholders' Equity                            $39,685,000            $31,215,000
                                                                        ===========            ===========
</TABLE>

See Notes to Consolidated Financial Statements

<TABLE>
<CAPTION>

ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

<S>                                           <C>           <C>
<S>                                           <C>           <C>
YEAR ENDED DECEMBER 31,                              2007          2006
----------------------                        -----------   -------------

Net sales                                     $25,885,000   $25,015,000

Cost of sales                                  14,659,000    14,186,000
                                              -----------    -----------
Gross profit                                   11,226,000    10,829,000

Selling, general and administrative expenses    8,729,000     8,285,000

Interest expense                                  332,000       443,000

Investment and other income, net                 (447,000)     (358,000)
                                              -----------     ---------
Total expenses, net                             8,614,000     8,370,000
                                              -----------     ----------
Income before income tax provision              2,612,000     2,459,000

Income tax provision                               30,000        40,000
                                              -----------   -----------
Net income                                    $ 2,582,000   $ 2,419,000
                                              ===========  =============

Net income per common share:

    Basic                                     $       .59   $       .56
                                              ===========   ============
    Diluted                                   $       .55   $       .52
                                              ===========   ============

See Notes to Consolidated Financial Statements

</TABLE>
<TABLE>
<CAPTION>
<S>                                      <C>                                             <C>           <C>
ORBIT INTERNATIONAL CORP.
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY
YEARS ENDED DECEMBER 31, 2007 AND 2006
                                       COMMON STOCK
                                      10,000,000 SHARES
                                         AUTHORIZED             ADDITIONAL  RETAINED EARNINGS              OTHER
                                   SHARES                       PAID-IN      (ACCUMULATED     UNEARNED     COMPREHENSIVE
                                   ISSUED         AMOUNT        CAPITAL        DEFICIT)       COMPENSATION INCOME(LOSS)       TOTAL
                                   ---------      ---------     ---------    -----------      -----------  -----------    ---------

Balance at December 31, 2005       4,575,000  $    457,000    $ 20,600,000    $ (123,000)     $(1,340,000)   $(4,000)   $19,590,000

Share-base compensation expense        -             -             210,000          -              -           -            210,000

Reversal of unearned compensation
 upon adoption of SFAS 123(R)          -             -          (1,340,000)        -            1,340,000       -             -

Exercise of options                   13,000         2,000          19,000         -                -           -            21,000

Tax benefit of stock option exercise   -              -             47,000         -                -           -            47,000

Other comprehensive income             -              -              -             -                -          9,000          9,000

Net income                             -              -              -         2,419,000            -           -         2,419,000
                                    -------        -------       ---------    ----------       -----------   --------   -----------
Balance at December 31, 2006       4,588,000      459,000       19,536,000     2,296,000            -          5,000     22,296,000

Stock-based compensation expense        -             -            180,000         -                -           -           180,000

Issuance of common stock for
 ICS acquisition                     120,000       12,000          983,000          -               -           -           995,000

Exercise of options                   16,000        1,000           28,000         -                -           -            29,000

Tax benefit of stock option exercise    -             -             39,000         -                -           -            39,000

Other comprehensive loss                -             -               -            -                -        (38,000)       (38,000)

Net income                              -             -               -         2,582,000           -           -         2,582,000
                                      ------        ------        --------    -----------        ----------   --------   ----------
Balance at December 31, 2007        4,724,000  $   472,000   $  20,766,000    $ 4,878,000           -       $(33,000)   $26,083,000
                                   ==========  ===========   =============    ==========        ==========  ========     ===========
<FN>
See Notes to Consolidated Financial Statements

</TABLE>

<TABLE>
<CAPTION>

ORBIT INTERNATIONAL CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS

<S>                                                                       <C>
<S>                                                                       <C>
YEAR ENDED DECEMBER 31,                                                          2007                      2006
------------------------                                                     --------                     -----

Cash flows from operating activities:

  Net income                                                              $  2,582,000                  $2,419,000

  Adjustments to reconcile net income to net cash provided by
     operating activities:

    Share-based compensation expense                                           180,000                     210,000
    Amortization of intangible assets                                          435,000                     435,000
    Depreciation and amortization                                              126,000                     131,000
    Bond premium amortization                                                   14,000                      40,000
    Bad debts                                                                    6,000                      32,000
    Unrealized loss on write down of marketable securities                      50,000                         -
    Gain on sale of marketable securities                                      (15,000)                     (8,000)
    Deferred income                                                            (85,000)                    (86,000)
    Changes in operating assets and liabilities:
      Increase in accounts receivable                                         (276,000)                    (49,000)
      (Increase) decrease in inventories                                    (1,109,000)                     63,000
      Increase in other current assets                                          (7,000)                    (15,000)
     (Increase) decrease in other assets                                       (57,000)                    632,000
      Increase in accounts payable                                             260,000                     171,000
     (Decrease) increase in customer advances                                 (634,000)                    541,000
     (Decrease) increase in taxes payable                                       (6,000)                      6,000
      Increase (decrease) in accrued expenses                                   13,000                    (100,000)
                                                                            ----------                   ----------
  NET CASH PROVIDED BY OPERATING ACTIVITIES                                  1,477,000                   4,422,000



Cash flows from investing activities:

    Purchase of marketable securities                                        (1,269,000)                 (3,387,000)
    Sale of marketable securities                                             1,226,000                     314,000
    Purchase of property and equipment                                         (143,000)                   (188,000)
    Cash paid for acquisition of ICS, net of cash received of $1,942,000     (3,660,000)                       -
    Additional Tulip acquisition costs                                             -                         (5,000)
                                                                             -----------                 -----------
  NET CASH USED IN INVESTING ACTIVITIES                                       (3,86,000)                 (3,266,000)



Cash flows from financing activities:

  Repayments of long-term debt                                               (4,268,000)                 (1,175,000)
  Proceeds from issuance of long-term debt                                    6,249,000                        -
  Proceeds from exercise of stock options                                        29,000                      21,000
                                                                            -----------                   ----------
                                                                              2,010,000                  (1,154,000)
<FN>


                                                                                                                    (continued)
</TABLE>


<TABLE>
<CAPTION>
                                                              CONSOLIDATED STATEMENT OF CASH FLOWS
                                                              ------------------------------------
                                                                                       (CONTINUED)


<S>                                                   <C>          <C>        <C>         <C>
<S>                                                   <C>          <C>        <C>         <C>
Net (decrease) increase in cash and cash equivalents                          (359,000)                      2,000

Cash and cash equivalents at beginning of year                               3,935,000                   3,933,000
                                                                           -----------                  -----------
Cash and cash equivalents at end of year                                    $3,576,000                  $3,935,000
                                                                            ==========                  ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
----------------------------------------------------

  Cash paid during the year for interest                                    $  358,000                   $ 452,000
                                                                            ==========                   =========
  Cash paid during the year for income taxes                                $   36,000                   $  34,000
                                                                           ===========                   =========
<FN>



SUPPLEMENTAL  SCHEDULE  OF  NONCASH  INVESTING  AND  FINANCING  ACTIVITIES:

In  December  2007,  the  Company  purchased  all  of  the capital stock of ICS for $6,600,000. In
conjunction  with  the  acquisition,  net  assets  with  a  fair  value of $899,000 were acquired.

In connection with the aforementioned acquisition, approximately 120,000 shares of Orbit, $.10 par
value  common  stock,  valued at approximately $1,000,000 was issued to the former shareholders of
ICS.
</TABLE>

See Notes to Consolidated Financial Statements

                                      ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES

                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                      ------------------------------------------

  1.   ORGANIZATION  AND  BUSINESS:
  ---------------------------------
     The  consolidated  financial  statements  include  the  accounts  of  Orbit
International  Corp.  and  its  wholly  owned  subsidiaries  (collectively,  the
"Company").  All  significant  intercompany transactions have been eliminated in
consolidation.

The  Company  currently operates in two industry segments, the Electronics Group
and  the  Power Group. The Electronics Group is comprised of the Company's Orbit
Instrument  Division  ("Orbit"),  its  Tulip  subsidiary  ("Tulip"),  and  newly
acquired  Integrated  Consulting Services, Inc. d/b/a Integrated Combat Systems,
Inc.  ("ICS").  Orbit  and  Tulip  are  engaged in the design and manufacture of
electronic  components  and  subsystems. ICS performs system integration for gun
weapons  systems  and  fire  control  interface as well as logistics support and
documentation.  The Power Group is comprised of the Company's Behlman subsidiary
and  is  engaged  in  the  design  and  manufacture  of  commercial power units.

  2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
-------------------------------------------------

     The  preparation  of  consolidated  financial statements in conformity with
accounting  principles  generally  accepted  in  the  United  States  of America
requires  management  to  make  estimates  and  assumptions  that  affect  the
consolidated  financial statements and accompanying notes.  Actual results could
differ  from  those  estimates.

     The  Company  considers  all  highly  liquid investments with a maturity of
three  months  or  less  when  purchased  to  be  cash  equivalents.

     The  Company  maintains  cash  in  bank  deposit accounts, which, at times,
exceed  federally insured limits.  The Company has not experienced any losses on
these  accounts.

The  Company's  investments  are classified as available-for-sale securities and
are  stated  at  fair  value, based on quoted market prices, with the unrealized
gains  and  losses,  net  of income tax, reported in other comprehensive income.
Realized  gains  and  losses  and  declines  in  value  judged  to  be
other-than-temporary on available-for-sale securities are included in investment
income.  The  cost  of  securities  sold is based on the specific-identification
method.  Interest  and  dividends  on such securities are included in investment
income.

     Accounts  receivable  are  reported  at  their outstanding unpaid principal
balances  reduced  by an allowance for doubtful accounts.  The Company estimates
doubtful  accounts  based  on  historical bad debts, factors related to specific
customers'  ability  to pay and current economic trends.  The Company writes off
accounts  receivable  against  the  allowance when a balance is determined to be
uncollectible.

     Inventories  are  priced  at  the  lower  of  cost  (specific,  average and
first-in,  first-out  basis)  or  market.

     Property  and equipment is recorded at cost.  Depreciation and amortization
of  the respective assets are computed using the straight-line method over their
estimated  useful  lives ranging from 3 to 10 years.  Leasehold improvements are
amortized using the straight-line method over the remaining term of the lease or
the  estimated  useful  life  of  the  improvement,  whichever  is  less.


When  impairment  indicators are present, the Company reviews the carrying value
of  its  long-lived  assets  in determining the ultimate recoverability of their
unamortized  values  using  future  undiscounted  cash  flow  analyses.


     The  Company  recognizes  deferred  tax assets and liabilities based on the
expected  future  tax  consequences  of  events  that  have been included in the
financial  statement  or tax returns. Under this method, deferred tax assets and
liabilities  are  determined  based  on  the  difference  between  the financial
statement  and  tax  bases  of assets and liabilities using enacted tax rates in
effect  for the year in which the differences are expected to reverse. Valuation
allowances  have  been  established  to reduce deferred tax assets to the amount
expected  to  be  realized.


     Substantially  all  of the Company's revenue is recognized from the sale of
tangible  products.  The  Company records sales upon delivery of the units under
its  manufacturing  contracts.  ICS  records  revenue on its long-term contracts
under  the  percentage-of-completion  method.


All  contracts are for products made to specific customer specifications with no
right  of  return.  All  units  are  shipped  with  a  one-year  warranty.


     The  Company's  freight and delivery costs were $79,000 and $90,000 for the
years  ended  December 31, 2007 and 2006, respectively. These costs are included
in  selling,  general  and  administrative  expenses.


     The fair value of the Company's long-term obligations is estimated based on
the  current  rates  offered  to  the  Company  for  debt  of  similar terms and
maturities.  Using  this  method,  the  Company's  fair  value  of  long-term
obligations  was  not  significantly different from the stated value at December
31,  2007  and  2006.


     Research  and  development  costs  are expensed when incurred.  The Company
expensed  approximately  $1,203,000  and $1,110,000 for research and development
during  the  years ended December 31, 2007 and 2006. These expenses are included
in  selling,  general  and  administrative  expenses.


Effective  January  1,  2006,  the  Company  began  recognizing  share-based
compensation, under Statement of Financial Accounting Standards ("SFAS") No. 123
(R),  Share  Based Payment, for all awards granted during and after 2006 and for
the  unvested  portion of previous award grants based on each award's grant date
fair  value.  The  Company  implemented Statement No. 123 (R) using the modified
prospective  transition  method.  Under  this  transition  method  the Company's
financial  statements,  pertaining  to periods prior to adoption of SFAS No. 123
(R)  have  not  been adjusted to reflect fair value of share-based compensation.
Prior  to  January  1,  2006,  the  Company  accounted for these plans under the
recognition  and  measurement  provisions of Accounting Principles Board ("APB")
Opinion  No.  25,  Accounting  for  Stock  Issued  to  Employees,  and  related
interpretations,  as permitted by Statement of Financial Accounting ("SFAS") No.
123,  Accounting  for  Stock-Based  Compensation.


NEW ACCOUNTING PRONOUNCEMENTS

     In September 2006, the Financial Accounting Standards Board ("FASB") issued
SFAS  No. 157, "Fair Value Measurements" ("SFAS No. 157").  SFAS No. 157 defines
fair  value,  establishes  a  framework  for  measuring  fair value in generally
accepted  accounting  principles,  and  expands  disclosures  about  fair  value
measurements.  SFAS  No.  157 applies under other accounting pronouncements that
require or permit fair value measurements and, accordingly, does not require any
new  fair  value  measurements.  SFAS  No.  157  emphasizes that fair value is a
market-based measurement that should be determined based on the assumptions that
market  participants would use in pricing an asset or liability.  Companies will
be required to disclose the extent to which fair value is used to measure assets
and  liabilities,  the inputs used to develop the measurements and the effect of
certain  of  the  measurements  on  earnings  (or changes in net assets) for the
period.  SFAS  No.  157  and FASB Staff Position ("FSB") 157-b are effective for
fiscal  years beginning after November 15, 2007 and interim periods within those
years.  As  proposed  the  effective  date  of SFAS No. 157 would be deferred to
fiscal  years  beginning  after November 15, 2008 and for interim periods within
those  years  for  certain non financial assets and liabilities.  The Company is
currently  evaluating  the  effect,  if  any, that SFAS No. 157 will have on its
consolidated  financial position or results of operations.  However, the Company
does  not  expect  the adoption of SFAS No. 157 to have a material effect on its
financial  position  or  results  of  operations.

     In  February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial  Assets  and  Financial  Liabilities  - Including an amendment to FASB
Statement  No. 115 ("SFAS 159"). This statement provides entities with an option
to report selected financial assets and liabilities at fair value. The statement
is  effective  as  of the beginning of the Company's first fiscal year beginning
after November 15, 2007. The Company is currently evaluating the effect, if any,
that SFAS No. 159 will have on its consolidated financial position or results of
operations.  However,  the  Company does not expect the adoption of SFAS No. 159
to  have  a  material effect on its financial position or results of operations.

     In  December  2007,  the  FASB issued SFAS No. 141(Revised 2007), "Business
Combinations"  ("SFAS  No.  141R").  This  statement  requires  an  acquirer  to
recognize  the  assets acquired, the liabilities assumed, and any noncontrolling
interest  in the acquired at the acquisition date, measured at their fair values
as  of  that  date,  with  limited  exceptions  specified in the Statement. That
replaces  Statement 141's cost-allocation process, which required the cost of an
acquisition  to  be  allocated to the individual assets acquired and liabilities
assumed  based on their estimated fair values. Statement 141's guidance resulted
in  not  recognizing some assets and liabilities at the acquisition date, and it
also  resulted  in  measuring  some assets and liabilities at amounts other than
their  fair values at the acquisition date. This Statement applies prospectively
to  business  combinations  for  which  the  acquisition date is on or after the
beginning  of  the  first annual reporting period beginning on or after December
15, 2008. An entity may not apply it before that date. SFAS No. 141R will impact
the  Company  in  the  event  of  any  future  acquisitions.

For  comparability,  certain  2006  amounts  have  been  reclassified,  where
appropriate,  to  conform  to  the  financial  statement  presentation  in 2007.

  3.  ACQUISITION:
-------------------

On  December  19,  2007,  the Company acquired all of the issued and outstanding
stock  of  Integrated Consulting Services, Inc. d/b/a Integrated Combat Systems,
Inc.  ("ICS").  The  reasons  for  the  acquisition  were  the expansion of both
customer  and  product bases, cross-marketing opportunities and the accretion to
earnings. The acquisition was effective December 31, 2007. The total transaction
value  was  approximately  $6,600,000 consisting of $5,400,000 in cash, of which
$4,500,000  was  funded  by  a  term loan, approximately 120,000 shares of Orbit
stock  valued  at  approximately $1,000,000(based on the volume weighted average
closing  price  of the Company's common stock for the twenty consecutive trading
days  ending  December  14,  2007),  and  approximately $200,000 of direct costs
related  to the purchase of ICS. Additionally, there is a contingent earn out of
$1,000,000  payable  over  the next three years based on ICS's ability to attain
certain  revenue  levels over the three years. The ICS acquisition was accounted
for as a purchase, and accordingly, the assets purchased and liabilities assumed
are  included  in  the  consolidated  balance sheet as of December 31, 2007. The
operating  results  of  ICS  are  not  included  in  the  consolidated financial
statements  since  the  acquisition  was  not effective until December 31, 2007.

     In  accordance with SFAS No. 141, Business Combinations, the purchase price
was  allocated  to  the  tangible and intangible assets acquired and liabilities
assumed  based  on  their  estimated fair values. The excess purchase price over
those  fair values is recorded as goodwill. The fair values assigned to tangible
and  intangible  assets  acquired and liabilities assumed are based on estimates
and  assumptions  made  by management. In accordance with SFAS No. 142, Goodwill
and  Other  Intangible Assets, goodwill is not amortized but will be reviewed at
least  annually  for  impairment.  Purchased intangible assets with finite lives
will  be  amortized  on  a  straight-line  basis over their respective estimated
useful lives. Any additional goodwill relating to the $1,000,000 contingent earn
out  based on ICS's ability to attain certain revenue levels over the next three
years  will be recorded, if necessary, in future years. The total purchase price
has  been  allocated  as  follows:

     Tangible assets and liabilities:
      Cash                                     $1,942,000
      Accounts receivable                         579,000
      Inventory                                   352,000
      Other current assets                        315,000
      Property and equipment                      260,000
      Other long term assets                       11,000
      Accounts payable                           (111,000)
      Note payable                             (1,997,000)
      Accrued expenses                            (73,000)
      Income tax payable                         (132,000)
      Deferred income                            (247,000)
                                               -----------

     Total net tangible assets and liabilities    899,000

      Amortizable intangible assets:
      Customer relationships                    2,000,000
      Non-compete agreement                       100,000
               Contract backlog                   100,000
                                              -----------

     Total amortizable intangible assets        2,200,000

     Goodwill                                   3,499,000
                                               -----------

     Total purchase price                      $6,598,000
                                               ==========

     The  following  summarized  pro  forma  financial  information presents the
combined  results  of  the  Company as if the ICS acquisition had occurred as of
January  1,  2007 and 2006. Adjustments, which reflect amortization of purchased
intangible  assets,  interest on debt to finance the acquisition, elimination of
intercompany sales and purchases, recalculation of bonuses due to adjustments to
net income, adjustment to income taxes payable, and reversal of interest expense
incurred  by  ICS  have  been made to the combined results of operations for the
years  ended  December  31,  2007  and  2006. The unaudited summarized pro forma
financial  information  is presented for informational purposes only and may not
be  indicative  of what the actual results of operations would have been had the
acquisition  occurred  at  the  beginning  of  the periods presented nor does it
purport  to  represent  the  results  of  operations  for  future  periods.

                                            Years ended
                                            December 31,
                                       2007            2006
                                     (Pro forma and Unaudited)
                                       -------------------------

     Net  Sales                    $31,260,000          $31,893,000
                                   ============         ===========

     Net  Income                     3,104,000            2,748,000
                                     =========            =========

     Basic  earnings  per  share       0.69                  0.62
                                       ====                  ====

     Diluted  earnings  per  share     0.65                  0.58
                                       ====                  ====

  4.  INVENTORIES:
------------------

 Inventories  consist  of  the  following:

December 31,                     2007                 2006
                                 ----               --------

Raw materials               $  6,146,000           $ 5,245,000
Work-in-progress               3,639,000             3,138,000
Finished goods                   668,000               609,000
                           ------------           ------------
                             $10,453,000           $ 8,992,000
                          ==============           ===========

  5.  MARKETABLE SECURITIES:
----------------------------

Marketable  securities at December 31, 2007 and 2006 are
summarized  as  follows:


                                                      Unrealized
                                       Market         Holding
December 31, 2007           Cost       Value          Gain(loss)
-----------------           ----       -----          ----------

Equity Securities       $2,275,000    $2,275,000            -
Debt Securities          1,774,000     1,722,000     $  (52,000)
                        ----------    ----------     -----------
Total                   $4,049,000    $3,997,000     $  (52,000)
                         =========    ==========     ===========

December 31, 2006
-----------------

Equity Securities        $2,500,000   $2,500,000              -
Debt Securities           1,557,000    1,562,000     $    5,000
                         ----------   ----------     -----------
Total                    $4,057,000   $4,062,000     $    5,000
                          ==========   ==========    ===========

Maturities of marketable securities classified as available-for-sale at December
31,  2007  are  as  follows:

Due after one year through five years      1,018,000
Due after five years through ten years       701,000
Due after ten years                           55,000
                                            --------
                                          $1,774,000
                                          ==========
During  2007,  the  decline  in  market  value  of  certain  available-for-sale
securities  was  deemed  to  be  other  than temporary. Accordingly, the Company
charged  $50,000  against  investment  and  other  income-net,  to  record  the
impairment  in  value  of  these  securities.


 6.  COMPREHENSIVE  INCOME:
---------------------------

For  the  years ended December 31, 2007 and 2006, total comprehensive income was
$2,544,000  and  $2,428,000,  respectively. Comprehensive income consists of net
income  and  unrealized  gains  and  losses  on  marketable  securities.

  7.   INTANGIBLE  ASSETS:
--------------------------

The Company applies SFAS No. 142, Goodwill and Other Intangible Assets. SFAS 142
requires  that  an  intangible  asset  with  a finite life be amortized over its
useful  life and that goodwill and other intangible assets with indefinite lives
not  be  amortized  but  evaluated  for  impairment.

At December 31, 2007, the Company's intangible assets other than goodwill
consist of the following:

                      Estimated    Gross                         Net
                        Useful     Carrying     Accumulated      Carrying
                         Life      Value        Amortization     Value
                       -------     -------      ------------   ---------
Customer relationships  15 Years  $2,000,000    $    -         $2,000,000
Contract backlog       1-5 Years   1,750,000      (907,000)       843,000
Non-compete
 agreements              3 Years     415,000      (289,000)       126,000
                                  ----------    -----------     ---------
                                  $4,165,000   $(1,196,000)    $2,969,000
                                  ==========    ===========    ==========

At December 31, 2006, the Company's intangible assets other than goodwill
consist of the following:

   Estimated    Gross                         Net
                        Useful     Carrying     Accumulated      Carrying
                         Life      Value        Amortization     Value
                       -------     -------      ------------   ---------
Customer relationships  5 Years   $1,650,000     $(577,000)     $1,073,000
Non-compete
 agreements              3 Years     315,000      (184,000)        131,000
                                  ----------       -------     -----------
                                  $1,965,000     $(761,000)     $1,204,000
                                  ==========    ===========     ==========

Amortization expense for the next five years is expected to be as follows:

     Year ending December 31,

     2008     $    623,000
     2009          497,000
     2010          250,000
     2011          133,000
     2012          133,000
                ----------
Total           $1,636,000
                ==========

The Company recognized amortization expense of $435,000 for both of the years
ended December 31, 2007 and 2006.

  8.  PROPERTY  AND  EQUIPMENT:
--------------------------------
          Property  and  equipment  at  cost  ,  consists  of  the  following:

                                                    December 31,
                                               2007                2006
                                             ------              -------
Leasehold improvements                  $     206,000        $    132,000
Computer equipment                            429,000             279,000
Machinery and equipment                     1,384,000           1,326,000
Autos                                         101,000              60,000
Furniture and fixtures                        675,000             595,000
                                         ------------           ----------
                                            2,795,000           2,392,000
Accumulated depreciation and amortization  (2,104,000)         (1,978,000)
                                         ------------          -----------
                                        $     691,000        $    414,000
                                        =============        ============

The  Company  recognized  depreciation  and amortization expense of $126,000 and
$131,000  for  the  years  ended  December  31,  2007  and  2006,  respectively.

  9.  DEBT:
------------
     In  June  2007,  the  Company  entered  into  an  amended $3,000,000 credit
facility  with a commercial lender secured by accounts receivable, inventory and
property  and  equipment.  In  December  2007, the interest rate calculation was
amended.  The agreement will continue from year to year thereafter unless sooner
terminated  for  an  event  of  default  including non-compliance with financial
covenants.  Loans under the facility bear interest equal to a certain percentage
depending  on  a  matrix  related to a financial covenant (as defined), plus the
one-month  LIBOR. At December 31, 2007 the interest rate was equal to the sum of
1.50%  plus  the  one-month  LIBOR  (4.60%  at  December  31,  2007).Outstanding
borrowings  under  the  facility  were  $699,000  at  December  31,  2007.

The  Company's  long-term  debt  obligations  are  as  follows:
<TABLE>
<CAPTION>
<S>                                           <C>           <C>
December 31,
------------                                                                               2007                           2006
                                                                                           -----                          -----

Term  loan  agreement  collateralized  by  all  business  assets of the Company.
Payable in thirty (30) monthly payments of approximately $35,000. The loan bears
interest  equal  to the one-month LIBOR rate (4.6% at December 31, 2007) plus an
applicable  margin (1.15% at December 31, 2007), based on a matrix relating to a
financial  covenant,  as  defined.                                                      $   875,000                           -

Term  loan  agreement  collateralized  by  all  business  assets of the Company.
Payable  in  fifty-nine (59) monthly principal payments of approximately $60,000
and  a  sixtieth  payment of approximately $1,488,000 in 2010. In June 2007, the
interest  rate calculation was amended. The loan now bears interest equal to the
one-month  LIBOR  rate  (4.60%  at  December 31, 2007) plus an applicable margin
(1.15%  at December 31, 2007) based on a matrix relating to a financial covenant
(as  defined).  At December 31, 2006, the loan bore interest equal to the sum of
1.50%  plus  the  one-month  LIBOR  (5.3% at December 31, 2006.)                           3,155,000                    $3,869,000

Term  loan  agreement  collateralized  by  all  business  assets of the Company.
Payable  in  fifty-nine  (59)  monthly  payments  of approximately $54,000 and a
sixtieth  (60th)  payment  of  approximately  $1,339,000 in 2013. The loan bears
interest  equal to the one-month LIBOR rate (4.60% at December 31, 2007) plus an
applicable  margin (1.50% at December 31, 2007), based on a matrix relating to a
financial  covenant,  as  defined.                                                          4,500,000                        -

Promissory  note  with the former shareholders of Tulip, collateralized by Tulip
stock,  at  an  interest  rate of Prime (8.25% at December 31, 2006) plus 2.00%,
payable  in  quarterly  principal installments of $100,000 through 2010. In June
2007,  the  Company  refinanced  the balance due on the Promissory note with its
primary  commercial  lender.                                                                    -                        1,350,000

Capitalized  lease  obligation  collateralized by certain machinery, interest at
8.6%,  payable  in  monthly  installments  of $870 through 2007.                                -                           10,000
                                                                                            ----------                 -----------

                                                                                            8,530,000                    5,229,000
Less:  current  portion                                                                     1,777,000                    1,124,000
                                                                                           -----------                 ------------
                                                                                           $6,753,000                   $4,105,000
                                                                                           ==========                  ===========
</TABLE>
     Principal  payments  due  on  the  Company's long-term debt are as follows:

Year ending December 31,
     2008                 $ 1,777,000
     2009                   1,777,000
     2010                   2,404,000
     2011                     643,000
     2012 and thereafter    1,929,000
                         ------------
                          $ 8,530,000
                          ===========

  10.  STOCK-BASED COMPENSATION PLANS:
--------------------------------------
The  Company  has  various stock-based compensation plans, which provide for the
granting  of  nonqualified  and  incentive  stock options, as well as restricted
stock  awards  to  officers,  key employees and nonemployee directors. The plans
authorize  the  granting  to  officers  and  key  employees,  stock  options and
restricted stock awards, to acquire up to 1,891,000 common shares. Additionally,
the plans authorize the granting to nonemployee directors of the Company options
to  acquire  up to 125,000 common shares. Each plan grants options at the market
value  of  the  Company's stock on the date of such grant and all options expire
ten  years after granted. The terms and vesting schedules for share-based awards
vary  by  type  of  grant  and the employment status of the grantee with vesting
ranging  from  one to ten years. Generally the awards vest based upon time-based
conditions.  Stock  option  exercises  are  funded  through  the issuance of the
Company's  common stock. Stock compensation expense for the years ended December
31,  2007  and  2006  was  $180,000  and  $210,000,  respectively.


The  following  table  summarizes  activity  in  stock  options:

December 31,                    2007                            2006
---------------      ----------------------------     --------------------

                                          Average
                              Weighted-   Remaining               Weighted-
                              Average     Contractual             Average
                              Exercise    Term                    Exercise
                    Options   Price       (in years)   Options    Price
                    -------   -------     ----------  --------   ------
Outstanding at
 beginning of year   607,000    $3.03           5       615,000     $2.96


Granted                9,000     8.93          10         7,000      7.85

Forfeited             (1,000)    7.11           -        (2,000)     6.66

Exercised            (16,000)    1.92           -       (13,000)     1.55
                     --------   ------       ------   ---------   --------
Outstanding at end of
 year                 599,000    $3.15          4       607,000     $3.03
                      =======    =====        =====    ========    ======


Outstanding
 exercisable at end
 of year              590,000    $3.06          4       599,000    $2.97
                      =======    =====        ====      =======    ======

Weighted-average fair
 value of options granted
 during the year                 $3.82                             $4.31
                                 =====                            ======

The  following  table summarizes information about stock options outstanding and
exercisable  at  December  31,  2007:
                         Options  Outstanding              Options  Exercisable
                   -------------------------------         ---------------------
                   Weighted-
                   average      Weighted-    Weighted-                Weighted-
                   Remaining    average      average                  average
   Range  of       Number       Contractual  Exercise    Number       Exercise
Exercise  Prices   Outstanding  Life         Price       Exercisable  Price
---------------   -----------  -----------  -------    -------------  -------
$  .60  -  $1.07     169,000     3.00         $1.06      169,000       $1.06
$ 1.26  -  $1.62      25,000     2.00         $1.34       25,000       $1.34
$ 1.92  -  $2.04     143,000     2.00         $1.92      143,000       $1.92
$ 2.40  -  $3.70       9,000     3.00         $3.42        9,000       $3.42
$ 4.51  -  $9.28     253,000     6.00         $5.41      244,000       $5.28
-------------------------------------------------------------------------------
$  .60  -  $9.28     599,000     4.00         $3.15      590,000       $3.06
===============================================================================

At  December  31,  2007, 331,000 shares of common stock were reserved for future
issuance  of  stock  options,  restricted  stock  and stock appreciation rights.

At  December  31, 2007, the aggregate intrinsic value of options outstanding and
exercisable  was $3,301,000. At December 31, 2006, the aggregate intrinsic value
of  options  outstanding  was  $3,112,000  and  the aggregate intrinsic value of
options  exercisable  was  $3,110,000.  The intrinsic value of options exercised
during the years ended December 31, 2007 and 2006 was approximately $108,000 and
$129,000,  respectively.

The  Company  estimated the fair value of its stock option awards on the date of
grant  using  the  Black-Scholes valuation model. The assumptions used for stock
option  grants  issued  during  the  following  periods  were  as  follows:

December  31,                                  2007                    2006
-------------                                  -----                 -------

Dividend  Yield                                 -                        -

Expected  Volatility                    50.05%  to 51.19%     53.86%  to  55.52%

Risk-free  interest  rate                     5.00%            4.87%  to  5.21%

Expected  term  of  options (in years)        3.6                     5.5

Expected  volatility  assumptions  utilized  for 2007 and 2006 were based on the
volatility of the Company's stock price for 3.6 years and 3 years, respectively,
prior  to  grant  date.  The  risk-free  rate  is  derived from the 10 year U.S.
treasury yield on grant date.  Expected term for 2007 was based on prior history
of  option  activity.  Expected term for 2006 was derived using the "simplified"
method  as  allowed  under  the  provisions  of  the  Securities  and  Exchange
Commission's  Staff  Bulletin  No.  107  and  represents the period of time that
options  are  expected  to  be  outstanding.  Dividend  yield  is based on prior
history  of  cash-dividends  declared.

The following table summarizes the Company's nonvested stock option activity for
the  year  ended  December  31,  2007:

                            Number  of       Weighted-Average
                            Shares           Grant-Date  Fair  Value
                            ------           -----------------------

Nonvested  stock  options
 at  January  1,  2007       8,000               $4.31

Granted                      9,000                3.82

Vested                      (7,000)               4.40

Forfeited                   (1,000)               3.89
                            -----                 ----

Nonvested  stock  options
 at  December  31,  2007     9,000                $3.82
                             =====               ======

At  December  31, 2007, there was approximately $17,000 of unearned compensation
cost  related to the above non-vested stock options.  The cost is expected to be
recognized  over  the  next  six  months.

During  2004,  294,000  shares  of  restricted  stock  were  awarded  to  senior
management under the 2003 Employee Stock Incentive Plan.  These restricted stock
awards  may not be sold or otherwise transferred until certain restrictions have
lapsed.  The unearned stock-based compensation related to these restricted stock
awards  is being amortized to compensation expense over the vesting period.  The
vesting  period  for  13,000 and 281,000 of these shares is three and ten years,
respectively.  The  share based expense for these awards was determined based on
the  market  price  of  the  Company's stock at the date of grant applied to the
total number of shares that were anticipated to vest and then amortized over the
vesting  period.  The amount of compensation expense related to restricted stock
awards in 2007 and 2006 was $154,000 and $176,000, respectively.  As of December
31,  2007,  the  Company has unearned compensation of $1,010,000 associated with
these  awards.  Also, in accordance with SFAS No. 123 (R), the account "unearned
compensation" recorded pursuant to APB 25 was reversed and is now a component of
"additional  paid-in  capital".

Prior  to  the  adoption  of  SFAS  No.  123  (R), the Company presented all tax
benefits resulting from the exercise of stock options as operating cash flows in
the  Statement of Cash Flows.  Statement No. 123 (R) requires the benefit of tax
deductions in excess of the compensation cost recognized for those options to be
classified  as  financing  cash  flows  in  the  Statement  of  Cash  Flows.

 11.  EMPLOYEE BENEFIT PLAN:
-----------------------------

     A  profit  sharing  and incentive-savings plan provides benefits to certain
employees  who  meet  specified  minimum  service and age requirements. The plan
provides for contributions by the Company equal to 1/2 of employee contributions
(but  not  more  than  2%  of  eligible  compensation)  and the Company may make
additional  contributions out of current or accumulated net earnings at the sole
discretion  of  the  Company's  board  of  directors.


The  Company  contributed approximately $237,000 and $220,000 to the plan during
the  years  ended  December  31,  2007  and  2006,  respectively.

  12.  INCOME TAXES:
--------------------

     The  Company  utilized  net  operating  loss carryforwards to offset income
taxes  except for a $30,000 and $40,000 state income tax expense in Pennsylvania
for  the  years  ended  December  31,  2007  and  2006,  respectively.

At December 31, 2007 and 2006, the Company has an alternative minimum tax credit
of  approximately  $573,000  with  no limitation on the carryforward period. The
Company  also  has  federal  and  state  net  operating  loss  carryforwards  of
approximately  $21,000,000  and  $7,500,000, respectively, at December 31, 2007.
The  net  operating  loss  carryforwards  expire  through  2025.  Approximately,
$18,000,000  of  federal  net  operating  loss  carry-forwards  expire  between
2010-2012.

     The  Company  recognized a $595,000 deferred tax expense for the year ended
December  31,  2007.  This expense was recorded since the Company's deferred tax
liability  relating  to  its goodwill is required to be separately stated on its
financial  statements  apart  from  its  deferred  tax  asset.  The Company also
recorded  a deferred tax benefit of $595,000 by reducing its valuation allowance
on  its  deferred  tax  asset.  This  was  due  to  an increase in the Company's
projected  future  profitability  as  well  as an increase in the probability of
attaining  that  profitability.

During  the  year  ended  December  31,  2006,  the Company's deferred tax asset
increased  principally  due to an income tax benefit relating to the exercise of
stock  options during the year. The reconciliation of income tax computed at the
U.S.  federal and state statutory tax rates to income tax expense is as follows:

December 31,                                        2007                   2006
                                                    ----                 ------
Tax at U.S. statutory rates                         34.0%                 34.0%
State taxes                                          7.0                   8.0
Utilization of net operating loss carryforward     (40.0)                (40.0)
                                                   -----                 -----
                                                     1.0%                  2.0%
                                                   ======                 =====
The deferred tax asset is comprised of the following:

December 31,                                           2007                2006
                                                ------------        -----------

Alternative minimum tax credit carryforward     $   573,000        $    573,000

Net operating loss and capital loss carryfowards
 (including pre-acquisition net operating loss
 carryforwards)                                   7,399,000           7,661,000

Temporary differences in bases of assets and
 liabilities:

  Accounts receivable and inventory                 176,000             254,000
  Accrued expenses                                  140,000             137,000
  Stock-based compensation                           36,000              77,000
  Goodwill                                              -              (442,000)
  Intangible assets                                 305,000             347,000
  Deferred revenue                                  157,000             188,000
  Property and equipment                            (53,000)            (67,000)
                                                 ----------           ---------
                                                    761,000             494,000

Total deferred tax asset                          8,733,000           8,728,000

Valuation allowances                             (6,030,000)         (6,678,000)
                                               -------------       ------------
Net deferred tax asset                           $2,703,000          $2,050,000
                                               ============          ==========
Deferred tax liability-goodwill                 $  (595,000)               -
                                                ============        ============

Deferred income taxes are included in the accompanying balance sheet as follows:

                                    2007                2006
                                   -----            ---------
Current asset                   $1,025,000          $ 717,000
Long-term asset                  1,678,000          1,333,000
Long-term liability               (595,000)             -
                                 ---------         ----------
                                $2,108,000         $2,050,000
                                ===========        ==========

On  January 1, 2007, the Company adopted FASB Interpretation No. 48, "Accounting
for  Uncertainty  in Income Taxes - an interpretation of FASB Statement No. 109"
("FIN  48").  This  interpretation  provides  criteria  for  the  recognition,
measurement,  presentation  and  disclosure  of  uncertain  tax positions. A tax
benefit  from an uncertain position may be recognized only if it is "more likely
that  not"  that  the  position  is  sustainable  based on its technical merits.
Additionally,  FIN  48  provides  guidance  on  derecognition,  classification,
interest  and  penalties,  accounting  in  interim  periods,  disclosure  and
transition.  There  was  no  impact  of  adoption  to the Company's consolidated
financial  position,  results  of  operations  or  cash flows for the year ended
December 31, 2007. The Company's policy is to recognize any interest expense and
penalties  related  to potential income tax matters as a component of income tax
expense.

 13.  SIGNIFICANT CUSTOMERS AND CONCENTRATIONS OF CREDIT RISK:
--------------------------------------------------------------

     Sales  to  significant customers accounted for approximately 36% (14%, 12%,
and 10%) and 45% (13%, 11%, 11% and 10%) of the Company's consolidated net sales
for  the  years  ended  December  31,  2007  and  2006,  respectively.

     Significant  customers  of  the  Company's  Electronics Group accounted for
approximately  71%  (20%, 15%, 15%, 11%, 10%) and 61% (16%, 15%, 15% and 15%) of
the  Electronics  Group's  net  sales  for the years ended December 31, 2007 and
2006,  respectively.

Significant  customers  of the Company's Power Group accounted for approximately
26%  (16% and 10%) and 36% (13%, 12% and 11%) of the Power Group's net sales for
the  years  ended  December  31,  2007  and  2006,  respectively.

      A  substantial portion of the net sales is subject to audit by agencies of
the U.S. government. In the opinion of management, adjustments to such sales, if
any,  will  not  have  a material effect on the Company's consolidated financial
position  or  results  of  operations.

     Financial  instruments  which  potentially  subject  the  Company  to
concentrations  of credit risk consist principally of cash and trade receivables
from  its  customers.

The  Company  performs  credit  evaluations  on  its customers and collateral is
generally  not  required.  Credit  losses  are  provided for in the consolidated
financial  statements  during  the  period  in  which  an  impairment  has  been
determined.

  14. LEASING ARRANGEMENTS:
---------------------------

The Company entered into a sale-leaseback of its operating facility in 2001. The
initial  term  of the operating lease expires in 2013 and may be extended by the
Company  at  its  option  through February 2025. The Company recorded a deferred
gain  on  the sale which is being recognized over the initial term of the lease.
Additional  operating  leases  are  for  Tulip's  facility,  a  sales office and
vehicles.

Future  minimum lease payments as of December 31, 2007 under all operating lease
agreements that have initial or remaining noncancelable lease terms in excess of
one  year  are  as  follows:

Year ending December 31,
     2008                              $   759,000
     2009                                  628,000
     2010                                  531,000
     2011                                  506,000
     2012                                  507,000
     Thereafter                             80,000
                                       ------------
Total future minimum lease payments     $3,011,000
                                        ===========

Rent  expense  for  operating leases was approximately $567,000 and $525,000 for
the  years  ended  December  31,  2007  and  2006,  respectively.



15.  COMMITMENTS:
------------------

The  Company  entered  into  new  employment agreements with its three executive
officers,  effective  January  1,  2008, and also has employment agreements with
seven other principal officers, for aggregate annual compensation of $2,190,000.
All  employment  contracts are for a term of three years except for one two year
contract with an executive officer of the Company. In addition, the three senior
officers  will  be entitled to bonuses based on certain performance criteria, as
defined,  and  the  other  seven  officers  are  entitled  to bonuses based on a
percentage  of  earnings  before  taxes,  as  defined.  Total bonus compensation
expense was approximately $384,000 and $380,000 for the years ended December 31,
2007  and  2006,  respectively.

  16.   BUSINESS SEGMENTS:
---------------------------

The  Company  currently  operates in two industry segments. Its Orbit Instrument
Division  and  its  Tulip subsidiary are engaged in the design, manufacture, and
sale  of  electronic  components  and  subsystems (the "Electronics Group"). Its
Behlman subsidiary is engaged in the design, manufacture, and sale of commercial
power units (the "Power Group"). On December 19, 2007, the Company completed the
acquisition  of  ICS, effective December 31, 2007. ICS, which became part of the
Company's Electronics Group, performs system integration for Gun Weapons Systems
and Fire Control Interface as well as logistics support and documentation. Since
the  effective  date  of  the  acquisition  was  December  31, 2007, ICS was not
included  in  the  Company's statement of operations for the year ended December
31,  2007.

The  Company's  reportable  segments  are  business  units  that offer different
products.  The Company's reportable segments are each managed separately as they
manufacture  and  distribute  distinct  products  with  different  production
processes.

The  following  is  the Company's business segment information as of and for the
years  ended  December  31,  2007  and  2006

Year ended December 31,                    2007                        2006
-----------------------                 --------                  -----------

Net sales:

Electronics Group:
  Domestic                               $15,503,000                $15,291,000
  Foreign                                  1,162,000                  1,031,000
                                        ------------               ------------
Total Electronics Group                   16,665,000                 16,322,000
                                        ------------               ------------
Power Group:
  Domestic                                 8,207,000                  8,170,000
  Foreign                                  1,013,000                    523,000
                                        ------------              -------------
Total Power Group                          9,220,000                  8,693,000
                                        ------------             --------------
Total net sales                          $25,885,000                $25,015,000
                                        ============             ==============

Income (expenses) from operations:
  Electronics Group                      $ 2,666,000                 $3,017,000
  Power Group                              1,232,000                    996,000
  General corporate expenses
    not allocated                         (1,451,000)                (1,469,000)
   Interest expense                         (332,000)                  (443,000)
   Investment and other income, net          497,000                    358,000
                                          ----------                 -----------
  Income before income tax provision     $ 2,612,000                 $2,459,000
                                         ===========                ===========

December 31,                                  2007                      2006
                                             ----                       -----
Assets:
  Electronics Group                      $10,504,000                $ 8,680,000
  Power Group                              5,668,000                  4,853,000
  General corporate assets not allocated  23,513,000                 17,952,000
                                        ------------                -----------
    TOTAL ASSETS                         $39,685,000                $31,215,000
                                       =============               ============
Depreciation and amortization:
  Electronics Group                     $    543,000                  $ 544,000
  Power Group                                 18,000                     22,000
  Corporate                                   14,000                     40,000
                                         ------------                ----------
  TOTAL DEPRECIATION AND AMORTIZATION   $    575,000                  $ 606,000
                                        =============               ===========

17.     NET INCOME PER COMMON SHARE:
------------------------------------
The  following  table sets forth the computation of basic and diluted net income
per  common  share:

Year Ended December 31,                           2007                    2006
                                                 ------                  -------

Denominator:
  Denominator for basic net income per share -
  weighted-average common shares                4,404,000              4,302,000

Effect of dilutive securities:
  Unearned portion of restricted stock awards      47,000                101,000
  Employee and director stock options             229,000                235,000
                                               ----------               --------
Dilutive potential common shares                  276,000                336,000

Denominator for diluted net income
 per share - weighted-average common
 shares and assumed conversions                 4,680,000              4,638,000
                                               ==========            ===========

The  numerator  for  basic  and diluted net income per share for the years ended
December  31,  2007  and  2006  is  the  net  income  for  each  year.

Stock options totaling 15,000 and 6,000 shares were outstanding during the years
ended  December  31,  2007 and 2006, but were not included in the computation of
earnings  per  share.  The  inclusion  of  these  instruments  would  have  been
antidilutive  due to the options' exercise prices being greater than the average
market  price  of  the  Company's  common  shares  during  the  period.

 18.   RELATED PARTY TRANSACTION:
----------------------------------

Tulip  leases  its facilities from a limited partnership, the ownership of which
is controlled by the former shareholders of Tulip. The five-year lease commenced
April  2005 and provides for monthly payments of $9,100 and increases by 2% each
year  for  the  first  two  renewal  periods and by 3% for the final two renewal
periods.  For  the years ended December 31, 2007 and 2006, the total amount paid
under  this  lease  was  approximately  $113,000  and  $111,000,  respectively.



<PAGE>
------
                                   SIGNATURES
                                   ----------

     Pursuant  to  the  requirements  of  Section  13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its  behalf  by  the  undersigned,  thereto  duly  authorized.

     ORBIT  INTERNATIONAL  CORP.


Dated:  March  31,  2008                    By:  /s/  Dennis  Sunshine
                                                 ---------------------
                                                Dennis  Sunshine,  President
                                                and  Chief  Executive  Officer

     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
report  has  been  signed  below  by  the  following  persons  on  behalf of the
Registrant  and  in  the  capacities  and  on  the  dates  indicated.


      SIGNATURE                      TITLE                                DATE
     ---------                       -----                                ----

/s/ Dennis Sunshine    President, Chief Executive Officer
-------------------    and Director(Principal Executive Officer)  March 31, 2008
Dennis Sunshine


 /s/ Mitchell Binder   Executive Vice President, Chief
--------------------   Financial Officer, and
Mitchell Binder        Director (Principal Financial
                       and Accounting Officer)                    March 31, 2008

 /s/ Bruce Reissman    Executive Vice President,
-------------------    Chief Operating Officer and
Bruce Reissman         Director                                   March 31, 2008

/s/ Fredric Gruder
-------------------
Fredric Gruder                 Director                           March 31, 2008

 /s/ Bernard Karcinell
----------------------
Bernard Karcinell              Director                           March 31, 2008

 /s/ Lee Feinberg
-----------------
Lee Feinberg                   Director                           March 31, 2008

 /s/ Sohail Malad
-----------------
Sohail Malad                   Director                           March 31, 2008

 /s/ Robert Mitzman
-------------------
Robert Mitzman                 Director                           March 31, 2008