UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington,  DC  20549

                                  Form 10-KSB

   X     ANNUAL REPORT UNDER  SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
 ----    OF  1934
         For  the  fiscal  year  ended  December  31,  2006

     or

     TRANSITION  REPORT UNDER 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  small  business  issuer  in  its  charter)

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

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

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

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

                     COMMON STOCK, $.10 PAR VALUE PER SHARE
                     --------------------------------------
                                (TITLE OF CLASS)

Securities  registered  under  Section  12(g)  of  the  Exchange  Act:  None

Indicate by check mark whether the Registrant has (1) 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-KSB.  X
              --

Issuer's  revenues  for  its  fiscal  year  ended December 31, 2006: $25,015,000

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  March  16,  2007):  $31,270,145

Number  of  shares  of  common stock outstanding as of March 16, 2007: 4,588,071

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 2007 Annual Meeting of
Stockholders.
<PAGE>
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  subsidiary,  Orbit  Instrument of
California,  Inc.  and  Tulip, the Company is engaged in the design, manufacture
and  sale  of  customized  electronic  components  and  subsystems.  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 April 4, 2005, the Company completed the acquisition of all of the issued and
outstanding  capital  stock of Tulip. The total transaction value was $9,032,000
consisting  of  $5,000,000 in cash, a $2,000,000 promissory note to the sellers,
$1,500,000  in  value  of  Orbit stock and $532,000 of direct acquisition costs.
Headquartered  in  Quakertown,  Pennsylvania,  Tulip  is  a leading designer and
engineering provider of computer peripheral products including custom integrated
solutions  for  keyboards,  illuminated  data entry devices and displays.  Tulip
also provides both defense contractors and commercial customers with high volume
production  to  support  membrane  control  panel, military vetronic and avionic
display  program  requirements.

FINANCIAL  INFORMATION  ABOUT  INDUSTRY  SEGMENTS

     The  Company  currently  operates in two industry segments. The Electronics
Group,  which  is  comprised  of the Company's Orbit Instrument Division and its
Tulip  subsidiary,  is  engaged  in  the  design  and  manufacture of electronic
components  and  subsystems.  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,
                                       ------------
                                 2006                  2005
                                 ----                  ----

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


Electronics Group
 Domestic                    $15,291,000          $13,878,000
 Foreign                       1,031,000              868,000
                             -----------          -----------
Total Electronics Group       16,322,000           14,746,000

Power Group
 Domestic                      8,170,000            8,894,000
 Foreign                         523,000              614,000
                             -----------          -----------
Total Power Group              8,693,000            9,508,000

Operating income (1):
----------------

Electronics Group              3,017,000            2,812,000
Power Group                      996,000            1,587,000

Assets:
-------

Electronics Group              8,680,000            8,383,000
Power Group                    4,583,000            4,854,000

_______________

(1)  Exclusive  of  corporate overhead expenses, interest expense and investment
income  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 15 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.

     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-Remote  Control  Unit-RCU

          Orbit  Instrument Division has designed and developed a Remote Control
Unit-RCU in support of the Common Transponder ("CXP") program for both U.S. Navy
and  U.S. Army program requirements.  Orbit successfully qualified, produced and
delivered  over  two  thousand  of  these  units.  The  Remote  Control Units is
produced  in  various  configurations  that  include Mode S, Mode 5 and Enhanced
Traffic  Alert  and  Collision  Avoidance  System ("ETCAS").  The Remote Control
Units  are  fully  NVIS  compliant  units.




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  Orbit  Instrument  Division's  and Tulip's family of graphic terminals
enables  the  operator  to  monitor  and control radar systems for shipboard and
airborne  applications.  These  terminals  are  used  throughout  a  ship  or
surveillance  plane  as  adjuncts  to larger console displays. Some of the Orbit
designed/developed  Displays are used as data entry and as such include embedded
Pentium  based  Single Board Computers and touch screens.  The modular design of
the terminals facilitates applications for surface ship, submarine, aircraft and
land  based requirements. Orbit designed/developed Displays implement flat panel
plasma,  Electroluminescent  ("El")  or  Color  LCD  technology  based displays.
Depending  on  the  requirement, Orbit offers 4" x 4", 6.5", 8.1", 10.4", 12.1",
18.1",  20.1",  21.2"  (measured  diagonally)  size  displays.

     The  Orbit  Instrument Division developed a family of 18.1" and 20.1" color
LCD  display  panels  for  military  and  rugged  commercial opportunities.  The
displays  are  manufactured  using  Super Fine TFT (thin film transistor) active
matrix technology.  The displays are backlit with Cold Cathode Fluorescent Tubes
(CCFT),  and  is  driven  by an integral inverter.  The Company has adapted this
technology for high brightness and full-color imaging requirements.  The Company
is  positioning  this  technology  for  naval  ships,  FAA  tower  controller
applications  and  trading  floor  opportunities.

     The  Orbit Instrument Division also has designed and manufactured a variety
of  flat  technology  display  based  computer  controlled  action  entry panels
(CCAEPS),  which  provide  a console operator with multiple displays of computer
generated  data.

     Tulip  has  designed and manufactured a monochrome and color Mobile Display
Terminal  that  is  comprised of a switch matrix bezel that allows a driver on a
mass  transit  vehicle  to  transmit  and  receive  real  time data and critical
information  on  a  3x5  inch  color  display.


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 are trackballs and force sticks.
Orbit manufactures various militarized trackballs in various sizes for airborne,
shipboard, Army and FAA requirements. The trackballs and the force stick 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-pilots 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  is  currently  under order 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.




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  Instrument  Division  has completed the design and pre-production of
orders  for  12.1" Color LCD display based computers with a touch screen as well
as  20.1"  color  LCD  based  UXGA  monitors  for  amphibious  ships.

     Tulip  has designed and developed the latest generation of state of the art
Color  LCD flat panel monitors that could be used in all terrain ground vehicles
for  military  usage.  The  new  Command  and  Control  Monitor  includes  LED
illumination, enhanced resolution and provides the prime contractor with options
that  allow  prime  contractors  to customize the display to their specification
requirements.  The  Tulip  10.4"  display is currently being considered by three
separate  customers  for  use  in  a  half dozen different ground and amphibious
platforms.

     The  Orbit  Instrument Division is in the research and development phase of
designing  new  Control  Display  Units  - CDU's that interfaces with TALIN land
navigation  system  for  the  U.S.  Army  Fire  Finder Program. The new CDU will
replace  the  Orbit RDU that was designed/developed by Orbit and interfaced with
the  now  obsolete  DRUH  Land  Navigation  System  on  the Fire Finder Program.

     Tulip  has  also completed a prototype order for the design and development
of  a  new  6.5"  color  LCD  based  handheld  display for the U.S. Navy program
requirements.  These  displays  will be used by aviation maintenance technicians
for  the  repair  and  retrofit  of  naval  aircraft.

     Tulip has recently completed the design and pre-production units to support
a  10.4"  Color  LCD  'Smart' display with an embedded computer; together with a
12.1" Color LCD Display designed for use in both fixed and rotary wing aircraft.

     Tulip  is  in  the  research  and  development  phase  of designing new LED
illuminated  Display  Modules  of various sizes. The new modules are designed to
replace  existing  CC Fluorescent illuminated displays and feature both sunlight
illumination  as  well as NVIS (Night Vision Imaging System) compatibility.  The
display  modules  are  designed to be mercury free, that will enable the unit to
survive  high  vibration  environments.

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
programmable  features  and  higher  power  versions.

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.  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

     Various  agencies of the United States Government, Raytheon Company, a unit
of  BAE SYSTEMS and Rockwell Collins, Inc. accounted for approximately 13%, 11%,
11% and 10%, respectively, of consolidated net sales of the Company for the year
ended  December  31,  2006.  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 various agencies of the
United States Government, Raytheon Company, Rockwell Collins, Inc. and a unit of
BAE  SYSTEMS,  accounting  for  approximately  16%,  15%  and  15%  and  15%,
respectively,  of  the net sales of such segment for the year ended December 31,
2006.  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 Baker Hughes International,
Integrated  Consulting  Services,  Inc.  and  Telephonics,  Inc.  accounting for
approximately  13%  and  12%  and  11%,  respectively,  of the net sales of such
segment for the year ended December 31, 2006.  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,  2006  and 2005 the Company's backlog was as follows:




                                            2006            2005
                                           -----           -----

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

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

   Total                             $15,000,000      $13,000,000
                                     ===========      ===========

     Approximately  $1,200,000  of  the  backlog at December 31, 2006 represents
backlog  under  contracts  that  will  be  shipped  beyond  2007.

The  backlog  at  December  31,  2006  and  December  31,  2005 does not include
approximately  $2,000,000 and $400,000, 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 United States
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, 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 United States
Government  occurred  during  the  years  ended  December  31,  2006  and  2005.

     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.

RESEARCH  AND  DEVELOPMENT

     The  Company  incurred approximately $1,110,000 of research and development
expenses  during  the  years ended December 31, 2006 and 2005.  During the years
ended  December  31,  2006  and  2005,  the  Company  recognized  revenue  of
approximately  $705,000 and $807,000, 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 2, 2007, the Company employed 129 persons, all on a full-time
basis  except  for  three  part-time employees.  Of these, the Electronics Group
employed 81 people, consisting of 15 in engineering and drafting, 6 in sales and
marketing,  13  in  direct  and  corporate  administration  and  the  balance in
production.  The Power Group employed 48 people, consisting of 13 in engineering
and  drafting,  5  in  sales,  3  in direct and corporate administration and the
balance  in  production.

RISK FACTORS

     This  report  and other reports filed by us 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  6.  "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.

          Various  agencies of the United States Government, Raytheon Company, a
unit  of BAE SYSTEMS and Rockwell Collins, Inc. accounted for approximately 13%,
11%, 11% and 10%, respectively, of consolidated net sales of the Company for the
year  ended December 31, 2006. Various agencies of the U.S. Government, Raytheon
Company,  Rockwell  Collins,  Inc.,  and  a  unit  of  BAE SYSTEMS accounted for
approximately  16%,  15%,  15%  and  15%,  respectively, of the net sales of our
Electronics  Group  for  the  year  ended  December  31,  2006.  Baker  Hughes
International,  Integrated  Consulting  Services,  Inc.  and  Telephonics,  Inc.
accounted  for approximately 13%, 12% and 11%, respectively, of the net sales of
our  Power  Group  for  the  year  ended  December 31, 2006.  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 officers, Dennis
Sunshine,  President and Chief Executive Officer, Bruce Reissman, Executive Vice
President  and  Chief  Operating  Officer,  Mitchell  Binder,  Executive  Vice
President-Finance  and  Chief  Financial  Officer  and  Richard  Hetherington,
President  and Chief Operating Officer of Tulip.  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  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.  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  2.     DESCRIPTION  OF  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.  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  leases 1,700 square feet in Ventura, California which is used as a
selling  office.  The lease provides for monthly payments of $1,679 from January
1,  2005  through December 31, 2005 and increases to $1,730 from January 1, 2006
through  December  31,  2006  and to $1,781 from January 1, 2007 to December 31,
2007.

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  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.

ITEM  3.     LEGAL  PROCEEDINGS

There  are no material pending legal proceedings against the Company, other than
routine  litigation  incidental  to  the  Company's  business.



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

          None.

                                     PART II
                                     -------

ITEM 5.          MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL
BUSINESS  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, 2005 through its fiscal
year ended December 31, 2006, as reported on the Nasdaq Capital Market.



                                  HIGH(1)       LOW(1)
                                  -------       ------

2005:

  First Quarter:                   $9.25        $6.93

  Second Quarter:                   9.52         7.30

  Third Quarter:                   13.50         8.62

  Fourth Quarter:                  14.88        10.00

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


(1)  Retroactively restated to reflect a twenty-five percent (25%) stock
dividend effective July 18, 2005.



HOLDERS
     As  of  March  9,  2007,  the  Company  had  198  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, 2001, and the reinvestment of all dividends).



                                                [GRAPHIC OMITTED]



                                                [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

12/01          100.00               100.00                 100.00
12/02          173.00                62.19                  71.97
12/03          356.46                83.21                 107.18
12/04          535.65               108.52                 117.07
12/05          740.26               118.44                 120.50
12/06          484.79               124.87                 137.02

     *  The  Peer  Group  is  comprised  of  seven  companies  in  the  defense
electronics  industry  -  Aeroflex Inc., 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
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,  2006:

-     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).

EQUITY COMPENSATION PLAN INFORMATION TABLE
<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                 607,000                     $ 3.03                  340,000

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

Total                                        607,000                     $ 3.03                  340,000
</TABLE>



RECENT  SALE  OF  UNREGISTERED  SECURITIES

     As  previously  reported  by  the  Company  on  Form 8-K for April 4, 2005,
approximately  206,000  shares  of  unregistered  common  stock  were  issued in
connection  with  the  Tulip  acquisition. On January 10, 2006 these shares were
registered  with  the  Securities  and  Exchange  Commission  on  a Registration
Statement  on  Form  S-3.

PURCHASES  OF  EQUITY  SECURITIES  BY  THE  SMALL BUSINESS ISSUER AND AFFILIATED
PURCHASER

None.

<PAGE>

ITEM  6.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF
     FINANCIAL  CONDITION  AND  RESULTS  OF  OPERATIONS

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

     The  Company  recorded  a  decrease in operating results for the year ended
December 31, 2006.   The results of operations for the prior year ended December
31,  2005  include  the  operations  of  Tulip as of April 4, 2005, the date the
transaction  was completed.  Revenues increased by 3.1%, but the Company's gross
profit  margins  decreased for the year ended December 31, 2006, compared to the
prior  year.  The  increase  in revenues was principally due to the inclusion of
the  operations  of  Tulip for the full current year.  However, selling, general
and  administrative  expenses  and  interest expense also increased for the same
reason.  Consequently, net income for the year ended December 31, 2006 decreased
compared  to  the prior period.  The decline in profitability during the current
year was also due to unusually strong revenues and profitability recorded by our
Power  Group  in  the  prior year as a result of large deliveries under the FLIR
contract,  which completed shipments in the second quarter of 2005.  Our backlog
at  December  31,  2006 was approximately $14,700,000 compared to $13,100,000 at
December  31,  2005  primarily due to a higher backlog from both the Electronics
and  Power  Groups.  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.  The Electronics Group
experienced  program  funding delays during the course of the year although some
of  the  expected  awards  were received at the end of the third quarter and the
fourth  quarter.  We  remain  confident  that  many  of these expected follow-on
orders  will  continue  to  be received.   Our success of the past few years has
significantly  strengthened  our balance sheet evidenced by our 4.9 to 1 current
ratio  at  December 31, 2006.  We currently have a $2,500,000 credit facility in
place  that  we  have  not  used to date, and the Company is currently exploring
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  6.  "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  obsolete.

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

     At  December 31, 2006, the Company had an alternative minimum tax credit of
approximately  $573,000  with  no limitation on the carry-forward period and net
operating  loss  carry-forwards of approximately $22,000,000 that expire through
2025.  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  cost of certain intangible assets are no longer
subject  to amortization.  These costs were reviewed for potential impairment in
2006  and  2005  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 $210,000 for the year ended December 31,
2006  (including  $176,000  of  amortization  of  unearned compensation which is
comparable to the prior year.) The estimated fair value of stock options granted
in  2006  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,  2006  vs.  Year  Ended  December  31,  2005
-----------------------------------------------------------------------

     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").  The results of operations for the year ended
December  31, 2005 include the operations of Tulip since April 4, 2005, the date
the  transaction  was  completed.

Consolidated net sales for the year ended December 31, 2006 increased by 3.1% to
$25,015,000  from  $24,254,000  for  the  prior  year principally due to a 10.7%
increase  in sales recorded from the Electronics Group that was partially offset
by  an  8.6% decrease in sales from its Power Group.  The increase in sales from
the  Electronics  Group  was due to the inclusion of the operations of Tulip for
the  full  current  year.  The decrease in sales from the Power Group was due to
unusually strong sales in the prior year as a result of large deliveries under a
significant  order  which  completed  shipping  in  the  second quarter of 2005.

Gross profit, as a percentage of net sales, for the year ended December 31, 2006
decreased  to 43.3% from 44.7% for the prior year. This decrease resulted from a
lower  gross profit recorded by both the Company's Electronics and Power Groups.
The  decrease  in gross profit from the Electronics Group was principally due to
slightly  lower  pro-rated sales for Tulip in the current year, comparable sales
for  the  Instrument  Division  compared  to  the prior year and slightly higher
overhead  costs.  The  decrease  in  gross  profit  from the Power Group was due
principally  to  a  decrease  in  sales  and  to  product  mix.

Selling,  general  and  administrative  expenses for the year ended December 31,
2006  increased  by  3.9%  to  $8,285,000  from  $7,973,000  from the year ended
December  31,  2005  principally due to the inclusion of the operations of Tulip
for  the  full  current  year  and despite lower corporate administrative costs.
Selling,  general and administrative expenses, as a percentage of sales, for the
year  ended  December  31, 2006 increased to 33.1% from 32.9% principally due to
the  increase  in  expenses  due  to  the inclusion of Tulip in the full current
period without a corresponding increase in sales, as well as a decrease in sales
from  the  Power  Group.

Interest expense for the year ended December 31, 2006 increased to $443,000 from
$333,000 for the year ended December 31, 2005 due to interest paid in connection
with the debt incurred as a result of the Tulip acquisition that closed on April
4,  2005  and  to  the  increase  in  interest  rates.

Investment  and  other  income for the year ended December 31, 2006 increased to
$358,000  from $186,000 for the prior year principally due to an increase in the
amounts  invested during the current year and to the increase in interest rates.

Net  income  before  income  tax  provision  was  $2,459,000  for the year ended
December  31,  2006 compared to $2,714,000 for the year ended December 31, 2005.
This decrease was principally due to the decrease in gross margins, the increase
in selling, general and administrative expenses and interest expense and despite
the  slight  increase  in sales and the increase in investment and other income.

Income  taxes for the year ended December 31, 2006 and December 31, 2005 consist
of  $40,000  and  $30,000,  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, 2006
was  $2,419,000  compared  to $2,684,000 for the year ended December 31, 2005, a
decrease  of  9.9%.

     Earnings  before  interest, taxes, depreciation and amortization, and stock
based  compensation  (EBITDA)  for  the  year  ended  December 31, 2006 slightly
decreased  to  $3,678,000  from  $3,710,000  for  year  ended December 31, 2005.
Listed  below  is  the  EBITDA  reconciliation  to  net  income:

                                         Year  ended
                                         December  31,
                                         -------------
                                 2006                    2005
                                 ----                    ----

Net  income                    $2,419,000             $2,684,000
Interest  expense                 443,000                333,000
Income  tax  expense               40,000                 30,000
Depreciation  and  amortization   566,000                487,000
Stock  based  compensation        210,000                176,000
                                 --------              ---------
EBITDA                         $3,678,000             $3,710,000
                               ==========             ==========

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

     Working  capital  increased to $17,176,000 at December 31, 2006 as compared
to  $14,839,000  at  December  31, 2005.  The ratio of current assets to current
liabilities  remained  at  4.9 to 1 at December 31, 2006 from December 31, 2005.

Net  cash  provided  by  operations  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.  Net cash provided by operations for the
year  ended  December  31,  2005  was  $2,923,000, primarily attributable to net
income  for  the  year,  the  non-cash  amortization  of  intangible  assets and
restricted  stock  awards, depreciation and an increase in accrued expenses that
was  partially  offset  by  an increase in other long-term assets, a decrease in
accounts  payable  and  in  the  amount due to the former shareholders of Tulip.

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 used in investing activities for the year ended December 31, 2005 was
$5,827,000,  attributable  to  the  purchase  of  Tulip, purchases of marketable
securities  and  property  and  equipment.

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.  Cash flows provided by financing
activities  for  the  year  ended  December  31,  2005 was $5,725,000, primarily
attributable  to  the  proceeds  from  the  issuance  of  long term debt and the
proceeds from stock option exercises that was partially offset by the repayments
of  long  term  debt.


     In  February  2003,  the  Company entered into a $2,000,000 credit facility
with  a commercial lender secured by accounts receivable, inventory and property
and  equipment.  In April 2005, the Company entered into a new $2,500,000 credit
facility  with  the  same lender along with a new five-year $5,000,000 Term Loan
Agreement  to  finance the acquisition of Tulip and its manufacturing affiliate.
In April 2006, the interest rates on both the Term Loan Agreement and the credit
facility  were  reduced.  The  credit  facility  will continue from year to year
unless  sooner  terminated for an event of default including non-compliance with
certain financial covenants. Loans prior to the renewal, under the facility, did
bear  interest  equal  to  the  sum  of 2.00% plus the one-month LIBOR (5.32% at
December 31, 2006) and the Term Loan did bear interest equal to the sum of 2.25%
plus the one-month LIBOR.  Pursuant to the renewal, both the credit facility and
the  Term  Loan  will bear interest equal to the sum of 1.50% plus the one-month
LIBOR.  Monthly principal payments under the Term Loan, of approximately $60,000
per  month,  commenced  in  June  2005.





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%
(8.25%  at  December  31,  2006).  Principal  payments of $100,000 are made on a
quarterly  basis  along  with  accrued  interest.  In  October 2006, pursuant to
permission  from  its  primary  lender,  the  Company  increased  its  quarterly
principal  payment  to  $150,000  along  with  accrued  interest  and intends to
continue  to  make  quarterly  principal  payments of $150,000 until the loan is
repaid  in  full.

        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     $5,219,000   $1,114,000  $3,093,000  $1,012,000        -

Capital  lease
    obligations         10,000       10,000       -          -             -

Operating  leases    3,296,000      611,000   1,647,000     958,000     $80,000
                     ---------      -------   ---------     -------     -------

Total  contractual
    obligations     $8,525,000   $1,735,000  $4,740,000  $1,970,000     $80,000

     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.  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  seen  improvement  in  bookings and revenue levels since 2001.  The Company
realized  a  significant  increase to the backlog of its Power Group during 2004
and shipments from this segment contributed to very strong operating results for
the  first  and  second  quarters  of  2005.   In  particular,  during 2005, its
commercial  division  has  realized  an  increase  in bookings, particularly for
military  requirements  for  its  standard  commercial  products.  Both  of  the
Company's  business segments had strong bookings in 2004 and 2005 that continued
into  the first quarter of 2006.  During the second quarter of 2006, the Company
began  to  experience  a slowdown in its bookings due to program funding delays.
However,  the  Company  began  to  receive some of the expected follow-on awards
during  the  end  of  the  third  quarter  and  the  fourth  quarter  of  2006.
Furthermore,  the  Company  remains confident that it will receive most of these
follow-on  orders and option quantities that have been affected by these program
funding  delays,  although  the  timing  of  their  release  remains  uncertain.
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.

     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.

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 of 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  addition  of  Tulip  gives  the  Electronics Segment a more
diversified  customer  base.

     The  Company's  business  strategy  is  to  expand  its  operations through
strategic,  accretive acquisitions.  In April 2005, it completed the acquisition
of  Tulip.  Since that time, the Company reviewed various potential acquisitions
and in January 2007, hired Cove Partners LLC, an investment banking firm located
in  San  Diego,  CA,  that specializes in mergers and acquisitions and strategic
advisory  services.  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 none have
progressed  beyond  a  preliminary  due  diligence  stage.

ITEM  6A.     QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISKS

     As  of  December  31,  2006,  the  Company had an amount due to its primary
lender  under  its Term Loan of approximately $3,869,000.  Interest on this Term
Loan  is  equal  to the sum of 1.50% plus the one-month LIBOR.  In addition, the
Company  has a $2,500,000 line of credit with the same lender at a rate equal to
the  sum  of  1.50%  plus  the  one-month  LIBOR.  The  Company did not have any
borrowings  under  the  line  of credit during the year ended December 31, 2006.
During  2006,  LIBOR  averaged approximately 5.07% and was 5.32% at December 31,
2006.

The  Company also has a Promissory Note to the former shareholders of Tulip that
had  a balance of $1,350,000 at December 31, 2006.  Interest on this note was at
2.00%  over  the  prime rate of interest.  During 2006, the Bank's prime rate of
interest  averaged  approximately  7.96%  and  was  8.25%  at December 31, 2006.

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 $50,000 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  7.     FINANCIAL  STATEMENTS

     The  information  required  under  this  Item appears in a separate section
following  Item  14  of  this  report.


ITEM  8.     CHANGES  IN  AND  DISAGREEMENTS  WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL  DISCLOSURE

     None.

ITEM  8A.     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, 2006, that have materially affected,
or  are  reasonably  likely  to  materially  affect,  our  internal control over
financial  reporting.

ITEM  8A(T).     CONTROLS  AND  PROCEDURES-  NOT  APPLICABLE.

ITEM  8B.     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,  2006.


          PART  III
          ---------

ITEM  9.     DIRECTORS,  EXECUTIVE  OFFICERS, PROMOTERS AND CONTROL     PERSONS;
COMPLIANCE  WITH  SECTION  16(A)  OF  THE  EXCHANGE     ACT.

     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 2007 Annual Meeting of Stockholders.

ITEM  10.     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 2007 Annual Meeting of Stockholders.

ITEM  11.     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 2007 Annual Meeting of Stockholders.


ITEM  12.     CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

     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 2007 Annual Meeting of Stockholders.


ITEM  13.     EXHIBITS

     (a)  The  following  documents  are  filed as part of this Annual Report on
Form  10-KSB  for  the  fiscal  year  ended  December  31,  2006.

1  and  2.     Financial  Statements  and  Schedule:

     The  index  to  the  financial  statements  and schedule is incorporated by
reference  to  the  index  to financial statements which follows Item 14 of this
Annual  Report  on  Form  10-KSB.

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.

  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     Amended  and  Restated Employment Agreement, dated as of February 15,
1999,  between  Registrant  and  Mitchell  Binder.  Incorporated by reference to
Exhibit 10(a) to Registrant's Annual Report on Form 10-K for the     fiscal year
ended  December  31,  1998.

  10.2          Amended  and Restated Employment Agreement, dated as of February
15,  1999,          between  Registrant  and  Bruce  Reissman.  Incorporated  by
reference  to  Exhibit          10(b) to Registrant's Annual Report on Form 10-K
for  the  fiscal  year  ended          December  31,  1998.

  10.3          Amended  and Restated Employment Agreement, dated as of February
15,  1999          between  Registrant  and  Dennis  Sunshine.  Incorporated  by
reference  to  Exhibit          10(c) to Registrant's Annual Report on Form 10-K
for  the  fiscal  year  ended          December  31,  1998.

  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     Loan  and Security Agreement dated as of January 28, 2003 between the
Company  and  Merrill  Lynch Business Financial Services Inc. including exhibits
and other attachments thereto.  Incorporated by reference to Registrant's Annual
Report  on  Form  10-KSB  for  the  fiscal  year  ended  December  31,  2002.

  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.

  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  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.



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  2007  Annual  Meeting  of
Shareholders.


<PAGE>

ORBIT INTERNATIONAL CORP.
 AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006

<PAGE>


                         ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES

                         INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
                         ------------------------------------------

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM            F-1


CONSOLIDATED FINANCIAL STATEMENTS:

   Balance Sheet as of December 31, 2006 and 2005                  F-2
   Statement of Operations for the Years Ended
    December 31, 2006 and 2005                                     F-3
   Statement of Stockholders' Equity for the Years Ended
    December 31, 2006 and 2005                                     F-4
   Statement of Cash Flows for the Years Ended
    December 31, 2006 and 2005                                  F-5 - F-6
   Notes to Consolidated Financial Statements                   F-7 - F-21


<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  sheets  of  Orbit
International  Corp.  and Subsidiaries as of December 31, 2006 and 2005, and the
related  consolidated  statements  of operations, stockholders' equity, and cash
flows  for  the  years  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  audits.

We  conducted  our audits 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  audits  provide  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  2005,  and  the results of their
operations  and  their  cash  flows  for the years 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

                                                                             F-1

<TABLE>
<CAPTION>

ORBIT INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEET


<S>                                                               <C>                <C>           <C>
DECEMBER 31,                                                       2006                  2005
------------                                                       ----                  -----
ASSETS
Current Assets:
  Cash and cash equivalents                                  $ 3,935,000           $ 3,933,000
  Investments in marketable securities                         4,062,000             1,012,000
  Accounts receivable, less allowance for
   doubtful accounts of $145,000                               3,712,000             3,695,000
  Inventories                                                  8,992,000             9,055,000
  Deferred Tax Asset                                             717,000               784,000
  Other current assets                                           145,000               130,000
                                                               ---------             ---------
    TOTAL CURRENT ASSETS                                      21,563,000            18,609,000

  Property and Equipment, net                                    414,000               357,000

  Goodwill                                                     6,135,000             6,130,000

  Intangible Assets, net                                       1,204,000             1,639,000

  Deferred Tax Asset                                           1,333,000             1,219,000

  Other Assets                                                   566,000             1,198,000
                                                               ---------            ----------

    TOTAL ASSETS                                             $31,215,000           $29,152,000
                                                             ===========           ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Current portion of long-term obligations                   $ 1,124,000          $  1,125,000
  Accounts payable                                             1,028,000               857,000
  Accrued expenses                                             1,353,000             1,447,000
  Customer advances                                              797,000               256,000
  Deferred income                                                 85,000                85,000
                                                               ---------             ---------
    TOTAL CURRENT LIABILITIES                                  4,387,000             3,770,000

Deferred Income                                                  427,000               513,000
Long-term Obligations, net of current maturities               4,105,000             5,279,000
                                                               ---------             ---------
    TOTAL LIABILITIES                                          8,919,000             9,562,000

Stockholders' Equity:
  Common stock - authorized 10,000,000 shares-                   459,000               457,000
   $.10 par value; 4,588,000 and 4,575,000 shares
    issued and outstanding at 2006 and 2005, respectively
  Additional paid-in capital                                  19,536,000            20,600,000
  Unearned compensation                                             -               (1,340,000)
  Accumulated other comprehensive gain (loss)                      5,000                (4,000)
  Retained earnings (accumulated deficit)                      2,296,000              (123,000)
                                                               ---------            -----------
     STOCKHOLDERS' EQUITY                                     22,296,000            19,590,000
                                                             -----------           -----------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $31,215,000           $29,152,000
                                                             ===========           ===========

</TABLE>

                                  See Notes to Consolidated Financial Statements

                                                                             F-2


<TABLE>
<CAPTION>

ORBIT INTERNATIONAL CORP.
CONSOLIDATED STATEMENT OF OPERATIONS

<S>                                                           <C>           <C>
YEAR ENDED DECEMBER 31,                                             2006                  2005
-----------------------                                       ----------            ----------

Net sales                                                    $25,015,000           $24,254,000

Cost of sales                                                 14,186,000            13,420,000
                                                             -----------            ----------
Gross profit                                                  10,829,000            10,834,000
                                                              ----------           -----------

Selling, general and administrative expenses                   8,285,000             7,973,000

Interest expense                                                 443,000               333,000

Investment and other income, net                                (358,000)             (186,000)
                                                              ----------            ----------
Total expenses, net                                            8,370,000             8,120,000
                                                              ----------            ----------

Income before income tax provision                             2,459,000             2,714,000

Income tax provision                                              40,000                30,000
                                                              ----------            ----------
Net income                                                   $ 2,419,000           $ 2,684,000
                                                             ===========           ===========

Net income per common share:

    Basic                                                    $       .56           $       .66
                                                             ===========           ===========
    Diluted                                                  $       .52           $       .60
                                                             ===========           ===========
</TABLE>


                                  See Notes to Consolidated Financial Statements

                                                                             F-3


<TABLE>
<CAPTION>




<S>                                      <C>                                             <C>           <C>
ORBIT INTERNATIONAL CORP.
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY
YEARS ENDED DECEMBER 31, 2006 AND 2005
                                       COMMON STOCK
                                      10,000,000 SHARES
                                         AUTHORIZED             ADDITIONAL  RETAINED EARNINGS              OTHER
                                   SHARES                       PAID-IN      (ACCUMULATED     UNEARNED     COMPREHENSIVE
                                   ISSUED(A)       AMOUNT(A)    CAPITAL(A)     DEFICIT)       COMPENSATION INCOME(LOSS)       TOTAL
                                   ---------      ---------     ---------    -----------      -----------  -----------    ---------

Balance at December 31, 2004       3,821,000  $    382,000    $ 16,582,000    $(2,807,000)    $(1,516,000)   $(3,000)   $12,638,000

Amortization of restricted stock        -             -              -             -              176,000         -         176,000

Issuance of common stock for
 Tulip acquisition                   206,000        20,000       1,480,000         -               -            -         1,500,000

Exercise of options                  548,000        55,000       1,299,000         -               -            -         1,354,000

Tax benefit of stock option exercise    -             -          1,239,000         -               -            -         1,239,000

Other comprehensive loss                -             -               -            -               -          (1,000)        (1,000)

Net income                              -             -               -        2,684,000           -            -         2,684,000
                                    -------        -------       ---------    ----------       -----------   --------   -----------
Balance at December 31, 2005        4,575,000      457,000      20,600,000      (123,000)      (1,340,000)    (4,000)    19,590,000

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

Stock-based compensation expense        -             -            210,000         -                -           -            210,000

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
                                   ==========  ============  =============    ==========        ==========   ========    ===========
<FN>
(a)  Retroactively restated to reflect a twenty-five (25%) stock dividend
effective July 18, 2005.



</TABLE>


                                  See Notes to Consolidated Financial Statements

                                                                             F-4




<TABLE>
<CAPTION>

ORBIT INTERNATIONAL CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS



<S>                                               <C>         <C>           <C>               <C>
YEAR ENDED DECEMBER 31,                                                   2006                2005
                                                                        ---------              -------

Cash flows from operating activities:

  Net income                                                           $    2,419,000          $ 2,684,000

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

    Stock-based compensation expense                                          210,000                 -
    Amortization of intangible assets                                         435,000             326,000
    Depreciation                                                              131,000             161,000
    Bond premium amortization                                                  40,000              23,000
    Bad debt                                                                   32,000               9,000
    Gain on sale of marketable securities                                      (8,000)               -
    Expense due to restricted stock awards                                       -                176,000
    Deferred income                                                           (86,000)            (85,000)
    Changes in operating assets and liabilities:
      Increase in accounts receivable                                          (49,000)            (63,000)
      Decrease in inventories                                                   63,000              50,000
      (Increase) decrease in other current assets                              (15,000)             29,000
      Decrease (increase) in other assets                                      632,000            (140,000)
      Increase (decrease) in accounts payable                                  171,000            (108,000)
      Increase in customer advances                                            541,000              40,000
      (Decrease) increase in accrued expenses                                  (94,000)            271,000
      Decrease in amount due to former shareholders of Tulip                      -               (450,000)
                                                                             ---------          -----------
             NET CASH PROVIDED BY OPERATING ACTIVITIES                       4,422,000           2,923,000



Cash flows from investing activities:

    Purchase of marketable securities                                       (3,387,000)           (879,000)
    Sale of marketable securities                                              314,000                -
    Purchase of property and equipment                                        (188,000)           (114,000)
    Cash paid for acquisition of Tulip, net of cash received of $693,000        (5,000)         (4,834,000)
                                                                             ---------          -----------
              NET CASH USED IN INVESTING ACTIVITIES                         (3,266,000)         (5,827,000)



Cash flows from financing activities:

  Repayments of long-term debt                                              (1,175,000)           (629,000)
  Proceeds from exercise of stock options                                       21,000           1,354,000
  Proceeds from issuance of long term debt                                       -               5,000,000
                                                                             ---------           ----------
              NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES           (1,154,000)          5,725,000


(continued)


                                  See Notes to Consolidated Financial Statements

                                                                             F-5



<PAGE>

ORBIT INTERNATIONAL CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS
--------------------------------------
(CONTINUED)


Net increase in cash and cash equivalents                                        2,000           2,821,000

Cash and cash equivalents at beginning of year                               3,933,000           1,112,000
                                                                             ---------          -----------
Cash and cash equivalents at end of year                                $    3,935,000         $ 3,933,000
                                                                        ==============         ============

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

  Cash paid during the year for interest                                $      452,000            $266,000

</TABLE>



SUPPLEMENTAL  SCHEDULE  OF  NONCASH  INVESTING  AND  FINANCING  ACTIVITIES:

During 2005, the Company purchased all of the capital stock of Tulip Development
Laboratory,  Inc.  and  its manufacturing affiliate, TDL Manufacturing, Inc. for
$9,032,000. In conjunction with the acquisition, net assets with a fair value of
$1,800,000  were  acquired.

In connection with the aforementioned acquisition, the Company funded $2,000,000
of the purchase price with promissory notes issued to the former shareholders of
Tulip.  Also in connection with the acquisition, approximately 206,000 shares of
Orbit,  $.10  par  value,  common stock, valued at approximately $1,500,000, was
issued  to  the  former  shareholders  of  Tulip.


                                  See Notes to Consolidated Financial Statements

                                                                             F-6
ORBIT INTERNATIONAL CORP.
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  has  two  reportable  segments:  (a)  the  Electronics Group,
comprised  of  the  Orbit  Instrument  Division  and  the Company's wholly owned
subsidiary,  Tulip Development Laboratory, Inc. and its manufacturing affiliate,
TDL  Manufacturing,  Inc.,  (collectively  "Tulip")  is  engaged  in the design,
manufacture and sale of customized electronic components and subsystems and; (b)
the  Power  Group, its Behlman Electronics, Inc. subsidiary  which is engaged in
the  design  and  manufacture  of  distortion-free commercial power units, power
conversion  devices  and  electronic  devices  for  measurement  and  display.


2.     ACQUISITION:
--------------------

On April 4, 2005, the Company acquired all of the issued and outstanding capital
stock of Tulip. The primary reason for the acquisition was the expansion of both
our customer and product bases and the accretion to earnings. The total purchase
price was $9.032 million consisting of $5.0 million in cash, which was funded by
a  term  loan,  a  $2.0  million  promissory  note to the sellers, approximately
206,000  shares  of  Orbit  stock  valued at $1.5 million and direct acquisition
costs  of approximately $532,000. Included in the direct acquisition costs was a
$138,000 liability at December 31, 2005, in connection with the Company agreeing
to  reimburse  the  sellers  for  additional tax owed as a result of an election
under  Internal  Revenue  Code  338  (h)  (10).

The  Tulip  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, 2006 and 2005. The operating results of Tulip
are  included  in  the  consolidated  financial  statements  since  the  date of
acquisition.

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 and their consultants. 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. The total purchase price has been  allocated
as  follows:

Tangible assets and liabilities:

     Cash                                        $  693,000
     Accounts receivable                          1,169,000
     Inventories                                    840,000
     Other current assets                            12,000
     Property and equipment                         206,000
     Accounts payable                              (254,000)
     Accrued expenses                              (200,000)
     Due to stockholders                           (450,000)
     Customer advances                             (216,000)
                                                   ---------

Total net tangible assets and liabilities         1,800,000




                                                                     (continued)
                                                                             F-7
     Amortizable intangible assets:
     Contract backlog                              1,650,000
     Non-compete provision of employment contract    315,000
                                                  ----------

Total amortizable intangible assets                1,965,000

Goodwill                                           5,267,000
                                                  ----------
Total purchase price                              $9,032,000
                                                  ==========


The  following  summarized pro forma financial information presents the combined
results  of  the  Company and Tulip as if the acquisition had occurred as of the
beginning  of  period  presented.  Adjustments,  which  reflect  amortization of
purchased  intangible  assets,  interest  on debt to finance the acquisition and
recalculation  of  bonuses  due to adjustments  to net income, have been made to
the  combined  results  of  operations for the year ended December 31, 2005. 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  date  presented  nor does it purport to represent the results of operations
for  future  periods.

                                          Year ended
                                         December 31,
                                             2005
                                   (Pro forma and Unaudited)
                                   -------------------------

Net  Sales                               $25,908,000
----------                               ===========

Net  Income                                2,847,000
-----------                                =========

Basic  earnings  per  share                  0.69
---------------------------                  ====

Diluted  earnings  per  share                0.63
-----------------------------                ====

  3.     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.

As  described  in Note 2, the Company acquired Tulip on April 4, 2005. Operating
results  for  Tulip  for  the  period  April  1,  2005 through April 4, 2005 are
included  in  these  financial  statements  but  were  not  material.

On  June  24,  2005, the Board of Directors approved a twenty-five percent (25%)
stock  dividend to shareholders of record on July 18, 2005. The payable date for
the dividend was July 29, 2005. The stock dividend has been accounted for as a 5
for  4  stock  split  and  all references to shares and per share amounts in the
accompanying  financial  statements  have been retroactively restated to reflect
the  stock  dividend.
                                                                     (continued)
                                                                             F-8
For  comparability,  certain  2005  amounts  have  been  reclassified,  where
appropriate,  to  conform  to  the  financial  statements  presentation in 2006.

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.

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 8 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.

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.

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.

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

The  Company's freight and delivery costs were $90,000 and $86,000 for the years
ended  December  31,  2006  and  2005, respectively. These costs are included in
selling,  general  and  administrative  expenses.


                                                                     (continued)
                                                                             F-9

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  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, 2006 and 2005.

Research and development costs are expensed when incurred.  The Company expensed
approximately  $1,110,000  for  research  and development during the years ended
December  31, 2006 and 2005. These expenses are included in selling, general and
administrative  expenses.

In  June  2006,  the  Financial  Accounting Standards Board ("FASB") issued FASB
Interpretation  No.  48,  "Accounting  for  Uncertainty  in  Income  Taxes  - an
interpretation  of  FASB  Statement  No.  109" ("FIN 48").  FIN 48 clarifies the
accounting  for  uncertainty in income taxes recognized in a company's financial
statements  in accordance with SFAS No. 109, "Accounting for Income Taxes."  FIN
48  prescribes  a  recognition  threshold  and  measurement  attribute  for  the
financial  statement  recognition  and  measurement  of  a tax position taken or
expected  to  be  taken  in  a tax return.  FIN 48 is effective for fiscal years
beginning  after December 15, 2006, which would be the first quarter of 2007 for
the  Company.  The Company is currently evaluating the effects, if any, that FIN
48  will  have  on its consolidated financial position or results of operations.

In  September  2006,  the  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 is
effective  for  financial  statements  issued  for  fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years, which would be
the  first quarter of 2008 for the Company.  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 September 2006, the SEC issued Staff Accounting Bulletin No. 108 "Considering
the Effects of Prior Year Misstatements when Qualifying Misstatements in Current
Year  Financial  Statements"  ("SAB No. 108").  SAB No. 108 provides guidance on
the  consideration  of  the  effects of prior year misstatements in  determining
whether  the  current year's financial statements are materially misstated.  SAB
No.  108  was  effective  as  of  the end of the Company's 2006 fiscal year, and
allows  a  one-time  transitional  cumulative  effect  adjustment

                                                                     (continued)
                                                                            F-10

to  beginning  retained earnings as of January 1, 2006, for errors that were not
previously  deemed material, but are material under the guidance in SAB No. 108.
The  adoption  of SAB No. 108 did not have a material impact on its consolidated
financial  position  or  results  of  operations.

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 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 our adoption of SFAS No.
123 (R) have not been adjusted to reflect fair value of share-based compensation
expense.  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 Statements of Financial Accounting ("SFAS") No.
123,  Accounting  for  Stock-Based  Compensation.


As  a  result  of  adopting  SFAS  No. 123 (R) on January 1, 2006, the Company's
income before taxes and net income for the year ended December 31, 2006 is lower
by  approximately  $34,000  than  if it had continued to account for share-based
compensation under APB Opinion 25.  Basic and diluted earnings per share for the
year ended December 31, 2006 would have been $ .01 higher if the Company had not
adopted SFAS No. 123 (R).  Share-based compensation expense included in selling,
general  and  administrative  expenses  for the year ended December 31, 2006 was
approximately  $210,000  (including  $176,000  of  amortization  of  unearned
compensation which is comparable to the prior year). No tax benefit was received
relating to this expense due to the Company's net operating loss carry forwards.


The  following  table  illustrates the effect on operating results and per share
information had the Company accounted for stock-based compensation in accordance
with  SFAS  No.  123(R)  for  the  year  ended:


December 31,                                               2005
---------------------------------------------------------------

Net  Income-as  reported                             $2,684,000

Add:  Stock-based  employee  compensation
expense,  included  in  reported  net  income,
net  of  related  tax  effect                           176,000

Deduct:  Total  stock-based  employee
compensation  expense  determined
under  fair  value  based  method  for  all
awards,  net  of  related  tax  effect                 (245,000)
                                                   -------------

Net  Income  -  pro  forma                           $2,615,000
==========================                           ==========

Basic  income  per  share-  as  reported                     66
========================================             ==========

                                                                     (continued)
                                                                            F-11

Basic  income  per  share-  pro  forma                      .64
======================================               ==========

Diluted  income  per  share  -  as  reported                .60
============================================         ==========

Diluted income per share -pro forma                         .59
============================================         ==========



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

Inventories  consist  of  the  following:


December 31,                  2006            2005
                              ----            -----
Raw materials            $5,245,000     $4,637,000
Work-in-progress          3,138,000      3,813,000
Finished goods              609,000        605,000
                         ----------     ----------
                         $8,992,000     $9,055,000


 5.   COMPREHENSIVE INCOME:
---------------------------

For the years ended December 31, 2006 and 2005, total comprehensive income was
$2,428,000 and $2,683,000, respectively. Comprehensive income consists  of net
income and unrealized gains and losses on marketable securities.


  6.     INTANGIBLE ASSETS:
---------------------------


The  Company  applies  Statement  of Financial Accounting Standards ("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.

Intangible  assets  with  finite  lives  are being amortized over three and five
years.  Amortization  expense  for  the  next  four  years  is expected to be as
follows:

                      Year  ending  December  31,

                      2007           $   435,000
                      2008               356,000
                      2009               330,000
                      2010                83,000
                                      ----------

                      Total           $1,204,000
                                      ==========

The  company  recognized  amortization  expense of $435,000 and $326,000 for the
years  ended  December  31,  2006  and  2005,  respectively.

 7.     PROPERTY AND EQUIPMENT:
-------------------------------


                                                                     (continued)
                                                                            F-12


December 31,                          2006                2005
------------                         -----                -----

Leasehold improvements           $   132,000     $      121,000
Computer equipment                   279,000            237,000
Machinery and equipment            1,386,000          1,271,000
Furniture and fixtures               595,000            575,000
                                 -----------        -----------
                                   2,392,000          2,204,000
Accumulated depreciation           1,978,000          1,847,000
                                 -----------        -----------
                                 $   414,000        $   357,000
                                 ===========        ===========

     The  Company  recognized  depreciation expense of $131,000 and $161,000 for
the  years  ended  December  31,  2006  and  2005,  respectively.


  8.     DEBT:
--------------

In April 2005, the Company entered into an amended $2,500,000 credit facility
with a commercial lender secured by accounts receivable, inventory and property
and equipment. In April 2006, the interest rate was reduced.  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 will bear interest equal to the sum of 1.50% plus the one-month LIBOR
rate (5.32% and 4.39% at December 31, 2006 and 2005, respectively).  No amounts
have been borrowed under the credit facility.

The  Company's  long-term  debt  obligations  are  as  follows:


December 31,                                         2006                 2005
-----------                                         -----                 ----

Promissory  note  with the former shareholders
of Tulip, collateralized by Tulip stock,  at
an  interest rate of Prime (8.25% and 7.25% at
December 31, 2006 and 2005,  respectively)
plus 2.00%, payable in quarterly principal
installments of $100,000  through  2010.         $1,350,000           $1,800,000

Term loan agreement collateralized by all
business assets of Company. Payable in
fifty-nine  monthly  principal  payments of
approximately $60,000 and a sixtieth payment
of  approximately  $1,500,000 in 2010. The
loan bears interest equal to the  sum of
1.50% plus one-month LIBOR (5.32% and 4.39%
at December 31, 2006 and 2005, respectively.)     3,869,000            4,584,000

Capitalized  lease  obligation
collateralized by certain machinery,
interest at 8.6%,  payable  in  monthly
installments of $870 through 2007                   10,000                20,000
                                                ----------            ----------
                                                 5,229,000             6,404,000
Less:  current  portion                          1,124,000             1,125,000
                                                ----------           -----------
                                                $4,105,000            $5,279,000
                                                ==========           ===========

                                                                     (continued)
                                                                            F-13

     Principal  payments  due  on  the  Company's long-term debt are as follows:

Year ending December 31,

        2007                $ 1,124,000
        2008                  1,114,000
        2009                  1,114,000
        2010                  1,877,000
                           ------------

                            $ 5,229,000
                            ===========

 9.     STOCK-BASED COMPENSATION PLANS:
---------------------------------------


The Company has 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.  All options and restricted stock
grants  are exercisable at times as determined by the board of directors, not to
exceed  10  years  from  the  date  of  grant.

 The  following  table  summarizes  activity  in  stock  options:

December 31,                      2006                            2005
                                  ----                           -----
                                          Average
                               Weighted-  Remaining                  Weighted-
                               Average    Contractual                Average
                               Exercise   Term                       Exercise
                      Options  Price      (in years)       Options   Price
                    ---------  -------   ----------       --------   --------
Outstanding at
 beginning of year    615,000   $2.96         6           1,158,000    $2.70


Granted                 7,000    7.85         9               5,000     8.78

Forfeited              (2,000)   6.66         -                -          -

Exercised             (13,000)   1.55         -            (548,000)    2.48
                      -------  -----        ----          ---------    -----
Outstanding at end of
 year (Vested and
 expected to vest)     607,000  $3.03         5             615,000    $2.96
                     =========  =====       ====          =========   ======
Outstanding
 exercisable at end
 of year               599,000  $2.97        5             610,000    $2.91
                      ========  ======      ====          ========    ====
Weighted-average fair
 value of options granted
 during the year                $4.31                                 $5.79
                                =====                                  =====

                                                                     (continued)
                                                                            F-14

The  following  table summarizes information about stock options outstanding and
exercisable  at  December  31,  2006:
                      Options  Outstanding              Options  Exercisable
                      --------------------             ---------------------
                              Weighted-
                              average      Weighted-                Weighted-
                              Remaining    average                  average
Range  of         Number      Contractual  Exercise     Number      Exercise
Exercise  Prices  Outstanding Life         Price        Exercisable Price
----------------  ----------  ----------  -------    -------------  -------
$  .60  - $1.07     169,000     4.00       $1.06       169,000      $1.06
$1.26  -  $1.62      25,000     3.00       $1.34        25,000      $1.34
$1.92  -  $2.04     159,000     3.00       $1.92       159,000      $1.92
$2.40  -  $3.70       9,000     4.00       $3.42         9,000      $3.42
$4.51  -  $9.28     245,000     7.00       $5.28       237,000      $5.20
--------------   ----------   ------     -------       -------     --------
$  .60  -  $9.28    607,000     5.00       $3.03       599,000      $2.97
================  ========    ======     =======       =======     =======

At  December  31,  2006, 340,000 shares of common stock were reserved for future
issuance  of  stock  options,  restricted  stock  and stock appreciation rights.

At  December  31,  2006,  the  aggregate  intrinsic  value  of  options
outstanding(vested  and  expected  to  vest)  was  $3,112,000  and the aggregate
intrinsic  value  of options exercisable was $3,110,000.  The intrinsic value of
options  exercised  during  the  year  ended December 31, 2006 was approximately
$129,000.

The  Company  estimated the fair value of its stock option awards on the date of
grant  using  the Black-Scholes valuation model for 2006 grants and the Binomial
calculation model for 2005 grants.  The assumptions used for stock grants issued
during  the  following  periods  were  as  follows:

December  31,                                  2006                      2005
-------------                                 ------                  --------

Dividend  Yield                                  -                         -

Expected  Volatility                    53.86%  to 55.52%                55.00%

Risk-free interest rate                  4.87%  to  5.21%                3.92%

Expected  life  of  options  (in  years)       5.50                      9.01

Expected  volatility  assumptions  utilized  for 2006 and 2005 were based on the
volatility  of  the  Company's  stock  price  for  three  years  and  one  year,
respectively,  prior  to  grant date.  The risk-free rate is derived from the 10
year  U.S.  treasury  yield  on  grant date.  Expected life 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.  Expected life for 2005 was
based  on  prior  history  of option activity.  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,  2006:

                                                                     (continued)
                                                                            F-15

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

Nonvested  stock  options
 at  January  1,  2006          5,000                 $5.79

Granted                         8,000                  4.31

Vested                         (4,000)                 5.79

Forfeited                      (1,000)                 5.79
                                -----                  ----

Nonvested  stock  options
 at  December  31,  2006        8,000                 $4.31
                                =====                 =====

At  December  31, 2006, there was approximately $13,000 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 2006 and 2005 was $176,000.  As of December 31, 2006, the Company has
unearned  compensation  of  $1,164,000  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.

  10.     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 $220,000 and $184,000 to the plan during
the  years  ended  December  31,  2006  and  2005,  respectively.


                                                                            F-16

11.     INCOME TAXES:
----------------------

The  Company  utilized  net  operating loss carryforwards to offset income taxes
except  for  a  $40,000 and $30,000 state income tax expense in Pennsylvania for
the  years  ended  December  31,  2006  and  2005,  respectively.

At December 31, 2006 and 2005, 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  $22,000,000  and  $7,200,000, respectively, at December 31, 2006.
The  net  operating  loss  carryforwards  expire  through  2025.

During the years ended December 31, 2006 and 2005, 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,                                      2006                2005
                                                 -----               -----
Tax at U.S. statutory rates                       34.0%              34.0%
State taxes                                        8.0                7.0
Utilization of net operating loss carryforward   (40.0)             (40.0)
                                                ------              ------
                                                   2.0%              1.0%
The deferred tax asset is comprised of the following:

December 31,                                         2006               2005
------------                                         -----              -----

Alternative minimum tax credit carryforward        $ 573,000        $  573,000
-------------------------------------------
Net operating loss and capital loss carryforwards
 (including pre-acquisition net operating loss
 carryforwards)                                    7,661,000         8,774,000
---------------
Temporary differences in bases of assets and
 liabilities:
  Accounts receivable and inventory                  254,000           413,000
  Stock-based compensation                            77,000              -
  Goodwill                                           (95,000)          122,000
  Deferred revenue                                   188,000           219,000
  Accrued expenses                                   137,000           100,000
  Property and equipment                             (67,000)          (13,000)
                                                    ---------        ----------
                                                     494,000           841,000
                                                   ---------         ----------
Total deferred tax asset                           8,728,000        10,188,000

Valuation allowances                              (6,678,000)       (8,185,000)
                                               ---------------   -------------
Net deferred tax asset                          $  2,050,000     $   2,003,000
                                                ============     =============


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

Sales to significant customers accounted for approximately 45% (13%, 11%, 11%
and 10%)  and 51% (17%, 12%, 11% and 11%) of the Company's consolidated net
sales for the years ended December 31, 2006 and 2005, respectively.

                                                                     (continued)
                                                                            F-17

Significant  customers  of  the  Company's  Electronics  Group  accounted  for
approximately  61%  (16%,  15%, 15% and 15%)  and 51% (19%, 18% and 14%)  of the
Electronics  Group's  net  sales for the years ended December 31, 2006 and 2005,
respectively.

Significant  customers  of the Company's Power Group accounted for approximately
36%  (13%, 12% and 11%) and 31% (17% and 14%) of the Power Group's net sales for
2006  and  2005,  respectively.

Certain  significant customers of the Company sell the Company's products to the
U.S.  government. Accordingly, 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.


 13.     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. The Company also has a capital lease obligation for equipment acquired
in  2002.

Future  minimum  lease  payments as of December 31, 2006 under all operating and
capital  lease  agreements  that  have  initial or remaining noncancelable lease
terms  in  excess  of  one  year  are  as  follows:

Year ending December 31,

     2007                              $   621,000
     2008                                  586,000
     2009                                  559,000
     2010                                  502,000
     2011                                  479,000
     Thereafter                            559,000
                                       -----------
Total future minimum lease payments     $3,306,000
                                       ===========

Rent  expense  for  operating leases was approximately $525,000 and $499,000 for
the  years  ended  December  31,  2006  and  2005,  respectively.


                                                                            F-18

14.     COMMITMENTS   AND CONTINGENCIES:
-----------------------------------------

The  Company  has  employment agreements with its three executive officers which
may  be  terminated  by the Company with not less than three years' prior notice
and  with  four  other  principal officers, for aggregate annual compensation of
$1,960,000.  In  the  event of a change in control of the Company, the executive
officers  have  the  right  to  elect  a  lump-sum  payment  representing future
compensation  due  them  over  the  remaining  years  of  their  agreements.  In
addition,  the  seven  officers are entitled to bonuses based on a percentage of
earnings  before  taxes,  as  defined.  Total  bonus  compensation  expense  was
approximately  $380,000  and  $398,000 for the years ended December 31, 2006 and
2005,  respectively.


15.     BUSINESS SEGMENTS:
----------------------------


The  Company  operates  through two business segments.  The Electronics Group is
comprised  of  the  Orbit  Instrument  Division  and  the Company's wholly owned
subsidiary,  Tulip Development Laboratory, Inc. and its manufacturing affiliate,
TDL  Manufacturing,  Inc.  The  Electronics  Group  is  engaged  in  the design,
manufacture  and  sale  of  customized electronic components and subsystems. The
Company's  Power  Group,  through  the  Behlman Electronics, Inc. subsidiary, is
engaged  in the design, manufacture and sale of distortion free commercial power
units,  power  conversion  devices  and  electronic  devices for measurement and
display.


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,  2006  and  2005:

Year ended December 31,                            2006               2005
-----------------------                            ----               ----

Net sales:

Electronics Group:
  Domestic                                     $ 15,291,000     $ 13,878,000
  Foreign                                         1,031,000          868,000
                                               ------------     ------------
Total Electronics Group                          16,322,000       14,746,000

Power Group:
  Domestic                                        8,170,000        8,894,000
  Foreign                                           523,000          614,000
                                                -----------     ------------
Total Power Group                                 8,693,000        9,508,000
                                                -----------     ------------
Total net sales                                 $25,015,000      $24,254,000
                                                ===========      ===========

Income (expenses) from operations:
  Electronics Group                             $ 3,017,000     $  2,812,000
  Power Group                                       996,000        1,587,000
  General corporate expenses not allocated       (1,469,000)      (1,538,000)

                                                                     (continued)
                                                                            F-19

   Interest expense                                (443,000)        (333,000)
   Investment and other income, net                 358,000          186,000
                                                ------------       -----------
  Income from operations
   before income taxes                          $ 2,459,000     $  2,714,000
                                                ===========     ============

December 31,                                       2006              2005
                                                 -------            -------
Assets:
  Electronics Group                           $  8,680,000      $  8,383,000
  Power Group                                    4,583,000         4,854,000
  General corporate assets not allocated        17,952,000        15,915,000
                                               -----------      ------------

        TOTAL ASSETS                           $31,215,000       $29,152,000
                                               ===========       ===========

Depreciation and amortization:
  Electronics Group                          $     544,000    $      468,000
  Power Group                                       22,000            19,000
  Corporate                                         40,000           199,000
                                               -----------       -----------
       TOTAL DEPRECIATION AND AMORTIZATION   $     606,000    $      686,000
                                             =============    ==============

16.   INCOME PER COMMON SHARE:
------------------------------

The following table sets forth the computation of basic and diluted income
per common share:
Year Ended December 31,                               2006             2005
-----------------------                           --------          -------

Denominator:
  Denominator for basic income per share -
  weighted-average common shares                   4,302,000        4,056,000

Effect of dilutive securities:
  Unearned portion of restricted stock awards        101,000           65,000
  Employee and director stock options                235,000          348,000
                                                   ---------        ---------
Dilutive potential common shares                     336,000          413,000
                                                   ---------        ---------
 Denominator for diluted income
 per share - weighted-average common
 shares and assumed conversions                     4,638,000       4,469,000
                                                  ===========      ==========

The  numerator  for  basic  and  diluted  income  per  share for the years ended
December  31,  2006  and  2005  is  the  net  income  for  each  year.

Stock  options  totaling  6,000  shares  were  outstanding during the year ended
December  31,  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.


                                                                            F-20


  17.     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, 2006 and 2005, the total amount paid
under  this  lease  was  approximately  $111,000  and  $82,000,  respectively.

                                                                            F-21

                                   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  30,  2007                    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        March 30, 2007
-------------------          Officer and Director
Dennis Sunshine             (Principal Executive Officer)

/s/ Mitchell Binder          Executive Vice President,         March 30, 2007
--------------------         Chief Financial Officer,
Mitchell Binder              and Director
                            (Principal Financial and
                             Accounting Officer)

/s/ Bruce Reissman           Executive Vice President,         March 30, 2007
------------------           Chief Operating Officer
Bruce Reissman               and Director

/s/ Arthur Rhein             Director                          March 30, 2007
-----------------
Arthur Rhein

 /s/ Bernard Karcinell       Director                          March 30, 2007
----------------------
Bernard Karcinell

/s/ Lee Feinberg             Director                          March 30, 2007
-----------------
Lee Feinberg

/s/ H. William Coogan, Jr.  Director                          March 30, 2007
---------------------------
H. William Coogan, Jr.