----

----

| Delaware                        | 77-0130894          |
|---------------------------------|---------------------|
| (State or Other jurisdiction of | (IRS Employer       |
| incorporation or organization)  | Identification No.) |

| 1000 Avenida Acaso                       |       |
|------------------------------------------|------------|
| Camarillo, California                    | 93012      |
| (Address of principal executive offices) | (Zip Code) |

| (805) 388-1345                                            |
|-----------------------------------------------------------|
| (Registrant’s telephone number including area code) |

| Large accelerated filer o                                             | Accelerated filer o                         |
|-----------------------------------------------------------------------|---------------------------------------------|
| Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company  þ |

----

----

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|  AML Communications, Inc.Index to Form 10-QJune 30, 2009  |
|---------------------------------------------------------------------|
|                                                                |   |   |
| Item 1.                                                             | Financial Statements (Unaudited) | 3 |
|                                                                | Unaudited Consolidated Balance Sheet as of June 30, 2009 and Consolidated Balance Sheet as of March 31, 2009 | 3 |
|                                                                | Unaudited Consolidated Statements of Income for the three month periods ended June 30, 2009 and June 30, 2008 | 4 |
|                                                                | Unaudited Consolidated Statements of Cash flows for the three month periods ended June 30, 2009 and June 30, 2008 | 5 |
|                                                                | Notes to Unaudited Consolidated Financial Statements | 6 |
| Item 2.                                                             | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 17 |
| Item 3.                                                             | Quantitative and Qualitative Disclosures About Market Risk | 22 |
| Item 4.                                                             | Controls and Procedures | 22 |
| Part II                                                             | Other Information | 23 |
| Item 1.                                                             | Legal Proceedings | 23 |
| Item 1A.                                                            | Risk Factors | 23 |
| Item 2.                                                             | Unregistered Sales of Equity Securities and Use of Proceeds | 23 |
| Item 3.                                                             | Defaults Upon Senior Securities | 23 |
| Item 4.                                                             | Submission of Matters to a Vote of Security Holders | 23 |
| Item 5.                                                             | Other Information | 23 |
| Item 6.                                                             | Exhibits | 23 |
|                                                                | SIGNATURES | 24 |

----

| Item 1. | Financial Statements |
|---------|----------------------|

|                                                                                                                                                                                                                       |   | June 30, 2009 |       |   | March 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|---------------------|--------|
| ASSETS                                                                                                                                                                                                                     |   |          |       |   |                |   |
| Current Assets:                                                                                                                                                                                                            |   |          |       |   |                |   |
| Cash and cash equivalents                                                                                                                                                                                                  |   | $             | 1,203,000  |   |                | $      | 1,581,000 |   |
| Accounts receivable, net                                                                                                                                                                                                   |   |          | 2,779,000  |   |                |   | 2,367,000 |   |
| Inventories, net                                                                                                                                                                                                           |   |          | 3,366,000  |   |                |   | 3,290,000 |   |
| Note receivable                                                                                                                                                                                                            |   |          | -          |   |                |   | 7,000 |   |
| Prepaid expenses                                                                                                                                                                                                           |   |          | 192,000    |   |                |   | 189,000 |   |
| Deferred tax asset - current                                                                                                                                                                                               |   |          | 805,000    |   |                |   | 867,000 |   |
| Total current assets                                                                                                                                                                                                       |   |          | 8,345,000  |   |                |   | 8,301,000 |   |
|                                                                                                                                                                                                                       |   |          |       |   |                |   |   |   |
| Property and equipment, at cost                                                                                                                                                                                            |   |          | 7,469,000  |   |                |   | 7,313,000 |   |
| Less: Accumulated depreciation                                                                                                                                                                                             |   |          | (5,277,000 | )      |                |   | (5,229,000 | ) |
| Property and equipment, net                                                                                                                                                                                                |   |          | 2,192,000  |   |                |   | 2,084,000 |   |
|                                                                                                                                                                                                                       |   |          |       |   |                |   |   |   |
| Deferred tax asset                                                                                                                                                                                                         |   |          | 3,916,000  |   |                |   | 3,916,000 |   |
| Intangible Assets:                                                                                                                                                                                                         |   |          |       |   |                |   |   |   |
| Technologies, net                                                                                                                                                                                                          |   |          | 1,729,000  |   |                |   | 1,778,000 |   |
| Patents, net                                                                                                                                                                                                               |   |          | 69,000     |   |                |   | 75,000 |   |
| Customer relationship, net                                                                                                                                                                                                 |   |          | 39,000     |   |                |   | 41,000 |   |
| Trademarks and brand names                                                                                                                                                                                                 |   |          | 203,000    |   |                |   | 203,000 |   |
|                                                                                                                                                                                                                       |   |          | 2,040,000  |   |                |   | 2,097,000 |   |
| Deposits                                                                                                                                                                                                                   |   |          | 36,000     |   |                |   | 33,000 |   |
| Total Assets                                                                                                                                                                                                               |   | $             | 16,529,000 |   |                | $      | 16,431,000 |   |
|                                                                                                                                                                                                   |   |          |       |   |                |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                 |   |          |       |   |                |   |   |   |
|                                                                                                                                                                                                                       |   |          |       |   |                |   |   |   |
| Current Liabilities:                                                                                                                                                                                                       |   |          |       |   |                |   |   |   |
| Line of credit                                                                                                                                                                                                             |   | $             | 412,000    |   |                | $      | 496,000 |   |
| Accounts payable                                                                                                                                                                                                           |   |          | 1,043,000  |   |                |   | 854,000 |   |
| Current portion of long term debt                                                                                                                                                                                          |   |          | 73,000     |   |                |   | 58,000 |   |
| Short term note payable                                                                                                                                                                                                    |   |          | 46,000     |   |                |   | - |   |
| Accrued expenses:                                                                                                                                                                                                          |   |          |       |   |                |   |   |   |
| Accrued payroll and payroll related expenses                                                                                                                                                                               |   |          | 304,000    |   |                |   | 659,000 |   |
| Accrued income taxes                                                                                                                                                                                                       |   |          | -          |   |                |   | - |   |
| Other accrued liabilities                                                                                                                                                                                                  |   |          | 269,000    |   |                |   | 242,000 |   |
| Total current liabilities                                                                                                                                                                                                  |   |          | 2,147,000  |   |                |   | 2,309,000 |   |
|                                                                                                                                                                                                                       |   |          |       |   |                |   |   |   |
| Long term notes payable, net of current portion                                                                                                                                                                            |   |          | 591,000    |   |                |   | 594,000 |   |
| Capital lease obligations, net of current portion                                                                                                                                                                          |   |          | 157,000    |   |                |   | - |   |
| Commitments                                                                                                                                                                                                                |   |          | -          |   |                |   | - |   |
|                                                                                                                                                                                                                       |   |          |       |   |                |   |   |   |
| Stockholders’ Equity:                                                                                                                                                                                                |   |          |       |   |                |   |   |   |
| Common stock, $0.01 par value: 15,000,000 shares authorized; 10,654,665 and 10,654,665 shares issued and outstanding at June 30, 2009 and March 31, 2009, respectively. 38,600 shares held in treasury as of June 30, 2009 |   |          | 106,000    |   |                |   | 106,000 |   |
| Capital in excess of par value                                                                                                                                                                                             |   |          | 14,075,000 |   |                |   | 14,034,000 |   |
| Accumulated deficit                                                                                                                                                                                                        |   |          | (520,000   | )      |                |   | (612,000 | ) |
| Less: Treasury stock at cost                                                                                                                                                                                               |   |          | (27,000    | )      |                |   | - |   |
| Total stockholders’ equity                                                                                                                                                                                           |   |          | 13,634,000 |   |                |   | 13,528,000 |   |
| Total Liabilities and stockholders’ equity                                                                                                                                                                           |   | $             | 16,529,000 |   |                | $      | 16,431,000 |   |

----

|                                                                  |   | Three Month Periods Ended |       |
|-----------------------------------------------------------------------|--------|---------------------------|------------|
|                                                                  |   | June 30,                  |       |   | June 30, |   |
|                                                                  |   | 2009                      |       |   | 2008 |   |
|                                                                  |   |                      |       |   |   |   |
| Net sales                                                             |   | $                         | 3,351,000  |   |   | $ | 3,260,000 |   |
| Cost of goods sold                                                    |   |                      | 1,970,000  |   |   |   | 1,782,000 |   |
| Gross profit                                                          |   |                      | 1,381,000  |   |   |   | 1,478,000 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Operating expenses:                                                   |   |                      |       |   |   |   |   |   |
| Selling, general & administrative                                 |   |                      | 694,000    |   |   |   | 734,000 |   |
| Research and development                                              |   |                      | 535,000    |   |   |   | 481,000 |   |
| Total operating expenses                                              |   |                      | 1,229,000  |   |   |   | 1,215,000 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Income from operations                                                |   |                      | 152,000    |   |   |   | 263,000 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Gain on settlement of debt                                            |   |                      | —    |   |   |   | 521,000 |   |
| Other income/(Interest & other expense), net                      |   |                      | 2,000      |   |   |   | (33,000 | ) |
| Total other income (expense)                                          |   |                      | 2,000      |   |   |   | 488,000 |   |
| Income before provision for income taxes                              |   |                      | 154,000    |   |   |   | 751,000 |   |
| Provision for income taxes                                            |   |                      | 62,000     |   |   |   | 300,000 |   |
| Net income                                                            |   | $                         | 92,000     |   |   | $ | 451,000 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Basic earnings per common share                                       |   | $                         | 0.01       |   |   | $ | 0.04 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Basic weighted average number of shares of common stock outstanding   |   |                      | 10,655,000 |   |   |   | 10,422,000 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Diluted earnings per common share                                     |   | $                         | 0.01       |   |   | $ | 0.04 |   |
|                                                                  |   |                      |       |   |   |   |   |   |
| Diluted weighted average number of shares of common stock outstanding |   |                      | 10,718,000 |   |   |   | 11,130,000 |   |
|                                                                  |   |                      |       |   |   |   |   |   |

----

|                                                                          |   | Three Month Periods Ended |      |
|-------------------------------------------------------------------------------|--------|---------------------------|-----------|
|                                                                          |   | June 30, 2009             |      |   | June 30, 2008 |   |
| Cash Flows from Operating Activities:                                         |   |                      |      |   |   |   |
| Net income                                                                    |   | $                         | 92,000    |   |   | $ | 451,000 |   |
| Adjustments to reconcile net income to net cash used in operating activities: |   |                      |      |   |   |   |   |   |
| Depreciation                                                                  |   |                      | 168,000   |   |   |   | 171,000 |   |
| Bad debt expense                                                              |   |                      | (2,000    | ) |   |   | 3,000 |   |
| Inventory reserves                                                            |   |                      | (42,000   | ) |   |   | 9,000 |   |
| Stock options compensation                                                    |   |                      | 41,000    |   |   |   | 36,000 |   |
| Amortization                                                                  |   |                      | 57,000    |   |   |   | 68,000 |   |
| Gain on settlement of debt                                                    |   |                      | —   |   |   |   | (521,000 | ) |
| Gain on sale of fixed assets                                                  |   |                      | (21,000   | ) |   |   | — |   |
| Changes in assets and liabilities:                                            |   |                      |      |   |   |   |   |   |
| Decrease (increase) in:                                                       |   |                      |      |   |   |   |   |   |
| Accounts receivable                                                           |   |                      | (407,000  | ) |   |   | 187,000 |   |
| Inventories                                                                   |   |                      | (35,000   | ) |   |   | (239,000 | ) |
| Other current assets                                                          |   |                      | —   |   |   |   | 17,000 |   |
| Deferred Tax Assets                                                           |   |                      | 62,000    |   |   |   | 300,000 |   |
| Increase (decrease) in:                                                       |   |                      |      |   |   |   |   |   |
| Accounts payable                                                              |   |                      | 188,000   |   |   |   | (50,000 | ) |
| Accrued income taxes                                                          |   |                      | —   |   |   |   | (27,000 | ) |
| Accrued expenses                                                              |   |                      | (328,000  | ) |   |   | (493,000 | ) |
| Net cash used in operating activities                                         |   |                      | (227,000  | ) |   |   | (88,000 | ) |
|                                                                          |   |                      |      |   |   |   |   |   |
| Cash Flows from Investing Activities:                                         |   |                      |      |   |   |   |   |   |
| Acquisition of property and equipment                                         |   |                      | (36,000   | ) |   |   | (35,000 | ) |
| Net cash used in investing activities                                         |   |                      | (36,000   | ) |   |   | (35,000 | ) |
|                                                                          |   |                      |      |   |   |   |   |   |
| Cash Flows from Financing Activities:                                         |   |                      |      |   |   |   |   |   |
| Cost of treasury stock                                                        |   |                      | (27,000   | ) |   |   | — |   |
| Proceeds from (payments on) line of credit                                    |   |                      | (84,000   | ) |   |   | (96,000 | ) |
| Payments on notes payable                                                     |   |                      | (2,000    | ) |   |   | (9,000 | ) |
| Principle payments capital lease obligations                                  |   |                      | (2,000    | ) |   |   | — |   |
| Net cash used in financing activities                                         |   |                      | (115,000  | ) |   |   | (105,000 | ) |
|                                                                          |   |                      |      |   |   |   |   |   |
| Net decrease in Cash and Cash Equivalents                                     |   |                      | (378,000  | ) |   |   | (228,000 | ) |
| Cash and Cash Equivalents, beginning of period                                |   |                      | 1,581,000 |   |   |   | 1,205,000 |   |
| Cash and Cash Equivalents, end of period                                      |   | $                         | 1,203,000 |   |   | $ | 977,000 |   |
| Supplemental disclosure of cash flow information:                             |   |                      |      |   |   |   |   |   |
| Cash paid during the period for:                                              |   |                      |      |   |   |   |   |   |
| Interest                                                                      |   | $                         | 20,000    |   |   | $ | 35,000 |   |
| Income Taxes                                                                  |   | $                         | 20,000    |   |   | $ | 45,000 |   |
| Supplemental disclosure of non-cash flow investing and financing activity:    |   |                      |      |   |   |   |   |   |
| Debt incurred to acquire property and equipment                               |   | $                         | 219,000   |   |   | $  | — |   |

----

| 1.  | Basis of Presentation |
|----------|-----------------------|

| 2.  | Earnings Per Share |
|----------|--------------------|

----

| Three months ended June 30, 2009 (unaudited)                              |   | Net Income |    |   | Shares |   |       | Per Share |   |
|---------------------------------------------------------------------------|--------|------------|---------|--------|--------|--------|------------|-----------|--------|
| Basic earnings per shares:                                                |   |       |    |   |   |   |       |      |   |
|      Net income available to common stockholders |   | $          | 92,000  |   |   |   | 10,655,000 |      |   | $ | 0.01 |   |
| Effect of dilutive securities:                                            |   |       |    |   |   |   |       |      |   |   |   |   |
|      Stock options                               |   |       |    |   |   |   | 63,000     |      |   |   |   |   |
| Diluted earnings per share:                                               |   | $          | 92,000  |   |   |   | 10,718,000 |      |   | $ | 0.01 |   |
|                                                                      |   |       |    |   |   |   |       |      |   |   |   |   |
| Three months ended June 30, 2008 (unaudited)                              |   | Net Income |    |   | Shares |   |       | Per Share |   |
| Basic earnings per shares:                                                |   |       |    |   |   |   |       |      |   |   |   |   |
|      Net income available to common stockholders |   | $          | 451,000 |   |   |   | 10,422,000 |      |   | $ | 0.04 |   |
| Effect of dilutive securities:                                            |   |       |    |   |   |   |       |      |   |   |   |   |
|      Stock options & warrants                |   |       |    |   |   |   | 708,000    |      |   |   |   |   |
| Diluted earnings per share:                                               |   | $          | 451,000 |   |   |   | 11,130,000 |      |   | $ | 0.04 |   |
|                                                                      |   |       |    |   |   |   |       |      |   |   |   |   |

| 3. | Accounts Receivable |
|----|---------------------|

|                    |   | June 30, 2009 (Unaudited) |      |   | March 31, 2009 |   |
|-------------------------|--------|--------------------------------|-----------|--------|----------------|--------|
|                    |   |                           |      |   |           |   |
| Accounts receivable     |   | $                              | 2,876,000 |   |           | $      | 2,466,000 |   |
| Allowance for bad debts |   |                           | (97,000   | )      |           |   | (99,000 | ) |
|                    |   | $                              | 2,779,000 |   |           | $      | 2,367,000 |   |

| 4.  | Inventories |
|----------|-------------|

|                                |   | June 30, 2009 (Unaudited) |      |   | March 31, 2009 |   |
|-------------------------------------|--------|--------------------------------|-----------|--------|----------------|--------|
|                                |   |                           |      |   |           |   |
| Raw material                        |   | $                              | 2,617,000 |   |           | $      | 2,604,000 |   |
| Work-in-process                     |   |                           | 816,000   |   |           |   | 873,000 |   |
| Finished goods                      |   |                           | 215,000   |   |           |   | 137,000 |   |
| Allowance for slow moving inventory |   |                           | (282,000  | )      |           |   | (324,000 | ) |
|                                |   | $                              | 3,366,000 |   |           | $      | 3,290,000 |   |

| Machinery and equipment | 3 to 5 years                                    |
|-------------------------|-------------------------------------------------|
| Furniture and fixtures  | 5 years                                         |
| Leasehold improvements  | Shorter of life of lease or life of improvement |
| Building                | 30 years                                        |

----

|                     |   | June 30, 2009 (Unaudited) |       |   | March 31,  2009 |   |
|--------------------------|--------|--------------------------------|------------|--------|----------------------|--------|
| Building                 |   | $                              | 800,000    |   |                 | $      | 800,000 |   |
| Machinery and equipment  |   |                           | 5,781,000  |   |                 |   | 5,631,000 |   |
| Furniture and fixtures   |   |                           | 192,000    |   |                 |   | 192,000 |   |
| Leasehold improvements   |   |                           | 696,000    |   |                 |   | 690,000 |   |
| Accumulated depreciation |   |                           | (5,277,000 | )      |                 |   | (5,229,000 | ) |
|                     |   | $                              | 2,192,000  |   |                 | $      | 2,084,000 |   |

| 6.  | Intangible Assets |
|----------|-------------------|

|  Intangibles (unaudited)                            |   | Gross Carrying Amount |      |   | Accumulated Amortization |   |       | Net    |   |
|----------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|------------|--------|--------|
|                                                     |   |                       |      |   |                     |   |       |   |   |
| Amortized intangibles:                                   |   |                       |      |   |                     |   |       |   |   |
|      Patents                    |   | $                          | 189,000   |   |                     | $      | (120,000   | )      |   | $ | 69,000 |   |
|      Existing Technology        |   |                       | 2,504,000 |   |                     |   | (775,000   | )      |   |   | 1,729,000 |   |
|      Customer Lists             |   |                       | 339,000   |   |                     |   | (339,000   | )      |   |   | — |   |
|      Customer Relationship      |   |                       | 50,000    |   |                     |   | (11,000    | )      |   |   | 39,000 |   |
|      Trademarks and Brand Names |   |                       | 24,000    |   |                     |   | (2,000     | )      |   |   | 22,000 |   |
|                                                     |   |                       |      |   |                     |   |       |   |   |   |   |   |
| Unamortized intangibles:                                 |   |                       |      |   |                     |   |       |   |   |   |   |   |
|      Trademarks                 |   |                       | 181,000   |   |                     |   | —    |   |   |   | 181,000 |   |
|                                                     |   | $                          | 3,287,000 |   |                     | $      | (1,247,000 | )      |   | $ | 2,040,000 |   |

| Intangibles                                              |   | Gross Carrying Amount |      |   | Accumulated Amortization |   |       | Net    |   |
|----------------------------------------------------------|--------|-----------------------|-----------|--------|-------------------------------|--------|------------|--------|--------|
|                                                     |   |                  |      |   |                          |   |       |   |   |
| Amortized intangibles:                                   |   |                  |      |   |                          |   |       |   |   |
|      Patents                    |   | $                     | 189,000   |   |                          | $      | (114,000   | )      |   | $ | 75,000 |   |
|      Existing Technology        |   |                  | 2,504,000 |   |                          |   | (726,000   | )      |   |   | 1,778,000 |   |
|      Customer Lists             |   |                  | 339,000   |   |                          |   | (339,000   | )      |   |   | — |   |
|      Customer Relationship      |   |                  | 50,000    |   |                          |   | (9,000     | )      |   |   | 41,000 |   |
|      Trademarks and Brand Names |   |                  | 24,000    |   |                          |   | (2,000     | )      |   |   | 22,000 |   |
|                                                     |   |                  |      |   |                          |   |       |   |   |   |   |   |
| Unamortized intangibles:                                 |   |                  |      |   |                          |   |       |   |   |   |   |   |
|      Trademarks                 |   |                  | 181,000   |   |                          |   | —    |   |   |   | 181,000 |   |
|                                                     |   | $                     | 3,287,000 |   |                          | $      | (1,190,000 | )      |   | $ | 2,097,000 |   |

----

| Twelve month period ending June 30: |     |
|-------------------------------------|----------|
| 2010                                | $228,000 |
| 2011                                | $228,000 |
| 2012                                | $226,000 |
| 2013                                | $205,000 |
| 2014                                | $201,000 |

----

| 7.  | Debt and lease commitments |
|----------|----------------------------|

----

|                                |   | Operating Leases |      |
|-------------------------------------|--------|------------------|-----------|
| Twelve month period ending June 30, |   |             |      |
| 2010                                |   | $                | 208,000   |   |
| 2011                                |   |             | 212,000   |   |
| 2012                                |   |             | 216,000   |   |
| 2013                                |   |             | 221,000   |   |
| 2014                                |   |             | 225,000   |   |
| Thereafter                          |   |             | 191,000   |   |
|                                |   | $                | 1,273,000 |   |

|                                                                             |   |   |    |
|----------------------------------------------------------------------------------|--------|--------|---------|
| Future minimum lease payments under the lease for the period ended June 30, 2009 |   | $      | 230,000 |   |
| Less: approximate amount representing interest                                   |   |   | (31,000 | ) |
| Present value of minimum lease payments                                          |   |   | 199,000 |   |
| Less: current portion                                                            |   |   | (60,000 | ) |
| Non current portion                                                              |   | $      | 139,000 |   |

| 8.  | Equity Transactions |
|----------|---------------------|

----

|                        |   | Optionsoutstanding |      |   | WeightedAverageExercisePrice |   |   | AggregateIntrinsic Value |
|-----------------------------|--------|--------------------|-----------|--------|------------------------------|--------|--------|--------------------------|
| Outstanding, March 31, 2009 |   |               | 2,924,450 |   |                         | $      | 1.07   |                     |   |   |
| Granted                     |   |               | -         |   |                         |   |   |                     |   |   |
| Forfeited                   |   |               | 55,500    |   |                         |   | 1.42   |                     |   |   |
| Exercised                   |   |               | -         |   |                         |   |   |                     |   |   |
| Outstanding, June 30, 2009  |   |               | 2,868,950 |   |                         | $      | 1.06   |                     | $ | - |

| Range ofExercise Prices |   |   | TotalOptionsOutstanding |      |   | WeightedAverageRemaining Life(Years) |   |   | TotalWeightedAverageExercise Price |   |   | OptionsExercisable |   |   | WeightedAverageExercise Price |      |
|-------------------------|--------|--------|-------------------------|-----------|--------|--------------------------------------|--------|--------|------------------------------------|--------|--------|--------------------|--------|--------|-------------------------------|-----------|
|                    |   |   |                    |      |   |                                 |   |   |                               |   |   |               |   |   |                          |      |
| $0.11 - $0.50           |   |   |                    | 86,200    |   |                                 |   | 3.94   |                               |   | $      | 0.16               |   |   |                          | 86,200    |   |   | $ | 0.16 |   |
| $0.51 - $1.00           |   |   |                    | 1,620,250 |   |                                 |   | 4.91   |                               |   | $      | 0.91               |   |   |                          | 1,348,415 |   |   | $ | 0.92 |   |
| $1.01 - $2.00           |   |   |                    | 1,131,500 |   |                                 |   | 7.57   |                               |   | $      | 1.29               |   |   |                          | 302,666   |   |   | $ | 1.24 |   |
| $2.01 - $5.00           |   |   |                    | 31,000    |   |                                 |   | 0.95   |                               |   | $      | 3.19               |   |   |                          | 31,000    |   |   | $ | 3.19 |   |
| $0.11 - $5.00           |   |   |                    | 2,868,950 |   |                                 |   | 6.07   |                               |   | $      | 1.06               |   |   |                          | 1,768,281 |   |   | $ | 0.98 |   |

|                             |   | Non-Vested Options |      |   | Weighted Average Exercise Price |   | Weighted Average Vesting Period | Grant Date Fair Value |
|----------------------------------|--------|-------------------------|-----------|--------|---------------------------------|--------|---------------------------------|----------------------------|
| Non-vested - March 31, 2009      |   |                    | 1,143,019 |   |                            |   | 1.20                            |                       | 1.84 Years |   |
| Granted                          |   |                    | -         |   |                            |   |                            |                       |   |   |
| Forfeited                        |   |                    | -         |   |                            |   |                            |                       |   |   |
| Vested                           |   |                    | (41,350   | )      |                            |   | 1.17                            |                       |   |   |
| Exercised                        |   |                    | -         |   |                            |   | -                               |                       |   |   |
| Non-vested – June 30, 2009 |   |                    | 1,100,669 |   |                            |   | 1.20                            |                       |         1.70 Years |   |

----

| 9.  | Segments |
|----------|----------|

|                                                      |   | Three Month Periods Ended |   |
|-----------------------------------------------------------|--------|---------------------------|--------|
| (In thousands)                                            |   | June 30, 2009 (Unaudited) |   |   | June 30, 2008(Unaudited) |   |
| Revenue from unrelated entities                           |   |                      |   |   |   |   |
| AML                                                       |   | $                         | 2,668  |   |   | $ | 2,702 |   |
| MPI                                                       |   |                      | 525    |   |   |   | 488 |   |
| Mica-tech                                                 |   |                      | 158    |   |   |   | 70 |   |
|                                                      |   | $                         | 3,351  |   |   | $ | 3,260 |   |
|                                                      |   |                      |   |   |   |   |   |   |
| Income (loss) from operations                             |   |                      |   |   |   |   |   |   |
| AML                                                       |   | $                         | (3     | ) |   | $ | 323 |   |
| MPI                                                       |   |                      | 131    |   |   |   | 74 |   |
| Mica-tech                                                 |   |                      | 24     |   |   |   | (134 | ) |
|                                                      |   | $                         | 152    |   |   | $ | 263 |   |
|                                                      |   |                      |   |   |   |   |   |   |
| Income tax benefit (expense)                              |   |                      |   |   |   |   |   |   |
| AML                                                       |   | $                         | -      |   |   | $ | (118 | ) |
| MPI                                                       |   |                      | (53    | ) |   |   | (30 | ) |
| Mica-tech                                                 |   |                      | (9     | ) |   |   | (152 | ) |
|                                                      |   | $                         | (62    | ) |   | $ | (300 | ) |
|                                                      |   |                      |   |   |   |   |   |   |
| Net income (loss)                                         |   |                      |   |   |   |   |   |   |
| AML                                                       |   | $                         | -      |   |   | $ | 296 |   |
| MPI                                                       |   |                      | 79     |   |   |   | 76 |   |
| Mica-tech                                                 |   |                      | 13     |   |   |   | 79 |   |
|                                                      |   | $                         | 92     |   |   | $ | 451 |   |
|                                                      |   |                      |   |   |   |   |   |   |
| Provision for depreciation and amortization               |   |                      |   |   |   |
| AML                                                       |   | $                         | 144    |   |   | $ | 148 |   |
| MPI                                                       |   |                      | 58     |   |   |   | 56 |   |
| Mica-tech                                                 |   |                      | 23     |   |   |   | 35 |   |
|                                                      |   | $                         | 225    |   |   | $ | 239 |   |
|                                                      |   |                      |   |   |   |   |   |   |
| Capital expenditures                                      |   |                      |   |   |   |   |   |   |
|         AML       |   | $                         | 34     |   |   | $ | 30 |   |
|         MPI       |   |                      | 2      |   |   |   | 5 |   |
|         Mica-tech |   |                      | -      |   |   |   | 0 |   |
|                                                      |   | $                         | 36     |   |   | $ | 35 |   |
|                                                      |   |                      |   |   |   |   |   |   |
|                                                      |   | June 30, 2009 (Unaudited) |   |   | March 31, 2009 |   |
| Total Assets                                              |   |                      |   |   |   |   |   |   |
| AML                                                       |   | $                         | 9,957  |   |   | $ | 9,979 |   |
| MPI                                                       |   |                      | 5,138  |   |   |   | 5,029 |   |
| Mica-tech                                                 |   |                      | 1,434  |   |   |   | 1,423 |   |
|                                                      |   | $                         | 16,529 |   |   | $ | 16,431 |   |

----

| 10.  | Long Term Note Payable |
|-----------|------------------------|

| 11.  | Acquisition of Mica-Tech, Inc. |
|-----------|--------------------------------|

----

| Cash received (paid) |           | Description |
|----------------------|----------------|-------------|
| $                    | 604,000        |        | Mica-Tech’s cash balance as of April 11, 2007 (inflow to the Company’s total cash) |
|                 | ( 590,000 | )           | Cash paid to Mica-Tech during April 2007 acquisition (51% ownership) |
|                 | ( 490     | )           | Cash paid to Mica-Tech’s shareholders during February 08 acquisition (remaining 49% ownership) |
|                 | ( 70,000  | )           | Cash paid for acquisition costs in our 2008 fiscal year |
|                 | 15,000         |        | Cash paid for acquisition costs in our 2007 fiscal year * |
| $                    | ( 41,490  | )           | Net cash used in Mica-Tech acquisition |

|                                                                  |   | February 19, 2008 |       |
|-----------------------------------------------------------------------|--------|------------------------|------------|
| Cash                                                                  |   | $                      | 40,000     |   |
| Receivables, net                                                      |   |                   | 121,000    |   |
| Inventory                                                             |   |                   | 286,000    |   |
| Property and equipment, net                                           |   |                   | 48,000     |   |
| Prepaid assets                                                        |   |                   | 23,000     |   |
| Intangible assets                                                     |   |                   | 3,158,000  |   |
| Total assets acquired                                                 |   | $                      | 3,676,000  |   |
| Current liabilities                                                   |   |                   | (1,089,000 | ) |
| Notes payable                                                         |   |                   | (583,000   | ) |
| Net assets acquired                                                   |   | $                      | 2,004,000  |   |
| Consideration paid in:                                                |   |                   |       |   |
| Cash                                                                  |   |                   | 801,000    |   |
| Capitalization of acquisition cost                                    |   |                   | 70,000     |   |
| Loss from operations from April 11, 2007—February 19, 2008 |   |                   | (484,000   | ) |
| Negative Goodwill                                                     |   |                   | (1,617,000 | ) |

| 12.  | Major customers and vendors |
|-----------|-----------------------------|

----

| 13.  | Repurchase of the Company Shares |
|-----------|----------------------------------|

| 14.  | Reclassifications |
|-----------|-------------------|

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

|   | · | our ability to finance our activities and maintain our financial liquidity; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | our ability to attract and retain qualified, knowledgeable employees; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | the impact of general economic conditions on our business; |
|--------|--------|------------------------------------------------------------|

|   | · | postponements, reductions, or cancellations in orders from new or existing customers; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | the limited number of potential customers for our products; |
|--------|--------|-------------------------------------------------------------|

|   | · | the variability in gross margins on our products; |
|--------|--------|---------------------------------------------------|

|   | · | our ability to design and market new products successfully; |
|--------|--------|-------------------------------------------------------------|

|   | · | our failure to acquire new customers in the future; |
|--------|--------|-----------------------------------------------------|

|   | · | deterioration of business and economic conditions in our markets; |
|--------|--------|-------------------------------------------------------------------|

|   | · | intensely competitive industry conditions with increasing price competition; and |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | the rate of growth in the defense markets. |
|--------|--------|--------------------------------------------|

----

----

----

|   | · | Persuasive evidence of an arrangement exists; |
|--------|--------|-----------------------------------------------|

|   | · | Delivery has occurred or services have been rendered; |
|--------|--------|-------------------------------------------------------|

|   | · | Price is fixed or determinable; and |
|--------|--------|-------------------------------------|

|   | · | Collectibility is reasonably assured. |
|--------|--------|---------------------------------------|

----

|   | · | industry-specific factors (including the reliance upon growth of the defense microwave market, significant competition characterized by rapid technological change, new product development, product obsolescence, and significant price erosion over the life of a product); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to timely develop and produce commercially viable products at competitive prices; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | our ability to produce products which meet the quality standards of both existing and potential new customers; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | our ability to accurately anticipate customer demand; |
|--------|--------|-------------------------------------------------------|

|   | · | our ability to manage expense levels, in light of varying revenue streams; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | the availability and cost of components; |
|--------|--------|------------------------------------------|

|   | · | the impact of worldwide economic and political conditions on our business; and |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | the ability to integrate potential future acquisitions into our existing operations. |
|--------|--------|--------------------------------------------------------------------------------------|

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

| Item 4.  | Controls and Procedures |
|---------------|-------------------------|

----

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

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

| Item 3.  | Defaults Upon Senior Securities |
|---------------|---------------------------------|

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

| Item 5.  | Other Information |
|---------------|-------------------|

| Item 6.  | Exhibits |
|---------------|----------|

----

|   | AML Communications Inc.                                                                                                                                    |                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|   |                                                                                                                                                       |                              |
|   | /s/ Jacob Inbar                                                                                                                                            |                              |
|   | By: Jacob Inbar, President and      Chief Executive Officer      (Principal Executive Officer) | Dated:  August 14, 2009 |

|   |                                                                                                |                              |
|--------|-----------------------------------------------------------------------------------------------------|-----------------------------------|
|   |                                                                                                |                              |
|   | /s/ Heera Lee                                                                                       |                              |
|   | By: Heera Lee, Director of Finance      (Principal Financial Officer) | Dated:  August 14, 2009 |

----

| ExhibitNumber | Description                                                                                                                                                                                                                                         |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1           | Merger Agreement entered into as of May 25, 2004 by and among AML Communications Inc., a Delaware corporation, AML Holdings, LLC, a California limited liability company and Microwave Power, Inc., a California corporation(1) |
| 3.1           | Certificate of Incorporation(2)                                                                                                                                                                                                                     |
| 3.2           | Bylaws(2)                                                                                                                                                                                                                                           |
| 10.1          | Form of Indemnity Agreement(2)                                                                                                                                                                                                                      |
| 10.2          | Lease, dated March 11, 1996, between the Company and Parr-Bohn Properties, Ltd. II, a California Limited Partnership(3)                                                                                                                   |
| 10.3          | Fourth Amended and Restated 1995 Stock Option Agreement at June 10, 2002(4)                                                                                                                                                                    |
| 10.4          | Parr-Bohn Properties First Amendment to lease of 1000 Avenida Acaso, Camarillo, CA.(4)                                                                                                                                                              |
| 10.5          | Employment Agreement with Dr. Marina Bujatti, of MPI, dated June 18, 2004(4)                                                                                                                                                              |
| 10.6          | Employment Agreement with Dr. Franco Sechi, of MPI, dated June 18, 2004(4)                                                                                                                                                                |
| 10.7          | Interim Lease and Proposed Lease Terms(5)                                                                                                                                                                                                           |
| 10.8          | Financing Agreement dated July 8, 2004 with Bridge Bank(6)                                                                                                                                                                                     |
| 10.9          | Enterprise Agreement Number 4627 dated August 26, 2004(7)                                                                                                                                                                                 |
| 10.10         | Business Financing Modification with Bridge Bank, dated December 23, 2005(8)                                                                                                                                                                   |
| 10.11         | Business Financing Modification with Bridge Bank dated January 19,2006(8)                                                                                                                                                                      |
| 10.12         | Fifth Amended and Restated 1995 Stock Option Agreement at July 12, 2005(9)                                                                                                                                                                     |
| 10.13         | Loan Agreement with Bank of America for purchase of MPI building(8)                                                                                                                                                                                 |
| 10.14         | 2005 Equity Incentive Plan(10)                                                                                                                                                                                                                      |
| 10.15         | Business Financing Agreement with Bridge Bank dated July 17, 2006(11)                                                                                                                                                                          |
| 10.16         | Stock Purchase Agreement with Mica-Tech, dated April 11, 2007(12)                                                                                                                                                                              |
| 10.17         | Option Agreement with shareholders and optionholders of Mica-Tech, dated April 11, 2007(12)                                                                                                                                                    |
| 10.18         | Agreement and Plan of Merger by and among AML Communications, Inc., Mica-Tech, Inc., Mica-Tech Acquisition, Inc. and the shareholders of Mica-Tech, Inc. dated as of February 19, 2008(13)                                 |
| 10.19         | Option Agreement—Steven Ow, dated February 19, 2008(13)                                                                                                                                                                                  |
| 10.20         | Parr-Bohn Properties Second Amendment to lease of 1000 Avenida Acaso, Camarillo, CA, dated February 20, 2008(14)                                                                                                                               |
| 10.21         | Business Financing Modification with Bridge Bank, dated April 5, 2007(14)                                                                                                                                                                      |
| 10.22         | Business Financing Modification with Bridge Bank, dated September 16, 2008(15)                                                                                                                                                                      |
| 31.1          | Certification by the Chief Executive Officer(16)                                                                                                                                                                                                    |
| 31.2          | Certification by the Principal Financial Officer(16)                                                                                                                                                                                                |
| 32.1          | Certification pursuant to Section 906 of the Sarbanes Oxley Act(16)                                                                                                                                                                            |
| 32.2          | Certification pursuant to Section 906 of the Sarbanes Oxley Act(16)                                                                                                                                                                            |

| (1) | Previously filed with the Securities and Exchange Commission as Exhibit 10.13 to the Company’s Form 10-KSB for the fiscal year ended March 31, 2004. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Previously filed with the Securities and Exchange Commission as an exhibit to the Registration Statement on Form SB-2 (No. 33-99102-LA) and incorporated herein by reference. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 10-KSB for fiscal year ended March 31, 1996 and incorporated herein by reference |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 10-KSB for the fiscal year ended March 31, 2004 and incorporated herein by reference. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 8-K dated July 6, 2004 and incorporated herein by reference. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 10-QSB for the quarter ended June 30, 2004 and incorporated herein by reference. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 8-K/A dated May 4, 2007 (unredacted version) and incorporated herein by reference. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (8) |  Previously filed with Securities and Exchange Commission as an exhibit to the Company’s Form 10-QSB for the quarter ended December 31, 2005 and incorporated herein by reference. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Previously filed with the Securities and Exchange Commission as an attachment to the Company’s Proxy Statement dated July 29, 2005. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Previously filed with Securities and Exchange Commission as an exhibit to the Company’s Form S-8 Registration Statement (no. 333-131588) dated February 6, 2006 and incorporated herein by reference. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Previously filed with Securities and Exchange Commission as an exhibit to the Company’s Form 10-QSB for the quarter ended June 30, 2006 and incorporated herein by reference. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 8-K dated April 20, 2007 and incorporated herein by reference. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 8-K dated March 3, 2008 and incorporated herein by reference. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Previously filed with the Securities and Exchange Commission as an exhibit to the Company’s Form 10-KSB for the fiscal year ended March 31, 2008 and incorporated herein by reference. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Previously filed with Securities and Exchange Commission as an exhibit to the Company’s Form 10-Q for the quarter ended September 30, 2008 and incorporated herein by reference. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Filed herewith |
|------|----------------|

----