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

                                    FORM 10-Q

|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
      EXCHANGE ACT OF 1934
           For the quarterly period ended: JUNE 30, 2007

|_|   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF
      1934

           For the transition period from ______________ to ____________________

                        Commission File Number: 001-11497

                                 AUTOINFO, INC.
             (Exact name of Registrant as specified in its charter)

           DELAWARE                                  13-2867481
(State or other jurisdiction of          (I.R.S. Employer Identification number)
incorporation or organization)

               6413 Congress Ave., Suite 260, Boca Raton, FL 33487
                     (Address of principal executive office)

                                 (561) 988-9456
              (Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                 YES |X| NO |_|

Indicate by check mark whether the Registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the Exchange  Act.  (Check
one):

Large accelerated filer |_|  Accelerated filer |_|   Non-accelerated filer |X|

Indicate by check mark whether the  Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

                                 YES |_| NO |X|

Number of shares  outstanding of the  Registrant's  common stock as of August 8,
2007: 33,001,000 shares of common stock.

<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                                      INDEX

Part I.  Financial Information:

Item 1.    Consolidated Financial Statements:                              Page

           Balance Sheets
              June 30, 2007 (unaudited) and December 31, 2006 (audited)....   3

           Statements of Income (unaudited)
              Three and six months ended June 30, 2007 and 2006............   4

           Statements of Cash Flows  (unaudited)
              Six months ended June 30, 2007 and 2006......................   5

           Notes to Unaudited Consolidated Financial Statements............   6

Item 2.    Management's Discussion and Analysis of Financial
              Condition and Results of Operations..........................  10

Item 3.    Quantitative and Qualitative Disclosures About Market Risk......  15

Item 4.    Controls and Procedures.........................................  15

Part II. Other Information

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.....  16

Item 6.    Exhibits........................................................  16

Signatures ................................................................  17


                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION

                        AUTOINFO, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                               June 30,       December 31,
                                                                 2007             2006
                                                             -------------    -------------
                                                               Unaudited         Audited
<S>                                                          <C>              <C>
ASSETS

Current assets:
   Cash and cash equivalents                                 $      63,000    $     146,000
   Accounts receivable, net of allowance for doubtful
       accounts of $301,000 and $249,000 as of June
       30, 2007 and December 31, 2006, respectively             18,873,000       16,967,000
   Deferred income taxes (Note 2)                                1,445,000        1,445,000
   Other current assets                                            642,000          363,000
                                                             -------------    -------------

        Total current assets                                    21,023,000       18,921,000

Fixed assets, net of accumulated depreciation                      437,000          324,000

Deferred income taxes (Note 2)                                   2,061,000        2,502,000

Advances and other assets                                        2,656,000        2,075,000
                                                             -------------    -------------

                                                             $  26,177,000    $  23,822,000
                                                             =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
   Loan payable                                              $   3,363,000    $   3,451,000
   Accounts payable and accrued liabilities                      9,713,000        8,375,000
                                                             -------------    -------------
        Total current liabilities                               13,076,000       11,826,000
                                                             -------------    -------------

Stockholders' Equity
   Preferred stock - authorized 10,000,000 shares
       $.001 par value; issued and outstanding - 0 shares
       as of June 30, 2007 and December 31, 2006                        --               --
   Common stock - authorized 100,000,000 shares
       $.001 par value; issued and outstanding -
       33,001,000 shares as of June 30, 2007 and
       32,102,000 shares as of December 31, 2006                    33,000           32,000
   Additional paid-in capital                                   19,815,000       19,420,000
   Deficit                                                      (6,747,000)      (7,456,000)
                                                             -------------    -------------
        Total stockholders' equity                              13,101,000       11,996,000
                                                             -------------    -------------

                                                             $  26,177,000    $  23,822,000
                                                             =============    =============
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                       3
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                Six Months Ended              Three Months Ended
                                                     June 30,                      June 30,
                                            --------------------------    --------------------------
                                                2007           2006           2007           2006
                                            -----------   ------------    -----------   ------------
<S>                                         <C>           <C>             <C>           <C>
Gross revenues                              $48,278,000   $ 38,954,000    $26,224,000   $ 20,858,000
Cost of transportation                       38,277,000     30,507,000     21,078,000     16,399,000
                                            -----------   ------------    -----------   ------------

Net revenues                                 10,001,000      8,447,000      5,146,000      4,459,000
                                            -----------   ------------    -----------   ------------

Commissions                                   6,385,000      5,207,000      3,260,000      2,729,000
Operating expenses                            2,290,000      1,799,000      1,175,000        911,000
                                            -----------   ------------    -----------   ------------
                                              8,675,000      7,006,000      4,435,000      3,640,000
                                            -----------   ------------    -----------   ------------

Income from operations                        1,326,000      1,441,000        711,000        819,000
Interest expense                                101,000         24,000         55,000         18,000
                                            -----------   ------------    -----------   ------------

Income before income taxes                    1,225,000      1,417,000        656,000        801,000
Income taxes (benefit) (Note 2)                 516,000       (782,000)       273,000       (243,000)
                                            -----------   ------------    -----------   ------------

Net income                                  $   709,000   $  2,199,000    $   383,000   $  1,044,000
                                            ===========   ============    ===========   ============

Net income per share:
     Basic                                  $       .02   $        .07    $       .01   $        .03
     Diluted                                $       .02   $        .06    $       .01   $        .03

Weighted average number of common shares:
     Basic                                   32,539,000     31,786,000     32,813,000     31,821,000
     Diluted                                 36,240,000     35,448,000     36,112,000     36,390,000
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                       4
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          Six Months Ended
                                                               June 30,
                                                         2007          2006
                                                      -----------   -----------
Cash flows from operating activities:
Net income                                            $   709,000   $ 2,199,000
Adjustments to reconcile net income to net cash
   used in operating activities:
     Change in allowance for doubtful accounts             52,000        84,000
     Depreciation and amortization                         57,000        50,000
     Stock-based compensation expense                     147,000        60,000
     Deferred income taxes (benefit)                      441,000      (863,000)
Changes in assets and liabilities:
     Accounts receivable                               (1,959,000)   (1,528,000)
     Other current assets                                (279,000)     (159,000)
     Advances and other assets                           (581,000)     (281,000)
     Accounts payable and accrued liabilities           1,338,000       286,000
                                                      -----------   -----------

Net cash used in operating activities                     (75,000)     (152,000)
                                                      -----------   -----------

Cash flows from investing activities:
     Capital expenditures                                (170,000)      (37,000)
                                                      -----------   -----------
Net cash used in investing activities                    (170,000)      (37,000)
                                                      -----------   -----------

Cash flows from  financing activities:
    Exercise of stock options                             250,000        33,000
    Decrease in loan payable, net                         (88,000)     (118,000)
                                                      -----------   -----------
Net cash provided by (used in) financing activities       162,000       (85,000)
                                                      -----------   -----------

Net change in cash and cash equivalents                   (83,000)     (274,000)
Cash and cash equivalents, beginning of period            146,000       419,000
                                                      -----------   -----------

Cash and cash equivalents, end of period              $    63,000   $   145,000
                                                      ===========   ===========

  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                       5
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                           Forward Looking Statements

Certain   statements   made  in  this   Quarterly   Report   on  Form  10-Q  are
"forward-looking statements regarding the plans and objectives of management for
future   operations.   Such   statements   involve  known  and  unknown   risks,
uncertainties  and other factors that may cause our actual results,  performance
or  achievements  of the  Company  to be  materially  different  from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking  statements.  The forward-looking statements included herein are
based on current expectations that involve numerous risks and uncertainties. Our
plans and objectives are based, in part, on assumptions involving judgments with
respect  to,  among  other  things,  future  economic,  competitive  and  market
conditions  and  future  business  decisions,  all of  which  are  difficult  or
impossible  to predict  accurately  and many of which are  beyond  our  control.
Although  we  believe  that  our  assumptions   underlying  the  forward-looking
statements are reasonable,  any of the assumptions  could prove  inaccurate and,
therefore,  there  can  be no  assurance  that  the  forward-looking  statements
included in this report will prove to be accurate.  In light of the  significant
uncertainties  inherent  in  the  forward-looking   statements  included  herein
particularly  in view of the current state of our  operations,  the inclusion of
such information should not be regarded as a statement by us or any other person
that our objectives and plans will be achieved.  Factors that could cause actual
results to differ materially from those expressed or implied by  forward-looking
statements  include,  but are not  limited  to, the  factors set forth under the
headings  "Business,"  and "Risk  Factors" in our Annual Report on Form 10-K for
the year ended December 31, 2006 as filed with the United States  Securities and
Exchange Commission ("SEC").

Note 1. - Business and Summary of Significant Accounting Policies

Business

      AutoInfo,  Inc  (the  "Company"),  through  its  wholly-owned  subsidiary,
Sunteck  Transport Co., Inc.  ("Sunteck "), is a non-asset based  transportation
services  company.  As a non-asset  based  provider of  brokerage  and  contract
carrier transportation  services, the Company does not own any equipment and its
services are provided through its strategic  alliances with less than truckload,
truckload,  air, rail, ocean common carriers and independent  owner-operators to
service customers' needs. The Company's  brokerage and contract carrier services
are provided through a network of independent sales agents throughout the United
States and Canada.  During its most recently  completed fiscal year, the Company
generated  revenue,  net revenue and net income of approximately  $84.1 million,
$17.7 million and $3.6 million, respectively.

Summary of Significant Accounting Policies

Basis of Presentation

      The  financial  statements  of the Company  have been  prepared  using the
accrual basis of accounting under accounting  principles  generally  accepted in
the United States of America ("GAAP").

      The  consolidated  financial  statements,  which are unaudited,  have been
prepared  pursuant  to the rules and  regulations  of the SEC.  In  management's
opinion, these financial statements include all adjustments  (consisting only of
normal recurring  adjustments)  necessary for a fair presentation of the results
of operations for the interim periods  presented.  The results of operations for
the  three  and six  months  ended  June 30,  2007 and 2006 are not  necessarily
indicative of results to be expected for the entire year.  Pursuant to SEC rules
and regulations,  certain information and footnote disclosures normally included
in financial statements prepared in accordance with GAAP have been omitted


                                       6
<PAGE>

from these statements.  The consolidated  financial statements and notes thereto
should be read in conjunction  with the financial  statements and notes included
in the  Company's  Annual  Report on Form 10-K for the year ended  December  31,
2006.

Principles of Consolidation

      The consolidated financial statements include the accounts of the Company,
its  wholly-owned  subsidiary  Sunteck and its wholly-owned  subsidiary  Sunteck
Transport Carriers, Inc.. All significant intercompany balances and transactions
have been eliminated in consolidation.

Revenue Recognition

      As a third party  transportation  logistics provider,  the Company acts as
the  shippers'  agent and arranges  for a carrier to handle the  freight.  Gross
revenues  consist of the total dollar  value of services  purchased by shippers.
Revenue is  recognized  upon  delivery  of  freight,  at which time the  related
transportation cost, including commission, is also recognized. At that time, the
Company's  obligations are completed and collection of receivables is reasonably
assured.

      Emerging  Issues  Task Force No.  99-19,  "Reporting  Revenues  Gross as a
Principal  Versus  Net as an  Agent"  (EITF  99-19),  establishes  criteria  for
recognizing revenues on a gross or net basis. The Company is the primary obligor
in its transactions,  has all credit risk, maintains  substantially all risk and
rewards,  has discretion in selecting the supplier,  and has latitude in pricing
decisions.  Accordingly,  the  Company  records  all  transactions  at the gross
amount, consistent with the provisions of EITF 99-19.

Provision For Doubtful Accounts

      The Company  continuously  monitors the  creditworthiness of its customers
and has  established an allowance for amounts that may become  uncollectible  in
the future based on current economic trends, its historical payment and bad debt
write-off experience and any specific customer related collection issues.

Cash and cash equivalents

      Cash and cash equivalents consist of cash in banks. From time to time, the
Company has on deposit at  financial  institutions  cash  balances  which exceed
federal  deposit  insurance  limitations.  The Company has not  experienced  any
losses in such accounts and believes it is not exposed to any significant credit
risk on cash.

Fixed Assets

      Fixed  assets  as of June  30,  2007 and  December  31,  2006,  consisting
predominantly   of  furniture,   fixtures  and  equipment  and  computer  system
development  costs,  were  carried  at  cost  net of  accumulated  depreciation.
Depreciation of fixed assets was provided on the  straight-line  method over the
estimated  useful  lives of the  related  assets  which range from three to five
years.

Income Per Share

      Basic  income  per share is based on net income  divided  by the  weighted
average  number  of  common  shares   outstanding.   Common  stock   equivalents
outstanding   were  3,299,000  and  4,569,000,   and  3,701,000  and  3,662,000,
respectively,  for the three and six month periods ended June 30, 2007 and 2006,
respectively.


                                       7
<PAGE>

Use of Estimates

      The  preparation  of these  financial  statements in conformity  with GAAP
requires  management to make certain estimates and assumptions.  These estimates
and  assumptions  affect  the  reported  amounts  of  assets,   liabilities  and
contingent  liabilities at the date of the financial statements and the reported
amounts of revenue  and  expenses  during the  periods  presented.  The  Company
believes that all such  assumptions  are  reasonable  and that all estimates are
adequate, however, actual results could differ from those estimates.

Income Taxes

      The Company  utilizes the asset and liability  method for  accounting  for
income  taxes.  Under the asset and  liability  method,  deferred tax assets and
liabilities  are  recognized  for the future tax  consequences  attributable  to
differences  between the financial statement carrying amounts of existing assets
and  liabilities  and  their  respective  tax bases and  future  benefits  to be
recognized  upon  the  utilization  of  certain  operating  loss  carryforwards.
Deferred  tax  assets and  liabilities  are  measured  using  enacted  tax rates
expected  to apply to  taxable  income  in the  years in which  those  temporary
differences are expected to be recovered or settled.  The effect on deferred tax
assets and  liabilities  of a change in tax rates is recognized in income in the
period that includes the enactment date.

Stock-Based Compensation

      On January 1, 2006, the Company adopted Statement of Financial  Accounting
Standards No. 123R,  "Share-Based  Payment"  (SFAS 123R)  utilizing the modified
prospective  transition method.  SFAS 123R requires employee stock options to be
valued  at fair  value on the date of grant  and  charged  to  expense  over the
applicable vesting period. Under the modified  prospective method,  compensation
expense is recognized for all share based payments issued on or after January 1,
2006 and for all share  payments  issued to  employees  prior to January 1, 2006
that  remain  unvested.  Adoption  of SFAS  123R did not  change  the  Company's
accounting for share based payments issued to non-employees.

Note 2- Income Taxes

      For the  three  and six  month  periods  ended  June 30,  2007  and  2006,
respectively, the provision for income taxes consisted of the following:

<TABLE>
<CAPTION>
                                               Three Months Ended June 30,
                                             2007                      2006
                                     ------------------------------------------------
                                      Current     Deferred      Current     Deferred
                                     ------------------------------------------------
<S>                                  <C>          <C>          <C>          <C>
Tax expense before application of
     operating loss carryforwards    $ 273,000    $      --    $ 312,000    $      --
Tax expense (benefit) of operating
     loss carryforwards               (233,000)     233,000     (266,000)     266,000
Change in valuation allowance                                         --     (555,000)
                                     ------------------------------------------------

Income tax expense (benefit)         $  40,000    $ 233,000    $  46,000    $(289,000)
                                     ------------------------------------------------
</TABLE>


                                       8
<PAGE>

<TABLE>
<CAPTION>
                                                Six Months Ended June 30,
                                             2007                      2006
                                     ------------------------------------------------
                                      Current     Deferred      Current     Deferred
                                     ------------------------------------------------
<S>                                  <C>          <C>          <C>          <C>
Tax expense before application of
     operating loss carryforwards    $ 516,000    $      --    $ 556,000  $        --
Tax expense (benefit) of operating
     loss carryforwards               (441,000)     441,000     (475,000)     475,000
Change in valuation allowance                                         --   (1,338,000)
                                     ------------------------------------------------

Income tax expense (benefit)         $  75,000    $ 441,000    $  81,000  $  (863,000)
                                     ------------------------------------------------
</TABLE>

      The deferred tax asset,  $3,506,000  and  $3,947,000  at June 30, 2007 and
December  31,  2006,  respectively,   represents  expected  future  tax  savings
resulting   from  the  Company's   utilization   of  its  net   operating   loss
carryforwards.  As of December  31,  2006,  the Company has net  operating  loss
carryforwards  of  approximately  $11.6 million for federal  income tax purposes
which expire through 2014.  Utilization of this benefit is primarily  subject to
the extent of future earning of the Company,  and may be limited by, among other
things,  shareholder changes,  including the possible issuance by the Company of
additional  shares in one or more financing or acquisition  transactions.  Based
upon available objective evidence,  including the Company's  post-merger history
of profitability, management believes it is more likely than not that forecasted
taxable  income  will be  sufficient  to utilize all of the net  operating  loss
carryforwards before its expiration in 2014.


                                       9
<PAGE>

   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                                   OPERATIONS

Cautionary statement  identifying  important factors that could cause our actual
results to differ from those projected in forward looking statements.

      Readers of this  report  are  advised  that this  document  contains  both
statements of historical facts and forward looking  statements.  Forward looking
statements  are subject to certain  risks and  uncertainties,  which could cause
actual results to differ  materially from those indicated by the forward looking
statements.  We undertake no obligation to revise or update publicly any forward
looking  statements  for any  reason.  Examples  of forward  looking  statements
include,  but are not limited to (i)  projections  of revenues,  income or loss,
earnings per share, capital expenditures, dividends, capital structure and other
financial  items,  (ii)  statements of our plans and objectives  with respect to
business  transactions and enhancement of shareholder value, (iii) statements of
future economic performance, and (iv) statements of assumptions underlying other
statements and statements about our business prospects.

      The following Management's  Discussion and Analysis of Financial Condition
and  Results of  Operations  should be read in  conjunction  with our  financial
statements and the notes thereto appearing elsewhere in this report.

Overview

      Through  our  wholly-owned   subsidiary,   Sunteck   Transport  Co.,  Inc.
("Sunteck"), we are a non-asset based transportation services company, providing
transportation   capacity  and  related  transportation   services  to  shippers
throughout the United States,  and to a lesser  extent,  Canada.  As a non-asset
based provider of brokerage and contract carrier transportation  services, we do
not own any  equipment  and our  services  are  provided  through our  strategic
alliances with less than truckload,  truckload, air, rail, ocean common carriers
and independent  owner-operators  to service our customers'  needs. Our services
include ground  transportation  coast to coast, local pick up and delivery,  air
freight and ocean freight. We have strategic alliances with less than truckload,
truckload,  air, rail and ocean common carriers to service our customers' needs.
Our business services  emphasize safety,  information  coordination and customer
service and are delivered  through a network of independent  commissioned  sales
agents and third party capacity  providers  coordinated  by us. The  independent
commissioned   sales  agents   typically   enter  into   exclusive   contractual
arrangements   with  Sunteck  and  are  responsible  for  locating  freight  and
coordinating  the  transportation  of the freight  with  customers  and capacity
providers. The third party capacity providers consist of independent contractors
who provide truck capacity to us,  including  owner-operators  who operate under
our contract  carrier  license,  air cargo carriers and railroads.  Through this
network of agents and capacity  providers,  Sunteck  operates a non-asset  based
transportation  services  business with  revenue,  net revenue and net income of
approximately  $84.1  million,  $17.7  million and $3.6  million,  respectively,
during our most recently completed fiscal year and approximately  $48.3 million,
$10.0 million and $709,000,  respectively,  during the six months ended June 30,
2007.

      During the next twelve months,  we plan to continue to offer our brokerage
and contract carrier  transportation  services and expand our agent network.  We
are presently  profitable and have adequate available lines of credit to satisfy
our working capital requirements during the next twelve months.

Results of operations

      During the three month period  ended June 30, 2007,  the increase in gross
revenue and net revenue is mainly  attributable to the increase in the number of
transactions we have processed.  The number of transactions  processed increased
to 19,500  during the three  months  ended June 30, 2007 from 14,850  during the
same period in the prior year,  an increase of 31%. This is the direct result of
the  expansion of our agent  network.  Gross  revenue  increased by 26% over the
prior  year  period  as  compared  to an  increase  of  31%  in  the  number  of
transactions processed. The decrease in revenue


                                       10
<PAGE>

dollars  per  load  (4%) is the  result  of  revenue  mix  and  the  competitive
environment  during the period. Net revenue increased by 15% over the prior year
period as compared to a 26%  increase  in gross  revenue.  This is the result of
revenue mix and increased  direct freight costs relating to competition  and the
availability of equipment.

      During the six month  period  ended June 30,  2007,  the increase in gross
revenue and net revenue is readily  measured  by the number of  transactions  we
have processed.  The number of transactions processed increased to 37,000 during
the six months  ended June 30,  2007 from  28,600  during the same period in the
prior year,  an increase of 29%.  This is the direct  result of the expansion of
our agent network.  Gross revenue increased by 24% over the prior year period as
compared  to an  increase of 29% in the number of  transactions  processed.  The
decrease  in revenue  dollars per load (4%) is the result of revenue mix and the
competitive environment during the period. Net revenue increased by 18% over the
prior year period as compared to a 24%  increase in gross  revenue.  This is the
result of revenue mix and increased direct freight costs relating to competition
and the  availability  of  equipment.  This  trend is  subject  to many  factors
including seasonal trends, market conditions,  competition and agent mix and is,
therefore, not necessarily indicative of future results.

For the Three and Six Month Periods Ended June 30, 2007 and 2006

      During the three and six month  periods  ended June 30, 2007, we continued
to implement our strategic  growth  business  plan  consisting  primarily of the
expansion of client services,  the opening of regional operations centers in key
geographical  markets,  and the addition of independent  sales agents  providing
brokerage and contract carrier  services.  Our net revenues (gross revenues less
cost of transportation)  are the primary indicator of our ability to source, add
value and resell  service that are provided by third parties and are  considered
to be the  primary  measurement  of growth.  Therefore,  the  discussion  of the
results of  operations  below  focuses on the changes in our net  revenues.  The
increases in net revenues  and all related cost and expense  categories  are the
direct result of our business expansion.

      The following table  represents  certain  statement of operation data as a
percentage of net revenues:

                                Three Months Ended         Six Months Ended
                                     June 30,                   June 30,
                                 2007         2006         2007         2006
                              ---------    ---------    ---------    ---------

Net revenues                      100.0%       100.0%       100.0%       100.0%
                              ---------    ---------    ---------    ---------

   Commissions                     63.4%        61.2%        63.8%        61.6%
   Operating expenses              22.8%        20.4%        22.9%        21.3%
   Interest expense                 1.1%          .4%         1.0%          .3%
   Income taxes (benefit)           5.3%        (5.4%)        5.2%        (9.2%)
                              ---------    ---------    ---------    ---------

Net income                          7.4%        23.4%         7.1%        26.0%
                              ---------    ---------    ---------    ---------

Revenues

      Gross  revenues,  consisting  of freight fees and other  related  services
revenue,  totaled  $26,224,000  for the three  months  ended June 30,  2007,  as
compared with  $20,858,000  in the same period of the prior year, an increase of
26%. Net revenues were  $5,146,000  for the three months ended June 30, 2007, as
compared  with  $4,459,000  in the same period of the prior year, an increase of
15%. This increase is the direct result of the continued  expansion of our agent
network and  customer  base which  resulted  in a 29%  increase in the number of
transactions processed. The increase in net revenue of


                                       11
<PAGE>

15% as compared to the increase in gross revenue of 26% is the result of revenue
mix  and  increased  direct  freight  costs  relating  to  competition  and  the
availability of equipment.

      Gross  revenues,  consisting  of freight fees and other  related  services
revenue, totaled $48,278,000 for the six months ended June 30, 2007, as compared
with  $38,954,000  in the same period of the prior year, an increase of 24%. Net
revenues  were  $10,001,000  for the six months ended June 30, 2007, as compared
with  $8,447,000  in the same period of the prior year, an increase of 18%. This
increase is the direct  result of the  continued  expansion of our agent network
and customer base which resulted in a 31% increase in the number of transactions
processed.  The  increase in net  revenue of 18% as compared to the  increase in
gross revenue of 24% is the result of revenue mix and increased  direct  freight
costs relating to competition and the availability of equipment.

Costs and expenses

Commissions

      For the three months ended June 30, 2007,  commissions  totaled $3,260,000
as  compared  with  $2,729,000  in the  same  period  of the  prior  year.  As a
percentage  of net  revenues,  commissions  were 63% as compared with 61% in the
same period of the prior year.

      For the six months ended June 30, 2007,  commissions totaled $6,385,000 as
compared  with  $5,207,000 in the same period of the prior year. As a percentage
of net revenues, commissions were 64% as compared with 62% in the same period of
the prior year.

      These  increases  are the result of agent and revenue mix as well as agent
rate increases based upon achieving revenue and profitability benchmarks.

Operating expenses

      For the three  months  ended June 30,  2007,  operating  expenses  totaled
$1,175,000  as compared with $911,000 in the same period of the prior year. As a
percentage of net revenues,  operating expenses were 23% as compared with 20% in
the prior year period.

      For the six  months  ended  June  30,  2007,  operating  expenses  totaled
$2,290,000 as compared with  $1,799,000 in the same period of the prior year. As
a percentage of net revenues,  operating  expenses were 23% as compared with 21%
in the same period of the prior year.

      These increases are the direct result of the increase in selling,  general
and  administrative  expenses in  connection  with our  business  expansion.  We
presently  have  adequate  facilities  and  management to handle the present and
anticipated  transaction  volume  in 2007  without  a  significant  increase  in
overhead.

Interest Expense

      For the three months ended June 30, 2007, interest expense totaled $55,000
as compared with $18,000 in the same period of the prior year.

      For the six months ended June 30, 2007,  interest expense totaled $101,000
as compared with $24,000 in the same period of the prior year.

      These increases are primarily the result of increased  borrowings pursuant
to our $4.0 million line of credit.


                                       12
<PAGE>

Income tax

      Income tax  expense for the three  months  ended June 30, 2007 of $273,000
consisted of the  utilization  of the deferred tax benefit of $233,000 and state
income  taxes of $40,000  compared to an income tax benefit of $243,000  for the
quarter ended June 30, 2006 which  consisted of a benefit of $555,000  resulting
from  the  anticipated   future   utilization  of  available  federal  tax  loss
carryforwards,  net of the  utilization  of the deferred tax benefit of $266,000
and state income taxes of $46,000.

      Income tax  expense  for the six months  ended June 30,  2007 of  $516,000
consisted of the  utilization  of the deferred tax benefit of $441,000 and state
income  taxes of $75,000  compared to an income tax benefit of $782,000  for the
quarter ended June 30, 2006 which consisted of a benefit of $1,338,000 resulting
from  the  anticipated   future   utilization  of  available  federal  tax  loss
carryforwards,  net of the  utilization  of the deferred tax benefit of $475,000
and state income taxes of $81,000.

      The  increase  in income  taxes is  because  we had fully  recognized  the
anticipated future utilization of available federal tax loss carryforwards as of
December 31, 2006, as management  believed it was more likely than not that they
will be realized by the end of the carryforward periods.

Trends and uncertainties

      The  transportation  industry is highly competitive and highly fragmented.
Our primary  competitors  are other non-asset based as well as asset based third
party logistics companies, freight brokers, carriers offering logistics services
and freight  forwarders.  We also compete with customers' and shippers' internal
traffic and  transportation  departments as well as carriers  internal sales and
marketing  departments  directly seeking shippers'  freight.  We anticipate that
competition for our services will continue to increase.  Many of our competitors
have substantially greater capital resources,  sales and marketing resources and
experience.  We cannot  assure you that we will be able to  effectively  compete
with our  competitors  in  effecting  our  business  expansion  plans.  The most
significant trend contributing to our growth during the past four years has been
the  expansion of our  brokerage  services  agent  network and  expansion of our
contract carrier agent and owner operator network.  Sales agents are independent
contractors  and, as such,  there are no assurances  that we can either maintain
our existing agent network or continue to expand this network.

      For the six months ended June 30, 2007,  our gross  revenues  increased to
$48.3  million  from $39.0  million in the same period of the prior year.  As of
June 30, 2007, we had an accumulated deficit of $6.7 million. Factors that could
adversely affect our operating results include:

            o     the success of Sunteck in expanding  its business  operations;
                  and

            o     changes in general economic conditions.

      Depending on our ability to generate  revenues,  we may require additional
funds to expand  Sunteck's  business  operations  and for  working  capital  and
general corporate  purposes.  Any additional equity financing may be dilutive to
stockholders, and debt financings may involve restrictive covenants that further
limit  our  ability  to make  decisions  that  we  believe  will be in our  best
interests.  In  the  event  we  cannot  obtain  additional  financing  on  terms
acceptable to us when required,  our ability to expand Sunteck's  operations may
be materially adversely affected.

Liquidity and capital resources

      During the past two years,  our  sources  for cash have been the cash flow
generated from operations and available borrowings under our line of credit.


                                       13
<PAGE>

      At June 30, 2007, we had outstanding  $3,363,000 under our $4,000,000 line
of credit. The line of credit facility,  obtained from a bank in May 2003, is at
an interest rate of LIBOR plus 2% and is subject to the  maintenance  of certain
financial  covenants,  is secured by  accounts  receivable  and other  operating
assets, and matures in June 2008. On August 3, 2007, this facility was increased
to $9,000,000  at an interest rate of LIBOR plus 1.25%.  We believe that we have
sufficient  working  capital to meet our short-term  operating needs and that we
will be able to  increase,  extend  or  replace  the  line of  credit  on  terms
acceptable to us.

      At June 30, 2007, we had liquid assets of approximately $63,000. Available
cash is used to reduce borrowings on our line of credit.

      The  following  table  presents our debt  instruments  and their  weighted
average interest rates as of June 30, 2007 and 2006, respectively:

                                        Weighted                     Weighted
                            Balance   Average Rate   Balance      Average Rate
                         ------------------------------------------------------
                                     2007                      2006
                         ------------------------------------------------------
        Line of Credit     $3,363,000     7.32%     $1,162,000       8.78%

      Inflation  and changing  prices had no material  impact on our revenues or
the results of operations for the period ended June 30, 2007. Higher fuel prices
have had no material impact on our revenues or the results of operations for the
period ended June 30, 2007 because,  as a broker, we are able to pass through to
our  customers  any  increased  costs  incurred.  The higher cost of fuel passed
through as a fuel  surcharge  has become an industry  standard and an acceptable
business practice.

Critical accounting policies

      Preparation  of our  financial  statements  requires  management  to  make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting  period.  Note 1 to the notes to the  financial  statements
included  elsewhere  in  this  report  includes  a  summary  of the  significant
accounting  policies  and  methods  used  in the  preparation  of our  financial
statements.  The most  significant  areas  involving  management  estimates  and
assumptions  are described  below.  Actual results could differ  materially from
management's estimates under different assumptions or conditions.

Revenue Recognition

      As a  third  party  transportation  logistics  provider,  we  act  as  the
shippers' agent and arrange for a carrier to handle the freight.  Gross revenues
consist of the total dollar value of services purchased by shippers.  Revenue is
recognized   upon  the   delivery  of   freight,   at  which  time  the  related
transportation cost, including commission, is also recognized. At that time, our
obligations are completed and collection of receivables is reasonably assured.

      Emerging  Issues  Task Force No.  99-19,  "Reporting  Revenues  Gross as a
Principal  Versus  Net as an  Agent"  (EITF  99-19),  establishes  criteria  for
recognizing  revenues on a gross or net basis. We are the primary obligor in our
transactions, have all credit risk, maintain substantially all risk and rewards,
have  discretion  in  selecting  the  supplier,  and have  latitude  in  pricing
decisions.  Accordingly,  we  record  all  transactions  at  the  gross  amount,
consistent with the provisions of EITF 99-19.


                                       14
<PAGE>

Income Taxes

      The deferred tax asset  represents  expected future tax savings  resulting
from our net operating loss  carryforwards.  As of December 31, 2006, we had net
operating loss  carryforwards of approximately  $11.6 million for federal income
tax purposes which expire through 2014. Utilization of this benefit is primarily
subject to the extent of our future earnings, and may be limited by, among other
things,  stockholder  changes,  including  the possible  issuance of  additional
shares in one or more  financing  or  acquisition  transactions.  As of December
2006, we had fully  recognized the anticipated  future  utilization of available
federal tax loss carryforwards as management believes it is more likely than not
that they will be realized by the end of the carryforward periods.

Provision For Doubtful Accounts

      We  continuously  monitor the  creditworthiness  of our customers and have
established an allowance for amounts that may become uncollectible in the future
based on current economic trends,  our historical payment and bad debt write-off
experience, and any specific customer related collection issues.

Off-balance sheet arrangements

      We do not have any off-balance sheet arrangements.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      None.

                             CONTROLS AND PROCEDURES

      Our management,  with the participation of our chief executive officer and
our chief financial  officer,  has evaluated the effectiveness of our disclosure
controls  and  procedures  (as  such  term is  defined  in Rules  13a-15(e)  and
15d-15(e)  under the Securities  Exchange Act of 1934, as amended (the "Exchange
Act"))  as of the end of the  period  covered  by  this  report.  Based  on that
evaluation,  our chief executive  officer and our chief  financial  officer have
concluded  that,  as of the end of such  period,  our  disclosure  controls  and
procedures are effective to ensure that information  required to be disclosed by
us in the  reports  that  we file or  submit  under  the  Exchange  Act is:  (i)
recorded, processed,  summarized and reported, within the time periods specified
in the United States Securities and Exchange  Commission's  rules and forms; and
(ii) accumulated and  communicated to management,  including our chief executive
and chief financial officers, as appropriate to allow timely decisions regarding
required disclosure.

      There have not been any changes in our  internal  control  over  financial
reporting (as such term is defined in Rules  13a-15(f)  and 15d-15(f)  under the
Exchange Act) that occurred  during the period  covered by this report that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.


                                       15
<PAGE>

                           Part II - OTHER INFORMATION

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

During the quarter ended June 30, 2007, we issued 534,747 shares of Common Stock
upon the exercise of options by certain of our  employees and  consultants.  The
issuance of these shares was pursuant to an exemption from registration provided
under section 4(2) of the Securities Act of 1933, as amended (the "Act"). All of
the stock  certificates  issued  for the  shares  were  imprinted  with a legend
restricting transfer unless pursuant to an effective  registration  statement or
an available exemption under the Act.

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

31A         Certification of Chief Executive  Officer Pursuant to Section 302 of
            the Sarbanes-Oxley Act of 2002.*

31B         Certification of Chief Financial  Officer Pursuant to Section 302 of
            the Sarbanes-Oxley Act of 2002.*

32A         Certification  of Chief  Executive  Officer  Pursuant  to 18  U.S.C.
            Section   1350,   as  adopted   Pursuant   to  Section  906  of  the
            Sarbanes-Oxley Act of 2002.*

32B         Certification  of Chief  Financial  Officer  Pursuant  to 18  U.S.C.
            Section   1350,   as  adopted   Pursuant   to  Section  906  of  the
            Sarbanes-Oxley Act of 2002.*

_______________________
*Filed as an exhibit hereto.


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<PAGE>

                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                 AUTOINFO, INC.

                                       /s/ Harry Wachtel
                                       -----------------------------------------
                                       Harry Wachtel
                                       President and Chief Executive Officer
                                       (Principal Executive Officer)


                                       /s/ William Wunderlich
                                       -----------------------------------------
                                       William Wunderlich
                                       Chief Financial Officer
                                       (Principal Financial Officer)

Date: August 8, 2007


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