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: SEPTEMBER 30, 2006

|_|   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 October 31,
2006: 32,096,000 shares of common stock.

<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                                      INDEX

Part I. Financial Information:

Item 1. Consolidated Financial Statements:                                  Page

        Balance Sheets
          September 30, 2006 (unaudited) and December 31, 2005 (audited) ..   3

        Statements of Income (unaudited)
          Three and nine months ended September 30, 2006 and 2005 .........   4

        Statements of Cash Flows (unaudited)
          Nine months ended September 30, 2006 and 2005 ...................   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 ................................................  15

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


                                       2
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                     September 30,       December 31,
                                                                         2006                2005
                                                                     -------------       ------------
                                                                      Unaudited             Audited
<S>                                                                  <C>                 <C>
ASSETS

Current assets:
   Cash                                                              $  1,050,000        $    419,000
   Accounts receivable, net of allowance for doubtful
       accounts of $323,000 and $201,000 as of
       September 30, 2006 and December 31, 2005,
       respectively                                                    15,480,000          12,735,000
   Deferred income taxes (Note 2)                                         980,000             860,000
   Other current assets                                                   488,000             255,000
                                                                     ------------        ------------

         Total current assets                                          17,998,000          14,269,000

Fixed assets, net of accumulated depreciation                             281,000             292,000
Deferred income taxes (Note 2)                                          3,073,000           2,047,000
Other assets                                                            1,269,000              38,000
                                                                     ------------        ------------

                                                                     $ 22,621,000        $ 16,646,000
                                                                     ============        ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Loan payable                                                    $  2,114,000        $  1,280,000
     Accounts payable and accrued liabilities                           8,994,000           7,235,000
                                                                     ------------        ------------
          Total current liabilities                                    11,108,000           8,515,000
                                                                     ------------        ------------

Stockholders' Equity
    Preferred stock - authorized 10,000,000 shares
       $.001 par value; issued and outstanding - 0 shares
       as of September 30, 2006 and December 31, 2005                          --                  --
  Common stock - authorized 100,000,000 shares
       $.001 par value; issued and outstanding -
       32,052,000 shares as of September 30, 2006 and
       31,624,000 shares as of December 31, 2005                           32,000              32,000
   Other capital                                                        1,219,000             549,000
   Deferred compensation                                                 (982,000)           (413,000)
   Additional paid-in capital                                          19,143,000          19,047,000
   Deficit                                                             (7,899,000)        (11,084,000)
                                                                     ------------        ------------
        Total stockholders' equity                                     11,513,000           8,131,000
                                                                     ------------        ------------

                                                                     $ 22,621,000        $ 16,646,000
                                                                     ============        ============
</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>
                                                                Nine Months Ended                       Three Months Ended
                                                                  September 30,                             September 30,
                                                        ---------------------------------         ---------------------------------
                                                            2006                 2005                 2006                  2005
                                                        ------------         ------------         ------------         ------------
<S>                                                     <C>                  <C>                  <C>                  <C>
Gross revenues                                          $ 61,395,000         $ 47,728,000         $ 22,441,000         $ 17,336,000
Cost of transportation                                    48,384,000           38,350,000           17,877,000           13,940,000
                                                        ------------         ------------         ------------         ------------

Net revenues                                              13,011,000            9,378,000            4,564,000            3,396,000
                                                        ------------         ------------         ------------         ------------

Commissions                                                8,025,000            5,720,000            2,818,000            2,081,000
Operating expenses                                         2,759,000            2,286,000              960,000              749,000
                                                        ------------         ------------         ------------         ------------
                                                          10,784,000            8,006,000            3,778,000            2,830,000
                                                        ------------         ------------         ------------         ------------

Income from operations                                     2,227,000            1,372,000              786,000              566,000
Interest expense                                              63,000               42,000               39,000                3,000
                                                        ------------         ------------         ------------         ------------

Income before income taxes                                 2,164,000            1,330,000              747,000              563,000
Income taxes (benefit) (Note 2)                           (1,021,000)             (84,000)            (239,000)             (17,000)
                                                        ------------         ------------         ------------         ------------

Net  income                                             $  3,185,000         $  1,414,000         $    986,000         $    580,000
                                                        ============         ============         ============         ============

Net income per share:
     Basic                                              $        .10         $        .04         $        .03         $        .02
     Diluted                                            $        .09         $        .04         $        .03         $        .02

Weighted average number of common shares:
     Basic                                                31,856,000           31,475,000           31,997,000           31,609,000
     Diluted                                              35,876,000           33,924,000           36,732,000           33,722,000
</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)

<TABLE>
<CAPTION>
                                                                Nine Months Ended
                                                                  September 30,
                                                             2006                 2005
                                                         -----------          -----------
<S>                                                      <C>                  <C>
Cash flows from operating activities:
Net income                                               $ 3,185,000          $ 1,414,000
Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
     Change in allowance for doubtful accounts               122,000               75,000
     Depreciation and amortization                            75,000               40,000
     Deferred compensation expense                           102,000               77,000
     Deferred income taxes                                (1,146,000)            (161,000)
Changes in assets and liabilities:
     Accounts receivable                                  (2,867,000)          (2,017,000)
     Other current assets                                   (233,000)             389,000
     Other assets                                         (1,231,000)              30,000
     Accounts payable and accrued liabilities              1,759,000            2,050,000
                                                         -----------          -----------

Net cash provided by (used in) operating activities         (234,000)           1,897,000
                                                         -----------          -----------

Cash flows from investing activities:
     Capital expenditures                                    (66,000)            (286,000)
                                                         -----------          -----------
Net cash used in investing activities                        (66,000)            (286,000)
                                                         -----------          -----------

Cash flows from financing activities:
    Exercise of stock options                                 97,000               21,000
    Increase (decrease) in  loan payable, net                834,000           (1,251,000)
                                                         -----------          -----------
Net cash used in financing activities                        931,000           (1,230,000)
                                                         -----------          -----------

Net change in cash                                           631,000              381,000
Cash at beginning of period                                  419,000               38,000
                                                         -----------          -----------

Cash at end of period                                    $ 1,050,000          $   419,000
                                                         ===========          ===========
</TABLE>

              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,  2005 as filed with the  Securities  and  Exchange
Commission.  We  undertake  no  obligation  to  revise or  update  publicly  any
forward-looking statements for any reason.

Note 1. - Business and Summary of Significant Accounting Policies

Business

      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,  rail,
contract  carriers,  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  $68.0 million,
$13.6 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 Securities and Exchange
Commission ("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 nine  months  ended
September  30,  2006 and 2005 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


                                       6
<PAGE>

with GAAP have been omitted from these  statements.  The consolidated  financial
statements and notes thereto  should be read in  conjunction  with the financial
statements  and notes  included  in our Annual  Report on Form 10-K for the year
ended December 31, 2005.

Principles of Consolidation

      The  consolidated   financial  statements  include  the  accounts  of  the
AutoInfo, Inc. (the Company), its wholly-owned subsidiary Sunteck Transport Co.,
Inc.  and its  wholly-owned  subsidiary  Sunteck  Transport &  Logistics,  Inc.,
collectively (Sunteck).  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 the 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

      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 September  30, 2006 and December 31, 2005,  consisting
predominantly of furniture,  fixtures, 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 4,735,000 and 2,113,000,  and 4,020,000 and 2,449,000,  for the
three and nine month periods ended September 30, 2006 and 2005, 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.

      The Company's  results of operations  for the nine months ended  September
30,  2006  include an  additional  $8,000 in  operating  expense  related to the
adoption of SFAS 123R. In accordance with the modified  prospective  method, the
consolidated  financial  statements  for prior periods have not been restated to
reflect, and do not include, the impact of SFAS 123R.

      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 nine month  periods  ended  September 30, 2006 and 2005,
the provision for income taxes consisted of the following:

<TABLE>
<CAPTION>
                                                            Nine Months Ended September 30,
                                              -----------------------------------------------------------
                                                        2006                              2005
                                              -----------------------------------------------------------
                                               Current         Deferred          Current        Deferred
                                              -----------------------------------------------------------
<S>                                           <C>             <C>               <C>             <C>
      Tax expense before application of
           operating loss carryforwards       $ 855,000       $        --       $ 529,000       $      --
      Tax expense (benefit) of operating
           loss carryforwards                  (730,000)          730,000        (452,000)        452,000
      Change in valuation allowance                  --        (1,876,000)             --        (613,000)
                                              -----------------------------------------------------------

      Income tax expense (benefit)            $ 125,000       $(1,146,000)      $  77,000       $(161,000)
                                              -----------------------------------------------------------
</TABLE>


                                       8
<PAGE>

<TABLE>
<CAPTION>
                                                          Three Months Ended September 30,
                                              ---------------------------------------------------------
                                                        2006                            2005
                                              ---------------------------------------------------------
                                               Current        Deferred         Current        Deferred
                                              ---------------------------------------------------------
<S>                                           <C>             <C>             <C>             <C>
      Tax expense before application of
           operating loss carryforwards       $ 299,000       $      --       $ 222,000       $      --
      Tax expense (benefit) of operating
           loss carryforwards                  (255,000)        255,000        (190,000)        190,000
      Change in valuation allowance                  --        (538,000)             --        (239,000)
                                              ---------------------------------------------------------

      Income tax expense (benefit)            $  44,000       $(283,000)      $  32,000       $ (49,000)
                                              ---------------------------------------------------------
</TABLE>

      Deferred  taxes are  comprised of the  following at September 30, 2006 and
December 31, 2005:

<TABLE>
<CAPTION>
                                                     September 30,      December 31,
                                                         2006               2005
                                                     -------------      ------------
<S>                                                   <C>               <C>
            Deferred tax assets:
                 Net operating loss carryforward      $ 4,142,000       $ 4,872,000
                                                      -----------       -----------

            Gross deferred tax assets                   4,142,000         4,872,000
            Less: valuation allowance                     (89,000)       (1,965,000)
                                                      -----------       -----------

            Deferred tax asset                        $ 4,053,000       $ 2,907,000
                                                      ===========       ===========
</TABLE>

      The deferred tax asset  represents  expected future tax savings  resulting
from the Company's net operating loss carryforward. As of December 31, 2005, the
Company has a net operating loss carryforward of approximately $14.3 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.  The Company has established a valuation allowance
for the portion of the possible tax savings not likely to be realized by the end
of the carryforward period.

      Based  upon  available   objective   evidence,   including  the  Company's
continuing  profitability,  management  believes it is more likely than not that
forecasted  taxable income will be sufficient to utilize the majority of the net
operating loss carryforward before its expiration in 2014. However, there can be
no assurance that the Company will meet its expectations of future income.


                                       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,  rail,  contract carriers common
carriers and independent  owner-operators  to service our customers'  needs. Our
non-asset based services include ground transportation coast to coast, and local
pick up and  delivery.  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 non-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 and
railroads.  Through  this  network of agents  and  capacity  providers,  Sunteck
operates a transportation  services  business with revenue,  net revenue and net
income  of  approximately  $68.0  million,   $13.6  million  and  $3.6  million,
respectively,  during our most recently  completed fiscal year and approximately
$61.4  million,  $13.0 million and $3.2 million,  respectively,  during the nine
months ended September 30, 2006.

      Our brokerage services are provided through a network of independent sales
agents  throughout the United States and Canada.  Our services include arranging
for the  transport  of  customers'  freight  from the  shippers  location to the
designated  destination.  We do not  own  any  trucking  equipment  and  rely on
independent  carriers  for  the  movement  of  customers'  freight.  We  seek to
establish  long-term  relationships  with our customers and provide a variety of
logistics  services and solutions to eliminate  inefficiencies in our customers'
supply chain management.

      Our  contract  carrier  services  are also  provided  through a network of
independent sales agents and independent  owner-operators  throughout the United
States. We do not own any trucking  equipment;  our independent  owner-operators
lease onto our operating authority and transport freight under the Sunteck name.

      During the nine months  ended  September  30, 2006  compared to 2005,  the
growth of our business is readily  measured by (i) the number of transactions we
have  processed,  which  increased  for the  respective  nine month periods from
39,600 in 2005 to 44,350  in 2006,  an  increase  of 12%,  and (ii) the  average
revenue  dollars per load,  which  increased by 15% in 2006 as compared to 2005.
This is the  result of  several  factors  including  an  increase  in  truckload
business


                                       10
<PAGE>

versus less than  truckload at higher per load  revenues,  the addition of sales
agents  hauling  heavy  equipment at higher per load  revenues  and, to a lesser
degree, a general increase in prices. The net revenue percentage increased by 8%
in 2006 as compared to 2005. This is primarily the result of revenue mix and, to
a lesser degree, a general increase in prices.

      During the three months ended  September  30, 2006  compared to 2005,  the
growth of our business is readily  measured by (i) the number of transactions we
have  processed,  which  increased for the  respective  three month periods from
13,300 in 2005 to 15,750  in 2006,  an  increase  of 18%,  and (ii) the  average
revenue  dollars per load,  which  increased  by 9% in 2006 as compared to 2005.
This is the  result of  several  factors  including  an  increase  in  truckload
business versus less than truckload at higher per load revenues, the addition of
sales  agents  hauling  heavy  equipment at higher per load  revenues  and, to a
lesser  degree,  a  general  increase  in  prices.  The net  revenue  percentage
increased  by 4% in 2006 as compared to 2005.  This is  primarily  the result of
revenue mix and, to a lesser degree, a general increase in prices.

      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

For the three and nine months ended September 30, 2006 and 2005

      During the three and nine month  periods  ended  September  30,  2006,  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:

<TABLE>
<CAPTION>
                                    Three Months Ended            Nine Months Ended
                                       September 30,                September 30,
                                   2006           2005           2006           2005
                                 -------        -------        -------        -------
<S>                                <C>            <C>            <C>            <C>
      Net revenues                 100.0%         100.0%         100.0%         100.0%
                                 -------        -------        -------        -------

         Commissions                61.7%          61.3%          61.7%          61.0%
         Operating expenses         21.0%          22.0%          21.2%          24.4%
         Interest expense             .9%            .1%            .5%            .4%
         Income taxes               (5.2%)          (.5%)         (7.9%)          (.9%)
                                 -------        -------        -------        -------

      Net income                    21.6%          17.1%          24.5%          15.1%
                                 =======        =======        =======        =======
</TABLE>


                                       11
<PAGE>

Revenues

Three Months Ended September 30, 2006 Compared to 2005

      For the three months ended September 30, 2006, gross revenues,  consisting
of freight fees and other  related  services  revenue,  totaled  $22,441,000  as
compared  with  $17,336,000  in the prior year  period,  an increase of 29%. Net
revenues were  $4,564,000 as compared with  $3,396,000 in the prior year period,
an increase of 34%.

      Gross  revenues from  brokerage  services  increased to  $19,351,000  from
$14,911,000  and net revenues  increased to  $4,108,000  from  $3,013,000 in the
prior year period. This increase is the direct result of the continued expansion
of our agent network and customer  base which  resulted in a 17% increase in the
number of  transactions  processed and an increase of 11% in the average dollars
per load.

      Gross revenues from contract carrier services increased to $3,090,000 from
$2,425,000  and net revenues  increased  to $456,000  from  $383,000  which is a
direct result of a 23% increase in the number of  transactions  processed and an
increase of 4% in the average dollars per load.

Nine Months Ended September 30, 2006 Compared to 2005

      For the nine months ended September 30, 2006,  gross revenues,  consisting
of freight fees and other  related  services  revenue,  totaled  $61,395,000  as
compared  with  $47,728,000  in the prior year  period,  an increase of 29%. Net
revenues were  $13,011,000 as compared with $9,378,000 in the prior year period,
an increase of 39%.

      Gross  revenues from  brokerage  services  increased to  $52,200,000  from
$40,422,000  and net revenues  increased to $11,572,000  from  $8,097,000 in the
prior year period. This increase is the direct result of the continued expansion
of our agent network and customer  base which  resulted in a 12% increase in the
number of  transactions  processed and an increase of 15% in the average dollars
per load.

      Gross revenues from contract carrier services increased to $9,195,000 from
$7,306,000 and net revenues  increased to $1,439,000 from $1,281,000  which is a
direct result of a 11% increase in the number of  transactions  processed and an
increase of 13% in the average dollars per load.

Costs and expenses

Commissions

      For the  three  months  ended  September  30,  2006,  commissions  totaled
$2,818,000 as compared with $2,081,000 in the prior year period. As a percentage
of net  revenues,  commissions  were 62% as compared  with 61% in the prior year
period.  For the nine months  ended  September  30,  2006,  commissions  totaled
$8,025,000 as compared with $5,720,000 in the prior year period. As a percentage
of net  revenues,  commissions  were 62% as compared  with 61% in the prior year
period. These increases are the result of the higher commission rates associated
with the expansion of the sales agent base in our brokerage services.

Operating expenses

      For the three months ended September 30, 2006,  operating expenses totaled
$960,000 as compared with $749,000 in the prior year period.  As a percentage of
net revenues, operating expenses were 21% as compared with 22% in the prior year
period. For the nine months ended September 30, 2006, operating expenses totaled
$2,759,000 as compared with $2,286,000 in the prior year period. As a percentage
of net revenues,  operating  expenses were 21% as compared with 24% in the prior
year period.  These decreases are the direct result of  management's  ability to
leverage  selling,


                                       12
<PAGE>

general and  administrative  expenses in  connection  with  business  expansion.
During  2006,  we moved our  headquarters  increasing  our space to 5,300 square
feet. We have increased  administrative  staff commensurate with the increase in
transaction  volume.  We presently  have adequate  facilities  and management to
handle the present and anticipated transaction volume in 2006 and 2007 without a
significant increase in overhead.

Interest Expense

      For the three months ended  September 30, 2006,  interest  expense totaled
$39,000 as compared  with $3,000 in the prior year  period.  For the nine months
ended  September 30, 2006,  interest  expense  totaled  $63,000 as compared with
$42,000 in the prior year period.  These  increases  are primarily the result of
increased  borrowings  pursuant  to our line of credit  and an  increase  in the
average interest rate during the periods.

Income tax

      The income tax benefit of $239,000 for the three  months  ended  September
30, 2006 consisted of $538,000 resulting from the anticipated future utilization
of an  available  federal  tax loss  carryforward,  net of the  amortization  of
deferred tax benefit of $255,000  and state income taxes of $44,000.  The income
tax benefit of $17,000 for the three months ended  September 30, 2005  consisted
of $239,000  resulting from the anticipated  future  utilization of an available
federal tax loss  carryforward,  net of the amortization of deferred tax benefit
of $190,000 and state income taxes of $32,000.

      The income tax benefit of $1,021,000  for the nine months ended  September
30,  2006  consisted  of  $1,876,000   resulting  from  the  anticipated  future
utilization  of  an  available  federal  tax  loss  carryforward,   net  of  the
amortization  of  deferred  tax benefit of $730,000  and state  income  taxes of
$125,000.  The income tax benefit of $84,000 for the nine months ended September
30, 2005 consisted of $613,000 resulting from the anticipated future utilization
of an  available  federal  tax loss  carryforward,  net of the  amortization  of
deferred tax benefit of $452,000 and state income taxes of $77,000.

      Based  upon  available  objective   evidence,   including  our  continuing
profitability,  management  believes it is more likely than not that  forecasted
taxable  income will be  sufficient to utilize the majority of the net operating
loss  carryforward  before its  expiration in 2014.  Accordingly,  the valuation
allowance was reduced by an additional $538,000 and $1,876,000 for the three and
nine months ended September 30, 2006, respectively.

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 nine months ended  September 30, 2006, we increased gross revenues
from $47.7 million to $61.4 million and had net income of $3,185,000 as compared
with  $1,414,000  in  the  prior  year.  As of  September  30,  2006,  we had an
accumulated  deficit of $8.0 million.  Factors that could  adversely  affect our
operating results include:


                                       13
<PAGE>

            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 lines of credit.

      At  September  30,  2006,  we had  borrowings  of  $2,114,000  outstanding
pursuant to our $4,000,000 line of credit.  The line of credit,  obtained from a
bank in May 2003 and which was increased from  $2,500,000 in September  2006, is
subject  to the  maintenance  of  certain  financial  covenants,  is  secured by
accounts  receivable and other operating assets,  and matures in September 2008.
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 September 30, 2006, we had liquid assets of  approximately  $1,050,000.
Available cash is used to reduce borrowings on our line of credit.

      The total amount of debt outstanding as of September 30, 2006 and 2005 was
$2,114,000  and $747,000,  respectively.  The following  table presents our debt
instruments and their weighted  average  interest rates as of September 30, 2006
and 2005, respectively:

                                          Weighted                     Weighted
                                           Average                      Average
                            Balance         Rate         Balance         Rate
                        -------------------------------------------------------
                                      2006                        2005
                        -------------------------------------------------------

      Line of Credit      $ 2,114,000        7.32%      $ 747,000        7.25%

      Inflation  and changing  prices had no material  impact on our revenues or
the results of operations for the period ended  September 30, 2006.  Higher fuel
prices have had no material  impact on our revenues or the results of operations
for the period ended  September  30, 2006 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 of the  Notes  to  Financial  Statements
includes a summary of the  significant  accounting  policies and methods used in
the  preparation  of  our


                                       14
<PAGE>

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.

Income Taxes

      The deferred tax asset  represents  expected future tax savings  resulting
from our net operating loss carryforward.  As of December 31, 2005, we had a net
operating loss  carryforward of  approximately  $16.5 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,  shareholder  changes,  including  the possible  issuance of  additional
shares in one or more financing or acquisition transactions. We have established
a valuation  allowance  for the portion of possible tax savings not likely to be
realized by the end of the carryforward period.

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.


                                       15
<PAGE>

                             CONTROLS AND PROCEDURES

      Our management,  with the participation of our Chief Executive Officer and
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  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 recorded,
processed,  summarized  and reported,  within the time periods  specified in the
SEC's rules and forms. Information required to be disclosed by us in the reports
we file or submit under the  Exchange Act is  accumulated  and  communicated  to
management,  including our principal executive and principal 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.

                                     Part II

                                OTHER INFORMATION

Item 1 - 5: Inapplicable.

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.


                                       16
<PAGE>

                                   SIGNATURES

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

                                       AUTOINFO, INC.


                                       By: /s/ Harry Wachtel
                                           -------------------------------------
                                           Harry Wachtel
                                           President and Chief Executive Officer


                                       By: /s/ William Wunderlich
                                           -------------------------------------
                                           William Wunderlich
                                           Executive Vice President and
                                           Principal Financial Officer

Date: November 8, 2006


                                       17