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: MARCH 31, 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 April 30,
2006: 31,799,000 shares of common stock.


                                       1
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                                      INDEX

Part I.  Financial Information:

Item 1.     Consolidated Financial Statements:                              Page

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

            Statements of Income (unaudited)
              Three months ended March 31, 2006 and 2005....................  4

            Statements of Cash Flows  (unaudited)
              Three months ended March 31, 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 ... 14

Item 4.       Controls and Procedures....................................... 14

Part II. Other Information.................................................. 14

Item 6.     Exhibits........................................................ 14

Signatures  ................................................................ 15


                                       2
<PAGE>

                          PART I. FINANCIAL INFORMATION

                              FINANCIAL STATEMENTS

                         AUTOINFO, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

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

Current assets:
   Cash                                                       $    326,000     $    419,000
   Accounts receivable, net of allowance for doubtful
       accounts of $247,000 and $201,000 as of March
       31, 2006 and December 31, 2005, respectively             12,428,000       12,735,000
   Deferred income taxes (Note 2)                                  827,000          860,000
   Other current assets                                            379,000          255,000
                                                              ------------     ------------

         Total current assets                                   13,960,000       14,269,000

Fixed assets, net of accumulated depreciation                      301,000          292,000

Deferred income taxes (Note 2)                                   2,654,000        2,047,000

Other assets                                                        38,000           38,000
                                                              ------------     ------------

                                                              $ 16,953,000     $ 16,646,000
                                                              ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
     Loan payable                                             $    601,000     $  1,280,000
     Accounts payable and accrued liabilities                    7,009,000        7,235,000
                                                              ------------     ------------
          Total current liabilities                              7,610,000        8,515,000
                                                              ------------     ------------

Stockholders' Equity
    Preferred stock - authorized 10,000,000 shares
       $.001 par value; issued and outstanding - 0 shares
       as of March 31, 2006 and December 31, 2005                       --               --
  Common stock - authorized 100,000,000 shares
       $.001 par value; issued and outstanding -
       31,799,000 shares as of March 31, 2006 and
       31,624,000 shares as of December 31, 2005                    32,000           32,000
   Other capital                                                   549,000          549,000
   Deferred compensation                                          (393,000)        (413,000)
   Additional paid-in capital                                   19,084,000       19,047,000
   Deficit                                                      (9,929,000)     (11,084,000)
                                                              ------------     ------------
        Total stockholders' equity                               9,343,000        8,131,000
                                                              ------------     ------------

                                                              $ 16,953,000     $ 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)

                                                       Three Months Ended
                                                            March 31,
                                                      2006             2005
                                                  ------------     ------------

Gross revenues                                    $ 18,096,000     $ 14,915,000
Cost of transportation                              14,108,000       11,848,000
                                                  ------------     ------------

Net revenues                                         3,988,000        3,067,000
                                                  ------------     ------------

Commissions                                          2,478,000        1,900,000
Operating expenses                                     888,000          780,000
                                                  ------------     ------------
                                                     3,366,000        2,680,000
                                                  ------------     ------------

Income from operations                                 622,000          387,000
Interest expense                                         6,000           28,000
                                                  ------------     ------------

Income before income taxes                             616,000          359,000
Income taxes (benefit)  (Note 2)                      (539,000)         (34,000)
                                                  ------------     ------------

Net income                                        $  1,155,000     $    393,000
                                                  ============     ============

Net income per share
     Basic                                        $        .04     $        .01
                                                  ------------     ------------
     Diluted                                      $        .03     $        .01
                                                  ------------     ------------

Weighted average number of common shares
     Basic                                          31,751,000       31,338,000
                                                  ------------     ------------
     Diluted                                        34,506,000       34,177,000
                                                  ------------     ------------

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


                                       4
<PAGE>

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

                                                         Three Months Ended
                                                              March 31,
                                                        2006            2005
                                                    -----------     -----------
Cash flows from operating activities:
Net income                                          $ 1,155,000     $   393,000
Adjustments to reconcile net income to net cash
   provided by operating activities:
     Change in allowance for doubtful accounts           46,000          45,000
     Depreciation and amortization                       25,000          10,000
     Deferred compensation expense                       33,000          17,000
     Deferred income taxes                             (574,000)        (56,000)
Changes in assets and liabilities:
     Accounts receivable                                262,000          56,000
     Other current assets                              (124,000)        348,000
     Other assets                                            --         (60,000)
     Accounts payable and accrued liabilities          (227,000)       (471,000)
                                                    -----------     -----------

Net cash provided by operating activities               596,000         282,000
                                                    -----------     -----------

Cash flows from investing activities:
     Capital expenditures                               (34,000)        (47,000)
                                                    -----------     -----------
Net cash used in investing activities                   (34,000)        (47,000)
                                                    -----------     -----------

Cash flows from financing activities:
    Exercise of stock options                            24,000          23,000
    Decrease in  loan payable, net                     (679,000)       (245,000)
                                                    -----------     -----------
Net cash used in financing activities                  (655,000)       (222,000)
                                                    -----------     -----------

Net change in cash                                      (93,000)         13,000
Cash, beginning of period                               419,000          38,000
                                                    -----------     -----------

Cash, end of period                                 $   326,000     $    51,000
                                                    ===========     ===========

              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,  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, air, rail,
ocean common  carriers and  independent  owner-operators  to service  customers'
needs. The Company's brokerage and contract carrier services are provided though
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 months ended March 31, 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
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.


                                       6
<PAGE>

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 pick up 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 March  31,  2006 and  December  31,  2005,  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 2,755,000 and 2,839,000,  respectively,  for the periods ended
March 31, 2006 and 2005.

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.


                                       7
<PAGE>

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 three months ended March 31,
2006 include an additional  $12,000 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 periods  ended March 31, 2006 and 2005,  the  provision for income
taxes consisted of the following:

<TABLE>
<CAPTION>
                                                     2006                        2005
                                            ---------------------------------------------------
                                             Current      Deferred       Current      Deferred
                                            ---------------------------------------------------
<S>                                         <C>           <C>           <C>           <C>
      Tax expense before application of
           operating loss carryforwards     $ 244,000     $      --     $ 143,000     $      --
      Tax expense (benefit) of operating
           loss carryforwards                (209,000)      209,000      (121,000)      121,000
      Change in valuation allowance                --      (783,000)           --      (177,000)
                                            ---------------------------------------------------

      Income tax expense (benefit)          $  35,000     $(574,000)    $  22,000     $ (56,000)
                                            ---------------------------------------------------
</TABLE>


                                       8
<PAGE>

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

                                                     March 31,     December 31,
                                                       2006            2005
                                                   ------------    ------------
            Deferred tax assets:
                 Net operating loss carryforward   $  4,663,000    $  4,872,000
                                                   ------------    ------------

            Gross  deferred tax assets                4,663,000       4,872,000
            Less: valuation allowance                (1,182,000)     (1,965,000)
                                                   ------------    ------------

            Deferred tax asset                     $  3,481,000    $  2,907,000
                                                   ============    ============

      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,  stockholder  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 history
of profitability, management believes it is more likely than not that forecasted
taxable income will be sufficient to utilize a portion 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, air, rail, ocean common carriers
and independent  owner-operators  to service our customers' needs. Our non-asset
based 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 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.

      Our brokerage  services are provided though 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 no own any trucking  equipment;  our independent  owner-operators
lease onto our operating authority and transport freight under the Sunteck name.

      During the quarter  ended March 31, 2006,  the increase in gross  revenue,
net  revenue and  operating  income was  primarily  generated  in our  brokerage
division.  This growth is readily measured by the number of transactions we have
processed, which increased for the respective three month periods from 10,600 in
2005 to 11,200 is 2006, an increase of 6%, and the average  revenue  dollars per
load,  which increased by 19% 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 10% in 2006 as
compared to 2005.  This is primarily  the result of revenue mix and, to a lesser
degree, a general increase in prices.


                                       10
<PAGE>

Results of operations

For the three months ended March 31, 2006 and 2005

      During the quarter  ended March 31, 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:

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

          Net revenues                       100.0%           100.0%

             Commissions                      62.1%            62.0%
             Operating expenses               22.3%            25.4%
             Interest expense                   .1%              .9%
             Income taxes (benefit)          (13.5)%           (1.1)%

          Net income                          29.0%            12.8%

Revenues

      Gross  revenues,  consisting  of freight fees and other  related  services
revenue,  totaled  $18,096,000 for the quarter ended March 31, 2006, as compared
with $14,915,000 in the prior year period, an increase of 21%. Net revenues were
$3,988,000 for the quarter ended March 31, 2006, as compared with  $3,067,000 in
the prior year period, an increase of 30%.

      Gross  revenues from  brokerage  services  increased to  $15,416,000  from
$12,372,000  and net revenues  increased to  $3,541,000  from  $2,581,000 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 6% increase in the
number of  transactions  processed and an increase of 18% in the average dollars
per load.

      Gross revenues from contract carrier services increased to $2,680,000 from
$2,543,000 as the result of a 14% increase in average  revenue dollars per load.
Net  revenues  decreased  to $447,000  from  $486,000 as a result of higher fuel
costs and an increase in fuel  service and  detention  charges  which are passed
directly  through to our owner  operators,  thereby  reducing  net revenues as a
percentage of gross revenues.

Costs and expenses

      Commissions  totaled  $2,478,000  for the quarter ended March 31, 2006, as
compared  with  $1,900,000  in the prior year period,  an increase of 30%.  This
increase is the result of the increase in net  revenues.  As a percentage of net
revenues,  commissions were 62% for the respective quarters ended March 31, 2006
and 2005.

      Operating  expenses totaled $888,000 for the quarter ended March 31, 2006,
as compared  with  $780,000 in the prior year  period,  an increase of 14%. As a
percentage  of net revenues,  operating  expenses were 22% for the quarter ended
March 31, 2006, as compared with 25% in the prior year period.  This decrease is
the direct result of our ability to leverage selling, general and administrative
expenses in connection with business expansion. During 2005, we moved our


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<PAGE>

headquarters  to  a  larger  5,300  square  foot  facility.  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  without  a  significant  increase  in
overhead.

      Interest  expense was $6,000 for the  quarter  ended  March 31,  2006,  as
compared  with $28,000 in the prior year period.  This decrease is primarily the
result of decreased borrowings pursuant to our $2.5 million line of credit at an
interest rate of prime + 1/2%.

Income tax

      The income tax  benefit of $539,000  for the quarter  ended March 31, 2006
consisted  of a  benefit  of  $783,000  resulting  from the  anticipated  future
utilization  of  an  available  federal  tax  loss  carryforward,   net  of  the
utilization  of the  deferred  tax benefit of $209,000 and state income taxes of
$35,000.  The income tax benefit of $34,000 for the quarter ended March 31, 2005
consisted of $177,000  resulting from the anticipated  future  utilization of an
available federal tax loss carryforward,  net of the utilization of the deferred
tax benefit of $121,000 and state income taxes of $22,000.  Based upon available
objective  evidence,  including  our  profitability,  we believe that it is more
likely than not that  forecasted  taxable income will be sufficient to utilize a
portion of the net operating  loss  carryforward  before its expiration in 2014.
Accordingly,  as of March 31, 2006,  the  valuation  allowance was reduced by an
additional $783,000.

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 quarter  ended March 31, 2006,  we increased  gross  revenues from
$14.9 million to $18.1 million and had net income of $1,155,000 as compared with
$393,000 in the prior year. As of March 31, 2006, we had an accumulated  deficit
of $9.9  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.

      At March 31, 2006,  we had an  outstanding  balance of $601,000  under our
$2,500,000 line of credit. The line of credit, obtained from a bank in May 2003,
is subject to the  maintenance  of certain  financial  covenants,  is secured by
accounts  receivable and other  operating  assets,  and matures in June 2006. We
believe that we have sufficient working


                                       12
<PAGE>

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 March  31,  2006,  we had  liquid  assets  of  approximately  $326,000.
Available cash is used to reduce borrowings on our line of credit.

      The total  amount of debt  outstanding  as of March 31,  2006 and 2005 was
$601,000 and  $1,753,000,  respectively.  The following  table presents our debt
instruments and their weighted  average  interest rates as of March 31, 2006 and
2005, respectively:

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

      Line of Credit     $ 601,000        8.25%       $ 1,753,000       6.0%

      Inflation  and changing  prices had no material  impact on our revenues or
the results of operations for the period ended March 31, 2006.

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 the Company's  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  $14.3 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.


                                       13
<PAGE>

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
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 it files or submits  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
it files 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 we  reasonably  likely to materially  affect,  our
internal control over financial reporting.

                           PART II. OTHER INFORMATION

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.


                                       14
<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: May 2, 2006


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