United States Securities and Exchange Commission
                     Washington, D. C. 20549

                           FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                      EXCHANGE ACT OF 1934

             For the quarterly period June 30, 2006

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

             For the transition period from       to

                  Commission File No. 000-32393

                           eGene, Inc.
                           -----------
(Exact Name of Small Business Issuer as Specified in its Charter)

       NEVADA                                        87-0645507
       ------                                        ----------
(State or Other Jurisdiction of                 (I.R.S. Employer I.D. No.)
 incorporation or organization)



              17841 Fitch, Irvine, California 92614
              -------------------------------------
             (Address of Principal Executive Offices)

            Issuer's Telephone Number: (949) 250-8686
                                       --------------

Check whether the Registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
[ ]

        Applicable Only to Issuers Involved in Bankruptcy
           Proceedings During the Preceding Five Years

Not applicable.

Check whether the Registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes   No

Not applicable.

Indicate by check mark whether the Registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act). Yes   No X

              Applicable Only to Corporate Issuers

Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date.

The number of our outstanding shares of common stock as of July 28, 2006, was
18,065,773 (actual); however, assuming all stockholders of BioCal Technology,
Inc., a California corporation ("BioCal"), who did not perfect dissenters'
rights in the merger of our wholly-owned subsidiary that was formed for the
sole purpose of merging with and into BioCal submit their BioCal shares for
exchange under that Agreement and Plan of Merger and by which BioCal became a
wholly-owned subsidiary of ours, then there will be 18,440,001 outstanding
shares.

Transitional Small Business Disclosure Format (Check One): Yes  No X

                           eGene, Inc.



                         Table of Contents

                                                                         Page

PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements
          Condensed Consolidated Balance Sheet as of June 30, 2006         2

          Condensed Consolidated Statements of Operations for the
          Three and Six Months Ended June 30, 2006 and 2005                3

          Condensed Consolidated Statements of Cash Flows for the
          Three and Six Months Ended June 30, 2006 and 2005                3

          Notes to Unaudited Condensed Consolidated Financial Statements   4

Item 2.  Management's Discussion and Analysis of Financial Condition and
          Results of Operations                                            6

Item 3.  Controls and Procedures                                           8

PART II   OTHER INFORMATION

Item 1.   Legal Proceedings                                                9

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds      9

Item 3.   Defaults upon Senior Securities                                  9

Item 4.   Submission of Matters to a Vote of Security Holders              9

Item 5.   Other Information                                                9

Item 6.   Exhibits                                                         9

SIGNATURES
 EX-31.1 302 Certification of Ming S. Liu
 EX-31.2 302 Certification of Peter Sheu
 EX-32   906 Certification


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

The Financial Statements of the Registrant required to be filed with this 10-
QSB Quarterly Report were prepared by management, and commence on the
following page, together with Related Notes. In the opinion of management, the
Financial Statements fairly present the financial condition of the Registrant.
                           eGene, Inc.
              CONDENSED CONSOLIDATED BALANCE SHEET
                           (unaudited)

                       As of June 30, 2006


                                  ASSETS
Current Assets
      Cash                                              $   198,424
      Accounts Receivable, net of allowance                 409,818
      Inventory                                             341,531
                                                         ----------
   Total Current Assets                                     949,773
   Fixed Assets
      Computer Equipment                                     50,803
      Equipment and Machinery                                51,709
      Furniture and Fixtures                                 21,413
      Injection Molds                                       262,847
      Less Accumulated Depreciation                        (122,165)
                                                         ----------
   Total Fixed Assets                                       264,607
   Other Assets
      Deferred Patent Cost, Net of Amortization             334,011
      Other Deferred Cost, Net of Amortization                  282
      Deposits                                               30,683
                                                         ----------
   Total Other Assets                                       364,976
                                                         ----------
TOTAL ASSETS                                             $1,579,356
                                                         ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
   Current Liabilities
      Accounts Payable                                   $  121,317
      Accrued Payroll & Related Payroll Taxes               176,121
      Accrued Vacation Payable                               35,260
      Warranty Accrual                                       48,233
      Other Current Liabilities                               9,076
      Current Portion of Settlement Payable                  59,548
                                                         ----------
   Total Current Liabilities                                449,555
                                                         ----------
   Settlement Payable- Long Term                            183,642

Total Liabilities                                        $  633,197

   Stockholders' Equity
      Common Stock                                           18,401
      Additional Paid in Capital                          5,915,044
      Accumulated Deficit                                (4,964,786)
      Prepaid services via warrants issuance                (22,500)
                                                         ----------
   Total Stockholders' Equity                               946,159
                                                         ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                1,579,356
                                                         ==========


See accompanying notes to the condensed consolidated financial statements.
<PAGE>
                           eGene, Inc.
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
                           (unaudited)


                       Three Months  Three Months  Six Months  Six Months
                           Ended         Ended       Ended        Ended
                         6/30/2006    6/30/2005    6/30/2006   6/30/2005

Revenues                 $573,305     $216,706     $1,080,517   $489,559
                        ---------    ---------      ---------  ---------
Cost of Goods Sold        187,673      114,832        369,157    248,591
                        ---------    ---------      ---------  ---------
Gross Profit              385,632      101,874        711,360    240,968
                        ---------    ---------      ---------  ---------
Expenses
     Accounting & Audit     3,527        2,444         25,679     26,949
     Amortization  &
      Depreciation         22,260        8,542         44,199     14,837
     General Office
      Expenses              3,949        1,903          8,055      4,524
     Insurance             15,458       13,366         26,718     32,298
     Legal Expenses        20,324        9,242         37,654     13,433
     Manufacturing &
      Production            8,045        3,772         11,522      7,519
     Marketing & Sales    164,109       17,683        217,669     41,295
     Office Equipment       1,297          795          2,531      2,729
     Office Supplies        3,330          850          6,185      4,947
     Postage and Delivery     329        3,060          2,342      5,969
     Professional Fees     44,790        9,746         84,771     20,059
     Rent - Building       25,538       29,136         48,625     43,704
     Research &
      Development          17,349       22,495         32,595     32,803
     Salaries, Wages &
      Taxes               212,715      202,119        426,272    473,155
     Stock Based
      Compensation        111,864            -        167,364          -
     Telephone & Utilities  3,563        4,485          7,165      9,853
     Property and State
      Taxes                 3,415        1,236          3,415      1,237
                        ---------    ---------      ---------  ---------
Total Expenses            661,862      330,874      1,152,761    735,041
                        ---------    ---------      ---------  ---------
Net Loss from Operations (276,230)    (229,000)      (441,401)  (494,073)
                        ---------    ---------      ---------  ---------
Net Other Income            1,018        1,852          1,719      3,150
                        ---------    ---------      ---------  ---------
Net Loss Before Income
Taxes                    (275,212)    (227,148)      (439,682)  (490,923)
                        ---------    ---------      ---------  ---------
Current Year Provision
for Income Taxes                -            -              -          -
                        ---------    ---------      ---------  ---------
Net Loss                 (275,212)    (227,148)      (439,682)  (490,923)
                        =========    =========      =========  =========
Loss Per Share-Basic &
Diluted                    ($0.02)      ($0.01)        ($0.02)    ($0.03)
                        =========    =========      =========  =========
Weighted Average Shares
Outstanding            18,245,468   15,624,188     18,181,493 15,564,575
                       ==========   ==========     ========== ==========


See accompanying notes to the condensed consolidated financial statements.

<PAGE>
                           eGene, Inc.
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (unaudited)

                            Three Months  Three Months  Six Months  Six Months
                                Ended         Ended       Ended        Ended
                               6/30/2006    6/30/2005    6/30/2006   6/30/2005

Cash Flows From Operating Activities
     Net Loss                 (275,212)    (227,148)    (439,682)    (490,923)
     Adjustments of net income
     (loss) to net cash
     provided by operations:
          Amortization           1,534        2,380        3,068        2,604
          Depreciation          20,029        6,162       40,433       12,233
          Securities issued
          for services          73,500            -       96,000            -
          Stock Based
          Compensation         111,864            -      167,364            -
          Decrease (increase)
          in current assets   (120,476)      61,462      144,739       85,248
          Increase (decrease)
          in current
          liabilities          (46,379)      59,934      (41,909)      90,174
                             ---------    ---------    ---------    ---------
     Net cash provided (used)
     by operating activities  (235,140)     (97,210)     (29,987)    (300,664)
                             ---------    ---------    ---------    ---------

Cash Flows From Investing Activities
     Purchases of Fixed Assets  (5,573)      (1,098)     (19,160)      (1,098)
     Purchase of Other Assets  (12,681)      (6,455)     (28,924)     (26,671)
                             ---------    ---------    ---------    ---------
     Net cash provided (used)
     by investing activities   (18,254)      (7,553)     (48,084)     (27,769)
                             ---------    ---------    ---------    ---------
Cash Flows from Financing
     Capital Stock Issued      150,000            -      150,000       10,583
                             ---------    ---------    ---------    ---------
Net Increase (Decrease) in
cash                          (103,394)    (104,763)      71,929     (317,850)

Cash at beginning of period    301,818      188,671      126,495      401,758
                             ---------    ---------    ---------    ---------
Cash at end of period          198,424       83,908      198,424       83,908
                             =========    =========    =========    =========

Supplemental disclosure of cash flow
information
     Interest paid                   -            -            -            -
     Income taxes paid             800          800          800          800

See accompanying notes to the condensed consolidated financial statements.
<PAGE>
                           eGene, Inc.
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          June 30, 2006
                           (Unaudited)

1. ORGANIZATION AND INTERIM FINANCIAL STATEMENTS

Effective July 13, 2004, Centroid Consolidated Mines Co., (Centroid), which
changed its name to eGene, Inc. (eGene), completed a merger with BioCal
Technology, Inc., (BioCal) a private California corporation in the business of
developing, manufacturing, and marketing genetic analyzer systems and reagents
for the global genetic testing market. In conjunction with our merger, we
raised $1.6 million in private funding. We had no material business operations
at the time that we acquired BioCal Technology.

The merger caused BioCal to become a wholly-owned subsidiary of eGene, a
dormant, publicly held Nevada corporation. The terms of the merger provided
that eGene exchange one of its shares of common stock for every three
outstanding shares of common stock of BioCal and one of its options to acquire
shares of common stock of eGene for every three outstanding options to acquire
common stock of BioCal. The combination was a "reverse merge". The transaction
was accounted for as a recapitalization of BioCal wherein the net assets are
brought forward at their net book value with no goodwill recognized, and the
pre-merger financial statements of BioCal became the historical financial
statements of the combined company.

The directors and executive officers of BioCal subsequently became the
directors and officers of the reorganized entity. Our Centroid Nevada
corporation has changed its name to eGene, Inc.

The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and
Article 10 of Regulation S-X of the Securities and Exchange Commission
("SEC"). Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring entries) considered necessary for a fair
presentation have been included. Operating results for the six months ended
June 30, 2006, are not necessarily indicative of the results that may be
expected for the full year ending December 31, 2006. It is suggested that
these condensed consolidated financial statements be read in conjunction with
the consolidated financial statements and notes thereto included in the
Company's Annual Report for the year ended December 31, 2005.

Principles of Consolidation

eGene's financial statements include the accounts of its wholly owned
subsidiary BioCal Technology, Inc. All significant inter-company balances and
transactions have been eliminated in consolidation.

2.  UNREGISTERED SALES OF EQUITY SECURITIES

In June, 2006, our Board of Directors approved to accept a cash advance in the
amount of $150,000 from a shareholder, and the Company desires to treat this
cash advance as an additional purchase of shares of the Company's "restricted
securities" (common stock) at a price of $0.64 per share for 234,375 shares.
There were no registration rights afforded to the investor.

We issued these securities to persons who were either "accredited investors,"
or "sophisticated investors" who, by reason of education, business acumen,
experience or other factors, were fully capable of evaluating the risks and
merits of an investment in our Company; and each had prior access to all
material information about us. We believe that the offer and sale of these
securities were exempt from the registration requirements of the Securities
Act, pursuant to Sections 4(2) and 4(6) thereof, and Rule 506 of Regulation D
of the Securities and Exchange Commission and from various similar state
exemptions.

3. STOCK-BASED COMPENSATION

On January 1, 2006, the Company adopted the fair value recognition provisions
of Statement of Financial Accounting Standards (SFAS) No. 123R, "Share-Based
Payment," using the modified prospective method. Consequently, for the three
and six months ended June 30, 2006, the Company's results of operations
reflected compensation expenses for new stock options granted and vested under
its stock incentive plans and the unvested portion of previous stock option
grants which vested during these periods. The amounts recognized in the
financial statements related to stock-based compensation were $111,864 and
$167,364 for the three and six months ended June 30, 2006, respectively.

Prior to the first quarter of fiscal year 2006, the Company accounted for its
stock-based employee compensation arrangements in accordance with the
provisions and related interpretations of Accounting Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees." Had compensation cost for
stock-based compensation been determined consistent with SFAS No. 123R, the
net loss and net loss per share for the three and six months ended June 30,
2005 would have been adjusted to the following pro forma amounts:

                                    Three Months             Six Months
                               Ended June 30, 2005     Ended June 30, 2005
Net loss, as reported                $(227,148)             $(490,923)
Compensation cost under fair
      value-based accounting
      method, net of tax                 1,194                  1,447
Net loss, pro forma                   (228,342)              (492,370)

Net loss per common share
     Basic and Diluted
     As reported                       $(0.01)                $(0.03)
     Pro forma                         $(0.01)                $(0.03)

Weighted average shares             15,624,188             15,564,575

The fair value of each option granted is estimated on the date of grant using
the Black-Scholes option-pricing method. The Company uses historical data to
estimate the expected price volatility, the expected option life and the
expected forfeiture rate. The Company has not made any dividend payments nor
does it have plans to pay dividends in the foreseeable future. The following
assumptions were used to estimate the fair value of options granted during the
three and six months ended June 30, 2006 and 2005 using the Black-Scholes
option-pricing model:

                               2006        2005
Expected life (years)           8.6         5-8
Interest rate                   4.9%        3.0%
Volatility                      194%          0%
Dividend yield                    0%          0%

In April, 2006, the Company issued 50,000 shares of "restricted securities"
(common stock) to a non-related party for services rendered.  These shares
were valued at $1.02 per share, which was the fair value of the shares at
the date of issuance.  Concurrently, this expense was recognized under the
caption "Marketing and Sales".

4. INVENTORIES

Inventories are stated at the lower of cost or market. Inventories at June 30,
2006 consisted of the following:

                                      June 30, 2006


Finished goods                        $    11,000
Demo units                                  5,500
Raw materials                             325,031
                                      -----------
Total                                 $   341,531
                                      ===========

5. SETTLEMENT AGREEMENT

On February 23, 2006, the Company entered into a Settlement Agreement and
Mutual Release (the "Settlement Agreement") by and among the Company and Udo
Henseler, former Chairman, CEO, and director of the Company ("Henseler").

The following are the principal terms of the Settlement Agreement: For and in
consideration of the payment of the sum of $282,888.00 together with interest
at the rate of four percent per annum, to be paid to Henseler by the Company
in monthly installments until paid in full: Henseler released eGene from and
against any and all claims which Henseler ever had, now has or hereafter may
have against the Company; the Company released Henseler from and against any
and all claims which the Company ever had, now has or hereafter may have
against Henseler; Henseler agreed to resign as a member of the Board of
Directors of the Company subsequent to the separation from his employment with
eGene in July 2005; and Henseler retained approximately 143,334 unexercised,
vested stock options in eGene and shall be permitted by eGene to exercise such
options at an exercise price of $0.05 each for a total exercise price of
$7,166.70 within thirty months of the date of the execution of the Settlement
Agreement.

6. RELATED PARTY TRANSACTIONS

During the three months ended June 30, 2006, we purchased parts from a
manufacturing company, whose ownership includes one of our directors and
shareholders. The total purchases were $76,916. The total balance owed to this
party as of June 30, 2006 was $1,016.

During the three months ended June 30, 2006, we received $16,309 in parts
sales from a manufacturing company, whose ownership includes one of our
directors and shareholders.  The party's account receivable balance as of June
30, 2006 was $892.

7. SUBSEQUENT EVENTS

The following stock options were exercised on 7/11/2006 and 7/19/2006.

Robert Heitel               7/11/2006             24,109 shares
Monisha Singh               7/19/2006             14,000 shares

These securities were sold under Rule 506 of Regulation D of the Securities
and Exchange Commission and Section 4(2) of the Securities Act of 1933, as
amended.  All purchasers were either "accredited investors" or directors,
officers or affiliates of our Company.

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

This Management's Discussion and Analysis of Financial Condition and Results
of Operations as of June 30, 2006, and for the three month periods ended June
30, 2006 and 2005, should be read in conjunction with our financial statements
included in our 10-KSB Annual Report for the year ended December 31, 2005,
that was filed with the Securities and Exchange Commission on April 3, 2006
(the "2005 10-KSB Annual Report").

Statements made in this 10-QSB Quarterly Report which are not purely
historical are forward-looking statements with respect to our goals, plan
objectives, intentions, expectations, financial condition, results of
operations, future performance and business, including, without limitation,
(i) our ability to raise capital, and (ii) statements preceded by, followed by
or that include the words "may," "would," "could," "should," "expects,"
"projects," "anticipates," "believes," "estimates," "plans," "intends,"
"targets" or similar expressions. Forward-looking statements involve inherent
risks and uncertainties, and important factors (many of which are beyond our
Company's control) that could cause actual results to differ materially from
those set forth in the forward-looking statements, including the following,
general economic or industry conditions, nationally and/or in the communities
in which we conduct business, changes in the interest rate environment,
legislation or regulatory requirements, conditions of the securities markets,
our ability to raise capital, changes in accounting principles, policies or
guidelines, financial or political instability, acts of war or terrorism,
other economic, competitive, governmental, regulatory and technical factors
affecting our operations, products, services and prices. Accordingly, results
actually achieved may differ materially from expected results in these
statements. Forward-looking statements speak only as of the date they are
made. We do not undertake, and specifically disclaim, any obligation to update
any forward-looking statements to reflect events or circumstances occurring
after the date of such statements.

Executive Summary.

Business.

Currently, genetic analyses performed in most research and application
laboratories use traditional slab-gel electrophoresis systems, a technology
which was developed more than 20 years ago and has not seen a major face-lift
since its inception. The slab-gel method is labor intensive and time
consuming. A new replacement technology is expected to be developed for
current genetic analyses.

eGene believes the answer lies in a high-throughput and high-performance
automated genetic analysis system. Such systems can take many forms, whether
they involve instrumentation, reagent and software configuration - but they
must be affordable and acceptable for routine analysis.

Therefore, eGene has designed a reliable genetic analysis system based on the
micro-channel concept of capillary electrophoresis. Our systems provide
automated, affordable, rapid and accurate quantitative genetic analysis,
especially for polymerase chain reaction (PCR) amplified DNA products, which
represents a large segment of the genetic analysis market.

We believe the usage of the high-throughput and low-cost HDA-GT12 system will
remove the high-cost genetic service barrier and stimulate a greater demand
for low-cost genetic analysis tools. More users are expected to enter the
genetic analysis business.

Our HDA-GT12 (High-Performance Genetic Analyzer) system detects, quantifies,
identifies and characterizes biological organisms. It advances and automates
many routine and non-routine genetic laboratory and industrial procedures that
include, but are not limited to, new and improved production methods, enhanced
and novel product development opportunities, quality control, security,
genetic identity, paternity, crime, bioterrorism, pathogen detection, drug
monitoring, safety methods and overall productivity.

We are developing three channels to distribute our complete system solutions
to customers: Distributing directly to customers, distributing indirectly
through our international network of distributors and distributing through our
developing original equipment manufacturer ("OEM") channels. Our OEM
distribution channel enables us to extend the commercial potential of our
advanced technologies into new industries and new applications with
experienced commercial partners. In the OEM channel, we plan to provide our
enabling technologies to potential commercial partners who will then integrate
the application solution and market them to their end customers.

Critical Accounting Policies, Estimates and Assumptions.

We consider our accounting policies related to revenue recognition, inventory
reserve and warranty accrual to be critical. Inherent in our determination of
when to recognize revenue, and in our calculation of our inventory reserve and
warranty accrual, are a number of significant estimates, assumptions and
judgments. These include deciding whether the elements required to recognize
revenue from a particular arrangement are present and estimating the amount of
inventory obsolescence and warranty costs associated with shipped products. We
base our estimates and judgments on historical experience and on various other
assumptions that we believe to be reasonable under the circumstances. Actual
results could differ materially from these estimates. On January 1, 2006, we
adopted the fair value recognition provisions of Statement of Financial
Accounting Standards (SFAS) No. 123R, "Share-Based Payment," using the
modified prospective method. There have been no other material changes to our
critical accounting policies since we filed our 2005 Annual Report on Form
10-KSB with the Securities and Exchange Commission. For a description of our
critical accounting policies, please refer to our 2005 Annual Report on Form
10-KSB.

Second Quarter Overview.

During the second quarter of 2006, our sales increased $356,600 or 165%, from
sales of $216,706 in the second quarter of 2005. This increase in our
quarterly sales reflects the continuous product sales ramp up.

We have also added a sales director to our staff and plan to move our sales to
the next level. We have signed a three-year distribution agreement with
Daiichi Pure Chemicals Co. Ltd. to promote our business in Japan.

In this quarter, eGene's corporate profile has been introduced in Genetic
Engineering News, in May 15 issue. We have "High throughput RNA Quality
Control" application note published in BioScience Technology magazine to
introduce our HDA system and RNA QC cartridge in gene expression market. We
have an application note "Cost benefit analysis of a multicapillary
electrophoresis system " in American Laboratory News June/July issue to
describe the cost benefit of HDA system in routine genetic analysis work.

We have also seen HDA system users publish their research results for
different applications in the professional journals. This indicates that the
research society has seen the advantages of using our HDA system in
genetically related applications.

In this quarter, we are continuously using our resources for research and
development of avian flu virus test. We recently announced that our HDA-GT12
Genetic Analyzer is capable of specifically detecting the 100-1000 copies of
H5N1 strain.  We will continue our work in bird flu detection and believe that
our effort could potentially be used to detect bird flu in a fast and low cost
way.

A medical related genotyping application has been developed using our system
platform with our collaborators. We plan to launch new products in the near
future.

During the second quarter of 2006, we have received patent issued from the
China Patent Office for "OPTICAL DETECTION IN A MULTI-CHANNEL BIO-SEPARATION
SYSTEM."

Results of Operations.

Revenue.

Total sales increased for the three months ended June 30, 2006, as compared to
the same period in 2005. Our sales increased $356,600, or 165% from sales of
$216,706 in the second quarter of 2005. This increase in our quarterly sales
reflects the successful sales ramp up in our distribution channels.

                     Three Months Ended
                          June 30,

                         2006      2005      $change     %change 2005

Total Revenues         $573,305  $216,706    $356,600         165%

Cost of Sales.

In addition to our goal of attaining sustainable revenue growth, we are
continuing to focus on improving our gross profit margins and controlling
product costs by seeking out the benefits of cost effective global sourcing
opportunities. As a result, cost of sales as a percentage of sales decreased
and improved to 33% in the second quarter of 2006, from 53% in the second
quarter of 2005, and gross profit margin increased 20% to 67% in the second
quarter of 2006, from 47% in the second quarter of 2005.

Expenses.

Total expenses for the quarter ended June 30, 2006, were $661,862, which was
$330,988 higher as compared to the same period in 2005. The major expense
increases were $146,426 for Marketing and Sales Expenses and $185,364 for
non-cash expenses associated with Stock Based Compensation and Securities
Issued for Services.

We expect to devote additional expense resources to substantially
strengthening and broadening our marketing and sales infrastructure, and for
other general corporate activities.

Selling and marketing expenses are expected to increase primarily due to
planned amplified sales that require augments in personnel costs related to
our growth related construction of our marketing, sales and service functions,
and general increases in other sales and technical support initiatives. We
expect selling, marketing and product promotion expenses to grow over the next
several years to support a more global commercialization of our products.

The net loss for the quarter ended June 30, 2006 was $275,212, which was
$48,064 higher compared to the previous year's quarterly loss of $227,148.

Liquidity and Capital Resources.

Our cash and cash equivalents were $198,424 on June 30, 2006, compared to
$83,908 on June 30, 2005. We have financed our operations primarily through
equity sales and product sales.

Related Transactions.

During the three months ended June 30, 2006, we purchased parts from a
manufacturing company, whose ownership includes one of our directors and
shareholders. The total purchases were $76,916. The total balance owed to this
party as of June 30, 2006 was $1,016.

During the three months ended June 30, 2006, we received $16,309 in parts
sales from a manufacturing company, whose ownership includes one of our
directors and shareholders.  The party's account receivable balance as of June
30, 2006 was $892.

Cash Flow.

                                   Three Months Ended
                                         June 30,
                                     2006      2005          $change

Net Cash provided (used)
by operating activities       $(235,140)     $(97,210)    $(137,930)

Cash Flows from
investing activities           $(18,254)      $(7,553)     $(10,701)

Cash Flows from
Financing activities           $150,000             -      $150,000

Operating Activities.

During the three months ended June 30, 2006, we used $235,140 of cash for
operating activities as compared to $97,210 of cash used in the same period of
2005.

Investing Activities.

Investing activities during the three months ended June 30, 2006, were $5,573
for purchase of fixed assets and $12,681 for additional costs incurred for
deferred patent legal fees.

Financing Activities.

During the three months ended June 30, 2006, we generated $150,000 in cash
from financing activities, reflecting the sale of our common stock in private
placement.

On April 6, the Company issued 50,000 shares of Rule 144 restricted common
stock with Piggy-back registration rights for services to the Company.

In the future, we may seek additional funds to support our strategic business
needs and may seek to raise such additional funds through private or public
sales of securities, strategic relationships, bank debt, lease financing
arrangements or other available means. If additional funds are raised through
the issuance of equity or equity-related securities, stockholders may
experience additional dilution, or such equity securities may have rights,
preferences or privileges senior to those of the holders of our common stock.

Going Concern Qualification of our Auditors.

Our accompanying financial statements have been prepared assuming we will
continue as a going concern. We have accumulated losses and are still
developing our principal operations. These factors raise substantial doubt
about our ability to continue as a going concern. Management's plans in regard
to these matters are also described in Note 2 of our audited financial
statements that are contained in our 2005 10-KSB Annual Report. These
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.

Item 3. Controls and Procedures.

We have evaluated our "disclosure controls and procedures" and our "internal
controls and procedures for financial reporting" as of June 30, 2006. This
evaluation was done under the supervision and with the participation of
management.

Evaluation of Disclosure Controls and Procedures.

Regulations under the Securities Exchange Act of 1934 require public
companies, including our Company, to evaluate any change in our "internal
control over financial reporting," which is defined as a process to provide
reasonable assurance regarding the reliability of financial reporting and
preparation of financial statements for external purposes in accordance with
accounting principles generally accepted in the United States. In connection
with our evaluation of our disclosure controls and procedures as of the end of
the period covered by this Quarterly Report, our Chief Executive Officer,
Chief Financial Officer, Executive VPs and Business Manager did not identify
any change in our internal control over financial reporting during the three
months ended June 30, 2006 that materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting.
Disclosure controls are designed with the objective of ensuring that
information is accumulated and communicated to our management, as appropriate
to allow timely decisions regarding required disclosure, and our Chief
Executive Officer and our Chief Financial Officer have concluded that our
disclosure controls and procedures are effective to a reasonable assurance
level of achieving such objectives.  However, it should be noted though that
eGene is a young and emerging biotechnology company with limited resources,
funding and personnel, and that our evaluation of controls and procedures were
conducted in good faith considering the economic environment of our Company.

Changes in Internal Controls.

Internal controls over financial reporting are procedures which are designed
with the objective of providing reasonable assurance that: (1) our
transactions are properly authorized; (2) our assets are safeguarded against
unauthorized or improper use; and (3) our transactions are properly recorded
and reported, all to permit the preparation of our financial statements in
conformity with accounting principles generally accepted in the United States.
Among other matters, we evaluated our internal controls over financial
reporting to determine whether there were any "significant deficiencies" or
"material weaknesses," and sought to determine whether we have identified any
acts of fraud involving personnel who have a significant role in eGene's
internal controls. In the professional auditing literature, "significant
deficiencies" may be interpreted as being comparable as "reportable
conditions"; these are control issues that could have a significant adverse
effect on the ability to record, process, summarize, and report financial data
in the financial statements. A "material weakness" is defined in the auditing
literature as a particularly serious reportable condition where the internal
control does not reduce to a relatively low level the risk that misstatements
caused by error or fraud may occur in amounts that would be material in
relation to the financial statements and would not be detected within a timely
period by employees in the normal course of performing their assigned
functions.

There were no material changes in our internal controls over financial
reporting during the quarter ended June 30, 2006, that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

Consistent with Section 10A(I)(2) of the Securities Exchange Act of 1934, as
added by Section 202 of the Sarbanes-Oxley Act of 2003, we are responsible for
listing the non-audit services approved by our Chief Executive Officer to be
performed by Mantyla McReynolds LLC, our independent auditor. Non-audit
services are defined as services other than those provided in connection with
an audit or a review of our financial statements.

Limitations on the Effectiveness of Controls.

Our management does not expect that our disclosure controls or our internal
controls will prevent all error and all fraud. A control system can provide
only reasonable, not absolute, assurance that the objectives of the control
system are met. Further, the design of a control system must reflect the fact
that there are resource constraints, and the benefits of controls must be
considered relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that
all control issues and instances of fraud, if any, within our Company have
been detected. These inherent limitations include the realities that judgments
in decision-making can be faulty, and that breakdowns can occur because of
simple error or mistake. Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more people or by
management override of the control. Because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud may occur
and not be detected.

Part II Other Information

Item 1. Legal Proceedings.

None; not applicable.

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

In June, 2006, our Board of Directors approved to accept a cash advance in the
amount of $150,000 from a shareholder, and the Company desires to treat this
cash advance as an additional purchase of shares of the Company's "restricted
securities" (common stock) at a price of $0.64 per share for 234,375 shares.
There were no registration rights afforded to the investor. The proceeds from
the sale of this common stock have been used for general and administrative
expenses.

We also issued 50,000 shares of our "restricted securities" (common stock) for
services rendered and to be rendered for our benefit.

The following stock options were exercised on July 11, 2006, and July 19,
2006, respectively, to acquire "restricted securities" (common stock):

Robert Heitel               7/11/2006             24,109 shares
Monisha Singh               7/19/2006             14,000 shares

We issued these securities to persons who were either "accredited investors,"
or "sophisticated investors" who, by reason of education, business acumen,
experience or other factors, were fully capable of evaluating the risks and
merits of an investment in our Company; and each had prior access to all
material information about us. We believe that the offer and sale of these
securities were exempt from the registration requirements of the Securities
Act, pursuant to Sections 4(2) and 4(6) thereof, and Rule 506 of Regulation D
of the Securities and Exchange Commission and from various similar state
exemptions.

Item 3. Defaults Upon Senior Securities.

None; not applicable.

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

None; not applicable.

Item 5. Other Information.

None; not applicable.

Item 6. Exhibits.

Exhibits:

31.1 302 Certification of Ming S. Liu

31.2 302 Certification of Peter Sheu

32 906 Certification

SIGNATURES

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

eGene, Inc.


Dated: August 14, 2006   By:  /s/ Ming S. Liu
                                   Ming S. Liu
                                   Chairman of the Board, Chief Executive
                                    Officer, and Executive Vice President



Dated: August 14, 2006   By:  /s/ Peter Sheu
                                   Peter Sheu
                                   Chief Financial Officer