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 ended March 31, 2007 [  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)OF THE EXCHANGE ACT For the transition period from ____________ to____________ Commission File No. 000-32393 eGene, Inc. (Exact name of small business issuer as specified in its charter)   Nevada87-0645507(State or Other Jurisdiction of(I.R.S. Employer Identification No.)incorporation or organization)  17841 Fitch Irvine, California 92614 (Address of Principal Executive Offices)  (949) 250-8686 (Issuers Telephone Number)  N/A (Former name, former address and former fiscal year, if changed since last report)  Check whether the Issuer (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 Issuer 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 Issuer is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS  Not applicable.  Check whether the Issuer 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.   1   Not applicable.  APPLICABLE ONLY TO CORPORATE ISSUERS  Indicate the number of shares outstanding of each of the Issuers classes of common equity, as of the latest practicable date.  The number of our outstanding shares of common stock as of May 11, 2007, was 19,471,539 (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 our wholly-owned subsidiary, then there will be 19,785,835 outstanding shares.  Transitional Small Business Disclosure Format (Check one): Yes [  ] No [X]   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.  2   eGene, Inc. CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)  As of March 31, 2007  ASSETSCurrent AssetsCash and Cash Equivalents$101,845Accounts Receivable, net of allowance584,900Prepaid Expense58,483Inventory704,395Total Current Assets1,449,623Fixed AssetsComputer Equipment62,555Equipment and Machinery55,073Furniture and Fixtures28,837Injection Molds287,347Less Accumulated Depreciation(191,274)Total Fixed Assets242,538Other AssetsDeferred Patent Costs, Net of Amortization377,643Other Deferred Cost, Net of Amortization3,250Deposits101,182Total Other Assets482,075TOTAL ASSETS$2,174,236LIABILITIES & STOCKHOLDERS EQUITYLiabilitiesCurrent LiabilitiesAccounts Payable$407,314Accrued Payroll and Related Payroll Taxes176,121Accrued Vacation Payable49,341Warranty Accrual82,448Short Term Loan Payable330,000Other Current Liabilities20,908Current Portion of Settlement Payable119,096Total Current Liabilities1,185,228Settlement Payable - Long Term34,772Total Liabilities1,220,000Stockholders EquityPreferred Stock - 10,000,000 shares authorized; having a par value of $.001; -0- shares issued and outstanding-Common Stock - 50,000,000 shares authorized; having a par value of $.001; 18,595,835 shares issued and outstanding18,596Additional Paid in Capital6,490,470Accumulated Deficit(5,554,830)Total Stockholders Equity954,236TOTAL LIABILITIES AND STOCKHOLDERS EQUITY$2,174,236 See accompanying notes to consolidated financial statements  3    eGene, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATION (unaudited)    Three Months EndedThree Months Ended3/31/20073/31/2006Revenues$550,687$507,211Cost of Goods Sold227,416181,483Gross Profit323,271325,728ExpensesAccounting & Audit15,40822,152Amortization & Depreciation5,55021,939General Office Expenses4,7084,106Insurance17,76011,260Legal Expenses6,83717,330Marketing & Sales Expenses68,23753,560Office Supplies & Equipment2,5404,090Postage and Delivery8972,013Professional Fees3,60739,981Rent  Building37,70923,087R & D, Manufacturing and Production8,62318,722Salaries, Wages & Taxes387,004269,057Telephone & Utilities2,3353,603Total Operating Expenses561,215490,900Net Loss from Operations(237,944)(165,172)Net Other (Expense) Income(9,173)701Loss Before Income Taxes(247,117)(164,471)Current Year Provision for Income Taxes--Net Loss$(247,117)$(164,471)Basic and Diluted Loss Per Share$(0.01)$(0.01)Weighted Average Shares Outstanding18,587,91818,117,517  See accompanying notes to the condensed consolidated financial statements.      4    eGene, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)  Three Months EndedThree Months Ended3/31/20073/31/2006Cash Flows From Operating ActivitiesNet Loss$(247,117)$(164,471)Adjustments to reconcile net loss to net cash used in operating activities:Amortization1,3681,534Depreciation23,36420,405Stock Based Compensation170,99255,500Securities issued for services-22,500Decrease (Increase) in current assets(31,560)265,215Increase in current liabilities83,0474,470Decrease in long-term liabilities(19,849)-Increase in Deposits(69,439)-Net cash provided (used) by operating activities(89,194)205,153Cash Flows from Investing ActivitiesPurchases of fixed assets(10,425)(13,587)Purchases of other assets(16,643)(16,242)Net cash used by investing activities(27,068)(29,829)Cash Flows from FinancingProceeds from capital stock issued8,500-Net Increase (Decrease) in cash(107,762)175,323Cash at beginning of period209,607126,495Cash at end of period$101,845$301,819Supplemental disclosure of cash flow informationInterest paid$11,717$-Income taxes paid$-$-  See accompanying notes to the condensed consolidated financial statements.   5    eGene, Inc. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2007 (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 three months ended March 31, 2007, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2007. 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, 2006.  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.  Reclassifications  Certain amounts have been reclassified in the prior year's financial statements to conform to the current year's presentation.  2. UNREGISTERED SALES OF EQUITY SECURITIES  The following stock option was exercised on 2/26/2007. David Senitzer              2/26/2007             12,500 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.  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 months ended  6   March 31, 2007, and 2006 the Companys results of operations reflected compensation expenses for 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 $170,992 and $55,500 for the three months ended March 31, 2007, and 2006, respectively.  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 months ended March 31, 2007, and 2006, using the Black-Scholes option-pricing model:  20072006Expected life (years)4.99.8Interest rate4.9%4.7%Volatility148%266%Dividend yield0%0%  4. INVENTORIES  Inventories are stated at the lower of cost or market. Inventories at March 31, 2007, consisted of the following:  March 31, 2007Demo units$114,402Finished goods219,043Raw materials370,950Total$704,395  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 March 31, 2007, we purchased parts from a manufacturing company, whose ownership includes one of our directors and shareholders. The total purchases were $91,956. The total balance owed to this party as of March 31, 2007 was $92,383.  During the three months ended March 31, 2007, we received $30,449 in parts sales from a manufacturing company, whose ownership includes one of our directors and shareholders.  The partys account receivable balance as of March 31, 2007 was $30,449.  7. SUBSEQUENT EVENTS  The following stock option was exercised on 4/10/2007. Varoujan Amirkhanian                4/10/2007            450,000 shares   7   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.  On April 6, 2007, our Board of Directors adopted, ratified and approved that all unvested outstanding options were deemed to be vested effective immediately.  On April 12, 2007, a Source Code License Agreement was executed between the Company and SciBridge Software. SciBridge Software is the owner of the source code for the BioCalculator Software consisting of BioCalculator specific components (BioCalculator Components) and the core components (Core Components) . This software is currently used by the Company to perform instrument control, data acquisition and data analysis. Subject to the terms and conditions of this Source Code License Agreement, SciBridge Software granted to the Company an exclusive , worldwide , perpetual, irrevocable, fully-paid up, royalty-free license to the source code of the BioCalculator Components and a non- exclusive , worldwide , perpetual , irrevocable, fully-paid up, royalty-free license to the source code of the Core Components. In consideration of the license granted, the Company will pay SciBridge Software $750,000.  On April 12, 2007, an Agreement and Plan of Merger was executed and delivered between the Company, Electra Merger Sub, Inc., a Nevada corporation and wholly owned subsidiary of Qiagen North American Holdings, Inc., a California corporation (Qiagen), and Qiagen, pursuant to which Merger Sub will merge with and into the Company, the Company shall continue as the surviving corporation and a wholly-owned subsidiary of Qiagen and the separate corporate existence of Merger Sub shall cease. Additional agreements and documents reviewed and adopted by the Companys Board of Directors included, but were not limited to: separate Voting Agreements for members of management and others; the Employment Agreements and Non-Competition Agreements with Ming S. Liu and Varoujan Amirkhanian, directors and executive officers of the Company; the Employment Agreement and Non-Solicitation Agreement with Peter Sheu, the Companys CFO; the Founders Certificate requiring the signatures of Ming S. Liu and Varoujan Amirkhanian; the Option Termination Agreement to be signed by holders of all outstanding options to acquire common stock of the Company; the Company Disclosure Letter required by Section 2 of the Merger Agreement; and the proposed Press Release regarding the Merger.  The following warrants were exercised on 4/30/2007, 5/04/2007 and 5/09/2007: Qiagen North American Holdings, Inc.:  4/30/2007            340,000 shares Martiqs Carolina Fund LP:                      5/04/2007            160,000 shares Qiagen North American Holdings, Inc.:  5/09/2007            240,000 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.  8   Item 2. Managements Discussion and Analysis or Plan of Operation.  This Managements Discussion and Analysis of Financial Condition and Results of Operations as of March 31, 2007, and for the three month periods ended March 31, 2007, and 2006, should be read in conjunction with our financial statements included in our 10-KSB Annual Report for the year ended December 31, 2006, that was filed with the Securities and Exchange Commission on April 17, 2007 (the 2006 10-KSB Annual Report).  Forward Looking Statements.  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  9   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 2006 Annual Report on Form 10-KSB with the Securities and Exchange Commission. For a description of our critical accounting policies, please refer to our 2006 Annual Report on Form 10-KSB.  First Quarter Overview  The net loss for the quarter ended March 31, 2007, was $247,117, compared to the previous years quarterly loss of $164,471. During the first quarter of 2007, our sales increased $43,476 or 9%, from sales of $507,211 in the first quarter of 2006. This limited increase in our quarterly sales reflects the diluted operational effort due to the Qiagen merger due diligence process.  In this quarter, we are continuously using our resources for research and development of avian flu virus test with our collaborator. eGene and the Genome Institute of Singapore (GIS) have worked together to develop a rapid, highly sensitive, and cost-effective screening approach for H5N1 avian influenza virus detection. The HDA system, in combination with the GISs single-step RT-PCR, is a simple and sensitive assay for H5N1 avian influenza detection that can detect as few as 10 copies of the viral RNA.  Results of Operations  Revenue  Total sales increased for the three months ended March 31, 2007, as compared to the same period in 2006. Our sales increased $43,476, or 9% from sales of $507,211 in the first quarter of 2006. This limited increase in our quarterly sales reflects the diluted operational effort due to the Qiagen merger due diligence process.  Three Months Ended March 31,  2007        2006      $change     %change 2006  Total Revenues         $550,687  $507,211    $43,476         9%  Cost of Sales  Cost of sales as a percentage of sales was 41% in the first quarter of 2007, compared to 36% in the first quarter of 2006, and gross profit margin was 59% in the first quarter of 2007, as compared to 64% in the first quarter of 2006.  Expenses  Total expenses for the quarter ended March 31, 2007, were $561,215, which was $70,315 higher as compared to the same period in 2006. The major expense increases were $173,447 for Salary, Wages & Taxes, and $14,677 for Marketing and Sales Expenses.   10   We expect to devote additional expense resources to substantially strengthening and broadening our marketing and sales infrastructure, and for other general corporate activities.  Liquidity and Capital Resources  Our cash and cash equivalents were $101,845 on March 31, 2007, compared to $301,819 on March 31, 2006. We have financed our operations primarily through equity sales and product sales.  Related Transactions  During the three months ended March 31, 2007, we purchased parts from a manufacturing company, whose ownership includes one of our directors and shareholders. The total purchases were $91,956. The total balance owed to this party as of March 31, 2007 was $92,383.  During the three months ended March 31, 2007, we received $30,449 in parts sales from a manufacturing company, whose ownership includes one of our directors and shareholders.  The partys account receivable balance as of March 31, 2007 was $30,449.  Cash Flow  Three Months Ended March 31,20072006$changeNet Cash provided (used) by operating activities$(89,194)$205,153$(294,347)Cash Flows from investing activities$(27,068)$(29,829)$2,761Cash Flows From Financing activities$8,500$-$8,500  Operating Activities  During the three months ended March 31, 2007, we used $89,194 of cash for operating activities as compared to $205,153 of cash generated in the same period of 2006.  Investing Activities  Investing activities during the three months ended March 31, 2007, were $10,425 for purchase of fixed assets and $16,643 for additional costs incurred for deferred patent legal fees and website development.  Financing Activities  During the three months ended March 31, 2007, we generated $8,500 in cash from financing activities, reflecting the sale of our common stock in stock option exercise.  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  11   contained in our 2006 10-KSB Annual Report. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.  Off-balance sheet arrangements  We had no off balance sheet arrangements during the quarter ended March 31, 2007.   Item 3(a)T. Controls and Procedures.  Managements annual report on internal control over financial reporting  We have evaluated our disclosure controls and procedures and our internal controls and procedures for financial reporting as of March 31, 2007. 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 controls over financial reporting during the three months ended March 31, 2007, 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 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 control over financial reporting  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 March 31, 2007, 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.  12    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.  Recent Sales of Unregistered Securities  The following stock options or warrants were exercised on February 26, 2007, April 10, 2007, April 30, 2007, May 4, 2007, and May 9, 2007, respectively, to acquire restricted securities (common stock):  David Senitzer2/26/200712,500 sharesVaroujan Armikhanian4/10/2007450,000 sharesQiagen North American Holdings, Inc.4/30/2007340,000 sharesMartiqs Carolina Fund LP5/4/2007160,000 sharesQiagen North American Holdings, Inc.5/9/2007240,000 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.  Use of Proceeds of Registered Securities  None; not applicable.  Purchases of Equity Securities by Us and Affiliated Purchasers None; not applicable.   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.  (a) None; not applicable.  13    (b)Nominating Committee  During the quarterly period ended March 31, 2007, there were no changes in the procedures by which security holders may recommend nominees to the Companys Board of Directors.   Item 6. Exhibits  (a) Exhibits and index of exhibits.  (i)  10.1     Employment Agreement of Dr. Ming S. Liu*  10.2     Employment Agreement of Varoujan Amirkhanian*  10.3     Employment Agreement of Peter Sheu*  10.4     Lease of 17841 Fitch office*  10.5     Lease of Shanghai office*  10.6     Source Code License Agreement*  31.1 Certification of Dr. Ming  S. Liu  31.2     Certification of Peter Sheu  32        906 Certification  99.1      2004 Stock Option Plan  99.2     2006 Stock Option Plan  (ii)  Definitive Information Statement filed with the Securities and Exchange Commission on April 2, 2004, regarding an increase in our authorized capital to include preferred shares and to authorized our Board of Directors to change our name without shareholder approval - Part I*  10-KSB Annual Report for the fiscal year ended December 31, 2005*  10.1     Employment Agreement of Dr. Ming  S. Liu*  10.2     Employment Agreement of Varoujan Amirkhanian*  10.3     Employment Agreement of Peter Sheu*  10-KSB Annual Report for the fiscal year ended December 31, 2004  Part I*  10-SB Registration Statement filed with the SEC on February 26, 2001*  3.1 Articles of Incorporation of CCM-Arizona, dated April 15, 1936*  3.3 (i) Articles of Amendment to Articles of Incorporation dated April 12, 1951, change of authorized allowed and indebtedness*  14    3.3 (ii) Articles of Amendment to Articles of Incorporation dated April 21, 1991, change of authorized    allowed and indebtedness*  3.1 (i) Articles of Incorporation of the Company, dated June 14, 1999*  3.2 By-laws, adopted June 8, 1999, Articles of Merger of CCM-Arizona with and into the Company*  3.3 (iv) Articles of Amendment to Articles of Incorporation dated September 29, 1999, regarding 15 to 1   reverse split *  Definitive 14A Proxy Statement Filed April 2, 2004*  3.1 Amendment to Articles of Incorporation increasing the authorized shares to 60,000,000, divided into 50,000,000 shares of $0.001 par value common stock and 10,000,000 shares of $0.001 par value preferred stock*  10-QSB Quarterly Report for the quarter ended March 31, 2004*  3.1 Amendment to Articles of Incorporation increasing the authorized shares to 60,000,000, divided into 50,000,000 shares of $0.001 par value common stock and 10,000,000 shares of $0.001 par value preferred stock.  See Part II, Item 4*  *           Previously filed and incorporated herein by reference.  15   SIGNATURES  In accordance with the requirements of the Exchange Act, the Registrant has caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.  eGene, Inc..  Date:May 15, 2007By:/s/Ming Sun LiuMing Sun Liu, Chairman, Director, President and CEODate:May 15, 2007By:/s/Peter SheuPeter Sheu, CFO    16