FORM 10-Q

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


(Mark  One)
(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT  OF  1934

For  the  quarterly  period  ended  April  5,  2007

                                       OR

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

For the transition period from              to

Commission file number 0-20022

                           POMEROY IT SOLUTIONS, INC.
             (Exact name of registrant as specified in its charter)

DELAWARE                                               31-1227808
(State or other jurisdiction of                        (IRS Employer
incorporation or organization)                         Identification No.)

                     1020 Petersburg Road, Hebron, KY 41048
                    (Address of principal executive offices)

                                 (859) 586-0600
              (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
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 X    Non-accelerated filer
                            ---                   ---                        ---

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

     YES       NO  X
        -----    -----

The number of shares of common stock outstanding as of May 5, 2007was 12,322,303


<PAGE>
<TABLE>
<CAPTION>
                                   POMEROY IT SOLUTIONS, INC.
                                        TABLE OF CONTENTS

Part I.    Financial Information
<S>                                      <C>                                                <C>
           Item 1.                       Financial Statements:                              Page

                                         Consolidated Balance Sheets as of  April 5,
                                         2007 (Unaudited) and January 5,  2007                 1

                                         Consolidated Statements of Operations for the
                                         Three Months Ended April 5,  2007 and
                                         2006 (Unaudited)                                      3

                                         Consolidated Statements of Comprehensive
                                         Income (Loss) for the Three Months
                                         Ended  April 5,  2007 and  2006 (Unaudited)           4

                                         Consolidated Statements of Cash Flows for
                                         the Three Months Ended  April 5,  2007 and
                                         2006 (Unaudited)                                      5

                                         Notes to Consolidated Financial Statements
                                         (Unaudited)                                           6

           Item 2.                       Management's Discussion and Analysis
                                         of Financial Condition and Results of Operations     11

           Item 3.                       Quantitative and Qualitative Disclosure about
                                         Market Risk                                          16

           Item 4.                       Controls and Procedures                              16

Part II.   Other Information

           Item 1.                       Legal Proceedings                                    17

           Item 1A.                      Risk Factors                                         17

           Item 2.                       Unregistered Sales of Equity Securities and
                                         Use of Proceeds                                      17

           Item 3.                       Defaults Upon Senior Securities                      17

           Item 4.                       Submission of Matters to a Vote of Security
                                         Holders                                              17

           Item 5.                       Other Information                                    18

           Item 6.                       Exhibits                                             18

SIGNATURE                                                                                     19
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                             POMEROY IT SOLUTIONS, INC.
                             CONSOLIDATED BALANCE SHEETS

(in thousands)                                               April 5,    January 5,
                                                               2007         2007
                                                           ------------  -----------
                                                            (Unaudited)
<S>                                                        <C>           <C>
ASSETS

Current Assets:
Cash and cash equivalents                                  $     12,353  $    13,562
Certificates of deposit                                           1,085        1,076

Accounts receivable:
  Trade, less allowance of  $4,526 at April 5, 2007 and
    $4,390 at January 5, 2007                                   139,081      136,055
  Vendor receivables, less allowance of $155 at
     April 5, 2007 and January 5, 2007                            7,008        8,095
  Net investment in leases                                        1,289        1,587
  Other                                                             866        1,016
                                                           ------------  -----------
    Total receivables                                           148,244      146,753
                                                           ------------  -----------

Inventories                                                      16,127       16,274
Other                                                             9,758       10,791
                                                           ------------  -----------
    Total current assets                                        187,567      188,456
                                                           ------------  -----------

Equipment and leasehold improvements:
  Furniture, fixtures and equipment                              23,676       22,540
  Leasehold improvements                                          8,477        8,459
                                                           ------------  -----------
    Total                                                        32,153       30,999

  Less accumulated depreciation                                  19,579       18,406
                                                           ------------  -----------
    Net equipment and leasehold improvements                     12,574       12,593
                                                           ------------  -----------

Net investment in leases, net of current portion                     30           42
Goodwill                                                         98,314       98,314
Intangible assets, net                                            2,472        2,634
Other assets                                                      1,894        3,403
                                                           ------------  -----------
  Total assets                                             $    302,851  $   305,442
                                                           ============  ===========
</TABLE>

                 See notes to consolidated financial statements.


                                        1
<PAGE>
<TABLE>
<CAPTION>
                               POMEROY IT SOLUTIONS, INC.
                               CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)                            April 5,    January 5,
                                                                   2007         2007
                                                               ------------  -----------
                                                                (Unaudited)
<S>                                                            <C>           <C>
LIABILITIES AND EQUITY

Current Liabilities:
Accounts payable                                               $    68,858   $    74,375
Deferred revenue                                                     2,763         2,604
Employee compensation and benefits                                  10,796         8,642
Accrued restructuring and severance charges                          1,246         1,286
Other current liabilities                                           10,413        11,242
                                                               ------------  -----------
    Total current liabilities                                       94,076        98,149
                                                               ------------  -----------

Accrued restructuring and severance charges                          2,012         2,313

Equity:
  Preferred stock,  $.01 par value; authorized 2,000 shares
    (no shares issued or outstanding)                                  -             -
  Common stock, $.01 par value; authorized 20,000 shares
    (13,500 and 13,476 shares issued at April 5, 2007
    and January 5, 2007, respectively)                                 138           137
  Paid-in capital                                                   90,388        89,992
  Accumulated other comprehensive income                               (67)           15
  Retained earnings                                                128,258       126,433
                                                               ------------  -----------
                                                                   218,717       216,577
  Less treasury stock, at cost (1,172 and 1,130 shares at
    April 5, 2007 and January 5, 2007)                              11,954        11,597
                                                               ------------  -----------
    Total equity                                                   206,763       204,980
                                                               ------------  -----------
    Total liabilities and equity                               $   302,851   $   305,442
                                                               ============  ===========
</TABLE>

                 See notes to consolidated financial statements.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)          Three Months Ended
                                           --------------------------
                                             April 5,      April 5,
                                               2007          2006
                                           ------------  ------------
                                            (Unaudited)   (Unaudited)
<S>                                        <C>           <C>

Product and service revenues:
    Product                                $    92,210   $   88,877
    Service                                     55,573       61,815
                                           ------------  ------------
      Total revenues                           147,783      150,692
                                           ------------  ------------

Cost of product and service revenues:
    Product                                     84,067       81,985
    Service                                     40,014       47,669
                                           ------------  ------------
      Total cost of revenues                   124,081      129,654
                                           ------------  ------------

      Gross profit                              23,702       21,038
                                           ------------  ------------

Operating expenses:
    Selling, general and administrative         19,741       21,621
    Depreciation and amortization                1,120        1,334
                                           ------------  ------------
      Total operating expenses                  20,861       22,955
                                           ------------  ------------

Income (loss) from operations                    2,841       (1,917)

    Interest Income                               (310)        (146)
    Interest Expense                               138          455
                                           ------------  ------------
      Interest expense, net                       (172)         309
                                           ------------  ------------

Income (loss) before income tax                  3,013       (2,226)
Income tax (benefit)                             1,188         (807)
                                           ------------  ------------
Net income (loss)                          $     1,825   $   (1,419)
                                           ============  ============

Weighted average shares outstanding:
    Basic                                       12,349       12,615
                                           ============  ============
    Diluted                                     12,604       12,615*
                                           ============  ============

Earnings (loss) per common share:
    Basic                                  $      0.15   $    (0.11)
                                           ============  ============
    Diluted                                $      0.14   $    (0.11)*
                                           ============  ============
</TABLE>

*Dilutive loss per common share for the three months ended April 5, 2006 would
have been anti-dilutive if the number of weighted average shares outstanding
were adjusted to reflect the dilutive effect of  outstanding stock options.

                See notes to consolidated financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                           POMEROY IT SOLUTIONS, INC.
             CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)                                     Three Months Ended
                                               --------------------------
                                                 April 5,      April 5,
                                                   2007          2006
                                               ------------  ------------
                                                (Unaudited)   (Unaudited)
<S>                                            <C>           <C>

Net income (loss)                              $     1,825   $    (1,419)
Other comprehensive income (loss):
    Foreign currency translation adjustment            (82)            -

                                               ------------  ------------
Comprehensive income (loss)                    $     1,743   $    (1,419)
                                               ============  ============
</TABLE>

                 See notes to consolidated financial statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                POMEROY IT SOLUTIONS, INC.
                          CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)                                                     Three Months Ended
                                                               --------------------------
                                                                 April 5,      April 5,
                                                                   2007          2006
                                                               ------------  ------------
                                                                (Unaudited)   (Unaudited)
<S>                                                            <C>           <C>
Cash flows from operating activities:
  Net income (loss)                                            $     1,825   $    (1,419)
  Adjustments to reconcile net income to net cash
    from operating activities:
    Depreciation and amortization                                    1,336         1,334
    Stock option, restricted stock compensation
      and employee purchase plan expense                               242           609
    Restructuring and severance charges                                  -           133
    Bad debt expense                                                   150
    Amortization of unearned income                                    (20)
    Deferred income taxes                                              727           468
    Loss on disposal of fixed assets                                     -             5
  Changes in working capital accounts
    Accounts receivable                                             (1,938)        5,839
    Inventories                                                        147         3,465
    Other current assets                                             1,585        (1,205)
    Net investment in leases                                           330          (373)
    Accounts payable                                                (5,517)          240
    Deferred revenue                                                   160          (284)
    Income tax payable                                                   5           (43)
    Employee compensation and benefits                               2,154         2,167
    Other, net                                                        (946)       (4,014)
                                                               ------------  ------------
  Net operating activities                                             240         6,922
                                                               ------------  ------------
Cash flows from investing activities:
  Capital expenditures                                              (1,155)         (682)
  Purchases of certificates of deposit                                  (9)          (44)
  Payment for covenant not-to-compete                                    -          (285)
  Acquisition of businesses                                              0          (250)
                                                               ------------  ------------
  Net investing activities                                          (1,164)       (1,261)
                                                               ------------  ------------
  Cash flows from financing activities:
                                                                         -        (6,320)
  Proceeds from exercise of stock options                                7            49
  Purchase of treasury stock                                          (357)            -
  Proceeds from issuance of common
    shares for employee stock purchase plan                            146           163
                                                               ------------  ------------
    Net financing activities                                          (204)       (6,108)
                                                               ------------  ------------
Effect of exchange rate changes on cash and cash equivalents           (81)            -
                                                               ------------  ------------
Change in cash and cash equivalents                                 (1,209)         (447)
Cash and cash equivalents:
  Beginning of period                                               13,562           447
                                                               ------------  ------------
  End of period                                                $    12,353   $         -
                                                               ============  ============
</TABLE>

                 See notes to consolidated financial statements.


                                        5
<PAGE>
                           POMEROY IT SOLUTIONS, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)

1.   Basis of Presentation

The  consolidated  financial  statements  have  been prepared in accordance with
accounting  principles  generally  accepted in the United States of America ("US
GAAP")  for interim financial information and with the instructions to Form 10-Q
and  Rule  10-01  of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by US GAAP for complete financial statements.
In  the  opinion  of management, all adjustments (consisting of normal recurring
accruals)  necessary  for  a  fair presentation of the interim periods have been
made.  The  results of operations for the three month period ended April 5, 2007
are  not  necessarily  indicative of the results that may be expected for future
interim  periods  or  for  the  year  ending  January  5,  2008.

2.   Recent Accounting Pronouncements

In  July  2006,  the  Financial  Accounting Standards Board ("FASB") issued FASB
Interpretation  No.  48,  Accounting  for  Uncertainty  in  Income  Taxes,  an
interpretation  of FASB Statement No. 109 ("FIN 48"). Effective January 5, 2007,
we adopted the provisions of Financial Standards Accounting Board Interpretation
FIN  48.  This interpretation clarifies the accounting for uncertainty in income
taxes recognized in an enterprise's financial statements in accordance with SFAS
No.  109  and  prescribes  a recognition threshold of more-likely-than-not to be
sustained  upon  examination.  As  a  result of the implementation of FIN 48, we
recognized  a  $231,000  increase in the liability for unrecognized tax benefits
related to tax positions taken in prior periods. This increase was accounted for
as  an adjustment to retained earnings in accordance with the provisions of this
statement.

The  Company's  policy  is  to  include  interest and penalties related to gross
unrecognized  tax  benefits within our provision for income taxes. As of January
5,  2007,  we  had  accrued  $309,000  for  payment  of  such  interest.

Our total unrecognized tax benefits as of January 5, 2007 (the date of adoption)
totaled  approximately  $1,823,000.  Also,  our  unrecognized  benefits that, if
recognized,  would  affect our effective tax rate totaled approximately $342,000
as  of  January  5,  2007.

The  Company  and  its  subsidiaries  file  income  tax  returns  in various tax
jurisdictions,  including the United States and several U.S. states. The Company
has  substantially  concluded  all  US  Federal and State income tax matters for
years  up  to  and  including  2002.

In  September  2006,  the  FASB  issued SFAS No. 157, "Fair Value Measurements,"
which  defines fair value, establishes a framework for measuring fair value, and
expands  disclosures  about  fair value measurements. The provisions of SFAS No.
157  are  effective  as  of the beginning of the Company's 2008 fiscal year. The
Company  is  currently  evaluating  the  impact  of adopting SFAS No. 157 on its
financial  statements.

3.   Cash and Short-Term Borrowings

A  significant  part  of  Pomeroy's  inventories  are  financed  by  floor  plan
arrangements with third parties. At April 5, 2007, these lines of credit totaled
$78.5  million,  including $75.0 million with GE Commercial Distribution Finance
("GECDF") and $3.5 million with IBM Credit Corporation ("ICC"). Borrowings under
the GECDF floor plan arrangements are made on thirty-day notes. Borrowings under
the  ICC  floor  plan  arrangements  are  made  on  fifteen-day  notes. All such
borrowings  are secured by the related inventory. Financing on substantially all
of  the  arrangements  is  interest  free.  Overall,  the  average rate on these
arrangements is less than 1.0%. The Company classifies amounts outstanding under
the  floor  plan  arrangements  as  accounts  payable.

The  Company  has  a $165.0 million Syndicated Credit Facility Agreement with GE
Commercial  Distribution  Finance. The credit facility has a three-year term and
its  components include a maximum of $75.0 million for inventory financing and a
revolver,  collateralized  primarily  by  accounts  receivable,  of up to $110.0
million.


                                        6
<PAGE>
The  credit  facility also provides a letter of credit facility of $5.0 million.
Interest  on outstanding borrowings under the credit facility is payable monthly
based  on  the  LIBOR rate and a pricing grid. As of April 5, 2007, the adjusted
LIBOR  rate  was  7.57%.  This  credit  facility  expires  June  28,  2007.

The  Company maintains a sweep account with its bank whereby daily cash receipts
are  automatically transferred as payment towards balances outstanding under the
Company's  credit facility. As of April 5, 2007 and January 5, 2007, the Company
had  no  outstanding  balance  under  the  Company's  credit  facility.

Under  the  terms  of  the  credit  facility,  the Company is subject to various
financial  covenants  including  maintenance  of a minimum level of tangible net
worth,  a  minimum  fixed charge coverage ratio, a maximum ratio of total funded
indebtedness  to  EBITDA, and a maximum net loss after tax. As of April 5, 2007,
the  Company  was  in  compliance  with  those  financial  covenants.

The  Company believes that the anticipated cash flow from operations and current
financing  arrangements  will  be  sufficient  to  satisfy the Company's capital
requirements  for  the next twelve months. The Company's credit facility expires
June 28, 2007. The Company intends to negotiate a new credit facility with terms
sufficient for its financing needs and does not anticipate any problems securing
a  new credit facility before June 28, 2007. However if the Company is unable to
negotiate a new credit facility, it could adversely effect the Company's ability
to  operate.

At  April  5,  2007  and  January  5,  2007, the Company had several outstanding
letters  of  credit issued to worker's compensation insurance providers totaling
$1.2  million and $1.4 million, respectively, that have various expiration dates
through  December  2007.  The  outstanding  letters  of credit reduce the amount
available  under  the  credit  facility.

During  first  quarter 2007, the Company did not pay any cash dividends. Pomeroy
has  no plans to pay cash dividends in the foreseeable future and the payment of
such  dividends  are  restricted  under Pomeroy's current credit facility. Under
such  credit  facility,  cash  dividends and stock redemptions are limited to $5
million  annually.

4.   Stock-Based Compensation

During  the three months ended April 5, 2007, the Company awarded 144,603 shares
of  restricted  common  stock, which vest over a 4-year period. Restricted stock
awards  are  valued at the closing market value of the Company's common stock on
the date of the grant, and the total value of the award is recognized as expense
ratably  over  the  vesting  period of the employees receiving the grants. Total
compensation  expense  recognized  in  the  three months ended April 5, 2007 for
vested  shares  was  $116 thousand. During the three months ended April 5, 2006,
the  Company  made  no  restricted  stock awards. As of April 5, 2007, the total
amount  of  unrecognized  compensation  expense  related to nonvested restricted
stock  awards was approximately $2.4 million, which is expected to be recognized
over  a  weighted-average  period  of  approximately  3.0  years.

<TABLE>
<CAPTION>
                                                                             Weighted Average
                                                               Shares         Exercise price
                                                          -----------------  -----------------
<S>                                                       <C>                <C>
     Restricted common stock outstanding January 5, 2006           123,261               10.27
       Granted                                                      60,258                7.81
       Vested                                                            -                   -
       Forfeitures                                                       -                   -
                                                          -----------------
     Restricted common stock outstanding January 5, 2007           183,519   $            9.46
       Granted                                                     144,603                7.44
       Vested                                                            -                   -
       Forfeitures                                                  (6,795)                  -
                                                          -----------------
     Restricted common stock outstanding April 5, 2007             321,327   $            8.57
                                                          =================
</TABLE>

The approximate unamortized stock option compensation as of April 5, 2007, which
will  be  recorded  as expense in future periods, is $328 thousand. The weighted
average  time  over  which  this  expense  will  be


                                        7
<PAGE>
recorded  is  approximately 8.8 months. Total compensation expense recognized in
the  three  months  ended  April  5,  2007  for stock options was $112 thousand.

For  the  three months ended April 5, 2007, the Company recognized approximately
$14  thousand  in  expense  related  to  the stock purchase plan due to it being
compensatory  under  FAS  123R.

5.   Earnings  per  Common  Share

The  following is a reconciliation of the number of shares used in the basic EPS
and  diluted  EPS  computations:

<TABLE>
<CAPTION>
                                            Three Months Ended April 5,
                                  ----------------------------------------------
                                          2007                    2006
                                  ----------------------  ----------------------
                                             Per Share               Per Share
                                   Shares      Amount       Shares     Amount
                                  ---------  -----------  ---------  -----------
<S>                               <C>        <C>          <C>        <C>
     Basic EPS                       12,349  $     0.15     12,615   $    (0.11)
     Effect of dilutive
       stock options                    255       (0.01)         -*           -*
                                  ---------  -----------  ---------  -----------
     Diluted EPS                     12,604  $     0.14     12,615   $    (0.11)
                                  =========  ===========  =========  ===========
</TABLE>

     * Not presented  herein  since  effect  on  loss  per  common  share  is
     anti-dilutive  for  the  three  months  ended  April  5,  2006.

6.   Treasury  Stock

On March 31, 2006, the Board of Directors of the Company authorized a program to
repurchase  up  to  500,000  shares  at  an aggregate price of no more than $5.0
million.  The Company intends to effect such repurchases in compliance with Rule
10b-18  under  the  Securities Exchange Act of 1934. The acquired shares will be
held  in treasury or cancelled. The Company anticipates financing the repurchase
program  out  of  working capital. This stock redemption program was approved to
remain  in place and in full force/effect for a period of 18 months. The Company
purchased  42,200 shares at an average price per share of $8.46 during the first
quarter  ended April 5, 2007 and 362,615 shares at an average price per share of
$7.81  since  the  buy  back  program  inception.


                                        8
<PAGE>
7.   Supplemental  Cash  Flow  Disclosures

Supplemental  disclosures  with  respect  to  cash flow information and non-cash
investing  and  financing  activities  are  as  follows:

<TABLE>
<CAPTION>
     (in thousands)           Three Months Ended April 5,
                             ----------------------------
                                 2007           2006
                             -------------  -------------
<S>                          <C>            <C>
     Interest paid           $          97  $         373
                             =============  =============
     Income taxes paid       $           9  $          89
                             =============  =============
</TABLE>

8.   Litigation

There  are  various  legal actions arising in the normal course of business that
have  been  brought  against the Company. Management believes these matters will
not  have  a  material  adverse  effect  on  the Company's financial position or
results  of  operations.

9.   Restructuring  and  Severance  Charges

The  Company recorded during fiscal 2004 a charge for severance in the amount of
$1.447  million  related to the resignation of David B. Pomeroy II as CEO of the
Company.  Mr.  Pomeroy  will  continue  to serve as Chairman of the Board of the
Company. Mr. Pomeroy will continue to receive severance payments through January
2009.

As  of  April 5, 2007, the restructuring and severance charge accrual, consisted
of  the  following:

<TABLE>
<CAPTION>
(in thousands)                        Severance
                                     -----------
<S>                                  <C>
Accrual balance at January 5, 2007   $      160
Cash payments                               (60)
                                     -----------
Accrual balance at April 5, 2007     $      100
                                     ===========
</TABLE>

Also,  the  Company recorded a restructuring charge liability in connection with
the  ARC  acquisition  to  eliminate  certain duplicative activities and reduced
facility  requirements.  As  a  result, approximately $6.4 million of costs were
recorded  as  part  of the liabilities assumed in the ARC acquisition in October
2004. The restructuring charge consisted of costs of vacating duplicative leased
facilities  of ARC and severance costs associated with exiting activities. These
costs  are  accounted  for  under  EITF  95-3,  "Recognition  of  Liabilities in
Connection  with Purchase Business Combinations." These costs were recognized as
a  liability  assumed  in  the purchase business combination and included in the
allocation  of  the  cost to acquire ARC. Changes to the estimates primarily for
acquired  leases  included  in  the  currently  approved  plans of restructuring
through July 23, 2005 were recorded as an increase or decrease in goodwill, with
any  increases  in  estimates  thereafter  charged  to  operations.


                                        9
<PAGE>
<TABLE>
<CAPTION>
                                          Facility
(in thousands                           consolidation
                                       --------------
<S>                                    <C>
Liability balance at January 5, 2007   $       3,425
                                       --------------
Cash payments                                   (278)
                                       --------------
Liability balance at April 5, 2007     $       3,147
                                       ==============
</TABLE>

Additionally,  as  part  of  the  acquisition  of  ARC, the Company acquired the
remaining  obligations of ARC's existing restructuring plan, which was initially
recorded by ARC in fiscal 2002. The total obligations assumed in connection with
this  restructuring  plan  was  approximately  $2.1  million  at  July 23, 2004.

As  of  April  5, 2007, the balance of the ARC fiscal 2002 accrued restructuring
costs  recorded  consisted  of  the  following:

<TABLE>
<CAPTION>
(in thousands)
Fiscal 2002 Restructuring Charge
                                     Other
                                    charges
                                   ---------
<S>                                <C>
Balance at January 5, 2007               14
Cash payments                            (3)
                                   ---------
Balance at April 5, 2007           $     11
                                   =========
</TABLE>


                                       10
<PAGE>
     ITEM 2-MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS

         Special Cautionary Notice Regarding Forward-Looking Statements
         --------------------------------------------------------------

Certain  of the matters discussed under the caption "Management's Discussion and
Analysis  of  Financial  Condition  and  Results  of Operations" contain certain
forward-looking  statements  regarding  future financial results of the Company.
The words "expect," "estimate," "anticipate," "predict," and similar expressions
are  intended  to  identify  forward-looking  statements.  Such  statements  are
forward-looking  statements  for  purposes of the Securities Act of 1933 and the
Securities  Exchange  Act of 1934, as amended, and as such may involve known and
unknown  risks,  uncertainties  and  other  factors  which  may cause the actual
results,  performance  or achievements of the Company to be materially different
from  future  results,  performance or achievements expressed or implied by such
forward-looking  statements.  Important  factors  that  could  cause  the actual
results,  performance  or  achievements of the Company to differ materially from
the Company's expectations are disclosed in our Annual Report on Form 10-K under
"Item 1A Risk Factors" and in this document including, without limitation, those
statements  made  in  conjunction  with  the  forward-looking  statements  under
"Management's  Discussion  and  Analysis  of  Financial Condition and Results of
Operations".  All written or oral forward-looking statements attributable to the
Company  are  expressly  qualified  in  their  entirety  by  such  factors.


RESULTS  OF  OPERATIONS
The  following  table  sets  forth for the periods presented information derived
from  our  consolidated  statements  of  operations expressed as a percentage of
product  and  service  revenues:


                                       11
<PAGE>
<TABLE>
<CAPTION>
                                              Net Product and Service Revenues
Financial Results                            For the Three Months Ended April 5,
--------------------------------------  ----------------------------------------------
                                                      % of                    % of
                                          2007      Revenues      2006      Revenues
                                        ----------------------------------------------
<S>                                     <C>        <C>         <C>         <C>
Net product and service revenues:
  Product                               $ 92,210        62.4%  $  88,877         59.0%
  Service                                 55,573        37.6%     61,815         41.0%
                                        ----------------------------------------------
  Total revenues                         147,783       100.0%    150,692        100.0%
                                        ----------------------------------------------

Gross profit
  Product                                  8,143         5.5%      6,892          4.6%
  Service                                 15,559        10.5%     14,146          9.4%
                                        ----------------------------------------------
  Total gross profit                      23,702        16.0%     21,038         14.0%
                                        ----------------------------------------------

Gross profit %
  Product %                                  8.8%                    7.8%
  Service %                                 28.0%                   22.9%

Operating expenses:
  Selling, general and administrative     19,741        13.4%     21,621         14.3%
  Depreciation and amortization            1,120         0.8%      1,334          0.9%
                                        ----------------------------------------------
    Total operating expenses              20,861        14.1%     22,955         15.2%
                                        ----------------------------------------------

Income (loss) from operations              2,841         1.9%     (1,917)        -1.3%

Interest income                             (310)       -0.2%       (146)        -0.1%
Interest expense                             138         0.1%        455          0.3%
                                        ----------------------------------------------
Interest expense (income), net              (172)       -0.1%        309          0.2%
                                        ----------------------------------------------

Income (loss) before income tax            3,013         2.0%     (2,226)        -1.5%
Income tax expense (benefit)               1,188         0.8%       (807)        -0.5%

                                        ----------------------------------------------
Net income (loss)                       $  1,825         1.2%  $  (1,419)        -0.9%
                                        ==============================================
</TABLE>


                                       12
<PAGE>
                           POMEROY IT SOLUTIONS, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Total  Net Product and Service Revenues.  Total net product and service revenues
decreased  to  $147.8  million  in  the first quarter of fiscal 2007 from $150.7
million  in  the  first  quarter  of  2006.

Product  sales  increased  $3.3 million to $92.2 million in the first quarter of
2007  from  $88.9  million  in  the first quarter 2006.  The increase in product
sales  is  primarily the result of an increase in sales activity and an increase
in  the  number  of  sales  reps  specializing in product sales. Product margins
increased  to 8.8% in first quarter 2007 compared to 7.8% in first quarter 2006.
The  improvement  in  margin  is  related  to  sales  mix and increased focus on
leveraging  vendor  programs.

Service  revenues  decreased $6.2 million to $55.6 million in first quarter 2007
from  $61.8  million in first quarter 2006.  This decline was primarily due to a
reduction  in IT project deployments and reduced staffing headcount requirements
by  our customers.  Service margins increased to 28.0% in the first quarter 2007
compared  to  22.9%  in  the  first quarter 2006.  The Company continues to take
steps  to  improve  utilization  and  productivity in order to increase margins.

Gross Profit.  Gross profit increased $2.7 million to $23.7 million in the first
quarter  2007  from $21.0 million in the first quarter 2006.  Gross profit, as a
percentage  of  revenue, increased to 16.0% in the first quarter 2007 from 14.0%
in  the  first  quarter 2006.  This increase in gross margin is primarily due to
the  increase  in  both  product  and  service  margins.

Operating  Expenses.  Total  operating  expenses decreased $2.2 million to $20.8
million  in the first quarter 2007 from $23.0 million in the first quarter 2006.
The  decrease  is  primarily  the  result  of  decreases  in payroll and related
expenses  and  professional  fees of $0.6 million.  Expressed as a percentage of
total net product and service revenues, these expenses decreased to 14.1% in the
first  quarter  2007  from  15.2%  for  the  first  quarter  2006.

Income  (Loss)  from Operations.  Income from operations increased $4.7 million,
to  $2.8  million  in  the first quarter 2007 from a loss of $1.9 million in the
first  quarter  of 2006. The Company's operating margin increased to 1.9% in the
first  quarter  2007  as  compared to a negative 1.2% in the first quarter 2006.
This  increase  is  a result of the increase in gross profit and the decrease in
operating  expenses  as  described  above.

Net  Interest  Income (Expense). Net interest income was $0.2 million during the
first  quarter  2007  as  compared  to  expense of $0.3 million during the first
quarter  2006.  This  decrease in net interest expense was a result of decreased
borrowings  under  the  Company's  credit  facility  and an increase in interest
earned  due  to  cash  on  hand.

Income  Taxes.  The  Company's  effective income tax rate was 39.4% in the first
quarter  2007 compared to 36.3% for the first quarter 2006. This fluctuation was
principally  related to the book loss in the first quarter 2006 compared to book
income in the first quarter 2007. Income tax expense was $1.2 million during the
first  quarter  2007  as  compared to a benefit of $0.8 million during the first
quarter  2006.

Net  Income  (Loss).  Net  income increased $3.2 million, to $1.8 million in the
first  quarter  2007 from a $1.4 million net loss in the first quarter 2006. The
increase  was  a  result  of  the  factors  described  above.


                                       13
<PAGE>
                         LIQUIDITY AND CAPITAL RESOURCES

Cash  provided  by  operating  activities  was $0.2 million in the first quarter
2007.  Cash  used  in investing activities was $1.2 million, which included $1.2
million  for  capital  expenditures.  Cash used in financing activities was $0.2
million  which included $0.4 million for the purchase of treasury stock, and was
offset  by  $0.2  million  proceeds  from  the  employee  stock  purchase  plan.

The amount of cash derived from operating activities will vary based on a number
of  business  factors  which  may  change  from time to time, including terms of
available  financing  from  vendors,  downturns in the Company's business and/or
downturns  in  the  businesses  of the Company's customers. However, a growth or
decline  in  services  revenue in conjunction with a change in the proportion of
services revenue to total revenue is an underlying driver of operating cash flow
during  the period of growth because a majority of the Company's service revenue
is  generated  based  upon  the  billings of the Company's technicians. The cash
outlay for these labor/payroll costs is incurred bi-weekly with each pay period.
The invoicing for the service is generated on various billing cycles as dictated
by  the customers, and the respective cash inflow typically follows within 30 to
60  days  of  invoice date, which may be as long as 60 to 120 days from the time
the  services  are performed. This differs from product revenue in that the time
period  between  the  time  that  the  Company  incurs  the cost to purchase the
products  and  collects  the  revenue  from  its  customer is typically shorter,
usually  from  0  to  60  days, and the Company primarily orders inventory for a
particular  customer  rather  than  stocking  large  amounts of inventory. If an
increase  in  service  revenue and in the proportion of service revenue to total
revenue  occurs,  it  may  result  in  a significant decrease in cash flows from
operating  activities  during periods of significant growth or periods of excess
technical  capacity.  In  addition,  certain  services,  primarily  outsourcing
contracts  for  the  Company's  Life  Cycle  Services,  require that the Company
maintain  a  specific  parts  inventory  for  servicing  the  customer; thus, an
increase  or  decrease  in  the  type  of services provided can impact inventory
levels  and  operating  cash  flows.

Cash  flows  provided  by  operating  activities in first quarter 2007 were $0.2
million  as  compared to cash flows used in operating activities of $6.9 million
in the first quarter 2006.  The decrease in cash flows from operating activities
resulted  primarily  from  timing  of  payments on accounts payable and accounts
receivable.   Accounts  payable  decreased  operating cash flow by $5.5 million,
primarily  due  to  timing  of  payments.  Trade,  vendor  and other receivables
decreased  operating  cash  flow  by  $1.9  million  primarily  due to timing of
payments from customers and vendors.  These decreases were offset by an increase
of  other  current  assets  of  $1.6  million.

A  significant  part  of  Pomeroy's  inventories  are  financed  by  floor  plan
arrangements with third parties. At April 5, 2007, these lines of credit totaled
$78.5  million,  including $75.0 million with GE Commercial Distribution Finance
("GECDF") and $3.5 million with IBM Credit Corporation ("ICC"). Borrowings under
the GECDF floor plan arrangements are made on thirty-day notes. Borrowings under
the  ICC  floor  plan  arrangements  are  made  on  fifteen-day  notes. All such
borrowings  are secured by the related inventory. Financing on substantially all
of  the  arrangements  is  interest  free.  Overall,  the  average rate on these
arrangements is less than 1.0%. The Company classifies amounts outstanding under
the  floor  plan  arrangements  as  accounts  payable.

The  Company has a $165 million Syndicated Credit Facility Agreement with GECDF.
The  credit  facility has a three-year term and its components include a maximum
of  $75  million  for  inventory  financing  and  a  revolving  line  of credit,
collateralized primarily by accounts receivable, of up to $110 million; provided
that  the  total  amount  outstanding  at any time under the inventory financing
facility and the revolving line of credit may not exceed $165 million. Under the
agreement,  the  credit  facility  provides  a  letter  of credit facility of $5
million.  Under  the  credit  facility, the interest rate is based on the London
InterBank  Offering  Rate  ("LIBOR") and a pricing grid. As of April 5, 2007 the
adjusted  LIBOR  rate  was  7.57%.  This  credit facility expires June 28, 2007.

At  April  5, 2007 and 2006 the Company did not have a balance outstanding under
the  credit  facility.  At April 5, 2007 the amount available was $55.7 million.
The  credit  facility  is  collateralized  by substantially all of the assets of
Pomeroy,  except  those  assets  that  collateralize  certain  other  financing
arrangements.  Under the terms of the credit facility, the Company is subject to
various  financial  covenants. As of April 5, 2007 the Company was in compliance
with  those  financial  covenants.

The  Company believes that the anticipated cash flow from operations and current
financing  arrangements  will  be  sufficient  to  satisfy the Company's capital
requirements  for  the next twelve months. The Company's credit facility expires
June 28, 2007. The Company intends to negotiate a new credit facility with terms
sufficient for its financing needs and does not anticipate any problems securing
a  new credit facility before June 28, 2007. However if the company is unable to
negotiate a new credit facility, it could adversely affect the Company's ability
to  operate.


                                       14
<PAGE>
On March 31, 2006, the Board of Directors of the Company authorized a program to
repurchase  up  to  500,000  shares,  at an aggregate price of no more than $5.0
million. The Company intends to effect such repurchases, in compliance with Rule
10b-18  under  the Securities Exchange Act of 1934.  The acquired shares will be
held in treasury or cancelled.  The Company anticipates financing the repurchase
program  out  of  working capital. This stock redemption program was approved to
remain in place and in full force/effect for a period of 18 months.  The Company
purchased  42,200 shares at an average price per share of $8.46 during the first
quarter  ended April 5, 2007 and 362,615 shares at an average price per share of
$7.81  since  the  buy  back  program  inception.


                                       15
<PAGE>
ITEM  3-QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK.

The  Company  is  exposed  to  interest  rate  risk primarily through its credit
facility with GECDF. Due to the Company's current debt position, the Company did
not  experience  a material impact from interest rate risk for the first quarter
of  fiscal  2007.

Currently,  the  Company does not have any significant financial investments for
trading  or  other  speculative  purposes  or  to manage interest rate exposure.

ITEM 4-CONTROLS AND PROCEDURES

MANAGEMENT'S EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Our  management, with the participation of our principal executive and principal
financial  officers,  has evaluated the effectiveness of our disclosure controls
and  procedures over financial reporting designed to ensure that the information
required  to  be  disclosed  in our filings under the Securities Exchange Act of
1934  is  recorded,  processed,  summarized and reported within the time periods
specified  in  the  Securities and Exchange Commission's rules and forms, and to
ensure  that  such  information  is  accumulated and communicated to management,
including  our  principal  executive  and  principal  financial  officers,  as
appropriate  to  allow  timely decisions regarding required disclosure. Based on
such  evaluation,  our principal executive and principal financial officers have
concluded  that  such  disclosure  controls and procedures were effective, as of
April  5th, 2007 (the end of the period covered by this Quarterly Report on Form
10-Q).

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There  have  been  no  changes  in our internal control over financial reporting
during  the  period covered by this report that have materially affected, or are
reasonably  likely  to  materially  affect,  our internal control over financial
reporting.


                                       16
<PAGE>
                             PART II - OTHER INFORMATION

ITEM 1-LEGAL PROCEEDINGS

There  are  various  legal actions arising in the normal course of business that
have  been  brought  against the Company. Management believes these matters will
not  have  a  material  adverse  effect  on  the Company's financial position or
results  of  operations.

ITEM 1A-RISK FACTORS
Refer  to  the  risk  factors  included  in Part I (Item 1A-risk factors) in our
annual  report  on  Form  10-K  for  the  fiscal  year ended January 5, 2007 for
explanation.

ITEM 2-UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On March 31, 2006, the Board of Directors of the Company authorized a program to
repurchase  up  to  500,000  shares,  at an aggregate price of no more than $5.0
million.  The Company intends to effect such repurchases in compliance with Rule
10b-18  under  the Securities Exchange Act of 1934.  The acquired shares will be
held in treasury or cancelled.  The Company anticipates financing the repurchase
program  out  of  working capital. This stock redemption program was approved to
remain  in  place  and  in  full  force/effect  for  a  period  of  18  months.

<TABLE>
<CAPTION>
                      Issuer Purchases of Equity Securities

                                                    (c) Total
                                                    number of shares   d) Maximum number
                                      (b) Average   purchased as part  of shares that may yet
                 (a) Total number of  price paid    of publicly        be purchased under the
Period           shares purchased     per share     announced plan     plan
<S>              <C>                  <C>           <C>                <C>
4/6/06 - 5/5/06                    -  $          -                  -                 500,000
5/6/06 - 6/5/06                    -  $          -                  -                 500,000
6/6/06 - 7/5/06               20,000  $       7.17             20,000                 480,000
7/6/06-8/5/06                 11,980  $       7.21             11,980                 468,020
8/6/06-9/5/06                 49,750  $       7.78             49,750                 418,270
9/6/06-10/5/06                90,908  $       7.97             90,908                 327,362
10/6/06-11/5/06                    -  $          -                  -                 327,362
11/6/06-12/5/06               50,399  $       7.42             50,399                 276,963
12/6/06-1/5/07                97,378  $       7.63             97,378                 179,585
1/6/07-2/5/07                 14,000  $       8.00             14,000                 165,585
2/6/07-3/5/07                      -                                -                 165,585
3/6/07-4/5/07                 28,200  $       8.69             28,200                 137,385

                 -------------------                -----------------------------------------
Total                        362,615                          362,615                 137,385
                 ===================                =========================================
</TABLE>

During  the  three  months ended April 5, 2007, the Company did not pay any cash
dividends.  The  Company  has  no plans to pay cash dividends in the foreseeable
future,  and  the  payment  of  such dividends is restricted under the Company's
current  credit  facility.  Under such credit facility, cash dividends and stock
redemptions  are  limited  to  $5  million  annually.

ITEM 3-DEFAULTS UPON SENIOR SECURITIES
None

ITEM 4-SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None


                                       17
<PAGE>
ITEM 5-OTHER INFORMATION
None

ITEM 6-EXHIBITS
(a)     Exhibits

     31.1     Section 302 CEO Certification
     31.2     Section 302 CFO Certification
     32.1     Section 906 CEO Certification
     32.2     Section 906 CFO Certification


                                       18
<PAGE>
                                    SIGNATURE

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

                                    POMEROY IT SOLUTIONS, INC.
                                    --------------------------
                                           (Registrant)

Date: May 15, 2007                   By:  /s/ Kevin G. Gregory
                                    -------------------------------------------
                                      Kevin G. Gregory
                                      Senior Vice President and
                                      Chief Financial Officer