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, 2006

                                       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 incorporation            (IRS Employer
  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, 2006 was
12,620,469.


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


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

                                   Consolidated Balance Sheets as of April 5,
                                   2006 (Unaudited) and January 5, 2006             1

                                   Consolidated Statements of Operations for
                                   the Three Months Ended April 5, 2006 and
                                   2005 (Unaudited)                                 3

                                   Consolidated Statements of Comprehensive
                                   Income for the Three Months Ended April 5,
                                   2006 and 2005 (Unaudited)                        4

                                   Consolidated Statements of Cash Flows for
                                   the Three Months Ended April 5, 2006 and
                                   2005 (Unaudited)                                 5

                                   Notes to Consolidated Financial Statements
                                   (Unaudited)                                      6

            Item 2.                Management's Discussion and Analysis of
                                   Financial Condition and Results of
                                   Operations                                      14

            Item 3.                Quantitative and Qualitative Disclosures
                                   about Market Risk                               19

            Item 4.                Controls and Procedures                         19

Part II.    Other Information

            Item 1.                Legal Proceedings                               21

            Item 1A.               Risk Factors                                    21

            Item 2.                Unregistered Sales of Equity Securities and
                                   Use of Proceeds                                 21

            Item 3.                Defaults Upon Senior Securities                 21

            Item 4.                Submission of Matters to a Vote of Security
                                   Holders                                         21

            Item 5.                Other Information                               21

            Item 6.                Exhibits                                        21

SIGNATURES                                                                         22
</TABLE>


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


(in thousands)                                          April 5,    January 5,
                                                          2006         2006
                                                      ------------  -----------
                                                      (Unaudited)
<S>                                                   <C>           <C>
ASSETS

Current Assets:
Cash and cash equivalents                             $          -  $       447
Certificates of deposit                                      4,712        4,668

Accounts receivable:
  Trade, less allowance of  $4,355 at April 5, 2006
    and January 5, 2006                                    125,826      130,814
  Vendor receivables, less allowance of $100 at
    April 5, 2006 and January 5, 2006                        5,504        4,952
  Net investment in leases                                   2,515        1,998
  Other                                                      1,442        2,894
                                                      ------------  -----------
    Total receivables                                      135,287      140,658
                                                      ------------  -----------

Inventories                                                  9,977       13,665
Other                                                       12,665       11,730
                                                      ------------  -----------
    Total current assets                                   162,641      171,168
                                                      ------------  -----------

Equipment and leasehold improvements:
  Furniture, fixtures and equipment                         33,390       32,655
  Leasehold improvements                                     6,907        6,796
                                                      ------------  -----------
    Total                                                   40,297       39,451

  Less accumulated depreciation                             25,777       24,656
                                                      ------------  -----------
    Net equipment and leasehold improvements                14,520       14,795
                                                      ------------  -----------

Net investment in leases, net of current portion               899          995
Goodwill                                                   101,298      101,048
Intangible assets, net                                       3,136        3,007
Other assets                                                 3,890        4,132
                                                      ------------  -----------
    Total assets                                      $    286,384  $   295,145
                                                      ============  ===========
<FN>
                 See notes to consolidated financial statements.
</TABLE>


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


(in thousands, except per share data)                           April 5,     January 5,
                                                                  2006          2006
                                                              (Unaudited)
                                                              ------------  ------------
<S>                                                           <C>           <C>
LIABILITIES AND EQUITY

Current Liabilities:
Short-term borrowings                                         $     8,984   $    15,304
Accounts payable                                                   46,878        46,638
Deferred revenue                                                    3,160         3,444
Employee compensation and benefits                                 10,206         8,039
Accrued restructuring and severance charges                         5,237         5,791
Other current liabilities                                           8,031        11,443
                                                              ------------  ------------
    Total current liabilities                                      82,496        90,659
                                                              ------------  ------------

Commitments and contingencies

Equity:
  Preferred stock,  $.01 par value; authorized 2,000 shares
    (no shares issued or outstanding)                                   -             -
  Common stock, $.01 par value; authorized 20,000 shares
    (13,430 and 13,400 shares issued at April 5, 2006
    and January 5, 2006, respectively)                                137           135
  Paid-in capital                                                  88,747        89,126
  Unearned compensation                                                 -        (1,198)
  Accumulated other comprehensive income                               24            24
  Retained earnings                                               124,102       125,521
                                                              ------------  ------------
                                                                  213,010       213,608
  Less treasury stock, at cost ( 810 shares at
    April 5, 2006 and January 5, 2006)                              9,122         9,122
                                                              ------------  ------------
      Total equity                                                203,888       204,486
                                                              ------------  ------------
      Total liabilities and equity                            $   286,384   $   295,145
                                                              ============  ============
<FN>
                     See notes to consolidated financial statements.
</TABLE>


                                        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,
                                            2006          2005
                                        ------------  ------------
                                         (Unaudited)   (Unaudited)
<S>                                     <C>           <C>
Product and service revenues:
  Product                               $    88,877   $    111,243
  Service                                    61,815         54,589
                                        ------------  ------------
    Total revenues                          150,692        165,832
                                        ------------  ------------

Cost of product and service revenues:
  Product                                    81,985        102,424
  Service                                    47,669         40,592
                                        ------------  ------------
    Total cost of revenues                  129,654        143,016
                                        ------------  ------------

    Gross profit                             21,038         22,816
                                        ------------  ------------

Operating expenses:
  Selling, general and administrative        20,561         19,108
  Rent expense                                  921            936
  Depreciation                                1,178          1,201
  Amortization                                  156            268
  Restructuring and severance charges           133            132
  Other                                           6              1
                                        ------------  ------------
    Total operating expenses                 22,955         21,646
                                        ------------  ------------

Income (loss) from operations                (1,917)         1,170

Interest expense, net                           309            221
                                        ------------  ------------

Income (loss) before income tax              (2,226)           949
Income tax expense (benefit)                   (807)           384
                                        ------------  ------------
Net income (loss)                       $    (1,419)  $        565
                                        ============  ============

Weighted average shares outstanding:
  Basic                                      12,615         12,469
                                        ============  ============
  Diluted (1)                                12,615         12,717
                                        ============  ============

Earnings (loss) per common share:
  Basic                                 $     (0.11)  $       0.05
                                        ============  ============
  Diluted (1)                           $     (0.11)  $       0.04
                                        ============  ============
<FN>
(1)  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.
</TABLE>


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

(in thousands)                                              Three Months Ended
                                                        --------------------------
                                                          April 5,      April 5,
                                                            2006          2005
                                                        -----------  -------------
                                                        (Unaudited)   (Unaudited)
<S>                                                     <C>           <C>
Net income (loss)                                       $    (1,419)  $        565
Other comprehensive income:
  Foreign currency translation adjustment, net of tax             -            102

                                                        -----------  -------------
Comprehensive income (loss)                             $    (1,419)  $        667
                                                        ===========  =============
<FN>
                  See notes to consolidated financial statements.
</TABLE>


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

(in thousands)                                                    Three Months Ended
                                                               ------------  ----------
                                                                 April 5,     April 5,
                                                                   2006         2005
                                                               ------------  ----------
                                                               (Unaudited)  (Unaudited)
<S>                                                            <C>           <C>
Cash flows from operating activities:
  Net income (loss)                                            $    (1,419)  $     565
  Adjustments to reconcile net income (loss) to net cash
    from operating activities:
    Depreciation                                                     1,178       1,201
    Amortization                                                       156         268
    Stock option and restricted stock compensation                     609           -
    Restructuring and severance charges                                133         132
    Deferred income taxes                                              468       2,126
    Loss on disposal of fixed assets                                     5           1
  Changes in working capital accounts, net of
    effects of acquisitions:
    Accounts receivable                                              5,839      21,740
    Inventories                                                      3,465         350
    Other current assets                                            (1,205)      1,804
    Net investment in leases                                          (373)        226
    Accounts payable                                                   240     (15,718)
    Deferred revenue                                                  (284)       (460)
    Income tax payable                                                 (43)     (2,213)
    Employee compensation and benefits                               2,167      (3,103)
    Other, net                                                      (4,014)     (1,986)
                                                               ------------  ----------
  Net operating activities                                           6,922       4,933
                                                               ------------  ----------
Cash flows from investing activities:
  Capital expenditures                                                (682)       (325)
  Proceeds from sale of fixed assets                                     -           6
  Purchases of certificates of deposit                                 (44)        (15)
  Payment for covenant not-to-compete                                 (285)          -
  Acquisition of businesses                                           (250)       (547)
                                                               ------------  ----------
  Net investing activities                                          (1,261)       (881)
                                                               ------------  ----------
Cash flows from financing activities:
  Proceeds from (repayments of) short-term borrowings               (6,320)    (18,569)
  Payments of acquisition notes payable                                  -        (662)
  Proceeds from exercise of stock options
    and related tax benefit                                             49       1,999
  Proceeds from employee stock purchase plan                           163           -
                                                               ------------  ----------
     Net financing activities                                       (6,108)    (17,232)
                                                               ------------  ----------
Effect of exchange rate changes on cash and cash equivalents             -         102
                                                               ------------  ----------
Change in cash and cash equivalents                                   (447)    (13,078)
Cash and cash equivalents:
  Beginning of period                                                  447      13,108
                                                               ------------  ----------
  End of period                                                $         -   $      30
                                                               ============  ==========
<FN>
                    See notes to consolidated financial statements.
</TABLE>


                                        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. Except as disclosed herein, there has been
     no  material  change  in  the  information  disclosed  in  the  notes  to
     consolidated  financial  statements included in the Company's Annual Report
     on  Form  10-K  for  the  year  ended  January  5,  2006. 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, 2006
     are  not  necessarily  indicative  of  the results that may be expected for
     future interim periods or for the year ending January 5, 2007.

2.   Recent  Accounting  Pronouncements

     There  are  currently  no accounting standards which will be adopted by the
     Company  in  a  future  period  and  for  which the potential effect on the
     Company's  financial  position  and results of operations is expected to be
     material.

3.   Cash  and  Short-Term  Borrowings

     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.  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. 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, 2006, the
     Company  had  an outstanding balance under the Company's credit facility of
     $9.0  million,  including $1.4 million of overdrafts on the Company's books
     in  accounts at a participant bank on the credit facility. As of January 5,
     2006,  the  Company  had  an outstanding balance under the Company's credit
     facility  of  $15.3  million.

     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,  2006,  Pomeroy  was  not  in  compliance  with certain financial
     covenants  of  its credit facility. The company is currently in the process
     of  obtaining  a  waiver  of  such  noncompliance  from  its  lenders.

4.   Stock-Based  Compensation

     Prior  to  January  6,  2006,  the  Company  accounted  for  stock-based
     compensation  using  the  intrinsic  value  method prescribed in Accounting
     Principles  Board  Opinion No. 25 (APB 25), "Accounting for Stock Issued to
     Employees".  Accordingly,  compensation cost for stock options was measured
     as  the  excess, if any, of the quoted market price of the Company's common
     stock  at the date of grant over the amount an employee must pay to acquire
     the  stock.  The  Company  previously  adopted  SFAS No. 123 for disclosure
     purposes  and  for  non-employee  stock  options.

     The  Company adopted Statement of Financial Accounting Standards No. 123(R)
     (SFAS  123R)  effective  January 6, 2006. SFAS 123R requires the Company to
     measure  the cost of employee services received in exchange for an award of
     equity instruments and recognize this cost over the period during which the
     employee  is required to provide the services. The Company has adopted SFAS
     123R  using  the  modified  prospective  method and, therefore, results for
     periods  prior  to  January  6,  2006  have  not  been  restated.


                                        6
<PAGE>
     The  table  below  illustrates the effect of stock compensations expense on
     the  periods  presented as if the Company had always applied the fair value
     method:

<TABLE>
<CAPTION>
                                                               Three months Ended
                                                                    April 5,
(In thousands, except per share data)                          2006         2005
                                                            -----------  -----------
<S>                                                         <C>          <C>
Income (loss) before stock compensation expense             $   (1,064)  $      565
Stock compensation expense included in net income (loss)          (355)           -

                                                            -----------  -----------
Net income (loss)                                           $   (1,419)         565
                                                            ===========
Pro forma stock compensation expense                                         (1,092)

                                                                         -----------
Pro forma net loss                                                       $     (527)
                                                                         ===========

Basic earnings (loss) per common share:
  Income (loss) before stock compensation expense           $    (0.08)  $     0.05
  Stock compensation expense included in net income (loss)       (0.03)           -

                                                            -----------  -----------
  Net income (loss)                                         $    (0.11)        0.05
                                                            ===========

  Pro forma stock compensation expense                                        (0.09)

                                                                         -----------
  Pro forma net loss                                                     $    (0.04)
                                                                         ===========

Diluted earnings (loss) per common share:
  Income (loss) before stock compensation expense           $    (0.08)  $     0.04
  Stock compensation expense included in net income (loss)       (0.03)           -

                                                            -----------  -----------
  Net income (loss)                                         $    (0.11)        0.04
                                                            ===========
Pro forma stock compensation expense                                          (0.08)

                                                                         -----------
Pro forma net loss                                                       $    (0.04)
                                                                         ===========
</TABLE>

No stock-based compensation was capitalized into inventory or fixed assets.  The
approximate  unvested  stock  option  expense as of April 5, 2006, which will be
recorded  as  expense  in  future periods, is $1,051.  The weighted average time
over which this expense will be recorded is approximately 28.5 months.   Expense
for  the quarter ended April 5, 2006 and estimated expense for future periods is
net  of  the  effect  of  estimated  forfeitures  of  18.5%.

The  Company  estimates the fair value of each option on the date of grant using
the  Black-Scholes option pricing model.  The Company has elected the simplified
method  to  calculate  the expected life of stock awards as permitted under SFAS
123R.  This method calculates an expected term based on the midpoint between the
vesting  date  and  the  end  of  the  contractual term of the stock award.  The
weighted-average assumptions listed below were used for grants made in the three
months  ended  April  5,  2006  and  2005:

<TABLE>
<CAPTION>
                               Three months ended   Three months ended
                                  April 5, 2006        April 5, 2005
<S>                            <C>                  <C>
     Expected volatility              52.63%               38.25%
     Risk-free interest rate           4.72%                3.75%
     Expected life (years)             2.42                 3.95
     Dividend yield                    0.00%                0.00%
</TABLE>

Information  related to all stock options for the quarter ended April 5, 2006 is
shown  in  the  table  below:


                                        7
<PAGE>
<TABLE>
<CAPTION>
                                                                  Weighted-Average
                                            Weighted-Average   Remaining Contractual
                                  Shares     Exercise Price           Term
<S>                             <C>         <C>                <C>
          Outstanding at
          January 5, 2006       2,926,503   $           13.31
          Granted                 233,000   $            9.40
          Forfeitures            (442,673)  $           13.94
          Exercised                (6,667)  $            7.07
                                ----------
          Outstanding at April
          5, 2006               2,710,163   $           12.89             2.85 years
                                ==========

          Exercisable at April
          5, 2006               2,321,256   $           13.07             2.65 years
                                ==========
</TABLE>

Information related to unvested stock options for the quarter ended April 5,
2006 is shown in the table below:

<TABLE>
<CAPTION>
                                            Weighted-Average      Weighted-Average
                                               Grant-Date      Remaining Contractual
                                  Shares       Fair Value             Term
<S>                              <C>        <C>                <C>
          Outstanding
          unvested stock
          options at January 5,
          2006                    416,794   $            4.63

          Granted                 233,000   $            3.42
          Vested                 (218,358)  $            3.70
          Forfeitures             (42,529)  $            4.73
                                ----------

          Outstanding
          unvested stock
          options at April 5,
          2006                    388,907   $            4.43          4.02 years
                                ==========
</TABLE>

     The  Company  did  not  issue  any  restricted  shares in the quarter ended
     April  5,  2006.  Such  shares  are valued based on the quoted price of the
     Company's  stock  on the date of grant and recorded as compensation expense
     over  the  related  vesting  period,  which  is  generally  four  years.
     Compensation cost, net of an estimated forfeiture rate of 18.5%, related to
     previously-issued  restricted  shares totaled $52 thousand during the three
     months  ended  April  5,  2006.  No similar expense was recorded during the
     three  months  ended April 5, 2005. In connection with the adoption of SFAS
     123R,  unearned  compensation  aggregating  $1,146  associated  with
     previously-issued  restricted  shares  has  been  reclassified  to  paid-in
     capital in the accompanying consolidated balance sheet as of April 5, 2006.

5.   Earnings  per  Common  Share

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

     (in  thousands,  except  per  share  data)


                                        8
<PAGE>
<TABLE>
<CAPTION>
                                   Three Months Ended April 5,
                         ------------------------------------------------
                                  2006                     2005
                         -----------------------  -----------------------
                                     Per Share                Per Share
                           Shares      Amount       Shares      Amount
                         ----------  -----------  ----------  -----------
<S>                      <C>         <C>          <C>         <C>
     Basic EPS              12,615   $    (0.11)      12,469  $     0.05
     Effect of dilutive
       stock options            -*            -*         248       (0.01)
                         ---------   -----------  ----------  -----------
     Diluted EPS            12,615   $    (0.11)      12,717  $     0.04
                         =========   ===========  ==========  ===========
</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, but no more than $5.0 million.
     The  Company intends to effect such repurchases, if any, 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. No such shares have been
     repurchased as of April 5, 2006. This stock redemption program was approved
     to  remain  in  place  and  in full force/effect for a period of 18 months.


7.   Goodwill  and  Long-Lived  Assets

     Intangible  assets  with  definite lives are amortized over their estimated
     useful  lives.  The  following  table  provides  a summary of the Company's
     intangible  assets  with  definite lives as of April 5, 2006 and January 5,
     2006:

<TABLE>
<CAPTION>
(in thousands)
                                 Gross                      Net      Gross                       Net
                               Carrying    Accumulated   Carrying   Carrying   Accumulated    Carrying
                                Amount    Amortization    Amount     Amount    Amortization    Amount
                               4/5/2006     4/5/2006     4/5/2006   1/5/2006     1/5/2006     1/5/2006
                               -----------------------------------  ---------  -------------  ---------
<S>                            <C>        <C>            <C>        <C>        <C>            <C>
Amortized intangible assets:
  Covenants not-to-compete     $   2,309  $       1,875  $     434  $   2,024  $       1,859  $     165
  Customer lists                   2,877          1,154      1,723      2,877          1,061      1,816
  Other intangibles                1,268            289        979      1,268            242      1,026
                               ---------  -------------  ---------  ---------  -------------  ---------
  Total amortized intangibles  $   6,454  $       3,318  $   3,136  $   6,169  $       3,162  $   3,007
                               =========  =============  =========  =========  =============  =========
</TABLE>

     Amortized intangible assets are being amortized over periods ranging from 1
     to  15 years for covenants not-to-compete, 7 to 15 years for customer lists
     and  7  years  for  other intangibles. For the quarter ended April 5, 2006,
     amortization  expense  related  to intangible assets was $156 thousand. For
     the quarter ended April 5, 2005, amortization expense related to intangible
     assets  was  $268  thousand.

     Projected  future  amortization  expense  related to intangible assets with
     definite  lives  is  as  follows:


                                        9
<PAGE>
<TABLE>
<CAPTION>
(in thousands)
Fiscal Years:
<S>                  <C>
     2006            $     518
     2007                  674
     2008                  651
     2009                  587
     2010                  408
     2011+                 298
                     ---------
              Total  $   3,136
                     =========
</TABLE>

     The  change  of  the  net  carrying amount of goodwill for the three months
     ended  April  5,  2006  is  as  follows:

<TABLE>
<CAPTION>
<S>                                           <C>
     (in thousands)
     Net carrying amount as of 1/6/06         $ 101,048
     Goodwill recorded during first quarter         250
                                              ---------
     Net carrying amount as of 4/5/06         $ 101,298
                                              =========
</TABLE>

     As  part  of  its  goodwill impairment testing, the Company reviews various
     factors, such as the market price of the Company's common stock, discounted
     cash  flows  from projected earnings and values for comparable companies to
     determine  whether  impairment  exists.  The  Company  has  worked  with  a
     valuation  firm  to  assess goodwill impairment and has determined there is
     impairment.  The  second  step  of  the goodwill impairment test is not yet
     complete.  The Company recognized a charge of $16.0 million as a reasonable
     estimate  of  the  impairment loss in its fiscal 2005 financial statements.
     The  actual  impairment  loss,  once  determined by the Company, may differ
     significantly  from  this  estimate.  Any  adjustment  to  this  estimated
     impairment  loss  based  on  the  completion  of  the  measurement  of  the
     impairment  loss will be recognized in the subsequent reporting period as a
     change  in  estimate.

     During the first quarter of fiscal 2006, the Company recorded $250 thousand
     of  goodwill  which  was  associated  with a payment related to an earn-out
     agreement  related  to  a  prior  acquisition.

8.   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,
                                               -------------------------------
                                                   2006             2005
                                               -------------  ----------------
<S>                                            <C>            <C>
          Interest paid                        $         373  $           286
                                               =============  ================
          Income taxes paid                    $          89  $           527
                                               =============  ================
          Adjustment to purchase price
            of acquired assets and goodwill    $           -  $          (558)
                                               =============  ================

          Business combinations accounted for
          as purchases:
            Assets acquired                    $           -  $             -
            Liabilities (assumed)/paid                   250              547
                                               -------------  ----------------
            Net cash paid                      $         250  $           547
                                               =============  ================
</TABLE>

9.   Litigation


                                       10
<PAGE>
     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.

10.  Segment  Information

     Effective  in  the  fourth  quarter  of  2005,  the  Company re-aligned its
     business  segments  and operating segments into one business segment, which
     includes  both  product  and  service  offerings.  The  Company follows the
     provisions  of  SFAS  No. 131, "Disclosures about Segments of an Enterprise
     and  Related  Information."  This  statement  establishes standards for the
     reporting  of  information  about  operating segments in annual and interim
     financial  statements.  Operating  segments are defined as components of an
     enterprise  for  which  separate financial information is available that is
     evaluated  regularly  by  the chief operating decision maker(s) in deciding
     how  to  allocate  resources  and  in  assessing performance. The Company's
     operating  segments have similar economic characteristics and therefore can
     be  aggregated  into  one reporting segment. Two or more operating segments
     may  be  aggregated  into  a  single  operating segment if the segments are
     similar  in each of the following areas: (1) the nature of the products and
     services  (2)  the nature of the production processes (3) the type of class
     of  customer  for  the  products  and  service  and  (4)  the nature of the
     regulatory  environment.

     Prior  to fiscal year 2005, the Company disclosed three reporting segments:
     products,  services  and  leasing. Monthly income statements were generated
     and reviewed by management for both the products and service businesses for
     decision  making purposes. The segment reporting (product and services) are
     no  longer  reviewed  by  management  on  a  regular  basis  and  required
     significant  manual  work  to  develop the information solely for quarterly
     external  financial  statement  reporting  purposes.

     During the fourth quarter of 2005, the Company realigned its management and
     reporting  responsibilities  into  functional  lines:  Sales,  Service
     Operations,  Finance and Administrative. The Company also aligned sales and
     service  delivery  into  five  domestic  geographic regions and finance and
     administration  is  centralized.  Each  of the geographic regions sell both
     products  and  services  and  each  geographic  region has similar economic
     characteristics. As a result the Company now reports one reportable segment
     and  the  information  in  this  report  has  been  revised  to reflect the
     Company's  current  segment  reporting.

11.  Reclassifications

     Certain reclassifications of prior period amounts have been made to conform
     to  the  current  period  presentation.

12.  Restructuring  and  Severance  Charges

     During the first quarter of fiscal 2006 and during fiscal 2005, the Company
     recorded severance charges totaling $0.1 million and $0.9 million (of which
     $0.1  million  was  recorded  in  the  first  quarter  of  fiscal  2005),
     respectively,  resulting  primarily from a re-alignment of the structure of
     the  Company's  organization.

     During  fiscal  2004, in connection with certain strategic initiatives, the
     Company  recorded  restructuring  and  severance  charges  aggregating $1.0
     million.  The  restructuring  and  severance  charges  were associated with
     legacy  Pomeroy  costs of facilities and processes that have or will become
     duplicative  or  redundant  as  Alternative  Resources  Corporation ("ARC")
     operations  are  integrated  into  the  Company.  These  costs consisted of
     facility closing and involuntary employee reduction severance costs of $576
     thousand  and  $400  thousand, respectively. These costs were accounted for
     under  FAS  146,  "Accounting  for  Costs  Associated with Exit or Disposal
     Activities," and were included as a charge to the results of operations for
     the  year ended January 5, 2005. Any subsequent changes to the estimates of
     executing  the  currently approved plans of restructuring will be reflected
     in  current  results  of  operations.

     The  Company  also  recorded  during  fiscal 2004 a non-recurring, one-time
     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.


                                       11
<PAGE>
     As  of  April  5,  2006,  the  restructuring  and severance charge accrual,
     consisted  of  the  following:

<TABLE>
<CAPTION>
                                           Severance      Facility       Total
     (in thousands)                                     consolidation
                                          -------------------------------------
<S>                                       <C>          <C>              <C>
     Accrual balance at January 5, 2006   $      876   $          125   $1,001
     Charges accrued                             133                -      133
     Cash payments                              (322)             (51)    (373)
                                          -------------------------------------
     Accrual balance at April 5, 2006     $      687   $           74   $  761
                                          =====================================
</TABLE>

     Also, the Company's management 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.

<TABLE>
<CAPTION>
                                               Facility
     (in thousands)                          consolidation
                                            ---------------
<S>                                         <C>
     Total intial liability                 $        3,715
     Adjustments of initial liability                2,165
     Cash payments                                  (1,159)
                                            ---------------
     Liability balance at January 5, 2006            4,721
     Cash payments                                    (278)
                                            ---------------
     Liability balance at April 5, 2006     $        4,443
                                            ===============
</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 $1.5 million at July 23, 2004.

     As  of  April  5,  2006,  the  balance  of  the  ARC  fiscal  2002  accrued
     restructuring  costs  recorded  consisted  of  the  following:

<TABLE>
<CAPTION>
(in thousands)

Fiscal 2002 Restructuring Charge

                                         Facility        Other
                                      consolidations    charges   Total
                                     -------------------------------------
<S>                                  <C>               <C>        <C>
Total liability as of July 23, 2004  $           756   $    696   $ 1,452
Adjustment of initial liability                  100          -       100
Cash payments                                   (812)      (671)   (1,483)
Balance at January 5, 2006                        44         25        69
Cash payments                                    (33)        (3)      (36)
                                     -------------------------------------
Balance at April 5, 2006             $            11   $     22   $    33
                                     =====================================
</TABLE>


                                       12
<PAGE>
13.  Subsequent  Event

     An  amended  2002 Outside Directors' Stock Incentive Plan will be submitted
     to  the  Company's shareholders for approval on June 20, 2006. The proposed
     amendments  include  a provision to permit the issuance of restricted stock
     to  the Company's outside directors and a reduction in the number of shares
     available  for  issuance  under  the  plan.


                                       13
<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" regarding financial
results  constitute  forward-looking  statements.  These  statements  related to
future  events or our future financial performance and involve known and unknown
risks,  uncertainties  and  other  factors  that  may  cause our markets' actual
results,  levels  of  activity,  performance  or  achievements  to be materially
different  from  any  future  results,  levels  of  activity,  performance  or
achievements  expressed  or  implied  by  such forward looking statements. These
risks  and  other  factors  you should specifically consider include but are not
limited  to:  changes  in  customer  demands  or  industry standards, adverse or
uncertain economic conditions, loss of key personnel, litigation, the nature and
volume  of  products  and  services  anticipated to be delivered, the mix of the
products and services businesses, the type of services delivered, the ability to
successfully  attract and retain customers, sell additional products and service
to  existing customers,  the  ability to maintain a broad customer base to avoid
dependence  on  any single customer, the need to successfully attract and retain
outside  consulting  services,  new acquisitions by the Company, terms of vendor
agreements  and certification programs and the assumptions regarding the ability
to  perform  thereunder,  the  ability to implement the company's best practices
strategies,  the  ability  to  manage  risks  associated with customer projects,
existing  market  and competitive conditions including the overall demand for IT
products and services, and the ability to attract and retain technical and other
highly  skilled  personnel.  In  some  cases,  you  can identify forward-looking
statements  by  such  terminology  such  as "may", "should", "expects", "plans",
"anticipates",  "believes",  "estimates",  "predicts",  "potential", "continue",
"projects",  "intends",  "prospects", "priorities", or negative of such terms or
other  comparable  terminology.  These  statements  are only predictions. Actual
events  or  results  may  differ  materially.


                                       14
<PAGE>
<TABLE>
<CAPTION>
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:


                                          Three        Three
                                          Months       Months
                                          ended        ended
                                        ------------------------
                                         April 5,     April 5,
                                           2006         2005
                                        ------------------------
                                        (Unaudited)  (Unaudited)
<S>                                     <C>          <C>
Product and service revenues:
  Product                                     59.0%        67.1%
  Service                                     41.0%        32.9%
                                        -----------  -----------
    Total revenues                           100.0%       100.0%
                                        -----------  -----------

Cost of product and service revenues:
  Product                                     54.4%        61.7%
  Service                                     31.6%        24.5%
                                        -----------  -----------
    Total cost of revenues                    86.0%        86.2%
                                        -----------  -----------

      Gross profit                            14.0%        13.8%
                                        -----------  -----------

Operating expenses:
  Selling, general and administrative         13.6%        11.5%
  Rent expense                                 0.6%         0.6%
  Depreciation                                 0.8%         0.7%
  Amortization                                 0.1%         0.2%
  Restructuring and severance charges          0.1%         0.1%
  Other                                        0.0%         0.0%
                                        -----------  -----------
      Total operating expenses                15.2%        13.1%
                                        -----------  -----------

Income (loss) from operations                 -1.2%         0.7%

Interest expense, net                          0.2%         0.1%

                                        -----------  -----------
Income (loss)  before income tax              -1.4%         0.6%
Income tax expense (benefit)                  -0.5%         0.3%

                                        -----------  -----------
Net income (loss)                             -0.9%         0.3%
                                        ===========  ===========
</TABLE>


                                       15
<PAGE>
                           POMEROY IT SOLUTIONS, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

TOTAL PRODUCT AND SERVICE REVENUES. Total product and service revenues decreased
$15.1  million,  or  9.1%, to $150.7 million in the first quarter of fiscal 2006
from $165.8 million in the first quarter of fiscal 2005. Product sales decreased
$22.3  million,  or  20.1%, to $88.9 million in the first quarter of fiscal 2006
from $111.2 million in the first quarter of fiscal 2005. The decrease in product
sales  is  primarily attributable to several large sales in the first quarter of
fiscal  2005  which  were  not  repeated  in first quarter of fiscal 2006 due to
delaying  IT  spending  and  one-time  project  deployments.  Service  revenues
increased  $7.2  million,  or  13.2%,  to  $61.8 million in the first quarter of
fiscal  2006  from  $54.6 million in the first quarter of fiscal year 2005. This
increase in service revenues relates primarily to new service agreements entered
into  during  the  latter  part  of  2005.

GROSS  PROFIT. Gross profit decreased $1.8 million, or 7.9%, to $21.0 million in
the  first  quarter  of  fiscal  2006 from $22.8 million in the first quarter of
fiscal 2005. The decrease resulted primarily from the decrease in product sales.
Gross profit, as a percentage of total revenues, increased to 14.0% in the first
quarter of fiscal 2006 as compared to 13.8% in the first quarter of fiscal 2005.
This  increase  in  gross  margin  percentage  resulted  primarily from a higher
proportion  of service revenues to total revenues in the first quarter of fiscal
2006  as  compared  to  the  same  period  in  fiscal  2005.

OPERATING EXPENSES. Operating expenses increased $1.3 million, or 6.0%, to $22.9
million  in  the  first  quarter  of fiscal 2006 from $21.6 million in the first
quarter  of  fiscal 2005. Expressed as a percentage of total product and service
revenues,  operating  expenses increased to 15.2% in the first quarter of fiscal
2006  from  13.1% in the first quarter of fiscal 2005. The increase is primarily
attributable  to  increased  fees  from outside consultants associated with late
filings  and  restatements  of  fiscal 2005 quarterly financial statements ($0.5
million)  and  increased  costs  associated  with employee health benefits ($0.4
million).  Operating  expenses  were  also increased as a result of in the first
quarter  of  fiscal  2006  for stock option and restricted stock compensation of
$0.6  million.  No  comparable  expense  was  recognized in the first quarter of
fiscal  2005.

INCOME  (LOSS)  FROM  OPERATIONS.  Income  (loss) from operations decreased $3.1
million  to  a  loss  of $(1.9) million in the first quarter of fiscal 2006 from
operating  income  of  $1.2  million  in  the  first quarter of fiscal 2005. The
Company's  operating  margin  decreased to (1.2)% in the first quarter of fiscal
2006  as compared to 0.7% in the first quarter of fiscal 2005.  This decrease is
a  result  of the decrease in revenues and the increase in operating expenses as
described  above.

INTEREST  EXPENSE.  Net  interest  expense  was  $0.3  million  during the first
quarter  of  fiscal 2006 as compared to $0.2 million during the first quarter of
fiscal  2005.  This  increase  in net interest expense was a result of increased
borrowings  under  our  credit  facility  and  higher  interest  rates.

INCOME TAXES.  The Company's effective income tax rate was a benefit of 36.3% in
the  first  quarter  of  fiscal  2006  compared to expense of 40.5% in the first
quarter  of  fiscal  2005.  This  decrease  was principally related to permanent
taxable  items  which  reduced  the  percentage of benefit recorded in the first
quarter  of  fiscal  2006.

NET  INCOME  (LOSS).  Net  income (loss) decreased $2.0 million to a net loss of
$1.4 million in the first quarter of fiscal 2006 from net income of $0.6 million
in  the  first  quarter  of  fiscal  2005  due  to  the factors described above.


                                       16
<PAGE>
                         LIQUIDITY AND CAPITAL RESOURCES

Cash provided by operating activities was $6.9 million in the first three months
of  fiscal  2006.  Cash  used  in  investing  activities was $1.3 million, which
included  $0.2  million for prior year acquisitions and $0.7 million for capital
expenditures. Cash used in financing activities was $6.1 million, which included
$6.3  million  for repayment of short-term borrowings, offset by $0.2 million of
proceeds  from  exercise  of  stock  options  and  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.  The
Company  anticipates  an  increase  in  service revenue and in the proportion of
service  revenue  to  total  revenue  which,  if  it  occurs,  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 the three months ended April 5,
2006  were  $6.9  million  as  compared  to  cash  flows  provided  by operating
activities  of  $4.9  million  for  the corresponding period of fiscal 2005. The
increase  in  cash  flows from operating activities in the first three months of
2006  compared  to  the  first  three months of 2005 resulted primarily from the
timing of payments on accounts payable, offset by timing of receipts on accounts
receivable as well as a decrease in inventories and deferred income taxes and an
increase  in  employee  compensation  and benefits liability. These increases in
cash were offset somewhat by a decrease in cash from changes in items classified
as  other,  net.

A  significant  part  of  Pomeroy's  inventories  are  financed  by  floor  plan
arrangements with third parties. At April 5, 2006, these lines of credit totaled
$76.0  million,  including $75.0 million with GE Commercial Distribution Finance
("GECDF") and $1.0 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 due to subsidies by manufacturers. Overall,
the  average  interest 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
GECDF.   The  credit facility has a three-year term and its components include a
maximum  of  $75.0  million  for  inventory  financing  as described above and a
revolving line of credit, collateralized primarily by accounts receivable, of up
to  $110.0 million; provided that the total amount outstanding at any time under
the inventory financing facility and the revolving line of credit may not exceed
$165.0  million.  The  credit facility also provides a letter of credit facility
of  $5.0  million.   The interest rate under the credit facility is based on the
London  InterBank  Offering  Rate  ("LIBOR") and a pricing grid.  As of April 5,
2006,  the adjusted LIBOR rate was 7.08%.  This credit facility expires June 28,
2007.

As  of April 5, 2006, the Company had an outstanding balance under the Company's
credit  facility  of  $9.0  million, including $1.4 million of overdrafts on the
Company's  books in accounts at a participant bank on the credit facility. As of
January  5,  2006,  the  Company  had an outstanding balance under the Company's
credit  facility  of  $15.3  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, Pomeroy is subject to various financial covenants. As of April
5,  2006,  the  Company  was  not  in  compliance with certain of such financial
covenants. The company is currently in the process of obtaining a waiver of such
noncompliance  from  its  lenders.


                                       17
<PAGE>
Pomeroy  believes  that  the  anticipated  cash flow from operations and current
financing  arrangements  will  be  sufficient  to  satisfy  Pomeroy's  capital
requirements  for  the  next  twelve  months. Historically, Pomeroy has financed
acquisitions  using a combination of cash, deferred earn-out payments, shares of
its  Common  Stock  and  seller  financing.  Pomeroy  anticipates  that  future
acquisitions  will  be  financed  in  a  similar  manner.

On March 31, 2006, the Board of Directors of the Company authorized a program to
repurchase  up  to  500,000  shares,  but no more than $5.0 million. The Company
intends to effect such repurchases, if any, 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.  No  such shares have been repurchased as of April 5,
2006.  This stock redemption program was approved to remain in place and in full
force/effect  for  a  period  of  18  months.


                                       18
<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  2006.

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

EVALUATION  OF  DISCLOSURE  CONTROLS  AND  PROCEDURES

The  Company  maintains  disclosure controls and procedures (as defined in Rules
13(a)-15(e)  and  15(d)-15(e) of the Securities Exchange Act of 1934, as amended
(the  "Exchange  Act"))  designed  to  provide  reasonable  assurance  that  the
information  required  to  be  reported in its Exchange Act filings is recorded,
processed,  summarized  and  reported  within  the  time  periods  specified and
pursuant to the regulations of the Securities and Exchange Commission, including
controls  and procedures designed to ensure that this information is accumulated
and  communicated  to  the  Company's  management, including its Chief Executive
Officer  and  Chief Financial Officer, as appropriate, to allow timely decisions
regarding  required  disclosure.  It  should  be noted that, because of inherent
limitations,  the  Company's  disclosure  controls  and procedures, however well
designed  and operated, can provide only reasonable, and not absolute, assurance
that  the  objectives  of  the  disclosure  controls  and  procedures  are  met.

As described in Item 9A of the Company's Annual Report on Form 10-K for the year
ended  January  5,  2006,  the Company reported that it identified four material
weaknesses  in  its  internal control over financial reporting. As a result, the
Company's  management, including its Chief Executive Officer and Chief Financial
Officer, concluded that as of January 5, 2006, the Company's disclosure controls
and  procedures  were not effective at a reasonable level of assurance, based on
the  evaluation  of these controls and procedures required by Exchange Act Rules
13(a)-15(e)  or  15(d)-15(e).

As  of  April  5,  2006,  the four material weaknesses have not been remediated.
Accordingly,  the  Company's Chief Executive Officer and Chief Financial Officer
concluded  that,  as  of  April  5,  2006, the Company's disclosure controls and
procedures were not effective in providing reasonable assurance that information
required  to  be disclosed by us in reports we file or submit under the Exchange
Act  is  recorded,  processed,  summarized  and reported within the time periods
specified  in the SEC's forms and rules.  Despite these material weaknesses, the
financial statements reported on Form 10-Q for the fiscal quarter ended April 5,
2006,  fairly  present,  in  all  material  respects, the consolidated financial
condition  and  results  of  operations  of  the  Company.

MATERIAL  WEAKNESSES  REMEDIATION  PLANS:

Management  is  committed  to the remediation of the four material weaknesses as
well  as  the  continued  improvement of the Company's overall internal controls
over  financial  reporting. Management has been developing remediation plans for
each  of  the  four  identified  material  weaknesses.  The Company currently is
executing a remediation plan for each of the material weaknesses set forth below
that  includes  the  following:

     Actions  Relating  to  Maintaining  Effective  Control  Over The Accrual of
     ---------------------------------------------------------------------------
     Service  Billing  Calculations  and  Service Revenue  Recognition.
     ------------------------------------------------------------------
     -    We are assessing our service revenue and expense recognition processes
          and  procedures.  While  we have taken certain actions to address this
          material  weakness,  additional  time  and  planning will be necessary
          before the Company can finalize a remediation plan. The Company's goal
          is to have the remediation completed during the fourth quarter of 2006
          or  earlier.


                                       19
<PAGE>
     Actions  Relating  to  Maintaining  Effective  Control Over Financial Close
     ---------------------------------------------------------------------------
     and  Reporting  Process.
    -------------------------
     -    During  the  fourth  quarter  of  2005,  we  began  hiring  additional
          accounting  personnel.  We  hired  an  individual  with  a CPA and SEC
          reporting experience to manage our SEC reporting function. The Company
          also  hired  additional  Sarbanes-Oxley  resources.  The  Company will
          continue  to  expand  the  finance  organization that will include the
          creation  of a Financial Planning and Analysis department during 2006.
          We  will  continue  to  develop  standard  accounting  policies  and
          procedures  over  non-routine  general ledger accounts during 2006. We
          have  developed and implemented more structured and meaningful general
          ledger account reconciliations that now reflect reconciling items that
          will  lead  to  more  timely  resolution  and  proper  account
          classifications.  A  detailed  finance  organization  training plan on
          financial  controls, policies and procedures, account reconciliations,
          GAAP  and  SEC  disclosure  checklists  will be implemented during the
          second  quarter  of  2006.

     Actions Related to Maintaining Effective Control Over Computer Applications
     ---------------------------------------------------------------------------
     Used  in  Financial  Reporting.
     -------------------------------
     -    The  Company has expanded and will continue to improve our information
          technology  systems.  The Company hired a CIO during the first quarter
          of  2006.  The  Company  has  developed  and implemented controls over
          system  changes  and  upgrades. In addition, the Company is addressing
          the  necessary  changes  that  will  address  and  resolve  the issues
          associated with computer applications that have improper system access
          rights.  Our remediation of these control weaknesses will be addressed
          throughout  the year and should be finalized during the fourth quarter
          of  2006  or  earlier.

     Actions Related to Maintaining Effective Controls Over the Payroll Process.
     ---------------------------------------------------------------------------
     -    We  have  implemented  new  payroll policies and procedures for timely
          notification  of  terminated  employees.  The Company will continue to
          improve the internal controls over payroll during 2006 by implementing
          additional  procedures  that will hold one-up managers accountable and
          responsible  for  timely  notifications  of  terminated  employees.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

The Company's remediation plan for three of the four material weaknesses has not
been  in place long enough to show meaningful results.  It is expected, however,
that  the  remediation  of  these  four  material  weaknesses will significantly
improve  the  Company's  internal  controls  over financial reporting during the
latter  part  of  2006  and  beyond.


                                       20
<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

NONE

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,  but no more than $5.0 million. The Company
intends to effect such repurchases, if any, 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.  No  such shares have been repurchased as of April 5,
2006.  This stock redemption program was approved to remain in place and in full
force/effect  for  a  period  of  18  months.

During  the fiscal quarter ended April 5, 2006, 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 is restricted under Pomeroy'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

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


                                       21
<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, 2006                     By:  /s/ Kevin G. Gregory
     ---------------------
                                       ----------------------------------------
                                       Kevin G. Gregory
                                       Senior Vice President and Chief
                                       Financial Officer


                                       22