**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D. C. 20549**

**FORM      10-QSB**

** **

**March      31**
***,***
** 2007**

**1-9731**

*Commission      file No.)*

**ARRHYTHMIA      RESEARCH TECHNOLOGY, INC.**

*(Exact      name of small business issuer as specified in its charter)*

| **DELAWARE**                                                                                   | **72-0925679**                                        |
|------------------------------------------------------------------------------------------------|-------------------------------------------------------|
| *(State                or other jurisdiction of incorporation or                organization)* | *(I.R.S.                employer identification no.)* |

**25      Sawyer Passway**

**Fitchburg,      Massachusetts 01420**

*(Address      of principal executive offices)*

**(978)      345-5000**

*(Issuer's      telephone number, including area code)*

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**ARRHYTHMIA      RESEARCH TECHNOLOGY, INC.**

PART      I      - FINANCIAL INFORMATION

Item      1. Consolidated Financial Statements

Consolidated      Balance Sheets

Consolidated      Statements of      Income

Consolidated      Statements of Cash Flows

Notes      to the Consolidated Financial Statements

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

Item      3. Controls and Procedures

Item      3A(T). Controls and Procedures

PART      II - OTHER INFORMATION

Item      6. Exhibits

SIGNATURES

Exhibit      31.1 - Certification of Chief Executive Officer      pursuant to section 302 of the Sarbanes-Oxley Act of 2002

Exhibit      31.2 - Certification of Chief Financial Officer      pursuant to section 302 of the Sarbanes-Oxley Act of 2002

Exhibit      32.1 - Certification of Chief Executive Officer      pursuant to section 906 of the Sarbanes-Oxley Act of 2002

Exhibit      32.2 - Certification of Chief Financial Officer      pursuant to section 906 of the Sarbanes-Oxley Act of 2002

Exhibit        99.1 - Press Release dated May 15, 2007        announcing its financial results for the quarter ended March 31,        2007

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**PART      I - FINANCIAL INFORMATION**

**Item      1. Consolidated Financial Statements**

ARRHYTHMIA      RESEARCH TECHNOLOGY, INC. AND      SUBSIDIARY

| **ASSETS**                                                                                                                  |   |        | March                  31,2007 |   | December                  31,2006   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|-----------------------------------------------|
| Current                  assets:                                                                                            |   |   |                           |   |                                          |   |   |
| Cash                  and cash equivalents                                                                             |   | $      | 1,775,465                      |   | $                                             | 2,065,645 |   |
| Trade                  and other accounts receivable, net of allowance fordoubtful                  accounts of $29,830     |   |   | 3,191,728                      |   |                                          | 2,857,937 |   |
| Inventories,                  net                                                                                      |   |   | 3,114,728                      |   |                                          | 2,868,292 |   |
| Deferred                  income taxes, net                                                                            |   |   | 57,000                         |   |                                          | 57,000 |   |
| Deposits,                  prepaid expenses and other current assets                                                   |   |   | 603,689                        |   |                                          | 476,153 |   |
| Total                  current assets                                                                                  |   |   | 8,742,610                      |   |                                          | 8,325,027 |   |
|                                                                                                                        |   |   |                           |   |                                          |   |   |
| Property                  and equipment, net of accumulated depreciation of$7,039,174                  and $6,849,805  |   |   | 6,173,148                      |   |                                          | 6,045,736 |   |
| Goodwill                                                                                                               |   |   | 1,564,966                      |   |                                          | 1,564,966 |   |
| Other                  intangible assets, net                                                                          |   |   | 290,549                        |   |                                          | 310,802 |   |
| Deferred                  income taxes, net                                                                            |   |   | 70,000                         |   |                                          | 70,000 |   |
| Other                  assets                                                                                          |   |   | 70,390                         |   |                                          | 87,349 |   |
| Total                  assets                                                                                          |   | $      | 16,911,663                     |   | $                                             | 16,403,880 |   |
|                                                                                                                        |   |   |                           |   |                                          |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**                                                             |   |   |                           |   |                                          |   |   |
|                                                                                                                        |   |   |                           |   |                                          |   |   |
| Current                  liabilities:                                                                                       |   |   |                           |   |                                          |   |   |
| Accounts                  payable                                                                                      |   | $      | 1,576,051                      |   | $                                             | 1,347,464 |   |
| Accrued                  expenses                                                                                      |   |   | 355,975                        |   |                                          | 414,739 |   |
| Current                  portion of acquisition note payable                                                           |   |   | 61,633                         |   |                                          | 61,633 |   |
| Total                  current liabilities                                                                             |   |   | 1,993,659                      |   |                                          | 1,823,836 |   |
|                                                                                                                        |   |   |                           |   |                                          |   |   |
| Long                  term liabilities:                                                                                     |   |   |                           |   |                                          |   |   |
| Long                  term payables                                                                                    |   |   | 43,547                         |   |                                          | 25,836 |   |
| Acquisition                  note payable, net of current portion                                                      |   |   | 119,147                        |   |                                          | 134,083 |   |
| Total                  long term liabilities                                                                           |   |   | 162,694                        |   |                                          | 159,919 |   |
|                                                                                                                        |   |   |                           |   |                                          |   |   |
| Total                  liabilities                                                                                          |   |   | 2,156,353                      |   |                                          | 1,983,755 |   |
|                                                                                                                        |   |   |                           |   |                                          |   |   |
| Shareholders’                  equity:                                                                                |   |   |                           |   |                                          |   |   |
| Preferred                  stock, $1 par value; 2,000,000 shares authorized, none issued                               |   |   | -                              |   |                                          | - |   |
| Common                  stock, $0.01 par value; 10,000,000 shares authorized,3,926,491                  shares issued  |   |   | 39,265                         |   |                                          | 39,265 |   |
| Additional                  paid-in-capital                                                                            |   |   | 10,106,394                     |   |                                          | 10,021,417 |   |
| Common                  stock held in treasury, 1,214,811, and 1,220,811 shares at                  cost               |   |   | (3,326,579                     | )      |                                          | (3,343,007 | ) |
| Retained                  earnings                                                                                     |   |   | 7,936,230                      |   |                                          | 7,702,450 |   |
| Total                  shareholders’ equity                                                                      |   |   | 14,755,310                     |   |                                          | 14,420,125 |   |
| Total                  liabilities and shareholders’ equity                                                      |   | $      | 16,911,663                     |   | $                                             | 16,403,880 |   |

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

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ARRHYTHMIA      RESEARCH TECHNOLOGY, INC. AND      SUBSIDIARY

|                                                  |   |  Three                  Months EndedMarch                  31,  |      |
|-------------------------------------------------------|--------|---------------------------------------------------------------------------|-----------|
|                                                  |   |                                                                           | **2007**  |   | **2006** |
| Revenue                                          |   | $                                                                         | 5,009,276 |   | $ | 4,269,047 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Cost                  of sales                   |   |                                                                      | 3,946,347 |   |   | 2,903,267 |   |
| Gross                  profit                         |   |                                                                      | 1,062,929 |   |   | 1,365,780 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Selling                  and marketing           |   |                                                                      | 183,673   |   |   | 142,455 |   |
| General                  and administrative      |   |                                                                      | 505,294   |   |   | 385,976 |   |
| Research                  and development        |   |                                                                      | 13,852    |   |   | 17,456 |   |
| Income                  from operations               |   |                                                                      | 360,110   |   |   | 819,893 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Other                  expense, net              |   |                                                                      | (10,330   | ) |   | (14,887 | ) |
|                                                  |   |                                                                      |      |   |   |   |   |
| Income                  before income taxes      |   |                                                                      | 349,780   |   |   | 805,006 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Income                  tax provision            |   |                                                                      | 116,000   |   |   | 284,000 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Net                  income                           |   | $                                                                         | 233,780   |   | $ | 521,006 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Net                  income per share - basic    |   | $                                                                         | 0.09      |   | $ | 0.20 |   |
|                                                  |   |                                                                      |      |   |   |   |   |
| Net                  income per share - diluted  |   | $                                                                         | 0.08      |   | $ | 0.19 |   |
| Weighted average common                shares         |   |                                                                      |      |   |   |   |   |
|                     outstanding - basic     |   |                                                                      | 2,706,502 |   |   | 2,666,194 |   |
| Weighted average common                shares         |   |                                                                      |      |   |   |   |   |
|                     outstanding - diluted   |   |                                                                      | 2,778,961 |   |   | 2,696,416 |   |

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

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ARRHYTHMIA      RESEARCH TECHNOLOGY, INC. AND      SUBSIDIARY

|                                                                                                                                                                   |   | ** Three                  Months Ended****March                  31,** |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|-----------|
|                                                                                                                                                                   |   |                                                                        | **2007**  |   |   | **2006** |   |
|  Cash                flows from operating activities:                                                                                                             |   |                                                                        |      |   |   |   |   |
| Net                  income                                                                                                                                       |   | $                                                                           | 233,780   |   | $ | 521,006 |   |
|                                                                                                                                                                   |   |                                                                        |      |   |   |   |   |
| Adjustments                  to reconcile net income to net cash provided by                      (used                  in) operating activities: |   |                                                                        |      |   |   |   |   |
| Depreciation                  and amortization                                                                                                                    |   |                                                                        | 256,773   |   |   | 204,330 |   |
| Share                  based compensation                                                                                                                         |   |                                                                        | 8,696     |   |   | 3,759 |   |
| Changes                  in operating assets and liabilities:                                                                                                          |   |                                                                        |      |   |   |   |   |
| Trade                  and other accounts receivable                                                                                                              |   |                                                                        | (333,791  | ) |   | (984,182 | ) |
| Inventories                                                                                                                                                       |   |                                                                        | (246,436  | ) |   | (93,302 | ) |
| Deposits,                  prepaid expenses and other assets                                                                                                      |   |                                                                        | (113,577  | ) |   | 135,101 |   |
| Accounts                  payable and accrued expenses                                                                                                            |   |                                                                        | 187,534   |   |   | 500,850 |   |
| Net                  cash provided by (used in) operating activities                                                                                              |   |                                                                        | (7,021    | ) |   | 287,562 |   |
|                                                                                                                                                                   |   |                                                                        |      |   |   |   |   |
| Cash                  flows from investing activities:                                                                                                                 |   |                                                                        |      |   |   |   |   |
| Capital                  expenditures, net of disposals                                                                                                           |   |                                                                        | (360,932  | ) |   | (343,391 | ) |
| Net                  cash used in investing activities                                                                                                            |   |                                                                        | (360,932  | ) |   | (343,391 | ) |
|                                                                                                                                                                   |   |                                                                        |      |   |   |   |   |
| Cash                  flows from financing activities:                                                                                                                 |   |                                                                        |      |   |   |   |   |
| Payments                  on acquisition note payable                                                                                                             |   |                                                                        | (14,936   | ) |   | - |   |
| Tax                  benefit from exercise of stock options                                                                                                       |   |                                                                        | 33,549    |   |   | - |   |
| Proceeds                  from the exercise of stock options                                                                                                      |   |                                                                        | 59,160    |   |   | - |   |
| Net                  cash provided by financing activities                                                                                                        |   |                                                                        | 77,773    |   |   | - |   |
|                                                                                                                                                                   |   |                                                                        |      |   |   |   |   |
| Net                  decrease in cash and cash equivalents                                                                                                        |   |                                                                        | (290,180  | ) |   | (55,829 | ) |
|                                                                                                                                                                   |   |                                                                        |      |   |   |   |   |
| Cash                  and cash equivalents at beginning of period                                                                                                 |   |                                                                        | 2,065,645 |   |   | 1,931,823 |   |
| Cash                  and cash equivalents at end of period                                                                                                       |   | $                                                                           | 1,775,465 |   | $ | 1,875,994 |   |

|                                                                                             |   |   |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Supplemental                  Information:                                                       |   |   |   |   |
| At                  March 31, 2007 the Company has $1,118 of dividends                  payable. |   |   |
|                                                                                             |

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

----

Notes      to the Consolidated Financial Statements

*1.      Basis of Presentation:*

*2.      Inventories:*

| Inventories                consist of the following as of: |   | March                31,2007 |      | December                31, 2006 |   |
|------------------------------------------------------------|--------|------------------------------|-----------|----------------------------------|--------|
| Raw                materials                               |   | $                            | 1,347,095 |                             | $      | 1,171,803 |   |
| Work-in-process                                       |   |                         | 425,631   |                             |   | 525,515 |   |
| Finished                goods                              |   |                         | 1,342,002 |                             |   | 1,170,974 |   |
| Total                                                      |   | $                            | 3,114,728 |                             | $      | 2,868,292 |   |

*3.      Share-Based Compensation:*

*Share-Based      Payment*

*Share-based      Incentive Plan*

----

| Exercise                Price                      |   | Number                of Outstanding Shares |   | Weighted                Average Remaining Contractual Life (years) |   | Options                Currently Exercisable |   |
|----------------------------------------------------|--------|---------------------------------------------|--------|--------------------------------------------------------------------|--------|----------------------------------------------|--------|
| $                 4.85              |   |                                        | 25,000 |                                                               |   | 2.34                                         |   |   | 15,000 |   |
|                    9.86   |   |                                        | 72,000 |                                                               |   | 4.72                                         |   |   | 72,000 |   |
| 12.42                                              |   |                                        | 10,000 |                                                               |   | 5.34                                         |   |   | - |   |
| 23.10                                              |   |                                        | 10,000 |                                                               |   | 5.93                                         |   |   | - |   |

|                                                  |   | Non-Vested                Options |   |
|-------------------------------------------------------|--------|-----------------------------------|--------|
|                                                  |   | Number                of Shares   |   | Weighted                Average                Fair Value |   |
|                  Non-vested at December 31, 2006 |   |                              | 20,000 |   | $ | 3.67 |   |
|                  Granted                         |   |                              | 10,000 |   |   | 14.21    |   |
|                  Vested                          |   |                              | -      |   |   | - |   |
|                  Forfeited                       |   |                              | -      |   |   | - |   |
|                  Non-vested at March 31, 2007    |   |                              | 30,000 |   | $ | 7.18 |   |

*4.      Recent Accounting Pronouncements:*

*Accounting      for Uncertainty in Income Taxes*
*Accounting for Income      Taxes*

*Fair      Value Measurements*

*The      Fair Value Option for Financial Assets and Financial      Liabilities*

----

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

*Forward-Looking      Statements*

*Overview*

*Results      of Operations*

*Results        of Operations*

***Revenue***

|                           |   |   | Three                  Months Ending March 31,  |   |
|--------------------------------|--------|--------|------------------------------------------------------|--------|
|                           |   |   | 2007                                            |   |   | %  |   | 2006  |   |   | %  |
| United                  States |   | $      | 2,766,622                                            |   |   | 55 |   | $ | 1,703,013 |   |   | 40 |   |
| Canada                         |   |   | 1,302,770                                            |   |   | 26 |   |   | 1,366,306 |   |   | 32 |   |
| Europe                         |   |   | 737,683                                              |   |   | 15 |   |   | 1,064,481 |   |   | 25 |   |
| Pacific                  Rim   |   |   | 93,800                                               |   |   | 2 |   |   | 57,585 |   |   | 1 |   |
| Other                          |   |   | 108,401                                              |   |   | 2 |   |   | 77,662 |   |   | 2 |   |
| Total                          |   | $      | 5,009,276                                            |   |   | 100 |   | $ | 4,269,047 |   |   | 100 |   |

***Cost      of sales***

----

***Selling      and marketing***
***expense***

***General      and administrative expense***

***Research      and development expense***

***Other      expense, net***

***Income      taxes***

*Liquidity      and Capital Resources*

*Critical      Accounting Policies*

----

*Revenue      Recognition and Accounts Receivable*

*Inventory      and Inventory Reserves*

*Deferred      Tax Assets*

*Asset      Impairment - Goodwill*

*Asset      Impairment - Long Lived Assets*

----

**Item      3. Controls and Procedures**

**Item      3A(T). Controls and Procedures**

----

**PART      II - OTHER INFORMATION**

**Item      6. Exhibits**

| (a)   | Exhibits |
|-----------------|----------|

| 3.0                       |                    Articles of Incorporation(a)                                                                                                                                                        |
|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                       |                    By-laws(b)                                                                                                                                                                          |
| 10.41                          |                    Asset Purchase Agreement, dated May 7, 2004, between Micron Products,                  Inc.                  and Shrewsbury Molders, Inc.(c)                                        |
| 10.43*                              |                    Employment agreement between James E. Rouse and the Company dated                  December                  26th,                  2006.(d)                                        |
| 10.44*                              |                    Employment agreement between David A. Garrison and the Company                  dated                  January 1st,                  2007.(d)                                       |
| 31.1                 |                    Certification of the CEO pursuant to Rule 13a-14(a) or Rule                  15(d)-14(a)                  on                  page X-1.                                             |
| 31.2                 |                    Certification of the CFO pursuant to Rule 13a-14(a) or Rule                  15(d)-14(a)                  on                  page X-2.                                             |
| 32.1                      |                    Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to Section                  906 of the Sarbanes-Oxley Act of 2002                  on                  page X-3. |
| 32.2                      |                    Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to Section                  906 of the Sarbanes-Oxley Act of 2002 on page X-4.                                   |
|  99.1           |   Press                Release dated May 15, 2007 announcing its financial results for the                1st                quarter ended March 31, 2007 on page                X-5.                  |

| (a)   | Incorporated                by reference from the Company’s Registration Statement on Form S-18 as                filed with the Commission in April 1988, Registration Statement No.                33-20945-FW. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Incorporated                by reference from the Company’s Form 10-Q for period ended September 30,                2002 as filed with the Commission in November                2002. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Incorporated                by reference from the Company’s Form 8-K as filed with the Commission on                May 21, 2004. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Incorporated                by reference from the Company’s Form 10-KSB for period ended December 31,                2006 as filed with the Commission in March of                2007. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**

|         |                                                                                                                                               |                                  |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|         | ARRHYTHMIA              RESEARCH TECHNOLOGY, INC.                                                                                                  |
|    |                                                                                                                                          |                             |
|         | By:                                                                                                                                      | /s/               James E. Rouse |
|         |     James                E. Rouse                                                                                              |
|         |                     President and Chief Executive Officer                    (Principal Executive Officer) |

|         |                                                                                                                                                                                                 |                                     |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|         | ARRHYTHMIA              RESEARCH TECHNOLOGY, INC.                                                                                                                                                    |
|    |                                                                                                                                                                                            |                                |
|         | By:                                                                                                                                                                                        | /s/               David A. Garrison |
|         |     David                A. Garrison                                                                                                                                             |
|         |                     Executive Vice President and Chief Financial Officer                    (Principal Financial and                Accounting Officer) |

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