**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-Q**

| For                  the Quarter Ended March 31, 2007 | Commission                  File No.: 1-15637 |
|-------------------------------------------------------|-----------------------------------------------|

**WINLAND        ELECTRONICS, INC.**

| Minnesota                                                                       | 41-0992135                                            |
|---------------------------------------------------------------------------------|-------------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) | (IRS                  Employer Identification Number) |

| Title                  of Each Class             | Name                  of Exchange        |
|--------------------------------------------------|------------------------------------------|
| Common                  Stock, $.01 par value    | American                  Stock Exchange |
| Preferred                  Stock Purchase Rights | American                  Stock Exchange |

| Large                  accelerated filer o | Accelerated                  filer o | Non-accelerated                  filer þ |
|--------------------------------------------|--------------------------------------|-----------------------------------------------|

----

|  TABLE                  OF CONTENTS                                                           |
|----------------------------------------------------------------------------------------------------|
|                                                                                               |
| PART                  I - FINANCIAL INFORMATION                                                    |
|                                                                                               | ITEM                  1. FINANCIAL STATEMENTS |
|                                                                                               | ITEM                  2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL                  CONDITION AND RESULTS OF OPERATIONS |
|                                                                                               | ITEM                  3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT                  MARKET RISK |
|                                                                                               | ITEM                  4. CONTROLS AND PROCEDURES |
| PART                  II - OTHER INFORMATION                                                       |
|                                                                                               | ITEM                  1. LEGAL PROCEEDINGS |
|                                                                                               | ITEM                  1A. RISK FACTORS |
|                                                                                               | ITEM                  2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE                  OF PROCEEDS |
|                                                                                               | ITEM                  3. DEFAULTS UPON SENIOR                  SECURITIES |
|                                                                                               | ITEM                  4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY                  HOLDERS |
|                                                                                               | ITEM                  5. OTHER INFORMATION |
|                                                                                               | ITEM                  6. EXHIBITS |
| SIGNATURES                                                                                         |
| EXHIBIT                  INDEX                                                                     |
| Certification                of Chief Executive Officer                Pursuant to Section 302     |
| Certification                  of Chief Financial Officer                  Pursuant to Section 302 |
| Certification                of Chief Executive Officer                Pursuant to Section 906     |
| Certification                of Chief Financial Officer                Pursuant to Section 906     |

----

Table            of Contents

**PART        I - FINANCIAL INFORMATION**

**ITEM        1.** **FINANCIAL        STATEMENTS**

| **WINLAND                    ELECTRONICS, INC.**    |   |
|-----------------------------------------------------|--------|
| **CONDENSED                    BALANCE SHEETS**     |   |
| (In                    Thousands of Dollars)        |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **ASSETS**                                          |   |   | **March                    31, 2007** |   |   | December                    31, 2006 |   |
|                                                |   |   | **(Unaudited)**  |   |   |   |   |   |   |   |
| Current                    Assets                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                |   |   |   |   | **$** | **-** |   |   |   |   | $ | 51 |   |
| Accounts                    receivable, net         |   |   |   |   |   | **4,959** |   |   |   |   |   | 5,165 |   |
| Refundable                    Income taxes          |   |   |   |   |   | **287** |   |   |   |   |   | 237 |   |
| Inventories                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Raw                    materials                    |   |  $ | **5,511** |   |   |   |   |  $ | 4,881 |   |   |   |   |
| Work                    in process                  |   |   | **404** |   |   |   |   |   | 327 |   |   |   |   |
| Finished                    goods                   |   |   | **1,878** |   |   |   |   |   | 1,976 |   |   |   |   |
| Allowance                    for obsolete inventory |   |   | **(271** | **)** |   |   |   |   | (190 | ) |   |   |   |
| Total                    inventories                |   |   |   |   |   | **7,522** |   |   |   |   |   | 6,994 |   |
| Prepaid                    expenses                 |   |   |   |   |   | **450** |   |   |   |   |   | 360 |   |
| Deferred                    income taxes            |   |   |   |   |   | **278** |   |   |   |   |   | 278 |   |
| **Total                    current assets**         |   |   |   |   |   | **13,496** |   |   |   |   |   | 13,085 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                    Assets                     |   |   |   |   |   | **3** |   |   |   |   |   | 3 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                    and Equipment, at cost: |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Land                    and land improvements       |   |   | **383** |   |   |   |   |   | 383 |   |   |   |   |
| Building                                            |   |   | **3,052** |   |   |   |   |   | 3,048 |   |   |   |   |
| Machinery                    and equipment          |   |   | **6,948** |   |   |   |   |   | 6,863 |   |   |   |   |
| Data                    processing equipment        |   |   | **1,198** |   |   |   |   |   | 1,003 |   |   |   |   |
| Office                    furniture and equipment   |   |   | **457** |   |   |   |   |   | 457 |   |   |   |   |
| **Total                    property and equipment** |   |   |   |   |   | **12,038** |   |   |   |   |   | 11,754 |   |
| Less                    accumulated depreciation    |   |   |   |   |   | **(6,198** | **)** |   |   |   |   | (5,975 | ) |
| **Net                    property and equipment**   |   |   |   |   |   | **5,840** |   |   |   |   |   | 5,779 |   |
| **Total                    assets**                 |   |   |   |   | **$** | **19,339** |   |   |   |   | $ | 18,867 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table            of Contents

| **WINLAND                    ELECTRONICS, INC.**                  |   |
|-------------------------------------------------------------------|--------|
| **CONDENSED                    BALANCE SHEETS**                   |   |
| (In                    Thousands of Dollars)                      |   |
|                                                              |   |   |   |   |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY**       |   |   | **March                    31, 2007** |   |   | December                    31, 2006 |   |
|                                                              |   |   | **(Unaudited)**  |   |   |   |   |
| Current                    Liabilities                            |   |   |   |   |   |   |   |
| Revolving                    line of credit agreement             |   | **$** | **2,736** |   | $ | 1,924 |   |
| Current                    maturities of long-term debt           |   |   | **662** |   |   | 627 |   |
| Accounts                    payable                               |   |   | **2,744** |   |   | 2,830 |   |
| Accrued                    expenses:                              |   |   |   |   |   |   |   |
| Compensation                                                      |   |   | **569** |   |   | 673 |   |
| Other                                                             |   |   | **376** |   |   | 323 |   |
| **Total                    current liabilities**                  |   |   | **7,087** |   |   | 6,377 |   |
|                                                              |   |   |   |   |   |   |   |
| Long                    Term Liabilities                          |   |   |   |   |   |   |   |
| Long-term                    debt, less current maturities        |   |   | **1,680** |   |   | 1,706 |   |
| Deferred                    income taxes                          |   |   | **255** |   |   | 255 |   |
| Deferred                    revenue                               |   |   | **144** |   |   | 146 |   |
| **Total                    long-term liabilities**                |   |   | **2,079** |   |   | 2,107 |   |
|                                                              |   |   |   |   |   |   |   |
| Stockholders'                    Equity                           |   |   |   |   |   |   |   |
| Common                    stock                                   |   |   | **36** |   |   | 36 |   |
| Additional                    paid-in capital                     |   |   | **4,485** |   |   | 4,429 |   |
| Retained                    earnings                              |   |   | **5,652** |   |   | 5,918 |   |
| **Total                    stockholders' equity**                 |   |   | **10,173** |   |   | 10,383 |   |
| **Total                    liabilities and stockholders' equity** |   | **$** | **19,339** |   | $ | 18,867 |   |

----

Table            of Contents

| **WINLAND                    ELECTRONICS, INC.**                         |   |
|--------------------------------------------------------------------------|--------|
| **CONDENSED                    STATEMENTS OF INCOME**                    |   |
| (In                    Thousands, Except Per Share Amounts)              |   |
| (Unaudited)                                                              |   |
|                                                                     |   |   |   |   |   |   |   |
|                                                                     |   |   | For                    the Quarter Ended March 31,  |   |
|                                                                     |   |   | **2007** |   |   | 2006 |   |
|                                                                     |   |   |   |   |   |   |   |
| Net                    sales                                             |   | **$** | **9,300** |   | $ | 8,199 |   |
| Cost                    of sales                                         |   |   | **8,094** |   |   | 6,539 |   |
| **Gross                    profit**                                      |   |   | **1,206** |   |   | 1,660 |   |
|                                                                     |   |   |   |   |   |   |   |
| Operating                    expenses:                                   |   |   |   |   |   |   |   |
| General                    and administrative                            |   |   | **659** |   |   | 593 |   |
| Sales                    and marketing                                   |   |   | **428** |   |   | 414 |   |
| Research                    and development                              |   |   | **461** |   |   | 147 |   |
|                                                                     |   |   | **1,548** |   |   | 1,154 |   |
|                                                                     |   |   |   |   |   |   |   |
| **Operating                    income (loss)**                           |   |   | **(342** | **)** |   | 506 |   |
|                                                                     |   |   |   |   |   |   |   |
| Other                    income (expenses):                              |   |   |   |   |   |   |   |
| Interest                    expense                                      |   |   | **(81** | **)** |   | (28 | ) |
| Other                    income, net                                     |   |   | **13** |   |   | 8 |   |
|                                                                     |   |   | **(68** | **)** |   | (20 | ) |
|                                                                     |   |   |   |   |   |   |   |
| **Income                    (loss) before income taxes**                 |   |   | **(410** | **)** |   | 486 |   |
|                                                                     |   |   |   |   |   |   |   |
| Income                    tax benefit (expense)                          |   |   | **143** |   |   | (175 | ) |
| **Net                    income (loss)**                                 |   | **$** | **(267** | **)** | $ | 311 |   |
|                                                                     |   |   |   |   |   |   |   |
| Earnings                    (loss) per common share:                     |   |   |   |   |   |   |   |
| Basic                                                                    |   | **$** | **(0.07** | **)** | $ | 0.09 |   |
| Diluted                                                                  |   | **$** | **(0.07** | **)** | $ | 0.09 |   |
|                                                                     |   |   |   |   |   |   |   |
| Weighted-average                    number of common shares outstanding: |   |   |   |   |   |   |   |
| Basic                                                                    |   |   | **3,600,347** |   |   | 3,534,316 |   |
| Diluted                                                                  |   |   | **3,600,347** |   |   | 3,646,013 |   |
|                                                                     |   |   |   |   |   |   |   |

----

Table            of Contents

| **WINLAND                    ELECTRONICS, INC.**                                                                                  |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONDENSED                    STATEMENTS OF CASH FLOWS**                                                                         |   |
| (In                    Thousands of Dollars)                                                                                      |   |
| (Unaudited)                                                                                                                       |   |
|                                                                                                                              |   |   | For                    the Quarter Ended March 31,  |   |
|                                                                                                                              |   |   | **2007** |   |   | 2006 |   |
| Cash                    Flows From Operating Activities                                                                           |   |   |   |   |   |   |   |
| Net                    income (loss)                                                                                              |   | **$** | **(267** | **)** | $ | 311 |   |
| Adjustments                    to reconcile net income to net cash provided by (used in) operating                    activities: |   |   |  |   |   |   |   |
| Non-cash                    stock based compensation                                                                              |   |   | **31** |   |   | 13 |   |
| Depreciation                    and amortization                                                                                  |   |   | **224** |   |   | 176 |   |
| Investor                    relations expense, non-cash warrant expense                                                           |   |   | **-** |   |   | 3 |   |
| Consulting                    expense, non-cash warrant expense                                                                   |   |   | **22** |   |   | - |   |
| Changes                    in assets and liabilities:                                                                             |   |   |   |   |   |   |   |
| Accounts                    receivable                                                                                            |   |   | **206** |   |   | 704 |   |
| Refundable                    income taxes                                                                                        |   |   | **(50** | **)** |   | 48 |   |
| Inventories                                                                                                                       |   |   | **(528** | **)** |   | (1,523 | ) |
| Prepaid                    expenses                                                                                               |   |   | **(90** | **)** |   | (190 | ) |
| Accounts                    payable                                                                                               |   |   | **(86** | **)** |   | 1,395 |   |
| Accrued                    expenses, deferred revenue and income taxes payable                                                    |   |   | **(51** | **)** |   | (41 | ) |
| **Net                    cash provided by (used in) operating activities**                                                        |   |   | **(589** | **)** |   | 896 |   |
|                                                                                                                              |   |   |   |   |   |   |   |
| Cash                    Flows From Investing Activities                                                                           |   |   |   |   |   |   |   |
| Purchases                    of property and equipment                                                                            |   |   | **(118** | **)** |   | (311 | ) |
|                                                                                                                              |   |   |   |   |   |   |   |
| Cash                    flows From Financing Activities                                                                           |   |   |   |   |   |   |   |
| Net                    borrowings on revolving line of credit                                                                     |   |   | **812** |   |   | - |   |
| Payments                      on long-term borrowings, including capital lease obligations                                        |   |   | **(159** | **)** |   | (135 | ) |
| Proceeds                    from exercise of stock options                                                                        |   |   | **3** |   |   | 11 |   |
| **Net                    cash provided by (used in) financing activities**                                                        |   |   | **656** |   |   | (124 | ) |
|                                                                                                                              |   |   |   |   |   |   |   |
| **Net                    (decrease) increase in cash**                                                                            |   |   | **(51** | **)** |   | 461 |   |
|                                                                                                                              |   |   |   |   |   |   |   |
| Cash                                                                                                                              |   |   |   |   |   |   |   |
| Beginning                                                                                                                         |   |   | **51** |   |   | 865 |   |
| Ending                                                                                                                            |   | **$** | **-** |   | $ | 1,326 |   |
|                                                                                                                              |   |   |   |   |   |   |   |
| Supplemental                    Disclosures of Cash Flow Information                                                              |   |   |   |   |   |  |   |
| Cash                    payments for:                                                                                             |   |   |  |   |   |   |   |
| Interest                                                                                                                          |   | **$** | **79** |   | $ | 29 |   |
| Income                    taxes                                                                                                   |   |   | **-** |   |   | 67 |   |
|                                                                                                                              |   |   |   |   |   |   |   |
| Acquisition                    of property under capital leases                                                                   |   | **$** | **167** |   | $ | - |   |

----

Table              of Contents

**Note        1. Basis of Presentation**

**Reclassifications:        **

**Note        2. Earnings Per Common Share**

**Note        3. Financing Arrangement**

----

Table              of Contents

**Note        4. Major Customers and Enterprise-wide Disclosures**

**Major        Customers: **

|                                                                                                                                                     |   | For                    the Quarter Ended March 31, |                                               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|----------------------------------------------------|
| Sales                    percentage:                                                                                                                     |   |                                               | 2007                                               |   |   | 2006 |   |
| Customer                    A                                                                                                                            |   |                                               | 21                                                 | % |   | 51 | % |
| Customer                    B                                                                                                                            |   |                                               | 20                                                 | % |   | 10 | % |
| Customer                    C                                                                                                                            |   |                                               | 15                                                 | % |   | 5 | % |
|                                                                                                                                                     |   |                                               |                                               |   |   |   |   |
| The                    Company had net receivables from the above customers at March                    31, 2007 and                    2006 as follows: |   |                                               |                                               |   |   |   |   |
|                                                                                                                                                     |   |                                               | For                    the Quarter Ended March 31, |   |
| Accounts                    receivable percentage:                                                                                                       |   |                                               | 2007                                               |   |   | 2006 |   |
| Customer                    A                                                                                                                            |   |                                               | 10                                                 | % |   | 41 | % |
| Customer                    B                                                                                                                            |   |                                               | 25                                                 | % |   | 0 | % |
| Customer                    C                                                                                                                            |   |                                               | 19                                                 | % |   | 5 | % |

**Enterprisewide        Disclosures: **

|                                                                                                             |   |   | For                    the Quarter Ended March 31,  |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                                                                             |   |   | 2007                                                     |   |   | 2006 |   |
| Proprietary                    microprocessors and mechanically controlled sensors and                    alarms |   | $      | 736,000                                                  |   | $ | 838,000 |   |
| Electronic                    controls and assemblies for OEM customers                                          |   |   | 8,419,000                                                |   |   | 7,233,000 |   |
| Engineering                    Design Services                                                                   |   |   | 128,000                                                  |   |   | 107,000 |   |
| Freight                    Out                                                                                   |   |   | 17,000                                                   |   |   | 21,000 |   |
|                                                                                                             |   | $      | 9,300,000                                                |   | $ | 8,199,000 |   |
|                                                                                                             |   |   |                                                     |   |   |   |   |

**Note        5. Allowance for Rework and Warranty Costs**

**Allowance        for Rework and Warranty Costs: **

----

Table              of Contents

**Note        5. Allowance for Rework and Warranty Costs**
**(Continued)**

|                                                               |   |   | For                    the Quarter Ended March 31,  |   |
|--------------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                               |   |   | 2007                                                     |   |   | 2006 |   |
| Balance,                    Beginning                              |   | $      | 126,000                                                  |   | $ | 117,000 |   |
| Accruals                    for products sold                      |   |   | 430,000                                                  |   |   | 1,000 |   |
| Expensing                    of specific warranty items            |   |   | (345,000                                                 | )      |   |   |   |
| Charges                    in accruals for pre-existing warranties |   |   | (20,000                                                  | )      |   | - |   |
| Balance,                    Ending                                 |   | $      | 191,000                                                  |   | $ | 118,000 |   |
|                                                               |   |   |                                                     |   |   |   |   |

**Note        6. Warrants and Stock-Based Compensation Plans**

**Warrants:**

----

Table              of Contents

**Note        6.**
**Warrants        and Stock-Based Compensation Plans (Continued)**

**Stock        option and employee stock purchase plans:**

----

Table              of Contents

**Note        6.**
**Warrants        and Stock-Based Compensation Plans (Continued)**

|                                       |   | As                    of March 31, |   |
|--------------------------------------------|--------|------------------------------------|--------|
|                                       |   |                               | 2007   |   |   | 2006 |   |
| Expected                    life, in years |   |                               | 4.99   |   |   | 4.95 |   |
| Expected                    volatility     |   |                               | 92.39  | % |   | 97.27 | % |
| Risk-free                    interest rate |   |                               | 4.12   | % |   | 3.94 | % |
| Dividend                    yield          |   |                               | 0.00   | % |   | 0.00 | % |

|                                                       |   |                       |    |                                  |   | Weighted-Average                     |   |
|------------------------------------------------------------|--------|----------------------------|---------|---------------------------------------|--------|--------------------------------------|--------|
|                                                       |   | Number                  of |    | Weighted-Average                      |   | Remaining                            |   |
|                                                       |   | Shares                     |    |  Exercise                  Price |   | Contract                  Life  |   |
| Outstanding                  options at January 1, 2007    |   |                       | 286,040 |                                  | $      | 2.95                                 |   |   |   |   |
| Granted                                                    |   |                       | 36,000  |                                  |   | 3.58                                 |   |   |   |   |
| Exercised                                                  |   |                       | (1,000  | )                                     |   | 2.93                                 |   |   |   |   |
| Forfeited                                                  |   |                       | (18,640 | )                                     |   | 3.50                                 |   |   |   |   |
| Outstanding                  options at March 31, 2007     |   |                       | 302,400 |                                  | $      | 2.99                                 |   |   | 4.4                  Yrs |   |
|                                                       |   |                       |    |                                  |   |                                 |   |   |   |   |
| Outstanding                  exercisable at March 31, 2007 |   |                       | 161,120 |                                  | $      | 2.76                                 |   |   | 3.1                  Yrs |   |
|                                                       |   |                       |    |                                  |   |                                 |   |   |   |   |

----

Table              of Contents

**Note        6.**
**Warrants        and Stock-Based Compensation Plans (Continued)**

|                                        |   | Options                    Outstanding |    | Options                    Exercisable                                 |   |
|---------------------------------------------|--------|----------------------------------------|---------|------------------------------------------------------------------------|--------|
| Range                    of Exercise Prices |   | Number                    of Shares    |    | Weighted-Average                    Remaining Contractual Life (Years) |   | Weighted-Average                    Exercise Price |   | Number                    of Shares |   | Weighted-Average                    Exercise Price |   |
| $0.45                    - $0.90            |   |                                   | 19,800  |                                                                   |   | 0.6 |   | $ | 0.64 |   |   | 19,800 |   | $ | 0.64 |   |
| $0.91                    - $1.34            |   |                                   | 11,000  |                                                                   |   | 1.5 |   |   | 1.27 |   |   | 8,800 |   |   | 1.27 |   |
| $1.35                    - $1.79            |   |                                   | 8,800   |                                                                   |   | 1.7 |   |   | 1.45 |   |   | 4,840 |   |   | 1.45 |   |
| $2.24                    - $2.69            |   |                                   | 41,300  |                                                                   |   | 1.7 |   |   | 2.37 |   |   | 30,380 |   |   | 2.37 |   |
| $2.70                    - $3.14            |   |                                   | 63,500  |                                                                   |   | 2.1 |   |   | 2.90 |   |   | 49,700 |   |   | 2.90 |   |
| $3.15                    - $3.58            |   |                                   | 90,000  |                                                                   |   | 7.1 |   |   | 3.43 |   |   | 3,600 |   |   | 3.43 |   |
| $3.58                    - $4.03            |   |                                   | 24,000  |                                                                   |   | 5.4 |   |   | 3.62 |   |   |   |   |   |   |   |
| $4.04                    - $4.48            |   |                                   | 44,000  |                                                                   |   | 7.2 |   |   | 4.26 |   |   | 44,000 |   |   | 4.26 |   |
|                                        |   |                                   | 302,400 |                                                                   |   | 4.4 |   | $ | 2.99 |   |   | 161,120 |   | $ | 2.76 |   |
|                                        |   |                                   |    |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |

**Note        7.**
**New        Accounting Standards**

----

Table              of Contents

**Note        7.**
**New        Accounting Standards - Continued**

*The        Fair Value Option for Financial Assets and Financial        Liabilities*
*Accounting        for Derivative Instruments and Hedging Activities*

----

Table            of Contents

**ITEM        2:** **MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS**

**Overview        **

**Executive        Summary**

***Net        sales***
***Gross        profit***
***Total        operating expenses***

**RESULTS        OF OPERATIONS**

----

Table            of Contents

----

Table            of Contents

----

Table            of Contents

|                                                   |   | 2007   |    | 2008   |   | 2009    |   | 2010   |    | 2011                    and thereafter |   | Total   |   |
|--------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|----------------------------------------|--------|---------|--------|
| Term                    Loans (including interest)     |   | $      | 402,000 |   | $      | 353,000 |   | $      | 189,000 |                                   | $      | 136,000 |   | $ | 516,000 |   | $ | 1,596,000 |   |
| Capital                    Leases (including interest) |   |   | 208,000 |   |   | 273,000 |   |   | 273,000 |                                   |   | 273,000 |   |   | 200,000 |   |   | 1,227,000 |   |
| Total                                                  |   | $      | 610,000 |   | $      | 626,000 |   | $      | 462,000 |                                   | $      | 409,000 |   | $ | 716,000 |   | $ | 2,823,000 |   |
|                                                   |   |   |    |   |   |    |   |   |    |                                   |   |    |   |   |   |   |   |   |   |

**FORWARD-LOOKING        STATEMENTS**

**ITEM        3.** **QUANTITATIVE        AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**ITEM        4.** **CONTROLS        AND PROCEDURES**

**Evaluation        of Disclosure Controls Procedures.**

**Changes        in Internal Control.**

----

Table            of Contents

**PART        II - OTHER INFORMATION**

**ITEM        1.** **LEGAL        PROCEEDINGS**

**ITEM        1A.** **RISK        FACTORS**

**ITEM        2.** **UNREGISTERED        SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**ITEM        3.** **DEFAULTS        UPON SENIOR SECURITIES**

**ITEM        4.** **SUBMISSION        OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM        5.** **OTHER        INFORMATION**

**ITEM        6. **
**EXHIBITS        **

----

Table            of Contents

**SIGNATURES**

|                                   |                                                                   |                                     |
|----------------------------------------|------------------------------------------------------------------------|------------------------------------------|
|                                   | **Winland                  Electronics, Inc.**                         |
|                              |                                                              |                                |
| Date: May                15, 2007 | By:                                                          | /s/ Lorin                E. Krueger |
|                                   | Lorin                E. Krueger, President and Chief Executive Officer |
|                                   | (Principal                Executive Officer)                           |
|                                                  |                                                        |                                                   |
|-------------------------------------------------------|-------------------------------------------------------------|--------------------------------------------------------|
|                                                  |                                                        |
|                                             |                                                   |                                              |
| Date: May                15,                2007 | By:                                               | /s/ Glenn                A.                Kermes |
|                                                  | Glenn                A. Kermes, Chief Financial Officer     |
|                                                  | (Principal                Financial and Accounting Officer) |

----

Table            of Contents

**SECURITIES        AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

**EXHIBIT        INDEX TO FORM 10-Q**

| For                  the fiscal quarter ended March 31, 2007 | Commission                  File No. 0-15637 |
|--------------------------------------------------------------|----------------------------------------------|

**WINLAND        ELECTRONICS, INC.**

**__________________________**

| Exhibit                  No. | Description                                                                                                                          |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                         |                                                                                                                                 |
| 31.1                         | Certification                  of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002 |
| 31.2                         | Certification                  of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002 |
| 32.1                         | Certification                  of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley                  Act of 2002 |
| 32.2                         | Certification                  of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley                  Act of 2002 |

----