**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
 __________________
 **FORM
        10-QSB**
 
 **QUARTERLY
        REPORT PURSUANT TO SECTION 13 OR 15(d) OF**
 **THE
        SECURITIES EXCHANGE ACT OF 1934**
 
 
 **For
                  the quarter ended**
              **Commission
                  File Number****March
                  31, 2007**
              **0-12969**
 
 **TOUCHSTONE
        SOFTWARE CORPORATION**
 **(Exact
        name of registrant as specified in its charter)**
 
 
 **Delaware**
              **95-3778226****(State
                  or other jurisdiction**
              **(I.R.S.
                  Employer****of
                  incorporation or organization)**
              **Identification
                  No.)****1538
                  Turnpike St., North Andover, Massachusetts**
              **01845****(Address
                  of principal executive offices)**
              **(Zip
                  Code)**
 
 
 **(978)
        686-6468**
 **(Registrant’s
        telephone number, including area code)**
 
 **None**
 **(Former
        name, former address and former**
 **fiscal
        year, if changed since last report)**
 
  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
        past 12 months (or for such shorter period that the registrant was required
        to
        file such reports), and (2) has been subject to such filing requirements
        for the
        past 90 days.
 Yes
x No 
        o
  The
        number of shares of Common Stock of the Registrant outstanding as of May
        11,
        2007 was 12,120,060
        shares.
 
 
 
  **TOUCHSTONE
          SOFTWARE CORPORATION AND SUBSIDIARY**
  INDEX
 **Page**
                  **Number****PART
                    I.**
                **Financial
                    Information****ITEM
                    1.**
                Financial
                    StatementsConsolidated
                    Balance Sheet3⁄4March 31, 2007
                3Consolidated
                    Income Statements3⁄4Three Months Ended March 31, 2007 andMarch
                    31, 2006
                4Consolidated
                    Statements of Cash Flows3⁄4Three Months Ended March 31, 2007and
                    March 31, 2006
                5Notes
                    to Consolidated Financial Statements
                6-7**ITEM
                    2.**
                Management’s
                    Discussion and Analysis of Financial Condition and Results
                    ofOperations
                7-10**ITEM
                    3.**
                Controls
                    and Procedures
                10**PART
                    II.**
                **Other
                    Information****ITEM
                    1.**
                Legal
                    Proceedings
                11**ITEM
                    2.**
                Changes
                    in Securities
                11**ITEM
                    3.**
                Defaults
                    Upon Senior Securities
                11**ITEM
                    4.**
                Submission
                    of Matter To a Vote of Security Holders
                11**ITEM
                    5.**
                Other
                    Information
                11**ITEM
                    6.**
                Exhibits
                    and Reports on Form 8-K
                11Signatures
                
                12Exhibits
                
                13-15
  2
 **TOUCHSTONE
          SOFTWARE CORPORATION AND SUBSIDIARY**
  **PART
          I - FINANCIAL INFORMATION**
  **ITEM
            1.  Financial Statements**
 **CONSOLIDATED
            BALANCE SHEET**
 **March
            31, 2007**
 **(unaudited)**
 
 **Assets**Current
                      assets:Cash
                      and cash
                      equivalents
                  
                  $
                  1,263,780Accounts
                      receivable,
                      net
                  
                  
                  5,388Inventories
                  
                  
                  12,911Prepaid
                      expenses and other
                      current assets
                  
                  
                  31,173Total
                      current assets
                  
                  
                  1,313,252Investments
                  
                  
                  184,527Property,
                      and equipment, net
                  
                  
                  408,307$
                  1,906,086**Liabilities
                      and Shareholders’ Equity**Current
                      liabilities:Accounts
                      payable
                  
                  $
                  77,418Accrued
                      payroll and related
                      expenses
                  
                  
                  84,254Other
                      accrued
                      expenses
                  
                  
                  66,040Current
                      maturities of long term debt
                  
                  
                  62,695Total
                      current liabilities
                  
                  
                  290,407Long
                      term debt, net of current maturities
                  
                  
                  103,932Total
                      liabilities
                  
                  
                  394,339Shareholders’
                      equity:Preferred
                      stock, $.001 par value,
                      3,000,000 sharesauthorized,
                      none issued or
                      outstandingCommon
                      stock, $.001 par value,
                      20,000,000 sharesauthorized;
                      issued and
                      outstanding, 11,940,060 shares
                  
                  
                  11,940Additional
                      paid-in
                      capital
                  
                  
                  21,037,691Accumulated
                      deficit
                  
                  
                  (19,537,884
                  )Shareholders’
                      equity, net.
                  
                  
                  1,511,747$
                  1,906,086
 
 
 
 
 
 The
            accompanying notes are an integral part of these consolidated financial
            statements.
 3
 **TOUCHSTONE
              SOFTWARE CORPORATION AND SUBSIDIARY**
 (**unaudited)**
 
 **Three
                      Months Ended**
                    **March
                      31,****2007**
                  
                  
                  **2006**Revenues:Product
                      sales
                  
                  $
                  1,087,035
                  
                  
                  $
                  767,297Website
                      income
                  
                  
                  14,991
                  
                  
                  
                  21,660Total
                      revenues
                  
                  
                  1,102,026
                  
                  
                  
                  788,957Cost
                      of revenues
                  
                  
                  31,919
                  
                  
                  
                  118,024Gross
                      profit
                  
                  
                  1,070,107
                  
                  
                  
                  670,933Operating
                      expenses:Sales,
                      marketing, general and
                      administrative
                  
                  
                  603,555
                  
                  
                  
                  330,785Research
                      and
                      development
                  
                  
                  137,837
                  
                  
                  
                  126,178Total
                      operating
                      expenses
                  
                  
                  741,392
                  
                  
                  
                  456,963Income
                      from operations
                  
                  
                  328,715
                  
                  
                  
                  213,970Interest
                      income (expense), net
                  
                  
                  4,876
                  
                  
                  
                  (7,815
                  )Income
                      before provision for state income taxes
                  
                  
                  333,591
                  
                  
                  
                  206,155Provision
                      for state income taxes
                  
                  
                  23,368
                  
                  
                  
                  —Net
                      Income
                  
                  $
                  310,225
                  
                  
                  $
                  206,155Basic
                      earnings per share
                  
                  $
                  0.03
                  
                  
                  $
                  0.02Basic
                      weighted average shares outstanding
                  
                  
                  11,940,060
                  
                  
                  
                  11,940,060Diluted  earnings
                      per share
                  
                  $
                  0.03
                  
                  
                  $
                  0.02Diluted
                      weighted average shares outstanding
                  
                  
                  11,940,060
                  
                  
                  
                  11,940,060
 
 
  
 
 
 
 
 
 The
            accompanying notes are an integral part of these consolidated financial
            statements.
 
 4
 **TOUCHSTONE
              SOFTWARE CORPORATION AND SUBSIDIARY**
  **CONSOLIDATED
            STATEMENTS OF CASH FLOWS**
 **(unaudited)**
 
 **Three
                      months ended**
                    **March
                      31,****2007**
                  
                  
                  **2006**Cash
                      flows from operating activities:Net
                      income
                  
                  $
                  310,223
                  
                  
                  $
                  206,155Adjustments
                      to reconcile net
                      income to net cash provided by operating activities:Depreciation
                  
                  
                  27,285
                  
                  
                  
                  22,434Stock
                      option compensation
                  
                  
                  9,110Changes
                      in assets and liabilities:Accounts
                      receivable
                  
                  
                  6,761
                  
                  
                  
                  7,821Inventories
                  
                  
                  1,786
                  
                  
                  
                  4,131Prepaid
                      expenses and other current assets
                  
                  
                  (18,658
                  )
                  
                  
                  (3,604
                  )Accounts
                      payable
                  
                  
                  16,235
                  
                  
                  
                  (11,261
                  )Accrued
                      liabilities
                  
                  
                  (13,623
                  )
                  
                  
                  5,714Net
                      cash provided by operating
                      activities
                  
                  
                  339,119
                  
                  
                  
                  231,390Cash
                      flows from investing activities:Collection
                      of notes receivable – related party
                  
                  
                  —
                  
                  
                  
                  8,427Additions
                      to Property and
                      Equipment
                  
                  
                  —
                  
                  
                  
                  (14,914
                  )Net
                      cash (used in) investing
                      activities
                  
                  
                  
                  
                  
                  
                  (6,487
                  )Net
                      increase in cash and cash equivalents
                  
                  
                  339,119
                  
                  
                  
                  224,903Cash
                      and cash equivalents, beginning of period
                  
                  
                  924,661
                  
                  
                  
                  221,426Cash
                      and cash equivalents, end of period.
                  
                  $
                  1,263,780
                  
                  
                  $
                  446,329Supplemental
                      disclosure of cash flow information:Cash
                      paid during the period
                      for:Interest
                  
                  $
                  —
                  
                  
                  $
                  —Income
                      taxes
                  
                  $
                  —
                  
                  
                  $
                  —
 
 
  
 
 
 The
            accompanying notes are an integral part of these consolidated financial
            statements
 
 5
 TOUCHSTONE SOFTWARE CORPORATION AND
            SUBSIDIARY
 
 **Notes
            to Consolidated Financial Statements**
  **1.**
                    **S****ummary
                        of Significant Accounting
                        Policies**
  **Nature
              of Operations****.**  TouchStone Software
              Corporation and its subsidiary (“TouchStone”
              or the “Company”)
              markets, and supports a line of computer prob­lem-solving utility software
              and supporting products and engineering services which sim­plify personal
              computer installation, support, and mainte­nance.  TouchStone
              operates from one location in the United States.  The Company markets
              its products, domestically and internationally, directly to original
              equipment
              manufacturers and end users.
 
 **Principles
            of Consolidation**.  The consolidated financial statements of
            the Company include the financial statements of the Company’s wholly-owned
            subsidiary; eSupport.com, Inc.. All inter-company transactions and balances
            have
            been eliminated.
 
 **Basis
            of Presentation.**   The accompanying unaudited
            consolidated financial statements have been prepared by the Company pursuant
            to
            the rules and regulations of the Securities and Exchange Commission regarding
            interim financial reporting.  Accordingly, they do not include all of
            the information and footnotes in accordance with generally accepted accounting
            principles for complete financial statements and should be read in conjuction
            with the audited financial statements included in the Company’s Annual Report on
            Form 10-KSB for the year ended December 31, 2006  In the opinion of
            management, the accompanying unaudited financial statements contain all
            adjustments necessary for fair presentation of the Company’s financial position,
            results of operations and cash flows at the dates and for the periods
            presented.  Such adjustments consisted only of normal recurring
            items.
 
 The
            operating results for the three months ended March 31, 2007 are not necessarily
            indicative of the results to be expected for the full year.
 
 **2.**
                  **Earnings
                      Per Share**
 
 Pursuant
            to Statement of Financial
            Accounting Standards No. 128, “*Earnings Per Share”* (SFAS 128), the
            Company provides dual presentation of “Basic” and “Diluted” Earnings Per Share
            (EPS). Basic EPS excludes dilution from common stock equivalents and
            is computed
            by dividing income available to common stockholders by the weighted average
            number of common shares outstanding for the period.  Diluted EPS
            reflects the potential dilution from common stock equivalents.  Common
            stock equivalents consisted of outstanding stock options for the periods
            ended
            March 31, 2007 and 2006.
 
 3.
                  **Investments**
 
 Investments
            at March 31, 2007, include
            equity instruments of privately held internet and technology companies.
            These
            investments are accounted for under the cost method as the Company’s
            ownership
            represents less than 20% of each investee. The Company’s carrying value of these
            investments approximates fair value at March 31, 2007.
 
 The
            Company regularly reviews the assumptions underlying the operating performance
            and cash flow forecasts in assessing carrying value and or impairment
            of its
            investments.  At March 31, 2007, the Company has concluded there has
            been no further decline in the value of these investments, therefore
            no
            adjustment has been made to these investments during the quarter.
 
 **4.**
                  **StateIncome
                      Tax**
 
 A
            provision for state income tax of
            $23,368 has been provided for in the accompanying consolidated income
            statement
            for the three months ended March 31, 2007. The Company’s state net operating
            loss carryforwards have either expired or have been fully used to offset
            the
            Company’s state taxable income. No provision for income
  6
 **TOUCHSTONE
            SOFTWARE CORPORATION AND SUBSIDIARY**
  taxes
            is
            shown in accompanying financial statement for the three months ended
            March 31,
            2006. The Company has sufficent federal operating loss carryforwards
            to offset
            current federal taxable income.
 
 5.
                  **Stock
                      Options**
 
 Effective
            January 1, 2006, the Company
            adopted the fair value method, which is considered the preferable accounting
            method, of recording stock-based employee compensation as contained in
            (SFAS)
            No. 123 (Revised December 2004).  As prescribed is SFAS No. 148,
“Accounting for Stock-Based Compensation-Transition and Disclosure”, the Company
            elected to use the “prospective method.” The prospective method requires expense
            to be recognized for all awards granted, modified or settled beginning
            in the
            year of adoption. Historically, the Company applied the intrinsic method
            as
            provided in Accounting Principles Board Opinion No. 25, “Accounting for Stock
            Issued to Employees” and related interpretations and accordingly, no
            compensation cost had been recognized for stock options in prior periods.
            As a
            result of adopting the fair value method for stock compensation, all
            future
            awards will be expensed over the stock options’ vesting period.
 
 On
            May 5, 2006, the Board of Directors
            of the Company voted to issue options to acquire 250,000 shares of common
            stock
            for the exercise price of $.34.  In accordance with SFAS 123(R), the
            Company recorded compensation expense of $9,110 during the quarter ended
            March
            31, 2007.
 
 
 6.
                  **Subsequent
                      Events**
 
 On
            April 10, 2007 the Company acquired
            a suite of Windows® based tools that enables a user to enhance and maintain a
            PC. These tools include a utility to monitor and maintain the Windows® registry,
            a hard drive cleanup utility and a utility to modify and maintain the
            Windows®
startup process.  The Company agreed to purchase the Software for the
            aggregate of $150,000 and 180,000 shares of the Company’s unregistered common
            stock.  The terms of the cash payments are as follows:
 
 On
                    the date of the closing
                  $30,000Upon
                    delivery of first software product
                  $40,000Upon
                    delivery of second software product
                  $40,000Upon
                    deliver of third software product
                  $40,000
  At
            the closing, which occurred on April
            11, 2007, 180,000 shares were issued and will be held by the Company
            and shall
            be released in installments of 60,000 shares upon the delivery by Seller
            of each
            of the software products.
 
 **ITEM
            2.   Management’s Discussion and Analysis of Financial Condition
            and Results of Operations**
 
 **Overview**
 
 TouchStone
            Software Corporation, Inc.
            and its consolidated subsidiary, (“TouchStone” or “the Company”) is a software
            developer for the personal computer industry, specializing in system
            update
            technology. In addition, TouchStone Software Corporation owns and operates
            a
            vast network of Internet web properties. Our growing portfolio of Internet
            properties serve as the main outlet to deliver our quality software products
            to
            our mass audience. These products include our newest product Driver Agent
            and
            BIOS Agent.
 
 The
            Company acquired two strategic web
            properties in 2005, www.totallydrivers.com and www.driversdb.com, and
            another
            two in 2006, www.driverzone.com and www.mrdriver.com. The addition of
            these
            properties, along with the existing properties of www.esupport.com and
            www.award-bios.com, supply the Company with a strategic edge to aggregate
            customer Internet traffic.  The increase in customer Internet traffic
            enhances the Company’s ability to market its products effectively as these
            properties propagate throughout the Internet, helping the Company to
            become a
            premier destination for critical system updates. The increase in traffic
            from
            these properties reduces the*need for*
  7
 **TOUCHSTONE
            SOFTWARE CORPORATION AND SUBSIDIARY**
  other
            costly avenues of marketing.  The newly acquired properties also
            generate advertising revenue through various sources. The Company continues
            to
            seek media properties to add their ever-growing portfolio.
 
 In
            December 2005 the Company introduced
            Driver Agent.  The Driver Agent technology is based on TouchStone’s
            UpdateFX scan, analyze, search and update architecture, which was purchased
            during 2005.  Driver Agent’s comprehensive technology enables users to
            easily and safely determine if and when critical updates are available
            for their
            PC’s. Through an ActiveX control, Driver Agent will safely scan a user’s PC,
            provide a detailed hardware report and then allow the user to view complete
            device driver history of installed devices on their system. Driver Agent
            cross
            references the user’s hardware and driver report to a comprehensive proprietary
            database compiled of greater than 110,000 updated device drivers. Subscribers
            to
            the Driver Agent service can then quickly and safely download the latest
            device
            drivers for their PC.
 
 The
            Company’s other product is BIOS
            upgrades. The BIOS, which is the software initially executed after the
            system is
            turned on, tests and initializes hardware components, initiates the operating
            system and then provides advanced interface functions.  BIOS software
            upgrades allow end-users of desktop PCs to extend the life of their systems
            and
            reduce the overall ownership cost of a PC.
 
 In
            January 2000, the Company formed
            eSupport.com, Inc. (a New Hampshire Corporation), a wholly-owned subsidiary,
            which currently conducts the day to day operations of the
            Company.  During the past several years, eSupport has grown into a
            full-service engineering company supplying not only BIOS software upgrades,
            but
            also PC diagnostics software.  As the evolution of software and
            hardware has become more complex, the need for compatibility has increased
            in
            importance.  eSupport believes that its experience and customer focus
            allow it to quickly identify solutions and market products compatible
            with the
            array of operating systems, application programs, utilities and hardware
            products available.
 
 **Industry
            Overview**
 
 During
            the last decade, the personal computer industry has grown rapidly – fueled most
            recently by the Internet.  The Company believes that the market will
            continue to expand in the future as technological advances and increased
            functionality, combined with lower pricing, will increasingly make personal
            computers common for use in both homes and businesses.  Future changes
            in the operating systems that run personal computers may contain some
            of the
            functionality of certain utility software of the kind marketed by the
            Company.  The software industry, including the utility market, is
            increasingly being dominated by a few very large
            competitors.  However, the Company believes that the complexities
            created by the Internet, multimedia and connectivity utilizing enhanced
            video,
            stor­age, animation, and audio capabilities will continue to drive the
            demand for new, sophisticated, separately installed utility soft­ware and
            BIOS upgrades.
 
  **Results
            of Operations**
  The
            following is a discussion of the
            financial condition and results of operations of the Company as of March
            31,
            2007 and 2006 and should be read in conjunction with the accompanying
            consolidated financial statements and notes thereto and the Company’s audited
            consolidated financial statements and notes thereto for the year ended December
            31, 2006, included in the Company’s Annual Report on Form 10-KSB and is
            qualified in its entirety by reference thereto.
 
 The
            following table sets forth, for the
            periods indicated, certain consolidated statement of operations information
            as a
            percentage of the Company’s total revenues represented by each
            item.  The Company’s historical results are not necessarily indicative
            of results in any future period.
 
 8
 TOUCHSTONE SOFTWARE CORPORATION AND
            SUBSIDIARY
 
 **Three
                      Months ended**
                  **Three
                      Months ended****March
                      31,**
                  **March
                      31,****2007**
                  **2006**Revenues:Product
                      sales
                  99%
                  97%Website
                      income
                  1
                  3Total
                      revenues
                  100
                  100Cost
                      of revenues
                  3
                  15Gross
                      profit
                  97
                  85Operating
                      expenses:Sales,
                      marketing, general andadministrative
                  55
                  42Research
                      and development
                  12
                  16Total
                      operating expenses
                  67
                  58Income
                      from operations
                  30
                  27Interest
                      income (expense), net
                  0
                  (1)Provision
                      for state income tax
                  2
                  0Net
                      income
                  28%
                  26%
 
  **Comparison
            of Three Month Periods Ended March 31, 2007  and
            2006**
 
 ***Revenues*****.**The
            Company’s revenues consist of product sales, web advertising income and
            engineering services revenues. Product revenues are recorded at the time
            products are shipped.  Web advertising income is recognized upon
            receipt of a usage report from the advertiser.  For the three months
            ended March 31, 2007, the Company experienced an overall increase in
            product
            sales of approximately 40% as compared to the same period a year
            ago.   The increase in revenue is due to the substantial success
            of Driver Agent.  Web advertising income decreased 31% due to some
            restructuring of the sites and their campaigns. The income is derived
            from
            various clients who pay for advertising space on the websites the Company
            owns.  That income is earned monthly.
 
 ***Cost
            of Revenues.*** Cost of revenues consists of the cost of materials,
            freight expenses, royalties paid to other software development companies
            and
            direct costs associated with engineering services. Cost of revenues as
            a
            percentage of revenue decreased to 3% of revenues for the three month
            period
            ended March 31, 2007 from 15% for the same period a year ago.  This is
            due mainly to a decrease in physical products being shipped to customers
            and
            almost no costs associated with selling the DriverAgent product.
 
 ***Sales,
            Marketing, General and
            Administrative*****.**  Sales, marketing,
            general and administrative expenses consist primarily of salaries &
commissions, professional services, advertising costs and facilities
            costs.  Sales, marketing, general and administrative expenses
            increased approximately 82%, for the three month period ended March 31,
            2007,
            from the same period one year ago.  This is due to an increase in
            advetising expenses related to the payments made to our strategic
            vendors.
 
 ***Research
            and Development*****.**  Research and
            development expenses consist primarily of engineering personnel and related
            expenses.  Research and development expenses increased approximately
            9% for the three month period ended March 31, 2007 from the same period
            one year
            ago.  This is due to payroll increasing slightly from annual
            increases.
 
 9
 TOUCHSTONE SOFTWARE CORPORATION AND
            SUBSIDIARY
 
 **Liquidity
            and Capital Resources**
 
 During
            the three months ended March 31, 2007, the Company had cash provided
            by
            operating activities of approximately $339,100 as compared to cash provided
            by
            operating activities of approximately $231,000 during the same three
            month
            period a year ago.  The main factor of this increase in cash flow is
            the net income the Company has had through the first three months of
            2007.
 
 The
            Company’s cash balance at March 31,
            2007 was approximately $1,264,000 as compared to approximately $446,000
            a year
            ago.
 
 The
            impact of inflation during 2007 has had no material impact on our business
            and
            financial results.
 
 
 ***SPECIAL
            NOTE REGARDING FORWARD-LOOKING STATEMENTS***
 
 The
            report, other than historical financial information, includes forward-looking
            statements that involve known and unknown risks and uncertainties, including
            quarterly flucuations in results.  Such statements are made pursuant
            to the “safe harbor” provisions established by recent securities legislations,
            and are based on the assumptions and expectations of the Company’s management at
            the time such statements are made.  Important factors that could cause
            actual results to differ include the timely availability and acceptance
            of new
            products, general market conditions governing supply and demand, the
            impact of
            competitive products and pricing and other risks detailed in the Company’s
            filings with the Securities and Exchange Commission.  Actual results
            may vary materially.  Accordingly you should not place undue reliance
            on any forward-looking statements.  Unless otherwise required by law,
            the Company disclaims any obligations to revise or update such forward-looking
            statements in order to reflect future events or developments.
  **ITEM
              3.   Controls and Procedures**
  As
            of March 31, 2007, an evaluation was
            performed under the supervision and with the participation of the Company’s
            management, including the Chief Executive Officer and the Accounting
            Manager, of
            the effectiveness of the design and operation of the Company’s disclosure
            controls and procedures.  Based on that evaluation, the Company’s
            management, including the Chief Executive Officer and the Accounting
            Manager,
            concluded that the Company’s disclosure controls and procedures were effective
            as of  March 31, 2007.  There have been no significant
            changes in the Company’s internal controls or in other factors that could
            significantly affect internal controls subsequent to March 31,
            2007.
 
  
  
  10
 TOUCHSTONE SOFTWARE CORPORATION AND
            SUBSIDIARY
   **PART
            II3⁄4OTHER
            INFORMATION**
  **ITEM
            1.  Legal Proceedings**
 None
 
 **ITEM
            2.  Changes in Securities**
 None
 
 **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 and Reports on Form 8-K**
 
 (a)  Exhibits
  Exhibit
            31.1 Certification Pursuant to
            Rule 13a-14 of the Securities Exchange Act of 1934
 Exhibit
            31.2 Certification Pursuant to
            Rule 13a-14 of the Securities Exchange Act of 1934
 Exhibit
            32 Certifications Pursuant to
            Rule 13a-14(b) of the Securities Exchange Act of 1934
 
 (b)  Reports
            on Form
            8-K
 
 On
            January 18, 2007, the Company filed a current report on Form 8-K to announce
            the
            launch of the Company’s Vista Agent, it’s new Vista readiness test and
            advisor.
 
 On
            March 21, 2007,
            the Company filed a current report on Form 8-K to discloseresults
            of operations and financial conditions for the year ended 2006
 
 On
            April
            18, 2007, the Company filed a current report on Form 8-K to announce
            the
            purchase of the a suite of Windows® based tools to enhance a user’s
            PC.
 
 On
            April
            26, 2007, the Company filed a current report on Form 8-K to announce
            disclose
results ofoperations
            and
            financial conditions for the 1st quarter of 2007
 11
 **TOUCHSTONE
              SOFTWARE CORPORATION AND SUBSIDIARY**
  **SIGNATURES**
 
 **In
            accordance with the requirements of the Exchange Act, the registrant
            caused this
            report to be signed on its behalf by the undersigned, thereunto duly
            authorized.**
  **TouchStone
                        Software Corporation**
                      (Registrant)
 **Name**
                    **Title**
                    **Date**/s/
                        Jason K. Raza
                      **Jason
                        K. Raza**
                    Chief
                        Executive Officer and President
                    May
                        11, 2007/s/
                        Michelle L. Carrozzella
                      **Michelle
                        L. Carrozzella**
                    Accounting
                        Manager
                    May
                        11, 2007
  
 ****  ****
 12