| For      the Quarter Ended: | March      31, 2008 |
|-----------------------------|---------------------|

| For      the transition period from _____________________ to      ____________________._________________ |
|----------------------------------------------------------------------------------------------------------|

| 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 o | Smaller Reporting      Company þ |
|--------------------------------|--------------------------|------------------------------|---------------------------------------|

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TABLE OF CONTENTS

| PART I – FINANCIAL INFORMATION                                                                     |
|----------------------------------------------------------------------------------------------------------|
| ITEM 1. FINANCIAL STATEMENTS                                                                             |
| BALANCE SHEETS                                                                                           |
| CONDENSED STATEMENTS OF OPERATIONS FOR THREE MONTHS ENDED      MARCH 31, 2008                            |
| CONDENSED STATEMENTS OF CASH FLOWS                                                                       |
| 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                                                                                               |
| EXHIBITINDEX                                                                                             |

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Table of Contents

PART I – FINANCIAL INFORMATION

 FINANCIAL STATEMENTS

| WINLAND      ELECTRONICS, INC.                                                                        |
|-------------------------------------------------------------------------------------------------------|
| CONDENSED      BALANCE SHEETS                                                                         |   |
| (In      Thousands of Dollars)                                                                        |   |
|                                                                                                  |   |   |   |   |   |   |
| ASSETS                                                                                                |   | March      31, 2008 |   |   | December      31, 2007 |   |
|                                                                                                  |   | (Unaudited) |   |   |   |   |
| Current Assets                                                                                        |   |   |   |   |   |   |
|  Cash                                                                                            |   | $ | 626 |   |   | $ | 1,152 |   |
|  Accounts      receivable, less allowance for doubtful accounts of $25                           |   |   | 3,224 |   |   |   | 3,436 |   |
|  Refundable      income taxes                                                                    |   |   | 522 |   |   |   | 389 |   |
|  Inventories                                                                                     |   |   | 4,751 |   |   |   | 4,708 |   |
|  Prepaid      expenses and other assets                                                          |   |   | 382 |   |   |   | 253 |   |
|  Deferred      income taxes                                                                      |   |   | 479 |   |   |   | 400 |   |
|  Total      current assets                                                                       |   |   | 9,984 |   |   |   | 10,338 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  Property      and equipment at cost                                                             |   |   | 11,867 |   |   |   | 11,827 |   |
|  Less      accumulated depreciation                                                              |   |   | (6,614 | ) |   |   | (6,410 | ) |
|  Net      property and equipment                                                                 |   |   | 5,253 |   |   |   | 5,417 |   |
|  Total      assets                                                                               |   | $ | 15,237 |   |   | $ | 15,755 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  LIABILITIES      AND STOCKHOLDERS' EQUITY                                                       |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  Current      Liabilities                                                                        |   |   |   |   |   |   |   |   |
|  Current      maturities of long-term debt                                                       |   | $ | 458 |   |   | $ | 512 |   |
|  Accounts      payable                                                                           |   |   | 1,842 |   |   |   | 1,729 |   |
|  Accrued      expenses:                                                                          |   |   |   |   |   |   |   |   |
|  Compensation                                                                                    |   |   | 583 |   |   |   | 733 |   |
|  Allowance      for rework and warranty costs                                                    |   |   | 165 |   |   |   | 160 |   |
|  Other                                                                                           |   |   | 231 |   |   |   | 219 |   |
|  Total      current liabilities                                                                  |   |   | 3,279 |   |   |   | 3,353 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  Long      Term Liabilities                                                                      |   |   |   |   |   |   |   |   |
|  Long-term      debt, less current maturities                                                    |   |   | 1,354 |   |   |   | 1,471 |   |
|  Deferred      income taxes                                                                      |   |   | 282 |   |   |   | 282 |   |
|  Deferred      revenue                                                                           |   |   | 137 |   |   |   | 138 |   |
|  Other      long term tax liabilities                                                            |   |   | 129 |   |   |   | 129 |   |
|  Total      long-term liabilities                                                                |   |   | 1,902 |   |   |   | 2,020 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  Stockholders'      Equity                                                                       |   |   |   |   |   |   |   |   |
| Common      stock, par value $0.01 per share; authorized 20,000,000                                   |   |   |   |   |   |   |   |   |
| shares;      issued and outstanding 3,640,741 shares as of March 31, 2008 and December      31, 2007. |   |   | 36 |   |   |   | 36 |   |
|  Additional      paid-in capital                                                                 |   |   | 4,745 |   |   |   | 4,691 |   |
|  Retained      earnings                                                                          |   |   | 5,275 |   |   |   | 5,655 |   |
|  Total      stockholders' equity                                                                 |   |   | 10,056 |   |   |   | 10,382 |   |
|  Total      liabilities and stockholders' equity                                                 |   | $ | 15,237 |   |   | $ | 15,755 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
|  See Notes to      Condensed Financial Statements                                                |   |   |   |   |   |   |   |   |

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| WINLAND      ELECTRONICS, INC.                             |   |
|------------------------------------------------------------|--------|
| CONDENSED      STATEMENTS OF OPERATIONS                    |   |
| (In      Thousands, Except Share and Per Share Amounts)    |   |
| (Unaudited)                                                |   |
|                                                       |   |   |   |   |   |   |
|                                                       |   | For      the Three Months Ended March 31, |
|                                                       |   | 2008 |   |   | 2007 |   |
| Net sales                                                  |   | $ | 7,033 |   |   | $ | 9,300 |   |
| Cost      of sales                                         |   |   | 6,422 |   |   |   | 8,428 |   |
| Gross      profit                                          |   |   | 611 |   |   |   | 872 |   |
|                                                       |   |   |   |   |   |   |   |   |
| Operating      expenses:                                   |   |   |   |   |   |   |   |   |
| General      and administrative                            |   |   | 617 |   |   |   | 630 |   |
| Sales      and marketing                                   |   |   | 340 |   |   |   | 251 |   |
| Research      and development                              |   |   | 223 |   |   |   | 333 |   |
| Total      operating expenses                              |   |   | 1,180 |   |   |   | 1,214 |   |
|                                                       |   |   |   |   |   |   |   |   |
| Operating      loss                                        |   |   | (569 | ) |   |   | (342 | ) |
|                                                       |   |   |   |   |   |   |   |   |
| Interest      Expense and Other:                           |   |   |   |   |   |   |   |   |
| Interest      expense                                      |   |   | (34 | ) |   |   | (81 | ) |
| Other      income, net                                     |   |   | 12 |   |   |   | 13 |   |
| Total      other income (expense)                          |   |   | (22 | ) |   |   | (68 | ) |
|                                                       |   |   |   |   |   |   |   |   |
| Loss      before income taxes                              |   |   | (591 | ) |   |   | (410 | ) |
|                                                       |   |   |   |   |   |   |   |   |
| Income      tax benefit                                    |   |   | 211 |   |   |   | 143 |   |
| Net      loss                                              |   | $ | (380 | ) |   | $ | (267 | ) |
|                                                       |   |   |   |   |   |   |   |   |
| Loss      per common share:                                |   |   |   |   |   |   |   |   |
| Basic                                                      |   | $ | (0.10 | ) |   | $ | (0.07 | ) |
| Diluted                                                    |   | $ | (0.10 | ) |   | $ | (0.07 | ) |
|                                                       |   |   |   |   |   |   |   |   |
| Weighted-average      number of common shares outstanding: |   |   |   |   |   |
| Basic      and diluted                                     |   |   | 3,640,741 |   |   |   | 3,600,347 |   |
|                                                       |   |   |   |   |   |   |   |   |
|  See Notes to      Condensed Financial Statements     |   |   |   |   |   |   |   |   |

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| WINLAND      ELECTRONICS, INC.                                   |   |
|------------------------------------------------------------------|--------|
| CONDENSED      STATEMENTS OF CASH FLOWS                          |   |
| (In      Thousands of Dollars)                                   |   |
| (Unaudited)                                                      |   |
|                                                             |   | For      the Three Months Ended March 31, |   |
|                                                             |   | 2008 |   |   | 2007 |   |
| Cash      Flows From Operating Activities                        |   |   |   |   |   |   |
|  Net loss                                                   |   | $ | (380 | ) |   | $ | (267 | ) |
|  Adjustments      to reconcile net loss to net cash used in |   |   |   |   |   |   |   |   |
|  operating      activities:                                 |   |   |   |   |   |   |   |   |
|  Non-cash      stock based compensation                     |   |   | 54 |   |   |   | 31 |   |
|  Depreciation      and amortization                         |   |   | 204 |   |   |   | 224 |   |
|  Consulting      expense, non-cash warrant expense          |   |   | - |   |   |   | 22 |   |
|  Deferred      tax assets                                   |   |   | (79 | ) |   |   | - |   |
|  Changes      in assets and liabilities:                    |   |   |   |   |   |   |   |   |
|  Accounts      receivable                                   |   |   | 212 |   |   |   | 206 |   |
|  Refundable      income taxes                               |   |   | (133 | ) |   |   | (50 | ) |
|  Inventories                                                |   |   | (43 | ) |   |   | (528 | ) |
|  Prepaid      expenses                                      |   |   | (129 | ) |   |   | (90 | ) |
|  Accounts      payable                                      |   |   | 113 |   |   |   | (86 | ) |
|  Accrued      expenses, including deferred revenue and      |   |   |   |   |   |   |   |   |
|  other      long term tax liabilities                       |   |   | (134 | ) |   |   | (51 | ) |
|  Net      cash used in operating activities                 |   |   | (315 | ) |   |   | (589 | ) |
|                                                             |   |   |   |   |   |   |   |   |
|  Cash      Flows From Investing Activities                  |   |   |   |   |   |   |   |   |
|  Purchases      of property and equipment                   |   |   | (40 | ) |   |   | (118 | ) |
|                                                             |   |   |   |   |   |   |   |   |
|  Cash      flows From Financing Activities                  |   |   |   |   |   |   |   |   |
|  Net      borrowings on revolving line of credit            |   |   | - |   |   |   | 812 |   |
|  Payments      on long-term borrowings, including capital   |   |   |   |   |   |   |   |   |
|  lease      obligations                                     |   |   | (171 | ) |   |   | (159 | ) |
|  Proceeds      from issuance of common stock                |   |   | - |   |   |   | 3 |   |
|  Net      cash provided by (used in) financing activities   |   |   | (171 | ) |   |   | 656 |   |
|                                                             |   |   |   |   |   |   |   |   |
|  Net      decrease in cash                                  |   |   | (526 | ) |   |   | (51 | ) |
|                                                             |   |   |   |   |   |   |   |   |
|  Cash                                                       |   |   |   |   |   |   |   |   |
|  Beginning                                                  |   |   | 1,152 |   |   |   | 51 |   |
|  Ending                                                     |   | $ | 626 |   |   | $ | - |   |
|                                                             |   |   |   |   |   |   |   |   |
|  Supplemental      Disclosures of Cash Flow Information     |   |   |   |   |   |   |   |   |
|  Cash      payments for:                                    |   |   |   |   |   |   |   |   |
|  Interest                                                   |   | $ | 34 |   |   | $ | 79 |   |
|                                                             |   |   |   |   |   |   |   |   |
|  Acquisition      of property under capital leases          |   | $ | - |   |   | $ | 167 |   |
|                                                             |   |   |   |   |   |   |   |   |
|  See      Notes to Condensed Financial Statements           |   |   |   |   |   |   |   |   |

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Note1.
 

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| WINLAND      ELECTRONICS, INC.         |   |
|----------------------------------------|--------|
| SEGMENT      REPORTING                 |   |
| (Unaudited)                            |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| ($      in thousands)                  |   | EMS |   |   | Proprietary |   |   | Other |   |   | Total |   |
| Three      months ended March 31, 2008 |   |   |   |   |   |   |   |   |   |   |
| Net      sales                         |   | $ | 6,163 |   |   | $ | 870 |   |   | $ | - |   |   | $ | 7,033 |   |
| Operating      income (loss)           |   |   | 29 |   |   |   | 19 |   |   |   | (617 | ) |   |   | (569 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2007 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales                         |   | $ | 8,552 |   |   | $ | 748 |   |   | $ | - |   |   | $ | 9,300 |   |
| Operating      income (loss)           |   |   | 304 |   |   |   | (16 | ) |   |   | (630 | ) |   |   | (342 | ) |

|                                                                                                                                              |   | For      the Three Months Ended March 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
| Sales      percentage:                                                                                                                            |   | 2008                                      |   | 2007 |   |
|    Customer      A                                                                                                                 |   | 28%                                       |   | 20% |   |
|    Customer      B                                                                                                                 |   | 16%                                       |   | 15% |   |
|    Customer      C                                                                                                                 |   | 15%                                       |   | 21% |   |
|                                                                                                                                              |   |                                      |   |   |   |
| The      Company had net receivables (as a percentage of total receivables) from      the above customers at March 31, 2008 and 2007 as  follows: |
|                                                                                                                                              |   |                                      |   |   |   |
| Accounts      receivable percentage:                                                                                                              |   | 2008                                      |   | 2007 |   |
|    Customer      A                                                                                                                 |   | 28%                                       |   | 25% |   |
|    Customer      B                                                                                                                 |   | 20%                                       |   | 19% |   |
|    Customer      C                                                                                                                 |   | 7%                                        |   | 10% |   |
|                                                                                                                                              |   |                                      |   |   |   |

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|                  |   |                |   |   |                   |   |
|-----------------------|--------|---------------------|--------|--------|------------------------|--------|
| ($      in thousands) |   | March      31, 2008 |   |   | December      31, 2007 |   |
| Raw      materials    |   | $                   | 3,317  |   |                   | $      | 3,467 |   |
| Work      in progress |   |                | 280    |   |                   |   | 293 |   |
| Finished      goods   |   |                | 1,154  |   |                   |   | 948 |   |
| Total                 |   | $                   | 4,751  |   |                   | $      | 4,708 |   |
|                  |   |                |   |   |                   |   |   |   |

|                                      |   | For      the Three Months Ended March 31, |   |
|-------------------------------------------|--------|-------------------------------------------|--------|
| ($      in thousands)                     |   | 2008                                      |   |   | 2007 |   |
| Balance,      Beginning                   |   | $                                         | 160    |   |   | $ | 126 |   |
| Accruals      for products sold           |   |                                      | 102    |   |   |   | 430 |   |
| Expensing      of specific warranty items |   |                                      | (97    | ) |   |   | (365 | ) |
| Balance,      Ending                      |   | $                                         | 165    |   |   | $ | 191 |   |

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OVERVIEW

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ITEM3.   
QUANTITATIVE ANDQUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM4.  
     CONTROLSAND PROCEDURES

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PART II –

 LEGALPROCEEDINGS

RISKFACTORS

   UNREGISTEREDSALES OF EQUITY SECURITIES AND USE OF PROCEEDS

DEFAULTS UPON SENIORSECURITIES

  SUBMISSION OFMATTERS TO A VOTE OF SECURITY HOLDERS

 OTHERINFORMATION

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SIGNATURES

|                         | Winland      Electronics, Inc. |                                       |
|------------------------------|--------------------------------|--------------------------------------------|
|                         |                           |                                       |   |
| Date:       May 2, 2008 | By:                            | /s/ Thomas      J. de Petra           |   |
|                         |                           | Thomas      J. de Petra                    |   |
|                         |                           | President      and Chief Executive Officer |   |
|                         |                           |                                       |   |

|   |   |                          |
|--------|--------|-------------------------------|
|   |   |                          |   |
|   |   | /s/ Glenn      A. Kermes |   |
|   |   | Glenn      A. Kermes          |   |
|   |   | Chief      Financial Officer  |   |
|   |   |                          |   |

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| For      the fiscal quarter ended March 31, 2008 | Commission      File No. 0-15637 |
|--------------------------------------------------|----------------------------------|

| 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  |