----

----

| For the Quarter Ended: | June 30, 2010 |
|------------------------|---------------|

| 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 AS OF JUNE 30, 2010 AND DECEMBER 31, 2009                                                                  |
| CONDENSED STATEMENTS OF OPERATIONS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009                                  |
| CONDENSED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009NOTES TO CONDENSED 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                                                                                                             |

----

PART I – FINANCIAL INFORMATION

ITEM 1.                 FINANCIAL STATEMENTS

| WINLAND ELECTRONICS, INC.                                                                                 |   |
|-----------------------------------------------------------------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                                                                                  |   |
| (In Thousands, Except Share Data)                                                                         |   |
|                                                                                                      |   |   |   |   |   |   |
| ASSETS                                                                                                    |   | June 30, 2010 |   |   | December 31, 2009 |   |
|                                                                                                      |   | (Unaudited) |   |   |   |   |
| Current Assets                                                                                            |   |   |   |   |   |   |
|  Cash                                                                                                |   | $ | 100 |   |   | $ | 55 |   |
|  Accounts receivable, less allowance for doubtful accounts of $64                                    |   |   |   |   |   |   |   |   |
|  and $49, respectively                                                                               |   |   | 3,597 |   |   |   | 2,823 |   |
|  Refundable income taxes                                                                             |   |   | 376 |   |   |   | 1,023 |   |
|  Inventories, less allowance for obsolescence of $766 and                                            |   |   |   |   |   |   |   |   |
|  $562, respectively                                                                                  |   |   | 3,195 |   |   |   | 3,039 |   |
|  Prepaid expenses and other assets                                                                   |   |   | 308 |   |   |   | 256 |   |
|  Total current assets                                                                                |   |   | 7,576 |   |   |   | 7,196 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|  Property and equipment at cost                                                                      |   |   | 11,933 |   |   |   | 12,266 |   |
|  Less accumulated depreciation                                                                       |   |   | (8,045 | ) |   |   | (7,937 | ) |
|  Net property and equipment                                                                          |   |   | 3,888 |   |   |   | 4,329 |   |
|  Total assets                                                                                        |   | $ | 11,464 |   |   | $ | 11,525 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|  LIABILITIES AND STOCKHOLDERS' EQUITY                                                                |   |   |   |   |   |   |   |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|  Current Liabilities                                                                                 |   |   |   |   |   |   |   |   |
|  Revolving line of credit agreement                                                                  |   | $ | 1,248 |   |   | $ | 367 |   |
|  Current maturities of long-term debt                                                                |   |   | 394 |   |   |   | 380 |   |
|  Accounts payable                                                                                    |   |   | 1,692 |   |   |   | 1,132 |   |
|  Accrued expenses:                                                                                   |   |   |   |   |   |   |   |   |
|  Compensation                                                                                        |   |   | 392 |   |   |   | 369 |   |
|  Other short-term tax liabilities                                                                    |   |   | 258 |   |   |   | - |   |
|  Other                                                                                               |   |   | 53 |   |   |   | 49 |   |
|  Total current liabilities                                                                           |   |   | 4,037 |   |   |   | 2,297 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|  Long Term Liabilities                                                                               |   |   |   |   |   |   |   |   |
|  Long-term debt, less current maturities                                                             |   |   | 498 |   |   |   | 699 |   |
|  Deferred revenue                                                                                    |   |   | 118 |   |   |   | 122 |   |
|  Other long-term tax liabilities                                                                     |   |   | - |   |   |   | 258 |   |
|  Total long-term liabilities                                                                         |   |   | 616 |   |   |   | 1,079 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|  Stockholders' Equity                                                                                |   |   |   |   |   |   |   |   |
| Common stock, par value $0.01 per share; authorized 20,000,000                                            |   |   |   |   |   |   |   |   |
| shares; issued and outstanding 3,699,230 shares as of June 30, 2010 and 3,686,435 as of December 31, 2009 |   |   | 37 |   |   |   | 37 |   |
|  Additional paid-in capital                                                                          |   |   | 5,039 |   |   |   | 5,016 |   |
|  Retained earnings                                                                                   |   |   | 1,735 |   |   |   | 3,096 |   |
|  Total stockholders' equity                                                                          |   |   | 6,811 |   |   |   | 8,149 |   |
|  Total liabilities and stockholders' equity                                                          |   | $ | 11,464 |   |   | $ | 11,525 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
|  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 June 30, |   |   | For the Six Months Ended June 30, |   |
|                                                  |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Net sales                                             |   | $ | 5,131 |   |   | $ | 5,734 |   |   | $ | 9,675 |   |   | $ | 12,886 |   |
| Cost of sales                                         |   |   | 4,934 |   |   |   | 5,246 |   |   |   | 9,061 |   |   |   | 11,322 |   |
| Gross profit                                          |   |   | 197 |   |   |   | 488 |   |   |   | 614 |   |   |   | 1,564 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                            |   |   | 510 |   |   |   | 543 |   |   |   | 970 |   |   |   | 1,169 |   |
| Sales and marketing                                   |   |   | 367 |   |   |   | 423 |   |   |   | 744 |   |   |   | 774 |   |
| Research and development                              |   |   | 114 |   |   |   | 87 |   |   |   | 219 |   |   |   | 252 |   |
| Total operating expenses                              |   |   | 991 |   |   |   | 1,053 |   |   |   | 1,933 |   |   |   | 2,195 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                        |   |   | (794 | ) |   |   | (565 | ) |   |   | (1,319 | ) |   |   | (631 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                      |   |   | (27 | ) |   |   | (23 | ) |   |   | (48 | ) |   |   | (46 | ) |
| Other income (expense), net                           |   |   | (1 | ) |   |   | 3 |   |   |   | 7 |   |   |   | (12 | ) |
| Total other expense                                   |   |   | (28 | ) |   |   | (20 | ) |   |   | (41 | ) |   |   | (58 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                              |   |   | (822 | ) |   |   | (585 | ) |   |   | (1,360 | ) |   |   | (689 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense                                    |   |   | - |   |   |   | (129 | ) |   |   | (2 | ) |   |   | (150 | ) |
| Net loss                                              |   | $ | (822 | ) |   | $ | (714 | ) |   | $ | (1,362 | ) |   | $ | (839 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                     |   | $ | (0.22 | ) |   | $ | (0.19 | ) |   | $ | (0.37 | ) |   | $ | (0.23 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average number of common shares outstanding: |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                     |   |   | 3,689,930 |   |   |   | 3,669,148 |   |   |   | 3,686,683 |   |   |   | 3,669,148 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 Six Months Ended June 30, |   |
|                                                                          |   | 2010 |   |   | 2009 |   |
| Cash Flows From Operating Activities                                          |   |   |   |   |   |   |
|  Net loss                                                                |   | $ | (1,362 | ) |   | $ | (839 | ) |
|  Adjustments to reconcile net loss to net cash used in                   |   |   |   |   |   |   |   |   |
|  operating activities:                                                   |   |   |   |   |   |   |   |   |
|  Depreciation and amortization                                           |   |   | 397 |   |   |   | 412 |   |
|  Increase in allowance for doubtful accounts                             |   |   | 15 |   |   |   | - |   |
|  Loss on disposal of property and equipment                              |   |   | 47 |   |   |   | 20 |   |
|  Non-cash stock based compensation                                       |   |   | 16 |   |   |   | 47 |   |
|  Changes in assets and liabilities:                                      |   |   |   |   |   |   |   |   |
|  Accounts receivable                                                     |   |   | (789 | ) |   |   | 333 |   |
|  Refundable income taxes                                                 |   |   | 647 |   |   |   | 204 |   |
|  Inventories                                                             |   |   | (156 | ) |   |   | (266 | ) |
|  Prepaid expenses                                                        |   |   | (52 | ) |   |   | (199 | ) |
|  Accounts payable                                                        |   |   | 560 |   |   |   | (37 | ) |
|  Accrued expenses, including deferred revenue and                        |   |   |   |   |   |   |   |   |
|  other short-term tax liabilities                                        |   |   | 27 |   |   |   | 26 |   |
|  Net cash used in operating activities                                   |   |   | (650 | ) |   |   | (299 | ) |
|                                                                          |   |   |   |   |   |   |   |   |
|  Cash Flows From Investing Activities                                    |   |   |   |   |   |   |   |   |
|  Purchases of property and equipment                                     |   |   | (13 | ) |   |   | (59 | ) |
|  Proceeds from sale of property and equipment                            |   |   | 7 |   |   |   | 7 |   |
|  Net cash used in investing activities                                   |   |   | (6 | ) |   |   | (52 | ) |
|                                                                          |   |   |   |   |   |   |   |   |
|  Cash flows From Financing Activities                                    |   |   |   |   |   |   |   |   |
|  Net borrowings on revolving line of credit                              |   |   | 881 |   |   |   | 386 |   |
|  Payments on long-term borrowings, including capital                     |   |   |   |   |   |   |   |   |
|  lease obligations                                                       |   |   | (187 | ) |   |   | (213 | ) |
|  Proceeds from issuance of common stock                                  |   |   | 7 |   |   |   | 6 |   |
|  Net cash provided by financing activities                               |   |   | 701 |   |   |   | 179 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Net increase (decrease) in cash                                         |   |   | 45 |   |   |   | (172 | ) |
|                                                                          |   |   |   |   |   |   |   |   |
|  Cash                                                                    |   |   |   |   |   |   |   |   |
|  Beginning of period                                                     |   |   | 55 |   |   |   | 356 |   |
|  Ending of period                                                        |   | $ | 100 |   |   | $ | 184 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  Supplemental information                                                |   |   |   |   |   |   |   |   |
|  Cash payments for:                                                      |   |   |   |   |   |   |   |   |
|  Interest                                                                |   | $ | 35 |   |   | $ | 47 |   |
|  Cash received for:                                                      |   |   |   |   |   |   |   |   |
|  Income taxes                                                            |   | $ | 645 |   |   | $ | - |   |
| Non-cash reclassification of other tax liability from long-term to short-term |   |   |   |   |   |
|                                                                          |   | $ | 258 |   |   | $ | - |   |
|                                                                          |   |   |   |   |   |   |   |   |
|  See Notes to Condensed Financial Statements                             |   |   |   |   |   |   |   |   |

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Note 1.  Basis of Presentation

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| WINLAND ELECTRONICS, INC.        |   |
|----------------------------------|--------|
| SEGMENT REPORTING                |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |
| ($ in thousands)                 |   | EMS |   |   | Proprietary |   |   | Other |   |   | Total |   |
| Three months ended June 30, 2010 |   |   |   |   |   |   |   |   |   |   |
| Net sales                        |   | $ | 4,380 |   |   | $ | 751 |   |   | $ | - |   |   | $ | 5,131 |   |
| Gross margin                     |   |   | (90 | ) |   |   | 287 |   |   |   | - |   |   |   | 197 |   |
| Operating income (loss)          |   |   | (205 | ) |   |   | 35 |   |   |   | (624 | ) |   |   | (794 | ) |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three months ended June 30, 2009 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                        |   | $ | 5,005 |   |   | $ | 729 |   |   |   |   |   |   | $ | 5,734 |   |
| Gross margin                     |   |   | 159 |   |   |   | 329 |   |   |   |   |   |   |   | 488 |   |
| Operating income (loss)          |   |   | 22 |   |   |   | 43 |   |   |   | (630 | ) |   |   | (565 | ) |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Six months ended June 30, 2010   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                        |   | $ | 8,094 |   |   | $ | 1,581 |   |   | $ | - |   |   | $ | 9,675 |   |
| Gross margin                     |   |   | (14 | ) |   |   | 628 |   |   |   | - |   |   |   | 614 |   |
| Operating income (loss)          |   |   | (248 | ) |   |   | 118 |   |   |   | (1,189 | ) |   |   | (1,319 | ) |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Six months ended June 30, 2009   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                        |   | $ | 11,448 |   |   | $ | 1,438 |   |   |   |   |   |   | $ | 12,886 |   |
| Gross margin                     |   |   | 875 |   |   |   | 689 |   |   |   |   |   |   |   | 1,564 |   |
| Operating income (loss)          |   |   | 628 |   |   |   | 162 |   |   |   | (1,421 | ) |   |   | (631 | ) |

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|                         |   | For the Three Months Ended June 30, |   |
|------------------------------|--------|-------------------------------------|--------|
| Sales percentage:            |   | 2010                                |   |   | 2009 |   |
|    Customer A |   |                                | 36     | % |   |   | 41 | % |
|    Customer B |   |                                | 10     | % |   |   | 17 | % |
|    Customer C |   |                                | 7      | % |   |   | 11 | % |
|                         |   |                                |   |   |   |   |   |   |
|                         |   | For the Six Months Ended June 30,   |   |
| Sales percentage:            |   |                                | 2010   |   |   |   | 2009 |   |
|    Customer A |   |                                | 37     | % |   |   | 39 | % |
|    Customer B |   |                                | 14     | % |   |   | 14 | % |
|    Customer C |   |                                | 8      | % |   |   | 9 | % |

| Accounts receivable percentage: |   | 2010   |   |   | 2009   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|
|    Customer A    |   |   | 43     | %      |   |   | 37 | % |
|    Customer B    |   |   | 7      | %      |   |   | 15 | % |
|    Customer C    |   |   | 14     | %      |   |   | 11 | % |

|             |   |          |   |   |              |   |
|------------------|--------|---------------|--------|--------|-------------------|--------|
| ($ in thousands) |   | June 30, 2010 |   |   | December 31, 2009 |   |
| Raw materials    |   | $             | 2,534  |   |              | $      | 2,202 |   |
| Work in progress |   |          | 289    |   |              |   | 275 |   |
| Finished goods   |   |          | 372    |   |              |   | 562 |   |
| Total            |   | $             | 3,195  |   |              | $      | 3,039 |   |
|             |   |          |   |   |              |   |   |   |

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|                                 |   | For the Three Months Ended June 30, |   |
|--------------------------------------|--------|-------------------------------------|--------|
| ($ in thousands)                     |   | 2010                                |   |   | 2009 |   |
| Balance, Beginning                   |   | $                                   | 45     |   |   | $ | 80 |   |
| Accruals for products sold           |   |                                | 30     |   |   |   | 12 |   |
| Expensing of specific warranty items |   |                                | (30    | ) |   |   | (15 | ) |
| Change in estimate                   |   |                                | 5      |   |   |   | (32 | ) |
| Balance, Ending                      |   | $                                   | 50     |   |   | $ | 45 |   |
|                                 |   |                                |   |   |   |   |   |   |
|                                 |   | For the Six Months Ended June 30,   |   |
|                                 |   |                                | 2010   |   |   |   | 2009 |   |
| Balance, Beginning                   |   | $                                   | 45     |   |   | $ | 80 |   |
| Accruals for products sold           |   |                                | 53     |   |   |   | 50 |   |
| Expensing of specific warranty items |   |                                | (53    | ) |   |   | (53 | ) |
| Change in estimate                   |   |                                | 5      |   |   |   | (32 | ) |
| Balance, Ending                      |   | $                                   | 50     |   |   | $ | 45 |   |
|                                 |   |                                |   |   |   |   |   |   |

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OVERVIEW

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.  CONTROLS AND PROCEDURES

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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

|                 |   | Number of votes |      |
|----------------------|--------|-----------------|-----------|
| Nominee              |   | For             |      |   | Withheld |   |
| Thomas J. de Petra   |   |            | 1,034,346 |   |   |   | 272,271 |   |
| Lorin E. Krueger     |   |            | 1,109,637 |   |   |   | 196,980 |   |
| Richard T. Speckmann |   |            | 1,033,824 |   |   |   | 272,793 |   |
| Thomas J. Goodmanson |   |            | 1,121,775 |   |   |   | 184,842 |   |
| Thomas J. Brady      |   |            | 1,116,875 |   |   |   | 189,742 |   |

ITEM 5.  OTHER INFORMATION

ITEM 6.  EXHIBITS

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SIGNATURES

|                             | Winland Electronics, Inc. |                                                                           |
|----------------------------------|---------------------------|--------------------------------------------------------------------------------|
|                             |                      |                                                                           |   |
| Date:  August 13, 2010 | By:                       | /s/ Thomas J. de Petra                                                    |   |
|                             |                      | Thomas J. de Petra                                                             |   |
|                             |                      | President and Chief Executive Officer(Principal Executive Officer)   |   |
|                             |                      |                                                                           |   |

|   |   |                                               |
|--------|--------|----------------------------------------------------|
|   |   |                                               |   |
|   | By:    | /s/ Glenn A. Kermes                           |   |
|   |   | Glenn A. Kermes                                    |   |
|   |   | Chief Financial Officer                            |   |
|   |   |  (Principal Financial and Accounting Officer) |   |

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EXHIBIT INDEX TO FORM 10-Q

| For the fiscal quarter ended June 30, 2010 | Commission File No. 1-15637 |
|--------------------------------------------|-----------------------------|

| 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  |

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