----

----

| For the Quarter Ended: | March 31, 2011 |
|------------------------|----------------|

| 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 |
|---------------------------|---------------------|-------------------------|----------------------------------|

----

TABLE OF CONTENTS

| PART I – FINANCIAL INFORMATION                                                                |
|-----------------------------------------------------------------------------------------------------|
| ITEM 1. FINANCIAL STATEMENTS                                                                        |
| CONDENSED BALANCE SHEETS                                                                            |
| CONDENSED STATEMENTS OF OPERATIONS                                                                  |
| CONDENSED STATEMENTS OF CASH FLOWS                                                                  |
| NOTES 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. REMOVED AND RESERVED                                                                        |
| 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)                                                       |   |
|                                                                                    |   | March 31, 2011 |   |   | December 31, 2010 |   |
| ASSETS                                                                                  |   | (Unaudited) |   |   |   |   |
| Current Assets                                                                          |   |   |   |   |   |   |
|  Cash and cash equivalents                                                         |   | $ | 747 |   |   | $ | 318 |   |
|  Accounts receivable, less allowance for doubtful                                  |   |   |   |   |   |   |   |   |
|  accounts of $10 as of March 31, 2011 and December 31, 2010 (Note 3)               |   |   | 768 |   |   |   | 547 |   |
|  Receivable due from EMS asset sale (Note 8)                                       |   |   | 882 |   |   |   | - |   |
|  Refundable income taxes (Note 9)                                                  |   |   | 205 |   |   |   | 277 |   |
|  Inventories (Note 5)                                                              |   |   | 143 |   |   |   | 112 |   |
|  Prepaid expenses and other assets                                                 |   |   | 90 |   |   |   | 87 |   |
|  Current assets of discontinued operations (Note 8)                                |   |   | 715 |   |   |   | 4,649 |   |
|  Total current assets                                                              |   |   | 3,550 |   |   |   | 5,990 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|  Property and Equipment, at cost                                                   |   |   |   |   |   |   |   |   |
|  Property and equipment                                                            |   |   | 3,755 |   |   |   | 3,750 |   |
|  Less accumulated depreciation and amortization                                    |   |   | 1,480 |   |   |   | 1,447 |   |
|  Net property and equipment                                                        |   |   | 2,275 |   |   |   | 2,303 |   |
|  Property and equipment of discontinued operations, net (Note 8)                   |   |   | - |   |   |   | 1,151 |   |
| Total assets                                                                            |   | $ | 5,825 |   |   | $ | 9,444 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                    |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                     |   |   |   |   |   |   |   |   |
| Revolving line-of-credit                                                                |   | $ | - |   |   | $ | 1,249 |   |
| Current maturities of long-term debt                                                    |   |   | 421 |   |   |   | 448 |   |
| Accounts payable                                                                        |   |   | 414 |   |   |   | 381 |   |
| Other short-term tax liabilities                                                        |   |   | - |   |   |   | 68 |   |
| Accrued liabilities:                                                                    |   |   |   |   |   |   |   |   |
| Compensation                                                                            |   |   | 348 |   |   |   | 410 |   |
| Other                                                                                   |   |   | 26 |   |   |   | 35 |   |
| Current liabilities of discontinued operations (Note 8)                                 |   |   | 128 |   |   |   | 2,084 |   |
| Total current liabilities                                                               |   |   | 1,337 |   |   |   | 4,675 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Long-Term Liabilities                                                                   |   |   |   |   |   |   |   |   |
| Deferred revenue                                                                        |   |   | 112 |   |   |   | 114 |   |
| Long-term liabilities of discontinued operations (Note 8)                               |   |   | - |   |   |   | 29 |   |
| Total long-term liabilities                                                             |   |   | 112 |   |   |   | 143 |   |
| Total liabilities                                                                       |   |   | 1,449 |   |   |   | 4,818 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
|  Stockholders’ Equity (Note 7)                                               |   |   |   |   |   |   |   |   |
| Common stock, par value $0.01 per share; authorized 20,000,000 shares; issued and       |   |   |   |   |   |   |   |   |
| outstanding 3,701,630 as of March 31, 2011 and 3,699,230 shares as of December 31, 2010 |   |   | 37 |   |   |   | 37 |   |
| Additional paid-in capital                                                              |   |   | 4,981 |   |   |   | 5,025 |   |
| Accumulated deficit earnings                                                            |   |   | (642 | ) |   |   | (436 | ) |
| Total stockholders’ equity                                                        |   |   | 4,376 |   |   |   | 4,626 |   |
| Total liabilities and stockholders’ equity                                        |   | $ | 5,825 |   |   | $ | 9,444 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| See Notes to Financial Statements                                                       |   |   |   |   |   |   |   |   |

Table of Contents

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| WINLAND ELECTRONICS, INC.                                |   |
|----------------------------------------------------------|--------|
| CONDENSED STATEMENTS OF OPERATIONS                       |   |
| For the Three Months Ended March 31, 2011 and 2010       |   |
| (In Thousands, Except Share and Per Share Data)          |   |
|                                                     |   |   |   |   |   |   |
|                                                     |   | March 31, |   |
|                                                     |   | 2011 |   |   | 2010 |   |
| Net sales (Note 3)                                       |   | $ | 920 |   |   | $ | 847 |   |
| Cost of sales                                            |   |   | 648 |   |   |   | 507 |   |
| Gross profit                                             |   |   | 272 |   |   |   | 340 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Operating expenses:                                      |   |   |   |   |   |   |   |   |
| General and administrative                               |   |   | 207 |   |   |   | 460 |   |
| Sales and marketing                                      |   |   | 226 |   |   |   | 254 |   |
|                                                     |   |   | 433 |   |   |   | 714 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Operating loss                                           |   |   | (161 | ) |   |   | (374 | ) |
|                                                     |   |   |   |   |   |   |   |   |
| Other income (expenses):                                 |   |   |   |   |   |   |   |   |
| Interest expense                                         |   |   | (24 | ) |   |   | (12 | ) |
| Other, net                                               |   |   | 2 |   |   |   | 2 |   |
|                                                     |   |   | (22 | ) |   |   | (10 | ) |
|                                                     |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes      |   |   | (183 | ) |   |   | (384 | ) |
|                                                     |   |   |   |   |   |   |   |   |
| Income tax benefit (Note 9)                              |   |   | (9 | ) |   |   | (2 | ) |
| Loss from continuing operations                          |   |   | (192 | ) |   |   | (386 | ) |
| Loss from discontinued operations, net of tax            |   |   | (14 | ) |   |   | (153 | ) |
|                                                     |   |   |   |   |   |   |   |   |
| Net loss                                                 |   | $ | (206 | ) |   | $ | (539 | ) |
|                                                     |   |   |   |   |   |   |   |   |
| Loss per common share data:                              |   |   |   |   |   |   |   |   |
| Basic and diluted                                        |   | $ | (0.06 | ) |   | $ | (0.15 | ) |
| Loss from continuing operations per common share data:   |   |   |   |   |   |   |   |   |
| Basic and diluted                                        |   | $ | (0.06 | ) |   | $ | (0.11 | ) |
| Loss from discontinued operations per common share data: |   |   |   |   |   |   |   |   |
| Basic and diluted                                        |   | $ | (0.00 | ) |   | $ | (0.04 | ) |
| Weighted-average number of common shares outstanding:    |   |   |   |   |   |   |   |   |
| Basic and diluted                                        |   |   | 3,699,230 |   |   |   | 3,686,435 |   |
|                                                     |   |   |   |   |   |   |   |   |
| See Notes to Financial Statements                        |   |   |   |   |   |   |   |   |

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| WINLAND ELECTRONICS, INC.                                           |   |
|---------------------------------------------------------------------|--------|
| CONDENSED STATEMENTS OF CASH FLOWS                                  |   |
| (In Thousands)                                                      |   |
| (Unaudited)                                                         |   |
|                                                                |   | For the Three Months Ended March 31, |   |
|                                                                |   | 2011 |   |   | 2010 |   |
| Cash Flows From Operating Activities                                |   |   |   |   |   |   |
|  Net loss                                                      |   | $ | (206 | ) |   | $ | (539 | ) |
|  Adjustments to reconcile net loss to net cash                 |   |   |   |   |   |   |   |   |
|  used in operating activities:                                 |   |   |   |   |   |   |   |   |
|  Depreciation and amortization                                 |   |   | 33 |   |   |   | 200 |   |
|  Non-cash stock based compensation                             |   |   | (46 | ) |   |   | 18 |   |
|  Increase in allowance for doubtful accounts                   |   |   | - |   |   |   | 6 |   |
|  Gain on disposal of equipment                                 |   |   | - |   |   |   | (6 | ) |
|  Loss on sale of EMS business unit                             |   |   | 14 |   |   |   | - |   |
|  Changes in assets and liabilities:                            |   |   |   |   |   |   |   |   |
|  Accounts receivables                                          |   |   | (371 | ) |   |   | (35 | ) |
|  Refundable income taxes                                       |   |   | 72 |   |   |   | 2 |   |
|  Inventories                                                   |   |   | (31 | ) |   |   | (826 | ) |
|  Prepaid expenses                                              |   |   | (3 | ) |   |   | (31 | ) |
|  Accounts payable and checks written in excess of              |   |   |   |   |   |   |   |   |
|  bank balances                                                 |   |   | 33 |   |   |   | 913 |   |
|  Accrued expenses, including deferred revenue and              |   |   |   |   |   |   |   |   |
|  other short and long term tax liabilities                     |   |   | (194 | ) |   |   | 159 |   |
|  Net cash used in operating activities                         |   |   | (699 | ) |   |   | (139 | ) |
|                                                                |   |   |   |   |   |   |   |   |
|  Cash Flows From Investing Activities                          |   |   |   |   |   |   |   |   |
|  Purchases of property and equipment                           |   |   | (5 | ) |   |   | (9 | ) |
|  Proceeds from sale of property and equipment                  |   |   | - |   |   |   | 6 |   |
|  Sale of inventory from discontinued operations                |   |   | 1,753 |   |   |   | - |   |
|  Cash from sale of EMS business unit, net of transaction costs |   |   | 654 |   |   |   | - |   |
|  Net cash provided by (used in) investing activities           |   |   | 2,402 |   |   |   | (3 | ) |
|                                                                |   |   |   |   |   |   |   |   |
|  Cash flows From Financing Activities                          |   |   |   |   |   |   |   |   |
|  Net borrowings (payments) on revolving credit agreement       |   |   | (1,249 | ) |   |   | 179 |   |
|  Net principal payments on long-term borrowings,               |   |   |   |   |   |   |   |   |
|  including capital lease obligations                           |   |   | (27 | ) |   |   | (92 | ) |
|  Cash received from exercise of stock options                  |   |   | 2 |   |   |   | - |   |
|  Net cash provided by (used in) financing activities           |   |   | (1,274 | ) |   |   | 87 |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Net increase (decrease) in cash                               |   |   | 429 |   |   |   | (55 | ) |
|                                                                |   |   |   |   |   |   |   |   |
|  Cash                                                          |   |   |   |   |   |   |   |   |
|  Beginning                                                     |   |   | 318 |   |   |   | 55 |   |
|  Ending                                                        |   | $ | 747 |   |   | $ | - |   |
|                                                                |   |   |   |   |   |   |   |   |
|  Supplemental Disclosures of Cash Flow Information             |   |   |   |   |   |   |   |   |
|  Cash payments for interest                                    |   | $ | 24 |   |   | $ | 21 |   |
|  Cash payments for income taxes                                |   | $ | 10 |   |   | $ | - |   |
|  Non-cash investing activities                                 |   |   |   |   |   |   |   |   |
|  Receivable recorded for sale of EMS Busniess unit             |   | $ | 500 |   |   | $ | - |   |
|  Accrued transaction costs for sale of EMS business unit       |   | $ | 100 |   |   | $ | - |   |
|                                                                |   |   |   |   |   |   |   |   |
|  See Notes to Condensed Financial Statements                   |   |   |   |   |   |   |   |   |

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Note 1.  Basis of Presentation

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|                         |   | For the Three Months Ended March 31, |   |
|------------------------------|--------|--------------------------------------|--------|
| Sales percentage:            |   | 2011                                 |   |   | 2010 |   |
|    Customer A |   |                                 | 55     | % |   |   | 42 | % |

|                            |   | March 31, |   |
|---------------------------------|--------|-----------|--------|
| Accounts receivable percentage: |   | 2011      |   |   | 2010 |   |
|    Customer A    |   |      | 69     | % |   |   | 64 | % |

|                |   | March 31, 2011 |   |   | December 31, 2010 |   |
|---------------------|--------|----------------|--------|--------|-------------------|--------|
| Finished goods, net |   | $              | 143    |   |              | $      | 112 |   |
|                |   |           |   |   |              |   |   |   |

|                                 |   | For the Three Months Ended March 31, |   |
|--------------------------------------|--------|--------------------------------------|--------|
| ($ in thousands)                     |   | 2011                                 |   |   | 2010 |   |
| Balance, Beginning                   |   | $                                    | 11     |   |   | $ | 8 |   |
| Accruals for products sold           |   |                                 | 4      |   |   |   | 4 |   |
| Expensing of specific warranty items |   |                                 | (4     | ) |   |   | (4 | ) |
| Balance, Ending                      |   | $                                    | 11     |   |   | $ | 8 |   |
|                                 |   |                                 |   |   |   |   |   |   |

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|                     |           |   | Options Outstanding |   |    | Options Exercisable                                 |   |
|--------------------------|----------------|--------|---------------------|--------|---------|-----------------------------------------------------|--------|
| Range of Exercise Prices |           |   | Number of Shares    |   |    | Weighted-Average Remaining Contractual Life (Years) |   |   | Weighted-Average Exercise Price |   |   | Number of Shares |   |   | Weighted-Average Exercise Price |   |
| $                        | 0.448 - $1.344 |   |                |   | 44,000  |                                                |   |   | 8.6 |   |   | $ | 0.76 |   |   |   | 44,000 |   |   | $ | 0.76 |   |
| $                        | 1.344 - $1.792 |   |                |   | 42,000  |                                                |   |   | 3.7 |   |   |   | 1.74 |   |   |   | 42,000 |   |   |   | 1.74 |   |
| $                        | 1.792 - $2.240 |   |                |   | 5,500   |                                                |   |   | 6.8 |   |   |   | 2.23 |   |   |   | 5,500 |   |   |   | 2.23 |   |
| $                        | 2.240 - $3.136 |   |                |   | 10,800  |                                                |   |   | 0.0 |   |   |   | 2.55 |   |   |   | 10,800 |   |   |   | 2.55 |   |
| $                        | 3.136 - $3.584 |   |                |   | 45,300  |                                                |   |   | 1.5 |   |   |   | 3.31 |   |   |   | 45,300 |   |   |   | 3.31 |   |
| $                        | 3.584 - $4.032 |   |                |   | 24,000  |                                                |   |   | 1.4 |   |   |   | 3.62 |   |   |   | 19,200 |   |   |   | 3.62 |   |
| $                        | 4.032 - $4.480 |   |                |   | 22,000  |                                                |   |   | 2.3 |   |   |   | 4.30 |   |   |   | 22,000 |   |   |   | 4.30 |   |
|                     |           |   |                |   | 193,600 |                                                |   |   | 3.7 |   |   | $ | 2.47 |   |   |   | 188,800 |   |   | $ | 2.44 |   |
|                     |           |   |                |   |    |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| Assets and liabilities of EMS segment (discontinued operations) were as follows: |   |           |   |   |              |   |
|----------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                             |   |           |   |   |              |   |
| (in thousands)                                                                   |   | March 31, 2011 |   |   | December 31, 2010 |   |
| Accounts receivable, net                                                         |   | $              | -      |   |              | $      | 1,752 |   |
| Inventories, net                                                                 |   |           | 715    |   |              |   | 2,830 |   |
| Other current assets                                                             |   |           | -      |   |              |   | 67 |   |
| Current assets of discontinued operations                                        |   |           | 715    |   |              |   | 4,649 |   |
| Property and equipment, net                                                      |   |           | -      |   |              |   | 1,151 |   |
| Other assets of discontinued operations                                          |   |           | -      |   |              |   | 1,151 |   |
|                                                                             |   |           |   |   |              |   |   |   |
| Current maturities of long-term debt                                             |   | $              | -      |   |              | $      | 222 |   |
| Accounts payable                                                                 |   |           | 100    |   |              |   | 1,772 |   |
| Accrued compensation and other liabilities                                       |   |           | 28     |   |              |   | 90 |   |
| Current liabilities of discontinued operations                                   |   |           | 128    |   |              |   | 2,084 |   |
| Long term debt                                                                   |   |           | -      |   |              |   | 29 |   |
| Long-term liabilities of discontinued operations                                 |   |           | -      |   |              |   | 29 |   |

| Statements of operations for EMS segment (discontinued operations) for the three months ended March 31, 2011 and 2010 were as follows: |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                   |   | Three Months Ended March 31, |   |
| (in thousands)                                                                                                                         |   | 2011 |   |   | 2010 |   |
| Net sales                                                                                                                              |   | $ | 2,118 |   |   | $ | 3,697 |   |
| Gross profit                                                                                                                           |   |   | - |   |   |   | 77 |   |
| Loss from discontinued operations                                                                                                      |   |   | (14 | ) |   |   | (153 | ) |

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| Cash consideration                 |   | $      | 1,042,000  |   |
|------------------------------------|--------|--------|------------|--------|
| Due from Nortech                   |   |   | 500,000    |   |
| Total liabilities to be assumed:   |   |   | 2,073,000  |   |
| Subtotal                           |   |   | 3,615,000  |   |
| Less:  Transaction costs |   |   | (496,000   | )      |
| Net proceeds                       |   |   | 3,119,000  |   |
|                               |   |   |       |   |
| Total assets to be assumed:        |   |   | (3,133,000 | )      |
| Net loss on assets sold            |   | $      | (14,000    | )      |
|                               |   |   |       |   |

Table of Contents

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

Table of Contents

----

Table of Contents

----

ITEM 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.                      CONTROLS AND PROCEDURES

Table of Contents

----

PART II – OTHER INFORMATION

ITEM 1.                      LEGAL PROCEEDINGS

ITEM 1A.                      RISK FACTORS

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

ITEM 3.                      DEFAULTS UPON SENIOR SECURITIES

ITEM 4.                      REMOVED AND RESERVED

ITEM 5.                      OTHER INFORMATION

ITEM 6.                      EXHIBITS

Table of Contents

----

SIGNATURES

|                     | Winland Electronics, Inc. |                                                                                         |
|--------------------------|---------------------------|----------------------------------------------------------------------------------------------|
|                     |                      |                                                                                         |   |
| Date:  May 16, 2011 | By:                       | /s/ Brian D. Lawrence                                                                   |   |
|                     |                      | Brian D. Lawrence                                                             |   |
|                     |                      | Chief Financial Officer and Senior Vice President(Principal Financial and Executive Officer) |   |
|                     |                      |                                                                                         |   |

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EXHIBIT INDEX TO FORM 10-Q

| For the fiscal quarter ended March 31, 2011 | Commission File No. 1-15637 |
|---------------------------------------------|-----------------------------|

| Exhibit No. | Description                                                                                                                        |
|-------------|------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                               |
| 31.1   | Certification of Chief Financial Officer and Senior Vice President Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |
| 32.1   | Certification of Chief Financial Officer and Senior Vice President Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  |

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