================================================================================


                                  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, 2006                                        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 [ ]

     The number of shares of Common Stock of the Registrant outstanding as of
May 8, 2006 was 11,940,060 shares.
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<PAGE>

                                      INDEX

                                                                          PAGE
                                                                         NUMBER
                                                                         ------
PART I.   FINANCIAL INFORMATION

ITEM 1.   Financial Statements
          Consolidated Balance Sheet -- March 31, 2006                       3
          Consolidated Income Statements -- Three Months Ended
            March 31, 2006 and March 31, 2005                                4
          Consolidated Statements of Cash Flows -- Three Months
            Ended March 31, 2006 And March 31, 2005                          5
          Notes to Consolidated Financial Statements                       6-8

ITEM 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                             9-12

ITEM 3.   Controls and Procedures                                           12

PART II.  OTHER INFORMATION

ITEM 1.   Legal Proceedings                                                 13
ITEM 2.   Changes in Securities                                             13
ITEM 3.   Defaults Upon Senior Securities                                   13
ITEM 4.   Submission of Matter To a Vote of Security Holders                13
ITEM 5.   Other Information                                                 13

ITEM 6.   Exhibits and Reports on Form 8-K                                  13

Signatures                                                                  14

Exhibits                                                                 15-17


                                        2
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY


                         PART I - FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS
                           CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2006
                                   (UNAUDITED)

ASSETS
------

Current assets:

       Cash and cash equivalents                                 $    446,329
       Accounts receivable, net                                         8,420
       Inventories                                                     26,505
       Prepaid expenses and other current assets                       11,771
                                                                 ------------
              Total current assets                                    493,025

Investments                                                           184,527

Property, and equipment, net                                          399,895
                                                                 ------------
                                                                 $  1,077,447
                                                                 ============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------

Current liabilities:

       Accounts payable                                          $     66,794

       Accrued payroll and related expenses                            59,294

       Other accrued expenses                                          69,644

        Current maturities of long term debt                           65,097
                                                                 ------------
              Total current liabilities                               260,829

        Long term debt, net of current maturities                     166,628
                                                                 ------------
              Total liabilities                                       427,457
                                                                 ------------

Shareholders' equity:

       Preferred stock, $.001 par value, 3,000,000 shares
          authorized, none issued or outstanding

       Common stock, $.001 par value, 20,000,000 shares
          authorized; issued and outstanding, 11,940,060 shares        11,940

       Additional paid-in capital                                  21,004,184

       Accumulated deficit                                       (20,366,134)

                                                                 ------------
             Shareholders' equity, net                                649,990
                                                                 ------------
                                                                 $  1,077,447
                                                                 ============



              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                        3
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

                         CONSOLIDATED INCOME STATEMENTS
                                   (UNAUDITED)


                                                         THREE MONTHS ENDED
                                                             MARCH 31,
                                                         2006           2005
                                                     -----------    -----------

Revenues:
     Product sales                                   $   767,297    $   437,735
     Royalty income                                         --              522
                                                     -----------    -----------
      Website income                                      21,660           --
                                                     -----------    -----------
        Total revenues                                   788,957        438,257
Cost of revenues                                         118,024         68,991
                                                     -----------    -----------
        Gross profit                                     670,933        369,266
                                                     -----------    -----------

Operating expenses:
     Sales, marketing, general and
       administrative                                    330,785        251,492
     Research and development                            126,178        106,884
                                                     -----------    -----------
         Total operating expenses                        456,963        358,376
                                                     -----------    -----------
Income from operations                                   213,970         10,890
Interest income (expense), net                            (7,815)           788
                                                     -----------    -----------
Net Income                                           $   206,155    $    11,678
                                                     ===========    ===========

Basic earnings per share                             $      0.02    $      0.00
                                                     ===========    ===========

Basic weighted average shares outstanding             11,940,060     11,440,060
                                                     ===========    ===========

Diluted  earnings per share                          $      0.02    $      0.00
                                                     ===========    ===========

Diluted weighted average shares outstanding           12,586,960     11,986,710
                                                     ===========    ===========



              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                        4
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                           THREE MONTHS ENDED
                                                                MARCH 31,
                                                           2006          2005
                                                        ---------     ---------

Cash flows from operating activities:
    Net income                                          $ 206,155     $  11,678
    Adjustments to reconcile net income to net cash
      provided by operating activities:
        Depreciation                                       22,434           841
        Changes in assets and liabilities:
        Accounts receivable                                 7,821        15,410
        Inventories                                         4,131          (165)
        Prepaid expenses and other current assets          (3,604)          870
        Accounts payable                                  (11,261)      (34,195)
          Accrued liabilities                               5,714        10,207
                                                        ---------     ---------
          Net cash provided by operating activities       231,390         4,646
                                                        ---------     ---------

Cash flows from investing activities:
    Collection of notes receivable - related party          8,427
    Additions to Property and Equipment                   (14,914)         --
                                                        ---------     ---------
          Net cash (used in) investing activities          (6,487)         --
                                                        ---------     ---------

Net increase in cash and cash equivalents                 224,903         4,646
Cash and cash equivalents, beginning of period            221,426       289,859
                                                        ---------     ---------
Cash and cash equivalents, end of period                $ 446,329     $ 294,505
                                                        =========     =========

Supplemental disclosure of cash flow information:
    Cash paid during the period for:
          Interest                                      $    --       $     180
                                                        ---------     ---------
          Income taxes                                  $    --       $    --
                                                        ---------     ---------

              The accompanying notes are an integral part of these
                       consolidated financial statements

                                        5
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY 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, 2005. 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, 2006 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 and
warrants for the periods ended March 31, 2006 and 2005. At March 31, 2006 and
2005, the number of outstanding stock options and warrants were 646,900 and
546,650, respectively. On October 18, 2005, the Board of Directors of the
Company voted to issue options to acquire 212,000 shares of common stock for the
exercise price of $.10 a share.


3. INVESTMENTS

     Investments at March 31, 2006, 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, 2006.

     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, 2006, 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.

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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

4. INCOME TAXES

     No provision for income taxes is shown in the accompanying consolidated
income statements as the Company has sufficient net operating loss carryforwards
available to offset current taxable income levels at March 31, 2006 and 2005,
respectively.


5. STOCK OPTIONS

     The Company accounts for its stock-based employee compensation plan under
the recognition and measurement principles of APB Opinion No. 25, ACCOUNTING FOR
STOCK ISSUED TO EMPLOYEES, and related Interpretations. No stock-based employee
compensation cost is reflected in net income, as all options granted under those
plans had an exercise price equal to the market value of the underlying common
stock on the date of grant. The following table illustrates the effect on net
income and earnings per share as if the company had applied the fair value
recognition provisions of FASB Statement No. 123(R) , ACCOUNTING FOR STOCK-BASED
COMPENSATION, to stock-based employee compensation.


                                                  THREE MONTHS ENDED
                                                       MARCH 31,
                                                  2006          2005
                                                --------      --------
     Net income
       as reported                              $206,155      $ 11,678

     Pro forma impact of expensing options         1,786            30

     Pro forma net Income                       $204,369      $ 11,648

     Earnings  per share:

         Basic-as reported                         $0.02         $0.00

         Basic-pro forma                           $0.02         $0.00

         Diluted-as reported                       $0.02         $0.00

         Diluted-pro forma                         $0.02         $0.00




                                        7
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

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 provider of system management software,
which includes basic input/output ("BIOS") software upgrades, personal computer
("PC") diagnostics for personal computers and embedded systems. System
management software is one of the fundamental layers in any microprocessor-based
system (including PCs) architecture and provides an essential interface between
the systems's operating software and hardware. Organized in 1982 as a California
corporation, the Company reincorporated in Delaware in January 1997. The
Company's executive offices are located at 1538 Turnpike Street, North Andover,
Massachusetts 01845, and its telephone number is (978) 686-6468.

     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. The Company's core product is 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. 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 and
NRE (non-recurring engineering) services to both end-users and OEM customers. As
the evolution of software and hardware has become more complex, the need for
compatibility has increased in importance. The Company 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.

     eSupport's customers include primarily end-users, enterprises such as
Fortune 500 corporations, government agencies, major educational and financial
institutions, designers and manufacturers of motherboards, PC systems and other
microprocessor-based or embedded devices. eSupport markets and licenses its
products and services worldwide.

     In December 2005 the Company introduced its newest product, 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
90,000 updated device drivers. Subscribers to the Driver Agent service can then
quickly and safely download the latest device drivers for their PC.

     The Company acquired two strategic web properties in 2005,
www.totallydrivers.com and www.driversdb.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 other costly avenues of marketing. The newly acquired properties also
generate advertising revenue through various sources.


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

                                        8
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

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, 2006 and 2005 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, 2005, 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.



                                       THREE MONTHS ENDED    THREE MONTHS ENDED
                                           MARCH 31,             MARCH 31,
                                              2006                  2005
     Revenues:
         Product sales                        97%                   100%
         Royalty income                        0                     -
          Website income                       3                     -
                                       ----------------------------------------
           Total revenues                    100                    100

     Cost of revenues                         15                     16
                                       ----------------------------------------
     Gross profit                             85                     84
                                       ----------------------------------------

     Operating expenses:
       Sales, marketing, general and
       administrative                         42                     58
       Research and development               16                     24
                                       ----------------------------------------
          Total operating expenses            58                     82
                                       ----------------------------------------
     Income from operations                   27                      2
     Interest income (expense), net           (1)                     1
                                       ========================================
     Net income                               26%                     3%
                                       ========================================


COMPARISON OF THREE MONTH PERIODS ENDED MARCH 31, 2006  AND 2005

     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, 2006,
the Company experienced an overall increase in product sales of approximately
75% as compared to the same period a year ago. The increase in revenue is due to
the full integration of Driver Agent. Web advertising income increased 100% and
is derived from various clients who pay for advertising space on the two
websites the Company owns. That income is earned monthly.

                                        9
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

     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 15% of revenues for the three month period
ended March 31, 2006 from 16% for the same period a year ago. This is due mainly
to a decrease in physical products being shipped to customers.

     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 32%, for the three
month period ended March 31, 2006, from the same period one year ago. This is
due to 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 18% for the three month period
ended March 31, 2006 from the same period one year ago. This is due to payroll
increasing slightly from a payroll classification.

     OTHER INCOME, NET. Other income, net consists of interest income associated
with the related party note, interest income from the Company's money market
accounts, and interest expense. Other income decreased by approximately $8,600
for the three month period ended March 31, 2006 as compared to the same period
one year ago. The decrease is due to the interest accrued on the long term debt.

LIQUIDITY AND CAPITAL RESOURCES

     During the three months ended March 31, 2006, the Company had cash provided
by operating activities of approximately $231,000 as compared to cash provided
by operating activities of approximately $4,600 during the same three month
period a year ago. The main factor of this increase in cash flow is the net
operating income the Company has had through the first three months of 2006.

     The Company's cash balance at March 31, 2006 was approximately $446,000 as
compared to approximately $295,000 a year ago.

     On May 5, 2005 the Company entered into a software purchase agreement with
62NDS Solutions Ltd. (the seller) to acquire certain software technology to
support scanning, analysis, search and updating of system software in remote
devices named UpdateFX (the Software). The purchase price, with interest imputed
at 8%, was $292,880 payable to the seller as follows: $22,500 paid at closing,
$22,500 payable at delivery and varying semi-annual payment thereafter through
April 2009, and 500,000 shares of the Company's unregistered common stock valued
at $25,000. No payments were made during the three months ended March 31, 2006
but the interest expense is accrued for in each month.

     The 500,000 shares of common stock was issued after closing and maintained
in an escrow account and shall be released from escrow on each payment date, in
equal installments of 50,000 shares with the final release six months after the
final payment date. The shares are subject to a lock-up agreement whereby the
seller may not sell or transfer the shares for a period of six-months after
receipt.

     The impact of inflation during 2006 has had no material impact on our
business and financial results.

                                       10
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

                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 flucutations in results. Such statements are
made pusuant 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, 2006, 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, 2006. 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, 2006.








                                       11
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                 TOUCHSTONE SOFTWARE CORPORATION AND SUBSIDIARY

                           PART II--OTHER 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 February 1, 2006, the Company filed a current report on
               Form 8-K to announce the release of the Driver Agent service.

     On February 27, 2006, the Company filed a current report on Form 8-K to
disclose results of operations and financial conditions for the fourth quarter
2005




                                       12
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                 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                 Chief Executive Officer          May 8, 2006
-----------------------------     and President
JASON K. RAZA



/s/ Michelle L. Carrozzella       Accounting Manager               May 8, 2006
-----------------------------
MICHELLE L. CARROZZELLA



















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