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| For the Quarter Ended: | March 31, 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                                                                        |
| 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. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                         |
| ITEM 5. OTHER INFORMATION                                                                           |
| ITEM 6. EXHIBITS                                                                                    |
| SIGNATURES                                                                                          |
| EXHIBIT INDEX                                                                                       |

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PART I – FINANCIAL INFORMATION

ITEM 1.                 FINANCIAL STATEMENTS

| WINLAND ELECTRONICS, INC.                                                                  |   |
|--------------------------------------------------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                                                                   |   |
| (In Thousands, Except Share Data)                                                          |   |
|                                                                                       |   |   |   |   |   |   |
| ASSETS                                                                                     |   | March 31, 2010 |   |   | December 31, 2009 |   |
|                                                                                       |   | (Unaudited) |   |   |   |   |
| Current Assets                                                                             |   |   |   |   |   |   |
|  Cash                                                                                 |   | $ | - |   |   | $ | 55 |   |
|  Accounts receivable, less allowance for doubtful accounts of $55                     |   |   |   |   |   |   |   |   |
|  and $49, respectively                                                                |   |   | 2,852 |   |   |   | 2,823 |   |
|  Refundable income taxes                                                              |   |   | 1,021 |   |   |   | 1,023 |   |
|  Inventories, less allowance for obsolescence of $619 and                             |   |   |   |   |   |   |   |   |
|  $562, respectively                                                                   |   |   | 3,865 |   |   |   | 3,039 |   |
|  Prepaid expenses and other assets                                                    |   |   | 287 |   |   |   | 256 |   |
|  Total current assets                                                                 |   |   | 8,025 |   |   |   | 7,196 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|  Property and equipment at cost                                                       |   |   | 12,035 |   |   |   | 12,266 |   |
|  Less accumulated depreciation                                                        |   |   | (7,897 | ) |   |   | (7,937 | ) |
|  Net property and equipment                                                           |   |   | 4,138 |   |   |   | 4,329 |   |
|  Total assets                                                                         |   | $ | 12,163 |   |   | $ | 11,525 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|  LIABILITIES AND STOCKHOLDERS' EQUITY                                                 |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|  Current Liabilities                                                                  |   |   |   |   |   |   |   |   |
|  Checks written in excess of bank balances                                            |   | $ | 123 |   |   | $ | - |   |
|  Revolving line of credit agreement                                                   |   |   | 546 |   |   |   | 367 |   |
|  Current maturities of long-term debt                                                 |   |   | 387 |   |   |   | 380 |   |
|  Accounts payable                                                                     |   |   | 1,922 |   |   |   | 1,132 |   |
|  Accrued expenses:                                                                    |   |   |   |   |   |   |   |   |
|  Compensation                                                                         |   |   | 504 |   |   |   | 369 |   |
|  Other                                                                                |   |   | 75 |   |   |   | 49 |   |
|  Total current liabilities                                                            |   |   | 3,557 |   |   |   | 2,297 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|  Long Term Liabilities                                                                |   |   |   |   |   |   |   |   |
|  Long-term debt, less current maturities                                              |   |   | 600 |   |   |   | 699 |   |
|  Deferred revenue                                                                     |   |   | 120 |   |   |   | 122 |   |
|  Other long term tax liabilities                                                      |   |   | 258 |   |   |   | 258 |   |
|  Total long-term liabilities                                                          |   |   | 978 |   |   |   | 1,079 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
|  Stockholders' Equity                                                                 |   |   |   |   |   |   |   |   |
| Common stock, par value $0.01 per share; authorized 20,000,000                             |   |   |   |   |   |   |   |   |
| shares; issued and outstanding 3,686,435 shares as of March 31, 2010 and December 31, 2009 |   |   | 37 |   |   |   | 37 |   |
|  Additional paid-in capital                                                           |   |   | 5,034 |   |   |   | 5,016 |   |
|  Retained earnings                                                                    |   |   | 2,557 |   |   |   | 3,096 |   |
|  Total stockholders' equity                                                           |   |   | 7,628 |   |   |   | 8,149 |   |
|  Total liabilities and stockholders' equity                                           |   | $ | 12,163 |   |   | $ | 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 Data)       |   |
| (Unaudited)                                           |   |
|                                                  |   |   |   |   |   |   |
|                                                  |   | For the Three Months Ended March 31, |   |
|                                                  |   | 2010 |   |   | 2009 |   |
| Net sales                                             |   | $ | 4,544 |   |   | $ | 7,152 |   |
| Cost of sales                                         |   |   | 4,127 |   |   |   | 6,076 |   |
| Gross profit                                          |   |   | 417 |   |   |   | 1,076 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Operating expenses:                                   |   |   |   |   |   |   |   |   |
| General and administrative                            |   |   | 460 |   |   |   | 626 |   |
| Sales and marketing                                   |   |   | 377 |   |   |   | 368 |   |
| Research and development                              |   |   | 105 |   |   |   | 147 |   |
| Total operating expenses                              |   |   | 942 |   |   |   | 1,141 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Operating loss                                        |   |   | (525 | ) |   |   | (65 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Interest Expense and Other:                           |   |   |   |   |   |   |   |   |
| Interest expense                                      |   |   | (21 | ) |   |   | (23 | ) |
| Other income (expense), net                           |   |   | 9 |   |   |   | (15 | ) |
| Total other expense                                   |   |   | (12 | ) |   |   | (38 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Loss before income taxes                              |   |   | (537 | ) |   |   | (103 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Income tax expense                                    |   |   | (2 | ) |   |   | (22 | ) |
| Net loss                                              |   | $ | (539 | ) |   | $ | (125 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Loss per common share:                                |   |   |   |   |   |   |   |   |
| Basic and diluted                                     |   | $ | (0.15 | ) |   | $ | (0.03 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Weighted-average number of common shares outstanding: |   |   |   |   |   |
| Basic and diluted                                     |   |   | 3,686,435 |   |   |   | 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 Three Months Ended March 31, |   |
|                                                         |   | 2010 |   |   | 2009 |   |
| Cash Flows From Operating Activities                         |   |   |   |   |   |   |
|  Net loss                                               |   | $ | (539 | ) |   | $ | (125 | ) |
|  Adjustments to reconcile net loss to net cash provided |   |   |   |   |   |   |   |   |
|  by (used in) operating activities:                     |   |   |   |   |   |   |   |   |
|  Depreciation and amortization                          |   |   | 200 |   |   |   | 207 |   |
|  Non-cash stock based compensation                      |   |   | 18 |   |   |   | 37 |   |
|  Increase in allowance for doubtful accounts            |   |   | 6 |   |   |   | - |   |
|  Loss (gain) on disposal of equipment                   |   |   | (6 | ) |   |   | 18 |   |
|  Changes in assets and liabilities:                     |   |   |   |   |   |   |   |   |
|  Accounts receivable                                    |   |   | (35 | ) |   |   | 36 |   |
|  Refundable income taxes                                |   |   | 2 |   |   |   | 21 |   |
|  Inventories                                            |   |   | (826 | ) |   |   | 224 |   |
|  Prepaid expenses                                       |   |   | (31 | ) |   |   | (50 | ) |
|  Accounts payable and checks written in excess of       |   |   |   |   |   |   |   |   |
|  bank balances                                          |   |   | 913 |   |   |   | (275 | ) |
|  Accrued expenses, including deferred revenue and       |   |   |   |   |   |   |   |   |
|  other long term tax liabilities                        |   |   | 159 |   |   |   | 121 |   |
|  Net cash provided by (used in) operating activities    |   |   | (139 | ) |   |   | 214 |   |
|                                                         |   |   |   |   |   |   |   |   |
|  Cash Flows From Investing Activities                   |   |   |   |   |   |   |   |   |
|  Purchases of property and equipment                    |   |   | (9 | ) |   |   | (30 | ) |
|  Proceeds from sale of property and equipment           |   |   | 6 |   |   |   | 7 |   |
|  Net cash used in investing activities                  |   |   | (3 | ) |   |   | (23 | ) |
|                                                         |   |   |   |   |   |   |   |   |
|  Cash flows From Financing Activities                   |   |   |   |   |   |   |   |   |
|  Net borrowings on revolving credit agreement           |   |   | 179 |   |   |   | 33 |   |
|  Net principal payments on long-term borrowings,        |   |   |   |   |   |   |   |   |
|  including capital lease obligations                    |   |   | (92 | ) |   |   | (121 | ) |
|  Net cash provided by (used in) financing activities    |   |   | 87 |   |   |   | (88 | ) |
|                                                         |   |   |   |   |   |   |   |   |
|  Net increase (decrease) in cash                        |   |   | (55 | ) |   |   | 103 |   |
|                                                         |   |   |   |   |   |   |   |   |
|  Cash                                                   |   |   |   |   |   |   |   |   |
|  Beginning                                              |   |   | 55 |   |   |   | 356 |   |
|  Ending                                                 |   | $ | - |   |   | $ | 459 |   |
|                                                         |   |   |   |   |   |   |   |   |
|  Supplemental Disclosures of Cash Flow Information      |   |   |   |   |   |   |   |   |
|  Cash payments for:                                     |   |   |   |   |   |   |   |   |
|  Interest                                               |   | $ | 21 |   |   | $ | 23 |   |
|                                                         |   |   |   |   |   |   |   |   |
|  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 March 31, 2010 |   |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $ | 3,697 |   |   | $ | 847 |   |   | $ | - |   |   | $ | 4,544 |   |
| Gross profit                      |   |   | 77 |   |   |   | 340 |   |   |   | - |   |   |   | 417 |   |
| Operating income (loss)           |   |   | (46 | ) |   |   | 86 |   |   |   | (565 | ) |   |   | (525 | ) |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three months ended March 31, 2009 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $ | 6,423 |   |   | $ | 729 |   |   | $ | - |   |   | $ | 7,152 |   |
| Gross profit                      |   |   | 762 |   |   |   | 314 |   |   |   | - |   |   |   | 1,076 |   |
| Operating income (loss)           |   |   | 652 |   |   |   | 56 |   |   |   | (773 | ) |   |   | (65 | ) |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                         |   | For the Three Months Ended March 31, |   |
|------------------------------|--------|--------------------------------------|--------|
| Sales percentage:            |   | 2010                                 |   |   | 2009 |   |
|    Customer A |   |                                 | 39     | % |   |   | 38 | % |
|    Customer B |   |                                 | 17     | % |   |   | 12 | % |
|    Customer C |   |                                 | 10     | % |   |   | 8 | % |
|    Customer D |   |                                 | 0      | % |   |   | 15 | % |

| Accounts receivable percentage: |   | 2010   |   |   | 2009   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|
|    Customer A    |   |   | 50     | %      |   |   | 40 | % |
|    Customer B    |   |   | 1      | %      |   |   | 6 | % |
|    Customer C    |   |   | 16     | %      |   |   | 9 | % |
|    Customer D    |   |   | 0      | %      |   |   | 2 | % |

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|             |   |           |      |   |              |   |
|------------------|--------|----------------|-----------|--------|-------------------|--------|
| ($ in thousands) |   | March 31, 2010 |      |   | December 31, 2009 |   |
| Raw materials    |   | $              | 2,812,000 |   |              | $      | 2,202,000 |   |
| Work in progress |   |           | 305,000   |   |              |   | 275,000 |   |
| Finished goods   |   |           | 748,000   |   |              |   | 562,000 |   |
| Total            |   | $              | 3,865,000 |   |              | $      | 3,039,000 |   |
|             |   |           |      |   |              |   |   |   |

|                                 |   | For the Three Months Ended March 31, |   |
|--------------------------------------|--------|--------------------------------------|--------|
| ($ in thousands)                     |   | 2010                                 |   |   | 2009 |   |
| Balance, Beginning                   |   | $                                    | 45     |   |   | $ | 80 |   |
| Accruals for products sold           |   |                                 | 23     |   |   |   | 38 |   |
| Expensing of specific warranty items |   |                                 | (23    | ) |   |   | (38 | ) |
| Balance, Ending                      |   | $                                    | 45     |   |   | $ | 80 |   |
|                                 |   |                                 |   |   |   |   |   |   |

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Table of Contents

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ITEM 2: 

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Table of Contents

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ITEM 3.   

ITEM 4.                      CONTROLS AND PROCEDURES

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PART II – OTHER INFORMATION

ITEM 1. 

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

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SIGNATURES

|                       | Winland Electronics, Inc. |                                                                           |
|----------------------------|---------------------------|--------------------------------------------------------------------------------|
|                       |                      |                                                                           |   |
| Date:  April 30, 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 March 31, 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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