**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D.C. 20549**

**FORM        10-QSB/A**

**__________________**

| x | QUARTERLY                  REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT                  OF 1934                  FOR THE QUARTERLY PERIOD ENDED MARCH 31,                  2005. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION                  REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT                  OF 1934                  FOR THE TRANSITION PERIOD FROM _____________ TO                  _____________. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Commission        File Number 000-50813**

**Sand        Hill IT Security Acquisition Corp.**

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| **Delaware**                                                    | **20-0996152**                                        |
|-----------------------------------------------------------------|-------------------------------------------------------|
| (State                  or other Jurisdiction of incorporation) | (I.R.S.                  Employer Identification No.) |

**3000        Sand Hill Road**

**Building        1, Suite 240**

**Menlo        Park, California**

**(650)        926-7022**

** **

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|                                                                                                                                                                                              |   | March                  31, 2005(Unaudited) |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                                                                                                                                              |   | (Restated)                                 |       |
| **ASSETS**                                                                                                                                                                                        |   |                                       |       |
| Current                  assets:                                                                                                                                                                  |   |                                       |       |
| Cash                                                                                                                                                                                              |   | $                                          | 697,785    |   |
| Treasury                  securities held in trust, at market                                                                                                                                     |   |                                       | 21,220,292 |   |
| Prepaid                  expenses                                                                                                                                                                 |   |                                       | 101,287    |   |
|                                                                                                                                                                                              |   |                                       |       |   |
| Total                  current assets                                                                                                                                                             |   |                                       | 22,019,364 |   |
|                                                                                                                                                                                              |   |                                       |       |   |
| Total                  Assets                                                                                                                                                                     |   | $                                          | 22,019,364 |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                                                                   |   |                                       |       |   |
| Current                  Liabilities:                                                                                                                                                             |   |                                       |       |   |
| Accounts                  payable and accrued expenses                                                                                                                                            |   | $                                          | 60,270     |   |
|                                                                                                                                                                                              |   |                                       |       |   |
| Total                  Liabilities                                                                                                                                                                |   |                                       | 60,270     |   |
|                                                                                                                                                                                              |   |                                       |       |   |
| Common                  stock subject to possible conversion (821,589 shares at conversion                  value)                                                                                |   |                                       | 4,241,936  |   |
| Stockholders’                  Equity:                                                                                                                                                      |   |                                       |       |   |
| Preferred                  stock, $0.01 par valueAuthorized                  5,000,000 shares; none issued                                                                                        |   | $                                          | —    |   |
| Common                  stock, $0.01 par valueAuthorized                  50,000,000 sharesIssued                  and outstanding, 5,110,000 and 5,110,000 shares,                  respectively |   |                                       | 51,100     |   |
| Additional                  paid-in capital                                                                                                                                                       |   |                                       | 17,764,215 |   |
| Deficit                  accumulated during the development stage                                                                                                                                 |   |                                       | (98,157    | ) |
| Total                  Stockholders’ Equity                                                                                                                                                 |   |                                       | 17,717,158 |   |
| Total                  Liabilities and Stockholders’ Equity                                                                                                                                 |   | $                                          | 22,019,364 |   |

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|                                                     |   | Three                  MonthsEndedMarch                  31, 2005(Unaudited) |      | Period                  from(inception)                  toMarch                  31, 2005(Unaudited) |   |
|----------------------------------------------------------|--------|------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------|--------|
|                                                     |   |                                                                         |      |                                                                                                  |   |
| Formation                  and operating costs           |   | $                                                                            | 172,148   |                                                                                                  | $      | 364,094 |   |
|                                                     |   |                                                                         |      |                                                                                                  |   |   |   |
| Operating                  loss                          |   |                                                                         | (172,148  | )                                                                                                     |   | (364,094 | ) |
|                                                     |   |                                                                         |      |                                                                                                  |   |   |   |
| Interest                  income and mark to market gain |   |                                                                         | 123,898   |                                                                                                  |   | 265,937 |   |
|                                                     |   |                                                                         |      |                                                                                                  |   |   |   |
| Net                  loss                                |   | $                                                                            | (48,250   | )                                                                                                     | $      | (98,157 | ) |
|                                                     |   |                                                                         |      |                                                                                                  |   |   |   |
| Weighted                  Average Shares Outstanding     |   |                                                                         | 5,110,000 |                                                                                                  |   | 3,896,928 |   |
|                                                     |   |                                                                         |      |                                                                                                  |   |   |   |
| Net                  Loss Per Share (Basic and Diluted)  |   | $                                                                            | (0.01     | )                                                                                                     | $      | (0.02 | ) |

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|                                                                                         |   | Three                  monthsended                  March 31, 2005 (Unaudited) |     | Period                  fromApril                  15,(inception)                  toMarch                  31, 2005(Unaudited) |   |
|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|----------|---------------------------------------------------------------------------------------------------------------------------------|--------|
| CASH                  FLOW FROM OPERATING ACTIVITIES                                         |   |                                                                           |     |                                                                                                                            |   |
| Net                  loss                                                                    |   | $                                                                              | (48,250  | )                                                                                                                               | $      | (98,157 | ) |
| Accretion                  of treasury bill and mark to market gain                          |   |                                                                           | (119,782 | )                                                                                                                               |   | (195,292 | ) |
| Increase                  in prepaid expenses                                                |   |                                                                           | 30,844   |                                                                                                                            |   | (101,287 | ) |
| Increase                  in accounts payable and accrued expenses                           |   |                                                                           | 44,498   |                                                                                                                            |   | 60,270 |   |
| Compensation                  expense related to issuance of Advisory Board Options          |   |                                                                           | 7,341    |                                                                                                                            |   | 9,788 |   |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| Net                  cash provided by (used in) operating activities                    |   |                                                                           | (85,348  | )                                                                                                                               |   | (324,677 | ) |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| CASH                  FLOW FROM INVESTING ACTIVITIES                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| Purchase                  of treasury bill in trust account                             |   |                                                                           | —  |                                                                                                                            |   | (21,025,000 | ) |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| Net                  cash used in investing activities                                  |   |                                                                           | —  |                                                                                                                            |   | (21,025,000 | ) |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| CASH                  FLOW FROM FINANCING ACTIVITIES                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| Proceeds                  from sale of common stock to initial                  stockholders |   |                                                                           | —  |                                                                                                                            |   | 25,000 |   |
| Gross                  proceeds from public offering                                    |   |                                                                           | —  |                                                                                                                            |   | 24,660,000 |   |
| Costs                  of public offering                                               |   |                                                                           | —  |                                                                                                                            |   | (2,637,538 | ) |
| Proceeds                  from stockholder loan                                              |   |                                                                           | —  |                                                                                                                            |   | 40,000 |   |
| Repayment                  of stockholder loan                                          |   |                                                                           | —  |                                                                                                                            |   | (40,000 | ) |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| Net                  cash provided by financing activities                              |   |                                                                           | —  |                                                                                                                            |   | 22,047,462 |   |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| NET                  INCREASE IN CASH                                                   |   |                                                                           | (85,348  | )                                                                                                                               |   | 697,785 |   |
| CASH                  AT BEGINNING OF PERIOD                                            |   |                                                                           | 783,133  |                                                                                                                            |   | — |   |
|                                                                                         |   |                                                                           |     |                                                                                                                            |   |   |   |
| CASH                  AT END OF PERIOD                                                  |   | $                                                                              | 697,785  |                                                                                                                            | $      | 697,785 |   |

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| 1. | BASIS                  OF PRESENTATION |
|----|----------------------------------------|

| 2. | ORGANIZATION,                  BUSINESS OPERATIONS |
|----|----------------------------------------------------|

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| 3. | PUBLIC                  OFFERING |
|----|----------------------------------|

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| 4. | TREASURY                  SECURITIES |
|----|--------------------------------------|

| 5. | COMMITMENT |
|----|------------|

| 6. | NOTE                  PAYABLE |
|----|-------------------------------|

| 7. | COMMON                  STOCK |
|----|-------------------------------|

| 8. | PREFERRED                  STOCK |
|----|----------------------------------|

| 9. | RESTATEMENT |
|----|-------------|

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**Item            3. Controls and Procedures**

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|   |                                                                  |   |
|--------|-----------------------------------------------------------------------|--------|
|   | Dated:                December 15, 2005                               |
|   | SAND HILL IT SECURITY                ACQUISITION                CORP. |
|   |                                                                       |
|   | /s/ Humphrey P. Polanen                                               |
|   | Humphrey                P. Polanen                                    |
|   | Chief Executive                Officer                                |
|   |                                                                  |
|   | /s/ Keith Walz                                                        |
|   | Keith                Walz                                             |
|   | Chief Financial Officer                and                Secretary   |

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