Table        of contents

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**Form      10-Q/A**

**Amendment      No. 1**

*,*

**0-13763**

*(Commission      file      No.)*

**TECHNOLOGY RESEARCH CORPORATION**

*(Exact      name of registrant as specified in its charter)*

| **FLORIDA**                                                                                    | **59-2095002**                                        |
|------------------------------------------------------------------------------------------------|-------------------------------------------------------|
| *(State                or other jurisdiction of incorporation or                organization)* | *(I.R.S.                employer identification no.)* |

**5250-140th      Avenue North **

**Clearwater, Florida 33760**

*(Address      of principal executive offices)*

**(727)      535-0572**

*(Registrant’s      telephone number, including area code)*

|  Large                accelerated                filer o |  Accelerated                filer o |  Non-accelerated                filer þ |
|--------------------------------------------------------------------|-----------------------------------------------|--------------------------------------------------------|

----

**EXPLANATORY      NOTE**

**RESTATEMENT**

*Overview*

|   | ·                                 An increase in current income tax expense and current income tax                payable                on deemed dividends from foreign operations triggered by borrowings                under                a joint credit facility with our wholly-owned foreign                subsidiary, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                 An                increase in deferred income tax expense and deferred income tax liability                due to inability to assert the indefinite reversal criteria of APB                23,                *Accounting for Income Taxes – Special Areas*, until the fourth                quarter of fiscal 2006 on earnings from foreign                operations |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                                 An increase in interest expense and interest payable due on the additional                income taxes and related income tax                effects. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Effects      of Restatement***

|                                                            |   | **June                30, 2006** |   | **March                31, 2006** |   |
|-----------------------------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                                            |   | **As****previously****reported** |   | **As****restated**                |   | **As****previously****reported** |   | **As****restated** |   |
|                                                            |   | ***(in thousands)***        |   |
| **Consolidated                Balance Sheets**                  |   |                             |   |                              |   |   |   |   |   |
| Deferred                income taxes                            |   | $                                | 434    |                              | $      | 448 |   | $ | 445 |   | $ | 455 |   |
| Total                current assets                             |   | 20,809                           |   | 20,823                            |   | 24,125 |   | 24,135 |   |
| Total                assets                                     |   | 26,299                           |   | 26,313                            |   | 29,134 |   | 29,144 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Accrued                expenses                                 |   | 1,056                            |   | 1,094                             |   | 1,296 |   | 1,323 |   |
| Income                taxes payable                             |   | 26                               |   | 1,137                             |   | 357 |   | 1,468 |   |
| Total                current liabilities                        |   | 5,423                            |   | 6,572                             |   | 7,604 |   | 8,742 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Total                liabilities                                |   | 6,653                            |   | 7,802                             |   | 9,848 |   | 10,986 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Retained                earnings                                |   | 7,511                            |   | 6,376                             |   | 7,573 |   | 6,445 |   |
| Total                stockholders’ equity                 |   | 19,646                           |   | 18,511                            |   | 19,286 |   | 18,158 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                | 26,299 |                              | $      | 26,313 |   | $ | 29,134 |   | $ | 29,144 |   |

|                                                    |   | **Three                months ended**** June                30, 2006** |   | **Three                months ended**** June                30, 2005** |   |
|---------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                    |   | **As****previously****reported**                                            |   | **As****restated**                                                          |   | **As****previously****reported** |   | **As****restated** |   |
|                                                    |   | ***(in thousands, except per share amounts)***     |
| **Consolidated                Statement of Operations** |   |                                                                        |   |                                                                        |   |   |   |   |   |
| Interest                expense                         |   | $                                                                           | 33     |                                                                        | $      | 44 |   | $ | 50 |   | $ | 51 |   |
| Income                before income taxes               |   | 37                                                                          |   | 26                                                                          |   | 391 |   | 390 |   |
| Income                tax expense                       |   | 10                                                                          |   | 6                                                                           |   | 98 |   | 136 |   |
| Net                income                               |   | $                                                                           | 27     |                                                                        | $      | 20 |   | $ | 293 |   | $ | 254 |   |
| Per                share amounts:                       |   |                                                                        |   |                                                                        |   |   |   |   |   |
| Earnings                per share - basic               |   | $                                                                           | 0.00   |                                                                        | $      | 0.00 |   | $ | 0.05 |   | $ | 0.04 |   |
| Earnings                per share - diluted             |   | 0.00                                                                        |   | 0.00                                                                        |   | 0.05 |   | 0.04 |   |

----

**TECHNOLOGY      RESEARCH CORPORATION**

**FORM      10-Q/A Amendment No. 1**

**TABLE      OF CONTENTS**

| PART                I — FINANCIAL INFORMATION                                                                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                     |
|                                                                                                                                                                                     | Item                1.  Financial Statements |
|                                                                                                                                                                                     |    Condensed                Consolidated Balance Sheets |
|                                                                                                                                                                                     |    Condensed                Consolidated Statements of Operations |
|                                                                                                                                                                                     |    Condensed                Consolidated Statements of Cash Flows |
|                                                                                                                                                                                     |    Notes                to the Condensed Consolidated 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                31.1 — Certification of Chief                Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                     |
| Exhibit                31.2 — Certification of Chief                Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                     |
| Exhibit                32.1 — Certification of Chief                Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                     |
| Exhibit                32.2 — Certification of Chief                Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                     |
|                                                                                                                                                                                     |

----

**PART      I — FINANCIAL INFORMATION**

**Item      1.  Financial Statements**

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

*(In      thousands, except share data)*

|                                                                                                                                                                         |   | **June              30, 2006**  |   |   | **March              31, 2006**  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|
|  **ASSETS**                                                                                                                                                             |   | *(Restated)*                         |   |   | *(Restated)*                     |   |
| Current                assets:                                                                                                                                               |   |                                 |   |   |                                  |   |
|    Cash                and cash equivalents                                                                                                                   | $      | 2,515                                |   |   | 2,607                                 |   |
|                   Short-term investments                                                                                                                           |   | 248                                  |   |   | 500                                   |   |
|    Trade                and other accounts receivable, net of allowance for doubtful accounts                of                $93 and $78, respectively |   | 8,181                                |   |   | 10,730                                |   |
|    Inventories                                                                                                                                                |   | 9,111                                |   |   | 9,633                                 |   |
|                   Deferred income taxes                                                                                                                            |   | 448                                  |   |   | 455                                   |   |
|    Prepaid                expenses and other current assets                                                                                                   |   | 320                                  |   |   | 210                                   |   |
|      Total                current assets                                                                                                            |   | 20,823                               |   |   | 24,135                                |   |
|                                                                                                                                                                         |   |                                 |   |   |                                  |   |
| Property                and equipment, net of accumulated depreciation of $9,634 and $9,346,                respectively                                                |   | 4,849                                |   |   | 4,939                                 |   |
| Intangible                assets, net of accumulated amortization of $10 and $0,                respectively                                                                 |   | 572                                  |   |   | -                                     |   |
| Other                assets                                                                                                                                                  |   | 69                                   |   |   | 70                                    |   |
|                       Total assets                                                                                                             | $      | 26,313                               |   |   | 29,144                                |   |
|                                                                                                                                                                         |   |                                 |   |   |                                  |   |

| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                             |    |   |    |   |         |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|---------|--------|--------------|---------|
| Current                  liabilities:                                                                                                                                                                                    |    |   |    |   |         |    |
|                   Current portion of long-term debt                                                                                                                                                       | $       | 1,000  |    |   | 1,000        |    |
|    Trade                accounts payable                                                                                                                                                                  |    | 3,238  |    |   | 4,850        |    |
|    Accrued                expenses                                                                                                                                                                        |    | 1,096  |    |   | 1,323        |    |
|    Accrued                dividends                                                                                                                                                                       |    | 103    |    |   | 101          |    |
|                   Income taxes payable                                                                                                                                                                         |    | 1,137  |    |   | 1,468        |    |
|      Total                current liabilities                                                                                                                                                   |    | 6,572  |    |   | 8,742        |    |
|                                                                                                                                                                                                                     |    |   |    |   |         |    |
| Long-term debt,                  less current portion                                                                                                                                                               |    | 1,000  |    |   | 2,000        |    |
| Deferred                  income taxes                                                                                                                                                                                   |    | 230    |    |   | 244          |    |
|                     Total liabilities                                                                                                                                                      |    | 7,802  |    |   | 10,986       |    |
|                                                                                                                                                                                                                     |    |   |    |   |         |    |
| Stockholders'                  equity:                                                                                                                                                                    |    |   |    |   |         |    |
|                 Common stock $0.51 par value; 10,000,000 shares authorized, 5,910,328              shares and 5,848,649 shares issued and 5,888,828 shares and 5,827,149              shares outstanding  |    | 3,014  |    |   | 2,983        |    |
|                 Additional paid-in capital                                                                                                                                                                     |    | 9,161  |    |   | 8,770        |    |
|                 Retained earnings                                                                                                                                                                              |    | 6,376  |    |   | 6,445        |    |
|                 Common stock held in treasury, 21,500 shares, at cost                                                                                                                                          |    | (40    | )  |   | (40          | )  |
|                   Total stockholders' equity                                                                                                                                                         |    | 18,511 |    |   | 18,158  |    |
|                      Total liabilities and stockholders' equity                                                                                                                       | $  | 26,313 |    |   | 29,144  |    |
|                                                                                                                                                                                                                     |    |   |    |   |         |    |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

----

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

*(In      thousands, except share data)*

|                                                                                                                           |   | **Three                months ended June 30,** |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
|                                                                                                                           |   |                                           | **2006** |   |   | **2005** |   |
|                                                                                                                           |   |                                           | *(Restated)* |   |   | *(Restated)* |   |
| Revenues:                                                                                                                      |   |                                           |   |   |   |   |   |
|                   Commercial                                                                                         |   | $                                              | 7,953 |   |   | 7,928 |   |
|    Military                                                                                                     |   |                                           | 2,662 |   |   | 2,649 |   |
|        Total                revenues                                                        |   |                                           | 10,615 |   |   | 10,577 |   |
| Cost                of sales                                                                                         |   |                                           | 8,186 |   |   | 8,284 |   |
|                         Gross profit                                              |   |                                           | 2,429 |   |   | 2,293 |   |
| Operating                expenses:                                                                                        |   |                                           |   |   |   |   |   |
|                   Selling and marketing                                                                              |   |                                           | 721 |   |   | 641 |   |
|                   General and administrative                                                                         |   |                                           | 1,158 |   |   | 734 |   |
|                   Research and development (includes $17 and $0 of                                                   |   |                                           |   |   |   |   |   |
|                      purchased in-process research and development,                respectively) |   |                                           | 486 |   |   | 487 |   |
|                      Total operating expenses                                                    |   |                                           | 2,365 |   |   | 1,862 |   |
|                          Income from operations                                   |   |                                           | 64 |   |   | 431 |   |
| Other                income (expense):                                                                                         |   |                                           |   |   |   |   |   |
|                   Interest expense                                                                                   |   |                                           | (44 | ) |   | (51 | )  |
|                   Other income                                                                                       |   |                                           | 6 |   |   |  10 |   |
|                                                                                                                           |   |                                           | (38 | ) |   | (41 | )  |
|  Income                before income taxes                                                                           |   |                                           | 26 |   |   | 390 |   |
| Income                tax expense                                                                                              |   |                                           | 6 |   |   | 136 |   |
|                   Net income                                                                                    |   | $                                              | 20 |   |   | 254 |   |
|                                                                                                                           |   |                                           |   |   |   |   |   |
| Earnings                per share - basic                                                                                      |   | $                                              | 0.00 |   |   | 0.04 |   |
|                                                                                                                           |   |                                           |   |   |   |   |   |
| Earnings                per share - diluted                                                                                    |   | $                                              | 0.00 |   |   | 0.04 |   |
|                                                                                                                           |   |                                           |   |   |   |   |   |
| Shares                outstanding - basic                                                                                      |   |                                           | 5,873,408 |   |   | 5,774,375 |   |
|                                                                                                                           |   |                                           |   |   |   |   |   |
| Shares                outstanding - diluted                                                                                    |   |                                           | 5,927,372 |   |   | 5,841,212 |   |
|                                                                                                                           |   |                                           |   |   |   |   |   |
| Dividends                declared per share                                                                               |   | $                                              | .015 |   |   | .015 |   |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

----

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

*(In      thousands)*

|                                                                                                                                                                               | **Three Months                Ended June 30,** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|
|                                                                                                                                                                               |                                                          |   |   | **2006** |   |   |   | **2005** |   |
|                                                                                                                                                                               |                                                          |   |   | *(Restated)* |   |   |   | *(Restated)* |   |
| Cash                flows from operating activities:                                                                                                                               |                                                          |   |   |   |   |   |   |   |   |
|    Net                income                                                                                                                                        |                                                          |   | $ | 20 |   |   |   | 254 |   |
|                   Adjustments to reconcile net income to net cash provided by operating                activities:          |                                                          |
|    Accretion                of interest on short-term investments                                                                                              |                                                          |   |   | (3 | )  |   |   | (2 | )  |
|    Change                in allowance for doubtful accounts                                                                                                         |                                                          |   |   | (15 | )  |   |   | 26 |   |
|    Depreciation                                                                                                                                                     |                                                          |   |   | 283 |   |   |   | 318 |   |
|    In-process                research and development                                                                                                               |                                                          |   |   | 17 |   |   |   | - |   |
|    Amortization                of intangible assets                                                                                                                 |                                                          |   |   | 10 |   |   |   | - |   |
|                   Stock compensation expense                                                                                                                             |                                                          |   |   | 23 |   |   |   | - |   |
|    Changes                in operating assets and liabilities, net of effects of                acquisition:                |                                                          |   |
|       Trade                and other accounts receivable, net                                                                                        |                                                          |   |   | 2,564 |   |   |   | 2,892 |   |
|                      Inventories                                                                                                                          |                                                          |   |   | 601 |   |   |   | (519 | )  |
|                      Deferred income taxes                                                                                                                |                                                          |   |   | (7 | )  |   |   | (314 | )  |
|                      Prepaid expenses and other current assets                                                                                            |                                                          |   |   | (110 | )  |   |   | 116 |   |
|                      Other assets                                                                                                                         |                                                          |   |   | 1 |   |   |   | 24 |   |
|       Trade                accounts payable                                                                                                          |                                                          |   |   | (1,612 | ) |   |   | (2,629 | )  |
|       Accrued                expenses                                                                                                                |                                                          |   |   | (229 | ) |   |   | (251 | )  |
|       Income                taxes payable                                                                                                            |                                                          |   |   | (331 | )  |   |   | 250 |   |
|         Net                cash provided by operating activities                                                                           |                                                          |   |   | 1,212 |   |   |   | 165 |   |
| Cash                flows from investing activities:                                                                                                                               |                                                          |   |   |   |   |   |   |   |   |
|    Maturities of short-term                investments                                                                                                    |                                                          |   |   | 499 |   |   |   | - |   |
|    Purchase                of short-term investments                                                                                                                |                                                          |   |   | (244 | )  |   |   | - |   |
|    Acquisition                of business                                                                                                                           |                                                          |   |   | (331 | )  |   |   | - |   |
|    Purchases                of property and equipment                                                                                                          |                                                          |   |   | (193 | )  |   |   | (271 | )  |
|         Net                cash used in investing activities                                                                          |                                                          |   |   | (269 | )  |   |   | (271 | )  |
| Cash                flows from financing activities:                                                                                                                          |                                                          |   |   |   |   |   |   |   |   |
|                   Repayments of short-term debt                                                                                                                          |                                                          |   |   | (1,000 | )  |   |   | (340 | )  |
|    Proceeds                from the exercise of stock options                                                                                                       |                                                          |   |   | 52 |   |   |   | 2 |   |
|    Cash                dividends paid                                                                                                                               |                                                          |   |   | (87 | )  |   |   | (86 | )  |
|         Net                cash used in financing activities                                                                     |                                                          |   |   | (1,035 | )  |   |   | (424 | )  |
| Net                decrease in cash and cash equivalents                                                                                                                      |                                                          |   |   | (92 | )  |   |   | (530 | )  |
| Cash                and cash equivalents at beginning of period                                                                                                                    |                                                          |   |   | 2,607 |   |   |   | 815 |   |
| Cash                and cash equivalents at end of period                                                                                                                     |                                                          |   | $ | 2,515 |   |   |   | 285 |   |
| Non-cash                investing in financing activities:                                                                                                                    |                                                          |   |   |   |   |   |   |   |   |
|                   Common stock issued upon acquisition of recreational vehicle product                line                business                                       |                                                          |   |  $ | 347 |   |   |   | - |   |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

----

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

**Notes      to the Condensed Consolidated Financial Statements**

*(In      thousands, except share data)*

**1.  **

*Restatement*

***Overview***

|   | ·                                 An increase in current income tax expense and current income tax                payable                on deemed dividends from foreign operations triggered by borrowings                under                a joint credit facility with our wholly-owned foreign                subsidiary, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                 An                increase in deferred income tax expense and deferred income tax liability                due to inability to assert the indefinite reversal criteria of APB                23                until the fourth quarter of fiscal 2006 on earnings from foreign                operations |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                                 An increase in interest expense and interest payable due on the additional                income taxes and related income tax                effects. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Accounting for Uncertainty in      Income Taxes*

*Accounting for Income Taxes.*

***Effects      of Restatement***

|                                                            |   | **June                30, 2006** |   | **March                31, 2006** |   |
|-----------------------------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                                            |   | **As****previously****reported** |   | **As****restated**                |   | **As****previously****reported** |   | **As****restated** |   |
|                                                            |   | ***(in thousands)***        |   |
| **Consolidated                Balance Sheets**                  |   |                             |   |                              |   |   |   |   |   |
| Deferred                income taxes                            |   | $                                | 434    |                              | $      | 448 |   | $ | 445 |   | $ | 455 |   |
| Total                current assets                             |   | 20,809                           |   | 20,823                            |   | 24,125 |   | 24,135 |   |
| Total                assets                                     |   | 26,299                           |   | 26,313                            |   | 29,134 |   | 29,144 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Accrued                expenses                                 |   | 1,056                            |   | 1,094                             |   | 1,296 |   | 1,323 |   |
| Income                taxes payable                             |   | 26                               |   | 1,137                             |   | 357 |   | 1,468 |   |
| Total                current liabilities                        |   | 5,423                            |   | 6,572                             |   | 7,604 |   | 8,742 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Total                liabilities                                |   | 6,653                            |   | 7,802                             |   | 9,848 |   | 10,986 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Retained                earnings                                |   | 7,511                            |   | 6,376                             |   | 7,573 |   | 6,445 |   |
| Total                stockholders’ equity                 |   | 19,646                           |   | 18,511                            |   | 19,286 |   | 18,158 |   |
|                                                            |   |                             |   |                              |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                | 26,299 |                              | $      | 26,313 |   | $ | 29,134 |   | $ | 29,144 |   |

|                                                    |   | **Three                months ended**** June                30, 2006** |   | **Three                months ended**** June                30, 2005** |   |
|---------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                    |   | **As****previously****reported**                                            |   | **As****restated**                                                          |   | **As****previously****reported** |   | **As****restated** |   |
|                                                    |   | ***(in thousands, except per share amounts)***     |
| **Consolidated                Statement of Operations** |   |                                                                        |   |                                                                        |   |   |   |   |   |
| Interest                expense                         |   | $                                                                           | 33     |                                                                        | $      | 44 |   | $ | 50 |   | $ | 51 |   |
| Income                before income taxes               |   | 37                                                                          |   | 26                                                                          |   | 391 |   | 390 |   |
| Income                tax expense                       |   | 10                                                                          |   | 6                                                                           |   | 98 |   | 136 |   |
| Net                income                               |   | $                                                                           | 27     |                                                                        | $      | 20 |   | $ | 293 |   | $ | 254 |   |
| Per                share amounts:                       |   |                                                                        |   |                                                                        |   |   |   |   |   |
| Earnings                per share - basic               |   | $                                                                           | 0.00   |                                                                        | $      | 0.00 |   | $ | 0.05 |   | $ | 0.04 |   |
| Earnings                per share - diluted             |   | 0.00                                                                        |   | 0.00                                                                        |   | 0.05 |   | 0.04 |   |

*2.       Basis of Presentation: *

**Company**

*3.  Earnings      Per Share:*

|                                                                          |   | **Three                months ended June 30,** |   |
|-------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                          |   | **2006**                                       |   | **2005** |   |
|                                                                          |   | *(Restated)*                                   |   | *(Restated)* |   |
| Net                income                                                     | $      | 20                                             |   | 254 |   |
|                                                                          |   | ** **                                |   | ** **  |   |
| Weighted                average shares outstanding - basic                    |   | 5,873,408                                      |   | 5,774,375 |   |
| Dilutive                common shares issuable upon exercise of stock options |   | 53,964                                         |   | 66,837 |   |
| Weighted                average shares - diluted                              |   | 5,927,372                                      |   | 5,841,212 |   |
|                                                                          |   |                                      |   |    |   |
| Earnings                per share:                                            |   |                                           |   |   |   |
|                   Basic                                             | $      | 0.00                                           |   | 0.04 |   |
|                   Diluted                                           | $      | 0.00                                           |   | 0.04 |   |

*4.       Short-term Investments: *

*held-to-maturity*

*5.       Inventories:*

|  **June                30, 2006** | ** ** | **March                31, 2006** |
|----------------------------------------|------------|-----------------------------------|
|                                   |       |                              |   |
| Raw              materials             |       |                              | $ | 6,169 |   |   |   | 6,618 |   |
| Work-in-process                        |       |                              |   | 495 |   |   |   | 449 |   |
| Finished              goods            |       |                              |   | 2,447 |   |   |   | 2,566 |   |
|                                   |            |                              |  |
| Total                                  |       |                              | $ | 9,111 |   |   |   | 9,633 |   |
|                                   |            |                              |  |

*6.      Warranty: *

|                                         | **Three                months ended June 30,**   |
|----------------------------------------------|------------------------------------------------------------|
|                                         |                                                       |   |   | **2006** |   |   |   | **2005** |   |
|                                         |                                                       |   |   |   |   |   |   |   |   |
| Beginning                balance             |                                                       |   | $ | 111 |   |   |   | 310 |   |
|                   Warranty expense |                                                       |   |   | 48 |   |   |   | 87 |   |
|                   Warranty claims  |                                                       |   |   | (29 | ) |   |   | (55 | ) |
| Ending                balance                |                                                       |   | $ | 130 |   |   |   | 343 |   |
|                                         |                                                       |   |   |

*7.  Debt: *

**LIBOR**

*8.       Stockholders' Equity*

|                                                                                               |   |   |                            |    | **Additional** |   |               |   |               |    | **Total**         |   |
|----------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|---------|----------------|--------|--------------------|--------|--------------------|---------|-------------------|--------|
|                                                                                               |   |   | **Common                stock** |    | **paid-in**    |   |  **Retained** |   |  **Treasury** |    | **stockholders'** |   |
|                                                                                               |   |   | **Shares**                      |    | **Amount**     |   | **capital**        |   | **earnings**       |    | **stock**         |   | **equity** |   |
| Balances                as of March 31, 2006 *(restated)*:                                    |   |   | 5,827,149                       |  $ |  2,983    |   |  8,770        |   | 6,445              |    |  (40)        |   | 18,158 |   |
|                                                                                               |   |   |                            |    |           |   |               |   |               |    |              |   |   |   |
|                   Dividends - $0.015 per share                                           |   |   |  -                         |    | -              |   | -                  |   |  (89          | )  |  -           |   | (89 | )  |
|                   Net income *(restated)*                                                |   |   |  -                         |    |  -        |   | -                  |   | 20                 |    |  -           |   | 20 |   |
|                   Shares issued upon acquisition (note 9)                                |   |   | 51,679                          |    | 26             |   | 321                |   | -                  |    | -                 |   | 347 |   |
|                   Stock compensation expense                                             |   |   | -                               |    | -              |   | 23                 |   | -                  |    | -                 |   | 23 |   |
|                   Exercise of stock options                                              |   |   | 10,000                          |    | 5              |   | 47                 |   |  -            |    |  -           |   | 52 |   |
|                      Balances as of June 30, 2006 *(restated)*: |   |   | 5,888,828                       |  $ | 3,014          |   | 9,161              |   | 6,376              |    | (40)              |   | 18,511 |   |
|                                                                                               |   |   |                            |    |           |   |               |   |               |    |              |   |   |   |

*9.       Stock-Based Compensation: *

*Share-Based Payment, *
**SFAS 123R**
*Accounting for Stock issued to Employees *
**APB 25**
*Accounting for Stock-Based      Compensation *
**SFAS 123**
*Accounting for Stock-Based      Compensation-Transition and Disclosure.*

|                                                                                                                                                                                      |  **Three                months                ended** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
|                                                                                                                                                                                      |   **June                30, 2005**          |
|                                                                                                                                                                                      |                                                       |   | *(Restated)* |   |
| Net                income - as reported                                                                                                                                                   |                                                       |  $ | 254 |   |
| Total                stock-based employee compensation expense determined under fair value                based method for all awards, net of related income taxes of                $409 |                                                       |   | (1,227 | )  |
| Net                loss - pro forma                                                                                                                                                       |                                                       |  $ | (973 | )  |
| Basic                earnings (loss) per share:                                                                                                                                           |                                                       |   |   |   |
|          As                reported                                                                                                          |                                                       |  $ | 0.04 |   |
|                                                                                                                                                                                      |                                                       |   |   |   |
|                          Pro forma                                                                                                      |                                                       |  $ | (0.17 | )  |
| Diluted earnings                (loss) per share:                                                                                                                               |                                                       |   |   |   |
|                          As reported                                                                                                         |                                                       |  $ | 0.04 |   |
|                                                                                                                                                                                      |                                                       |   |   |   |
|                          Pro forma                                                                                                           |                                                       |  $ | (0.17 | )  |
|                                                                                                                                                                                      |                                                       |   |   |   |

*Stock      Option Plans*

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |                                                              |   | **Aggregate**(1)                     |   | **Weighted**                                     |   | **Weighted**                        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|--------------------------------------|--------|-------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **Shares**                                                        |   |                                                              |   | **intrinsic**                        |   | **average**                                           |   | **average**                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | ** available**                                               |   | **Options**                                                       |   | **value**                            |   | **exercise**                                          |   | **remaining**                       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | ** for                grant**                                |   | **outstanding**                                                   |   | **(in                thousands)**    |   | **price**                                             |   | **contractual                life** |   |
| Balance as                of March 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 603,850                                                           |   | 540,911                                                           |   | $                745                 |   | $                7.86                                 |   | 5.05                                |   |
|                   Options authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         - |   |                         - |   |                            |   |                       -      |   |                      |   |
|                   Options expired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                         - |   |                         - |   |                            |   |                       - |   |                      |   |
|                   Options granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   (10,000)                                              |   |  10,000                                                      |   |             |   | $                6.04                                 |   |  10.00          |   |
|                   Options canceled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          -           |   |                         - |   |                            |   |                       -      |   |                      |   |
|                   Options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                         - |   |  (10,000)                                                    |   |        |   | $                5.17                                 |   |                    0 |   |
| Balance                as of June 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 593,850                                                           |   | 540,911                                                           |   | $                114                 |   |  $                7.87                           |   | 4.82                                |   |
| Exercisable as                of June 30, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                              |   | 500,911                                                           |   | $                114                 |   | $                7.94                                 |   | 4.43                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                              |   |                                                              |   |                                 |   |                                                  |   |                                |   |
| Footnote:1 The                aggregate intrinsic value represents the total pretax intrinsic value,                based on the Company’s closing stock price of $7.27 as of March 31, 2006                and of $5.09 as of June 30, 2006 and on the dates options were                granted or exercised, which would have been received by the                option holders had all option holders exercised their options as of                that date, including only those options that are                in-the-money. |

|                                         |   | **Three                months ended June 30,** |   |
|----------------------------------------------|--------|------------------------------------------------|--------|
|                                         |   |  **2006**                                 |   |  **2005** |   |
|                                         |   |                                           |   |   |   |
| Expected                dividend yield  |   |    1.12%                        |   |  N/A |   |
| Risk                free interest rate  |   |                   5.05%              |   |  N/A |   |
| Expected                volatility      |   |  88.29%                                   |   |  N/A |   |
| Expected                life            |   |  6.48                years                |   |  N/A |   |

*10.       Acquisition*

**AEC**

| Cash                paid to seller                          | $279                           |
|-------------------------------------------------------------|--------------------------------|
| Cash                paid for acquisition costs              |                   52 |
| Common                stock issued to seller, 51,679 shares |  347                      |
|                   Total                           | $678                           |
|                                                        |                           |

|                                                                                                                                          |    |                          |  Estimated                useful lives |
|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------|---------------------------------------------|
| Inventories                                                                                                                              |  $ |    79          | N/A                                         |
| Intangible                assets:                                                                                                        |    |                          |                                        |
|                   Developed technology                                                                                              |    |  417                     | 10                years                     |
|                   Patents                                                                                                           |    |                  84      | 10 years                               |
|                   Purchased customer relationships                                                                                  |    |                  67      |                  9 years          |
|                   Trademarks                                                                                                        |    |                   6 |  1                year                 |
|                   Covenant not-to-compete                                                                                           |    |                   8 |   5                years          |
| In-process                research and development                                                                                            |    |  17                      | *                                           |
|                       Total                                                                                     |  $ | 678                           |                                        |
|                                                                                                                                          |    |                          |                                        |
| *                 Written-off during the first quarter of fiscal 2007 and reported                in research and development. |

|                                      | **Three                months ended June 30,** |
|-------------------------------------------|-----------------------------------------------------|
|                                      |                                                |   | **2006** |   |   | **2005** |   |   |
|                                      |                                                |   | *(Restated)* |   |   | *(Restated)* |   |   |
| Revenues                                  |                                                |  $ | 10,666 |   |   | 10,679 |   |   |
| Net                income                 |                                                | $ | 22 |   |   | 258 |   |   |
| Diluted                earnings per share |                                                | $ | 0.00 |   |   | 0.04 |   |   |

*11.       Litigation*

*Fire Shield*
*Fire Shield*
*Fire Shield*

*Mini Appliance Current Interrupter*

*12.      Subsequent Event*

*Tower      Litigation*

**.  **

**Tower**

**Item      2.  Management’s Discussion and Analysis of Financial      Condition and Results of Operations.**

***DISCLOSURE      REGARDING FORWARD-LOOKING STATEMENTS***

***OVERVIEW***

*Fire Shield*
*Surge Guard Plus*
**UL**
**RAC**
*Fire Shield*
**LCDI**

*Risk      Factors*

***RESULTS OF      OPERATIONS***

**    R**
***evenues***

***    Gross      profit***

***    Selling      and      marketing***

***    General      and      administrative***

***    Research      and      development***

***    Other income      (expense)***

***    Income      tax      expense***

***Net      income***

***LIQUIDITY AND      CAPITAL RESOURCES***

**LIBOR**

***OFF-BALANCE      SHEET ARRANGEMENTS***

***NEW      ACCOUNTING STANDARDS***

*Inventory Costs*
*Restatement and Revision of Accounting Research      Bulletins*

*Accounting for Stock-Based      Compensation*
*Accounting for Stock issued to      Employees*

*Accounting Changes and Error      Corrections*
*Accounting Changes*
*Reporting Accounting      Changes in Interim Financial Statements*

*Accounting for Certain Hybrid Financial      Instruments—an amendment of FASB Statements No. 133 and 140*
*Accounting for Derivative      Instruments and Hedging Activities*
*Accounting for      Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*
*Application of Statement 133 to Beneficial      Interests in Securitized Financial Assets*

***CRITICAL      ACCOUNTING POLICIES***

*Disclosure Regarding Forward-Looking Statements*
*Risk Factors*

***    Revenue      Recognition/Allowance for Doubtful Accounts.***

***    Inventories.***

***    Income      Taxes***
**.**

***    Warranty***
**.**

***    Impairment      of      Long-Lived Assets.***
*Accounting for Impairment or Disposal of Long-Lived Assets*

**Item      3.  Quantitative and Qualitative Disclosures About Market      Risk.**

**Item      4.  Controls and Procedures.**

*Disclosure      Controls and Procedures*

**Certifying Officers**

*Changes      in Internal Control over Financial Reporting*

*Accounting for Uncertainty in Income Taxes*

**PART      II — OTHER INFORMATION**

**Item      1.  Legal Proceedings.**

*Fire Shield*
*Fire Shield*
*Fire      Shield*

*Mini Appliance Current Interrupter*

**.  **

**Tower**

**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.**

|   | Exhibit                31.1 — Certification of the CEO pursuant to Rule 13a-14(a) or Rule                15(d)-14(a).                                             |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |
|   | Exhibit                31.2 — Certification of the CFO pursuant to Rule 13a-14(a) or Rule                15(d)-14(a).                                             |   |
|   |
|   | Exhibit                32.1 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to                Section 906 of the Sarbanes-Oxley Act of 2002. |   |
|   |
|   | Exhibit                32.2 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to                Section 906 of the Sarbanes-Oxley Act of 2002. |   |
|   |

----

**SIGNATURES**

|                               | TECHNOLOGY                RESEARCH CORPORATION                                                                                                                                                                                                                                                                                 |
|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                           |
| June                19, 2007       | By:                      /s/  Owen                Farren                                                                              |
|                               |              Owen                Farren                                                                                                                                                                                                                       |
|                               |                             Chairman, President and Chief Executive Officer                                                                                                                                                                                        |
|                               |                             (Principal Executive Officer)                                                                                                                                                                                                          |
|                               |
|                               |
| June                19, 2007  | By:                      /s/ Barry                H. Black                                                   |
|                               |              Barry                H. Black                                                                                                                                                                                                                    |
|                               |                             Chief Financial Officer                                                                                                                                                                                                                |
|                               |                             (Principal Financial and Accounting                Officer)                                                                                                                                                                            |

----