UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
    (Mark one)

[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

                For the Quarterly period ended September 30, 2006

                                       OR

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

                   For the transition period from           to

                          COMMISSION FILE NUMBER 0-3936

                            ORBIT INTERNATIONAL CORP.
        (Exact name of small business issuer as specified in its charter)

          DELAWARE                                        11-1826363
(State or other jurisdiction     of                    (I.R.S. Employer
incorporation or organization)                      Identification Number)


                    80 CABOT COURT, HAUPPAUGE, NEW YORK 11788
                    (Address of principal executive offices)

                                  631-435-8300
                (Issuer's telephone number, including area code)

                                       N/A
    (Former name, former address and formal fiscal year, if changed since last
                                     report)

Check  whether  the  registrant  (1)  filed  all reports required to be filed by
Section  13  or  15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and  (2) has been subject to such filing requirements for the past 90
days.
Yes     X  No  ___
        -

Indicate  by  check mark whether the registrant is a shell company(as defined in
Rule  12b-2  of  the  Exchange  Act):  Yes___  No  X
                                                  --

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

The  number  of shares outstanding of registrant's Common Stock, par value $.10,
as  of  November  8,  2006  was  4,583,071.
                                 ---------

Transitional Small Business Disclosure Format (check one): Yes___ No X
                                                                    --



                                      INDEX

                                                                        Page No.
                                                                        --------

Report of Independent Registered Public Accounting Firm                    3

Part  I.     Financial  Information:

     Item  1  -  Financial  Statements:

     Condensed  Consolidated  Balance  Sheet  -
     September  30,  2006(unaudited)  and  December  31,  2005            4-5

     Condensed  Consolidated  Statements  of  Operations
     (unaudited)  Nine  and  Three  Months  Ended
       September  30,  2006  and  2005                                     6

     Condensed  Consolidated  Statement  of  Cash  Flows
     (unaudited)  Nine  Months  Ended  September  30,  2006  and 2005      7

     Notes  to  Condensed  Consolidated  Financial  Statements            8-16

     Item  2  -  Management's  Discussion  and  Analysis  of  Financial
     Condition  and  Results  of  Operations                             17-25

     Item  3  -  Controls  and  Procedures                                 26

Part  II.     Other  Information:

     Item  6  -  Exhibits  and  Reports  on  Form  8-K                     27

     Signatures                                                            28

     Exhibits                                                            29-34

<PAGE>



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM




To  the  Stockholders  and  Board  of  Directors
Orbit  International  Corp.


We  have reviewed the accompanying condensed consolidated balance sheet of Orbit
International  Corp.  and Subsidiaries as of September 30, 2006, and the related
condensed  consolidated  statements  of  operations  for  the  nine-month  and
three-month  periods  ended  September  30,  2006  and  2005  and  the condensed
consolidated statements of cash flows for the nine-month periods ended September
30,  2006  and  2005.  These  financial statements are the responsibility of the
Company's  management.

We  conducted  our  reviews  in  accordance with standards of the Public Company
Accounting  Oversight  Board  (United  States).  A  review  of interim financial
information  consists  principally  of applying analytical procedures and making
inquiries  of  persons  responsible for financial and accounting matters.  It is
substantially  less  in  scope than an audit in accordance with the standards of
the  Public  Company  Accounting  Oversight Board, the objective of which is the
expression  of  an  opinion regarding the financial statements taken as a whole.
Accordingly,  we  do  not  express  such  an  opinion.

Based on our reviews, we are not aware of any material modifications that should
be  made to the condensed consolidated financial statements referred to above in
order for them to be in conformity with accounting principles generally accepted
in  the  United  States  of  America.

We  have  previously  audited,  in  accordance  with the standards of the Public
Company  Accounting  Oversight  Board,  the  consolidated balance sheet of Orbit
International  Corp.  and  Subsidiaries as of December 31, 2005, and the related
consolidated  statements  of operations, stockholders' equity and cash flows for
the year then ended (not presented herein); and in our report dated February 23,
2006,  we expressed an unqualified opinion on those financial statements. In our
opinion,  the  information  set forth in the accompanying condensed consolidated
balance  sheet  as  of  December  31,  2005,  is  fairly stated, in all material
respects,  in  relation to the consolidated balance sheet from which it has been
derived.



GOLDSTEIN  GOLUB  KESSLER  LLP
New  York,  New  York



October  31,  2006



<TABLE>
<CAPTION>


                            PART I - FINANCIAL INFORMATION


Item 1.     FINANCIAL STATEMENTS

                      ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED BALANCE SHEET



<S>                                                              <C>       <C>            <C>
                                                           September 30,   December 31,
                                                                   2006          2005
                                                           ------------    ------------
                                                            (unaudited)

ASSETS
---------------

Current assets:

                 Cash and cash equivalents                 $   2,826,000  $ 3,933,000
                 Investments in marketable securities          3,496,000    1,012,000
                 Accounts receivable (less allowance for
                 doubtful accounts)                            4,110,000    3,695,000
                 Inventories                                   9,127,000    9,055,000
                 Deferred tax asset                              717,000      784,000
                 Other current assets                            136,000      130,000
                                                           -------------  -----------

                 Total current assets                         20,412,000   18,609,000

                 Property and equipment, net                     437,000      357,000

                 Goodwill                                      6,135,000    6,130,000

                 Intangible assets, net                        1,312,000    1,639,000

                 Deferred tax asset                            1,321,000    1,219,000

                 Other assets                                    563,000    1,198,000
                                                           -------------  -----------


                 TOTAL ASSETS                              $  30,180,000  $29,152,000
                                                           =============  ===========






<FN>






See accompanying notes.

</TABLE>




<TABLE>
<CAPTION>



                                      ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                                         CONDENSED CONSOLIDATED BALANCE SHEET
                                                      (continued)



                                                              September 30,      December 31,
                                                                2006                2005
                                                             --------------     --------------
                                                              (unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------------
<S>                <C>                                                 <C>             <C>
Current liabilities:

                 Current portion of long-term obligations    $   1,125,000      $ 1,125,000
                 Accounts payable                                1,134,000          857,000
                 Accrued expenses                                1,289,000        1,447,000
                 Customer advances                                   2,000          256,000
                 Deferred income                                    85,000           85,000
                                                               -----------      -----------

                 Total current liabilities                       3,635,000        3,770,000

                 Deferred income                                   449,000          513,000

                 Long-term obligations, net of current
                 maturities.                                     4,435,000        5,279,000
                                                              ------------      -----------

                 Total liabilities                               8,519,000        9,562,000
                                                              ------------      -----------

STOCKHOLDERS' EQUITY

                Common stock - $.10 par value, 10,000,000
                shares authorized, 4,583,000 and 4,575,000
                shares issued and outstanding in 2006
                and 2005, respectively                             458,000          457,000
                Additional paid-in capital                      19,467,000       20,600,000
                Unearned compensation                                 -          (1,340,000)
                Accumulated other comprehensive loss               (15,000)          (4,000)
                Retained earnings (accumulated deficit)          1,751,000         (123,000)
                                                              ------------      ------------

                Total stockholders' equity                      21,661,000       19,590,000
                                                              ------------     ------------


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $  30,180,000     $ 29,152,000
                                                             =============     ============



<FN>




See accompanying notes.

</TABLE>






<TABLE>
<CAPTION>



                               ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                               (unaudited)

<S>                   <C>                        <C>                   <C>          <C>         <C>

                                      Nine Months Ended                 Three Months Ended
                                         September 30,                     September 30,
                                    2006            2005               2006              2005
                                    ----            ----               -----             ----


Net sales                    $  18,910,000      $ 18,629,000       $6,171,000          $6,501,000

Cost of sales                   10,699,000        10,325,000        3,544,000           3,611,000
                                ----------        ----------      -----------          ----------

Gross profit                     8,211,000         8,304,000        2,627,000           2,890,000
                                ----------        ----------      -----------          -----------

Selling, general and
 administrative
  expenses                       6,218,000         5,996,000        2,017,000           2,061,000
Interest expense                   339,000           215,000          111,000             112,000
Investment and
 other income, net               ( 250,000)       (  132,000)        ( 99,000)           ( 55,000)
                               -----------        ----------       ----------          -----------
Income before
 provision for
  income taxes                   1,904,000         2,225,000          598,000             772,000

Provision for
  income taxes                      30,000              -               5,000                -
                               -----------        ----------       ----------           ----------


NET INCOME                      $1,874,000     $   2,225,000        $593,000             $772,000
                                ==========     =============        ========             =========

Net income per
common share:


Basic                         $    .43         $     .56           $   .14              $    .18
Diluted                       $    .40         $     .51           $   .13              $    .17







<FN>






See accompanying notes.

</TABLE>


<TABLE>
<CAPTION>

ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)

<S>                                           <C>                                            <C>                     <C>
                                                                   Nine Months Ended
                                                                     September 30,
                                                                   2006            2005
                                                            -------------    ----------
Cash flows from operating activities:
     Net income                                             $   1,874,000    $2,225,000
     Adjustments to reconcile net income
     to net cash provided by
     operating activities:
     Stock-based compensation expense                             158,000            -
     Amortization of intangible assets                            327,000      217,000
     Depreciation and amortization                                 97,000      127,000
     Bond premium amortization                                     32,000       12,000
     Deferred income                                              (64,000)     (64,000)
     Expense due to stock grant                                         -      132,000

Changes in operating assets and liabilities:
     Accounts receivable                                         (415,000)    (505,000)
     Inventories                                                  (72,000)     (65,000)
     Other current assets                                          (6,000)      (4,000)
     Other assets                                                 635,000     (124,000)
     Accounts payable                                             277,000      357,000
     Due to former shareholders of Tulip/TDLM                           -     (450,000)
     Accrued expenses                                            (158,000)     108,000
     Customer advances                                           (254,000)     297,000
                                                              ------------  -----------

Net cash provided by operating activities                       2,431,000    2,263,000

Cash flows from investing activities:

    Cash paid for direct costs relating to
    Tulip acquisition                                             (5,000)   (4,688,000)
    Purchases of property and equipment                         (177,000)      (89,000)
    Proceeds from sale of marketable securities                  158,000            -
    Purchase of marketable securities                         (2,685,000)     (727,000)
                                                              -----------    ----------

Net cash used in investing activities                         (2,709,000)   (5,504,000)

Cash flows from financing activities:

    Repayments of long-term debt                                (844,000)     (349,000)
    Proceeds from issuance of long term debt                           -     5,000,000
    Proceeds from exercise of stock options                       15,000     1,224,000
                                                              -----------   ----------

Net cash (used in) provided by
financing activities                                            (829,000)    5,875,000

NET (DECREASE) INCREASE IN CASH AND
 CASH EQUIVALENTS                                             (1,107,000)    2,634,000

Cash and cash equivalents - January 1                          3,933,000     1,112,000
                                                             -----------    ----------

CASH AND CASH EQUIVALENTS - September 30                  $    2,826,000   $ 3,746,000
                                                          ==============   ============

Supplemental cash flow information:

    Cash paid for interest                                $      344,000    $  152,000
<FN>


</TABLE>




                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(NOTE  1)  -  Basis  of  Presentation:
 -------      -----------------------

     The  interim  financial  information  herein is unaudited.  However, in the
opinion  of  management,  such  information reflects all adjustments (consisting
only  of  normal  recurring  accruals)  necessary for a fair presentation of the
results  of  operations for the periods being reported.  Additionally, it should
be  noted  that  the accompanying condensed consolidated financial statements do
not  purport  to  contain  complete  disclosures  required  for annual financial
statements  in  conformity  with  generally  accepted  accounting  principles.

     The results of operations for the nine and three months ended September 30,
2006,  are  not necessarily indicative of the results of operations for the full
fiscal  year  ending  December  31,  2006.

     These  condensed consolidated statements should be read in conjunction with
the  Company's  consolidated  financial  statements  for  the  fiscal year ended
December  31,  2005  contained  in  the  Company's  Form  10-KSB.

     On  June  24,  2005,  the Board of Directors approved a twenty-five percent
(25%)  stock  dividend  to  shareholders of record on July 18, 2005. The payable
date  for  the dividend was July 29, 2005. The stock dividend has been accounted
for  as  a  5  for  4  stock  split.

     For  comparability,  certain  2005  amounts  have  been reclassified, where
appropriate,  to  conform  to  the  financial  statements  presentation in 2006.

     In  July 2006, the Financial Accounting Standards Board("FASB") issued FASB
Interpretation  No.  48,  Accounting  for  Uncertainty  in  Income  Taxes,  an
interpretation  of FASB Statement No. 109("FIN 48"), which provides criteria for
the  recognition,  measurement,  presentation  and  disclosure  of uncertain tax
positions. A tax benefit from an uncertain position may be recognized only if it
is  "more  likely  than  not"  that  the  position  is  sustainable based on its
technical  merits.  The  provisions  of  FIN  48  are effective for fiscal years
beginning  after  December  15,  2006.  We do not expect that FIN 48 will have a
material  effect  on  our  consolidated  financial  condition  or  results  of
operations.  The Company is currently evaluating the effect, if any, that FIN 48
will  have  on  its  consolidated  financial  position or results of operations.

     At  September  30,  2006,  the  Company  has  various  stock-based employee
compensation  plans.  These  plans  provide for the granting of nonqualified and
incentive  stock  options  as  well  as restricted stock awards to officers, key
employees  and  nonemployee  directors.  The  terms  and  vesting  schedules  of
stock-based  awards  vary  by type of grant and generally, the awards vest based
upon  time-based conditions. Prior to January 1, 2006, the Company accounted for
these  plans  under  the  recognition  and  measurement provisions of Accounting
Principles  Board  ("APB")  Opinion  No.  25,  Accounting  for  Stock  Issued to
Employees,  and  related Interpretations, as permitted by Statement of Financial
Accounting  Standards ("SFAS") No. 123, Accounting for Stock-Based Compensation.
Effective  January  1,  2006,  the  Company  began  recognizing  share-based
compensation,  under  Statement  of  Financial Accounting Standards ("SFAS") No.
123(R),  Share  Based  Payment,  for  all awards granted during 2006 and for the
unvested  portion of previous award grants based on each award's grant date fair
value.  The  Company  implemented  Statement  No.  123(R)  using  the  modified
prospective  transition  method.  Under  this  transition  method  the Company's
financial  statements  and  related information presented, pertaining to periods
prior  to  our  adoption  of SFAS No. 123 (R), have not been adjusted to reflect
fair  value  of  share-based  compensation  expense.

(continued)

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)

     As  a  result of adopting SFAS No. 123(R) on January 1, 2006, the Company's
income before taxes and net income for the nine and three months ended September
30, 2006 are lower by approximately $26,000 and $8,000, respectively, than if it
had  continued  to  account  for  share-based compensation under APB Opinion 25.
Basic  and  diluted  earnings  per share for the nine months ended September 30,
2006 would have been $.01 higher if the Company had not adopted SFAS No. 123(R).
Basic  and  diluted  earnings per share for the three months ended September 30,
2006  would  have remained unchanged if the Company had not adopted SFAS 123(R).
Share-based compensation expense included in selling, general and administrative
expenses  for  the  nine  and  three  months  ended  September  30,  2006  was
approximately  $158,000  and  $52,000, respectively. No tax benefit was recorded
relating  to this expense due to the Company's net operating loss carryforwards.

     The  following  table  illustrates  the effect on operating results and per
share  information  had  the  Company  accounted for stock-based compensation in
accordance  with  SFAS  No. 123(R) for the nine and three months ended September
30,  2005:

                                       Nine Months Ended      Three Months Ended
                                          September 30,          September 30,
                                               2005                  2005
                                               ----                  ----

Net Income - as reported                   $ 2,225,000           $  772,000

Add: Stock-based employee compensation
 expense, included in reported net income,
 net of related tax effect                     132,000               44,000

Deduct: Total stock-based employee
 compensation expense determined
 under fair value based method for all
 awards, net of related tax effect          (  194,000)             (52,000)
                                            -----------             --------

Net Income - pro forma                     $ 2,163,000             $764,000
                                           ===========             ========

Basic income per share - as reported          $ 0.56                $ 0.18
                                              ======                ======

Basic income per share - pro forma            $ 0.55                $ 0.18
                                              ======                ======

Diluted income per share - as reported        $ 0.51                $ 0.17
                                              ======                ======

Diluted income per share - pro forma          $ 0.49                $ 0.17
                                              ======                ======

     The Company estimated the fair value of its stock option awards on the date
of  grant  using  the  Black-Scholes  valuation  model  for  2006 grants and the
Binomial  calculation  model  for  2005  grants.  The assumptions used for stock
grants  issued  during  the  following  periods  were  as  follows:

                                            Nine Months Ended
                                              September 30,
                                        2006                 2005
                                        ----                 ----

Dividend Yield                           -                     -
Expected Volatility                53.86% to 55.52%          55.00%
Risk-free interest rate             4.87% to  5.21%           3.92%
Expected life of options (in years)      5.50                 9.01

(continued)

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)

     Expected  volatility  assumptions  utilized for 2006 and 2005 were based on
the  volatility  of  the  Company's  stock  price  for three years and one year,
respectively,  prior  to  grant  date. The risk-free rate is derived from the 10
year U.S. treasury yield on grant date. Expected life for 2006 was derived using
the  "simplified"  method  as allowed under the provisions of the Securities and
Exchange  Commission's  Staff Bulletin No. 107 and represents the period of time
that options are expected to be outstanding. Expected life for 2005 was based on
prior  history  of  option activity. Dividend yield is based on prior history of
cash  dividends  declared.

     The  Company's  stock-based  employee  compensation  plans  allow  for  the
issuance  of  restricted  stock  awards  that  may  not  be  sold  or  otherwise
transferred  until  certain  restrictions  have lapsed. The unearned stock-based
compensation  related  to  restricted  stock  granted  is  being  amortized  to
compensation  expense  over  the  period the restrictions lapse. The share based
expense  for  these  awards  was  determined  based  on  the market price of the
Company'  stock  at the date of grant applied to the total number of shares that
were  anticipated  to  vest  and  then  amortized over the vesting period. As of
September  30,  2006,  the  Company  has  unearned  compensation  of  $1,208,000
associated  with  these  awards.  Also,  in accordance with SFAS No. 123(R), the
account  "unearned compensation" recorded pursuant to APB 25 was reversed and is
now  a  component  of  "additional  paid-in  capital".

     Prior  to  the  adoption  of SFAS No. 123(R), the Company presented all tax
benefits resulting from the exercise of stock options as operating cash flows in
the  Statement  of  Cash Flows. Statement No. 123(R) requires the benefit of tax
deductions in excess of the compensation cost recognized for those options to be
classified  as  financing  cash  flows  in  the  Statement  of  Cash  Flows.

     Stock  option  activity  during  the  nine months ended September 30, 2006,
under  all  our  stock  option  plans  is  as  follows:

                                                       Average
                                         Weighted      Remaining
                                         Average       Contractual
                            Number  of   Exercise      Term
                            Shares       Price        (in  years)
                            ------        -----        -----------

Options  outstanding,
 January  1,  2006          615,000        $2.96             6

Granted                       7,000         7.85            10

Forfeited                    (2,000)        6.66             -

Exercised                    (8,000)        1.84             -
                             -------        ----          ----

Options  outstanding,
 September  30,  2006
(Vested  and  expected
  to  vest)                 612,000        $3.02             5
                            =======        =====             =

Outstanding  exercisable
 at  September  30,  2006   605,000        $2.96             5
                            =======        =====             =

(continued)

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)

     At  September 30, 2006 the aggregate intrinsic value of options outstanding
was  $2,450,000  and  the  aggregate  intrinsic value of options exercisable was
$2,456,000.  The  intrinsic  value  of  options exercised during the nine months
ended  September  30,  2006  was  approximately  $95,000.

     The  following  table  summarizes  the  Company's  nonvested  stock  option
activity  for  the  nine  months  ended  September  30,  2006:

                              Number  of     Weighted-Average
                              Shares     Grant-Date  Fair  Value
                              ------     -----------------------

Nonvested  stock  options
 at  January  1,  2006         5,000            $5.79

Granted                        7,000             4.31

Vested                        (4,000)            5.79

Forfeited                     (1,000)            5.79
                              -------            ----

Nonvested  stock  options
 at  September  30,  2006      7,000            $4.31
                               =====            =====

     At  September  30,  2006,  there  was  approximately  $21,000  of  unearned
compensation  cost  related  to  the above non-vested stock options. The cost is
expected  to  be  recognized  over  the  next  nine  months.

(Note2) - Acquisition
-------   -----------

     On  April  4,  2005, the Company acquired all of the issued and outstanding
capital  stock  of  Tulip  Development  Laboratory,  Inc.  and its manufacturing
affiliate,  TDL  Manufacturing,  Inc. (collectively "Tulip"). The primary reason
for the acquisition was the expansion of both our customer and product bases and
the  possibility  of  accretion to earnings. The total purchase price was $9.032
million  consisting  of $5.0 million in cash, which was funded by a term loan, a
$2.0  million  promissory  note  to the sellers, approximately 206,000 shares of
Orbit stock valued at $1.5 million and direct acquisition costs of approximately
$532,000.

     The Tulip acquisition was accounted for as a purchase, and accordingly, the
assets  purchased  and  liabilities  assumed  are  included  in the consolidated
balance sheets as of September 30, 2006 and 2005. The operating results of Tulip
are  included  in  the  consolidated  financial  statements  since  the  date of
acquisition.

     In  accordance with SFAS No. 141, Business Combinations, the purchase price
was  allocated  to  the  tangible and intangible assets acquired and liabilities
assumed  based  on  their  estimated fair values. The excess purchase price over
those  fair values is recorded as goodwill. The fair values assigned to tangible
and  intangible  assets  acquired and liabilities assumed are based on estimates
and  assumptions  made  by  management and their consultants. In accordance with
SFAS  No.  142,  Goodwill and Other Intangible Assets, goodwill is not amortized
but  will  be  reviewed  at  least annually for impairment. Purchased intangible
assets  with  finite lives will be amortized on a straight-line basis over their
respective  estimated  useful lives. The total purchase price has been allocated
as  follows:

(continued)

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)

Tangible assets and liabilities:
      Cash                                              $  693,000
      Accounts receivable                                1,169,000
      Inventory                                            840,000
      Other current assets                                  12,000
      Property and equipment                               206,000
      Accounts payable                                    (254,000)
      Accrued expenses                                    (200,000)
      Due to stockholders                                 (450,000)
      Customer advances                                   (216,000)
                                                        -----------
     Total net tangible assets and liabilities           1,800,000

     Amortizable intangible assets:
      Contract backlog                                   1,650,000
      Non-compete provision of employment contract         315,000
                                                        ----------
     Total amortizable intangible assets                 1,965,000

     Goodwill                                            5,267,000
                                                        ----------

     Total purchase price                               $9,032,000
                                                        ==========

The  following  summarized pro forma financial information presents the combined
results  of  the  Company and Tulip as if the acquisition had occurred as of the
beginning  of  2005.  Adjustments,  which  reflect  amortization  of  purchased
intangible assets, interest on debt to finance the acquisition and recalculation
of  bonuses  due  to  adjustments  to net income, have been made to the combined
results  of  operations  for  the  nine  months  ended  September  30, 2005. The
unaudited  summarized  pro  forma  financial  information  is  presented  for
informational  purposes only and may not be indicative of what actual results of
operations  would have been had the acquisition occurred at the beginning of the
dates  presented  nor does it purport to represent the results of operations for
future  periods.


                         Nine Months Ended
                            September 30,
                               2005
                           (Pro forma)
                           -----------

Net Sales                  $20,283,000

Net Income                   2,388,000

Basic earnings
 per share                      0.59

Diluted earnings
 per share                      0.54






                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)



(NOTE  3)  -  Financing  Arrangements:
 -------      -----------------------

     In  April  2005,  the Company entered into a five-year $5,000,000 Term Loan
Agreement  with  the  same  aforementioned  lender to finance the acquisition of
Tulip (Note 2).  In April 2006, the interest rate was reduced. The Term Loan has
fifty-nine  (59)  monthly  principal  payments  of  approximately  $60,000 and a
sixtieth  (60th)  payment  of  approximately $1,500,000. The loan bears interest
equal  to  the  sum  of  1.50%  plus  the  one-month  LIBOR.

In  April  2005, the Company entered into a five year $2,000,000 Promissory Note
with  the  selling  shareholders of Tulip at an interest rate of prime (8.25% at
September  30,  2006)  plus  2.00%. Principal payments of $100,000 are made on a
quarterly  basis  along  with  accrued  interest.

In  April  2005,  the Company entered into an amended $2,500,000 credit facility
with  a commercial lender secured by accounts receivable, inventory and property
and equipment.  In April 2006, the interest rate was reduced. The agreement will
continue  from  year to year thereafter unless sooner terminated for an event of
default  including  non-compliance  with  financial  covenants.  Loans under the
facility  bear  interest  equal  to  the  sum of 1.50% plus the one-month London
Inter-bank  offer  rate  (LIBOR)  (5.32% at September 30, 2006). No amounts have
been  borrowed  under  the  credit  facility.


(NOTE 4) - Income Per Share:
 ------    ----------------

     The  following table sets forth the computation of basic and diluted income
per  common  share:


                                      Nine Months Ended      Three Months Ended
                                        September 30,           September 30,
                                     2006         2005       2006           2005
                                     ----         ----       ----           ----
Denominator:
     Denominator  for  basic
     income  per  share  -
     weighted-average  common
     shares                         4,356,000   3,963,000  4,357,000   4,245,000
Effect  of  dilutive  securities:
     Employee  and  directors
     stock  options                   241,000     361,000    196,000     290,000
     Unearned  portion  of  restricted
     stock  awards                     52,000      58,000     22,000      72,000
                                       ------      ------     ------      ------
     Denominator  for  diluted
     income  per  share  -
     weighted-average  common
     shares  and  assumed
     conversion                     4,649,000   4,382,000   4,575,000  4,607,000
                                    =========   =========   =========  =========

(continued)

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)

     The numerator for basic and diluted income per share for the nine and three
month  periods  ended  September  30,  2006  and  2005  is  net  income.

     Options  to  purchase  14,000  and  6,000  shares  of  common  stock  were
outstanding  during  the  three  and  nine  months  ended September 30, 2006 and
options  to  purchase  5,000  shares  were outstanding for the nine months ended
September 30, 2005, but were not included in the computation of diluted earnings
per  share.  The inclusion of these options would have been anti-dilutive due to
the  options' exercise prices being greater than the average market price of the
Company's  common  shares  during  the  respective  periods.

     Approximately  226,000  and 227,000 shares of common stock were outstanding
during the three and nine months ended September 30, 2006, but were not included
in  the  computation  of  basic  earnings  per share. These shares were excluded
because  they  represent  the  unvested  portion  of  restricted  stock  awards.

(NOTE  5)  -  Cost  of  Sales:
 -------      ---------------

     For  interim periods, the Company estimates its inventory and related gross
profit.

(NOTE 6) - Inventories:
-------    -----------

     Inventories are comprised of the following:

                     September 30,     December 31,
                         2006              2005
                         ----              ----

Raw Materials       $ 4,655,000       $ 4,637,000
Work-in-process       3,833,000         3,813,000
Finished goods          639,000           605,000
                    -----------       -----------
     TOTAL          $ 9,127,000       $ 9,055,000
                    ===========       ===========

(NOTE 7) - Comprehensive Income:
-------    --------------------

     For the nine and three months ended September 30, 2006, total comprehensive
income  was  $1,863,000  and  $615,000, respectively. For the comparable periods
during  2005,  total  comprehensive  income  was  $2,223,000  and  $777,000,
respectively.  Comprehensive  income consists of net income and unrealized gains
and  losses  on  marketable  securities.

(NOTE 8)  -  Business Segments:
--------     -----------------

     The  Company  operates  through  two  business  segments.  The  Electronics
Segment  (or  "Electronics Group") is comprised of the Orbit Instrument Division
and  the  Company's  Tulip subsidiary. The Electronics Segment is engaged in the
design, manufacture and sale of customized electronic components and subsystems.
The  Company's  Power  Units  Segment  (or  "Power  Group"), through the Behlman
Electronics,  Inc. subsidiary, is engaged in the design, manufacture and sale of
distortion  free commercial power units, power conversion devices and electronic
devices  for  measurement  and  display.

     The  Company's  reportable segments are business units that offer different
products.  The  reportable  segments  are  each  managed  separately  as  they
manufacture  and  distribute  distinct  products  with  different  production
processes.

(continued)

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)

     The following is the Company's business segment information for the six and
three  month  periods  ended  September  30,  2006  and  2005.


                             Nine Months Ended            Three Months Ended
                               September 30,                 September 30,
                           2006            2005         2006               2005
                           ----            ----         ----               ----
Net sales:
     Electronics
     Domestic         $11,230,000     $10,558,000    $ 3,548,000    $ 4,325,000
     Foreign              886,000         368,000        229,000        239,000
                       ---------       ---------     ----------     ----------
     Total Electronics 12,116,000      10,926,000      3,777,000      4,564,000

     Power Units
          Domestic      6,388,000       7,262,000      2,270,000      1,824,000
          Foreign         406,000         441,000        124,000        113,000
                        ---------       ---------      ---------     ----------
     Total Power Units  6,794,000       7,703,000      2,394,000      1,937,000
                        ---------       ---------      ---------     ----------

          Total       $18,910,000     $18,629,000    $ 6,171,000    $ 6,501,000
                      ===========     ===========    ===========    ===========

Income from operations:
     Electronics      $ 2,132,000     $ 2,026,000    $   500,000    $   999,000
     Power Units          837,000       1,459,000        414,000        194,000
General corporate
     expenses not
     allocated           (976,000)     (1,177,000)      (304,000)      (364,000)
Interest expense         (339,000)       (215,000)      (111,000)      (112,000)
Investment and other
     income               250,000         132,000          99,000        55,000
                      -----------     -----------     -----------     ----------
Income before
     income taxes     $ 1,904,000     $ 2,225,000     $   598,000     $ 772,000
                      ===========     ===========     ============    =========


(NOTE 9)  -  Goodwill and Other Intangible Assets:
--------     -------------------------------------

     Effective  January  1,  2002,  the  Company  adopted Statement of Financial
Accounting  Standards  ("SFAS")  No.  142, Goodwill and Other Intangible Assets.
SFAS  142 requires that an intangible asset with a finite life be amortized over
its  useful  life  and that goodwill and other intangible assets with indefinite
lives  not be amortized but evaluated for impairment.  The Company concluded, as
of  March  31,  2006,  that there was no impairment to goodwill and, pursuant to
SFAS  142,  goodwill  is  no  longer  being  amortized.

Intangible  assets  with  finite  lives  are being amortized over three and five
years.  Amortization  expense  for  the  remainder of 2006 and for the next four
years  are  as  follows:

               2006          $108,000
               2007           435,000
               2008           356,000
               2009           330,000
               2010            83,000
                             --------

               Total       $1,312,000

                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)
                                   (continued)



(NOTE  10)  -  Income  Taxes
----------     -------------

     For  the  nine  and  three  months  ended  September  30, 2006, the Company
utilized  net  operating  loss carryforwards to offset income taxes except for a
provision  for  state  income  tax  expense  in  Pennsylvania. The amount of the
provision  was  $30,000  and $5,000, respectively, for the nine and three months
ended  September  30,  2006.  For  the nine and three months ended September 30,
2005,  the  Company  utilized  net  operating  loss  carryforwards to offset all
income,  and  accordingly,  recorded  no  provision  for  income  taxes.


<PAGE>


Item 2.
                   ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Executive Overview
------------------

     The Company recorded a decrease in operating results for the three and nine
month  periods  ended  September  30,  2006.   The results of operations for the
prior nine month period ended September 30, 2005 include the operations of Tulip
as of April 4, 2005, the date the transaction was completed.  Revenues decreased
by  5.1%  and  the  Company's  gross  profit  margins  also  decreased  for  the
three-month  period  ended  September  30,  2006  compared  to the prior period.
Revenues  slightly  increased  by  1.5% and gross margins decreased for the nine
month  period  ended  September  30, 2006 compared to the prior period. Revenues
increased  for  the  nine  month  period principally due to the inclusion of the
operations  of  Tulip  in  the current period. Net income for both the three and
nine  month  periods  ended  September  30, 2006 decreased compared to the prior
periods.  The  decline in profitability during the three month period was due to
lower  bookings  and  revenues  recorded by our Electronics Group due to program
delays.  The  decline  in  profitability during the nine month period was due to
unusually  strong  revenues and profitability recorded by our Power Group in the
prior  period  as  a  result  of large deliveries under the FLIR contract, which
completed shipments in the second quarter of 2005.  Our backlog at September 30,
2006 was approximately $12,100,000 compared to $13,100,000 at September 30, 2005
primarily  due  to  a  lower backlog from both the Electronics and Power Groups.
There  is  no seasonality to the Company's business.  Our shipping schedules are
generally  determined  by the shipping schedules outlined in the purchase orders
received  from  our  customers.  Both  of  our operating segments are pursuing a
significant  amount  of  business opportunities and our confidence level remains
very  high  with  respect to receiving a significant number of the orders we are
pursuing  although  timing  is  always an uncertainty.  The Company continues to
experience  program  funding  delays  although  some of the expected awards were
received  at  the  end  of  the  third  quarter  and the beginning of the fourth
quarter.  We  remain  confident  that  a  significant  number  of these expected
follow-on  orders  will  continue  to be received.   Our success of the past few
years has significantly strengthened our balance sheet evidenced by our 5.6 to 1
current  ratio  at  September  30,  2006.  We currently have a $2,500,000 credit
facility  in  place  that  we have not used to date and the Company is currently
exploring  acquisition  opportunities  that  are  compatible  with  our existing
operations.  We  also  have  several  financing alternatives available to us, if
needed,  in  order  to  fund  any  potential  acquisitions.

Critical Accounting Policies
----------------------------

     The  discussion  and  analysis of the Company's financial condition and the
results  of  its  operations are based on the Company's financial statements and
the  data  used  to  prepare them.  The Company's financial statements have been
prepared  based on accounting principles generally accepted in the United States
of  America.  On  an  on-going basis, we re-evaluate our judgments and estimates
including  those  related to inventory valuation, the valuation allowance on the
Company's  deferred  tax  asset,  goodwill  impairment  and  the  valuation  of
share-based compensation.  These estimates and judgments are based on historical
experience  and  various  other  assumptions  that are believed to be reasonable
under  current business conditions and circumstances.  Actual results may differ
from  these  estimates  under  different assumptions or conditions.  The Company
believes  the  following  critical  accounting  policies affect more significant
judgments  and  estimates  in  the  preparation  of  the  consolidated financial
statements.


Inventories
-----------

     Inventory  is valued at the lower of cost (specific and average) or market.
Inventory  items  are reviewed regularly for excess and obsolete inventory based
on  an  estimated forecast of product demand.  Demand for the Company's products
can  be  forecasted  based on current backlog, customer options to reorder under
existing  contracts,  the  need  to  retrofit  older  units and parts needed for
general repairs.  Although the Company makes every effort to insure the accuracy
of its forecasts of future product demand, any significant unanticipated changes
in  demand  or  technological  developments could have an impact on the level of
obsolete  material  in  its  inventory  and operating results could be affected,
accordingly.

Deferred tax asset
------------------

     At  December 31, 2005, the Company had an alternative minimum tax credit of
approximately  $573,000  with  no limitation on the carry-forward period and net
operating  loss  carry-forwards of approximately $23,500,000 that expire through
2023.  In  addition,  the  Company receives a tax deduction when their employees
exercise  their  non-qualified  stock  options  thereby increasing the Company's
deferred  tax  asset.  The  Company  places  a valuation allowance to reduce its
deferred  tax asset when it is more likely than not that a portion of the amount
may  not be realized.  The Company estimates its valuation allowance based on an
estimated  forecast  of  its  future  profitability.  Any significant changes in
future  profitability  resulting  from variations in future revenues or expenses
could  affect  the  valuation  allowance on its deferred tax asset and operating
results  could  be  affected,  accordingly.

Impairment of Goodwill
----------------------

     The Company has significant intangible assets related to goodwill and other
acquired  intangibles.  In  determining the recoverability of goodwill and other
intangibles,  assumptions must be made regarding estimated future cash flows and
other  factors to determine the fair value of the assets.  If these estimates or
their  related  assumptions change in the future, the Company may be required to
record  impairment  charges for those assets not previously recorded.  Effective
January 1, 2001, the Company adopted Statement of Financial Accounting Standards
No.  142,  "Goodwill and Other Intangible assets".  Under the provisions of SFAS
142,  the cost of certain intangibles will no longer be subject to amortization.
These costs were reviewed for potential impairment in 2004 and 2005.  During the
first quarter of 2006, the Company again determined that there was no impairment
to  its  goodwill  and  other  intangible  assets.


Share-Based  Compensation
-------------------------

     Effective  January  1,  2006,  the  Company  began  recognizing share-based
compensation under SFAS No. 123(R), which requires the measurement at fair value
and  recognition  of  compensation  expense  for  all  share-based awards. Total
share-based compensation expense was $158,000 and $52,000, respectively, for the
nine  and  three  months  ended  September 30, 2006. The estimated fair value of
stock  options  granted  in  2006 were calculated using the Black-Scholes model.
This  model  requires  the  use  of input assumptions. These assumptions include
expected  volatility,  expected  life,  expected  dividend  rate,  and  expected
risk-free  rate  of  return.

Material Changes in Results of Operations
-----------------------------------------


Three-month period ended September 30, 2006 v. September 30, 2005
-----------------------------------------------------------------

     The  Company  currently  operates  in  two  industry  segments.  Its  Orbit
Instrument  Division  and  its  Tulip  subsidiary  are  engaged  in  the design,
manufacture  and  sale of electronic components and subsystems (the "Electronics
Group").  Its  Behlman subsidiary is engaged in the design, manufacture and sale
of  commercial  power  units (the "Power Group").  The results of operations for
the  prior  nine month period ended September 30, 2005 include the operations of
Tulip  since  April  4,  2005,  the  date  the  transaction  was  completed.

     Consolidated  net sales for the three-month period ended September 30, 2006
decreased by 5.1% to $6,171,000 from $6,501,000 for the three month period ended
September  30,  2005  principally  due  to  a  17.2%  decrease in sales from its
Electronics  Group  that  was partially offset by a 23.6% increase in sales from
the  Power Group.  The decrease in sales from the Electronics Group was due to a
reduction  in  bookings during the first half of the year due to program funding
delays.

     Gross  profit,  as  a  percentage  of  sales,  for  the  three months ended
September  30,  2006  decreased  to  42.6% from 44.5% for the three-month period
ended September 30, 2005.  This decrease resulted from a lower gross profit from
the  Company's  Electronics  Group  due  principally to a reduction in sales and
product  mix.  The  decrease  was  partially  offset  by  a  higher gross profit
recorded  by  the Company's Power Group due principally to an increase in sales.

     Selling,  general  and  administrative  expenses  decreased  by  2.1%  to
$2,017,000  for  the three month period ended September 30, 2006 from $2,061,000
for  the  three  month  period ended September 30, 2005 principally due to lower
corporate  administrative  costs and despite higher selling costs from the Power
Group  due  principally  to  the  increase  in  sales.  Despite  the decrease in
expenses,  selling,  general  and  administrative  expenses,  as a percentage of
sales,  for  the  three month period ended September 30, 2006 increased to 32.7%
from  31.7%  for the three month period ended September 30, 2005 principally due
to  the  decrease  in  sales.

     Interest  expense,  for  the  three  month  period ended September 30, 2006
slightly  decreased  to $111,000 compared to $112,000 for the three month period
ended  September  30,  2005, due to a decrease in debt levels that was partially
offset  by  an  increase  in  interest  rates.

     Investment  and other income for the three-month period ended September 30,
2006  increased  to  $99,000  from  $55,000  for  the  three-month  period ended
September 30, 2005 principally due to an increase in amounts invested during the
current  period  and  to  the  increase  in  interest  rates.

     Net  income  before  income  tax provision for the three month period ended
September  30,  2006  decreased  to  $598,000  from $772,000 for the three month
period  ended  September  30,  2005 principally due to the decrease in sales and
gross margins, the increase in selling, general and administrative expenses as a
percentage  of  sales  and  despite the increase in investment and other income.

     Income  taxes  for  the  three  months  ended September 30, 2006 consist of
$5,000  in  state  income taxes that cannot be offset by any state net operating
loss  carry-forwards.

     As  a  result  of  the  foregoing,  net  income  for the three months ended
September  30, 2006 was $593,000 compared to $772,000 for the three months ended
September  30,  2005,  a  decrease  of  23.2%.

     Earnings  before  interest, taxes, depreciation and amortization, and stock
based  compensation (EBITDA) for the three month period ended September 30, 2006
decreased to $898,000 from $1,117,000 for the three month period ended September
30,  2005.  Listed  below  is  the  EBITDA  reconciliation  to  net  income:

                                     Three months ended
                                        September 30,
                                  2006                    2005
                                  ----                    ----

Net income                      $593,000                 $772,000
Interest expense                 111,000                  112,000
Tax expense                        5,000                     -
Depreciation and amortization    137,000                  189,000
Stock based compensation          52,000                   44,000
                                --------                ---------
EBITDA                          $898,000               $1,117,000


Nine-month period ended September 30, 2006 v. September 30, 2005
----------------------------------------------------------------

     Consolidated  net  sales for the nine-month period ended September 30, 2006
increased  by  1.5%  to  $18,910,000  from $18,629,000 for the nine-month period
ended  September  30, 2005 principally due to a 10.9% increase in sales from its
Electronics  Group  that was partially offset by an 11.8% decrease in sales from
its  Power Group.  The increase in sales from the Electronics Segment was due to
the  inclusion  of the operations of Tulip since April 4, 2005.  The decrease in
sales from the Power Group was due to unusually strong sales in the prior period
as  a  result  of  large  deliveries  under  the  FLIR contract, which completed
shipping  in  the  second  quarter  of  2005.

     Gross profit, as a percentage of sales, for the nine months ended September
30, 2006 decreased to 43.4% from 44.6% for the nine-month period ended September
30,  2005.  This  decrease  resulted  from  a lower gross profit realized by the
Power  Group due principally to a decrease in the segment's sales and to product
mix  that  was  partially  offset  by  a  slightly  higher gross profit from the
Company's Electronics Group due principally to a higher gross profit realized by
Tulip.

     Selling,  general  and  administrative  expenses  increased  by  3.7%  to
$6,218,000  for  the  nine-month period ended September 30, 2006 from $5,996,000
for  the  nine-month  period  ended  September  30,  2005 principally due to the
inclusion  of  the  operations  of Tulip for the full current period and despite
lower  corporate  administrative  costs.  Selling,  general  and  administrative
expenses,  as  a  percentage of sales, for the nine-month period ended September
30, 2006 increased to 32.9% from 32.2% for the nine-month period ended September
30,  2005,  principally  due to the increase in expenses due to the inclusion of
Tulip  in  the  full  current period, without a corresponding increase in sales,
despite  the  inclusion  of  Tulip.

     Interest  expense,  for  the  nine-month  period  ended  September 30, 2006
increased  to  $339,000  compared  to  $215,000  for the nine-month period ended
September  30,  2005,  due  to  interest  paid  in  connection  with  the  Tulip
acquisition  that closed on April 4, 2005 and to the increase in interest rates.

     Investment  and  other income for the nine-month period ended September 30,
2006  increased  to  $250,000  from  $132,000  for  the  nine-month period ended
September 30, 2005 principally due to an increase in amounts invested during the
current  period  and  to  the  increase  in  interest  rates.

     Net  income  before  income  tax  provision for the nine-month period ended
September  30,  2006  decreased to $1,904,000 from $2,225,000 for the nine-month
period  ended  September  30,  2005  principally  due  to  the decrease in gross
margins,  the  increase  in  selling,  general  and  administrative expenses and
interest  expense  and  despite the slight increase in sales and the increase in
investment  and  other  income.

     Income  taxes  for  the  nine  months  ended  September 30, 2006 consist of
$30,000  in  state income taxes that cannot be offset by any state net operating
loss  carry-forwards.

     As  a  result  of  the  foregoing,  net  income  for  the nine months ended
September  30,  2006  was  $1,874,000 compared to $2,225,000 for the nine months
ended  September  30,  2005,  a  decrease  of  15.8%.

     Earnings  before  interest, taxes, depreciation and amortization, and stock
based  compensation  (EBITDA) for the nine-month period ended September 30, 2006
slightly decreased to $2,825,000 from $2,916,000 for the nine-month period ended
September  30,  2005.  Listed  below is the EBITDA reconciliation to net income:


                                      Nine months ended
                                        September 30,
                                 2006                  2005
                                 ----                  ----

Net income                    $1,874,000           $2,225,000
Interest expense                 339,000              215,000
Tax expense                       30,000               -
Depreciation and amortization    424,000              344,000
Stock based compensation         158,000              132,000
                              ----------            ---------
EBITDA                        $2,825,000           $2,916,000


Material Change in Financial Condition
--------------------------------------

     Working  capital increased to $16,777,000 at September 30, 2006 compared to
$14,839,000  at  December  31,  2005.  The  ratio  of  current assets to current
liabilities  increased  to  5.6  to  1  at  September  30, 2006 from 4.9 to 1 at
December  31,  2005.

     Net  cash  provided by operations for the nine-month period ended September
30,  2006  was  $2,431,000,  primarily  attributable  to  the net income for the
period,  the  non-cash  amortization  of  intangible  assets  and  stock  based
compensation,  an increase in accounts payable and a decrease in other long term
assets  that  was  partially  offset by an increase in accounts receivable and a
decrease  in  accrued  expenses  and  customer  advances.  Net  cash provided by
operations  for  the  nine month period ended September 30, 2005 was $2,263,000,
primarily  attributable  to  the  net  income  for  the  period,  the  non-cash
amortization of intangible assets and stock based compensation, depreciation, an
increase  in  accounts  payable, accrued expenses and customer advances that was
partially  offset  by  an  increase  in  accounts receivable and other long term
assets  and  a  decrease  in the amount due to the former shareholders of Tulip.

     Cash  flows  used  in  investing activities for the nine-month period ended
September  30,  2006  was  $2,709,000, primarily attributable to the purchase of
marketable  securities  and  property and equipment that was partially offset by
the  sale of marketable securities.  Cash flows used in investing activities for
the  nine  month period ended September 30, 2005 was $5,504,000, attributable to
the  purchase  of  Tulip,  purchases  of  marketable securities and property and
equipment.

     Cash  flows  used  in  financing activities for the nine-month period ended
September  30,  2006  was  $829,000, attributable to the repayments of long term
debt  that  was partially offset by stock option exercises.  Cash flows provided
by  financing  activities for the nine month period ended September 30, 2005 was
$5,875,000,  primarily  attributable  to  the proceeds from the issuance of long
term debt and the proceeds from stock option exercises that was partially offset
by  the  repayments  of  long  term  debt.

     In  February  2003,  the  Company entered into a $2,000,000 credit facility
with  a commercial lender secured by accounts receivable, inventory and property
and  equipment.  In April 2005, the Company entered into a new $2,500,000 credit
facility  with  the  same lender along with a new five-year $5,000,000 Term Loan
Agreement  to  finance the acquisition of Tulip and its manufacturing affiliate.
In April 2006, the interest rates on both the Term Loan Agreement and the credit
facility  were  reduced.  The  credit  facility  will continue from year to year
unless  sooner  terminated for an event of default including non-compliance with
certain financial covenants. Loans prior to the renewal, under the facility, did
bear  interest  equal  to  the  sum  of 2.00% plus the one-month LIBOR (5.32% at
September  30,  2006.)  and  the Term Loan did bear interest equal to the sum of
2.25%  plus  the  one-month  LIBOR.  Pursuant  to  the  renewal, both the credit
facility and the Term Loan will bear interest equal to the sum of 1.50% plus the
one-month  LIBOR.  Monthly  principal  payments  under  the  Term  Loan,  of
approximately  $60,000  per  month,  commenced  in  June  2005.

     In  April  2005, the Company entered into a five year $2,000,000 Promissory
Note  with  the  selling shareholders of Tulip at an interest rate of prime plus
2.00% (8.25% at September 30, 2006).  Principal payments of $100,000 are made on
a  quarterly  basis  along  with accrued interest.  In October 2006, pursuant to
permission  from  its  primary  lender,  the  Company  increased  its  quarterly
principal  payment  to  $150,000  along  with  accrued  interest.

     The  Company's  contractual  obligations  and commitments are summarized as
follows:

                              Less  than      1-3        4-5        After  5
Obligation          Total       1  Year      Years      Years         Years
----------          -----      -------       -----      -----       --------

Long-term  debt   $5,548,000  $1,114,000  $3,243,000   $1,191,000       -

Capital  lease
   Obligations        12,000      10,000       2,000       -            -

Operating  leases  3,391,000     585,000   1,648,000      958,000    $200,000
                  ----------   ---------  ----------    ---------    --------

Total  contractual
    Obligations   $8,951,000  $1,709,000  $4,893,000   $2,149,000   $ 200,000

     The  Company's  existing  capital  resources,  including  its  bank  credit
facilities,  and  its  cash  flow from operations are expected to be adequate to
cover  the  Company's  cash  requirements  for  the  foreseeable  future.

     Inflation  has  not  materially  impacted  the  operations  of the Company.

Certain Material Trends
-----------------------

     In  April  2005,  the  Company  completed  the acquisition of Tulip and its
operations  became  part  of  the  Company's  Electronics  Group.  The Company's
Electronics  Group  and  the  Custom  Division  of  its  Power Group are heavily
dependent  on  military  spending.  The  events of September 11, 2001 have put a
tremendous  emphasis  on  defense and homeland security spending and the Company
has  seen  improvement  in  bookings and revenue levels since 2001.  The Company
realized  a  significant  increase to the backlog of its Power Group during 2004
and shipments from this segment contributed to very strong operating results for
the  first  and  second  quarters  of  2005.   In  particular,  during 2005, its
commercial  division  has  realized  an  increase  in bookings, particularly for
military  requirements  for  its  standard  commercial  products.  Both  of  the
Company's  business segments had strong bookings in 2004 and 2005 that continued
into  the first quarter of 2006.  During the second quarter of 2006, the Company
began  to  experience  a slowdown in its bookings due to program funding delays.
However,  the  Company  began  to  receive some of the expected follow-on awards
during the end of the third quarter and beginning of the fourth quarter of 2006.
Furthermore,  the  Company  remains confident that it will receive most of these
follow-on  orders and option quantities that have been affected by these program
funding  delays,  although  the  timing  of  their  release  remains  uncertain.
Although  the  Electronics  Group and the Custom Division of the Power Group are
pursuing several opportunities for reorders, as well as new contract awards, the
Company  has  normally  found it difficult to predict the timing of such awards.

     There  is no seasonality to the Company's business.  The Company's revenues
are  generally  determined  by  the  shipping schedules outlined in the purchase
orders  received  from  its  customers.  The  Company  stratifies  all  the
opportunities  it  is  pursuing  by  various  confidence  levels.  The  Company
generally realizes a very high success rate with those opportunities to which it
applies a high confidence level.  The Company currently has a significant amount
of  potential  contract  awards to which it has applied a high confidence level.
However, because it is difficult to predict the timing of awards for most of the
opportunities  the Company is pursuing, it is also difficult to predict when the
Company will commence shipping under these contracts.  A delay in the receipt of
any  contract  from  its  customer  ultimately  causes  a corresponding delay in
shipments  under  that  contract.

     Despite  the  increase  in  military  spending,  the  Company still faces a
challenging  environment.  The  government is emphasizing the engineering of new
and  improved weaponry and it continues to be our challenge to work with each of
our  prime  contractors  so  that  we can participate on these new programs.  In
addition,  these  new  contracts require incurring up-front design, engineering,
prototype  and  pre-production  costs.  While  the Company attempts to negotiate
contract  awards for reimbursement of product development, there is no assurance
that  sufficient monies will be set aside by its customers, including the United
States  Government,  for  such  effort.  In  addition, even if the United States
Government  agrees  to reimburse development costs, there is still a significant
risk  of  cost  overrun  that  may  not  be reimbursable.  Furthermore, once the
Company has completed the design and pre-production stage, there is no assurance
that funding will be provided for future production.  In such event, even if the
Company is reimbursed its development costs it will not generate any significant
profits.

     The  Company  is  heavily  dependent  upon military spending as a source of
revenues  and  income.  However,  even  increased  military  spending  does  not
necessarily  guarantee the Company of increased revenues, particularly, when the
allocation  of  budget  dollars  may  vary  depending  on what may be needed for
specific  military  conflicts   Any  future  reductions in the level of military
spending  by  the  United States Government due to budget constraints or for any
other  reason, could have a negative impact on the Company's future revenues and
earnings.  In  addition, due to major consolidations in the defense industry, it
has  become  more difficult to avoid dependence on certain customers for revenue
and  income.  Behlman's  line  of  commercial  products  gives  the Company some
diversity  and  the  addition  of  Tulip  gives  the  Electronics Segment a more
diversified  customer  base.

     The  Company's  business  strategy  is  to  expand  its  operations through
strategic,  accretive acquisitions.  Through the past several years, the Company
reviewed  various  potential  acquisitions  and  believes  there are a number of
opportunities,  although  there  is  no  assurance  the  Company will be able to
complete any transaction.  In April 2005, it completed the acquisition of Tulip.
The  Company  has  received offers from several financial institutions that have
expressed  an  interest  in  helping  the  Company  with  acquisition financing.
However,  there  can  be  no assurance it will obtain the necessary financing to
complete  additional acquisitions and even if it does, there can be no assurance
that  we  will have sufficient income from operations of such acquired companies
to satisfy the interest payments, in which case, we will be required to pay them
out  of  Orbit's  operations  which  may  be  adversely  affected.  The  Company
continues  to  review  acquisition  candidates but none have progressed beyond a
preliminary  due  diligence  stage.

Forward  Looking  Statements
----------------------------

     Statements  in  this  Item  2  "Management's  Discussion  and  Analysis  of
Financial  Condition  and  Results of Operations" and elsewhere in this document
are  certain  statements which are not historical or current fact and constitute
"forward-looking  statements"  within the meaning of such term in Section 27A of
the  Securities  Act  of  1933 and Section 21E of the Securities Exchange Act of
1934.  Such  forward-looking  statements  involve  known  and  unknown  risks,
uncertainties  and  other  factors  that  could  cause  the  actual financial or
operating  results of the Company to be materially different from the historical
results  or from any future results expressed or implied by such forward-looking
statements.  Such  forward looking statements are based on our best estimates of
future results, performance or achievements, based on current conditions and the
most  recent results of the Company.  In addition to statements which explicitly
describe  such risks and uncertainties, readers are urged to consider statements
labeled  with  the  terms "may", "will", "potential", "opportunity", "believes",
"belief",  "expects",  "intends",  "estimates",  "anticipates"  or "plans" to be
uncertain  and  forward-looking. The forward-looking statements contained herein
are  also  subject generally to other risks and uncertainties that are described
from  time  to  time  in the Company's reports and registration statements filed
with  the  Securities  and  Exchange  Commission.



<PAGE>

Item  3.     CONTROLS  AND  PROCEDURES

     The  Company's  management, including the Company's Chief Executive Officer
and  Chief  Financial  Officer, evaluated the effectiveness of the design of the
Company's  disclosure  controls and procedures, as defined in Rules 13a-15(e) or
15d-15(e)  under the Securities Exchange Act of 1934 as of the end of the period
covered  by  this report.  Based on that evaluation, the Chief Executive Officer
and the Chief Financial Officer concluded that the Company's disclosure controls
and  procedures  are  effective.

     There  has been no changes to our internal control over financial reporting
during  the  three months ended September 30, 2006 that has materially affected,
or  is  reasonably  likely  to  materially  affect,  our  internal  control over
financial  reporting.

<PAGE>
PART II- OTHER INFORMATION

Item 1. Legal Proceedings
          None

Item 2. Changes in Securities and Use of Proceeds
          None

Item 3. Defaults Upon Senior Securities
          None

Item 4. Submissions of Matters to Vote of Security Holders
          None

Item  5.  Other  Information
          None

Item 6. Exhibits and Reports on form 8-K

     (a) Exhibits

          Exhibit Number     Description
               31.1*          Certification of the Chief Executive
                              Officer Required by Rule 13a-14 (a) or Rule
                              15d-14(a).
               31.2*          Certification of the Chief Financial
                              Officer Required by Rule 13a-14 (a) or Rule
                              15d-14(a).
               32.1*          Certification of the Chief Executive
                              Officer Required by Rule 13a-14(b) or Rule
                              15d-14(b) and 18 U.S.C. 1350.
               32.2*          Certification of the Chief Financial
                              Officer Required by Rule 13a-14(b) or Rule
                              15d-14(b) and 18 U.S.C. 1350.
_________________
*Filed with this report.

     (b)  Reports  on  8-K

          On  August  8,  2006,  the  Company filed a current report on Form 8-K
under  Item  2.02  Results of Operations and Financial Condition relating to its
press  release  issued  on  August  8,  2006, announcing the Company's operating
results  for  the  second  quarter  and  six  months  ended  June  30,  2006.




<PAGE>
                                   SIGNATURES
                                   ----------

     In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                            ORBIT INTERNATIONAL CORP.
                            ------------------------
                                   Registrant


Dated:     November 10, 2006     /s/ Dennis Sunshine
                                 -------------------
                                 Dennis Sunshine, President,
                                 Chief Executive Officer and
                                 Director



Dated:     November 10, 2006     /s/Mitchell Binder
                                 ------------------
                                 Mitchell Binder, Vice
                                 President-Finance, Chief
                                 Financial Officer
                                 and Director