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 June 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  August  10,  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  -
     June  30,  2006(unaudited)  and  December  31,  2005                4-5

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

     Condensed  Consolidated  Statement  of  Cash  Flows
     (unaudited)  Six  Months  Ended  June  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                  27-28

     Signatures                                                          29

     Exhibits                                                           30-35





             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  June  30, 2006, and the related
condensed  consolidated  statements  of  operations  for  the  six-month  and
three-month  periods ended June 30, 2006 and 2005 and the condensed consolidated
statements of cash flows for the six-month periods ended June 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  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



July  27,  2006


<TABLE>
<CAPTION>



                            PART I - FINANCIAL INFORMATION


Item 1.     FINANCIAL STATEMENTS

                      ORBIT INTERNATIONAL CORP. AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED BALANCE SHEET



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

                 ASSETS
                 -------

                 Current assets:

                 Cash and cash equivalents                 $   2,806,000  $ 3,933,000
                 Investments in marketable securities          3,486,000    1,012,000
                 Accounts receivable (less allowance for
                 doubtful accounts)                            3,575,000    3,695,000
                 Inventories.                                  9,170,000    9,055,000
                 Deferred tax asset                              784,000      784,000
                 Other current assets                            164,000      130,000
                                                           -------------  -----------

                 Total current assets                         19,985,000   18,609,000

                 Property and equipment, net                     386,000      357,000

                 Goodwill                                      6,135,000    6,130,000

                 Intangible assets, net                        1,421,000    1,639,000

                 Deferred tax asset                            1,254,000    1,219,000

                 Other assets                                    562,000    1,198,000
                                                           -------------  -----------


                 TOTAL ASSETS                              $  29,743,000  $29,152,000
                                                           =============  ===========



<FN>


See accompanying notes.

</TABLE>


<TABLE>
<CAPTION>



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


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

                        LIABILITIES AND STOCKHOLDERS' EQUITY
                        ------------------------------------

                        Current liabilities:

                        Current portion of long-term obligations        $   1,125,000   $ 1,125,000
                        Accounts payable                                    1,111,000       857,000
                        Accrued expenses                                    1,212,000     1,447,000
                        Customer advances                                      30,000       256,000
                        Deferred income                                        85,000        85,000
                                                                       --------------  ------------

                        Total current liabilities                           3,563,000     3,770,000

                        Deferred income                                       470,000       513,000

                        Long-term obligations, net of current
                        maturities.                                         4,716,000     5,279,000
                                                                       --------------  ------------

                        Total liabilities                                   8,749,000     9,562,000
                                                                       --------------  ------------

                        STOCKHOLDERS' EQUITY

                        Common stock - $.10 par value, 10,000,000
                        shares authorized, 4,583,000 shares issued
                        and outstanding                                       458,000       457,000
                        Additional paid-in capital                         19,415,000    20,600,000
                        Unearned compensation                                       -    (1,340,000)
                        Accumulated other comprehensive loss                  (37,000)       (4,000)
                        Retained earnings (accumulated deficit).            1,158,000      (123,000)
                                                                       --------------  ------------

                        Total stockholders' equity                         20,994,000    19,590,000
                                                                       --------------  ------------


                        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $   29,743,000  $ 29,152,000
                                                                       ==============  ============


<FN>



See accompanying notes.

</TABLE>



<TABLE>
<CAPTION>


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



                                       Six Months Ended                    Three Months Ended
                                           June 30,                            June 30,
<S>                   <C>                        <C>                   <C>          <C>         <C>       <C>
                                      2006                2005             2006         2005
                               -----------     ---------------      -----------   ----------


Net sales             $         12,739,000   $      12,128,000       $6,110,000   $6,725,000

Cost of sales                    7,155,000           6,714,000        3,423,000    3,677,000
                      --------------------   -----------------      -----------   ----------

Gross profit                     5,584,000           5,414,000        2,687,000    3,048,000
                      --------------------   -----------------      -----------   ----------

Selling, general and
 administrative
  expenses                       4,201,000           3,935,000        2,055,000    2,166,000
Interest expense                   228,000             103,000          112,000      102,000
Investment and
 other income, net               ( 151,000)         (   77,000)        ( 84,000)    ( 44,000)
                      ---------------------  ------------------     -----------    ----------
Income before
 provision for
  income taxes                   1,306,000           1,453,000          604,000      824,000

Provision for
  income taxes                      25,000                -              15,000         -
                      --------------------   ------------------      -----------  -----------


NET INCOME                      $1,281,000  $        1,453,000         $589,000     $824,000
                      ====================  ==================       ==========    ==========

Net income per
common share:


     Basic                    $    .29           $      .38          $    .14     $    .20
     Diluted                  $    .27           $      .34          $    .13     $    .18



<FN>

See accompanying notes.

</TABLE>



<TABLE>
<CAPTION>

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

<S>                                           <C>                                         <C>                     <C>
                                                              Six Months Ended
                                                                   June 30,
                                                                2006        2005
                                                         -----------   ---------
Cash flows from operating activities:
   Net income                                             $1,281,000   $1,453,000
   Adjustments to reconcile net income
    to net cash provided by
    operating activities:
   Stock-based compensation expense                          106,000            -
   Amortization of intangible assets                         218,000      110,000
   Depreciation and amortization                              69,000       46,000
   Bond premium amortization                                  23,000        4,000
   Deferred income.                                          (43,000)     (42,000)
   Expense due to stock grant                                      -       88,000

Changes in operating assets and liabilities:
   Accounts receivable                                       120,000      223,000
   Inventories                                              (115,000)     171,000
   Other current assets                                      (34,000)      49,000
   Other assets                                              636,000     (114,000)
   Accounts payable                                          254,000      266,000
   Due to former shareholders of Tulip/TDLM                        -     (450,000)
   Accrued expenses                                         (235,000)     172,000
   Customer advances                                        (226,000)     298,000
                                                         ------------  -----------

Net cash provided by operating activities                  2,054,000    2,274,000

Cash flows from investing activities:

 Cash paid for direct costs relating to
  Tulip acquisition                                           (5,000)  (4,688,000)
 Purchases of property and equipment                         (98,000)     (45,000)
 Sale of marketable securities                               158,000         -
 Purchase of marketable securities                        (2,688,000)    (442,000)
                                                        -------------  -----------

Net cash used in investing activities                     (2,633,000)  (5,175,000)

Cash flows from financing activities:

 Repayments of long-term debt                              (563,000)      (67,000)
 Proceeds from issuance of long term debt                        -      5,000,000
 Proceeds from exercise of stock options                     15,000     1,047,000
                                                         ----------     ---------

Net cash (used in) provided by
 financing activities                                      (548,000)    5,980,000

NET (DECREASE) INCREASE IN CASH AND
 CASH EQUIVALENTS                                        (1,127,000)    3,079,000

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

CASH AND CASH EQUIVALENTS - June 30                      $2,806,000   $ 4,191,000
                                                         ==========   ===========

Supplemental cash flow information:

 Cash paid for interest                                  $  232,000   $    41,000
<FN>
                             See accompanying notes.


</TABLE>




<PAGE>

                   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 six and three months ended June 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.

     At June 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 six and three months ended June 30,
2006  are  lower  by approximately $18,000 and $11,000, respectively, than if it
had  continued  to  account  for  share-based compensation under APB Opinion 25.
Basic  and  diluted  earnings  per  share for the six months ended June 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 June 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  six  and  three months ended June 30, 2006 was approximately
$106,000 and $55,000, 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 six and three months ended June 30,
2005:

<TABLE>
<CAPTION>



<S>                                         <C>           <C>                 <C>     <C>
                                            Six Months Ended    Three Months Ended
                                               June 30,             June 30,
                                                 2005                2005
                                            --------------- ------------------

Net Income - as reported                    $ 1,453,000       $     824,000

Add: Stock-based employee compensation
 expense, included in reported net income,
 net of related tax effect                       88,000              44,000

Deduct: Total stock-based employee
 compensation expense determined
 under fair value based method for all
 awards, net of related tax effect           (  142,000)            (81,000)
                                            ------------       -------------

Net Income - pro forma                      $ 1,399,000        $    787,000
                                            ============       ============

Basic income per share - as reported        $      0.38             $ 0.20
                                            ============             ======

Basic income per share - pro forma          $      0.37             $ 0.19
                                            ============             ======

Diluted income per share - as reported      $      0.34             $ 0.18
                                            ============             ======

Diluted income per share - pro forma        $      0.33             $ 0.18
                                            ============             ======
</TABLE>


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:

                                                Six Months Ended
                                                   June 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 June
30,  2006,  the  Company has unearned compensation of $1,252,000 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 six months ended June 30, 2006, under all
our  stock  option  plans  is  as  follows:


<TABLE>
<CAPTION>


<S>                       <C>       <C>    <C>                   <C>    <C>         <C>          <C>
                                              Average
                                    Weighted  Remaining
                                    Average   Contractual
                          Number of Exercise  Term
                            Shares  Price     (in years)
                         ---------  -----     ---------

Options outstanding,
 January 1, 2006          615,000   $2.96        6.00

Granted                     8,000    7.85       10.00

Forfeited                  (2,000)   6.66         -

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

Options outstanding,
 June 30, 2006
(Vested and expected
  to vest)                613,000   $3.02        5.00
                          ========  =====     =======

Outstanding exercisable
 at June 30, 2006         605,000   $2.96        5.00
                          ========  =====     ========
<FN>


</TABLE>

(continued)


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

     At  June  30, 2006 the aggregate intrinsic value of options outstanding was
$2,568,000  and  the  aggregate  intrinsic  value  of  options  exercisable  was
$2,573,000. The intrinsic value of options exercised during the six months ended
June  30,  2006  was  approximately  $95,000.

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



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

Nonvested  stock  options
 at  beginning  of  year      5,000           $5.79

Granted                       8,000            4.31

Vested                       (4,000)           5.79

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

Nonvested  stock  options
 At  end  of  year            8,000           $4.31
                              =====           =====

     At  June  30,  2006,  there  was  approximately  $29,000  of  unrecognized
compensation  cost  related  to  the above non-vested stock options. The cost is
expected  to  be  recognized  over  the  next  twelve  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 June 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
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  six months ended June 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.


                        Six Months Ended
                            June 30,
                             2005
                          (Pro forma)
                          -----------

Net Sales                 $13,782,000

Net Income                  1,616,000

Basic earnings
 per share                    0.41

Diluted earnings
 per share                    0.37


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


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

     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) (5.33% at June 30, 2006). No amounts have
been  borrowed  under  the  credit  facility.

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
June  30,  2006)  plus  2.00%.  Principal  payments  of  $100,000  are made on a
quarterly  basis  along  with  accrued  interest.

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

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



<TABLE>
<CAPTION>


                                     Six Months Ended         Three Months Ended
                                          June 30,                June 30,
<S>                             <C>                             <C>        <C>        <C>                    <C>
                                       2006       2005        2006        2005
                                  ---------   ---------     ------      ------
Denominator:
   Denominator for basic
   income per share -
   weighted-average common
   shares                          4,348,000  3,814,000   4,349,000   4,071,000
Effect of dilutive securities:
   Employee and directors
   stock options                     255,000    388,000     231,000     331,000
   Unearned portion of restricted
   stock awards                       64,000     51,000      47,000      56,000
                                   ---------   --------    --------   ----------
Denominator for diluted
 income per share -
 weighted-average common
 shares and assumed
 conversion                        4,667,000  4,253,000   4,627,000   4,458,000
                                   =========  =========   =========   =========
</TABLE>


(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 six and three
month  periods  ended  June  30,  2006  and  2005  is  net  income.

     Options  to  purchase  6,000 shares of common stock were outstanding during
the  three  months ended June 30, 2006 and options to purchase 5,000 shares were
outstanding  for  the  six  and  three periods ended June 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  234,000  shares  of common stock were outstanding during the
three  and  six  months  ended  June  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:


<TABLE>
<CAPTION>


<S>              <C>         <C>            <C>
                 June 30,    December 31,
                       2006           2005
                 ----------  -------------

Raw Materials    $4,677,000  $   4,637,000
Work-in-process   3,851,000      3,813,000
Finished goods      642,000        605,000
                 ----------  -------------
TOTAL            $9,170,000     $9,055,000
                ===========  =============

</TABLE>


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

     For  the  six  and  three  months  ended June 30, 2006, total comprehensive
income  was  $1,248,000  and  $559,000, respectively. For the comparable periods
during  2005,  total  comprehensive  income  was  $1,446,000  and  $818,000,
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  June  30,  2006  and  2005.


<TABLE>
<CAPTION>


<S>                      <C>                 <C>                   <C>           <C>          <C>          <C>          <C>
                                     Six Months Ended                  Three Months Ended
                                          June 30,                        June 30,
                                      2006             2005           2006         2005
                          ----------------    -------------    -----------  -----------
Net sales:
 Electronics
  Domestic            $         7,682,000       $ 6,233,000     $3,746,000   $3,941,000
  Foreign                         657,000           129,000        332,000        83,000
                           --------------       -----------    -----------  -----------
 Total Electronics              8,339,000         6,362,000      4,078,000    4,024,000

 Power Units
   Domestic                     4,118,000         5,438,000      1,864,000     2,462,000
   Foreign                        282,000           328,000        168,000       239,000
                             ------------       -----------    -----------   -----------
 Total Power Units              4,400,000         5,766,000      2,032,000     2,701,000
                             ------------       -----------    -----------   -----------

  Total               $        12,739,000       $12,128,000     $6,110,000    $6,725,000
                       ==================      ============    ===========   ===========

Income from operations:
  Electronics         $         1,632,000       $ 1,027,000     $  817,000    $  751,000
  Power Units                     423,000         1,265,000        190,000       493,000
General corporate
 expenses not
 allocated                       (672,000)        (813,000)       (375,000)     (362,000)
Interest expense                 (228,000)        (103,000)       (112,000)     (102,000)
Investment and other
 income                           151,000           77,000          84,000        44,000
                       ------------------      ------------    -----------   -----------
Income before
income taxes          $         1,306,000      $ 1,453,000      $  604,000    $  824,000
                      ===================      ============    ===========    ==========

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

</TABLE>

(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          $217,000
               2007           435,000
               2008           356,000
               2009           330,000
               2010            83,000
                             --------

               Total       $1,421,000


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



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

     For  the six and three months ended June 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
$25,000  and  $15,000, respectively, for the six and three months ended June 30,
2006. For the six and three months ended June 30, 2005, the Company utilized net
operating  loss carryforwards to offset all income, and accordingly, recorded no
provision  for  income  taxes.





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 six month
periods ended June 30, 2006.   The results of operations for the prior six month
period  ended June 30, 2005 include the operations of Tulip as of April 4, 2005,
the  date  the  transaction  was  completed.  Revenues decreased by 9.1% and the
Company's  gross  profit  margins  slightly decreased for the three-month period
ended  June  30, 2006 compared to the prior period.  Revenues slightly increased
by  5%  and gross margins decreased for the six month period ended June 30, 2006
compared  to the prior period principally due to the inclusion of the operations
of  Tulip  in the current six-month period.  Net income for both the three month
and  six  month  periods  ended  June  30,  2006 decreased compared to the prior
periods.  The  decline  in  profitability  in  the  second quarter and six month
period  was  due  to unusually strong revenues and profitability recorded by our
Power  Group in the prior periods as a result of large deliveries under the FLIR
contract,  which completed shipments in the second quarter of 2005.  Our backlog
at  June  30, 2006 was approximately $10,900,000 compared to $14,500,000 at June
30,  2005 primarily due to a lower backlog from the Electronics Group.  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 high with
respect  to  receiving  many  of  the  orders we are pursuing although timing is
always  an  uncertainty.  Many  of  the  follow-on orders that we expected to be
recorded  in the second quarter were not received due to program funding delays.
We  remain  confident  that  these  follow-on  orders  will  be  received.   Our
profitability over the past few years has significantly strengthened our balance
sheet  evidenced  by  our 5.6 to 1 current ratio at June 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  accretive  acquisition opportunities that are
compatible  with  our  existing  operations.  We  also  believe  we 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 $25,000,000 that expire through
2025.  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 $106,000 and $55,000, respectively, for the
six  and  three  months  ended  June 30, 2006. The estimated fair value of stock
options  granted in 2006 were calculated using the 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  June  30,  2006  v.  June  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  six month period ended June 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 June 30, 2006
decreased by 9.1% to $6,110,000 from $6,725,000 for the three month period ended
June  30, 2005 principally due to a 24.8% decrease in sales from its Power Group
that  was  partially  offset  by  a  slight  1.3%  increase  in  sales  from the
Electronics  Group.  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 three months ended June 30,
2006  decreased  to  44.0%  from 45.3% for the three-month period ended June 30,
2005.  This  decrease resulted from a lower gross profit from both the Company's
Electronics and Power Groups.  The decrease in gross profit from the Electronics
Group  was  principally due to product mix.  The decrease in gross profit by the
Power  Group  was  due  principally  to  a  decrease  in  sales and product mix.

     Selling,  general  and  administrative  expenses  decreased  by  5.1%  to
$2,055,000  for  the  three month period ended June 30, 2006 from $2,166,000 for
the  three  month  period  ended  June 30, 2005 principally due to lower selling
costs from the Power Group due to lower sales and lower corporate administrative
costs.  Despite  the  decrease  in expenses, selling, general and administrative
expenses,  as  a  percentage of sales, for the three month period ended June 30,
2006  increased  to  33.6%  from 32.2% for the three month period ended June 30,
2005  principally  due  to  the  decrease  in  sales  from  the  Power  Group.

     Interest  expense,  for the three month period ended June 30, 2006 slightly
increased to $112,000 compared to $102,000 the three month period ended June 30,
2005,  due  to  an  increase  in interest rates that was partially offset by the
decrease  in  debt  levels.

     Investment  and other income for the three-month period ended June 30, 2006
increased  to  $84,000  from  $44,000  for the three-month period ended June 30,
2005,  principally  due  to  an  increase in amounts invested during the current
period  and  to  the  increase  in  interest  rates.

     Income  before  income  tax provision for the three month period ended June
30,  2006  decreased  to $604,000 from $824,000 for the three month period ended
June  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,  the  increase in interest expense and despite the increase in investment
and  other  income.



     Income taxes for the three months ended June 30, 2006 consist of $15,000 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 June
30,  2006  was $589,000 compared to $824,000 for the three months ended June 30,
2005,  a  decrease  of  28.5%.

     Earnings  before  interest, taxes, depreciation and amortization, and stock
based  compensation  (EBITDA)  for  the  three  month period ended June 30, 2006
decreased  to $911,000 from $1,108,000 for the three month period ended June 30,
2005.  Listed  below  is  the  EBITDA  reconciliation  to  net  income:




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

Net  income                      $  589,000             $  824,000
Interest  expense                   112,000                102,000
Tax  expense                         15,000                   -
Depreciation  and  amortization     140,000                138,000
Stock  based  compensation           55,000                 44,000
                                     ------              ---------
EBITDA                           $  911,000             $1,108,000




Six-month  period  ended  June  30,  2006  v.  June  30,  2005
--------------------------------------------------------------

     Consolidated  net  sales  for  the  six-month  period  ended  June 30, 2006
increased by 5.0% to $12,739,000 from $12,128,000 for the six-month period ended
June  30, 2005 principally due to a 31.1% increase in sales from its Electronics
Group  that  was  partially  offset by a 23.7% reduction in sales from its Power
Group.  The  increase  in  sales  from  the  Electronics  Segment was due to the
inclusion  of the operations of Tulip for the full current period.  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 six months ended June 30,
2006 decreased to 43.8% from 44.6% for the six-month period ended June 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 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  6.8%  to
$4,201,000  for the six-month period ended June 30, 2006 from $3,935,000 for the
six-month  period  ended  June  30, 2005 principally due to the inclusion of the
operations  of Tulip for the full current period and despite lower selling costs
from  the Power Group and lower corporate administrative costs. Selling, general
and  administrative expenses, as a percentage of sales, for the six-month period
ended June 30, 2006 increased to 33.0% from 32.4% for the six-month period ended
June  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.


     Interest expense, for the six month period ended June 30, 2006 increased to
$228,000  compared to $103,000 for the six month period ended June 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 six month period ended June 30, 2006
increased  to $151,000 from $77,000 for the six month period ended June 30, 2005
principally due to an increase in amounts invested during the current period and
to  the  increase  in  interest  rates.

     Income  before income tax provision for the six month period ended June 30,
2006 decreased to $1,306,000 from $1,453,000 for the six month period ended June
30,  2005,  principally  due  to  the decrease in gross margins, the increase in
selling,  general and administrative expenses and despite the slight increase in
sales  and  the  increase  in  investment  and  other  income.

     Income  taxes  for the six months ended June 30, 2006 consist of $25,000 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 six months ended June 30,
2006  was  $1,281,000  compared  to $1,453,000 for the six months ended June 30,
2005,  a  decrease  of  11.8%.

     Earnings  before  interest, taxes, depreciation and amortization, and stock
based  compensation  (EBITDA)  for  the  six  month  period  ended June 30, 2006
increased  to $1,927,000 from $1,800,000 for the six month period ended June 30,
2005.  Listed  below  is  the  EBITDA  reconciliation  to  net  income:

                                      Six  months  ended
                                          June  30,
                                   2006                  2005
                                   ----                  ----

Net  income                       $1,281,000           $1,453,000
Interest  expense                    228,000              103,000
Tax  expense                          25,000                -
Depreciation  and  amortization      287,000              156,000
Stock  based  compensation           106,000               88,000
                                  ----------            ---------
EBITDA                            $1,927,000           $1,800,000

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

     Working  capital  increased  to  $16,422,000  at  June 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 June 30, 2006 from 4.9 to 1 at December 31,
2005.

Net cash provided by operations for the six month period ended June 30, 2006 was
$2,054,000,  primarily  attributable  to  the  net  income  for  the period, the
non-cash  amortization  of  intangible  assets  and  stock based compensation, a
decrease  in  accounts receivable and other long term assets, and an increase in
accounts  payable  that  was  partially offset by an increase in inventory and a
decrease  in  accrued  expenses  and  customer  advances.  Net  cash provided by
operations  for  the  six  month  period  ended  June  30,  2005 was $2,274,000,
primarily  attributable  to  the  net  income  for  the  period,  the  non-cash
amortization  of  intangible  assets,  a  decrease  in  accounts  receivable and
inventories,  and an increase in accounts payable, accrued expenses and customer
advances that was partially offset by an increase in other assets and a decrease
in  the  amount  due  to  the  former  shareholders  of  Tulip.

     Cash flows used in investing activities for the six-month period ended June
30,  2006  was  $2,633,000, 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
six-month  period  ended  June  30,  2005  was  $5,175,000,  attributable to the
purchase  of  Tulip,  purchases  of  marketable  securities  and  property  and
equipment.

     Cash flows used in financing activities for the six-month period ended June
30, 2006 was $548,000, attributable to the repayments of long term debt that was
partially  offset  by  stock option exercises.  Cash flows provided by financing
activities  for  the  six-month  period  ended  June  30,  2005  was $5,980,000,
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 (5.33% at June
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  June 30, 2006).  Principal payments of $100,000 are made on a
quarterly  basis  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   $5,826,000  $1,114,000   $3,343,000  $1,369,000       -

Capital  lease
   Obligations        15,000      11,000        4,000       -           -

Operating  leases  3,534,000     580,000    1,677,000     958,000  $319,000
                   ---------   ----------  ----------  ---------- ----------

Total  contractual
    Obligations   $9,375,000  $1,705,000    $5,024,000 $2,327,000  $319,000

     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, however, during the second quarter of 2006, the
Company  began  to  experience a slowdown in its bookings due to program funding
delays.  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  numerous
opportunities  presently available.  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 June 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

     An Annual Meeting of Stockholders of the Company was held on June 23, 2006.
The  holders of 4,583,071 shares of Common Stock of the Company were entitled to
vote  at  the  meeting,  the  holders  of  3,761,086  shares of Common Stock, or
approximately 82% of shares entitled to vote at the meeting, were represented by
proxy.  The  following  action  took  place:

     1. The stockholders voted for the election of each of the following persons
nominated  to  serve  as a Director of the Company until the next annual meeting
and  until his successor is elected and qualified:  Dennis Sunshine by 3,711,707
votes  for  and 49,379 against, Bruce Reissman by 3,711,656 votes for and 49,430
against, Mitchell Binder by 3,690,866 votes for and 70,220 against, Arthur Rhein
by 3,043,154 votes for and 717,932 against, Bernard Karcinell by 3,709,884 votes
for  and 51,202 against, Lee Feinberg by 3,041,828 votes for and 719,258 against
and  H.  William  Coogan  by  3,731,219  for  and  29,867  against.

     2.  The  stockholders  voted  1,476,383 for and 1,006,574 the resolution to
adopt  the Company's 2006 Employee Stock Incentive Plan (9,299 votes abstained).

     3.  The  stockholders voted 3,731,503 for and 24,819 against the resolution
relating  to  the  appointment of Goldstein Golub Kessler LLP as the independent
auditors  and  accountants  for the Company for the year ended December 31, 2006
(4,764  votes  abstained).

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  May 10, 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  May 9, 2006, announcing the Company's operating results for
the  first  quarter  and  three  months  ended  March  31,  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:     August 14, 2006     /s/ Dennis Sunshine
                               -------------------
                               Dennis Sunshine, President,
                               Chief Executive Officer and
                               Director



Dated:     August 14, 2006     /s/ Mitchell Binder
                               ------------------
                               Mitchell Binder, Vice
                               President-Finance, Chief
                               Financial Officer
                               and Director