----

----

| [ X ]  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF  1934 |
|--------|-------------------------------------------------------------------------------------------------|
|   | For the fiscal year ended   March 27, 2010 ,                                          |

|   |   |
|--------|--------|

| [    ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------------------|------------------------------------------------------------------------------------------|
|                       | For the transition period from _____________  to  _____________.     |

|   | Commission File No. 0-12719 |
|--------|-----------------------------|

| GIGA-TRONICS INCORPORATED                              |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| California                                                     |   | 94-2656341                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 4650 Norris Canyon Road, San Ramon, CA                         |   | 94583                                |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

|   | Registrant’s telephone number, including area code:  (925) 328-4650 |
|--------|-------------------------------------------------------------------------------------|

|   | Securities registered pursuant to Section 12(b) of the Act: |
|--------|-------------------------------------------------------------|

| Title of each class        |   | Name of each exchange on which registered |
|----------------------------|--------|-------------------------------------------|
| Common Stock, No par value |   | The NASDAQ Stock Market LLC               |

----

| Large accelerated filer        | [  ] |   | Accelerated filer         | [  ] |
|-----------------------------------------------|----------------|--------|---------------------------|----------------|
|                                          |           |   |                      |           |
| Non-accelerated filer                         | [  ] |   | Smaller reporting company | [ X ]          |
| (Do not check if a smaller reporting company) |           |   |                      |

| PART OF FORM 10-K |   | DOCUMENT                                                                                                                                                                   |
|-------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART III          |   | Registrant’s PROXY STATEMENT for its 2010 Annual Meeting of Shareholders to be filed no later than 120 days after the close of the fiscal year ended March 27, 2010. |

----

| PART I       |                                                                   | Page                                                                                       |
|--------------|------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|         | Item 1.                                                                | Business                                                                                   | 4 |
|         | Item 1A                                                                | Risk Factors                                                                               | 8 |
|         | Item 1B.                                                               | Unresolved Staff Comments                                                                  | 9 |
|         | Item 2.                                                                | Properties                                                                                 | 10 |
|         | Item 3.                                                                | Legal Proceedings                                                                          | 10 |
|         | Item 4.                                                                | Reserved                                                                                   | 10 |
| PART II      |                                                                   |
|         | Item 5.                                                                | Market For Common Equity, Related Shareholder Matters and Issuer Repurchases of Equity     |   |
|         |                                                                   |      Securities                                                   | 10 |
|         | Item 6.                                                                | Selected Financial Data                                                                    | 11 |
|         | Item 7.                                                                | Management’s Discussion and Analysis Of Financial Condition and Results Of Operation | 15 |
|         | Item 7A.                                                               | Quantitative and Qualitative Disclosures About Market Risk                                 | 21 |
|         | Item 8.                                                                | Financial Statements and Supplementary Data                                                | 21 |
|         |                                                                   |                                                                                       | Consolidated Balance Sheets as of March 27, 2010 and March 28, 2009 | 22 |
|         |                                                                   |                                                                                       | Consolidated Statements of Operations for the years ended March 27, 2010 and     March 28, 2009 | 23 |
|         |                                                                   |                                                                                       | Consolidated Statements of Shareholders’ Equity for the years ended March 27, 2010     and March 28, 2009 | 24 |
|         |                                                                   |                                                                                       | Consolidated Statements of Cash Flows for the years ended March 27, 2010 and     March 28, 2009 | 25 |
|         |                                                                   |                                                                                       | Notes to Consolidated Financial Statements | 26 |
|         |                                                                   |                                                                                       | Report of Independent Registered Public Accounting Firm | 36 |
|         | Item 9.                                                                | Changes In and Disagreements With Accountants On Accounting and Financial Disclosure       | 37 |
|         | Item 9A.                                                               | Controls and Procedures                                                                    | 37 |
|         | Item 9B.                                                               | Other Information                                                                          | 37 |
| PART III     |                                                                   |
|         | Item 10.                                                               | Directors, Executive Officers, and Corporate Governance                                    | 38 |
|         | Item 11.                                                               | Executive Compensation                                                                     | 38 |
|         | Item 12.                                                               | Security Ownership Of Certain Beneficial Owners and Management and Related                 |   |
|         |                                                                   |      Shareholder Matters                                          | 38 |
|         | Item 13.                                                               | Certain Relationships and Related Transactions, and Director Independence                  | 38 |
|         | Item 14.                                                               | Principal Accountant Fees and Services                                                     | 38 |
| PART IV      |                                                                   |
|         | Item 15.                                                               | Exhibits And Financial Statements Schedules                                                | 38 |
| SIGNATURES   |                                                                   | 39                                                                                         |
| Exhibit 10.1 | Standard Form Indemnification Agreement for Directors and Officers     | 41                                                                                         |
| Exhibit 10.2 | First Amendment to Office Lease Agreement                              | 46                                                                                         |
| Exhibit 21   | Significant Subsidiaries                                               | 55                                                                                         |
| Exhibit 23.1 | Consent of Independent Registered Public Accounting Firm               | 56                                                                                         |
| Exhibit 31.1 | CEO Certifications Under Section 302 of the Sarbanes-Oxley Act of 2002 | 57                                                                                         |
| Exhibit 31.2 | CFO Certifications Under Section 302 of the Sarbanes-Oxley Act of 2002 | 58                                                                                         |
| Exhibit 32.1 | CEO Certifications Under Section 906 of the Sarbanes-Oxley Act of 2002 | 59                                                                                         |
| Exhibit 32.2 | CFO Certifications Under Section 906 of the Sarbanes-Oxley Act of 2002 | 60                                                                                         |

----

----

----

----

----

| Geographic Distribution of Net Sales |   |   |        % of total |   |
|--------------------------------------|--------|--------|-------------------------------------------------|--------|
| (Dollars in thousands)               |   | 2010   |                                            |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Domestic                             |   | $      | 15,092                                          |   |   | $ | 13,490 |   |   |   | 79.0 | % |   |   | 77.0 | % |
| International                        |   |   | 3,965                                           |   |   |   | 3,931 |   |   |   | 21.0 | % |   |   | 23.0 | % |
| Total                                |   | $      | 19,057                                          |   |   | $ | 17,421 |   |   |   |   |   |   |   |   |   |

----

----

|           | 2010           |  High             |  Low              |   | 2009           |  High             |  Low              |
|----------------|----------------|------------------------|------------------------|--------|----------------|------------------------|------------------------|
| First Quarter  | (3/29 - 6/27)  |  $1.66            |  $1.00            |   | (3/30 - 6/28)  |  $1.80            |  $1.26            |
| Second Quarter | (6/28 - 9/26)  |    2.14 |    1.21 |   | (6/29 - 9/27)  |    1.25 |    0.80 |
| Third Quarter  | (9/27 - 12/26) |    3.52 |  1.80             |   | (9/28 - 12/27) |    1.00 |  0.50             |
| Fourth Quarter | (12/27 - 3/27) |    3.26 |    2.15 |   | (12/28 - 3/28) |    1.21 |    0.55 |

----

| Equity Compensation Plan Information   |   |
|----------------------------------------|--------|
|                                   |   | No. of securities to be issued upon exercise of outstanding options, warrants and rights |   |   | Weighted average exercise price of outstanding options, warrants and rights |   |   | No. of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |   |
| Plan Category                          |   | (a) |   |   | (b) |   |   | (c) |   |
| Equity compensation plans approved     |   |   |   |   |   |   |   |   |   |
| by security holders                    |   |   | 891,027 |   |   | $ | 1.8812 |   |   |   | 342,475 |   |
| Equity compensation plans not approved |   |   |   |   |   |   |   |   |   |   |   |   |
| by security holders                    |   |   | n/a |   |   |   | n/a |   |   |   | n/a |   |
| Total                                  |   |   | 891,027 |   |   | $ | 1.8812 |   |   |   | 342,475 |   |

----

| SELECTED CONSOLIDATED FINANCIAL DATA      |   |
|-------------------------------------------|--------|
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Summary of Operations:                    |   | Years Ended |   |
| (In thousands except per share data)      |   | March 27, 2010 |   |   | March 28, 2009 |   |   | March 29, 2008 |   |   | March 31, 2007 |   |   | March 25, 2006 |   |
| Net sales                                 |   | $ | 19,057 |   |   | $ | 17,421 |   |   | $ | 18,331 |   |   | $ | 18,048 |   |   | $ | 20,620 |   |
| Gross profit                              |   |   | 8,435 |   |   |   | 7,504 |   |   |   | 7,748 |   |   |   | 7,546 |   |   |   | 8,300 |   |
| Operating expenses                        |   |   | 7,117 |   |   |   | 7,914 |   |   |   | 7,939 |   |   |   | 9,548 |   |   |   | 9,316 |   |
| Interest (expense) income, net            |   |   | (16 | ) |   |   | 7 |   |   |   | 36 |   |   |   | 108 |   |   |   | 32 |   |
| Pre-tax income (loss) from continuing     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                |   |   | 1,302 |   |   |   | (403 | ) |   |   | (201 | ) |   |   | (1,894 | ) |   |   | (984 | ) |
| Provision for income taxes                |   |   | 2 |   |   |   | 2 |   |   |   | 2 |   |   |   | 1 |   |   |   | 4 |   |
| Income (loss) from continuing operations  |   |   | 1,300 |   |   |   | (405 | ) |   |   | (203 | ) |   |   | (1,895 | ) |   |   | (988 | ) |
| Income (loss) on discontinued operations, |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                       |   |   | --- |   |   |   | 75 |   |   |   | (31 | ) |   |   | 28 |   |   |   | 27 |   |
|  Net income (loss)                   |   | $ | 1,300 |   |   | $ | (330 | ) |   | $ | (234 | ) |   | $ | (1,867 | ) |   | $ | (961 | ) |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share:          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From continuing operations                |   | $ | 0.27 |   |   | $ | (0.08 | ) |   | $ | (0.04 | ) |   | $ | (0.40 | ) |   | $ | (0.21 | ) |
| On discontinued operations                |   |   | --- |   |   |   | 0.01 |   |   |   | (0.01 | ) |   |   | 0.01 |   |   |   | 0.01 |   |
| Net earnings (loss) per share - basic     |   | $ | 0.27 |   |   | $ | (0.07 | ) |   | $ | (0.05 | ) |   | $ | (0.39 | ) |   | $ | (0.20 | ) |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From continuing operations                |   | $ | 0.26 |   |   | $ | (0.08 | ) |   | $ | (0.04 | ) |   | $ | (0.40 | ) |   | $ | (0.21 | ) |
| On discontinued operations                |   |   | --- |   |   |   | 0.01 |   |   |   | (0.01 | ) |   |   | 0.01 |   |   |   | 0.01 |   |
| Net earnings (loss) per share - diluted   |   | $ | 0.26 |   |   | $ | (0.07 | ) |   | $ | (0.05 | ) |   | $ | (0.39 | ) |   | $ | (0.20 | ) |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock - basic            |   |   | 4,846 |   |   |   | 4,824 |   |   |   | 4,813 |   |   |   | 4,809 |   |   |   | 4,782 |   |
| Shares of common stock - diluted          |   |   | 4,907 |   |   |   | 4,824 |   |   |   | 4,813 |   |   |   | 4,809 |   |   |   | 4,782 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial Position:                       |   | Years Ended |   |
| (In thousands except per share data)      |   | March 27, 2010 |   |   | March 28, 2009 |   |   | March 29, 2008 |   |   | March 31, 2007 |   |   | March 25, 2006 |   |
| Current ratio                             |   |   | 2.78 |   |   |   | 3.14 |   |   |   | 3.68 |   |   |   | 3.09 |   |   |   | 3.93 |   |
| Working Capital                           |   | $ | 8,683 |   |   | $ | 7,131 |   |   | $ | 7,231 |   |   | $ | 7,280 |   |   | $ | 8,856 |   |
| Total assets                              |   | $ | 13,919 |   |   | $ | 10,789 |   |   | $ | 10,361 |   |   | $ | 11,161 |   |   | $ | 12,346 |   |
| Shareholders' equity                      |   | $ | 8,943 |   |   | $ | 7,332 |   |   | $ | 7,392 |   |   | $ | 7,393 |   |   | $ | 9,098 |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percentage Data:                          |   | Years Ended |   |
| (Percentage of net sales)                 |   | March 27, 2010 |   |   | March 28, 2009 |   |   | March 29, 2008 |   |   | March 21, 2007 |   |   | March 25, 2006 |   |
| Gross profit                              |   |   | 44.3 | % |   |   | 43.1 | % |   |   | 42.3 | % |   |   | 41.8 | % |   |   | 40.3 | % |
| Operating expenses                        |   |   | 37.3 | % |   |   | 45.4 | % |   |   | 43.3 | % |   |   | 52.9 | % |   |   | 45.2 | % |
| Interest (expense)  income, net |   |   | (0.1 | %) |   |   | 0.0 | % |   |   | 0.2 | % |   |   | 0.6 | % |   |   | 0.1 | % |
| Pre-tax income (loss) from continuing     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                |   |   | 6.8 | % |   |   | (2.3 | %) |   |   | (1.1 | %) |   |   | (10.5 | %) |   |   | (4.8 | %) |
| Income (loss) on discontinued operations, |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net of income taxes                       |   |   | 0.0 | % |   |   | 0.4 | % |   |   | (0.2 | %) |   |   | 0.2 | % |   |   | 0.1 | % |
|  Net income (loss)                   |   |   | 6.8 | % |   |   | (1.9 | %) |   |   | (1.3 | %) |   |   | (10.3 | %) |   |   | (4.7 | %) |

----

| Quarterly Financial Information (Unaudited) |   | 2010   |   |
|---------------------------------------------|--------|--------|--------|
|  (In thousands except per share data)  |   | First  |   |   | Second |   |   | Third |   |   | Fourth |   |   | Year |   |
| Net sales                                   |   | $      | 4,469  |   |   | $ | 4,623 |   |   | $ | 4,784 |   |   | $ | 5,181 |   |   | $ | 19,057 |   |
| Gross profit                                |   |   | 2,114  |   |   |   | 2,113 |   |   |   | 2,054 |   |   |   | 2,154 |   |   |   | 8,435 |   |
| Operating expenses                          |   |   | 1,775  |   |   |   | 1,734 |   |   |   | 1,738 |   |   |   | 1,870 |   |   |   | 7,117 |   |
| Interest expense, net                       |   |   | (3     | ) |   |   | (6 | ) |   |   | (7 | ) |   |   | --- |   |   |   | (16 | ) |
| Pre-tax income from continuing operations   |   |   | 335    |   |   |   | 373 |   |   |   | 309 |   |   |   | 285 |   |   |   | 1,302 |   |
| Provision for income taxes                  |   |   | 2      |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | 2 |   |
| Income from continuing operations           |   |   | 333    |   |   |   | 373 |   |   |   | 309 |   |   |   | 285 |   |   |   | 1,300 |   |
| Income on discontinued operations,          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     net of income taxes |   |   | ---    |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Net income                                  |   | $      | 333    |   |   | $ | 373 |   |   | $ | 309 |   |   | $ | 285 |   |   | $ | 1,300 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share – basic            |   | $      | 0.07   |   |   | $ | 0.08 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.27 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share – diluted          |   | $      | 0.07   |   |   | $ | 0.08 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.26 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock – basic        |   |   | 4,824  |   |   |   | 4,828 |   |   |   | 4,846 |   |   |   | 4,887 |   |   |   | 4,846 |   |
| Shares of common stock – diluted      |   |   | 4,826  |   |   |   | 4,844 |   |   |   | 4,940 |   |   |   | 5,013 |   |   |   | 4,907 |   |

----

| Quarterly Financial Information (Unaudited)              |   | 2009   |      |
|----------------------------------------------------------|--------|--------|-----------|
|  (In thousands except per share data)               |   | First  |      |   | Second |   |   | Third |   |   | Fourth |   |   | Year |   |
| Net sales                                                |   | $      | 3,488     |   |   | $ | 3,689 |   |   | $ | 5,099 |   |   | $ | 5,145 |   |   | $ | 17,421 |   |
| Gross profit                                             |   |   | 1,397     |   |   |   | 1,338 |   |   |   | 2,420 |   |   |   | 2,349 |   |   |   | 7,504 |   |
| Operating expenses                                       |   |   | 1,920     |   |   |   | 1,959 |   |   |   | 2,069 |   |   |   | 1,966 |   |   |   | 7,914 |   |
| Interest income, net                                     |   |   | 3         |   |   |   | 6 |   |   |   | (2 | ) |   |   | --- |   |   |   | 7 |   |
| Pre-tax income (loss) from continuing operations         |   |   | (520      | ) |   |   | (615 | ) |   |   | 349 |   |   |   | 383 |   |   |   | (403 | )  |
| Provision for income taxes                               |   |   | 2         |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | 2 |   |
| Income (loss) from continuing operations                 |   |   | (522      | ) |   |   | (615 | ) |   |   | 349 |   |   |   | 383 |   |   |   | (405 | )  |
| Income (loss) on discontinued operations,                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     net of income taxes              |   |   | ---       |   |   |   | 75 |   |   |   | --- |   |   |   | --- |   |   |   | 75 |   |
| Net income (loss)                                        |   | $      | (522      | ) |   | $ | (540 | ) |   | $ | 349 |   |   | $ | 383 |   |   | $ | (330 | )  |
|                                                     |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share:                         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      From continuing operations |   |   | (0.11     | )  |   |   | (0.13 | ) |   |   | 0.07 |   |   |   | 0.08 |   |   |   | (0.08 | )  |
|      On discontinued operations |   |   |  --- |   |   |   | 0.02 |   |   |   | --- |   |   |   | ---  |   |   |   |  0.01 |   |
| Net earnings (loss) per share – basic              |   | $      | (0.11     | ) |   | $ | (0.11 | ) |   | $ | 0.07 |   |   | $ | 0.08 |   |   | $ | (0.07 | ) |
|                                                     |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:                       |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      From continuing operations |   |   | (0.11     | )  |   |   | (0.13 | )  |   |   | 0.07 |   |   |   | 0.08 |   |   |   | (0.08 | ) |
|      On discontinued operations |   |   |  --- |   |   |   |  0.02 |   |   |   | --- |   |   |   | --- |   |   |   | 0.01 |   |
| Net earnings (loss) per share – diluted            |   | $      | (0.11     | ) |   | $ | (0.11 | ) |   | $ | 0.07 |   |   | $ | 0.08 |   |   | $ | (0.07 | ) |
|                                                     |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock – basic                     |   |   | 4,824     |   |   |   | 4,824 |   |   |   | 4,824 |   |   |   | 4,824 |   |   |   | 4,824 |   |
| Shares of common stock – diluted                   |   |   | 4,824     |   |   |   | 4,824 |   |   |   | 4,824 |   |   |   | 4,824 |   |   |   | 4,824 |   |

----

| New Orders             |   |   |   |   |   |   |   |   |   |   |           % change |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------|--------|
|                   |   |   |   |   |   |   |   |   |   |   | 2010                                                            |   |   | 2009 |   |
|                   |   |   |   |   |   |   |   |   |   |   | vs.                                                             |   |   | vs. |   |
| (Dollars in thousands) |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2009                                                            |   |   | 2008 |   |
| Giga-tronics           |   | $      | 11,387 |   |   | $      | 11,599 |   |   | $      | 13,795                                                          |   |   |   | (2 | %) |   |   | (16 | %) |
| Microsource            |   |   | 7,061  |   |   |   | 7,399  |   |   |   | 3,625                                                           |   |   |   | (5 | %) |   |   | 104 | % |
| Total                  |   | $      | 18,448 |   |   | $      | 18,998 |   |   | $      | 17,420                                                          |   |   |   | (3 | %) |   |   | 9 | % |

----

| Backlog                                               |   |   |   |   |   |   |   |   |   |   |                % change |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------------------|--------|
|                                                  |   |   |   |   |   |   |   |   |   |   | 2010                                                                                          |   |   | 2009 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   | vs.                                                                                           |   |   | vs. |   |
| (Dollars in thousands)                                |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2009                                                                                          |   |   | 2008 |   |
| Backlog of unfilled orders                            |   | $      | 8,496  |   |   | $      | 9,105  |   |   | $      | 7,528                                                                                         |   |   |   | (7 | %) |   |   | 21 | % |
| Backlog of unfilled orders shippable within one year  |   |   | 7,599  |   |   |   | 6,810  |   |   |   | 4,604                                                                                         |   |   |   | 12 | % |   |   | 48 | % |
| Previous fiscal year end (FYE) long term backlog      |   |   |   |   |   |   |   |   |   |   |                                                                                          |   |   |   |   |   |   |   |   |   |
| reclassified during year as shippable within one year |   |   | 2,414  |   |   |   | 1,382  |   |   |   | 425                                                                                           |   |   |   | (75.1 | %) |   |   | 286 | % |
| Net cancellations during year of previous FYE         |   |   |   |   |   |   |   |   |   |   |                                                                                          |   |   |   |   |   |   |   |   |   |
| one-year backlog                                      |   |   | ---    |   |   |   | ---    |   |   |   | ---                                                                                           |   |   |   | --- |   |   |   | --- |   |

| Allocation of Net Sales |   |   |   |   |   |   |   |   |   |   |              % change |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------|--------|
|                    |   |   |   |   |   |   |   |   |   |   | 2010                                                                              |   |   | 2009 |   |
|                    |   |   |   |   |   |   |   |   |   |   | vs.                                                                               |   |   | vs. |   |
| (Dollars in thousands)  |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2009                                                                              |   |   | 2008 |   |
| Commercial              |   | $      | 6,743  |   |   | $      | 6,303  |   |   | $      | 7,020                                                                             |   |   |   | 7 | % |   |   | (10 | %) |
| Government / Defense    |   |   | 12,314 |   |   |   | 11,118 |   |   |   | 11,311                                                                            |   |   |   | 11 | % |   |   | (2 | %) |
| Total                   |   | $      | 19,057 |   |   | $      | 17,421 |   |   | $      | 18,331                                                                            |   |   |   | 9 | % |   |   | (5 | %) |

| Allocation of Net Sales by Segment |                                 |                                                   |                                 |             % change |
|------------------------------------|--------------------------------------|--------------------------------------------------------|--------------------------------------|-----------------------------------------------------------------------------|
|                               |                                 |                                                   |                                 |                                                                        | 2010 | 2009 |
|                               |                                 |                                                   |                                 |                                                                        | vs. | vs. |
| (Dollars in thousands)             | 2010                                 | 2009                                                   | 2008                                 |                                                                        | 2009 | 2008 |
| Giga-tronics Division              |                                 |                                                   |                                 |                                                                        |   |   |
| Commercial                         |  $    4,882 |  $    4,694                   |  $    5,282 |                                                                        |  4% |  (11%) |
| Government / Defense               |     7,119        |     6,989                          |     9,264        |                                                                        | 2% |  (25%) |
| Total                              |    $ 12,001           |    $ 11,683                             | $  14,546                  |                                                                        | 3% | (20%) |
|                               |                                 |                                                   |                                 |                                                                        |   |   |
| Microsource                        |                                 |                                                   |                                 |                                                                        |   |   |
| Commercial                         |  $    1,861 |  $    1,609                   |  $    1,738 |                                                                        |  16% |  (7%) |
| Government / Defense               |     5,195        |     4,129                          |     2,047        |                                                                        | 26% |   102% |
| Total                              | $    7,056       |     $    5,738 | $    3,785       |                                                                        |        23% |     52% |

----

| Cost of Sales          |   |   |   |   |   |   |   |   |   |   |                    % change |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|
|                   |   |   |   |   |   |   |   |   |   |   | 2010                                                                                                                  |   |   | 2009 |   |
|                   |   |   |   |   |   |   |   |   |   |   | vs.                                                                                                                   |   |   | vs. |   |
| (Dollars in thousands) |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2009                                                                                                                  |   |   | 2008 |   |
| Cost of sales          |   | $      | 10,622 |   |   | $      | 9,917  |   |   | $      | 10,583                                                                                                                |   |   |   | 7 | % |   |   | (6 | %) |

| Operating Expenses                  |   |   |   |   |   |   |   |   |   |   |                    % change |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|
|                                |   |   |   |   |   |   |   |   |   |   | 2010                                                                                                                  |   |   | 2009 |   |
|                                |   |   |   |   |   |   |   |   |   |   | vs.                                                                                                                   |   |   | vs. |   |
| (Dollars in thousands)              |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2009                                                                                                                  |   |   | 2008 |   |
| Engineering                         |   | $      | 1,522  |   |   | $      | 1,975  |   |   | $      | 2,248                                                                                                                 |   |   |   | (23 | %) |   |   | (12 | %) |
| Selling, general and administrative |   |   | 5,595  |   |   |   | 5,939  |   |   |   | 5,538                                                                                                                 |   |   |   | (6 | %) |   |   | 7 | % |
| Restructuring                       |   |   | ---    |   |   |   | ---    |   |   |   | 153                                                                                                                   |   |   |   | 0 | % |   |   | (100 | %) |
| Total                               |   | $      | 7,117  |   |   | $      | 7,914  |   |   | $      | 7,939                                                                                                                 |   |   |   | (10 | %) |   |   | 0 | % |

----

| Net Inventories         |   |   |   |   |   |   |   | % change |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                    |   |   |   |   |   |   |   | 2010     |   |
|                    |   |   |   |   |   |   |   | vs.      |   |
| (Dollars in thousands)  |   | 2010   |   |   | 2009   |   |   | 2009     |   |
| Raw materials           |   | $      | 3,337  |   |   | $      | 3,263  |     |   |   | 2 | % |
| Work-in-progress        |   |   | 1,930  |   |   |   | 1,127  |     |   |   | 71 | % |
| Finished goods          |   |   | 128    |   |   |   | 559    |     |   |   | (77 | %) |
| Demonstration inventory |   |   | 408    |   |   |   | 460    |     |   |   | (11 | %) |
| Total                   |   | $      | 5,803  |   |   | $      | 5,409  |     |   |   | 7 | % |

----

| (Dollars in thousands) |   | Under one year |   |   | One to three years |   |   | Three to five years |   |   | More than five years |   |
|------------------------|--------|----------------|--------|--------|--------------------|--------|--------|---------------------|--------|--------|----------------------|--------|
| Facility leases        |   | $              | 652    |   |               | $      | 1,978  |                |   | $      | 1,350                |   |   | $ | 1,200 |   |
| Capital leases         |   |           | 59     |   |               |   | 34     |                |   |   | ---                  |   |   |   | --- |   |
| Purchase obligations   |   |           | 860    |   |               |   | 112    |                |   |   | ---                  |   |   |   | --- |   |
| Total                  |   | $              | 1,571  |   |               | $      | 2,128  |                |   | $      | 1,350                |   |   | $ | 1,200 |   |

----

----

| Index  To Financial Statements And Schedules  |
|---------------------------------------------------------|
|                                                    |   |   |
| Financial Statements                                    |   | Page No. |
|                                                    |   |   |
| Consolidated Balance Sheets -                           | 22 |
|                                                    | As of March 27, 2010 and March 28, 2009 |   |
|                                                    |   |   |
| Consolidated Statements of Operations -                 | 23 |
|                                                    | Years ended March 27, 2010 and March 28, 2009 |   |
|                                                    |   |   |
| Consolidated Statements of Shareholders’ Equity - | 24 |
|                                                    | Years ended March 27, 2010 and March 28, 2009 |   |
|                                                    |   |   |
| Consolidated Statements of Cash Flows -                 | 25 |
|                                                    | Years ended March 27, 2010 and March 28, 2009 |   |
|                                                    |   |   |
| Notes to Consolidated Financial Statements              | 26 - 35 |
|                                                    |   |   |
| Report of Independent Registered Public Accounting Firm | 36 |

----

| CONSOLIDATED BALANCE SHEETS                                                                                                        |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                               |   |   |   |   |   |   |
|  (In thousands except share data)                                                                                             |   | March 27, 2010 |   |   | March 28, 2009 |   |
| Assets                                                                                                                             |   |   |   |   |   |   |
| Current Assets                                                                                                                     |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                          |   | $ | 3,074 |   |   | $ | 1,518 |   |
| Trade accounts receivable, net of allowance                                                                                        |   |   |   |   |   |   |   |   |
|        of $95 and $102, respectively                                                            |   |   | 4,332 |   |   |   | 3,110 |   |
| Inventories, net                                                                                                                   |   |   | 5,803 |   |   |   | 5,409 |   |
| Prepaid expenses and other current assets                                                                                          |   |   | 383 |   |   |   | 430 |   |
| Total current assets                                                                                                               |   |   | 13,592 |   |   |   | 10,467 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |
| Property and equipment                                                                                                             |   |   |   |   |   |   |   |   |
| Leasehold improvements                                                                                                             |   |   | 315 |   |   |   | 373 |   |
| Machinery and equipment                                                                                                            |   |   | 15,590 |   |   |   | 15,462 |   |
| Office furniture and fixtures                                                                                                      |   |   | 786 |   |   |   | 788 |   |
|               Total property and equipment                   |   |   | 16,691 |   |   |   | 16,623 |   |
|               Less accumulated depreciation and amortization |   |   | 16,380 |   |   |   | 16,317 |   |
| Property and equipment, net                                                                                                        |   |   | 311 |   |   |   | 306 |   |
| Other assets                                                                                                                       |   |   | 16 |   |   |   | 16 |   |
| Total assets                                                                                                                       |   | $ | 13,919 |   |   | $ | 10,789 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |
| Liabilities and shareholders' equity                                                                                               |   |   |   |   |   |   |   |   |
| Current liabilities                                                                                                                |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                   |   | $ | 881 |   |   | $ | 1,219 |   |
| Accrued commission                                                                                                                 |   |   | 227 |   |   |   | 144 |   |
| Accrued payroll and benefits                                                                                                       |   |   | 698 |   |   |   | 397 |   |
| Accrued warranty                                                                                                                   |   |   | 139 |   |   |   | 177 |   |
| Deferred revenue                                                                                                                   |   |   | 2,682 |   |   |   | 959 |   |
| Deferred rent                                                                                                                      |   |   | --- |   |   |   | 118 |   |
| Capital lease obligations                                                                                                          |   |   | 57 |   |   |   | 16 |   |
| Other current liabilities                                                                                                          |   |   | 225 |   |   |   | 306 |   |
| Total current liabilities                                                                                                          |   |   | 4,909 |   |   |   | 3,336 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |
| Long term obligation - Deferred rent                                                                                               |   |   | 31 |   |   |   | 96 |   |
| Long term obligation - Capital lease                                                                                               |   |   | 36 |   |   |   | 25 |   |
| Total liabilities                                                                                                                  |   |   | 4,976 |   |   |   | 3,457 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                      |   |   | --- |   |   |   | --- |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |
| Shareholders' equity                                                                                                               |   |   |   |   |   |   |   |   |
| Preferred stock of no par value;  Authorized 1,000,000 shares; no shares                                                 |   |   |   |   |   |   |   |   |
| outstanding at March 27, 2010 and March 28, 2009                                                                                   |   |   | --- |   |   |   | --- |   |
| Common stock of no par value;  Authorized 40,000,000 shares; 4,891,394                                                   |   |   |   |   |   |   |   |   |
| shares at March 27, 2010 and 4,824,021 at March 28, 2009 issuedand outstanding                                                     |   |   | 13,979 |   |   |   | 13,668 |   |
| Accumulated deficit                                                                                                                |   |   | (5,036 | ) |   |   | (6,336 | ) |
| Total shareholders' equity                                                                                                         |   |   | 8,943 |   |   |   | 7,332 |   |
| Total liabilities and shareholders' equity                                                                                         |   | $ | 13,919 |   |   | $ | 10,789 |   |
|                                                                                                                               |   |   |   |   |   |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements                                                                        |   |

----

| CONSOLIDATED STATEMENTS OF OPERATIONS                        |   |
|--------------------------------------------------------------|--------|
|                                                         |   |   |   |   |   |   |
|                                                         |   | Years Ended |   |
| (In thousands except per share data)                         |   | March 27, 2010 |   |   | March 28, 2009 |   |
| Net sales                                                    |   | $ | 19,057 |   |   | $ | 17,421 |   |
| Cost of sales                                                |   |   | 10,622 |   |   |   | 9,917 |   |
| Gross profit                                                 |   |   | 8,435 |   |   |   | 7,504 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Engineering                                                  |   |   | 1,522 |   |   |   | 1,975 |   |
| Selling, general and administrative                          |   |   | 5,595 |   |   |   | 5,939 |   |
| Total operating expenses                                     |   |   | 7,117 |   |   |   | 7,914 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Operating income (loss) from continuing operations           |   |   | 1,318 |   |   |   | (410 | ) |
|                                                         |   |   |   |   |   |   |   |   |
| Interest (expense) income, net                               |   |   | (16 | ) |   |   | 7 |   |
| Income (loss) from continuing operations before income taxes |   |   | 1,302 |   |   |   | (403 | ) |
| Provision for income taxes                                   |   |   | 2 |   |   |   | 2 |   |
| Income (loss) from continuing operations                     |   |   | 1,300 |   |   |   | (405 | ) |
| Income on discontinued operations, net of income             |   |   |   |   |   |   |   |   |
| taxes of nil for 2010 and 2009                               |   |   | --- |   |   |   | 75 |   |
| Net income (loss)                                            |   | $ | 1,300 |   |   | $ | (330 | ) |
|                                                         |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share:                             |   |   |   |   |   |   |   |   |
| From continuing operations                                   |   | $ | 0.27 |   |   | $ | (0.08 | ) |
| On discontinued operations                                   |   |   | --- |   |   |   | 0.01 |   |
| Net earnings (loss) per share - basic                        |   | $ | 0.27 |   |   | $ | (0.07 | ) |
|                                                         |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:                           |   |   |   |   |   |   |   |   |
| From continuing operations                                   |   | $ | 0.26 |   |   | $ | (0.08 | ) |
| On discontinued operations                                   |   |   | --- |   |   |   | 0.01 |   |
| Net earnings (loss) per share - diluted                      |   | $ | 0.26 |   |   | $ | (0.07 | ) |
|                                                         |   |   |   |   |   |   |   |   |
| Shares used in per share calculation:                        |   |   |   |   |   |   |   |   |
| Basic                                                        |   |   | 4,846 |   |   |   | 4,824 |   |
| Diluted                                                      |   |   | 4,907 |   |   |   | 4,824 |   |
|                                                         |   |   |   |   |   |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements  |   |

----

| CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY             |   |
|-------------------------------------------------------------|--------|
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   | Accumulated |   |   |   |   |
|  (In thousands except share data)                      |   | Shares |   |   | Amount |   |   | Deficit |   |   | Total |   |
| Balance at March 29, 2008                                   |   |   | 4,824,021 |   |   |   | 13,398 |   |   |   | (6,006 | ) |   |   | 7,392 |   |
| Net loss                                                    |   |   |   |   |   |   |   |   |   |   | (330 | ) |   |   | (330 | ) |
| Share based compensation                                    |   |   | --- |   |   |   | 270 |   |   |   | --- |   |   |   |   270 |   |
| Stock issuance under stock option plans                     |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Balance at March 28, 2009                                   |   |   | 4,824,021 |   |   |   | 13,668 |   |   |   | (6,336 | ) |   |   | 7,332 |   |
| Net income                                                  |   |   |   |   |   |   |   |   |   |   | 1,300 |   |   |   | 1,300 |   |
| Share based compensation                                    |   |   | --- |   |   |   | 187 |   |   |   | --- |   |   |   | 187 |   |
| Stock issuance under stock option plans                     |   |   | 67,373 |   |   |   | 124 |   |   |   | --- |   |   |   | 124 |   |
| Balance at March 27, 2010                                   |   |   | 4,891,394 |   |   | $ | 13,979 |   |   | $ | (5,036 | ) |   | $ | 8,943 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements |   |

----

| CONSOLIDATED STATEMENTS OF CASH FLOWS                       |   |
|-------------------------------------------------------------|--------|
|                                                        |   |   |   |   |   |   |
|                                                        |   | Years Ended |   |
|  (In thousands)                                        |   | March 27, 2010 |   |   | March 28, 2009 |   |
| Cash flows from operations:                                 |   |   |   |   |   |   |
| Net income (loss)                                           |   | $ | 1,300 |   |   | $ | (330 | ) |
| Adjustments to reconcile net loss to net cash               |   |   |   |   |   |   |   |   |
| provided by (used in) operations:                           |   |   |   |   |   |   |   |   |
| Net provision for doubtful accounts                         |   |   | 7 |   |   |   | 9 |   |
| Depreciation and amortization                               |   |   | 146 |   |   |   | 162 |   |
| Loss on sale of fixed asset                                 |   |   | 1 |   |   |   | --- |   |
| Share based compensation                                    |   |   | 187 |   |   |   | 270 |   |
| Deferred rent                                               |   |   | (183 | ) |   |   | (343 | ) |
| Changes in operating assets and liabilities:                |   |   |   |   |   |   |   |   |
| Trade accounts receivable                                   |   |   | (1,229 | ) |   |   | (426 | ) |
| Inventories                                                 |   |   | (394 | ) |   |   | (401 | ) |
| Prepaid expenses and other assets                           |   |   | 47 |   |   |   | (47 | ) |
| Accounts payable                                            |   |   | (338 | ) |   |   | 570 |   |
| Accrued commissions                                         |   |   | 83 |   |   |   | (37 | ) |
| Accrued payroll and benefits                                |   |   | 301 |   |   |   | (129 | ) |
| Accrued warranty                                            |   |   | (38 | ) |   |   | (13 | ) |
| Deferred revenue                                            |   |   | 1,723 |   |   |   | 313 |   |
| Other current liabilities                                   |   |   | (81 | ) |   |   | 102 |   |
| Net cash provided by (used in) operations                   |   |   | 1,532 |   |   |   | (300 | ) |
|                                                        |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                       |   |   |   |   |   |   |   |   |
| Proceeds from sales of equipment                            |   |   | --- |   |   |   | 1 |   |
| Purchases of property and equipment                         |   |   | (152 | ) |   |   | (69 | ) |
| Net cash used in investing activities                       |   |   | (152 | ) |   |   | (68 | ) |
|                                                        |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                       |   |   |   |   |   |   |   |   |
| Proceeds from capital lease                                 |   |   | 52 |   |   |   | 41 |   |
| Issuance of common stock                                    |   |   | 124 |   |   |   | --- |   |
| Net cash provided by financing activities                   |   |   | 176 |   |   |   | 41 |   |
|                                                        |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents            |   |   | 1,556 |   |   |   | (327 | ) |
|                                                        |   |   |   |   |   |   |   |   |
| Beginning cash and cash equivalents                         |   |   | 1,518 |   |   |   | 1,845 |   |
| Ending cash and cash equivalents                            |   | $ | 3,074 |   |   | $ | 1,518 |   |
|                                                        |   |   |   |   |   |   |   |   |
| Supplementary disclosure of cash flow information:          |   |   |   |   |   |   |   |   |
| Cash paid for income taxes                                  |   | $ | 4 |   |   | $ | 2 |   |
| Cash paid for interest                                      |   |   | 21 |   |   |   | --- |   |
|                                                        |   |   |   |   |   |   |   |   |
| See Accompanying Notes to Consolidated Financial Statements |   |

----

| (Dollars in thousands)          |   | March 27, 2010 |   |   | March 28, 2009 |   |
|---------------------------------|--------|----------------|--------|--------|----------------|--------|
| Beginning balance               |   | $              | 102    |   |           | $      | 93 |   |
| Provision for doubtful accounts |   |           | 7      |   |           |   | 9 |   |
| Recoveries of doubtful accounts |   |           | ---    |   |           |   | --- |   |
| Write-off of doubtful accounts  |   |           | (14    | )      |           |   | --- |   |
| Ending balance                  |   | $              | 95     |   |           | $      | 102 |   |

----

----

| Years Ended             |   | March 27, 2010 |   |   | March 28, 2009 |   |
|-------------------------|--------|----------------|--------|--------|----------------|--------|
| Dividend yield          |   | Zero           |   |   | Zero           |   |
| Expected volatility     |   |           | 96     | %      |           |   | 90 | % |
| Risk-free interest rate |   |           | 1.49   | %      |           |   | 2.67 | % |
| Expected term (years)   |   |           | 3.75   |   |           |   |   3.86 |   |

----

| (Dollars in thousands)  |   | March 27, 2010 |   |   | March 28, 2009 |   |
|-------------------------|--------|----------------|--------|--------|----------------|--------|
| Raw materials           |   | $              | 3,337  |   |           | $      | 3,263 |   |
| Work-in-progress        |   |           | 1,930  |   |           |   | 1,127 |   |
| Finished goods          |   |           | 128    |   |           |   | 559 |   |
| Demonstration inventory |   |           | 408    |   |           |   | 460 |   |
| Total                   |   | $              | 5,803  |   |           | $      | 5,409 |   |

----

| March 27, 2010  (Dollars in thousands) |   | Giga-tronics Division |   |   | Microsource |   |   | Total  |   |
|--------------------------------------------------|--------|-----------------------|--------|--------|-------------|--------|--------|--------|--------|
| Revenue                                          |   | $                     | 12,001 |   |        | $      | 7,056  |   |   | $ | 19,057 |   |
| Interest (expense) income, net                   |   |                  | (18    | )      |        |   | 2      |   |   |   | (16 | ) |
| Depreciation and amortization                    |   |                  | 117    |   |        |   | 29     |   |   |   | 146 |   |
| (Loss) income from continuing operations         |   |                  |   |   |        |   |   |   |   |   |   |   |
| before income taxes                              |   |                  | (30    | )      |        |   | 1,332  |   |   |   | 1,302 |   |
| Assets                                           |   |                  | 7,083  |   |        |   | 6,836  |   |   |   | 13,919 |   |
|                                             |   |                  |   |   |        |   |   |   |   |   |   |   |
|                                             |   |                  |   |   |        |   |   |   |   |   |   |   |
| March 28, 2009  (Dollars in thousands) |   | Giga-tronics Division |   |   | Microsource |   |   | Total  |   |
| Revenue                                          |   | $                     | 11,683 |   |        | $      | 5,738  |   |   | $ | 17,421 |   |
| Interest (expense) income, net                   |   |                  | 7      |   |        |   | ---    |   |   |   | 7 |   |
| Depreciation and amortization                    |   |                  | 137    |   |        |   | 25     |   |   |   | 162 |   |
| (Loss) income from continuing operations         |   |                  |   |   |        |   |   |   |   |   |   |   |
| before income taxes                              |   |                  | (1,451 | )      |        |   | 1,048  |   |   |   | (403 | ) |
| Assets                                           |   |                  | 6,420  |   |        |   | 4,369  |   |   |   | 10,789 |   |

| (Dollars in thousands) |   | March 27, 2010 |   |   | March 28, 2009 |   |
|------------------------|--------|----------------|--------|--------|----------------|--------|
| Americas               |   | $              | 23     |   |           | $      | 236 |   |
| Europe                 |   |           | 2,251  |   |           |   | 1,783 |   |
| Asia                   |   |           | 989    |   |           |   | 1,456 |   |
| Rest of world          |   |           | 702    |   |           |   | 456 |   |
| Total                  |   | $              | 3,965  |   |           | $      | 3,931 |   |

----

| (In thousands except per share data)                            |   | March 27, 2010 |   |   | March 28, 2009 |   |
|-----------------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| Net income (loss)                                               |   | $              | 1,300  |   |           | $      | (330 | ) |
|                                                            |   |           |   |   |           |   |   |   |
| Weighted average:                                               |   |           |   |   |           |   |   |   |
| Common shares outstanding                                       |   |           | 4,846  |   |           |   | 4,824 |   |
| Potential common shares                                         |   |           | 61     |   |           |   | --- |   |
| Common shares assuming dilution                                 |   |           | 4,907  |   |           |   | 4,824 |   |
|                                                            |   |           |   |   |           |   |   |   |
| Net earnings (loss) per share of common stock                   |   | $              | 0.27   |   |           | $      | (0.07 | ) |
| Net earnings (loss) per share of common stock assuming dilution |   | $              | 0.26   |   |           | $      | (0.07 | ) |
| Stock options not included in computation                       |   |           | 568    |   |           |   | 771 |   |

| Years Ended (In thousands)                      |   | March 27, 2010 |   |   | March 28, 2009 |   |
|-------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| Current                                         |   |           |   |   |           |   |
|    Federal                       |   | $              | ---    |   |           | $      | --- |   |
|    State                         |   |           | 2      |   |           |   |   2 |   |
| Total current                                   |   |           | 2      |   |           |   |   2 |   |
|                                            |   |           |   |   |           |   |   |   |
| Deferred                                        |   |           |   |   |           |   |   |   |
|    Federal                       |   |           | 442    |   |           |   | 1,127 |   |
|    State                         |   |           | 72     |   |           |   | 585 |   |
| Total deferred                                  |   |           | 514    |   |           |   | 1,712 |   |
|                                            |   |           |   |   |           |   |   |   |
| Change in liability for uncertain tax positions |   |           | (70    | )      |           |   | (107 | ) |
| Change in valuation allowance                   |   |           | (444   | )      |           |   | (1,605 | ) |
| Provision for income taxes                      |   | $              | 2      |   |           | $      | 2 |   |

----

| Year Ended (In thousands)                       |   | March 27, 2010 |    |   | March 28, 2009 |   |
|-------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
| Net operating loss carryforwards                |   | $              | 12,059  |   |           | $      | 12,039 |   |
| Income tax credits                              |   |           | 2,202   |   |           |   | 2,075 |   |
| Inventory reserves and capitalized costs        |   |           | 1,688   |   |           |   | 2,175 |   |
| Fixed assets                                    |   |           | 122     |   |           |   | 145 |   |
| Accrued vacation                                |   |           | 114     |   |           |   | 103 |   |
| Accrued warranty                                |   |           | 55      |   |           |   | 71 |   |
| Deferred rent                                   |   |           | ---     |   |           |   | 69 |   |
| Other accrued expenses                          |   |           | ---     |   |           |   | 17 |   |
| Non-qualified stock options                     |   |           | 14      |   |           |   | --- |   |
| Allowance for doubtful accounts                 |   |           | 38      |   |           |   | 42 |   |
| State taxes benefit                             |   |           | 2       |   |           |   | 2 |   |
| Total deferred taxes before valuation allowance |   |           | 16,294  |   |           |   | 16,738 |   |
|                                            |   |           |    |   |           |   |   |   |
| Valuation allowance                             |   |           | (16,294 | )      |           |   | (16,738 | ) |
| Net deferred tax assets                         |   |           | ---     |   |           |   | --- |   |
|                                            |   |           |    |   |           |   |   |   |
| Current portion                                 |   |           | 1,897   |   |           |   | 2,479 |   |
| Noncurrent portion                              |   |           | 14,397  |   |           |   | 14,259 |   |
| Total                                           |   |           | 16,294  |   |           |   | 16,738 |   |
| Valuation allowance                             |   |           | (16,294 | )      |           |   | (16,738 | ) |
| Net deferred tax assets                         |   | $              | ---     |   |           | $      | --- |   |

| Years Ended (In thousands except percentages) |   | March 27, 2010  |   |        March 28, 2009 |   |
|-----------------------------------------------|--------|----------------------|--------|-----------------------------------------------------|--------|
| Statutory federal income tax (benefit)        |   | $                    | 443    |                                                |   |   | 34.0 | % |   | $ | (112 | ) |   |   | 34.0 | % |
| Valuation allowance                           |   |                 | (444   | )                                                   |   |   | (30.2 | ) |   |   | (1,605 | ) |   |   | 489.4 |   |
| Expiration of net operating losses            |   |                 | ---    |                                                |   |   | --- |   |   |   | 1,758 |   |   |   | (536.0 | ) |
| State income tax, net of federal benefit      |   |                 | 76     |                                                |   |   | 5.8 |   |   |   | (19 | ) |   |   | 5.8 |   |
| Non tax-deductible expenses                   |   |                 | 52     |                                                |   |   | 4.0 |   |   |   | 82 |   |   |   | (25.0 | ) |
| Tax credits                                   |   |                 | (54    | )                                                   |   |   | (4.1 | ) |   |   | --- |   |   |   | --- |   |
| Liability for uncertain tax positions         |   |                 | (70    | )                                                   |   |   | (9.2 | ) |   |   | (107 | ) |   |   | 32.6 |   |
| Other                                         |   |                 | (1     | )                                                   |   |   | (0.1 | ) |   |   | 5 |   |   |   | (1.5 | ) |
| Effective income tax                          |   | $                    | 2      |                                                |   |   | 0.2 | % |   | $ | 2 |   |   |   | (0.7 | %) |

----

| (In thousands)                                                           |   | Fiscal Year 2010 |           |   | Fiscal Year 2009 |   |
|--------------------------------------------------------------------------|--------|------------------|----------------|--------|------------------|--------|
| Balance as of March 28, 2009                                             |   | $                | 190,000        |   |             | $      | 297,000 |   |
| Additions based on current year tax positions                            |   |             | 100,000        |   |             |   | 70,000 |   |
| Reductions for prior year tax positions and lapses of applicable statute |   |             | (170,000       | )      |             |   | (177,000 | ) |
| Balance as of March 27, 2010                                             |   | $                |   120,000 |   |             | $      |   190,000 |   |

|                          |   |   |    |   | Weighted       |   |       | Weighted Average      |   |   | Average   |   |
|-------------------------------|--------|--------|---------|--------|----------------|--------|------------|-----------------------|--------|--------|-----------|--------|
|                          |   |   |    |   | Average        |   |       | Remaining Contractual |   |   | Intrinsic |   |
|                          |   | Shares |    |   | Exercise Price |   |       | Terms (Years)         |   |   | Value     |   |
| Outstanding at March 29, 2008 |   |   | 851,650 |   |           | $      |  2.04 |                  |   |   | 3.1       |   |   | $ | --- |   |
| Granted                       |   |   | 146,500 |   |           |   | 1.17       |                  |   |   |      |   |   |   |   |   |
| Exercised                     |   |   | ---     |   |           |   | ---        |                  |   |   |      |   |   |   |   |   |
| Forfeited / Expired           |   |   | 227,250 |   |           |   | 1.96       |                  |   |   |      |   |   |   |   |   |
| Outstanding at March 28, 2009 |   |   | 770,900 |   |           | $      | 1.90       |                  |   |   | 2.7       |   |   | $ | --- |   |
| Granted                       |   |   | 320,500 |   |           |   | 2.07       |                  |   |   |      |   |   |   |   |   |
| Exercised                     |   |   | 67,373  |   |           |   | 1.85       |                  |   |   |      |   |   |   |   |   |
| Forfeited / Expired           |   |   | 133,000 |   |           |   | 2.46       |                  |   |   |      |   |   |   |   |   |
| Outstanding at March 27, 2010 |   |   | 891,027 |   |           | $      | 1.88       |                  |   |   | 3.0       |   |   | $ | --- |   |
|                          |   |   |    |   |           |   |       |                  |   |   |      |   |   |   |   |   |
| Exercisable at March 27, 2010 |   |   | 336,928 |   |           | $      | 1.87       |                  |   |   | 1.8       |   |   | $ | --- |   |

----

|                          |   | Options     |    |   | Options     |   |     | Weighted Average |   |
|-------------------------------|--------|-------------|---------|--------|-------------|--------|----------|------------------|--------|
|                          |   | Exercisable |    |   | Outstanding |   |     | Fair Value       |   |
| Outstanding at March 29, 2008 |   |        | 338,726 |   |        |   | 851,650  |             |   | $ | 2.04 |   |
| Exercised                     |   |        |    |   |        |   | ---      |             |   |   | --- |   |
| Forfeited                     |   |        |    |   |        |   | (227,250 | )                |   |   | 1.96 |   |
| Granted                       |   |        |    |   |        |   | 146,500  |             |   |   | 1.17 |   |
| Outstanding at March 28, 2009 |   |        | 369,577 |   |        |   | 770,900  |             |   | $ | 1.90 |   |
| Exercised                     |   |        |    |   |        |   | (67,373  | )                |   |   | 1.85 |   |
| Forfeited                     |   |        |    |   |        |   | (133,000 | )                |   |   | 2.46 |   |
| Granted                       |   |        |    |   |        |   | 320,500  |             |   |   | 2.07 |   |
| Outstanding at March 27, 2010 |   |        | 336,928 |   |        |   | 891,027  |             |   | $ | 1.88 |   |

| Fiscal year  (Dollars in thousands) |   |   |   |
|-----------------------------------------------|--------|--------|--------|
| 2011                                          |   | $      | 652    |   |
| 2012                                          |   |   | 978    |   |
| 2013                                          |   |   | 1,000  |   |
| 2014                                          |   |   | 696    |   |
| 2015                                          |   |   | 654    |   |
| Thereafter                                    |   |   | 1,200  |   |
| Total                                         |   | $      | 5,180  |   |

----

| (Dollars in thousands)         |   | March 27, 2010 |   |   | March 28, 2009 |   |
|--------------------------------|--------|----------------|--------|--------|----------------|--------|
| Balance at beginning of period |   | $              | 177    |   |           | $      | 190 |   |
| Provision, net                 |   |           | 84     |   |           |   | 179 |   |
| Warranty costs incurred        |   |           | (122   | )      |           |   | (192 | ) |
| Balance at end of period       |   | $              | 139    |   |           | $      | 177 |   |

----

----

| ·   | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) The following consolidated financial statements of Giga-tronics Incorporated and subsidiaries and the related independent registered public accounting firm are filed herewith: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.     | Financial Statements.  See Index to Financial Statements on page 21.  The financial statements and Report of Independent Registered Public Accounting Firm are included in Item 8 are filed as part of this report. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.     | Exhibits.  The exhibit list required by this item is incorporated by reference to the Exhibit Index filed with this report.                                                                                                   |
|   |                                                                                                                                                                                                                                    |

----

|   | GIGA-TRONICS INCORPORATED |
|--------|---------------------------|
|   |                      |
|   | /s/ JOHN R. REGAZZI       |
|   | Chief Executive Officer   |

| /s/ GARRETT A. GARRETTSON |   | Chairman of the Board                   |   | 5/24/2010 |
|---------------------------|--------|-----------------------------------------|--------|-----------|
| Garrett A. Garrettson     |   | of Directors                            |   | Date      |
|                      |   |                                    |   |      |
|                      |   |                                    |   |      |
| /s/ JOHN R. REGAZZI       |   | Chief Executive Officer                 |   | 5/25/2010 |
| John R. Regazzi           |   | (Principal Executive Officer)           |   | Date      |
|                      |   | and Director                            |   |      |
|                      |   |                                    |   |      |
| /s/ PATRICK J. LAWLOR     |   | Vice President, Finance/                |   | 5/25/2010 |
| Patrick J. Lawlor         |   | Chief Financial Officer & Secretary |   | Date      |
|                      |   | (Principal Financial Officer)           |   |      |
|                      |   |                                    |   |      |
| /s/ GEORGE H. BRUNS, JR.  |   | Director                                |   | 5/25/2010 |
| George H. Bruns, Jr.      |   |                                    |   | Date      |
|                      |   |                                    |   |      |
|                      |   |                                    |   |      |
| /s/ JAMES A. COLE         |   | Director                                |   | 5/24/2010 |
| James A. Cole             |   |                                    |   | Date      |
|                      |   |                                    |   |      |
|                      |   |                                    |   |      |
| /s/ KENNETH A. HARVEY     |   | Director                                |   | 5/25/2010 |
| Kenneth A. Harvey         |   |                                    |   | Date      |
|                      |   |                                    |   |      |
|                      |   |                                    |   |      |
| /s/ ROBERT C. WILSON      |   | Director                                |   | 5/24/2010 |
| Robert C. Wilson          |   |                                    |   | Date      |

----

| Index To Exhibits |
|-------------------|
|              |   |   |
|   3.1   |   | Articles of Incorporation of the Registrant, as amended, previously filed as Exhibit 3.1 to Form 10-KSB for the fiscal year ended March 27, 1999 and incorporated herein by reference. |
|              |   |   |
|   3.2   |   | Amended and Restated Bylaws of Giga-tronics Incorporated, as amended on March 7, 2008, previously filed as Exhibit 3.2 to Form 10-K for the fiscal year ended March 29, 2008, and incorporated herein by reference. |
|              |   |   |
| 10.1              |   | Standard form Indemnification Agreement for Directors and Officers. (See page 41 of this Annual Report on Form 10-K.) |
|              |   |   |
| 10.2              |   | First Amendment to Office Lease Agreement between Giga-tronics Incorporated and VIF/ZKS Norris Tech Center, LLC, for 4650 Norris Canyon Road, San Ramon, CA, dated March 29, 2010. (See page 46 of this Annual Report on Form 10-K.) |
|              |   |   |
| 10.3              |   | 2000 Stock Option Plan and form of Incentive Stock Option Agreement, previously filed on September 8, 2000 as Exhibit 99.1 to Form S-8 (33-45476) and incorporated herein by reference. * |
|              |   |   |
| 10.4              |   | 2005 Equity Incentive Plan incorporated herein by reference to Attachment A of the Registrant’s Proxy Statement filed July 21, 2005. * |
|              |   |   |
| 21                |   | Significant Subsidiaries.  (See page 55 of this Annual Report on Form 10-K.) |
|              |   |   |
| 23.1              |   | Consent of Independent Registered Public Accounting Firm, Perry-Smith LLP.  (See page 56 of this Annual Report on Form 10-K.) |
|              |   |   |
| 31.1              |   | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.  (See page 57 of this Annual Report on Form 10-K.) |
|              |   |   |
| 31.2              |   | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.  (See page 58 of this Annual Report on Form 10-K.) |
|              |   |   |
| 32.1              |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (See page 59 of this Annual Report on Form 10-K.) |
|              |   |   |
| 32.2              |   | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (See page 60 of this Annual Report on Form 10-K.) |
|              |   |   |
|              |   |   |
|              | * | Management contract or compensatory plan or arrangement. |

----

----

----