| [ X ]  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF  1934 |
|--------|-------------------------------------------------------------------------------------------------|
|   | For the fiscal year ended March 26, 2011                                                   |

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

| [    ] | 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)                           |

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

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| 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 2011 Annual Meeting of Shareholders to be filed no later than 120 days after the close of the fiscal year ended March 26, 2011. |

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|   | EXPLANATORY NOTE |  3                                                                                    |
|--------|------------------|--------------------------------------------------------------------------------------------|
|   |             |                                                                                       |   |
|   | PART II          |                                                                                       |   |
|   |             |                                                                                       |   |
|   | Item 6.          | Selected Financial Data                                                                    | 5 |
|   | Item 7.          | Management’s Discussion and Analysis Of Financial Condition and Results Of Operation | 8 |
|   |             |                                                                                       |   |
|   | Item 8.          | Financial Statements and Supplementary Data                                                | 14 |
|   |             |                                                                                       | Consolidated Balance Sheets as of March 26, 2011 and March 27, 2010 | 15 |
|   |             |                                                                                       | Consolidated Statements of Income for the years ended March 26, 2011 and March 27, 2010 | 16 |
|   |             |                                                                                       | Consolidated Statements of Shareholders’ Equity for the years ended March 26, 2011 and March 27, 2010 | 17 |
|   |             |                                                                                       | Consolidated Statements of Cash Flows for the years ended March 26, 2011 and March 27, 2010 | 18 |
|   |             |                                                                                       | Notes to Consolidated Financial Statements | 19 |
|   |             |                                                                                       | Report of Independent Registered Public Accounting Firm | 30 |
|   |             |                                                                                       |   |
|   | Item 9A.         | Controls and Procedures                                                                    | 31 |

| PART IV       |   |   |
|---------------|--------|--------|
|          |   |   |
| SIGNATURES    |   | 34     |
| Exhibit Index |   | 35     |
|          |   |   |

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| Summary of Operations:                                        |   | Years Ended               |   |
|---------------------------------------------------------------|--------|---------------------------|--------|
| (In thousands except per share data)                          |   | As restatedMarch 26, 2011 |   |   | March 27, 2010 |   |   | March 28, 2009 |   |   | March 29, 2008 |   |   | March 31, 2007 |   |
| Net sales                                                     |   | $                         | 21,029 |   |   | $ | 19,057 |   |   | $ | 17,421 |   |   | $ | 18,331 |   |   | $ | 18,048 |   |
| Gross profit                                                  |   |                      | 8,929  |   |   |   | 8,435 |   |   |   | 7,504 |   |   |   | 7,748 |   |   |   | 7,546 |   |
| Operating expenses                                            |   |                      | 8,086  |   |   |   | 7,117 |   |   |   | 7,914 |   |   |   | 7,939 |   |   |   | 9,548 |   |
| Interest income (expense), net                                |   |                      | 4      |   |   |   | (16 | ) |   |   | 7 |   |   |   | 36 |   |   |   | 108 |   |
| Pre-tax income (loss) from continuing operations              |   |                      | 847    |   |   |   | 1,302 |   |   |   | (403 | ) |   |   | (201 | ) |   |   | (1,894 | ) |
| Provision for income taxes                                    |   |                      | 31     |   |   |   | 2 |   |   |   | 2 |   |   |   | 2 |   |   |   | 1 |   |
| Income (loss) from continuing operations                      |   |                      | 816    |   |   |   | 1,300 |   |   |   | (405 | ) |   |   | (203 | ) |   |   | (1,895 | ) |
| Income (loss) on discontinued operations, net of income taxes |   |                      | -      |   |   |   | - |   |   |   | 75 |   |   |   | (31 | ) |   |   | 28 |   |
| Net income (loss)                                             |   | $                         | 816    |   |   | $ | 1,300 |   |   | $ | (330 | ) |   | $ | (234 | ) |   | $ | (1,867 | ) |
|                                                          |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share:                              |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From continuing operations                                    |   | $                         | 0.17   |   |   | $ | 0.27 |   |   | $ | (0.08 | ) |   | $ | (0.04 | ) |   | $ | (0.40 | ) |
| On discontinued operations                                    |   |                      | -      |   |   |   | - |   |   |   | 0.01 |   |   |   | (0.01 | ) |   |   | 0.01 |   |
| Net earnings (loss) per share - basic                         |   | $                         | 0.17   |   |   | $ | 0.27 |   |   | $ | (0.07 | ) |   | $ | (0.05 | ) |   | $ | (0.39 | ) |
|                                                          |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share:                            |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| From continuing operations                                    |   | $                         | 0.16   |   |   | $ | 0.26 |   |   | $ | (0.08 | ) |   | $ | (0.04 | ) |   | $ | (0.40 | ) |
| On discontinued operations                                    |   |                      | -      |   |   |   | - |   |   |   | 0.01 |   |   |   | (0.01 | ) |   |   | 0.01 |   |
| Net earnings (loss) per share - dilutive                      |   | $                         | 0.16   |   |   | $ | 0.26 |   |   | $ | (0.07 | ) |   | $ | (0.05 | ) |   | $ | (0.39 | ) |
|                                                          |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock - basic                                |   |                      | 4,935  |   |   |   | 4,846 |   |   |   | 4,824 |   |   |   | 4,813 |   |   |   | 4,809 |   |
| Shares of common stock - dilutive                             |   |                      | 5,040  |   |   |   | 4,907 |   |   |   | 4,824 |   |   |   | 4,813 |   |   |   | 4,809 |   |

| Financial Position:                  |   | Years Ended               |   |
|--------------------------------------|--------|---------------------------|--------|
| (In thousands except per share data) |   | As restatedMarch 26, 2011 |   |   | March 27, 2010 |   |   | March 28, 2009 |   |   | March 29, 2008 |   |   | March 31, 2007 |   |
| Current ratio                        |   |                      | 4.75   |   |   |   | 2.77 |   |   |   | 3.14 |   |   |   | 3.68 |   |   |   | 3.09 |   |
| Working Capital                      |   | $                         | 10,142 |   |   | $ | 8,683 |   |   | $ | 7,131 |   |   | $ | 7,231 |   |   | $ | 7,280 |   |
| Total assets                         |   | $                         | 13,392 |   |   | $ | 13,919 |   |   | $ | 10,789 |   |   | $ | 10,361 |   |   | $ | 11,161 |   |
| Shareholders' equity                 |   | $                         | 10,265 |   |   | $ | 8,943 |   |   | $ | 7,332 |   |   | $ | 7,392 |   |   | $ | 7,393 |   |

| Percentage Data:                                              |   | Years Ended               |   |
|---------------------------------------------------------------|--------|---------------------------|--------|
| (Percentage of net sales)                                     |   | As restatedMarch 26, 2011 |   |   | March 27, 2010 |   |   | March 28, 2009 |   |   | March 29, 2008 |   |   | March 31, 2007 |   |
| Gross profit                                                  |   |                      | 42.5   | % |   |   | 44.3 | % |   |   | 43.1 | % |   |   | 42.3 | % |   |   | 41.8 | % |
| Operating expenses                                            |   |                      | 38.5   | % |   |   | 37.3 | % |   |   | 45.4 | % |   |   | 43.3 | % |   |   | 52.9 | % |
| Interest (expense) income, net                                |   |                      | 0.0    | % |   |   | (0.1 | %) |   |   | 0.0 | % |   |   | 0.2 | % |   |   | 0.6 | % |
| Pre-tax income (loss) from continuing operations              |   |                      | 4.0    | % |   |   | 6.8 | % |   |   | (2.3 | %) |   |   | (1.1 | %) |   |   | (10.5 | %) |
| Income (loss) on discontinued operations, net of income taxes |   |                      | 0.0    | % |   |   | 0.0 | % |   |   | 0.4 | % |   |   | (0.2 | %) |   |   | 0.2 | % |
| Net income (loss)                                             |   |                      | 3.9    | % |   |   | 6.8 | % |   |   | (1.9 | %) |   |   | (1.3 | %) |   |   | (10.3 | %) |

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| Quarterly Financial Information (Unaudited)      |   | 2011(As restated) |   |
|--------------------------------------------------|--------|-------------------|--------|
| (In thousands except per share data)             |   | First             |   |   | Second |   |   | Third |   |   | Fourth |   |   | Year |   |
| Net sales                                        |   | $                 | 4,701  |   |   | $ | 4,749 |   |   | $ | 4,640 |   |   | $ | 6,939 |   |   | $ | 21,029 |   |
| Gross profit                                     |   |              | 1,933  |   |   |   | 1,910 |   |   |   | 2,066 |   |   |   | 3,020 |   |   |   | 8,929 |   |
| Operating expenses                               |   |              | 1,876  |   |   |   | 2,086 |   |   |   | 2,052 |   |   |   | 2,072 |   |   |   | 8,086 |   |
| Interest (expense) income, net                   |   |              | (1     | ) |   |   | 1 |   |   |   | 4 |   |   |   | - |   |   |   | 4 |   |
| Pre-tax income (loss) from continuing operations |   |              | 56     |   |   |   | (175 | ) |   |   | 18 |   |   |   | 948 |   |   |   | 847 |   |
| Provision for income taxes                       |   |              | -      |   |   |   | - |   |   |   | - |   |   |   | 31 |   |   |   | 31 |   |
| Net income (loss)                                |   | $                 | 56     |   |   | $ | (175 | ) |   | $ | 18 |   |   | $ | 917 |   |   | $ | 816 |   |
|                                             |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per share - basic            |   | $                 | 0.01   |   |   | $ | (0.04 | ) |   | $ | 0.00 |   |   | $ | 0.18 |   |   | $ | 0.17 |   |
|                                             |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per share - diluted          |   | $                 | 0.01   |   |   | $ | (0.04 | ) |   | $ | 0.00 |   |   | $ | 0.18 |   |   | $ | 0.16 |   |
|                                             |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock - basic                   |   |              | 4,901  |   |   |   | 4,913 |   |   |   | 4,946 |   |   |   | 4,982 |   |   |   | 4,935 |   |
| Shares of common stock - diluted                 |   |              | 5,000  |   |   |   | 4,913 |   |   |   | 5,062 |   |   |   | 5,116 |   |   |   | 5,040 |   |

| 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) income, net              |   |   | (3     | ) |   |   | (6 | ) |   |   | (7 | ) |   |   | - |   |   |   | (16 | ) |
| Pre-tax income from continuing operations   |   |   | 335    |   |   |   | 373 |   |   |   | 309 |   |   |   | 285 |   |   |   | 1,302 |   |
| Provision for income taxes                  |   |   | 2      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
| Net income                                  |   | $      | 333    |   |   | $ | 373 |   |   | $ | 309 |   |   | $ | 285 |   |   | $ | 1,300 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings per share - basic              |   | $      | 0.07   |   |   | $ | 0.08 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.27 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net 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 |   |

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| CONSOLIDATED BALANCE SHEET                 |   |           |   |   |        |   |    |        |   |
|--------------------------------------------|--------|----------------|--------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)                     |   | As of March 26 |   |
|                                       |   |           |   |   | 2011        |   |    |        |   |
|                                       |   |           |   |   |        |   |    |        |   |
|                                       |   | As reported    |   |   | Adjustments |   |    | As restated |   |
|                                       |   |           |   |   |        |   |    |        |   |
| Current deferred income tax                |   | $              | 2,320  |   |        | $      | (2,320  | )           |   | $ | - |   |
| Deferred income tax - long term            |   | $              | 10,936 |   |        | $      | (10,936 | )           |   | $ | - |   |
| Total assets                               |   | $              | 26,648 |   |        | $      | (13,256 | )           |   | $ | 13,392 |   |
|                                       |   |           |   |   |        |   |    |        |   |   |   |   |
| Retained earnings (accumulated deficit)    |   | $              | 9,036  |   |        | $      | (13,256 | )           |   | $ | (4,220 | ) |
| Total shareholders' equity                 |   | $              | 23,521 |   |        | $      | (13,256 | )           |   | $ | 10,265 |   |
| Total liabilities and shareholders' equity |   | $              | 26,648 |   |        | $      | (13,256 | )           |   | $ | 13,392 |   |

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| CONSOLIDATED STATEMENT OF OPERATIONS |   |                            |    |   |        |   |    |        |   |
|--------------------------------------|--------|---------------------------------|---------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)               |   | For the year ended March 262011 |    |
|                                 |   |                            |    |   |        |   |    |        |   |
|                                 |   | As reported                     |    |   | Adjustments |   |    | As restated |   |
| (Benefit) provision for income taxes |   | $                               | (13,225 | )      |        | $      | 13,256  |        |   | $ | 31 |   |
| Net income                           |   | $                               | 14,072  |   |        | $      | (13,256 | )           |   | $ | 816 |   |
|                                 |   |                            |    |   |        |   |    |        |   |   |   |   |
| Earnings per share - basic           |   | $                               | 2.85    |   |        | $      | (2.68   | )           |   | $ | 0.17 |   |
|                                 |   |                            |    |   |        |   |    |        |   |   |   |   |
| Earnings per share - diluted         |   | $                               | 2.79    |   |        | $      | (2.63   | )           |   | $ | 0.16 |   |

| CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY |   |                        |   |   |        |   |    |        |   |
|------------------------------------------------|--------|-----------------------------|--------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)                         |   | For the year ended March 26 |   |
|                                           |   | 2011                        |   |
|                                           |   | As reported                 |   |   | Adjustments |   |    | As restated |   |
|                                           |   |                        |   |   |        |   |    |        |   |
| Net income                                     |   | $                           | 14,072 |   |        | $      | (13,256 | )           |   | $ | 816 |   |
| Accumulated earnings (deficit)                 |   | $                           | 9,036  |   |        | $      | (13,256 | )           |   | $ | (4,220 | ) |
| Total shareholders' equity                     |   | $                           | 23,521 |   |        | $      | (13,256 | )           |   | $ | 10,265 |   |

| CONSOLIDATED STATEMENT OF CASH FLOWS  |   |                        |    |   |        |   |    |        |   |
|---------------------------------------|--------|-----------------------------|---------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)                |   | For the year ended March 26 |    |
|                                  |   | 2011                        |    |
|                                  |   | As reported                 |    |   | Adjustments |   |    | As restated |   |
|                                  |   |                        |    |   |        |   |    |        |   |
| Net income                            |   | $                           | 14,072  |   |        | $      | (13,256 | )           |   | $ | 816 |   |
| Deferred income taxes                 |   | $                           | (13,256 | )      |        | $      | 13,256  |        |   | $ | - |   |
| Net cash used in operating activities |   | $                           | (1,503  | )      |        | $      | -       |        |   | $ | (1,503 | ) |

| New Orders             |   |   |   |   |   |   |   |   |   |   | % change |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                   |   |   |   |   |   |   |   |   |   |   | 2011     |   |   | 2010 |   |
|                   |   |   |   |   |   |   |   |   |   |   | vs.      |   |   | vs. |   |
| (Dollars in thousands) |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2010     |   |   | 2009 |   |
| Giga-tronics Division  |   | $      | 14,603 |   |   | $      | 11,387 |   |   | $      | 11,599   |   |   |   | 28 | % |   |   | (2 | %) |
| Microsource            |   |   | 1,579  |   |   |   | 7,061  |   |   |   | 7,399    |   |   |   | (78 | %) |   |   | (5 | %) |
| Total                  |   | $      | 16,182 |   |   | $      | 18,448 |   |   | $      | 18,998   |   |   |   | (12 | %) |   |   | (3 | %) |

----

| Backlog                                                                                                |   |   |   |   |   |   |   |   |   |   | % change |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                                                                                                   |   |   |   |   |   |   |   |   |   |   | 2011     |   |   | 2010 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   | vs.      |   |   | vs. |   |
| (Dollars in thousands)                                                                                 |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2010     |   |   | 2009 |   |
| Backlog of unfilled orders                                                                             |   | $      | 3,649  |   |   | $      | 8,496  |   |   | $      | 9,105    |   |   |   | (57 | %) |   |   | (7 | %) |
| Backlog of unfilled orders shippable within one year                                                   |   |   | 3,333  |   |   |   | 7,599  |   |   |   | 6,810    |   |   |   | (56 | %) |   |   | 12 | % |
| Previous fiscal year end (FYE) long term backlog reclassified during year as shippable within one year |   |   | 1,123  |   |   |   | 2,414  |   |   |   | 1,382    |   |   |   | (53 | %) |   |   | 75 | % |
| Net cancellations during year of previous FYE one-year backlog                                         |   |   | ---    |   |   |   | ---    |   |   |   | ---      |   |   |   | --- |   |   |   | --- |   |

| Allocation of Net Sales |   |   |   |   |   |   |   |   |   |   | % change |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                    |   |   |   |   |   |   |   |   |   |   | 2011     |   |   | 2010 |   |
|                    |   |   |   |   |   |   |   |   |   |   | vs.      |   |   | vs. |   |
| (Dollars in thousands)  |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2010     |   |   | 2009 |   |
| Commercial              |   | $      | 11,600 |   |   | $      | 6,743  |   |   | $      | 6,303    |   |   |   | 72 | % |   |   | 7 | % |
| Government / Defense    |   |   | 9,429  |   |   |   | 12,314 |   |   |   | 11,118   |   |   |   | (23 | %) |   |   | 11 | % |
| Total                   |   | $      | 21,029 |   |   | $      | 19,057 |   |   | $      | 17,421   |   |   |   | 10 | % |   |   | 9 | % |

| Allocation of Net Sales by Segment |   |   |   |   |   |   |   |   | % change |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                               |   |   |   |   |   |   |   |   |     |   | 2011 |   |   | 2010 |   |
|                               |   |   |   |   |   |   |   |   |     |   | vs. |   |   | vs. |   |
| (Dollars in thousands)             |   | 2011   |   |   | 2010   |   |   | 2009   |     |   | 2010 |   |   | 2009 |   |
| Giga-tronics Division              |   |   |   |   |   |   |   |   |     |   |   |   |   |   |   |
| Commercial                         |   | $      | 10,281 |   |   | $      | 4,882  |   |     | $      | 4,694 |   |   |   | 111 | % |   |   | 4 | % |
| Government / Defense               |   |   | 3,665  |   |   |   | 7,119  |   |     |   | 6,989 |   |   |   | (49 | %) |   |   | 2 | % |
| Total                              |   | $      | 13,946 |   |   | $      | 12,001 |   |     | $      | 11,683 |   |   |   | 16 | % |   |   | 3 | % |
|                               |   |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Microsource                        |   |   |   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                         |   | $      | 1,319  |   |   | $      | 1,861  |   |     | $      | 1,609 |   |   |   | (29 | %) |   |   | 16 | % |
| Government / Defense               |   |   | 5,764  |   |   |   | 5,195  |   |     |   | 4,129 |   |   |   | 11 | % |   |   | 26 | % |
| Total                              |   | $      | 7,083  |   |   | $      | 7,056  |   |     | $      | 5,738 |   |   |   | 0 | % |   |   | 23 | % |

----

| Cost of Sales          |   |   |   |   |   |   |   |   |   |   | % change |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                   |   |   |   |   |   |   |   |   |   |   | 2011     |   |   | 2010 |   |
|                   |   |   |   |   |   |   |   |   |   |   | vs.      |   |   | vs. |   |
| (Dollars in thousands) |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2010     |   |   | 2009 |   |
| Cost of sales          |   | $      | 12,100 |   |   | $      | 10,622 |   |   | $      | 9,917    |   |   |   | 14 | % |   |   | 7 | % |

| Operating Expenses                  |   |   |   |   |   |   |   |   |   |   | % change |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                                |   |   |   |   |   |   |   |   |   |   | 2011     |   |   | 2010 |   |
|                                |   |   |   |   |   |   |   |   |   |   | vs.      |   |   | vs. |   |
| (Dollars in thousands)              |   | 2011   |   |   | 2010   |   |   | 2009   |   |   | 2010     |   |   | 2009 |   |
| Engineering                         |   | $      | 2,159  |   |   | $      | 1,522  |   |   | $      | 1,975    |   |   |   | 42 | % |   |   | (23 | %) |
| Selling, general and administrative |   |   | 5,927  |   |   |   | 5,595  |   |   |   | 5,939    |   |   |   | 6 | % |   |   | (6 | %) |
| Total                               |   | $      | 8,086  |   |   | $      | 7,117  |   |   | $      | 7,914    |   |   |   | 14 | % |   |   | (10 | %) |

----

| Net Inventories         |   |   |   |   |   |   |   | % change |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                    |   |   |   |   |   |   |   | 2011     |   |
|                    |   |   |   |   |   |   |   | vs.      |   |
| (Dollars in thousands)  |   | 2011   |   |   | 2010   |   |   | 2010     |   |
| Raw materials           |   | $      | 3,518  |   |   | $      | 3,337  |     |   |   | 5 | % |
| Work-in-progress        |   |   | 1,349  |   |   |   | 1,930  |     |   |   | (30 | %) |
| Finished goods          |   |   | 134    |   |   |   | 128    |     |   |   | 5 | % |
| Demonstration inventory |   |   | 385    |   |   |   | 408    |     |   |   | (6 | %) |
| Total                   |   | $      | 5,386  |   |   | $      | 5,803  |     |   |   | (7 | %) |

----

----

| Financial Statements                                     |                                                        | Page No. |
|----------------------------------------------------------|-------------------------------------------------------------|----------|
|                                                     |                                                        |     |
| Consolidated Balance Sheets -                            | 15                                                          |
|                                                     | As of March 26, 2011 (as restated) and March 27, 2010       |     |
|                                                     |                                                        |     |
| Consolidated Statements of Income -                      | 16                                                          |
|                                                     | Years ended March 26, 2011 (as restated) and March 27, 2010 |     |
|                                                     |                                                        |     |
| Consolidated Statements of Shareholders’ Equity -  | 17                                                          |
|                                                     | Years ended March 26, 2011 (as restated) and March 27, 2010 |     |
|                                                     |                                                        |     |
| Consolidated Statements of Cash Flows -                  | 18                                                          |
|                                                     | Years ended March 26, 2011 (as restated) and March 27, 2010 |     |
|                                                     |                                                        |     |
| Notes to Consolidated Financial Statements (as restated) | 19 - 29                                                     |
|                                                     |                                                        |     |
| Report of Independent Registered Public Accounting Firm  | 30                                                          |

----

| (In thousands except share data)                                                                                                                      |   | March 26, 2011(as restated, see Note 2) |   |   | March 27, 2010  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|----------------------|--------|
| Assets                                                                                                                                                |   |                                    |   |   |                 |   |
| Current Assets                                                                                                                                        |   |                                    |   |   |                 |   |
| Cash and cash equivalents                                                                                                                             |   | $                                       | 1,408  |   |                 | $      | 3,074 |   |
| Trade accounts receivable, net of allowance of $248 and $95, respectively                                                                             |   |                                    | 5,632  |   |                 |   | 4,332 |   |
| Inventories, net                                                                                                                                      |   |                                    | 5,386  |   |                 |   | 5,803 |   |
| Prepaid expenses and other current assets                                                                                                             |   |                                    | 420    |   |                 |   | 383 |   |
| Total current assets                                                                                                                                  |   |                                    | 12,846 |   |                 |   | 13,592 |   |
|                                                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Property and equipment                                                                                                                                |   |                                    |   |   |                 |   |   |   |
| Leasehold improvements                                                                                                                                |   |                                    | 490    |   |                 |   | 315 |   |
| Machinery and equipment                                                                                                                               |   |                                    | 15,565 |   |                 |   | 15,590 |   |
| Office furniture and fixtures                                                                                                                         |   |                                    | 786    |   |                 |   | 786 |   |
| Total property and equipment                                                                                                                          |   |                                    | 16,841 |   |                 |   | 16,691 |   |
| Less accumulated depreciation and amortization                                                                                                        |   |                                    | 16,311 |   |                 |   | 16,380 |   |
| Property and equipment, net                                                                                                                           |   |                                    | 530    |   |                 |   | 311 |   |
| Other assets                                                                                                                                          |   |                                    | 16     |   |                 |   | 16 |   |
| Total assets                                                                                                                                          |   | $                                       | 13,392 |   |                 | $      | 13,919 |   |
|                                                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Liabilities and shareholders' equity                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Current liabilities                                                                                                                                   |   |                                    |   |   |                 |   |   |   |
| Accounts payable                                                                                                                                      |   | $                                       | 972    |   |                 | $      | 881 |   |
| Accrued commission                                                                                                                                    |   |                                    | 139    |   |                 |   | 227 |   |
| Accrued payroll and benefits                                                                                                                          |   |                                    | 455    |   |                 |   | 698 |   |
| Accrued warranty                                                                                                                                      |   |                                    | 200    |   |                 |   | 139 |   |
| Income taxes payable                                                                                                                                  |   |                                    | 30     |   |                 |   | - |   |
| Deferred revenue                                                                                                                                      |   |                                    | 586    |   |                 |   | 2,682 |   |
| Deferred rent                                                                                                                                         |   |                                    | 36     |   |                 |   | - |   |
| Capital lease obligations                                                                                                                             |   |                                    | 93     |   |                 |   | 57 |   |
| Other current liabilities                                                                                                                             |   |                                    | 193    |   |                 |   | 225 |   |
| Total current liabilities                                                                                                                             |   |                                    | 2,704  |   |                 |   | 4,909 |   |
|                                                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Long term oligation - Deferred rent                                                                                                                   |   |                                    | 413    |   |                 |   | 31 |   |
| Long term oligation - Capital lease                                                                                                                   |   |                                    | 10     |   |                 |   | 36 |   |
| Total liabilities                                                                                                                                     |   |                                    | 3,127  |   |                 |   | 4,976 |   |
|                                                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Commitments and contingencies                                                                                                                         |   |                                    | -      |   |                 |   | - |   |
|                                                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Shareholders' equity                                                                                                                                  |   |                                    |   |   |                 |   |   |   |
| Preferred stock of no par value; Authorized 1,000,000 shares; no shares outstanding at March 26, 2011 and March 27, 2010                              |   |                                    | -      |   |                 |   | - |   |
| Common stock of no par value; Authorized 40,000,000 shares; 4,994,157 shares at March 26, 2011 and 4,891,394 at March 27, 2010 issued and outstanding |   |                                    | 14,485 |   |                 |   | 13,979 |   |
| Retained earnings (accumulated deficit)                                                                                                               |   |                                    | (4,220 | )      |                 |   | (5,036 | ) |
| Total shareholders' equity                                                                                                                            |   |                                    | 10,265 |   |                 |   | 8,943 |   |
| Total liabilities and shareholders' equity                                                                                                            |   | $                                       | 13,392 |   |                 | $      | 13,919 |   |

----

|                                        |   | Years Ended                             |   |
|---------------------------------------------|--------|-----------------------------------------|--------|
| (In thousands except share data)            |   | March 26, 2011(as restated, see Note 2) |   |   | March 27, 2010  |   |
| Net sales                                   |   | $                                       | 21,029 |   |   | $ | 19,057 |   |
| Cost of sales                               |   |                                    | 12,100 |   |   |   | 10,622 |   |
| Gross profit                                |   |                                    | 8,929  |   |   |   | 8,435 |   |
|                                        |   |                                    |   |   |   |   |   |   |
| Engineering                                 |   |                                    | 2,159  |   |   |   | 1,522 |   |
| Selling, general and administrative         |   |                                    | 5,927  |   |   |   | 5,595 |   |
| Total operating expenses                    |   |                                    | 8,086  |   |   |   | 7,117 |   |
|                                        |   |                                    |   |   |   |   |   |   |
| Operating income from continuing operations |   |                                    | 843    |   |   |   | 1,318 |   |
|                                        |   |                                    |   |   |   |   |   |   |
| Interest income (expense), net              |   |                                    | 4      |   |   |   | (16 | ) |
| Income before income taxes                  |   |                                    | 847    |   |   |   | 1,302 |   |
| Provision for income taxes                  |   |                                    | 31     |   |   |   | 2 |   |
| Net income                                  |   | $                                       | 816    |   |   | $ | 1,300 |   |
|                                        |   |                                    |   |   |   |   |   |   |
| Earnings per share - basic                  |   | $                                       | 0.17   |   |   | $ | 0.27 |   |
| Earnings per share - diluted                |   | $                                       | 0.16   |   |   | $ | 0.26 |   |
|                                        |   |                                    |   |   |   |   |   |   |
| Shares used in per share calculation:       |   |                                    |   |   |   |   |   |   |
| Basic                                       |   |                                    | 4,935  |   |   |   | 4,846 |   |
| Diluted                                     |   |                                    | 5,040  |   |   |   | 4,907 |   |

----

|                                     |   |   |      |   | Accumulated |   |   |                            |   |
|------------------------------------------|--------|--------|-----------|--------|-------------|--------|--------|---------------------------------|--------|
| (In thousands except share data)         |   | Shares |      |   | Amount      |   |   | Deficit(as restated,see Note 2) |   |   | Total(as restated,see Note 2) |   |
| 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 options plans |   |   | 67,373    |   |        |   | 124    |                            |   |   | - |   |   |   | 124 |   |
| Balance at March 27, 2010                |   |   | 4,891,394 |   |        |   | 13,979 |                            |   |   | (5,036 | ) |   |   | 8,943 |   |
| Net income                               |   |   |      |   |        |   |   |                            |   |   | 816 |   |   |   | 816 |   |
| Share based compensation                 |   |   | -         |   |        |   | 311    |                            |   |   | - |   |   |   | 311 |   |
| Stock issuance under stock options plans |   |   | 102,763   |   |        |   | 195    |                            |   |   | - |   |   |   | 195 |   |
| Balance at March 26, 2011                |   |   | 4,994,157 |   |        | $      | 14,485 |                            |   | $ | (4,220 | ) |   | $ | 10,265 |   |

----

|                                                                            |   | Years Ended                             |   |
|---------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
| (In thousands except share data)                                                |   | March 26, 2011(as restated, see Note 2) |   |   | March 27, 2010 |   |
| Cash flows from operations:                                                     |   |                                    |   |   |   |   |
| Net income                                                                      |   | $                                       | 816    |   |   | $ | 1,300 |   |
| Adjustments to reconcile net loss to net cash provided by (used in) operations: |   |                                    |   |   |   |   |   |   |
| Net provision for doubtful accounts                                             |   |                                    | 153    |   |   |   | 7 |   |
| Depreciation and amortization                                                   |   |                                    | 149    |   |   |   | 146 |   |
| Loss on sale of fixed asset                                                     |   |                                    | -      |   |   |   | 1 |   |
| Share based compensation                                                        |   |                                    | 311    |   |   |   | 187 |   |
| Deferred rent                                                                   |   |                                    | 418    |   |   |   | (183 | ) |
| Changes in operating assets and liabilities:                                    |   |                                    |   |   |   |   |   |   |
| Trade accounts receivable                                                       |   |                                    | (1,453 | ) |   |   | (1,229 | ) |
| Inventories                                                                     |   |                                    | 417    |   |   |   | (394 | ) |
| Prepaid expenses and other assets                                               |   |                                    | (37    | ) |   |   | 47 |   |
| Accounts payable                                                                |   |                                    | 91     |   |   |   | (338 | ) |
| Accrued commissions                                                             |   |                                    | (88    | ) |   |   | 83 |   |
| Accrued payroll and benefits                                                    |   |                                    | (243   | ) |   |   | 301 |   |
| Accrued warranty                                                                |   |                                    | 61     |   |   |   | (38 | ) |
| Income taxes payable                                                            |   |                                    | 30     |   |   |   | - |   |
| Deferred revenue                                                                |   |                                    | (2,096 | ) |   |   | 1,723 |   |
| Other current liabilities                                                       |   |                                    | (32    | ) |   |   | (81 | ) |
| Net cash (used in) provided by operations                                       |   |                                    | (1,503 | ) |   |   | 1,532 |   |
|                                                                            |   |                                    |   |   |   |   |   |   |
| Cash flows from investing activities:                                           |   |                                    |   |   |   |   |   |   |
| Proceeds from sales of equipment                                                |   |                                    | -      |   |   |   | - |   |
| Purchases of property and equipment                                             |   |                                    | (368   | ) |   |   | (152 | ) |
| Net cash used in investing activities                                           |   |                                    | (368   | ) |   |   | (152 | ) |
|                                                                            |   |                                    |   |   |   |   |   |   |
| Cash flows from financing activities:                                           |   |                                    |   |   |   |   |   |   |
| Proceeds from capital lease                                                     |   |                                    | 10     |   |   |   | 52 |   |
| Issuance of common stock                                                        |   |                                    | 195    |   |   |   | 124 |   |
| Net cash provided by financing activities                                       |   |                                    | 205    |   |   |   | 176 |   |
|                                                                            |   |                                    |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                |   |                                    | (1,666 | ) |   |   | 1,556 |   |
|                                                                            |   |                                    |   |   |   |   |   |   |
| Beginning cash and cash equivalents                                             |   |                                    | 3,074  |   |   |   | 1,518 |   |
| Ending cash and cash equivalents                                                |   | $                                       | 1,408  |   |   | $ | 3,074 |   |
|                                                                            |   |                                    |   |   |   |   |   |   |
| Supplementary disclosure of cash flow information:                              |   |                                    |   |   |   |   |   |   |
| Cash paid for income taxes                                                      |   | $                                       | 2      |   |   | $ | 4 |   |
| Cash paid for interest                                                          |   |                                    | 4      |   |   |   | 21 |   |

----

|   | a.  | It is commensurate with either of the following: |
|--------|----------|--------------------------------------------------|

|   | 1. | The Company’s performance to achieve the milestone |
|--------|----|----------------------------------------------------------|

|   | 2. | The enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the Company's performance to achieve the milestone. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.  | It relates solely to past performance. |
|--------|----------|----------------------------------------|

|   | c. | It is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| Allowance For Uncollectable Accounts |   |           |   |   |           |   |
|--------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (Dollars in thousands)               |   | March 26, 2011 |   |   | March 27, 2010 |   |
| Beginning balance                    |   | $              | 95     |   |           | $      | 102 |   |
| Provision for doubtful accounts      |   |           | 154    |   |           |   | 7 |   |
| Write-off of doubtful accounts       |   |           | (1     | )      |           |   | (14 | ) |
| Ending balance                       |   | $              | 248    |   |           | $      | 95 |   |

----

----

| Years Ended             |   | March 26, 2011 |   |   | March 27, 2010 |   |
|-------------------------|--------|----------------|--------|--------|----------------|--------|
| Dividend yield          |   | Zero           |   |   | Zero           |   |
| Expected volatility     |   |           | 101    | %      |           |   | 96 | % |
| Risk-free interest rate |   |           | 1.13   | %      |           |   | 1.49 | % |
| Expected term (years)   |   |           | 3.17   |   |           |   | 3.75 |   |

----

| CONSOLIDATED BALANCE SHEET                 |   |           |   |   |        |   |    |        |   |
|--------------------------------------------|--------|----------------|--------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)                     |   | As of March 26 |   |
|                                       |   |           |   |   | 2011        |   |    |        |   |
|                                       |   |           |   |   |        |   |    |        |   |
|                                       |   | As reported    |   |   | Adjustments |   |    | As restated |   |
|                                       |   |           |   |   |        |   |    |        |   |
| Current deferred income tax                |   | $              | 2,320  |   |        | $      | (2,320  | )           |   | $ | - |   |
| Deferred income tax - long term            |   | $              | 10,936 |   |        | $      | (10,936 | )           |   | $ | - |   |
| Total assets                               |   | $              | 26,648 |   |        | $      | (13,256 | )           |   | $ | 13,392 |   |
|                                       |   |           |   |   |        |   |    |        |   |   |   |   |
| Retained earnings (accumulated deficit)    |   | $              | 9,036  |   |        | $      | (13,256 | )           |   | $ | (4,220 | ) |
| Total shareholders' equity                 |   | $              | 23,521 |   |        | $      | (13,256 | )           |   | $ | 10,265 |   |
| Total liabilities and shareholders' equity |   | $              | 26,648 |   |        | $      | (13,256 | )           |   | $ | 13,392 |   |

----

| CONSOLIDATED STATEMENT OF OPERATIONS |   |                            |    |   |        |   |    |        |   |
|--------------------------------------|--------|---------------------------------|---------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)               |   | For the year ended March 262011 |    |
|                                 |   | As reported                     |    |   | Adjustments |   |    | As restated |   |
| (Benefit) provision for income taxes |   | $                               | (13,225 | )      |        | $      | 13,256  |        |   | $ | 31 |   |
| Net income                           |   | $                               | 14,072  |   |        | $      | (13,256 | )           |   | $ | 816 |   |
|                                 |   |                            |    |   |        |   |    |        |   |   |   |   |
| Earnings per share - basic           |   | $                               | 2.85    |   |        | $      | (2.68   | )           |   | $ | 0.17 |   |
|                                 |   |                            |    |   |        |   |    |        |   |   |   |   |
| Earnings per share - diluted         |   | $                               | 2.79    |   |        | $      | (2.63   | )           |   | $ | 0.16 |   |

| CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY |   |                        |   |   |        |   |    |        |   |
|------------------------------------------------|--------|-----------------------------|--------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)                         |   | For the year ended March 26 |   |
|                                           |   | 2011                        |   |
|                                           |   | As reported                 |   |   | Adjustments |   |    | As restated |   |
|                                           |   |                        |   |   |        |   |    |        |   |
| Net income                                     |   | $                           | 14,072 |   |        | $      | (13,256 | )           |   | $ | 816 |   |
| Accumulated earnings (deficit)                 |   | $                           | 9,036  |   |        | $      | (13,256 | )           |   | $ | (4,220 | ) |
| Total shareholders' equity                     |   | $                           | 23,521 |   |        | $      | (13,256 | )           |   | $ | 10,265 |   |

| CONSOLIDATED STATEMENT OF CASH FLOWS  |   |                        |    |   |        |   |    |        |   |
|---------------------------------------|--------|-----------------------------|---------|--------|-------------|--------|---------|-------------|--------|
| (Dollars in thousands)                |   | For the year ended March 26 |    |
|                                  |   | 2011                        |    |
|                                  |   | As reported                 |    |   | Adjustments |   |    | As restated |   |
|                                  |   |                        |    |   |        |   |    |        |   |
| Net income                            |   | $                           | 14,072  |   |        | $      | (13,256 | )           |   | $ | 816 |   |
| Deferred income taxes                 |   | $                           | (13,256 | )      |        | $      | 13,256  |        |   | $ | - |   |
| Net cash used in operating activities |   | $                           | (1,503  | )      |        | $      | -       |        |   | $ | (1,503 | ) |

| (Dollars in thousands)  |   | March 26, 2011 |   |   | March 27, 2010 |   |
|-------------------------|--------|----------------|--------|--------|----------------|--------|
| Raw materials           |   | $              | 3,518  |   |           | $      | 3,337 |   |
| Work-in-progress        |   |           | 1,349  |   |           |   | 1,930 |   |
| Finished goods          |   |           | 134    |   |           |   | 128 |   |
| Demonstration inventory |   |           | 385    |   |           |   | 408 |   |
| Total                   |   | $              | 5,386  |   |           | $      | 5,803 |   |

----

| March 26, 2011 (Dollars in thousands) |   | Giga-tronics Division(as restated) |   |   | Microsource(as restated) |   |   | Total(as restated) |   |
|---------------------------------------|--------|------------------------------------|--------|--------|--------------------------|--------|--------|--------------------|--------|
| Revenue                               |   | $                                  | 13,946 |   |                     | $      | 7,083  |               |   | $ | 21,029 |   |
| Interest income, net                  |   |                               | -      |   |                     |   | 4      |               |   |   | 4 |   |
| Depreciation and amortization         |   |                               | 127    |   |                     |   | 22     |               |   |   | 149 |   |
| Income (loss) before income taxes     |   |                               | 980    |   |                     |   | (133   | )                  |   |   | 847 |   |
| Assets                                |   |                               | 9,917  |   |                     |   | 3,475  |               |   |   | 13,392 |   |

| 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 before income taxes     |   |                  | (30    | )      |        |   | 1,332  |   |   |   | 1,302 |   |
| Assets                                |   |                  | 7,083  |   |        |   | 6,836  |   |   |   | 13,919 |   |

| (Dollars in thousands) |   | March 26, 2011 |   |   | March 27, 2010 |   |
|------------------------|--------|----------------|--------|--------|----------------|--------|
| Americas               |   | $              | 1,603  |   |           | $      | 23 |   |
| Europe                 |   |           | 1,148  |   |           |   | 2,251 |   |
| Asia                   |   |           | 5,477  |   |           |   | 989 |   |
| Rest of world          |   |           | 254    |   |           |   | 702 |   |
| Total                  |   | $              | 8,482  |   |           | $      | 3,965 |   |

----

| (In thousands except share data)                                                                          |   | March 26, 2011(as restated) |   |   | March 27, 2010 |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|----------------|--------|
| Net income                                                                                                |   | $                           | 816    |   |           | $      | 1,300 |   |
|                                                                                                      |   |                        |   |   |           |   |   |   |
| Weighted average:                                                                                         |   |                        |   |   |           |   |   |   |
| Common shares outstanding                                                                                 |   |                        | 4,935  |   |           |   | 4,846 |   |
| Potential common shares                                                                                   |   |                        | 105    |   |           |   | 61 |   |
| Common shares assuming dilution                                                                           |   |                        | 5,040  |   |           |   | 4,907 |   |
|                                                                                                      |   |                        |   |   |           |   |   |   |
| Net earnings per share of common stock                                                                    |   | $                           | 0.17   |   |           | $      | 0.27 |   |
| Net earnings per share of common stock assuming dilution                                                  |   | $                           | 0.16   |   |           | $      | 0.26 |   |
| Stock options not included in computation that could potentially dilute basic EPS in the future           |   |                        | 636    |   |           |   | 568 |   |
| Restricted stock awards not included in computation that could potentially dilute basic EPS in the future |   |                        | 90     |   |           |   | - |   |

| Years Ended (In thousands)                      |   | March 26, 2011(as restated) |   |   | March 27, 2010 |   |
|-------------------------------------------------|--------|-----------------------------|--------|--------|----------------|--------|
| Current                                         |   |                        |   |   |           |   |
| Federal                                         |   | $                           | 29     |   |           | $      | --- |   |
| State                                           |   |                        | 2      |   |           |   | 2 |   |
| Total current                                   |   |                        | 31     |   |           |   | 2 |   |
|                                            |   |                        |   |   |           |   |   |   |
| Deferred                                        |   |                        |   |   |           |   |   |   |
| Federal                                         |   |                        | 2,283  |   |           |   | 442 |   |
| State                                           |   |                        | 41     |   |           |   | 72 |   |
| Total deferred                                  |   |                        | 2,324  |   |           |   | 514 |   |
|                                            |   |                        |   |   |           |   |   |   |
| Change in liability for uncertain tax positions |   |                        | 714    |   |           |   | (70 | ) |
| Change in valuation allowance                   |   |                        | (3,038 | )      |           |   | (444 | ) |
| Provision for income taxes                      |   | $                           | 31     |   |           | $      | 2 |   |

----

| Year Ended (In thousands)                           |   | March 26, 2011(as restated) |    |   | March 27, 2010 |   |
|-----------------------------------------------------|--------|-----------------------------|---------|--------|----------------|--------|
| Net operating loss carryforwards                    |   | $                           | 9,410   |   |           | $      | 12,059 |   |
| Income tax credits                                  |   |                        | 1,426   |   |           |   | 2,202 |   |
| Inventory reserves and additional capitalized costs |   |                        | 1,785   |   |           |   | 1,688 |   |
| Fixed asset depreciation                            |   |                        | 100     |   |           |   | 122 |   |
| Accrued vacation                                    |   |                        | 117     |   |           |   | 114 |   |
| Accrued warranty                                    |   |                        | 79      |   |           |   | 55 |   |
| Deferred rent                                       |   |                        | 179     |   |           |   | --- |   |
| Other accrued liabilities                           |   |                        | ---     |   |           |   | --- |   |
| Allowance for doubtful accounts                     |   |                        | 100     |   |           |   | 38 |   |
| Non-qualified stock options                         |   |                        | 60      |   |           |   | 14 |   |
| State taxes benefit                                 |   |                        | ---     |   |           |   | 2 |   |
| Total deferred tax assets                           |   |                        | 13,256  |   |           |   | 16,294 |   |
|                                                |   |                        |    |   |           |   |   |   |
| Valuation allowance                                 |   |                        | (13,256 | )      |           |   | (16,294 | ) |
| Net deferred tax assets                             |   | $                           | ---     |   |           |   | --- |   |

| Years Ended (In thousands except percentages) |   | March 26, 2011(as restated) |   |   | March 27, 2010 |   |
|-----------------------------------------------|--------|-----------------------------|--------|--------|----------------|--------|
| Statutory federal income tax (benefit)        |   | $                           | 288    |   |           |   | 34.0 | % |   | $ | 443 |   |   |   | 34.0 | % |
| Valuation allowance                           |   |                        | (3.038 | )      |           |   | (358.7 | ) |   |   | (444 | ) |   |   | (30.2 | ) |
| State income tax, net of federal benefit      |   |                        | 49     |   |           |   | 5.8 |   |   |   | 76 |   |   |   | 5.8 |   |
| Net operating loss expiration                 |   |                        | 2,023  |   |           |   | 238.8 |   |   |   | - |   |   |   | - |   |
| Non tax-deductible expenses                   |   |                        | 72     |   |           |   | 8.5 |   |   |   | 52 |   |   |   | 4.0 |   |
| Tax credits                                   |   |                        | (85    | )      |           |   | (10.0 | ) |   |   | (54 | ) |   |   | (4.1 | ) |
| Liability for uncertain tax positions         |   |                        | 714    |   |           |   | 84.3 |   |   |   | (70 | ) |   |   | (9.2 | ) |
| Other                                         |   |                        | 8      |   |           |   | 1.0 |   |   |   | (1 | ) |   |   | 1.5 |   |
| Effective income tax                          |   | $                           | 31     |   |           |   | 3.7 | % |   | $ | 2 |   |   |   | 0.7 | % |

----

|                                                                     |   | Fiscal Year 2011 |    |   | Fiscal Year 2010 |   |
|--------------------------------------------------------------------------|--------|------------------|---------|--------|------------------|--------|
| Balance as of beginning of year                                          |   |             | 120,000 |   |             | $      | 190,000 |   |
| Additions based on current year tax positions                            |   |             | 34,000  |   |             |   | 100,000 |   |
| Reductions for prior year tax positions and lapses of applicable statute |   |             | (72,000 | )      |             |   | (170,000 | ) |
| Additions based on prior year tax positions                              |   |             | 752,000 |   |             |   | --- |   |
| Balance as of end of year                                                |   | $                | 834,000 |   |             | $      | 120,000 |   |

|                               |   | Shares |    |   | WeightedAverageExercise Price |   |   | Weighted AverageRemaining ContractualTerms (Years) |   |   | AggregateIntrinsicValue |   |
|------------------------------------|--------|--------|---------|--------|-------------------------------|--------|--------|----------------------------------------------------|--------|--------|-------------------------|--------|
| Outstanding at March 28, 2009      |   |   | 747,900 |   |                          | $      | 1.91   |                                               |   |   | 2.7                     |   |   | $ | 2,795 |   |
| Granted                            |   |   | 320,500 |   |                          |   | 2.07   |                                               |   |   |                    |   |   |   |   |   |
| Exercised                          |   |   | 67,373  |   |                          |   | 1.85   |                                               |   |   |                    |   |   |   |   |   |
| Forfeited / Expired                |   |   | 133,000 |   |                          |   | 2.46   |                                               |   |   |                    |   |   |   |   |   |
| Outstanding at March 27, 2010      |   |   | 868,027 |   |                          | $      | 1.89   |                                               |   |   | 3.0                     |   |   | $ | 332,127 |   |
| Granted                            |   |   | 140,000 |   |                          |   | 2.41   |                                               |   |   |                    |   |   |   |   |   |
| Exercised                          |   |   | 102,763 |   |                          |   | 1.90   |                                               |   |   |                    |   |   |   |   |   |
| Forfeited / Expired                |   |   | 20,250  |   |                          |   | 2.18   |                                               |   |   |                    |   |   |   |   |   |
| Outstanding at March 26, 2011      |   |   | 885,014 |   |                          | $      | 1.96   |                                               |   |   | 2.5                     |   |   | $ | 459,708 |   |
|                               |   |   |    |   |                          |   |   |                                               |   |   |                    |   |   |   |   |   |
| Exercisable at March 26, 2011      |   |   | 468,514 |   |                          | $      | 1.90   |                                               |   |   | 1.5                     |   |   | $ | 276,708 |   |
|                               |   |   |    |   |                          |   |   |                                               |   |   |                    |   |   |   |   |   |
| Expected to vest at March 26, 2011 |   |   | 324,068 |   |                          | $      | 2.03   |                                               |   |   | 3.5                     |   |   | $ | 142,388 |   |

----

| Fiscal year (Dollars in thousands) |   |   |   |
|------------------------------------|--------|--------|--------|
| 2012                               |   | $      | 978    |   |
| 2013                               |   |   | 1,000  |   |
| 2014                               |   |   | 696    |   |
| 2015                               |   |   | 654    |   |
| 2016                               |   |   | 677    |   |
| Thereafter                         |   |   | 523    |   |
| Total                              |   | $      | 4,528  |   |

| (Dollars in thousands)         |   | March 26, 2011 |   |   | March 27, 2010 |   |
|--------------------------------|--------|----------------|--------|--------|----------------|--------|
| Balance at beginning of period |   | $              | 139    |   |           | $      | 177 |   |
| Provision, net                 |   |           | 237    |   |           |   | 84 |   |
| Warranty costs incurred        |   |           | (176   | )      |           |   | (122 | ) |
| Balance at end of period       |   | $              | 200    |   |           | $      | 139 |   |

----

----

|   | /s/ Perry-Smith LLP |   |
|--------|---------------------|--------|

----

|   | · | 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 18.  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            |   | 06/19/2012 |
|---------------------------|--------|----------------------------------|--------|------------|
| Garrett A. Garrettson     |   | of Directors                     |   | Date       |
|                      |   |                             |   |       |
|                      |   |                             |   |       |
| /s/ JOHN R. REGAZZI       |   | Chief Executive Officer          |   | 06/19/2012 |
| John R. Regazzi           |   | (Principal Executive Officer)    |   | Date       |
|                      |   | and Director                     |   |       |
|                      |   |                             |   |       |
| /s/ FRANK D. ROMEJKO      |   | Vice President of Finance/       |   | 06/19/2012 |
| Frank D. Romejko          |   | Chief Financial Officer (Acting) |   | Date       |
|                      |   | (Principal Financial Officer)    |   |       |
|                      |   |                             |   |       |
|                      |   |                             |   |       |
| /s/ JAMES A. COLE         |   | Director                         |   | 06/19/2012 |
| James A. Cole             |   |                             |   | Date       |
|                      |   |                             |   |       |
|                      |   |                             |   |       |
| /s/ KENNETH A. HARVEY     |   | Director                         |   | 06/19/2012 |
| Kenneth A. Harvey         |   |                             |   | Date       |
|                      |   |                             |   |       |
|                      |   |                             |   |       |
| /s/ LUTZ P. HENCKELS      |   | Director                         |   | 06/19/2012 |
| Lutz P. Henckels          |   |                             |   | Date       |
|                      |   |                             |   |       |
|                      |   |                             |   |       |
| /s/ WILLIAM J. THOMPSON   |   | Director                         |   | 06/19/2012 |
| William J. Thompson       |   |                             |   | Date       |
|                      |   |                             |   |       |
|                      |   |                             |   |       |
| /s/ GORDON ALMQUIST       |   | Director                         |   | 06/19/2012 |
| Gordon Almquist           |   |                             |   | Date       |

----

|   | 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, previously filed as Exhibit 10.1 to Form 10-K for the fiscal year ended March 27, 2010, and incorporated herein by reference.                                                                                                                |
|   |   |   |                                                                                                                                                                                                                                                                                                             |
|   | 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, previously filed as Exhibit 10.2 to Form 10-K for the fiscal year ended March 27, 2010, and incorporated herein by reference. |
|   |   |   |                                                                                                                                                                                                                                                                                                             |
|   | 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 36 of this Annual Report on Form 10-K.)                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                             |
|   | 23.1   |   | Consent of Independent Registered Public Accounting Firm, Perry-Smith LLP. (See page 37 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 38 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 39 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 40 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 41 of this Annual Report on Form 10-K.)                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                             |
|   |   | *      | Management contract or compensatory plan or arrangement.                                                                                                                                                                                                                                                         |