**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| **For                  the quarter ended****March                  31, 2007** | **Commission                  file number 1-13905** |
|-------------------------------------------------------------------------------|-----------------------------------------------------|

| **COMPX                INTERNATIONAL INC.**                                          |
|--------------------------------------------------------------------------------------|
| (Exact                name of Registrant as specified in its                charter) |

|                                                                                                   |   |                                                           |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
| **Delaware**                                                                                           |   | **57-0981653**                                                 |
| (State                or other jurisdiction ofIncorporation                or organization)            |   | (IRS                EmployerIdentification                No.) |
|                                                                                                   |   |                                                           |
| **5430                LBJ Freeway, Suite 1700,****Three                Lincoln Centre, Dallas, Texas** |   | **75240-2697**                                                 |
| (Address                of principal executive offices)                                                |   | (Zip                Code)                                      |
|                                                                                                   |   |                                                           |
| Registrant’s                telephone number, including area code                                |   | **(972)                448-1400**                              |
|                                                                                                   |   |                                                           |
|                                                                                                   |   |                                                           |

**Indicate      by checkmark:**

**Whether      the Registrant (1) has filed all reports required to be filed by Section 13      or      15(d) of the Securities Exchange Act of 1934 during the preceding 12 months      and      (2) has been subject to such filing requirements for the past 90      days.  **
**Yes      **
**S**
**  No      **
**£**

**Whether      the Registrant is a large accelerated filer, an accelerated filer, or a      non-accelerated filer (as defined in Rule 12b-2 of the Exchange      Act).  Large accelerated filer **
**£**
**      Accelerated filer **
**£**
**      Non-accelerated filer **
**S**

**Whether      the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange      Act).  **
**Yes      **
**£**
**  No      **
**S**
**.**

**Number      of shares of common stock outstanding on April 27, 2007:**

**Class      A:   5,274,280**

**Class      B:  10,000,000**

----

**COMPX      INTERNATIONAL INC.**

**Index**

| **Part                I.** **FINANCIAL                INFORMATION**                                                                                                                             | ** Page ** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
|                                                                                                                                                                                                 |                 |
| Item                1. Financial                Statements.                                                                                                                                     |                 |
|                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Balance Sheets - December 31, 2006 -  March                31, 2007 (unaudited)                                                                      | 3                    |
|                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Statements of Income -  Three                months ended March 31, 2006 and 2007 (unaudited)                                                        | 5                    |
|                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Statements of Cash Flows -  Three                months ended March 31, 2006 and 2007 (unaudited)                                                    | 6                    |
|                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Statement of Stockholders' Equity and Comprehensive                Income -   Three                months ended March 31, 2007 (unaudited) | 7                    |
|                                                                                                                                                                                                 |                 |
| Notes                to Condensed Consolidated Financial Statements (unaudited)                                                                                                                      | 8                    |
|                                                                                                                                                                                                 |                 |
| Item                2. Management's                Discussion and Analysis of Financial Condition                and Results of Operations.                                                     | 12                   |
|                                                                                                                                                                                                 |                 |
| Item                3. Quantitative                and Qualitative Disclosure About Market Risk                                                                                                 | 18                   |
|                                                                                                                                                                                                 |                 |
| Item                4T. Controls                and Procedures.                                                                                                                                 | 18                   |
|                                                                                                                                                                                                 |                 |
|                                                                                                                                                                                                 |                 |
| **Part                II.** **OTHER                INFORMATION**                                                                                                                                |                 |
|                                                                                                                                                                                                 |                 |
| Item                1A. Risk                Factors                                                                                                                                             | 20                   |
|                                                                                                                                                                                                 |                 |
| Item                6. Exhibits                                                                                                                                                                 | 20                   |
|                                                                                                                                                                                                 |                 |
|                                                                                                                                                                                                 |                 |
| Items                1,2,3,4 and 5 of Part II are omitted because there is no information                to                report.                                                                   |                 |
|                                                                                                                                                                                                 |                 |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(In      thousands)**

| **ASSETS**                                                                    |   | **December                31,****    2006    ** |    | **March                31,****   2007   ** |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|
|                                                                          |   |                                                                                    |    | **(unaudited)**                                                          |   |
| Current                assets:                                                |   |                                                                                    |    |                                                                     |   |   |   |
|   Cash                and cash equivalents                          |   | $                                                                                       | 29,688  |                                                                     | **$**  | **30,943** |   |
|   Accounts                receivable, net                           |   |                                                                                    | 19,986  |                                                                     |   | **20,780** |   |
|   Receivables                from affiliates                        |   |                                                                                    | 259     |                                                                     |   | **-** |   |
|   Refundable                income taxes                            |   |                                                                                    | 42      |                                                                     |   | **-** |   |
|   Inventories,                net                                   |   |                                                                                    | 21,733  |                                                                     |   | **23,701** |   |
|   Prepaid                expenses and other                         |   |                                                                                    | 1,130   |                                                                     |   | **1,335** |   |
|   Deferred                income taxes                              |   |                                                                                    | 2,050   |                                                                     |   | **2,050** |   |
|   Current                portion of note receivable                 |   |                                                                                    | 1,306   |                                                                     |   | **1,306** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
|       Total                current assets       |   |                                                                                    | 76,194  |                                                                     |   | **80,115** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
| Other                assets:                                                  |   |                                                                                    |    |                                                                     |   |   |   |
|   Goodwill                                                          |   |                                                                                    | 40,759  |                                                                     |   | **40,700** |   |
|   Other                intangible assets                            |   |                                                                                    | 3,174   |                                                                     |   | **3,019** |   |
|   Note                receivable                                    |   |                                                                                    | 1,567   |                                                                     |   | **1,567** |   |
|   Other                                                             |   |                                                                                    | 644     |                                                                     |   | **684** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
|       Total                other assets         |   |                                                                                    | 46,144  |                                                                     |   | **45,970** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
| Property                and equipment:                                        |   |                                                                                    |    |                                                                     |   |   |   |
|   Land                                                              |   |                                                                                    | 8,826   |                                                                     |   | **8,763** |   |
|   Buildings                                                         |   |                                                                                    | 35,284  |                                                                     |   | **35,363** |   |
|   Equipment                                                         |   |                                                                                    | 114,207 |                                                                     |   | **114,078** |   |
|   Construction                in progress                           |   |                                                                                    | 2,559   |                                                                     |   | **2,817** |   |
|                                                                          |   |                                                                                    | 160,876 |                                                                     |   | **161,021** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
|   Less                accumulated depreciation                      |   |                                                                                    | 91,188  |                                                                     |   | **93,158** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
|       Net                property and equipment |   |                                                                                    | 69,688  |                                                                     |   | **67,863** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |
|         Total                assets   |   | $                                                                                       | 192,026 |                                                                     | **$**  | **193,948** |   |
|                                                                          |   |                                                                                    |    |                                                                     |   |   |   |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (CONTINUED)**

**(In      thousands)**

| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                         |   | **December                31,****    2006    ** |    | **March                31,****   2007   ** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|
|                                                                                                            |   |                                                                                    |    | **(unaudited)**                                                          |   |
| Current                liabilities:                                                                             |   |                                                                                    |    |                                                                     |   |   |   |
|   Accounts                payable and accrued liabilities                                             |   | $                                                                                       | 16,842  |                                                                     | **$**  | **16,814** |   |
|   Income                taxes payable to affiliates                                                   |   |                                                                                    | 136     |                                                                     |   | **838** |   |
|   Income                taxes                                                                         |   |                                                                                    | 836     |                                                                     |   | **811** |   |
|                                                                                                            |   |                                                                                    |    |                                                                     |   |   |   |
|       Total                current liabilities                                    |   |                                                                                    | 17,814  |                                                                     |   | **18,463** |   |
|                                                                                                            |   |                                                                                    |    |                                                                     |   |   |   |
| Noncurrent                liabilities -                                                                         |   |                                                                                    |    |                                                                     |   |   |   |
|   deferred                income taxes                                                                |   |                                                                                    | 20,522  |                                                                     |   | **20,735** |   |
|                                                                                                            |   |                                                                                    |    |                                                                     |   |   |   |
| Stockholders'                equity:                                                                            |   |                                                                                    |    |                                                                     |   |   |   |
|   Preferred                stock                                                                      |   |                                                                                    | -       |                                                                     |   | **-** |   |
|   Class                A common stock                                                                 |   |                                                                                    | 53      |                                                                     |   | **53** |   |
|   Class                B common stock                                                                 |   |                                                                                    | 100     |                                                                     |   | **100** |   |
|   Additional                paid-in capital                                                           |   |                                                                                    | 110,106 |                                                                     |   | **110,185** |   |
|   Retained                earnings                                                                    |   |                                                                                    | 35,353  |                                                                     |   | **36,503** |   |
|   Accumulated                other comprehensive income                                               |   |                                                                                    | 8,078   |                                                                     |   | **7,909** |   |
|                                                                                                            |   |                                                                                    |    |                                                                     |   |   |   |
|       Total                stockholders' equity                                   |   |                                                                                    | 153,690 |                                                                     |   | **154,750** |   |
|                                                                                                            |   |                                                                                    |    |                                                                     |   |   |   |
|         Total                liabilities and stockholders’ equity |   | $                                                                                       | 192,026 |                                                                     | **$**  | **193,948** |   |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

**(In      thousands, except per share data)**

|                                                                                                            |   | **Three                months ended****March                31,** |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                                                            |   | **2006**                                                          |   | **2007** |   |
|                                                                                                            |   | **(unaudited)**                                                   |   |
|                                                                                                            |   |                                                              |   |   |   |
| Net                sales                                                                                        |   | $                                                                 | 47,029 |   | **$** | **43,551** |   |
| Cost                of goods sold                                                                               |   |                                                              | 35,402 |   |   | **31,429** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
|     Gross                margin                                                             |   |                                                              | 11,627 |   |   | **12,122** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Selling,                general and administrative expense                                                      |   |                                                              | 6,718  |   |   | **6,667** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Other                operating expense, net                                                                     |   |                                                              | 114    |   |   | **19** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
|     Operating                income                                                         |   |                                                              | 4,795  |   |   | **5,436** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Other                non-operating income, net                                                                  |   |                                                              | 321    |   |   | **248** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
|     Income                before income taxes                                               |   |                                                              | 5,116  |   |   | **5,684** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Provision                for income taxes                                                                       |   |                                                              | 2,643  |   |   | **2,666** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
|     Net                income                                                               |   | $                                                                 | 2,473  |   | **$** | **3,018** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Basic                and diluted earnings per common share                                                      |   | $                                                                 | .16    |   | **$** | **.20** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Cash                dividends per share                                                                         |   | $                                                                 | .125   |   | **$** | **.125** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |
| Shares                used in the calculation of basic and diluted  earnings                per share |   |                                                              | 15,248 |   |   | **15,280** |   |
|                                                                                                            |   |                                                              |   |   |   |   |   |

----

**COMPX        INTERNATIONAL INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In        thousands)**

|                                                                                             |   | **Three                    months ended March 31,** |   |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                             |   | **2006**                                            |   | **2007** |   |
|                                                                                             |   | **(unaudited)**                                     |   |
| Cash                    flows from operating activities:                                         |   |                                                |   |   |   |   |   |
|   Net                    income                                                        |   | $                                                   | 2,473  |   | **$** | **3,018** |   |
|   Depreciation                    and amortization                                     |   |                                                | 2,685  |   |   | **2,730** |   |
|   Deferred                    income taxes                                             |   |                                                | 661    |   |   | **906** |   |
|   Other,                    net                                                        |   |                                                | 353    |   |   | **165** |   |
|   Change                    in assets and liabilities:                                 |   |                                                |   |   |   |   |   |
|     Accounts                    receivable, net                              |   |                                                | (2,124 | ) |   | **(794** | **)** |
|     Inventories,                    net                                      |   |                                                | 343    |   |   | **(2,083** | **)** |
|     Accounts                    payable and accrued liabilities              |   |                                                | (1,881 | ) |   | **(590** | **)** |
|     Accounts                    with affiliates                              |   |                                                | 1,732  |   |   | **961** |   |
|     Income                    taxes                                          |   |                                                | (621   | ) |   | **21** |   |
|     Other,                    net                                            |   |                                                | 343    |   |   | **(298** | **)** |
|                                                                                             |   |                                                |   |   |   |   |   |
|       Net                    cash provided by operating activities |   |                                                | 3,964  |   |   | **4,036** |   |
|                                                                                             |   |                                                |   |   |   |   |   |
| Cash                    flows from investing activities:                                         |   |                                                |   |   |   |   |   |
|   Capital                    expenditures                                              |   |                                                | (2,583 | ) |   | **(855** | **)** |
|   Other,                    net                                                        |   |                                                | 7      |   |   | **12** |   |
|                                                                                             |   |                                                |   |   |   |   |   |
|       Net                    cash used in investing activities     |   |                                                | (2,576 | ) |   | **(843** | **)** |
|                                                                                             |   |                                                |   |   |   |   |   |
| Cash                    flows from financing activities:                                         |   |                                                |   |   |   |   |   |
|   Principal                    payments                                                |   |                                                | (1,476 | ) |   | **-** |   |
|   Deferred                    financing costs paid                                     |   |                                                | (105   | ) |   | **-** |   |
|   Dividends                                                                            |   |                                                | (1,904 | ) |   | **(1,909** | **)** |
|   Issuance                    of common stock and other, net                           |   |                                                | -      |   |   | **79** |   |
|                                                                                             |   |                                                |   |   |   |   |   |
|       Net                    cash used in financing activities     |   |                                                | (3,485 | ) |   | **(1,830** | **)** |
|                                                                                             |   |                                                |   |   |   |   |   |
| Cash                    and cash equivalents - net change from:                                  |   |                                                |   |   |   |   |   |
|   Operating,                    investing and financing activities                     |   |                                                | (2,097 | ) |   | **1,363** |   |
|   Currency                    translation                                              |   |                                                | 45     |   |   | **(108** | **)** |
| Cash                    and cash equivalents at beginning of period                              |   |                                                | 30,592 |   |   | **29,688** |   |
|                                                                                             |   |                                                |   |   |   |   |   |
| Cash                    and cash equivalents at end of period                                    |   | $                                                   | 28,540 |   | **$** | **30,943** |   |
|                                                                                             |   |                                                |   |   |   |   |   |
| Supplemental                    disclosures - cash paid for:                                     |   |                                                |   |   |   |   |   |
|     Interest                                                                 |   | $                                                   | 152    |   | **$** | **6** |   |
|     Income                    taxes                                          |   |                                                | 945    |   |   | **770** |   |
|                                                                                             |   |                                                |   |   |   |   |   |

----

**COMPX      INTERNATIONAL INC.**

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME**

**Three      months ended March 31, 2007**

**(In      thousands)**

|                                                                                    |   |  **  Common                    Stock ** |   | **Additional                    paid-in** |   | **Retained**            |   | **Accumulated                    other comprehensive income-currency** |    | **Total                    stockholders'** |   | **Comprehensive**                  |   |
|-----------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------|--------|-------------------------|--------|------------------------------------------------------------------------|---------|--------------------------------------------|--------|------------------------------------|--------|
|                                                                                    |   | **Class                    A**                              |   | **Class                    B**            |   | ** capital ** |   | **  earnings  **                                   |    | ** translation **                |   | **  equity  ** |   | **  income  ** |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   | **(unaudited)**                                                        |    |                                       |   |                               |   |   |   |
|  Balance                    at December 31, 2006                                   |   | $                                                           | 53     |                                      | $      | 100                     |   | $                                                                      | 110,106 |                                       | $      | 35,353                             |   | $ | 8,078 |   | $ | 153,690 |   | $ | - |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Net                    income                                                           |   |                                                        | -      |                                      |   | -                       |   |                                                                   | -       |                                       |   | 3,018                              |   |   | - |   |   | 3,018 |   |   | 3,018 |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Other                    comprehensive income, net                                      |   |                                                        | -      |                                      |   | -                       |   |                                                                   | -       |                                       |   | -                                  |   |   | (169 | ) |   | (169 | ) |   | (169 | ) |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Change                    in accounting principle -  FIN                    No. 48 |   |                                                        | -      |                                      |   | -                       |   |                                                                   | -       |                                       |   | 41                                 |   |   | - |   |   | 41 |   |   | - |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Issuance                    of common stock and other,                    net      |   |                                                        | -      |                                      |   | -                       |   |                                                                   | 79      |                                       |   | -                                  |   |   | - |   |   | 79 |   |   | - |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Cash                    dividends                                                       |   |                                                        | -      |                                      |   | -                       |   |                                                                   | -       |                                       |   | (1,909                             | )      |   | - |   |   | (1,909 | ) |   | - |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Balance                    at March 31, 2007                                            |   | $                                                           | 53     |                                      | $      | 100                     |   | $                                                                      | 110,185 |                                       | $      | 36,503                             |   | $ | 7,909 |   | $ | 154,750 |   |   |   |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                    income                                                 |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   | $ | 2,849 |   |
|                                                                                    |   |                                                        |   |                                      |   |                    |   |                                                                   |    |                                       |   |                               |   |   |   |   |   |   |   |   |   |   |

----

**COMPX      INTERNATIONAL INC.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**March      31, 2007**

**(unaudited)**

**Note      1 - Organization and basis of presentation:**

*Organization*

*Basis      of presentation*

----

**Note      2 - Business segment information:**

|                                                          |   | **Three                months ended****    March                31,    ** |   |
|---------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|                                                          |   | **2006**                                                                                                          |   | **2007** |   |
|                                                          |   | **(In                thousands)**                                                                                 |   |
|                                                          |   |                                                                                                              |   |   |   |
| Net                sales:                                     |   |                                                                                                              |   |   |   |   |   |
|   Security                Products                  |   | $                                                                                                                 | 20,417 |   | **$** | **19,778** |   |
|   Furniture                Components               |   |                                                                                                              | 23,745 |   |   | **19,435** |   |
|   Marine                Components                  |   |                                                                                                              | 2,867  |   |   | **4,338** |   |
|                                                          |   |                                                                                                              |   |   |   |   |   |
|     Total                net sales        |   | $                                                                                                                 | 47,029 |   | **$** | **43,551** |   |
|                                                          |   |                                                                                                              |   |   |   |   |   |
| Operating                income (loss):                       |   |                                                                                                              |   |   |   |   |   |
|   Security                Products                  |   | $                                                                                                                 | 3,859  |   | **$** | **4,110** |   |
|   Furniture                Components               |   |                                                                                                              | 2,194  |   |   | **2,261** |   |
|   Marine                Components                  |   |                                                                                                              | 346    |   |   | **396** |   |
|   Corporate                operating expenses       |   |                                                                                                              | (1,604 | ) |   | **(1,331** | **)** |
|                                                          |   |                                                                                                              |   |   |   |   |   |
|     Total                operating income |   |                                                                                                              | 4,795  |   |   | **5,436** |   |
|                                                          |   |                                                                                                              |   |   |   |   |   |
| Other                non-operating income, net                |   |                                                                                                              | 321    |   |   | **248** |   |
|                                                          |   |                                                                                                              |   |   |   |   |   |
|   Income                before income taxes         |   | $                                                                                                                 | 5,116  |   | **$** | **5,684** |   |

**Note      3 - Inventories, net:**

|                             |   | **December                31,****    2006    ** |   | **March                31,****   2007   ** |   |
|----------------------------------|--------|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                             |   | **(In                thousands)**                                                       |   |
|                             |   |                                                                                    |   |                                                                     |   |
| Raw                materials     |   | $                                                                                       | 5,892  |                                                                     | **$**  | **6,198** |   |
| Work                in process   |   |                                                                                    | 8,744  |                                                                     |   | **9,825** |   |
| Finished                products |   |                                                                                    | 7,097  |                                                                     |   | **7,678** |   |
|                             |   |                                                                                    |   |                                                                     |   |   |   |
|     Total    |   | $                                                                                       | 21,733 |                                                                     | **$**  | **23,701** |   |

**Note      4 - Accounts payable and accrued liabilities:**

|                                                           |   | **December                31,****    2006    ** |   | **March                31,****   2007   ** |   |
|----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                                                           |   | **(In                thousands)**                                                       |   |
|                                                           |   |                                                                                    |   |                                                                     |   |
| Accounts                payable                                |   | $                                                                                       | 6,151  |                                                                     | **$**  | **6,665** |   |
| Accrued                liabilities:                            |   |                                                                                    |   |                                                                     |   |   |   |
|   Employee                benefits                   |   |                                                                                    | 7,549  |                                                                     |   | **5,758** |   |
|   Customer                tooling                    |   |                                                                                    | 617    |                                                                     |   | **957** |   |
|   Professional                fees                   |   |                                                                                    | 334    |                                                                     |   | **509** |   |
|   Insurance                                          |   |                                                                                    | 621    |                                                                     |   | **616** |   |
|   Taxes                other than on income          |   |                                                                                    | 302    |                                                                     |   | **416** |   |
|   Reserve                for uncertain tax positions |   |                                                                                    | -      |                                                                     |   | **646** |   |
|   Other                                              |   |                                                                                    | 1,268  |                                                                     |   | **1,247** |   |
|                                                           |   |                                                                                    |   |                                                                     |   |   |   |
|     Total                                  |   | $                                                                                       | 16,842 |                                                                     | **$**  | **16,814** |   |

----

**Note      5 - Provision for income taxes:**

|                                                                                                                      |   | **Three                months ended****    March                31,    ** |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                      |   | **2006**                                                                                                          |   | **2007** |   |
|                                                                                                                      |   | **(In                thousands)**                                                                                 |   |
|                                                                                                                      |   |                                                                                                              |   |   |   |
| Expected                tax expense, at the U.S. federal statutory   income                tax rate of 35% |   | $                                                                                                                 | 1,791  |   | **$** | **1,989** |   |
| Non-U.S.                tax rates                                                                                         |   |                                                                                                              | (83    | ) |   | **(63** | **)** |
| Incremental                U.S. tax on earnings of foreign   subsidiaries                                  |   |                                                                                                              | 770    |   |   | **612** |   |
| State                income taxes and other, net                                                                          |   |                                                                                                              | 165    |   |   | **128** |   |
|                                                                                                                      |   |                                                                                                              |   |   |   |   |   |
|     Total                                                                                             |   | $                                                                                                                 | 2,643  |   | **$** | **2,666** |   |

**Note      6 - Recent accounting pronouncements:**

*Uncertain      tax positions - *
**       **
*Accounting      for Uncertain Tax Positions*
*Accounting      for Income Taxes, *
*.*
~~s~~

----

*Fair      Value Measurements*
** **
*Fair      Value Measurements*

----

**ITEM      2.**
**MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**
** **

----

**Overview**

**Results      of Operations**

|                                             |   | **Three                months ended****     March                31,    ** |   |
|--------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
|                                             |   | 2006%                                                                                                                   |   |   |   | 2007% |   |   |   |
|                                             |   | **Dollars                in thousands**                                                                                 |   |
| Net                sales                         |   | $                                                                                                                       | 47,029 |   |   | 100.0 | % | $ | 43,551 |   |   | 100.0 | % |
| Cost                of goods sold                |   |                                                                                                                    | 35,402 |   |   | 75.3 |   |   | 31,429 |   |   | 72.2 |   |
|                                             |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|   Gross                margin          |   |                                                                                                                    | 11,627 |   |   | 24.7 |   |   | 12,122 |   |   | 27.8 |   |
|                                             |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                costs and expenses |   |                                                                                                                    | 6,832  |   |   | 14.5 |   |   | 6,686 |   |   | 15.4 |   |
|                                             |   |                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |
|   Operating                income      |   | $                                                                                                                       | 4,795  |   |   | 10.2 | % | $ | 5,436 |   |   | 12.5 | % |

*Net      sales*

*Cost      of goods sold and gross margin. *

*Operating      costs and expenses. *

*Operating      income.*

----

*Currency*

*Provision        for income taxes. *

----

**Segment      Results**

|                                                          |   | **Three                months ended**March                31, % |   |     |   |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|----------|--------|
|                                                          |   | **2006**                                                        |   | **2007** |   | **Change** |   |
|                                                          |   | **(In                millions)**                                |   |     |   |
|                                                          |   |                                                            |   |     |   |   |   |
| Net                sales:                                     |   |                                                            |   |     |   |   |   |   |   |   |
|   Security                Products                  |   | $                                                               | 20,417 |     | **$**  | **19,778** |   |   | **(3** | **%)** |
|   Furniture                Components               |   |                                                            | 23,745 |     |   | **19,435** |   |   | **(18** | **%)** |
|   Marine                Components                  |   |                                                            | 2,867  |     |   | **4,338** |   |   | **51** | **%** |
|                                                          |   |                                                            |   |     |   |   |   |   |   |   |
|     Total                net sales        |   | $                                                               | 47,029 |     | **$**  | **43,551** |   |   | **(7** | **%)** |
|                                                          |   |                                                            |   |     |   |   |   |   |   |   |
| Gross                margin:                                  |   |                                                            |   |     |   |   |   |   |   |   |
| Security                Products                              |   | $                                                               | 6,124  |     | $      | 6,535 |   |   | **7** | **%** |
| Furniture                Components                           |   |                                                            | 4,765  |     |   | 4,292 |   |   | **(10** | **%)** |
| Marine                Components                              |   |                                                            | 738    |     |   | 1,295 |   |   | **75** | **%** |
|                                                          |   |                                                            |   |     |   |   |   |   |   |   |
|     Total                gross margin     |   | $                                                               | 11,627 |     | $      | 12,122 |   |   | **4** | **%** |
|                                                          |   |                                                            |   |     |   |   |   |   |   |   |
| Operating                income (loss):                       |   |                                                            |   |     |   |   |   |   |   |   |
|   Security                Products                  |   | $                                                               | 3,859  |     | **$**  | **4,110** |   |   | **7** | **%** |
|   Furniture                Components               |   |                                                            | 2,194  |     |   | **2,261** |   |   | **3** | **%** |
|   Marine                Components                  |   |                                                            | 346    |     |   | **396** |   |   | **14** | **%** |
|   Corporate                operating expenses       |   |                                                            | (1,604 | )        |   | **(1,331** | **)** |   | **(17** | **%)** |
|                                                          |   |                                                            |   |     |   |   |   |   |   |   |
|     Total                operating income |   | $                                                               | 4,795  |     | **$**  | **5,436** |   |   | **13** | **%** |
|                                                          |   |                                                            |   |     |   |   |   |   |   |   |

*Security      Products*

*Furniture      Components. *

*Marine      Components*

----

*Outlook.      *

**Liquidity      and Capital Resources**

*Consolidated      Cash Flows.*

*Operating      activities. *

*Investing      activities*

----

*Financing      activities.*

*Other.      *

*Future      Cash Requirements.*

----

*Off      balance sheet financing arrangements. *

*Recent      accounting pronouncements. *

*Critical      accounting policies. *

* *

**Forward      Looking Information**

| ·   | Future                supply and demand for our products, |
|--------------------|-----------------------------------------------------------|

| ·   | Changes                in our raw material and other operating costs (such as steel and                energy                costs), |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | General                global economic and political conditions, (such as changes in the                level of                gross domestic product in various regions of the                world), |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Demand                for office furniture, |
|--------------------|---------------------------------------------|

| ·   | Service                industry employment levels, |
|--------------------|----------------------------------------------------|

| ·   | The                possibility of labor disruptions, |
|--------------------|------------------------------------------------------|

| ·   | Competitive                products and prices, including competition from low-cost manufacturing                sources (such as China), |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Substitute                products, |
|--------------------|-------------------------------------|

| ·   | Customer                and competitor strategies, |
|--------------------|----------------------------------------------------|

| ·   | Costs                and expenses associated with compliance with certain requirements                of the                Sarbanes-Oxley Act of 2002 relating to the evaluation of our internal                control over financial reporting, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                introduction of trade barriers, |
|--------------------|----------------------------------------------------|

| ·   | The                impact of pricing and production decisions, |
|--------------------|----------------------------------------------------------------|

| ·   | Fluctuations                in the value of the U.S. dollar relative to other currencies (such                as the                Canadian dollar and New Taiwan dollar), |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Potential                difficulties in integrating completed or future acquisitions, |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Decisions                to sell operating assets other than in the ordinary course of                business, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Uncertainties                associated with new product development, |
|--------------------|-----------------------------------------------------------------------|

| ·   | Environmental                matters (such as those requiring emission and discharge standards                for                existing and new facilities), |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to comply with covenants contained in our revolving bank                credit                facility, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                ultimate outcome of income tax audits, tax settlement initiatives                or other                tax matters, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                impact of current or future government                regulations, |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | Possible                future litigation, |
|--------------------|--------------------------------------------|

| ·   | Possible                disruption of our business or increases in the cost of doing business                resulting from terrorist activities or global                conflicts, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating                interruptions (including, but not limited to labor disputes, leaks,                natural disasters, fires, explosions, unscheduled, or unplanned downtime                and transportation interruptions);                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Government                laws and regulations and possible changes                therein. |
|--------------------|---------------------------------------------------------------------------------------------|

----

**ITEM      3.**
**QUANTITATIVE      AND QUALITATITVE DISCLOSURE ABOUT MARKET RISK.**

**ITEM        4T.**
**CONTROLS        AND PROCEDURES.**

**Evaluation        of Disclosure Controls and Procedures.**

----

**Internal      Control Over Financial Reporting**

| ·   | Pertain                to the maintenance of records that in reasonable detail accurately                and                fairly reflect the transactions and dispositions of our                assets, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide                reasonable assurance that transactions are recorded as necessary                to permit                preparation of financial statements in accordance with GAAP, and                that our                receipts and expenditures are being made only in accordance with                authorizations of our management and directors, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide                reasonable assurance regarding prevention or timely detection of                unauthorized acquisition, use or disposition of our assets that could                have                a material effect on our consolidated financial                statements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Changes      in Internal Control Over Financial **
**Reporting**

----

**Part      II. OTHER INFORMATION**

| **ITEM                1A.** | **Risk                Factors.** |
|-----------------------------|----------------------------------|

| **ITEM                6.** | **Exhibits.** |
|----------------------------|---------------|

----

**SIGNATURES**

**COMPX      INTERNATIONAL INC.**

**(Registrant)**

----