U.S. SECURITIES AND EXCHANGE
COMMISSION
                             Washington, D. C. 20549

                                   FORM 10-QSB

(Mark One)
[X]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
       OF 1934
             For the fiscal quarter ended           March 31, 2006
                                          -----------------------------------

[   ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
             For the transition period from        to

             Commission file number         0-17580
                                   ----------------------------------------

                              SYNERGX SYSTEMS INC.
        (Exact name of small business issuer as specified in its charter)

       Delaware                                              11-2941299
----------------------------------------             -----------------------
(State or jurisdiction of incorporation or              (IRS employer
organization)                                          identification Number)


                  209 Lafayette Drive, Syosset, New York 11791
               (Address of Principal Executive Offices) (Zip code)


                                 (516) 433-4700
                           (Issuer's telephone number)


Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the Exchange  Act during the  preceding 12 months (or for
such shorter period that registrant was required to file such reports),  and (2)
has been subject to such filing  requirements for the past 90 days.

                                 Yes[ X ] No[ ]

Indicate by check mark whether the registrant is a shell company (as defined in
rule 12b-2 of the Exchange Act)

                                 Yes[ ]   No[ X ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of May 7, 2006, 5,210,950 shares
of Registrant's Common Stock were issued and outstanding.

Transitional Small Business Disclosure Format (check one)   Yes[    ]   No[ X ]

<PAGE>

                                      INDEX


Part I - Financial Information (unaudited)                                 Page

     Item 1.  Financial Statements.

     Condensed Consolidated Balance Sheet at March 31, 2006                 3

     Condensed Consolidated Statements of Operations for the Three
          And Six Months Ended March 31, 2006 and 2005                      5

     Condensed Consolidated Statements of Cash Flows for the Three
          And Six Months Ended March 31, 2006 and 2005                      7

     Notes to the Condensed Consolidated Financial Statements               8

     Item 2.  Management's Discussion and Analysis or Plan of Operations   13

     Item 3.   Controls and Procedures                                     17

Part II - Other Information

     Item 1.  Legal Proceedings.                                           18

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds  18

     Item 3.  Defaults Upon Senior Securities.                             18

     Item 4.  Submission of Matters to a Vote of Security Holders.         18

     Item 5.  Other Information.                                           18

     Item 6.  Exhibits and Reports on Form 8-K                             19

     Signatures                                                            20


<PAGE>
                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                               March 31,
                                                                                 2006
                                                                              -----------
ASSETS

CURRENT ASSETS
<S>                                                                          <C>
Cash and cash equivalents                                                    $   371,831
Accounts receivable, principally trade, less allowance
for doubtful accounts of $323,523                                              5,603,006
Inventories, net                                                               2,610,839
Deferred taxes                                                                   301,700
Prepaid expenses and other current assets                                        475,158
                                                                             -----------
TOTAL CURRENT ASSETS                                                           9,362,534
                                                                             -----------


PROPERTY AND EQUIPMENT -at cost, less
accumulated depreciation and amortization of $1,747,921                          811,028

OTHER ASSETS                                                                     633,385

                                                                             -----------
TOTAL ASSETS                                                                 $10,806,947
                                                                             ===========
</TABLE>

See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                               March 31,
                                                                                 2006
                                                                               ----------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
<S>                                                                         <C>
Notes payable - current portion                                             $     35,995
Accounts payable and accrued expenses                                          1,881,796
Deferred revenue                                                                 807,718
                                                                            ------------
TOTAL CURRENT LIABILITIES                                                      2,725,509



Note payable to bank                                                           1,401,566
Notes payable - less current portion                                              60,506
Deferred taxes                                                                    90,000
                                                                            ------------
TOTAL LIABILITIES                                                              4,277,581
                                                                            ------------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

Preferred stock, 2,000,000 shares authorized-
none issued and outstanding                                                           --
Common stock, 10,000,000 shares authorized, $.001
par value; issued and outstanding 5,210,950 shares                                 5,211
Capital in excess of par                                                       6,803,992
Accumulated deficit                                                             (279,837)
                                                                            ------------
TOTAL STOCKHOLDERS' EQUITY                                                     6,529,366
                                                                            ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                  $ 10,806,947
                                                                            ============
</TABLE>

See accompanying Notes to the  Condensed Consolidated Financial Statements
<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                         For the  Three Months Ended March 31,
                                                                2006           2005
                                                            -----------    -----------
<S>                                                         <C>            <C>
Product sales                                               $ 2,912,466    $ 3,568,295
Subcontract sales                                               180,388        207,400
Service revenue                                               1,278,042      1,136,752
                                                            -----------    -----------
Total revenues                                                4,370,896      4,912,447
                                                            -----------    -----------


Cost of product sales                                         2,097,629      2,333,695
Cost of subcontract sales                                       147,735        170,385
Cost of service revenue                                         645,416        745,598
Selling, general and administrative                           1,511,514      1,515,400
Interest expense                                                 26,503         14,521
Depreciation and amortization                                    42,769         44,785
Loss on equity investment                                        17,000         12,000
                                                            -----------    -----------
                                                              4,488,566      4,836,384
                                                            -----------    -----------

(Loss) income before (benefit) provision for income taxes      (117,670)        76,063
                                                            -----------    -----------
(Benefit) provision for income taxes:
Current                                                         (40,000)        24,000
Deferred                                                         (4,000)        12,000
                                                            -----------    -----------
                                                                (44,000)        36,000

                                                            -----------    -----------
Net (Loss) income                                           $   (73,670)   $    40,063
                                                            ===========    ===========
(Loss) income per common share
Basic (Loss) income per share                               $     (0.01)   $      0.01
                                                            ===========    ===========
Diluted (Loss) income per share                             $     (0.01)   $      0.01
                                                            ===========    ===========

Weighted average number of common shares outstanding          5,210,950      5,165,787

Weighted average number of common and dilutive
common share equivalents outstanding                          5,210,950      5,216,424

</TABLE>

See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                   For the Six Months Ended March 31,
                                                           2006           2005
                                                       -----------    -----------
<S>                                                    <C>            <C>
Product sales                                          $ 5,839,159    $ 6,816,678
Subcontract sales                                          303,285        305,533
Service revenue                                          2,469,635      2,257,139
                                                       -----------    -----------
Total revenues                                           8,612,079      9,379,350
                                                       -----------    -----------


Cost of product sales                                    4,325,129      4,815,784
Cost of subcontract sales                                  240,640        250,066
Cost of service revenue                                  1,350,795      1,466,132
Selling, general and administrative                      3,041,624      2,873,591
Interest expense                                            53,579         37,422
Depreciation and amortization                               86,243         89,669
Loss on equity investment                                   42,000         22,000
                                                       -----------    -----------
                                                         9,140,010      9,554,664
                                                       -----------    -----------

(Loss) before (benefit) from income taxes                 (527,931)      (175,314)
                                                       -----------    -----------
(Benefit) from income taxes:
Current                                                   (183,000)       (55,000)
Deferred                                                   (24,000)        (5,000)
                                                       -----------    -----------
                                                          (207,000)       (60,000)

                                                       -----------    -----------
Net (Loss)                                             $  (320,931)   $  (115,314)
                                                       ===========    ===========
(Loss) Per Common Share:
Basic (Loss) Per Share                                 $     (0.06)   $     (0.02)
                                                       ===========    ===========
Diluted (Loss) Per Share                               $     (0.06)   $     (0.02)
                                                       ===========    ===========

Weighted average number of common shares outstanding     5,201,639      5,151,324

Weighted average number of common and dilutive
common share equivalents outstanding                     5,201,639      5,151,324

</TABLE>



See accompanying Notes to the Condensed Consolidated Financial Statements





                        SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                       (Unaudited)
<TABLE>
<CAPTION>

                                                      For the Six Months Ended March 31,
                                                            2006           2005
                                                       ------------   ------------
OPERATING ACTIVITIES
<S>                                                    <C>            <C>
Net (Loss)                                             $  (320,931)   $  (115,314)
Adjustments to reconcile net (loss) to net cash
provided by operating activities:
Depreciation and amortization *                            104,665        115,515
Deferred tax (benefit)                                     (24,000)        (5,000)
Loss on equity investment                                   42,000         22,000
Tax benefit from employees stock option exercise            10,000             --
Changes in operating assets and liabilities:
Accounts receivable, net                                 1,490,111        690,128
Inventories                                               (202,936)        73,035
Prepaid expenses and other current assets                 (207,264)      (201,439)
Other assets                                               (92,475)        (5,757)
Accounts payable and accrued expenses                   (1,029,926)       (40,010)
Deferred revenue                                           253,383         37,898
                                                       -----------    -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES                   22,627        571,056
                                                       -----------    -----------
INVESTING ACTIVITIES
Purchases of property and equipment                       (182,553)      (211,466)
                                                       -----------    -----------
NET CASH (USED IN) INVESTING ACTIVITIES                   (182,553)      (211,466)
                                                       -----------    -----------
FINANCING ACTIVITIES
Principal payments on notes payable                        (20,569)       (33,463)
Payments and proceeds from note payable bank - net         (47,740)      (700,000)
Proceeds from exercise of stock options and warrants         9,416         27,628
                                                       -----------    -----------
NET CASH (USED IN) FINANCING ACTIVITIES                    (58,893)      (705,835)
                                                       -----------    -----------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS               (218,819)      (346,245)

Cash and cash equivalents at beginning of period           590,650        928,507
                                                       -----------    -----------
Cash and cash equivalents at end of period             $   371,831    $   582,262
                                                       ===========    ===========
SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for:
Income taxes                                           $    44,361    $     5,455
Interest                                               $    53,579    $    40,163
</TABLE>


NON-CASH INVESTING AND FINANCING ACTIVITIES
  Included in the six months ended March 31, 2006, was the purchase of equipment
for $82,794 through financing.

* Depreciation of $18,422 and $25,846 is included in cost of product sales for
the six months ended March 31, 2006 and 2005, respectively.

See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America for interim financial information. Accordingly, they do
not  include  all  of the  information  and  footnotes  required  by  accounting
principles  generally  accepted  in the United  States of America  for  complete
financial statements. In the opinion of management,  all adjustments (consisting
of normal  recurring  accruals)  considered  necessary  in order not to make the
financial  statements  misleading have been included.  Results for the three and
six months ended March 31, 2006 are not  necessarily  indicative  of the results
that may be expected for the fiscal year ending  September 30, 2006. For further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto  included in Synergx  Systems  Inc.  ("Synergx"  or "the  Company")  and
Subsidiaries'  annual  report on Form  10-KSB for the year ended  September  30,
2005.

2. REVENUE RECOGNITION

Product  sales  include  sales of  systems,  which are  similar in nature,  that
involve fire alarm,  life safety and security  (CCTV and card  access),  transit
(train  station  platforms  and on board  systems)  and  communication  (paging,
announcement and  audio/visual).  Product sales represent sales of product along
with the  integration  of  technical  services at a fixed price under a contract
with an electrical  contractor or end user customer  (building owner and tenant)
or customer  agent.  Product sales are allocated  using a constant  gross profit
percentage   over  the  entire   contract,   and  are   recognized,   using  the
percentage-of-completion   method  of   accounting.   The  Company   utilizes  a
units-of-work  performed method to measure  progress  towards  completion of the
contract.  The  effects  of  changes  in  contract  terms are  reflected  in the
accounting period in which they become known. Contract terms provide for billing
schedules  that  differ  from  revenue  recognition  and give  rise to costs and
estimated  profits in excess of  billings,  and  billings in excess of costs and
estimated  profits.  Costs and  estimated  profits in excess of billing were not
material  at  March  31,  2006  and 2005 and  have  been  included  in  accounts
receivable.  There were no billings in excess of costs and estimated  profits at
March 31, 2006 and 2005.

Subcontract   sales   principally   represent   revenue  related  to  electrical
installation  of wiring and piping  performed by others for the Company when the
Company  acts  as the  prime  contractor  and  sells  its  products  along  with
electrical  installation.  The  subcontract  revenue  element  of  the  contract
(carrying its own gross  margin) is also  recognized  during the entire  project
using  the   percentage-of-completion   method  of   accounting   as  electrical
installation is performed at the job site.

Service revenue from separate service contracts is recognized on a straight-line
basis over the term of the respective contract, which is generally one year. The
unearned service revenue from these contracts is included in current liabilities
as deferred revenue. Non-contract service revenue is recognized when services
are performed.

3. RECLASSIFICATION

Certain accounts in the prior period  financial  statements have be reclassified
for  comparison  purposes to conform to the  presentation  in the current period
financial  statement.  These  classifications  have no effect on the  previously
reported net loss.


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

4.  INVENTORIES

Inventories are priced at the lower of cost (first-in,  first-out) or market and
consist  primarily of raw  materials and at March 31, 2006 reflects an inventory
allowance of $370,000.

5. LONG TERM DEBT

The Company has a $3 million  revolving  credit facility with Hudson United Bank
(the "Credit Facility").  The Credit Facility carries an annual interest rate of
prime plus 1/4% on  outstanding  balances  (7.5% at March 31,  2006) and expires
June 1, 2007.  The Credit  Facility  is secured by all assets of the Company and
all of its  operating  subsidiaries.  Advances  under this Credit  Facility  are
measured  against a borrowing base calculated on eligible trade  receivables and
inventories.

At March 31, 2006,  the full amount of the Credit  Facility was available  under
the  borrowing  base  calculation  and  $1,401,566  was  outstanding  under this
facility.

The Credit Facility includes certain  restrictive  covenants,  which among other
things, impose limitations on declaring or paying dividends,  acquisitions,  and
capital expenditures. The Company is also required to maintain certain financial
ratios and tangible net worth  covenants.  At March 31, 2006 the Company was not
in default with any of its financial covenants.

6. STOCK OPTIONS

In  February  2005,  the Board of  Directors  approved a grant of 130,000  stock
options with a fair market value of $157,094 to certain employees,  officers and
directors of the Company  under the 2004 Stock Option  Plan.  The stock  options
vest  ratably  over five years and are  exercisable  at $2.50 per  share,  which
exercise  price was  above  market  at the time of  grant.  There  were no stock
options granted during the three and six months ended March 31, 2006.

In December 2005, employees exercised stock options to purchase 18,832 shares of
common stock at an exercise price of $.50 per share for a total consideration of
$9,416.  Stock  options  for 1,492  shares  were not  exercised  and  expired on
December 29, 2005.

The Company  adopted the  disclosure  requirements  of  Statement  of  Financial
Accounting   Standard  ("SFAS")  SFAS  No.  123,   "Accounting  for  Stock-Based
Compensation," for stock options and similar equity  instruments  (collectively,
"Options") issued to employees;  however, the Company will continue to apply the
intrinsic  value based  method of  accounting  for options  issued to  employees
prescribed by Accounting  Principles  Board ("APB") Opinion 25,  "Accounting for
Stock  Issues  to  Employees,"  rather  than  the fair  value  based  method  of
accounting prescribed by SFAS No. 123. SFAS No. 123 also applies to transactions
in which an entity  issues its equity  instruments  to acquire goods or services
from  non-employees.  Those transactions must be accounted for based on the fair
value of the consideration  received or the fair value of the equity instruments
issued, whichever is more reliably measured.


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                                   (UNAUDITED)

6. STOCK OPTIONS (CONTINUED)

On December 31, 2002, the Financial  Accounting  Standards Board issued SFAS No.
148, "Accounting for Stock-Based  Compensation-Transition and Disclosure".  SFAS
No. 148 amends SFAS No. 123, to provide an  alternative  method of transition to
SFAS No.  123's  fair  value  method  of  accounting  for stock  based  employee
compensation.  SFAS No.148 also amends the disclosure provisions of SFAS No. 123
and APB Opinion 28, "Interim Financial  Reporting," to require disclosure in the
summary  of  significant  accounting  policies  of the  effects  of an  entity's
accounting policy with respect to stock-based employee  compensation on reported
net income and  earnings per share in annual and interim  financial  statements.
While the statement does not amend SFAS No. 123 to require  companies to account
for  employee  stock  options  using  the  fair  value  method,  the  disclosure
provisions  of SFAS No. 123 are  applicable  to all  companies  with stock based
employee compensation,  regardless of whether they account for that compensation
using the fair value  method of SFAS No. 123, or the  intrinsic  value method of
APB Opinion 25. As required under SFAS No. 148. the following table presents pro
forma net loss and diluted net loss per share as if the fair value-based  method
had been applied to all awards.
<TABLE>
<CAPTION>

                                                            Three Months                      Six Months
                                                          Ended March 31,                  Ended March 31,
                                                         2006            2005            2006             2005
                                                         ----            ----            ----             ----
<S>                                                 <C>              <C>              <C>              <C>
Net (Loss) income as reported                       $   (73,670)     $    40,063      $  (320,931)     $  (115,314)

Less: Fair Value of Options Issued to
Employees and Directors, Net of Income Tax               (4,713)          (5,237)          (9,426)          (5,237)
                                                    -----------      -----------      -----------      -----------
Pro Forma Net (Loss) Income                         $   (78,383)     $    34,826      $  (330,357)     $  (120,551)
                                                    ===========      ===========      ===========      ===========

Weighted Average Basic Shares                         5,210,950        5,165,787        5,201,639        5,151,324

Weighted Average Diluted Shares                       5,210,950        5,165,787        5,201,639        5,151,324
Basic Net (Loss) Earnings Per Share as Reported     $      (.01)     $       .01      $      (.06)     $      (.02)
Basic Pro Forma Net (Loss) Earnings Per Share       $      (.02)     $       .01      $      (.06)     $      (.02)

Diluted Net (Loss) Earnings Per Share as Reported   $      (.01)     $       .01      $      (.06)     $      (.02)
Diluted Pro Forma Net (Loss) Earnings Per Share     $      (.02)     $       .01      $      (.06)     $      (.02)
</TABLE>

The Black-Scholes  option valuation model was used to estimate the fair value of
the options  granted  during the year ended  September  30, 2005.  There were no
options  granted to  employees  during the three and six months  ended March 31,
2006. The model includes subjective input assumptions that can materially affect
the fair value estimates. The model was developed for use in estimating the fair
value of traded  options  that have no vesting  restrictions  and that are fully
transferable.  The expected  volatility  is  estimated  based on the most recent
historical  period of time equal to the  weighted  average  life of the  options
granted.  Principal  assumptions used in applying the Black-Scholes  model along
with the results  from the model for the year ended  September  30, 2005 were as
follows:


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                                   (UNAUDITED)

6. STOCK OPTIONS (CONTINUED)

Assumptions:

Risk-free interest rate                        3.58%
Dividend                                                  0%
Expected life in years                      5 years
Expected volatility                               84%

7. EARNINGS (LOSS) PER SHARE

The Financial  Accounting  Standards Board issued "SFAS" No. 128,  "Earnings Per
Share," which requires  companies to report basic and diluted earnings per share
("EPS")  computations.   Basic  EPS  excludes  dilution  and  is  based  on  the
weighted-average  common  shares  outstanding  and diluted  EPS gives  effect to
potential  dilution  of  securities  that  could  share in the  earnings  of the
Company.
<TABLE>
<CAPTION>

                                                      Three Months ended March 31,           Six Months ended March 31,
Basic EPS Computation                       2006                       2005                      2006              2005
                                    -----------------------------------------------     ------------------------------------
<S>                                           <C>                 <C>                     <C>                 <C>
    Net (loss) Income available to common
       stockholders                           $  (73,670)         $   40,063              $ (320,931)         $ (115,314)
Weighted average outstanding shares            5,210,950           5,165,787               5,201,639           5,151,324
    Basic Earnings (Loss) Income Per Share         ($.01)               $.01                   ($.06)              ($.02)
                                              ===========         ===========             ===========         ===========

Diluted EPS Computation

Net Income (Loss) Income available to common
         stockholders                           $(73,670)            $40,063              $ (320,931)         $ (115,314)
                                              ===========         ===========             ===========         ===========

Weighted-average shares-basic                  5,210,950           5,165,787               5,201,639           5,151,324
                                              -----------         -----------             -----------         -----------
   Plus:  Incremental shares from
               assumed conversions
          Employee Stock Options*                                     33,123
          Warrants*                                                   17,514
                                                                  -----------

    Dilutive common shares                                            50,637
                                                                  -----------
Adjusted weighted average shares diluted       5,210,950           5,216,424               5,201,639           5,151,324
                                              -----------         -----------             -----------         -----------

    Diluted Earning (Loss) Per Share               ($.01)               $.01                   ($.06)              ($.02)
                                              ===========         ===========             ===========         ===========
</TABLE>

* All options and warrants were antidilutive in the three and six months ended
2006.



                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                                   (UNAUDITED)


8. RECENT ACCOUNTING PRONOUNCEMENT

In December 2004, the Financial  Accounting  Standards Board issued SFAS No. 123
(revised  2004),  "Share-Based  Payment,"  which  addresses the  accounting  for
share-based  payment  transactions  in which  an  enterprise  receives  employee
services  in  exchange  for (a)  equity  instruments  of the  enterprise  or (b)
liabilities  that  are  based  on the  fair  value  of the  enterprise's  equity
instruments  or that may be settled by the issuance of such equity  instruments.
SFAS No. 123  (revised  2004)  requires an entity to  recognize  the  grant-date
fair-value  of stock  options  and  other  equity-based  compensation  issued to
employees  in the  income  statement.  SFAS No.  123  (revised  2004)  generally
requires that an entity account for such transactions using the fair-value-based
method, and eliminates the intrinsic value method of accounting in APB 25, which
was permitted under SFAS No. 123, as originally  issued.  The revised  statement
also  requires  entities  to  disclose  information  about  the  nature  of  the
share-based  payment  transactions and the effects of those  transactions on the
financial  statements.  SFAS No.  123  (revised  2004) is  effective  for  small
business  issuers  for the first  annual  reporting  period  that  begins  after
December 15,  2005.  The Company is  currently  evaluating  the impact that this
statement will have on its financial  condition,  results of operations and cash
flows.

<PAGE>

Item 2. Management's Discussion and Analysis or Plan of Operations

LIQUIDITY AND CAPITAL RESOURCES

     The Company has a $3 million  revolving  credit facility with Hudson United
Bank (the "Credit  Facility").  This credit facility carries an interest rate of
prime plus 1/4% and expires June 1, 2007. Advances under the Credit Facility are
measured  against a borrowing base calculated on eligible trade  receivables and
inventories. The Credit Facility is secured by all assets of the Company and all
of its operating subsidiaries.

     The Credit Facility includes various  covenants,  which among other things,
impose  limitations on declaring or paying  dividends,  acquisitions and capital
expenditures.  The Company is also required to maintain certain financial ratios
and tangible  net worth  covenants.  At March 31,  2006,  the Company was not in
default with any of its financial  covenants and at such time the full amount of
the Credit Facility was available under the borrowing base calculation. At March
31, 2006, $1,401,566 was owed under the Credit Facility.

     Net cash  provided by  operations  for the six months  ended March 31, 2006
amounted to $22,627 as compared to $571,056 for the  comparable  prior year. The
decrease in cash provided by operations was primarily due to a $205,617 increase
in the net loss incurred during the six months of 2006 and a $342,962  reduction
in cash inflows related to changes in operating  assets and liabilities in 2006.
These changes in operating  assets and liabilities  reflect  $799,983  increased
collection  of  accounts  receivable  and from a $215,485  increase  in deferred
revenue.  The  increase in deferred  revenue  relates to a change in billing for
service  contracts  to a  quarterly  basis  rather than a monthly  basis.  These
positive  charges in  operating  assets  were  offset by a $275,971  increase in
inventory to take advantage of certain trade discounts, incentive awards, and to
purchase material ahead of price increases,  and by a $5,825 increase in prepaid
expenses and other current assets,  by a $989,916  decrease in accounts  payable
and  accrued   expense   reflecting   pay  down  of  balances   due  to  several
subcontractors  and vendors  and by a $86,718  increase  in other  assets  which
represents  capitalized  cost of  development  of a new  interface  board  for a
proprietary  fire alarm system.  The net cash inflow of $22,627 from  operations
during the 2006 period along with cash on hand was used for equipment  purchases
of $182,553 and to decrease bank borrowing by $47,740.

     The ratio of the Company's current assets to current liabilities  increased
to approximately  3.43 to 1 at March 31, 2006 compared to 3.17 to 1 at March 31,
2005.

<PAGE>


Item 2. Management's Discussion and Analysis or Plan of Operations


Results of Operations

Revenues and Gross Profit


                                   Three Months Ended     Six Months Ended
                                       March 31,           March 31,
                                   2006       2005        2006        2005
                                   ----       ----        ----        ----
                                       (In thousands of dollars)

     Product Revenue              $2,913     $3,568      $5,839     $6,817
     Subcontract Revenue             180        207         303        306
     Service Revenue               1,278      1,137       2,470      2,257
                                  ------     ------      ------     ------
     Total Revenue                $4,371     $4,912      $8,612     $9,380
                                  ======     ======      ======     ======

     Gross Profit Product            815      1,235       1,514      2,001
     Gross Profit Subcontract         32         37          62         56
     Gross Profit Service            633        391       1,119        791
                                  ------     ------      ------     ------
     Total Gross Profit           $1,480     $1,663      $2,695     $2,848
                                  ======     ======      ======     ======

     Gross Margin Product %           28%        35%         26%        29%
     Gross Margin Subcontract %       18%        18%         20%        18%
     Gross Margin Service %           50%        34%         45%        35%



Revenues

The Company's  product  revenues during the three and six months ended March 31,
2006 decreased 18% and 14% from the respective 2005 periods.  These decreases in
product revenues primarily resulted from lower shipments with respect to transit
products  which reflect a lower level of orders and timing of releases  required
by customers.

Subcontract  revenue decreased during the current three and six month periods as
the Company was responsible for various small electrical  installation  projects
in both the 2006 and 2005 periods.

Service  revenues  increased during the three and six month periods of 2006. The
increase in both periods is due to an increase in call-in  service on fire alarm
systems  (replacement  parts and  service  required  by  buildings)  and from an
increase in service contract revenue related to additional  customers and higher
fees on renewal of contracts compared to the prior year periods.

<PAGE>


Item 2.  Management's Discussion and Analysis or Plan of Operations


Gross Profit

Gross  profit on product  revenues  for the three and six months ended March 31,
2006 decreased compared to the respective 2005 periods. The decrease in absolute
gross  profit is  primarily  related to the  declines  in product  sales  (noted
above).  The decrease in gross margin  percentage during the current three month
and six periods in 2006 is related to lower  sales on which to absorb  overhead,
which is relatively fixed in nature.

Gross profit  related to  subcontract  revenues for the three months ended March
31, 2006,  decreased in absolute terms due to the decrease in revenue related to
electrical installation during this period. For the six month period ended March
31, 2006 higher  markups were obtained on electrical  installations  than in the
prior year period.

Gross  profit on service  revenues  for the three and six months ended March 31,
2006,  increased due to the increase in call-in  service and from higher service
contract  revenue  (noted above).  The  improvement in absolute gross profit and
gross margin  percent were primarily  related to the additional  revenue and was
also aided by a decrease  in  technical  staff as the  Company  reevaluated  its
customer support staffing level.

Income Before Tax

The decline in income and increase in loss before  income taxes during the three
and six months  ended March 31, 2006 is  primarily  due to the decrease in gross
profit  caused by  anticipated  lower product  revenue.  The decrease in product
gross profit was partially offset by higher gross profit from service  revenues.
The increase in service gross profit was caused by higher revenue and in part by
a decrease in technical staff. In addition,  selling, general and administrative
expenses  decreased  slightly  during  the three  months  ended  March 31,  2006
compared  to the  prior  year  period  as the  Company  benefited  from  certain
reductions  in work force that were  implemented  in the first quarter of fiscal
2006.  For  the  six  months  ended  March  31,  2006,   selling,   general  and
administrative expenses were higher than the prior year period since the Company
incurred  $92,000 of additional  recruitment  costs and also $77,000 of budgeted
increases  related to advertising and additional staff to develop and strengthen
our sales and marketing,  which is geared to support  higher product  revenues,.
Interest  expense  increased  during 2006 due to both higher  interest rates and
higher  borrowing  levels.  For the three and six  months of 2006,  the  Company
recorded  a loss of  $17,000  and  $42,000,  respectively,  on its equity in the
operating loss of Secure 724 LP.

Tax Provision

The Company's current income tax provision represents the benefit from a net
operating loss carryback as it relates to federal, state and local income taxes.
Deferred taxes represent the net change in deferred tax assets and in a non
current deferred tax liability as it relates to differences between financial
reporting and tax bases of assets and liabilities.

<PAGE>

2. Management's Discussion and Analysis or Plan of Operations


Order Position

The  Company's  order  position,  excluding  service,  at  March  31,  2006  was
$8,300,000 as compared to $8,800,000  at September 30, 2005 and  $11,100,000  at
March 31, 2005.  This order position  includes large orders received for several
subway  complexes  which will be deliverable  over several years as the projects
are released.  While  quotation  activity is brisk,  there is no assurance  when
orders will be received and whether the order position will increase. Due to the
fact that the  Company's  products are sold and installed as part of larger mass
transit construction projects, there is typically a delay between the booking of
the contract and its revenue realization.  The order position includes,  and the
Company   continues  to  bid  on  projects  that  might   include,   significant
subcontractor labor (electrical  installation  performed by others). The Company
expects to be active in seeking  orders  where the Company  would act as a prime
contractor  and  be  responsible  for  management  of the  project  as  well  as
electrical installation.  The Company is also looking for potential acquisitions
that would enable it to add  incremental  products and  customers to over absorb
fixed overheads.

<PAGE>

Item 3. Controls and Procedures

Evaluation  of  disclosure  controls and  procedures.  At the period end of this
Quarterly  Report  on Form  10-QSB,  the  Company's  management,  including  the
Company's Chief  Executive  Officer and Chief  Financial  Officer  evaluated the
effectiveness of the design and operation of the Company's  disclosure  controls
and procedures.  Based on that evaluation, the Company's Chief Executive Officer
and Chief Financial Officer have concluded, as of the end of the quarter covered
by this report, that:

The Company's  disclosure  controls and  procedures  are designed to ensure that
information  required to be  disclosed by the Company in the reports it files or
submits  under  the  Securities  Exchange  Act of 1934 is  recorded,  processed,
summarized and reported within the time periods specified.

That Company's  disclosure  controls and procedures are effective to ensure that
such  information is accumulated and  communicated to the Company's  management,
and made known to the  Company's  Chief  Executive  Officer and Chief  Financial
Officer, to allow timely decision regarding the required disclosure.

There have been no changes in the Company's  internal  controls  over  financial
reporting that have materially  affected,  or is reasonably likely to materially
affect the Company's  internal  controls  over  financial  reporting  during the
period covered by this Quarterly Report.

A control  system,  no matter how well conceived and operated,  can provide only
reasonable,  not absolute,  assurance that the objectives of the control systems
are  met.  Because  of the  inherent  limitations  in  all  control  systems  no
evaluation of control can provide absolute assurance that all control issues, if
any, within a company have been detected. Such limitations include the fact that
human judgment in decision-making  can be faulty and that breakdowns in internal
control can occur because of human  failures,  such as simple errors or mistakes
or intentional circumvention of the established process.

<PAGE>

                           Part II - OTHER INFORMATION

Item 1.  Legal Proceedings.

     Not Applicable

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

     Not applicable

Item 3.  Defaults Upon Senior Securities.

     Not applicable

Item 4.  Submission of Matters to a Vote of Security Holders.

     The Registrant's Annual Meeting of Stockholders was held on March 15, 2006.
At the meeting, Stockholders considered and voted upon:

     (1)  the election of seven (7) directors to Synergx's Board of Directors,

     (2)  the  selection  of  Marcum &  Kliegman  LLP as  Synergx's  independent
          auditiors for the fiscal year ending September 2006

     The seven  nominees  for  director  were  unopposed  and were,  accordingly
elected by the  Stockholders.  The  following  table details the votes cast for,
against and abstained from voting on each matter considered by the Stockholders.
<TABLE>
<CAPTION>


          MATTER                                       FOR                AGAINST              ABSTAINED
         ----------------------                    -----------         ------------          -------------
<S>                                                 <C>                  <C>                      <C>
         Daniel Tamkin                              4,156,490            93,497
         John Poserina                              4,147,790           102,197
         J. Ian Dalrymple                           4,238,096            11,891
         Mark I. Litwin                             4,238,196            11,791
         Harris Epstein                             4,237,996            11,991
         Mitchell J. Sanders                        4,236,896            13,091
         Gary Oreman                                4,237,196            12,791


         Auditors                                   4,232,887             9,105                   7,995
</TABLE>

Item 5.   Other Information.

                  None

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

     (a) Exhibits

     31.1 Certification of Daniel S. Tamkin pursuant to 18 U.S.C.  Section 1350,
          as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     31.2 Certification of John A. Poserina pursuant to 18 U.S.C.  Section 1350,
          as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     32.1 Certifications  of Daniel S. Tamkin and John A.  Poserina  pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002


     (b) Reports on Form 8-K

     None
<PAGE>

                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                              SYNERGX SYSTEMS INC
                                              (Registrant)


                                              /S/ John A. Poserina
                                              ------------------------------
                                              John A. Poserina,
                                              Chief Financial Officer
                                              (Principal Accounting and
                                              Financial Officer), Secretary
                                              And Director
Date:  May 12, 2006