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___________December 31, 2003_______________________


[   ]  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    (IRS employer identification Number)
 or organization)


                  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[ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of February 6, 2004, 4,706,728
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 December 31, 2003                3

  Condensed Consolidated Statements of Operations for the Three Month
       Periods Ended December 31, 2003 and 2002                            5

  Condensed Consolidated Statements of Cash Flows for the Three Month
       Periods Ended December 31, 2003 and 2002                            6

  Notes to Condensed Consolidated Financial Statements                     7

  Item 2.  Management's Discussion and Analysis of Financial
                Condition and Results of Operations                       12

  Item 3.   Controls and Procedures                                       16

Part II - Other Information

  Item 1.  Legal Proceedings.                                             19

  Item 2.  Changes in Securities.                                         19

  Item 3.  Defaults Upon Senior Securities.                               19

  Item 4.  Submission of Matters to a Vote of Security Holders.           19

  Item 5.  Other Information.                                             19

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

  Signatures                                                              20


<PAGE>
                         Part I - FINANCIAL INFORMATION

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)



                                                                  December 31,
                                                                     2003
                                                                --------------
ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                     $   338,805
  Accounts receivable, principally trade, less allowance
     for doubtful accounts of $415,405                            5,300,582
  Inventories                                                     2,672,943
  Deferred taxes                                                    321,200
  Prepaid expenses and other current assets                         318,908
                                                                -----------
                      TOTAL CURRENT ASSETS                        8,952,438
                                                                -----------


PROPERTY AND EQUIPMENT -at cost, less
   accumulated depreciation and amortization of $1,401,093          384,960

OTHER ASSETS                                                        709,455




                                                                -----------
                      TOTAL ASSETS                              $10,046,853
                                                                ===========

See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                                                    December 31,
                                                                        2003
                                                                   -------------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

   Notes and capital leases payable - current portion              $    47,150
   Accounts payable and accrued expenses                             2,336,680
   Deferred revenue                                                    377,391
                                                                   -----------
                      TOTAL CURRENT LIABILITIES                      2,761,221



   Note payable to bank                                              1,560,676
   Notes and capital leases payable - less current portion              40,657
   Deferred taxes                                                       17,900
                                                                   -----------
                      TOTAL LIABILITIES                              4,380,454
                                                                   -----------
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 4,687,394 shares                  4,687
  Capital in excess of par                                           6,296,600
  Accumulated deficit                                                 (634,888)
                                                                   -----------
TOTAL STOCKHOLDERS' EQUITY                                           5,666,399
                                                                   -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $10,046,853
                                                                   ===========
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 December 31,
                                                              2003               2002
                                                           -----------        ------------
<S>                                                        <C>                <C>
Product sales                                              $ 3,018,948        $ 3,291,305
Subcontract sales                                               78,935            270,899
Service revenue                                              1,103,923          1,075,315
                                                           -----------        -----------
Total revenues                                               4,201,806          4,637,519
                                                           -----------        -----------


Cost of product sales                                        2,102,751          2,263,483
Cost of subcontract sales                                       65,515            210,514
Cost of service                                                797,282            727,761
Selling, general and administrative                          1,362,741          1,329,143
Interest expense                                                19,370             10,118
Depreciation and amortization                                   48,443             44,678
Loss on equity  investment                                      20,000
                                                           -----------        -----------
                                                             4,416,102          4,585,697
                                                           -----------        -----------
(Loss) Income before (benefit) provision for
  income taxes                                                (214,296)            51,822
                                                           -----------        -----------
(Benefit) provision for income taxes:
   Current                                                     (62,200)            24,000
   Deferred                                                    (25,800)             6,000
                                                           -----------        -----------
                                                               (88,000)            30,000

                                                           -----------        -----------
Net (Loss) Income                                             (126,296)       $    21,822
                                                           ===========        ===========
(Loss) earnings per common share
  Basic (loss) earnings per share                          $     (0.03)       $      0.01
                                                           ===========        ===========
  Diluted (loss) earnings per share                        $     (0.03)       $      0.01
                                                           ===========        ===========

Weighted average number of common shares outstanding         4,166,103          3,748,850

Weighted average number of common and dilutive
  common shares outstanding                                  4,166,103          3,930,489
</TABLE>


See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>

                         SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      (Unaudited)
<TABLE>
<CAPTION>

                                                                  For the Three Months Ended December 31,
                                                                         2003                2002
                                                                      ----------         ----------
<S>                                                                   <C>                <C>
OPERATING ACTIVITIES
Net (loss) income                                                     $(126,296)         $  21,822
 Adjustments to reconcile net (loss) income to net cash
     used in operating activities:
         Depreciation and amortization                                   48,443             44,678
         Deferred (benefit) tax                                         (25,800)             6,000
         Provision for doubtful accounts                                  4,000            (14,709)
         Loss on equity investment                                       20,000
  Changes in operating assets and liabilities:
    Accounts receivable                                                 489,339           (513,327)
    Inventories                                                        (224,373)          (510,077)
    Prepaid expenses and other current assets                            (2,712)            (7,270)
    Other assets                                                        (35,752)           (52,259)
    Accounts payable and accrued expenses                              (589,584)           945,554
    Deferred revenue                                                    (57,500)            13,421
                                                                      ---------          ---------
NET CASH  USED IN OPERATING ACTIVITIES                                 (500,235)           (66,167)
                                                                      ---------          ---------
INVESTING ACTIVITIES
  Purchases of property and equipment                                    (9,321)           (58,221)
                                                                      ---------          ---------
NET CASH USED IN INVESTING ACTIVITIES                                    (9,321)           (58,221)
                                                                      ---------          ---------
FINANCING ACTIVITIES
  Principal payments on notes payable and capital lease obligations     (69,326)           (39,476)
  Payments and proceeds from revolving line of credit - net             305,176            178,653
  Proceeds from exercise of stock options and warrants                  319,325
                                                                      ---------          ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES                               555,175            139,177
                                                                      ---------          ---------

NET INCREASE  IN CASH AND CASH EQUIVALENTS                               45,619             14,789

Cash and cash equivalents at beginning of period                        293,186            200,201
                                                                      ---------          ---------
Cash and cash equivalents at end of period                            $ 338,805          $ 214,990
                                                                      =========          =========
SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for:
     Income taxes                                                     $ 130,519          $   4,707
     Interest                                                         $  27,200          $  12,147

</TABLE>

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

During the quarter  ended  December 31, 2003 and 2002,  the Company  incurred no
capital lease obligations for the acquisition of equipment.

See accompanying Notes to the Condensed Consolidated Financial Statements


<PAGE>



                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 2003

                                   (UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying unaudited 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 to make the financial  statements  not misleading
have been included. Results for the three months ended December 31, 2003 are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending  September 30, 2004. 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, 2003.

2. REVENUE RECOGNITION

Product sales include sale of systems, which are similar in nature, that involve
fire alarm,  life safety and security (CCTV and card access),  transit (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 or customer  agent.  Product sales are allocated  using a constant
gross profit  percentage over the entire  contract,  and  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  December  31,  2003 and 2002 and have been  included  in  accounts
receivable.  There were no billing in excess of costs and  estimated  profits at
December 31, 2003 and 2002.

Subcontract   sales  principally   represents   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.  Subcontract  revenue  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  maintenance   contracts  is  recognized  on  a
straight-line  basis  over  the  terms  of the  respective  contract,  which  is
generally one year. Non-contract service revenue is recognized when services are
performed.

<PAGE>
                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 2003

                                   (UNAUDITED)


3. INVENTORIES

Inventories are priced at the lower of cost (first-in,  first-out) or market and
consist primarily of raw materials.

4. LONG TERM DEBT

On October 9, 2003, the Company entered into a new $3 million  revolving  credit
facility with Hudson United Bank (the "Credit  Facility").  The Credit  Facility
has an  interest  rate of  prime  plus  1/4% on  outstanding  balances  (4.5% at
December 31, 2003) and expires in October 2005.  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 receivables and inventory.

Initial  proceeds  from the new  Credit  Facility  were used to pay off a former
credit  facility with Citizens  Business  Credit.  At December 31, 2003 the full
amount of the Credit Facility was available under the borrowing base calculation
and $1,561,000 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 December 31, 2003 the Company was
not in default with any of its financial covenants.

5. EXERCISE OF WARRANTS AND STOCK OPTIONS

Mirtronics the largest  stockholder of the Company had  outstanding  warrants to
purchase  620,000  shares of the Company's  Common  Stock,  which were issued in
1998,  and were  exercisable  at any time until December 31, 2003 at an exercise
price of $.51 per share.  Mirtronics  exercised  these warrants in December 2003
for a total consideration of $316,200.

During the three months  ending  December 31, 2003,  employee  stock  options to
purchase 6,250 shares of Common Stock were  exercised for a total  consideration
of $3,125.

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 2003

                                   (UNAUDITED)

6. EARNINGS (LOSS) PER SHARE

The Financial  Accounting Standards Board ("FASB") issued Statement of Financial
Accounting  Standards  ("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.  Diluted  EPS  reflects  the
assumed issuance of shares with respect to the Company's employee stock options,
non-employee  stock options and  warrants.  The Company did not have stock based
compensation for the three months ended December 31, 2003 or 2002
<TABLE>
<CAPTION>

                                                      For the Three Months ended December 31,
Basic EPS Computation                                           2003           2002
                                                         -----------    -----------
<S>                                                      <C>            <C>
    Net (Loss) Income available to common stockholders   $  (126,296)   $    21,822
Weighted average outstanding shares                        4,166,103      3,748,850

    Basic (Loss) EPS                                     $      (.03)   $       .01
                                                         ===========    ===========

Diluted EPS Computation

    (Loss) Income available to common stockholders
         and assumed  conversions                        $  (126,296)   $    21,821
                                                         -----------    -----------

    Weighted-average shares                                4,166,103      3,748,850
                                                         -----------    -----------
    Plus:  Incremental shares from assumed conversions
            Employee Stock Options*                                          40,730
            Warrants*                                                       140,909

            Dilutive potential common shares                     N/A        181,639
                                                         -----------    -----------
    Adjusted weighted-average shares                       4,166,103      3,930,489
                                                         ===========    ===========

    Diluted (Loss) EPS                                   $      (.03)   $       .01
                                                         ===========    ===========
</TABLE>
*All warrants and options were antidilutive in 2003 and 340,000 warrants were
antidilutive for 2002 and therefore not included in the above calculations.

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                       THREE MONTHS ENDED DECEMER 31, 2003

                                   (UNAUDITED)

7. INVESTMENT IN SECURE 724 L.P.

On May 29, 2003, the Company (through a special purpose Nova Scotia  subsidiary)
acquired  25% of the  equity of Secure  724 LP  ("Secure  724 LP"),  an  Ontario
limited partnership, from Nafund Inc. ("Nafund") in consideration of (a) 300,000
shares of Common Stock;  (b) warrants to purchase  50,000 shares of Common Stock
at $1.15 per share for 24 months; (c) agreeing to provide secured loans of up to
Cdn$300,000  (which was  approximately  $225,000  U.S. at December  31, 2003) to
Secure 724 LP pro rata with  equity/loans  to be  provided by Nafund and tied to
certain  development  milestones  and (d) 150,000  shares of Common  Stock to be
issued in the future upon Secure 724 LP  satisfying  the  milestones  and Nafund
providing the funding. Either the Company and/or Nafund can elect not to provide
all or any part of the above funding  (regardless  of whether the milestones are
attained).  If  milestones  are  attained and either the Company  and/or  Nafund
elects not to provide all or part of the above  funding it would have its equity
reduced based on a formula.

The 25%  investment  in Secure 724 L.P.  for 300,000  shares of Common Stock and
warrants to purchase 50,000 shares of Common Stock was valued at $432,500.  This
investment is accounted for utilizing the equity method and is included in OTHER
ASSETS.  The underlying equity of this investment on the date of the transaction
was  approximately  $73,000;  resulting in goodwill of  approximately  $359,500;
which will not be  amortized  but will be tested for  impairment.  For the three
month ended December 31, 2003, a $20,000 adjustment to the equity investment was
recorded to reflect the Company's  25% portion of the  operating  loss of Secure
724 LP.

In connection with initial capital  contribution per the partnership  agreement,
the Company advanced $18,158  (Cdn$25,000) to Secure 724 LP in May 2003 and upon
reaching milestones advanced $125,089  (Cdn$175,000) in August 2003. These notes
receivable bear interest at a rate of 4% and mature in May 2006 and August 2006,
respectively.

This  transaction was submitted to the stockholders of Synergx (as two directors
of Synergx are directors of Secure 724 LP) and approved at its Annual Meeting on
March 26, 2003.

There  can be no  assurance  that  the  investment  in  Secure  724 LP  will  be
profitable.

8. OTHER EVENTS

Report Business Solutions

On November 20, 2003, the Company's Board of Directors  approved entering into a
revised  agreement to organize a new Ontario limited  partnership to acquire and
operate the business of RePort Business Solutions ("RePort") in partnership with
NSC Holdings Inc. ("NSCH") and Nafund Inc. ("Nafund")

This  transaction  was originally  submitted to the  stockholders of Synergx for
approval  at its Annual  Meeting on March 26,  2003  because  two  directors  of
Synergx are directors of Nafund and one is also a director and principal

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 2003

                                   (UNAUDITED)

8. OTHER EVENTS (Continued)

of NSCH.  Management  believes that the revised  structure and consideration are
within the scope of the stockholder approval.

Pursuant to the revised  agreement  (which is subject to approval by NSCH's bank
and completion of definitive documentation),  the Company, through a subsidiary,
would  acquire  from  Nafund,  25% of the  Class B  equity  units of  RePort  in
consideration of the issuance to Nafund of 150,000 shares of Common Stock.

RePort  which  is  currently  a  division  of  NSCH,  provides  software  to the
independent  international  investment  counseling,   portfolio  management  and
brokerage  community.  Located in  Toronto,  Ontario,  RePort's  software  links
external or outsourced trading,  custodian,  broker and bank systems in internal
diverse security and asset management  systems and contact  information  systems
and electronic filing and documentation  systems.  RePort will provide these and
related  back office  services to NSCH (which is an  investment  counselor/money
manager) and to other third party investment counselors,  money managers,  funds
and similar entities.

There can be no assurance however that this transaction will take place.

9. STOCK SPLIT

On July 7, 2003, the Company's Board of Directors declared a 2-for-1 stock split
of its outstanding  stock.  The stock split took the form of a dividend  whereby
the Company  issued on July 25th to each  shareholder  of record at the close of
business  on July 18,  2003 one  additional  share for every  share held on that
date. The financial  statements and footnotes have been adjusted to reflect this
stock split.


<PAGE>


            Item 2. Management's Discussion and Analysis of Financial
                       Condition and Results of Operations


Liquidity and Capital Resources

In October  2003,  the Company  entered into a new $3 million  revolving  credit
facility with Hudson United Bank.  (the "Credit  Facility") This credit facility
has an  interest  rate of prime plus 1/4% and expires in October  2005.  Initial
proceeds  from the new credit  facility  were used to pay off a credit  facility
with Citizens  Business Credit.  Advances under the Credit Facility are measured
against a borrowing base calculated on eligible  receivables and inventory.  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 December 31, 2003, 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
December 31, 2003, $1,561,000 was owed under the Credit Facility.

Net cash (used) by  operations  for the three  months  ended  December  31, 2003
amounted to ($500,235) as compared to ($66,167)  for the  comparable  prior year
period.  The increase in cash being used by  operations  was due to a ($214,000)
operating loss in the 2003 quarter compared to an operating profit of $52,000 in
the  comparable   2002  period  and  due  to  an  increase  in  working  capital
requirements  in order to pay down  accounts  payable  and  accrued  expenses by
$100,245 in excess of  accounts  receivable  collections  and for an increase in
inventory for projects  expected to be shipped after  December 31, 2003. The net
cash outflow of $(500,235)  from  operations  during 2003 coupled with equipment
purchases of ($9,321)  were funded by an increase of $305,176 in bank  borrowing
and from $316,200 of proceeds from exercise of warrants to purchase common stock
by Mirtronics and $3,125 from exercise of stock options by employees to purchase
common stock.

The ratio of the Company's  current assets to current  liabilities  increased to
approximately  3.20 to 1 at December 31, 2003  compared to 2.19 to 1 at December
31, 2002.  The increase in the current  ratio is due to an  improvement  in cash
flow since December 31, 2002 due to the return to profitable  operations through
September 30, 2003,  from $319,325 of proceeds from the exercise of warrants and
employees stock options,  and from a major reduction in 2003 of accounts payable
and accrued  expenses from higher  collections  of accounts  receivable in 2003.
Working  capital  increased to a high level of $6.2 million at December 31, 2003
compared to $5.3 million at December 31, 2002; while bank borrowing increased by
$544,000 since December 31, 2002.

<PAGE>

              2. Management's Discussion and Analysis of Financial
                       Condition and Results of Operations


Results of Operations

Revenues and Gross Profit

                                                  Three Months Ended
                                                     December 31,
                                             --------------------------
                                                2003           2002
                                             (In thousands of dollars)

                 Product Revenue              $3,019         $3,292
                 Subcontract Revenue              79            271
                 Service Revenue               1,104          1,075
                                              ------         ------
                 Total Revenue                $4,202         $4,638

                 Gross Profit Product         $  916         $1,028
                 Gross Profit Subcontract         13             60
                 Gross Profit Service            307            348
                                              ------         ------
                 Total Gross Profit           $1,236         $1,436

                 Gross Profit Product %           30%            31%
                 Gross Profit Subcontract %       16%            22%
                 Gross Profit Service %           28%            32%
                                              -------        -------
                 Total Gross Profit %             29%            31%


Revenues

The Company's  product  revenues during the three months ended December 31, 2003
were $3,019,000  compared to $3,292,000 for the prior year period. This decrease
of 8% was caused in part by certain revenues from New York City Transit projects
where  approvals for  production  and shipment were received late in the quarter
and accordingly  production was delayed.  The decrease in product  revenues also
reflects softness in the Company's  principal New York City market for its other
products.  However,  product revenues in our Dallas,  Texas market area improved
significantly from the very low 2002 level. In the Dallas, Texas market,  higher
product revenues  resulted from certain cost reduction  initiatives  implemented
during the last twelve months which allowed the Company to price aggressively in
that competitive market. We continue to quote business aggressively in both that
area and in New  York  City  Metropolitan  area.  As a  consequence,  new  order
bookings  improved for the three  months ended  December 31, 2003 and new orders
remain at a near record level.

Subcontract  revenue  decreased during the current three month period to $79,000
from $271,000 in the comparable  prior year period.  The Company was responsible
for various small electrical installations during the 2003 period as compared to
two large electrical installation projects in 2002.

Service  revenues  increased during the current three month period primarily due
to an increase in service  contracts  as the Company  expanded  its service base
into the Long Island, New York market area for fire alarm systems.

<PAGE>


              2. Management's Discussion and Analysis of Financial
                       Condition and Results of Operations

Gross Profit

Gross profit on product  revenues for the three months ended  December 31, 2003,
decreased 11% to $916,000 compared to $1,028,000 for the prior year period.  The
decrease in absolute  gross profit is primarily  related to lower  product sales
(noted above) and related  gross margin The decrease in gross profit  percentage
in 2003 to 30% compared to 31% in 2002  reflects  lower sales in which to absorb
certain fixed overhead costs. Over the last two years, certain project engineers
were added to support product  expansion in an effort to increase  product sales
to a higher level.  While the Company's  fixed  overhead cost base increased the
product  revenue  increase did not occur by December 31, 2003. A combination  of
lower  sales  and  increased  overhead  contributed  to  a  lower  gross  margin
percentage.

Gross profit related to subcontract revenues for the three months ended December
31, 2003  decreased  in absolute  terms as the  Company  was  responsible  for a
smaller  amount of  electrical  installation.  In  addition,  the  gross  profit
percentage  was lower during the three months of 2003 as mark ups on  electrical
installations were lower due to the competitive environment during this period.

Gross profit from service  revenues  during the three months ended  December 31,
2003  decreased  in spite of the increase in service  revenue.  The gross profit
decline  was due from an  increase  in  technicians  to support  higher  service
revenue, salary increases and technicians moving up to higher paying categories.
These cost increases  could not be fully absorbed by price  increases to service
contracts.

Income Before Tax

The decline in income before income taxes during the three months ended December
31,  2003 is  primarily  due to the  decrease  in gross  profit  caused by lower
product  revenues and related gross margin and from the relative fixed nature of
certain overhead costs (noted above). This decline in income before tax was also
caused  by lower  gross  profit  from  subcontract  revenues  and  from  service
revenues. In addition,  selling,  general and administrative  expenses increased
(3%) to support  higher  product  sales and from higher  insurance  costs during
2003. Interest expense increased during 2003 due to higher borrowing levels. For
2003, the Company also recorded a loss of $20,000 on its equity in the operating
loss of Secure 724 LP.

Tax Provision

The Company's current income tax provision  represents federal,  state and local
income taxes. Deferred taxes represent the net change in deferred tax assets and
non current  deferred tax liability as it related to certain timing  differences
of book and tax deductions.

Order Position

The  Company's  order  position,  excluding  service,  at December  31, 2003 was
$16,150,000 as compared to $16,500,000 at September 30, 2003 and  $12,620,000 at
December 31, 2002.  This near record order  position,  reflects recent large new
orders  received for several subway  complexes  which will be  deliverable  over
several  years as the projects are released and reflects  recent  increased  new
orders in our Dallas, Texas market area.

<PAGE>


              2. Management's Discussion and Analysis of Financial
                       Condition and Results of Operations


In addition,  the backlog includes $1.8 million of orders for  communication and
announcement  systems  from  several  transit  car  manufacturers,  that will be
shippable  over the next 15 month  period.  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.

<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
report 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.


<PAGE>


                           Part II - OTHER INFORMATION


Item 1.  Legal Proceedings.

                  Not Applicable

Item 2.  Changes in Securities.

     Mirtronics the largest stockholder of the Company had outstanding  warrants
to purchase 620,000 shares of the Company's  Common Stock,  which were issued in
1998,  and were  exercisable  at any time until December 31, 2003 at an exercise
price of $.51 per share.  Mirtronics  exercised  these warrants in December 2003
for a total consideration of $316,200.

Item 3.  Defaults Upon Senior Securities.

                  Not applicable

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

                  Not applicable

Item 5.   Other Information.

     Subsequent  to  December  31,  2003,  the  Company  filed a  post-effective
amendment No. 1 to Form S-8  Registration  Statement  (Reoffer  Prospectus)  for
86,322  shares of Common Stock which  provides for the sales  thereof by certain
executive officers and directors.

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  pursuant  to  Section  906  of  the
     Sarbanes-Oxley Act of 2002

32.2 Certifications  of  John  A.  Poserina  pursuant  to  Section  906  of  the
     Sarbanes-Oxley Act of 2002


   (b) Reports on Form 8-K

                  None
Other

     The information in Item 2 and Item 6 regarding  shares of Common Stock have
been  adjusted  for a 2 for 1 stock split that took the form of a dividend  that
was distributed on July 25, 2003.

<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:  February 12, 2004