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, 2005
                                               -----------------

[   ]  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[    ]

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 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 December 31, 2005              3

     Condensed Consolidated Statements of Operations for the Three
          Months Ended December 31, 2005 and 2004                           5

     Condensed Consolidated Statements of Cash Flows for the Three
          Months Ended December 31, 2005 and 2004                           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                             18

     Signatures                                                            20


<PAGE>
                     SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                    December 31,
                                                                        2005
                                                                      --------
ASSETS
<S>                                                                <C>
CURRENT ASSETS
  Cash and cash equivalents                                        $   841,891
  Accounts receivable, principally trade, less allowance
     for doubtful accounts of $323,523                               5,536,035
  Inventories net                                                    2,768,191
  Deferred taxes                                                       297,700
  Prepaid expenses and other current assets                            199,747
                                                                   -----------
                                            TOTAL CURRENT ASSETS     9,643,564
                                                                   -----------


PROPERTY AND EQUIPMENT -at cost, less
   accumulated depreciation and amortization of $1,700,975             697,821

OTHER ASSETS                                                           647,820




                                                                   -----------
                                                    TOTAL ASSETS   $10,989,205
                                                                   ===========
</TABLE>

See accompanying Notes to the  Condensed Consolidated Financial Statements


<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     December 31,
                                                                        2005
                                                                       ------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
<S>                                                                <C>
   Notes payablee - current portion                                $    34,534
   Accounts payable and accrued expenses                             2,194,612
   Deferred revenue                                                    823,823
                                                                   -----------
                                       TOTAL CURRENT LIABILITIES     3,052,969



   Note payable to bank                                              1,226,310
   Notes payable - less current portion                                 16,893
   Deferred taxes                                                       90,000
                                                                   -----------
                                               TOTAL LIABILITIES     4,386,172
                                                                   -----------
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                                                 (206,170)
                                                                   -----------
TOTAL STOCKHOLDERS' EQUITY                                           6,603,033
                                                                   -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $10,989,205
                                                                   ===========
</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  Three Months Ended December 31,
                                                           2005            2004
                                                          ------         --------
<S>                                                    <C>            <C>
Product sales                                          $ 2,926,693    $ 3,248,383
Subcontract sales                                          122,897         98,133
Service revenue                                          1,191,593      1,120,387
                                                       -----------    -----------
Total revenues                                           4,241,183      4,466,903
                                                       -----------    -----------


Cost of product sales                                    2,227,500      2,482,189
Cost of subcontract sales                                   92,905         79,681
Cost of service revenue                                    705,379        720,534
Selling, general and administrative                      1,530,110      1,358,191
Interest expense                                            27,076         22,901
Depreciation and amortization                               43,474         44,784
Loss on equity investment                                   25,000         10,000
                                                       -----------    -----------
                                                         4,651,444      4,718,280
                                                       -----------    -----------

(Loss) before (benefit)  from income taxes                (410,261)      (251,377)
                                                       -----------    -----------
(Benefi)t from income taxes:
   Current                                                (143,000)       (79,000)
   Deferred                                                (20,000)       (17,000)
                                                       -----------    -----------
                                                          (163,000)       (96,000)

                                                       -----------    -----------
Net (Loss)                                                (247,261)      (155,377)
                                                       ===========    ===========
(Loss) per common share
   Basic (Loss) per share                                   $(0.05)        $(0.03)
                                                       ===========    ===========
   Diluted (Loss) per share                                 $(0.05)        $(0.03)
                                                       ===========    ===========

Weighted average number of common shares outstanding     5,192,327      5,136,862

Weighted average number of common and dilutive
  common share equivalents outstanding                   5,192,327      5,136,862
</TABLE>

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

             SYNERGX SYSTEMS INC. AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF CASH FLOWS

                            (Unaudited)
<TABLE>
<CAPTION>

                                                                For the Three Months
                                                                 Ended December 31,
                                                                 2005          2004
                                                               -------        ------
OPERATING ACTIVITIES
<S>                                                         <C>             <C>
Net  (Loss)                                                 $ (247,261)     $(155,377)
 Adjustments to reconcile net  (loss) to net cash
     provided by operating activities:
         Depreciation and amortization *                        52,685         57,757
         Deferred tax  (benefit)                               (20,000)       (17,000)
         Loss on equity investment                              25,000         10,000
         Tax benefit from employee stock option exercise        10,000
  Changes in operating assets and liabilities:
    Accounts receivable, net                                 1,557,082        943,411
    Inventories                                               (360,288)        (2,117)
    Prepaid expenses and other current assets                   68,147        (11,429)
    Other assets                                               (84,876)        14,252
    Accounts payable and accrued expenses                     (717,110)      (294,062)
    Deferred revenue                                           269,488         (9,368)
                                                            ----------      ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES                      552,867        536,067
                                                            ----------      ---------
INVESTING ACTIVITIES
  Purchases of property and equipment                          (76,198)      (121,070)
                                                            ----------      ---------
NET CASH (USED IN) INVESTING ACTIVITIES                        (76,198)      (121,070)
                                                            ----------      ---------
FINANCING ACTIVITIES
  Principal payments on notes payable                          (11,848)       (16,767)
  Payments and proceeds from note payable bank - net          (222,996)      (700,000)
  Proceeds from exercise of stock options and warrants           9,416
                                                            ----------      ---------
NET CASH (USED IN) FINANCING ACTIVITIES                       (225,428)      (716,767)
                                                            ----------      ---------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS           251,241       (301,770)

Cash and cash equivalents at beginning of period               590,650        928,507
                                                            ----------      ---------
Cash and cash equivalents at end of period                  $  841,891      $ 626,737
                                                            ==========      =========
SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for:
     Income taxes                                           $   42,511      $   5,455
     Interest                                               $   27,076      $  22,901
</TABLE>

NON-CASH INVESTING AND FINANCING ACTIVITIES

Included  in the  period  ended  December  31,  2005,  was  the  purchase  of an
automobile for $25,559

*  Depreciation  of $9,211 and $12,973 is included in cost of product  sales for
the three months ended December 31, 2005 and 2004, 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 months
ended December 31, 2005 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  December  31,  2005 and 2004 and have been  included  in  accounts
receivable.  There were no billings in excess of costs and estimated  profits at
December 31, 2005 and 2004.

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.

<PAGE>

                      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  December  31,  2005  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 December 31, 2005) 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 December 31, 2005, the full amount of the Credit Facility was available under
the  borrowing  base  calculation  and  $1,226,310  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, 2005 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 months ended December 31, 2005.

In December 2005, employees exercised stock options to purchase 18,832 shares of
common stock at a 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.

<PAGE>

                      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.


                                                  Quarter Ended December 31,
                                                    2005              2004
Net (Loss) as reported
                                                $(247,261)          $(155,377)
Less: Fair Value of Options issued to
  employees and directors, net of income tax       (4,713)                  -
                                                  --------          ----------
Pro Forma Net (Loss)                            $(251,974)          $(155,377)
                                                ==========          ==========

Weighted Average Basic Shares                   5,192,327           5,136,862

Weighted Average Diluted Shares                 5,192,327           5,136,862

Basic Net (Loss) Per Share as Reported              $(.05)              $(.03)
Basic Pro Forma Net (Loss) per share                $(.05)              $(.03)

Diluted Net (Loss) Per Share as Reported            $(.05)              $(.03)
Diluted Pro Forma Net (Loss) per share              $(.05)              $(.03)

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 quarters  ended  December 31, 2005 and
2004. 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:

<PAGE>

                      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>
                                                      For the Three Months ended December 31,
Basic EPS Computation                                      2005             2004
                                                           ----             ----
<S>                                                  <C>                 <C>
  Net (Loss)                                         $  (247,261)        $(155,377)
Weighted average outstanding shares                    5,192,327         5,136,862

  Basic (Loss) per share                                   $(.05)            $(.03)
                                                           ======            ======

Diluted EPS Computation
  Net (loss)                                           $(247,261)        $(155,377)
                                                       ----------        ----------

  Weighted-average shares                              5,192,327         5,136,862
                                                       ----------        ----------
Plus:  Incremental shares from assumed conversions
        Employee Stock Options*
        Warrants*
        Dilutive potential common shares                     N/A               N/A
                                                            ----              ----
  Adjusted weighted-average shares                     5,192,327         5,136,862
                                                       ==========        ==========

  Diluted (Loss) per share                                 $(.05)            $(.03)
                                                           ======            ======
</TABLE>


*Warrants  were  only  outstanding  in  2004.

<PAGE>

                      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),  "Shared-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 December 31, 2005, 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, 2005, $1,226,310 was owed under the Credit Facility.

     Net cash  provided by  operations  for the three  months  December 31, 2005
amounted to $552,867 as compared to $536,067 for the comparable  prior year. The
increase in cash provided by operations was primarily due to a $613,671 increase
in collection of accounts  receivable  and from a $278,856  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 $358,171  increase in
inventory to take advantage of certain trade discounts, incentive awards, and to
purchase  material ahead of price increases;  by a $423,048 decrease in accounts
payable and accrued  expense;  and by a $99,128  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 $552,867 from operations
during the 2005 period along with cash on hand was used for equipment  purchases
of $76,198 and to decrease bank borrowing by $222,996.

     The ratio of the Company's current assets to current liabilities  increased
to  approximately  3.15  to 1 at  December  31,  2005  compared  to 2.35 to 1 at
December  31, 2004.  The  increase in the current  ratio is due to our bank debt
being a long-term liability in 2005 and a current liability in 2004.

<PAGE>

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


Results of Operations

Revenues and Gross Profit

                                                       Three Months Ended
                                                          December 31,
                                                          ------------
                                                         2005      2004
                                                    (In thousands of dollars)

                      Product Revenue                  $2,927    $3,249
                      Subcontract Revenue                 123        98
                      Service Revenue                   1,191     1,120
                                                         -----     -----
                      Total Revenue                    $4,241    $4,467

                      Gross Profit Product               $699   $   766
                      Gross Profit Subcontract             30        18
                      Gross Profit Service                486       400
                                                          ---       ---
                      Total Gross Profit               $1,215    $1,184

                      Gross Profit Product %               24%       24%
                      Gross Profit Subcontract %           24%       18%
                      Gross Profit Service %               41%       36%
                                                           ---       ---
                      Total Gross Profit %                 29%       27%


Revenues

The Company's  product  revenues during the three months ended December 31, 2005
were $2,927,000  compared to $3,249,000 for the prior year period. This decrease
of 10% is primarily due to lower shipments with respect to New York City Transit
projects compared to the prior year period.

Subcontract  revenue increased during the current three month period to $123,000
from $98,000 in the comparable  prior year period.  The Company was  responsible
for  various  small  electrical  installations  during  both  the  2005 and 2004
periods.

Service  revenues  increased during the current three month period primarily due
to an increase in call-in service on fire alarm systems  (replacement  parts and
service required by buildings).
<PAGE>

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

Gross Profit

Gross profit on product  revenues for the three months ended  December 31, 2005,
decreased 9% to $699,000  compared to $766,000  for the prior year period.  This
decrease in absolute  gross  profit is  primarily  related to the 10% decline in
product  revenues  in  2005.  The  gross  profit  percentage  in 2005 of 24% is
consistent  with 2004.

Gross profit related to subcontract revenues for the three months ended December
31, 2005 increased in absolute  terms due to the increase in revenue  related to
electrical  installation.  In addition,  the gross profit  percentage was higher
during the three  months of 2005 as mark ups on  electrical  installations  were
higher than the prior year period.

Gross  profit from  service  revenues  increased  during the three  months ended
December 31, 2005 due to the increase in call-in service  revenue.  The absolute
gross profit and gross margin percent  increases were primarily  related to this
additional  revenue  and from a  decrease  in  technical  staff  as the  Company
reevaluated its customer support staffing level.

Income Before Tax

The increase in loss before income taxes during the three months ended  December
31, 2005 was  consistent  with  budget and is due to a decrease in gross  profit
caused by  anticipated  lower  product  revenues  and from  $56,000 of  budgeted
severance payments (included in product and service costs) incurred in 2005. The
decrease  in  product  gross  margin  was  offset by higher  gross  margin  from
subcontract and service revenues (noted above).  In addition,  selling,  general
and administrative expenses increased $172,000, or 13%, and reflects $106,000 of
budgeted  cost  increases  related to  additional  sales  staff to  develop  and
strengthen  our sales and  marketing  and is geared to  support  higher  product
revenues,  and from a $43,000  increase in recruitment  costs.  Interest expense
increased  during 2005 due to higher interest rates.  For 2005, the Company also
recorded a loss of $25,000 on its equity in the operating  loss of Secure 724 LP
compared to a loss of $10,000 in 2004.

Tax Provision

The  Company's  current  income tax  benefit  represents  the  benefit  from 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 non current
deferred tax liability as it relates to certain  timing  differences of book and
tax deductions.

<PAGE>

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


Order Position

The  Company's  order  position,  excluding  service,  at December  31, 2005 was
$8,605,000 as compared to $8,800,000  at September 30, 2005 and  $11,568,000  at
December 31,  2004.  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.


<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.

                     None

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:  February 14, 2006