U.S. SECURITIES AND EXCHANGE
                                   COMMISSION
                             Washington, D. C. 20549
                          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, 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 identification
organization)                                                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 May 4, 2005,  5,192,118
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, 2005                   3

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

    Condensed Consolidated Statements of Cash Flows for the Three and
         Six Months Ended March 31, 2005 and 2004                            7

    Notes to 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.  Changes in Securities.                                         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

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                   (Unaudited)


                                                                  March 31,
                                                                    2005
                                                                 ----------
ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                     $   582,262
  Accounts receivable, principally trade, less allowance
     for doubtful accounts of $323,523                            5,702,704
  Inventories                                                     2,588,783
  Deferred taxes                                                    265,200
  Prepaid expenses and other current assets                         480,113
                                                                -----------
                 TOTAL CURRENT ASSETS                             9,619,062
                                                                -----------


PROPERTY AND EQUIPMENT -at cost, less
   accumulated depreciation and amortization of $1,598,732          621,449

OTHER ASSETS                                                        645,146




                                                                -----------
                 TOTAL ASSETS                                   $10,885,657
                                                                ===========

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

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                   (Unaudited)


                                                                  March 31,
                                                                    2005
                                                                  ---------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES


   Notes and capital leases payable - current portion          $    21,938
   Accounts payable and accrued expenses                         2,466,700
   Deferred revenue                                                543,898
                                                               -----------
                  TOTAL CURRENT LIABILITIES                      3,032,536



   Note payable to bank                                          1,215,676
   Notes and capital leases payable - less current portion          11,509
   Deferred taxes                                                   65,500
                                                               -----------
                  TOTAL LIABILITIES                              4,325,221
                                                               -----------
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 5,192,118 shares              5,192
  Capital in excess of par                                       6,759,595
  Accumulated deficit                                             (204,351)
                                                               -----------
TOTAL STOCKHOLDERS' EQUITY                                       6,560,436
                                                               -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $10,885,657
                                                               ===========

See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)



                                                        For the Six Months
                                                          Ended March 31,
                                                        2005          2004
                                                       ------        ------

Product sales                                        $6,816,678    $7,179,266
Subcontract sales                                       305,533       143,535
Service revenue                                       2,257,139     2,269,176
                                                     ----------    ----------
Total revenues                                        9,379,350     9,591,977
                                                     ----------    ----------


Cost of product sales                                 4,789,938     4,918,277
Cost of subcontract sales                               250,066       119,668
Cost of service revenue                               1,466,132     1,634,977
Selling, general and administrative                   2,873,591     2,870,519
Interest expense                                         37,422        40,495
Depreciation and amortization                           115,515        88,447
Loss on equity  investment                               22,000        32,000
                                                     ----------    ----------
                                                      9,554,664     9,704,383
                                                     ----------    ----------

(Loss) before (benefit) from income taxes              (175,314)     (112,406)
                                                     ----------    ----------
(Benefit) from  income taxes:
   Current                                              (55,000)      (27,800)
   Deferred                                              (5,000)      (17,200)
                                                     ----------    ----------
                                                        (60,000)      (45,000)

                                                     ----------    ----------
Net (Loss)                                           $ (115,314)   $  (67,406)
                                                     ==========    ==========
(Loss) Per Common Share:
  Basic (Loss) Per Share                             $    (0.02)   $    (0.02)
                                                     ==========    ==========
  Diluted (Loss) Per Share                           $    (0.02)   $    (0.02)
                                                     ==========    ==========

Weighted average number of common shares outstanding  5,151,324     4,441,037

Weighted average number of common and dilutive
   common share equivalents outstanding               5,151,324     4,441,037


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

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)


                                                         For the  Three Months
                                                            Ended March 31,
                                                          2005         2004
                                                         -----        ------

Product sales                                          $3,568,295   $4,160,318
Subcontract sales                                         207,400       64,600
Service revenue                                         1,136,752    1,165,253
                                                       ----------   ----------
Total revenues                                          4,912,447    5,390,171
                                                       ----------   ----------


Cost of product sales                                   2,320,722    2,815,526
Cost of subcontract sales                                 170,385       54,153
Cost of service revenue                                   745,598      837,695
Selling, general and administrative                     1,515,400    1,507,778
Interest expense                                           14,521       21,125
Depreciation and amortization                              57,758       40,004
Loss on equity  investment                                 12,000       12,000
                                                       ----------   ----------
                                                        4,836,384    5,288,281
                                                       ----------   ----------

Income before provision for income taxes                   76,063      101,890
                                                       ----------   ----------
Provision for income taxes:
   Current                                                 24,000       34,400
   Deferred                                                12,000        8,600
                                                       ----------   ----------
                                                           36,000       43,000

                                                       ----------   ----------
Net Income                                             $   40,063   $   58,890
                                                       ==========   ==========
Income per common share
   Basic income per share                              $     0.01   $     0.01
                                                       ==========   ==========
   Diluted income per share                            $     0.01   $     0.01
                                                       ==========   ==========

Weighted average number of common shares outstanding    5,165,787    4,718,991

Weighted average number of common and dilutive
  common shares outstanding                             5,216,424    5,178,703

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 Six Months
                                                                           Ended March 31,
                                                                           2005          2004
                                                                          ------        ------
OPERATING ACTIVITIES
<S>                                                                    <C>           <C>
Net (loss)                                                             $(115,314)    $ (67,406)
 Adjustments to reconcile net (loss)to net cash
     provided by(used in) operating activities:
         Depreciation and amortization                                   115,515        88,447
         Deferred tax  (benefit)                                          (5,000)      (17,200)
         Loss on equity investment                                        22,000        32,000
  Changes in operating assets and liabilities:
    Accounts receivable, net                                             690,128       (27,944)
    Inventories                                                           73,035      (672,493)
    Prepaid expenses and other current assets                           (201,439)     (209,936)
    Other assets                                                          (5,757)      (25,204)
    Accounts payable and accrued expenses                                (40,010)      161,591
    Deferred revenue                                                      37,898       (25,638)
                                                                        --------      --------
NET CASH PROVIDED BY(USED IN)OPERATING ACTIVITIES                        571,056      (763,783)
                                                                        --------      --------
INVESTING ACTIVITIES
  Purchases of property and equipment                                   (211,466)      (30,004)
                                                                        --------      --------
NET CASH (USED IN) INVESTING ACTIVITIES                                 (211,466)      (30,004)
                                                                        --------      --------
FINANCING ACTIVITIES
  Principal repayments on notes payable and capital lease obligations    (33,463)      (89,435)
  Payments and proceeds from note payable bank - net                    (700,000)      590,174
  Proceeds from exercise of stock options and warrants                    27,628       351,610
                                                                        --------      --------
NET CASH (USED IN)PROVIDED BY FINANCING ACTIVITIES                      (705,835)      852,349
                                                                        --------      --------

NET (DECREASE)INCREASE IN CASH AND CASH EQUIVALENTS                     (346,245)       58,562

Cash and cash equivalents at beginning of period                         928,507       293,186
                                                                        --------      --------
Cash and cash equivalents at end of period                              $582,262      $351,748
                                                                        ========      ========
SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for:
     Income taxes                                                       $  5,455      $130,519
     Interest                                                           $ 40,163      $ 48,277
</TABLE>


See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                    SIX MONTHS ENDED MARCH 31, 2005 AND 2004

                                   (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  to make  the
financial  statements  not misleading  have been  included.  Results for the six
months ended March 31, 2005 are not  necessarily  indicative of the results that
may be expected  for the fiscal  year ending  September  30,  2005.  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,
2004.

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 (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  March  31,  2005  and 2004 and  have  been  included  in  accounts
receivable.  There were no billings in excess of costs and estimated  profits at
March 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.  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 service contracts is recognized on a straight-line
basis over the term 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

                    SIX MONTHS ENDED MARCH 31, 2005 AND 2004

                                   (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

The Company has a $3 million  revolving  credit facility with Hudson United Bank
(the "Credit  Facility").  The Credit Facility carries an interest rate of prime
plus 1/4% on outstanding  balances (5.75% at March 31, 2005) which was to expire
in October 2005. In April, 2005, the Company and its bank agreed to an extension
in its credit facility until 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, 2005,  the full amount of the Credit  Facility was available  under
the  borrowing  base  calculation  and  $1,215,676  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, 2005 the Company was not
in default with any of its financial covenants.

5. 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 six months ended March 31, 2004.

In  October  1995,   Statement  of  Financial   Accounting  Standards  No.  123,
"Accounting for Stock-Based Compensation:  (SFAS 123") prescribes accounting and
reporting standards for all stock-based  compensation plans,  including employee
stock  options,  restricted  stock,  employee  stock  purchase  plans  and stock
appreciation  rights. SFAS 123 requires  compensation expense to be recorded (i)
using the new fair value  method or (ii)  using the  existing  accounting  rules
prescribed by Accounting  Principles Board Opinion No. 25, "Accounting for Stock
Issued to  Employees"  ("APB  25") and  related  interpretations  with pro forma
disclosure  of what net income  and  earning  per share  would have been had the
Company  adopted the new fair value method.  The Company  intends to continue to
account for its stock based compensation plans in accordance with the provisions
of APB 25.

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                    SIX MONTHS ENDED MARCH 31, 2005 AND 2004

                                   (UNAUDITED)

5. STOCK OPTIONS (Continued)

The Company  adopted SFAS No. 148  "Accounting  for  Stock-Based  Compensation -
Transition and  Disclosure.  This statement  amended SFAS 123,  "Accounting  for
Stock-Based Compensation." As permitted under SFAS 123, the Company continues to
apply APB 25. As required under SFAS 148, the following table presents pro forma
net income (loss) attributable to and diluted net income (loss) per shares as if
the fair value-based method had been applied to all awards.
<TABLE>
<CAPTION>

                                             Three Months Ended March 31,           Six Months Ended March 31
                                                2005               2004             2005                 2004
<S>                                          <C>                  <C>             <C>                 <C>
Net (Loss) Income                            $40,063              $58,890         $(115,314)          $(67,406)
Fair Value of Options issued to
employees and directors                        5,237                                  5,237
                                               -----                                  -----
Pro Forma Net Loss                           $34,826              $58,890         $(120,551)          $(67,406)
Weighted Average Shares Outstanding        5,165,787            4,718,991         5,151,324          4,441,037
Pro Forma Net Income (Loss)                     $.01                 $.01             $(.02)             $(.02)
</TABLE>


The Black-Scholes  option valuation model was used to estimate the fair value of
the options  granted  during the six months ended March 31, 2005.  There were no
options  granted to employees  during the six months  ended March 31, 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.  For example,  the expected  volatility is estimated  based on the
most recent  historical period of time equal to the weighted average life of the
options   granted.   Options  issued  under  the  Company's  option  plans  have
characteristics that differ from traded options. In the Company's opinion,  this
valuation  model does not  necessarily  provide a reliable single measure of the
fair value of its employee stock options. Principal assumptions used in applying
the Black-Scholes model along with the results from the model were as follows:

Assumptions:

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

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                    SIX MONTHS ENDED MARCH 31, 2005 AND 2004

                                   (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 option
plan and warrants.
<TABLE>
<CAPTION>

                                                   Three Months ended March 31,           Six Months ended March 31,
Basic EPS Computation                            2005                   2004             2005                 2004
                                             ----------------------------------     ------------------------------------
<S>                                            <C>                  <C>               <C>                 <C>
   Net Income (Loss) available to common
      stockholders                               $40,063              $58,890         $(115,314)            (67,406)
Weighted average outstanding shares            5,165,787            4,718,991         5,151,324           4,441,037
    Basic Earnings (Loss) Per Share                 $.01                 $.01             ($.02)              ($.02)
                                                    ====                 ====             ======              ======

Diluted EPS Computation

Net Income (Loss) available to common
         stockholders                            $40,063              $58,890         $(115,314)           $(67,406)
                                                 =======              =======         ==========           =========

Weighted-average shares-basic                  5,165,787            4,718,991         5,151,324           4,441,037
                                               ---------             --------         ---------           ---------
   Plus: Incremental shares from
           assumed conversions
         Employee Stock Options*                  33,123              147,680
         Warrants*                                17,514              312,032
                                                  ------              -------
    Dilutive common shares                        50,637              459,712
                                                  ------              -------
Adjusted weighted average shares diluted       5,216,424            5,178,703         5,151,324           4,441,037
                                               ---------            ---------         ---------           ---------

    Diluted Earning (Loss) Per Share                $.01                 $.01             ($.02)              ($.02)
                                                    ====                 ====              =====              ======

*    All options and warrants were antidilutive in the six months ended 2005 and
     2004.
</TABLE>


7. RECENT ACCOUNTING PRONOUNCEMENT

In December  2004,  the FASB 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

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                    SIX MONTHS ENDED MARCH 31, 2005 AND 2004

                                   (UNAUDITED)


7. RECENT ACCOUNTING PRONOUNCEMENT (continued)

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 interim or 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,  or 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% which was to expire in October  2005.  In April 2005,  the Company and
its bank  agreed to an  extension  in its  credit  facility  until 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,  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 March
31, 2005, $1,215,676 was owed under the Credit Facility.

Net cash provided by operations for the six months ended March 31, 2005 amounted
to  $571,056  as  compared  to  cash  used in  operations  of  $763,783  for the
comparable prior year. The increase in cash provided by operations was primarily
due to a $718,072  increase  in  collection  of accounts  receivable  and from a
$745,528 decrease in inventory  purchases.  The net cash inflow of $571,056 from
operations during the 2005 period along with cash on hand was used for equipment
purchases of $211,000 and to decrease bank borrowing by $700,000. During the six
months of 2005,  proceeds of $27,628  were  received  from the exercise of stock
options by employees to purchase  common stock under the Company's stock options
plan.  During  the prior year six month  period  financing  activities  included
$316,200 of proceeds  from the exercise of warrants to purchase  common stock by
Genterra  Inc. and $35,410  from the  exercise of stock  options by employees to
purchase common stock under the Company's stock option plan.

The ratio of the Company's  current assets to current  liabilities  increased to
approximately  3.17 to 1 at March 31,  2005  compared  to 2.88 to 1 at March 31,
2004.


<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,
                                          2005     2004         2005       2004
                                          ----     ----         ----       ----
                                               (In thousands of dollars)

Product Revenue                         $3,568     $4,160     $6,817     $7,179
Subcontract Revenue                        207         65        306        144
Service Revenue                          1,137      1,165      2,257      2,269
Total Revenue                            4,912      5,390      9,380      9,592

Gross Profit Product                     1,247      1,345      2,027      2,261
Gross Profit Subcontract                    37         10         56         24
Gross Profit Service                       391        328        791        634
Total Gross Profit                       1,675      1,683      2,874      2,919

Gross Margin Product %                      35%        32%        30%        31%
Gross Margin Subcontract %                  18%        15%        18%        17%
Gross Margin Service %                      34%        28%        35%        28%

Revenues

The Company's  product  revenues during the three and six months ended March 31,
2005 decreased 14% and 5% from the respective  2004 periods.  These decreases in
product  revenues  resulted  from slow  economic  activity in both the Company's
principal New York City market and its Dallas,  Texas market. The major decrease
in product  revenue during the three and six months periods is from a decline in
product  shipments in the Dallas,  Texas market area. In the Dallas market area,
the Company has put into effect certain cost reduction  initiatives  with a view
towards pricing  aggressively in that competitive  market place and has realized
increased bookings over the past 30 days.

Subcontract  revenue increased during the current three and six month periods as
the Company was responsible for several large  electrical  installations  during
the 2005 periods compared to various small electrical  installation  projects in
2004 periods.

Service  revenues  decreased  slightly during the three and six month periods of
2005.  The decrease in both  periods is  primarily  due to a decrease in call-in
service revenue compared to the prior 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,
2005 decreased 7% and 10% compared to the respective 2004 periods.  The decrease
in absolute  gross profit is primarily  related to lower  product sales from the
Dallas,  Texas market  (noted  above).  The increase in gross margin  percentage
during the current  three  month  period is related to several  projects  having
higher than normal gross  margins.  The decrease in the gross margin  percentage
during the six month period is due to lower sales with increased overhead.

Gross profit related to subcontract  revenues for the three and six months ended
March 31, 2005,  increased in absolute terms as the Company was  responsible for
larger  electrical   installation   projects.  In  addition,  the  gross  margin
percentage  was higher during the three and six months of 2005 as higher markups
were obtained on electrical installations.

Gross  profit on service  revenues  for the three and six months ended March 31,
2005, increased even though there was a slight decline in service revenues.  The
increase in gross profit and gross margin  percentage  for these periods was due
to certain reductions in service technicians.

Income Before Tax

The decline in income and increase in loss before  income taxes during the three
and six months  ended  March 31,  2005,  respectively  is  primarily  due to the
decrease in gross profit  related to lower product sales from the Dallas,  Texas
market area. The decrease in product gross profit was partially offset by higher
gross  profit from  subcontract  and service  revenues.  The increase in service
gross profit was caused in part by a decrease in technical  staff.  In addition,
selling,  general and administrative expenses remained at approximately the same
levels as the prior  year  periods  and are  geared to  support  higher  product
revenues.  Interest expense decreased during 2005 due to lower borrowing levels.
Depreciation  expense increased during the 2005 periods from recent  investments
in a new  computer  operating  software  system which will enable the Company to
better manage  project costs in the future.  For the three and six month periods
of 2005 the Company recorded a loss of $12,000 and $22,000, respectively, 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
in a non current  deferred tax  liability as it related to  differences  between
financial reporting and tax bases of assets and liabilities.

<PAGE>


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


Order Position

The Company's order position,  excluding service,  at March 31, 2005 amounted to
$11,100,000 as compared to $12,800,000 at September 30, 2004 and  $15,800,000 at
March 31, 2004.  This order position  reflects large orders received for several
subway  complexes  which will be deliverable  over several years as the projects
are  released.  In  addition,  the backlog  includes  $1.0 million of orders for
communication and announcement  systems from several transit car  manufacturers,
that will be shippable over the next 24 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.

Changes in internal control over financial reporting.
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.



                           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 10,
2005. 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 & Kleigman LLP as Synergx's  independent  auditiors
     for the fiscal year ending September 2005

     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.

    ----------------------------- -------------- ------------ ---------------
                     MATTER              FOR      AGAINST           ABSTAINED
    Daniel Tamkin                   4,354,648       315,368            N/A
    John Poserina                   4,621,224        48,792            N/A
    Henry Schnurbach                4,386,844       283,172            N/A
    Joseph Vitale                   4,361,458       308,558            N/A
    Dennis McConnell                4,346,706       323,310            N/A
    J Ian Dalrymple                 4,621,890        48,126            N/A
    Mark I. Litwin                  4,621,258        48,758            N/A

    ----------------------------- -------------- ------------ ---------------
    Auditors                        4,633,831        35,799            386
    ----------------------------- -------------- ------------ ---------------


Item 5.   Other Information.

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
<PAGE>


                           Part II - OTHER INFORMATION


 (b) Reports on Form 8-K

                  None

                                   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, 2005