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 QUARTERLY PERIOD ENDED MARCH 31, 2005

( )  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF
     1934 FOR THE TRANSITION PERIOD FROM ______________TO_______________

                       COMMISSION FILE NUMBER  0-25380


                       ULTRADATA SYSTEMS, INCORPORATED          
      -----------------------------------------------------------------
      (Exact name of small business issuer as specified in its charter)

         Delaware                                     43-1401158
 ---------------------------------------------------------------------------
 (State or other jurisdiction of         (I.R.S. Employer Identification No.)
  incorporation or organization)

     1240 Dielman Industrial Court, St. Louis, MO                63132        
 ---------------------------------------------------------------------------
     (Address of principal executive offices)                  (Zip Code)


      Issuer's telephone number, including area code:  (314) 997-2250

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act during the past 12 months
(or for such shorter period that the 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.

           Class                        Outstanding as of April 15, 2005
   ----------------------               --------------------------------
   Common, $.01 par value                           6,410,187

      Transitional Small Business Disclosure Format    Yes [ ]  No  [X]       


                                         							
                                                         File Number 
                                                           0-25380 


                     ULTRADATA SYSTEMS, INCORPORATED
                               FORM 10-QSB
                              March 31, 2005

                                  INDEX

PART I - FINANCIAL INFORMATION                                PAGE

Item 1.  Condensed Unaudited Financial Statements

         Condensed Balance Sheets at
          March 31, 2005 and December 31, 2004                  3.

         Condensed Statements of Operations
          for the three months ended March 31, 2005 and 2004    4.

         Condensed Statements of Cash Flows
          for the three months ended March 31, 2005 and 2004    5.

         Notes to Condensed Financial Statements                6.

Item 2.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations                   8.

PART II - OTHER INFORMATION                                    11.
  
         Signatures                                            11.




                                    -2-


                      ULTRADATA SYSTEMS, INCORPORATED

                         Condensed Balance Sheets

                 As of March 31, 2005 and December 31, 2004



                                            March 31,        December 31,
                                              2005               2004
                                           -----------       ------------
Assets                                     (Unaudited)

Current assets:
 Cash                                      $  113,568        $  385,966 
 Trade accounts receivable, net of
  allowance for doubtful accounts of
  $100 and $176,575, respectively             180,973            38,459
 Inventories, net                             113,251            89,890 
 Prepaid expenses                             132,618            41,515 
                                             --------          --------
 Total current assets                         540,410           555,830 

Property and equipment, net                    27,363            30,458 

Other assets                                    5,444             5,444 

Total assets                               $  573,217        $  591,732
                                             ========          ========

Liabilities and Stockholders' Equity

Current liabilities:
 Accounts payable                          $   56,527        $  126,019 
 Accrued liabilities                           80,896           585,967 
                                             --------          --------
 Total current liabilities                    137,423           181,986 

Note payable - long term                        6,164                 -      
                                             --------          --------
Total liabilities                             143,587           181,986 

Stockholders' equity
 Preferred Stock, $0.01 par value,
  4,996,680 shares authorized, none
  outstanding                                       -                 -      
 Common stock, $.01 par value; 10,000,000
  shares authorized;  6,410,187 shares
  issued and outstanding March 31,2005  
  and December 31, 2004                        64,102            64,102 
 Additional paid-in capital                 9,221,022         9,121,022 
 Accumulated deficit                       (8,783,019)       (8,659,418)
 Deferred stock compensation                  (72,475)         (115,960)
                                            ---------         ---------
Total stockholders' equity                    429,630           409,746 
                                            ---------         ---------
Total liabilities and stockholders'
 equity                                   $   573,217       $   591,732
                                            =========         =========

See accompanying summary of accounting policies and notes to financial
statements.
                                   -3-


                     ULTRADATA SYSTEMS, INCORPORATED

                    Condensed Statements of Operations

                Three months ended March 31, 2005 and 2004

                                                  2005             2004
                                              -----------      -----------
                                                      (Unaudited)

Net sales                                     $   83,825       $ 1,753,499 
Cost of sales                                     43,902           895,608 
                                               ---------         ---------
Gross profit                                      39,923           857,891 

Selling expense                                   22,410            48,593 
General and administrative expenses               99,584           260,208 
Research and development expense                  35,201            19,669 
                                               ---------         ---------
Total operating expenses                         157,195           328,470 
                                               ---------         ---------

Operating (loss) profit                         (117,272)          529,421 

Other income (expense):
 Interest and dividend income                        379                 -      
 Interest expense                                 (6,758)           (5,257)
 Other, net                                           50               131 
                                               ---------         ---------
Total other expense                               (6,329)           (5,126)
                                               ---------         ---------

Income (loss) before income tax expense         (123,601)          524,295 

Income tax expense                                     -                 -      
                                               ---------         ---------
Net income (loss)                             $ (123,601)      $   524,295
                                               =========         =========

Income (loss) per share:
 Basic                                        $    (0.02)      $      0.09 
                                               =========         =========
Income (loss) per share:
 Fully Diluted                                $    (0.02)      $      0.08 

Weighted Average Shares Outstanding:
 Basic                                         6,410,187         6,056,928 
                                               =========         =========
Weighted Average Shares Outstanding:
 Fully Diluted                                 6,410,187         6,195,646 
                                               =========         =========


See accompanying summary of accounting policies and notes to financial
statements.

                                    -4-



                      ULTRADATA SYSTEMS, INCORPORATED

                     Condensed Statements of Cash Flows

                 Three months ended March 31, 2005 and 2004


                                                 2005              2004
                                              ---------         ---------
                                                       (Unaudited)
Cash flows from operating activities:
 Net (loss) income                           $ (123,601)        $ 524,295 

Adjustments to reconcile net income
 (loss) to net cash provided by
 (used in) operating activities:
 Depreciation and amortization                    4,461             3,352 
 Provision for doubtful accounts               (176,282)               43 
 Stock issued for services                       43,485                 - 
 Reserve for inventory impairment                 3,489                 - 
 Non-cash Amortization of note payable
  discount                                        6,164                 - 
  Increase (decrease) in cash due to
   changes in operating assets and
   liabilities:
   Trade accounts receivable, net                33,768          (389,114)
   Inventories                                  (26,850)          (14,105)
   Prepaid expenses and other current assets    (91,103)          (14,538)
   Accounts payable                             (69,492)           66,310 
   Accrued expenses and other liabilities        24,929             4,711 
                                               --------          -------- 
 Net cash (used in) provided by operating
  activities                                   (371,032)          180,954 
                                               --------          --------
Cash flows from investing activities:
 Capital expenditures                            (1,366)                - 
                                               --------          --------
 Net cash used in investing activities           (1,366)                - 
                                               --------          --------
Cash flows from financing activities:
 Exercise of employee stock options                   -             7,031 
 Payments on notes payable                            -          (211,202)
 Note payable - short term                            -           165,000 
 Common stock                                   100,000                 - 
                                               --------          --------
 Net cash provided by (used in) financing
  activities                                    100,000           (39,171)
                                               --------          --------
Net (decrease) increase in cash                (272,398)          141,783 

Cash at beginning of period                     385,966             2,926 
                                               --------          --------
Cash at end of period                        $  113,568        $  144,709 
                                               ========          ========


See accompanying summary of accounting policies and notes to financial 
statements.

                                     -5-


                       ULTRADATA SYSTEMS, INCORPORATED
                  Notes to Condensed Financial Statements
                         March 31, 2005 (Unaudited)

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying interim condensed financial statements included herein 
have been prepared by Ultradata Systems, Incorporated (the "Company"), without 
audit in accordance with generally accepted accounting principles and pursuant 
to the rules and regulations of the Securities and Exchange Commission for 
interim financial information.  Certain information and footnote disclosures 
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such 
rules and regulations, although the Company believes that the disclosures made 
are adequate to make the information presented not misleading. 

In the opinion of management, the information furnished for the three-
month periods ended March 31, 2005 and 2004, respectively, includes all 
adjustments, consisting solely of normal recurring accruals necessary for a 
fair presentation of the financial results for the respective interim periods 
and is not necessarily indicative of the results of operations to be expected 
for the entire fiscal year ending December 31, 2005.  It is suggested that the 
interim financial statements be read in conjunction with the audited  financial
statements for the year ended December 31, 2004, as filed with the Securities 
and Exchange Commission on Form 10-KSB (Commission File Number 0-25380), from 
which these statements were derived.

Use of Estimates
         
The financial statements have been prepared in conformity with generally 
accepted accounting principles and, as such, include amounts based on informed 
estimates and adjustments by management, with consideration given to 
materiality. Actual results could vary from those estimates.

Note 1. Inventories

Inventories consist of the following:

                                  March 31,      December 31,
                                    2005             2004
                                -----------     ------------
                                (Unaudited)
     Raw Materials, net of 
      obsolete                   $   24,576        $   4,966 
     Finished Goods, net of 
      obsolete                       88,675           84,924 
                                    -------          -------
     Total                       $  113,251        $  89,890 
                                    =======          =======

     Obsolete inventory on hand  $  740,942        $ 738,826 

Note 2. Prepaid Expenses

Prepaid expenses consist of the following: 

                                  March 31,      December 31,
                                    2005             2004
                                -----------      ------------
                                (Unaudited)

     Prepaid insurance           $   18,500        $   6,015 
     Prepaid advertising             30,000                - 
     Prepaid expenses                84,118           35,500 
                                   --------         --------
                                 $  132,618        $  41,515 
                                   ========         ========

                                     -6-


Note 3. Income (Loss) Per Share

                              For the three months ended March 31,
                                     2005            2004

     Basic
     Numerator:
      Net (loss) income          $  (123,601)       $   524,295
                                    --------           --------
      Numerator for basic
       loss) income per share    $  (123,601)       $   524,295 
                                    ========           ========

     Denominator:
      Weighted average common
       shares                      6,410,187          6,056,928 
                                   ---------          ---------
      Denominator for basic
       (loss) income per share     6,410,187          6,056,928 
                                   =========          =========
      Basic (loss) income per
       share                     $     (0.02)       $      0.09 

      Fully Diluted Numerator:
       Net (loss) income         $  (123,601)       $   524,295 
                                   ---------          ---------
      Numerator for fully diluted
       (loss) income per share   $  (123,601)       $   524,295 
                                   =========          =========
      Denominator:
       Weighted average common
        shares                     6,410,187          6,056,928 
       Common stock equivalents            -            138,718
                                   ---------          ---------
       Denominator for fully
        diluted (loss) income
        per share                  6,410,187          6,195,646 
                                   =========          =========
       Fully diluted (loss)
        income per share         $     (0.02)       $      0.08 

         
Note 4. Note Payable

      On February 17, 2005 Ultradata entered into a Securities Purchase 
Agreement dated February 14, 2005 with Golden Gate Investors, Inc., which was 
modified by an Addendum dated February 17, 2005.  Ultradata sold to Golden Gate
a 43/4% Convertible Debenture and Warrants to Purchase Shares of Common Stock, 
all for a purchase price of $300,000.  The Company received proceeds of $100,000
of the purchase price, except that $50,000 of that sum is being held in escrow 
for payment of the costs of preparing and filing a registration statement that 
will permit Golden Gate to make a public resale of the shares into which the 
Debenture is convertible and for which the Warrant is exercisable (the 
"Registration Statement").  As a result of the beneficial conversion of the 
debenture, the Company has allocated $100,000 of the debenture proceeds to
additional paid-in capital and recorded a discount of $100,000.  The remainder
of the purchase price is payable when the Securities and Exchange Commission
declares the Registration Statement effective.  

     Interest that accrues on the Debenture, at 43/4% per annum, will be payable
monthly.  The principal amount of the Debenture is payable in full on February 
14, 2007.  However, the holder of the Debenture has agreed that, in each month 
after the Securities and Exchange Commission declares the Registration 
Statement effective, the holder will convert at least 3% of the face amount of 
the debenture into common stock.  Similarly, the holder of the Warrant is 
required to purchase at least 3% of the shares subject to the Warrant in each 
month after the Securities and Exchange Commission declares the Registration 
Statement effective. 
                                    -7-


     The conversion provisions of the Debenture and the exercise provisions of
the Warrant are correlated so that the Debenture will be converted and the 
Warrant exercised in like proportions.  The result is that in any month in 
which the holder converts the 3% minimum it will also exercise the 3% minimum 
under the Warrant, which will result in it purchasing common stock for $99,000 
($90,000 paid in cash and $9,000 of the Debenture principal converted).  The 
number of shares that will be purchased will equal the purchase price divided 
by the lesser of (a) $1.25 or (b) 80% of the average of the three lowest volume 
weighted average prices during the twenty trading days preceding conversion/
exercise.  In total, the conversion of the Debenture and exercise of the
Warrant will result in Golden Gate purchasing Ultradata common stock for up
to $3,300,000 ($3,000,000 paid in cash and $300,000 of the Debenture principal 
converted) during the period between the effective date of the Registration 
Statement and February 14, 2007.  

     There are four conditions that may reduce the aggregate purchase price
paid by Golden Gate below $3,300,000: 

     1.  If Golden Gate only converts the 3% minimum per month, the 
February 14, 2007 payment date for the Debenture will occur before 
full conversion and exercise have occurred.  

     2.  The conversion and exercise provisions of the securities provide
that at no time may Golden Gate acquire ownership of more that 9.9% of 
Ultradata's outstanding common stock.

     3.   If at the time of a conversion/exercise, the conversion price
would be less than $.40, then either (a) Ultradata may opt to redeem 
the amount of principal that the holder presents for conversion at 
125% of face value, or (b) if the conversion/exercise date is later 
than November 11, 2005, the holder may elect to convert up to $100,000 
of the Debenture without exercising the Warrant, either of which 
events would reduce the aggregate purchases under the Debenture and 
Warrant by 900% of the amount redeemed by Ultradata or converted 
without exercise.

     4.   When the principal amount of the Debenture falls below $100,000,
Ultradata may redeem the remaining principal for its face value.  In 
that event, the aggregate purchase price paid by Golden Gate for 
Ultradata common stock would be only $2,200,000.

     During the three months ended March 31, 2005, the Company amortized 
$6,164 of the note payable discount.

                Note payable - face             $100,000
         	Note payable - discount		  93,854
                                                 -------
                                                $  6,164
                                                 =======
Note 5.  Going Concern

     As reflected in the accompanying financial statements, a major customer 
of the Company has experienced deteriorating operations during 2004 and during 
the second quarter of 2004 ceased ordering products from the Company.  This 
customer accounted 55.4% of sales during 2004.  In addition the Company 
terminated its agreements with AAA for the sale of its products using the AAA 
logo to AAA retail locations.  Although Management has a plan in place to 
replace these lost customers, it is not yet clear that the plan will be 
successful.  The ability of the Company to continue as a going concern is 
dependent on the Company's ability to further implement its business plan, 
raise capital and generate revenues.  The financial statements do not include 
any adjustments that might be necessary if the Company is unable to continue 
as a going concern. 

     The Company has continued its product design and development efforts to 
introduce new products in 2005 and expects to introduce its Road GenieTM in 
2005.  Based on the success of the Talking Road Whiz with direct TV marketing, 
the Company is proceeding with plans to market Road GenieTM by means of similar 
commercials, with the Company marketing directly to consumers.  This new 
product represents an increase in technology compared to the Talking Road Whiz 
and, in addition, can be enhanced to include a digital voice recorder for 
additional value to the customer.  The Company is also opening a new source of 
revenue by developing the cell-phone Road Whiz application.  Thus, the Company 
has two different methods in work to enhance sales revenue.  In addition, the 
Company has obtained a loan and a commitment for additional equity capital for 
up to $3.3 million (see Note 4).  Management believes that actions presently 
taken to obtain additional funding provide the opportunity for the Company to 
continue as a going concern. 
                                    -8-

Note 6.  Settlement of Office Max Receivable

     On April 20, 2005 Office Max settled suit filed against them for the full 
amount of the disputed receivable without interest.  The first-quarter 
financials reflect the reversal of the bad-debt expense of $176,475 recorded in 
2004 when collection was uncertain. 

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

              YOU SHOULD NOT RELY ON FORWARD LOOKING STATEMENTS

     This quarterly report contains a number of forward-looking statements 
regarding our future prospects.  Among the forward-looking statements are 
descriptions of our plans to introduce new products to the market, to expand 
our customer base, to develop products for ease of travel, and to return our 
company to profitability.  These forward-looking statements are a true 
statement of our present intentions, but are neither predictions of the future 
nor assurances that any of our intentions will be fulfilled.  Many factors 
beyond our control could act against Ultradata in its efforts to develop and 
market its products.  Among these factors are:

     *  The fact that our financial resources are minimal and will not sustain
us past this year without continued success of the Road WhizTM family product 
line;

     *  The fact that our lack of capital severely limits our ability to market
our products.  As a result, the loss of a significant customer could imperil
the marketing of an entire product line;

     *  The difficulty of attracting mass-market retailers to seasonal products
like our Road Whiz(tm) product line.

     There may also be factors that we have not foreseen which could interfere
with our plans.  In addition, changing circumstances may cause us to determine 
that a change in plans will be in the best interests of Ultradata.  For this 
reason, you should not place undue reliance on any of the forward-looking 
statements in this report, as there is a significant risk that we will not be
able to fulfill our expectations for Ultradata.

OVERVIEW

     The Company mission is to aid the road traveler with useful information 
with products easy to use and affordable in price.  Since 1987 we have been 
engaged in the business of manufacturing and marketing handheld computers that 
provide travel information.  The products are based upon a data compression 
technology that we developed, portions of which we have patented.  Recent 
developments in communications and speech technology have opened up new 
opportunities for us to integrate our technology and create new products 
merging these technologies with our own.  The Company is completing 
development of several new products which are based on adding significant 
features to the successful Talking Road Navigator such as a Spanish-speaking 
unit and a voice-recognition unit which allows for hands-free operation.  
These new products are consistent with our goal of improved ease of use by the 
consumer.  The Spanish-speaking unit was completed in 2004 and initial 
deliveries to customers have been made.  The voice-recognition unit should be 
completed and available for sale in the second quarter of 2005.  The voice 
recognition product is called the Road Genie Audio Navigation System and 
represents a quantum jump in user convenience.  We believe this product will 
achieve significant success in 2005.  We have produced a TV commercial to 
enable selling the Road Genie directly to consumers.  We will attempt to 
repeat the success of the Talking Road Whiz through direct TV promotion.  
Market testing is expected to begin in May 2005.

     The Company has sold over 3 million of its low-cost handheld travel 
computers, demonstrating that there is a market for travel information 
products.  To re-awaken that market with an improved product that speaks, the 
Company has developed a Talking Road WhizTM.  Significant deliveries of this 
product began in September of 2003 and, the Company received significant 
revenue in the last four months of 2003 from sales of this new addition to its 
product line.  Company earnings in the fourth quarter of 2003 were sufficient 
to offset losses in the first three quarters of 2003.  This success continued 
in the first two quarters of 2004, which have traditionally been weak quarters 
for Ultradata.  Our growth was stalled, however, in the second half of 2004, 
when our primary distributor and one significant customer both ceased placing 
orders.  We are now engaged in efforts to replace those lost sales.

                                   -9-


     Each of our consumer products is designed to allow the consumer to
access useful information stored in a convenient manner.  Our handheld 
computers generally sell at retail prices between $19.95 and $59.95 per 
unit.  The products have been available in retail mass-market chains, 
catalogs, credit-card inserts, and other channels.
         
     The goals of the Company's research and development investments are 
targeted at attaining the right product at the right price.  There are 
over 125 million drivers in the U. S., and there is a great demand for 
useful, easy-to-access information for convenience and safety on the road.  
Low-cost products that achieve these benefits have a significant niche in 
the marketplace.  Thus far, Management feels the Company has barely 
penetrated this huge, largely untapped market.  The Company expects to 
continue to exploit this niche over the next few years by bringing the 
results of merged technologies to bear on the goals stated above with 
significant impact on Company sales and profits.  Ease of use and low cost 
are major considerations.  With the new voice-recognition unit, we believe 
we are close to tapping this large market.  The introduction of expensive 
GPS navigation systems has brought more awareness to this category.  
However, most consumers do not wish to pay over $500 or monthly fees for 
directions.  Our low-cost user-friendly products offer an affordable 
alternative.
         
     Another quite different channel is a cell-phone implementation of 
the Road Whiz function.  In this case, the user can download software to 
his cell phone and use the Company's proprietary database and 
functionality availability in the Road Whiz product by subscription on his 
cell phone.  We're in the process of completing development of an initial 
implementation of the Road Whiz that functions on the user's cell phone.  
We will market it to service providers as another feature available to 
modern cell phone subscribers.  The user will need no other hardware 
beyond a current-generation cell phone.  The cell-phone Road Whiz also has 
the potential of enabling service discounts based on the user's location 
needs.  Information that there is a brand name motel, for example, with 
rooms available 10 miles down the road can be provided to the user and 
offered at a significant discount to that highly-targeted consumer.  The 
Company has a patent on electronic coupons for travelers that may be 
significant as real-time targeting of travelers grows.  The initial 
implementation of this application will operate on a number of new models 
of cell phones.  Specific software is in development that will broaden the 
list of models compatible with this capability.  There will, therefore, be 
a ramp-up over time of potential users.  Because of the large number of 
cell-phone users, we expect that small market penetration could produce 
significant results for the Company.
         
RESULTS OF OPERATIONS

     Three Months Ended March 31, 2005 Compared to Three Months Ended 
March 31, 2004

     Operating results for the first quarter of 2005 were significantly 
lower than the first quarter of 2004.

     Sales. During the first three months of 2005, net sales totaled 
$83,825, as compared with $1,753,499 in sales recorded in the first 
quarter of 2004, representing a 95.2% decrease.  Although the first 
quarter of 2004 was uncharacteristically strong, the 2005 results are weak 
by historical standards.  Orders for our Talking Road WhizTM product in 
early 2004 continued strong from the holiday period, when it was first 
introduced.  The loss of two major customers in the latter half of 2004 
continue to affect Company sales pending introduction of the Road Genie in 
the second quarter of 2005.

     Gross Profit.  Gross profit margin for the current quarter was 
$39,923, or 47.6% of sales compared to $857,891, or 48.9% of sales for the 
first quarter of 2004.  Gross profit as a percent of sales was comparable 
on a lower base of sales.
         
     S,G&A Expense.  Selling expenses amounted to $22,410, or 26.7% of 
sales, for the first quarter of 2005 as compared with $48,593, or 2.8% of 
sales for the first quarter of 2004.  The small base of sales, coupled 
with expenses in preparation for marketing the Road Genie, has increased 
this cost out of proportion to sales.  We expect selling costs to be 
higher in 2005 due to taking on the marketing tasks previously performed 
by large-volume customers who garnered a higher margin while absorbing the 
costs of advertising in various channels.  However, the ratio of selling 
costs to sales revenue should drop below 10% due to higher retail margins 
for the Road Genie accruing directly to the Company.
         
     General and administrative expenses were $99,584 for the first 
quarter of 2005 as compared with $260,208 for the same quarter in 2004, 
representing a decrease of 61.7%.  This dramatic drop was due to the 
settlement of a large outstanding bad debt that had been fully reserved in 
2004 of $176,475.  We expect general and administrative expense to return 
to previous levels in subsequent quarters.  Without this settlement, 
general and administrative expenses would have been $276,059.

                                    -10-


     R&D Expense.  Research and development expense in the first quarter 
of 2005 was $35,201 as compared to $19,669 for the same quarter of 2004, 
reflecting the development activities associated with the Road Genie and 
software for the cell-phone application of our Road Whiz product.  Work
has also proceeded to develop a low-cost digital voice recorder both as a
stand-alone product and as an additinal feature of the Road Genie.

     The Company posted a net loss from operations of ($117,272) for the 
quarter ended March 31, 2005 compared to a net profit from operations of 
$529,421 for the quarter ended March 31, 2004.
         
     Other Expense.  Other expense for the first quarter of 2005 amounted 
to ($6,329) compared with ($5,126) for the same period in 2004.
         
     As a result of the foregoing, the Company posted a net loss of 
($123,601), or ($0.02) per basic and diluted common share, for the three-
month period ended March 31, 2005, compared to a net profit of $524,295, 
or $0.09 per basic common share and $0.08 per diluted common share, for 
the three-month period ended March 31, 2004.
         
FINANCIAL CONDITION AND LIQUIDITY

     The Company's financial status remains uncertain due to lack of 
sales in recent quarters.  Our cash position is roughly the same as at the 
end of the first quarter 2004 but is on a downward trend rather than an 
upward trend.  Our backlog is significantly lower pending introduction of 
the Road Genie in the second quarter of 2005.
         
     Management is of the opinion that the Company's cash on hand and
revenues from operations are insufficient to meet the operational needs of
the Company for the next twelve months.  Accordingly, management will rely
upon proceeds from debt financing until the Company is able to return to
profitabiity due to increasing sales of its new products for the holiday
season.

     Financing activities produced $100,000 in the current quarter due to
the equity financing through Golden Gate Investors, as compared the first 
quarter of 2004, in which the Company used a net of $39,171 after paying 
down notes payable in the amount of $211,202 and taking out a short-term 
loan of $165,000, which was paid off in April 2004 out of operational cash 
flow.  The Company plans to use additional proceeds from the financing 
from Golden Gate Investors to produce and promote the Road Genie in coming 
months and develop sales volume to return the Company to profitability.
         
     The Company had $113,568 in cash on March 31, 2005 with accounts 
receivable of $180,973.
         
     The Company's current ratio at March 31, 2005 was 3.9:1 and its 
working capital was $402,987.
         
     The Company's backlog on May 9, 2005 was $16,492 as compared to 
$791,360 at the same time in 2004.  In addition, per an arrangement with 
its overseas manufacturer, the Company expects to receive $88,000 in 
royalty revenue in the second quarter from sales of Ultradata products by 
the manufacturer directly to certain retailers in that quarter.
         
ITEM 3.  Controls and Procedures

     Evaluation of Disclosure Controls and Procedures:  As of March 31, 
2005, the Company's management carried out an evaluation, under the 
supervision of the Company's Chief Executive Officer and the Chief 
Financial Officer of the effectiveness of the design and operation of the 
Company's system of disclosure controls and procedures pursuant to the 
Securities and Exchange Act, Rule 13a-15(e) and 15d-15(e) under the 
Exchange Act).  Based upon that evaluation, the Chief Executive Officer 
and Chief Financial Officer concluded that the Company's disclosure 
controls and procedures were effective, as of the date of their 
evaluation, for the purposes of recording, processing, summarizing and 
timely reporting material information required to be disclosed in reports 
filed by the Company under the Securities Exchange Act of 1934.
         
     Changes in internal controls:  There were no changes in internal 
controls over financial reporting, known to the Chief Executive Officer or 
Chief Financial Officer that occurred during the period covered by this 
report that has materially affected, or is likely to materially effect, 
the Company's internal control over financial reporting. 

                                   -11-

                    ULTRADATA SYSTEMS, INCORPORATED
                                  10QSB

PART II - OTHER INFORMATION

Item 1.   Legal Proceedings:

     On February 14, 2005, Ultradata filed suit against Office Max, 
Inc., in the Circuit Court of St. Louis County, State of Missouri, for the 
collection of $190,320 outstanding on deliveries for Purchase Orders 
placed with the Company plus 9% per annum interest from July 18, 2004.  An 
out-of-court settlement was agreed to on April 20, 2005 for the full 
amount without interest.

Item 2.   Changes in Securities and Small Business Issuer Purchase of
          Equity Securities:

     None

Item 3.   Defaults upon Senior Securities:

     None

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:

     Exhibits:
         
     31.    Rule 13a-14(a) Certification

     32.    Rule 13a-14(b) Certification
         
     Reports on Form 8-K:
         
     Report dated February 17, 2005 pursuant to Items 1.01, 2.03, and 3.02
reporting the financing arrangements with Golden Gate Investors, Inc.
         
                                 SIGNATURES


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

May 5, 2005				/s/  Monte Ross
                                        --------------------------
                                        Monte Ross, CEO
                                        (Chief executive officer)


                                        /s/  Ernest S. Clarke
                                        ------------------------------------
                                        Ernest S. Clarke, President
                                        (Principal financial and accounting 
                                         officer)