8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): November 9, 2010

COMMUNICATIONS SYSTEMS, INC.

(Exact name of Registrant as specified in its charter)

Minnesota	001-31588	41-0957999
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
10900 Red Circle Drive, Minnetonka, MN		55343
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (952) 996-1674

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-2)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02.Results of Operations and Financial Condition

On November 9, 2010, the Registrant issued a press release, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

Note: The information in this report (including the exhibit) is furnished pursuant to “Item 2.02. Results of Operations and Financial Condition” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, unless incorporated by specific reference in such filing.

ITEM 9.01.Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits

The following are filed as exhibits to this Current Report:

Exhibit No.	Description of Exhibit
99.1	Press Release issued November 9, 2010

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.

COMMUNICATIONS SYSTEMS, INC.
By	/s/ David T. McGraw
	David T. McGraw Its: Chief Financial Officer

Dated: November 10, 2010

EX-99.1

Exhibit 99.1

For Immediate Release:

Contact: Jeffrey K. Berg, President and Chief Executive Officer
David T. McGraw, Vice President – Finance and Chief Financial Officer
Telephone 952-996-1674

Communications Systems, Inc. Reports

Third Quarter and Nine Months 2010 Results

Minnetonka, MN ― November 9, 2010 ― Communications Systems, Inc. (NASDAQ: JCS) today reported financial results for its third quarter and nine months ended September 30, 2010.

For the three months ended September 30, 2010, net income was $3,999,000, or $0.48 per diluted share, on sales of $33,324,000. In 2009, the Company earned $1,861,000, or $0.22 per diluted share, on sales of $28,107,000. For the nine months ended September 30, 2010, net income was $7,746,000, or $0.92 per diluted share, on sales of $89,865,000. For the same period in 2009, the Company earned $4,833,000, or $0.58 per diluted share, on sales of $83,457,000.

Jeffrey K. Berg, President and CEO, commented: “We are pleased with our 2010 third quarter and nine months results.  Revenues for the third quarter of 2010 increased by 19% and net income increased by 115% compared to the same period in 2009. Our year to date revenues increased 8% and net income increased by 60% compared to 2009. Despite adverse and difficult conditions in U.S. residential and commercial construction markets and a weak recovery from the global recession, we achieved improved results through careful management of expenses and increased sales of higher margin data communications and telecommunications products.”

David T. McGraw, Vice President of Finance and CFO, also commented:  “CSI’s balance sheet is strong, with a current ratio of 6.4 to 1 as of September 30, 2010. CSI’s cash, cash equivalents and investments were $40,000,000 at September 30, 2010 and at December 31, 2009.  In the third quarter the Company declared a $.15 per share dividend compared to a $.14 per share dividend for the comparable 2009 quarter. For the nine months ended September 30, 2010 the Company declared total dividends of $.44 per share compared to $.38 per share for the same period in 2009”.

Further information regarding the Company’s results and related matters is provided in the Company’s Form 10-Q report for the quarter ended September 30, 2010 that is being filed on or about November 10, 2010.

Cautionary Statement

From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, the Communications Systems Inc. may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are typically preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the SEC, which could cause actual performance, activities or plans after the dat e the statements are made to differ significantly from those indicated in the forward-looking statements when made.

About Communications Systems

Communications Systems, Inc. provides physical connectivity infrastructure and services for cost-effective broadband solutions and is a leading supplier of voice-grade connecting devices and wiring systems. CSI serves the broadband network market as the world’s leading supplier of media conversion technology, that permits networks to deploy fiber optic technology while retaining the copper-based infrastructure already embedded in the network. In addition, CSI supplies copper wire and fiber optic structured wiring systems for broadband networks, as well as line filters for digital subscriber line service. CSI also provides network design, training and management services.

CSI CONSOLIDATED SUMMARY OF EARNINGS

Selected Income Statement Data

	Three Months Ended September 30, 2010		Three Months Ended September 30, 2009		Nine Months Ended September 30, 2010		Nine Months Ended September 30, 2009
Sales	$	33,323,793	$	28,107,200	$	89,864,628	$	83,456,557
Gross margin		15,309,984		10,867,919		39,109,053		31,297,459
Operating income		6,304,285		3,349,210		12,616,473		7,893,553
Income before income taxes		6,354,557		3,521,819		12,635,099		8,472,822
Income taxes		2,355,163		1,660,485		4,889,452		3,640,175
Net income	$	3,999,394	$	1,861,334	$	7,745,647	$	4,832,647
Basic net income per share	$	0.48	$	0.22	$	0.92	$	0.58
Diluted net income per share	$	0.48	$	0.22	$	0.92	$	0.58
Cash dividends per share	$	0.15	$	0.14	$	0.44	$	0.38
Average basic shares outstanding		8,398,496		8,347,701		8,376,542		8,336,027
Average dilutive shares outstanding		8,414,865		8,371,155		8,401,212		8,345,290
Selected Balance Sheet Data
	September 30, 2010		December 31, 2009
Total assets	$	108,397,586	$	102,913,694
Cash , cash equivalents and investments		40,089,171		40,069,291
Property, plant and equipment, net		13,066,688		13,321,825
Long-term liabilities		4,554,358		4,220,403
Stockholders' equity		90,529,012		85,939,293