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): January 12, 2007

VIDEO DISPLAY CORPORATION

(Exact name of registrant as specified in its charter)

Georgia	0-13394	58-1217564
(State of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1868 Tucker Industrial Road
Tucker, Georgia		30084
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (770) 938-2080

Not Applicable
(Former name or former address, if changed since last report)

     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:

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-12)

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 January 12, 2007, Video Display Corporation issued a press release announcing the results of operations for the third quarter of Fiscal 2007 ended November 30, 2006. A copy of the release is included as exhibit 99.1 of this form 8-K and is included herein by reference.

The information in this Item 2.02 of this Form 8-K, including Exhibit 99.1 attached, 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. The information in this Current Report shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit
Number	Description of Exhibit
99.1	Press Release of Video Display Corporation, Dated January 12, 2007.

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 hereunto duly authorized.

Date: January 12, 2007	VIDEO DISPLAY CORPORATION
		By:	/s/	Ronald D. Ordway
				Ronald D. Ordway
				Chief Executive Officer

EX-99.1

News Release

Exhibit 99.1

Video Display Reports Third Quarter Earnings Increase of 300%

January 12, 2007 — Video Display Corporation (NASDAQ:VIDE) today reported that revenues for the 3^rd quarter of fiscal 2007 ended November 30, 2006 improved $2.6 million or 13% over the 3^rd quarter of fiscal 2005 to $22.3 million. Net income was $1.0 million, or $.10 per fully diluted share, for the three months ended November 30, 2006 compared to $0.3 million, or $.03 per fully diluted share, for the three months ended November 30, 2005.

Revenues for the nine-month period ended November 30, 2006 decreased $2.7 million or 4% over the nine -month period ended November 30, 2005. Net income was $1.2 million, or $.12 per fully diluted share, for the nine months ended November 30, 2006 compared to $2.0 million, or $.20 per fully diluted share, for the nine months ended November 30, 2005.

Company CEO, Ron Ordway, stated, “Although we had projected a strong 3^rd quarter, results surpassed the higher limit of expectations. We further believe VDC will show positive results for our current quarter ended February 28, 2007, with excellent comparisons to the like fiscal 2006 fourth quarter but are expected to be reduced when compared to the period being reported today.”

Video Display Corporation designs, develops and manufactures unique solutions for display requirements for military, medical and industrial use with emphasis on high end training and simulation applications. Its product offerings include ruggedized AMLCD and CRT displays as well as complete projection systems utilizing VDC’s Marquee™ line of projectors. Video Display Corporation operates 8 display design and manufacturing plants plus additional sales facilities throughout the United States and Europe.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Video Display Corporation or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the Company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions, including items discussed in the Company’s Form 10-K for the year ended February 28, 2006, filed with the Securities and Exchange Commission. The Company undertakes no duty to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.

Video Display Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	November 30,						November 30,
	2006			2005			2006			2005
Net sales	$	22,298		$	19,676		$	60,728		$	63,450
Cost of goods sold		14,313			13,231			40,369			42,865
Gross profit		7,985			6,445			20,359			20,585
Operating expenses
Selling and delivery		2,033			1,929			5,853			5,526
General and administrative		3,744			3,733			10,924			10,905
		5,777			5,662			16,777			16,431
Operating profit		2,208			782			3,582			4,154
Other income (expense)
Interest expense		(527	)		(353	)		(1,650	)		(1,028	)
Other, net		(35	)		6			14			86
		(562	)		(347	)		(1,636	)		(942	)
Income before income taxes		1,646			436			1,946			3,212
Income tax expense		630			181			780			1,235
Net income	$	1,016		$	255		$	1,166		$	1,977
Basic earnings per share of common stock	$	.11		$	.03		$	.12		$	.20
Diluted earnings per share of common stock	$	.10		$	.03		$	.12		$	.20
Basic weighted average shares outstanding		9,675			9,687			9,659			9,699
Diluted weighted average shares outstanding		9,848			9,923			9,858			9,977

CONTACT: Video Display Corporation Ronald D. Ordway, 770/938-2080