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): APRIL 3, 2006

                              BLUEGATE CORPORATION
              Exact name of registrant as specified in its Charter)

            Nevada                      000-22711               76-0640970
       (State or other              (Commission File          (IRS Employer
jurisdiction of Incorporation)           Number)          Identification Number)

     701 North Post Oak, Road, Suite 630, Houston, Texas              77024
          (Address of principal executive offices)                  (Zip Code)

                         Registrant's telephone number,
                       Including Area Code: (713) 686-1100

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:

[_]  Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

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

[_]  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 April 4, 2006, we issued a press release which reports our 2005
financial results.  We reported a 125% increase in revenues of $1,384,000, from
$1,109,000 in 2004 to $2,493,000 in 2005 and a net loss of $4,165,000 in 2005
compared to a net loss of $640,000 in 2004.  The press release is furnished as
Exhibit 99.1.


EXHIBIT INDEX
  The following exhibits are furnished with this Form 8-K:
     Exhibit 99.1: Press Release of Bluegate Corp. Dated April 3, 2006.


                                   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.

                                         BLUEGATE CORPORATION



     Date: April 4, 2006             /s/ Steven M. Plumb, CPA
                                         Steven M. Plumb
                                         Chief Financial Officer

EX-99.1

Exhibit 99.1

                 BLUEGATE REPORTS 2005 RESULTS: REVENUES UP 125%


HOUSTON, TX, USA - April 3, 2006 -  Bluegate Corp. (OTCBB: BGAT) the nation's
premier provider of outsourced healthcare IT solutions, professional technology
consulting services and Medical Grade Networks(TM), today announced record
financial results for the year ended December 31, 2005, with annual sales
increasing 125%.

FINANCIAL HIGHLIGHTS AND OPERATIONAL MILESTONES FROM 2005:

     -    Revenues more than doubled for the second consecutive year

     -    Record fourth quarter 2005 revenue of $777,000, an increase of 107%

     -    Increased gross margin from 46% to 55%

     -    Increased the number of physicians on Bluegate's Medical Grade Network
          by 80%

     -    Entered Strategic partnership with Memorial Hermann Health Network
          Providers for network and managed security services

     -    Acquired the business of Trilliant Corporation, an IT professional
          service consultant to hospitals and other large institutions,
          providing Bluegate with deeper IT consulting engineering expertise and
          greater client access

     -    Acquired TEKMedia Communications Inc., an IT services firm

     -    Strategic expansion of sales and management team in preparation for
          expanded penetration in the greater Houston market and growth into new
          geographic markets

     -    Expanded customer base to include imaging facilities and medical
          office buildings

FINANCIAL OVERVIEW
Bluegate recognized revenues of $2,493,000 in 2005, an increase of $1,384,000,
or 125%, compared to revenues of $1,109,000 in 2004. The increase was
attributable to increasing the number of physicians on Bluegate's network from
622 to 1,119 and acquiring the assets and customers of Trilliant Corp. and
TEKMedia during the year.

Gross margin for 2005 was $1,383,000, or 55%, versus $512,000, or 46%, for 2004.
The gross margin improved 9% as a result of economies of scale in its managed
services and IT consulting services to new and existing customers.

Selling, general and administrative (SG&A) expenses were $4,545,000 in 2005,
compared to $1,342,000 in 2004.  The increase in SG&A of $3,203,000 is
principally attributable to $1,861,000 in compensation expense for common stock
and options issued to consultants and employees for services rendered, $643,000
in professional fees for sales, financial, legal and auditing services and
$408,000 in payroll and related expenses of added sales, marketing and
administrative staff to support our ongoing strategy.  The investment in SG&A
was necessary to build the sales and service infrastructure of the Company,
expand and refine Bluegate's financial operations, and increase the capital base
and operational capacity to enable the company's accelerated growth for 2006 and
beyond.  Management believes that much of the SG&A expenditures were one-time in
nature to support the Company's focus during 2005 on increasing its operational
capability and capital base. Hence, management believes that recurring SG&A will
increase at a substantially declining percentage rate as the company grows,
thereby growing margins through the economies of scale inherent in its business
model.

Interest expense for 2005 was $381,000, an increase of $335,000 from $46,000 in
2004. The increase was due to the amortization of the discount attributable to
convertible notes payable issued in September 2005.

Net loss in 2005 was $4,165,000 compared to net loss of $640,000 for 2004. Basic
and diluted loss per share for 2005 was $0.90, compared to a loss of $0.30 for
2004. The 2005 loss includes a non-cash charge of $893,000 related to the
conversion of notes payable to common stock.

During the third quarter of 2005, Bluegate acquired the business of Trilliant
Corporation, an IT professional service consultant to hospitals and other large
institutions.  Strategically, Trilliant provides Bluegate with increased
engineering capability and broader access to healthcare providers throughout the
U.S. The 2005 pro forma combined revenues of



Bluegate and Trilliant would have been $3,199,000 had the acquisition occurred
on January 1, 2005.

GUIDANCE AND OUTLOOK
"We accomplished numerous milestones in 2005 and believe that the major factors
contributing to our growth will continue to fuel it for years to come," said
Bill Koehler, president of Bluegate. "Our first-of-its-kind HIPAA-compliant
medical grade IT network and outsourced hospital and medical practice IT
services fill a growing need in accelerating the conversion and integration of
hospitals and medical practices to electronic medical record use, as well as
online data sharing and collaboration for the ultimate goal of improving patient
care and reducing costs."

Bluegate's offering singularly solves a particularly vexing piece of the
government-mandated Health Insurance Portability & Accountability Act (HIPAA)
requirement for secure data communication between healthcare entities and the
"last mile" challenges of the proposed National Health Information Network
(NHIN) that has captured bi-partisan and industry support:  connecting
independent physician practices to the broader secured network.

Manfred Sternberg, Bluegate CEO, stated, "We believe Bluegate's scaleable
business model, as illustrated by the medical grade network we have built in
Houston, can be expanded to become the base of the national 'grid' that all
vested parties in the HIPAA initiative turn to for securely connecting
physicians with hospitals, other providers and insurance companies."

Sternberg continued, "In 2005, we added management and sales depth to support
our ongoing strategy to grow the number of health care facilities and physician
practices served and increase revenue per physicians in our existing markets,
while scaling our business model to expand our Texas penetration and address
national opportunities. While our loss increased during 2005, the investments
were needed to build the platform for Bluegate's future growth. The recent
additions of capital, combined with the experienced management and senior
technology human resources gained through the acquisition of Trilliant, will
enable us to respond to the pipeline demand in other geographical markets where
we are in the late stages of expansion discussions for new electronic networks.

Sternberg concluded, "Our investments and strong revenues during 2005 position
us to have another year of record sales that should enable breakeven cash flow
in mid 2006."

Bluegate's 10-K filing for 2005 can be accessed in its entirety at www.sec.gov.

ABOUT BLUEGATE
Bluegate Corp. is an industry leader of outsourced healthcare IT solutions,
Medical Grade Networks(TM) and remote management services.  It provides IT
consulting through its professional services division and HIPAA-compliant,
turnkey managed security services and interoperability solutions across its
Medical Grade Networks(TM) to hospitals, physicians, other healthcare
facilities, RHIOs, HCOs and third-party solution providers. Bluegate is publicly
traded on the over the counter bulletin board under the ticker symbol BGAT.  For
information, visit www.bluegate.com or call 713-686-1100.

Safe Harbor
This press release may contain "forward-looking statements." All statements,
other than statements of fact, included in this release and without limitation
statements regarding potential future plans and objectives of the Company, are
forward-looking statements that involve risks and uncertainties. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, there can be no assurance that such statements will
prove to be accurate. Actual results and future events could differ materially
from those anticipated in such statements.

For Bluegate
Media: Julie Shepherd, Accentuate PR, 815 479 1833, Julie@accentuatepr.com
                                                    ----------------------
Investors: Mike McDonald, Bluegate 713-686-1100 X241, mmcdonald@bluegate.com