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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 GHgAO9PRFA9yZrNSxjlk+om0w6BI2mv32K/nuAJc2KO8XQufAQf/py+FHfWKZRHR
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<SEC-DOCUMENT>0000919574-07-002058.txt : 20070418
<SEC-HEADER>0000919574-07-002058.hdr.sgml : 20070418
<ACCEPTANCE-DATETIME>20070418145818
ACCESSION NUMBER:		0000919574-07-002058
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060823
FILED AS OF DATE:		20070418
DATE AS OF CHANGE:		20070418

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOUTHWALL TECHNOLOGIES INC /DE/
		CENTRAL INDEX KEY:			0000813619
		STANDARD INDUSTRIAL CLASSIFICATION:	UNSUPPORTED PLASTICS FILM & SHEET [3081]
		IRS NUMBER:				942551470
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1029 CORPORATION WAY
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94303
		BUSINESS PHONE:		4159629111

	MAIL ADDRESS:	
		STREET 1:		1029 CORPORATION WAY
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94303

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			NEEDHAM GROUP, INC.
		CENTRAL INDEX KEY:			0001396716

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15930
		FILM NUMBER:		07773261

	BUSINESS ADDRESS:	
		STREET 1:		445 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-705-0311

	MAIL ADDRESS:	
		STREET 1:		445 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>p763396_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-08-23</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000813619</issuerCik>
        <issuerName>SOUTHWALL TECHNOLOGIES INC /DE/</issuerName>
        <issuerTradingSymbol>SWTX</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001396716</rptOwnerCik>
            <rptOwnerName>NEEDHAM GROUP, INC.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>445 PARK AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2009807</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The reported shares are owned by The Needham Group, Inc which is a member of a &quot;group&quot; with Needham Capital Partners III,
 L.P., Needham Capital Partners II (Bermuda), L.P., Needham Capital Partners IIIA, L.P., Needham Capital Partners III
 (Bermuda), L.P., Needham Capital Partners II, L.P. and George A. Needham, for purposes of Section 13(d) of the Exchange Act.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>The Needham Group, Inc., By: /s/ Glen W. Albanese, Managing Director</signatureName>
        <signatureDate>2007-04-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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