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): May 10, 2007

                                ----------------

                             Digital Recorders, Inc.
             (Exact Name of Registrant as Specified in Its Charter)


       North Carolina                 1-13408                    56-1362926
(State or Other Jurisdiction  (Commission File Number)          (IRS Employer
      of Incorporation)                                      Identification No.)

                5949 Sherry Lane, Suite 1050, Dallas, Texas 75225
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, Including Area Code (214) 378-8992

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 7.01. Regulation FD Disclosure

     On May 10, 2007, Digital Recorders, Inc. announced that the Mobitec GmbH
business unit of its Swedish subsidiary Mobitec AB (Mobitec) has received an
order exceeding $200,000 USD for Mobitec(R) electronic destination sign systems
for use on bus vehicles in Israel.

     A copy of the Company's press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference. This Form 8-K and the attached exhibit
are furnished to, but not filed with, the Securities and Exchange Commission.

ITEM 9.01. Financial Statements and Exhibits

(a)  Exhibits.

     99.1 Press release dated May 10, 2007.




Signature(s)

     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.

                                    DIGITAL RECORDERS, INC.

Date: May 10, 2007                  By: /s/ STEPHEN P. SLAY
                                        ----------------------------------------
                                        Stephen P. Slay
                                        Vice President, Chief Financial Officer,
                                        Secretary and Treasurer




INDEX TO EXHIBITS

EXHIBIT
NUMBER    DESCRIPTION
------    -----------

  99.1    Press release dated May 10, 2007.