8-K

                        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

                                October 20, 2006
                                (Date of Report)


                            ALANCO TECHNOLOGIES, INC.
             (Exact name of Registrant as specified in its charter)

                                    0-9437
                            (Commission File No.)

               Arizona                                  86-0220694
      (State or other jurisdiction)         ( IRS Employer Identification No.)

               15575 N 83RD WAY, SUITE 3, SCOTTSDALE, ARIZONA 85260
              (Address of Principal Executive Office)      (Zip Code)

                                  (480)607-1010
              (Registrant's telephone number, including area code)

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):

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

( ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CRF 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 240.134-4(c))

Item 2.02 Results of Operations and Financial Condition

On October 16, 2006, Alanco Technologies, Inc. announced estimated revenues in
excess of $5 million for its 2007 fiscal year first quarter ended September 30,
2006.  This compares to $1.6 million reported for the comparable quarter for
the prior fiscal year.

The Company issued a press release announcing the estimated revenue on October
16, 2006, a copy of which is attached hereto as Exhibit 99.1.

This information shall not be deemed to be "filed" for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
otherwise subject to the liabilities of that Section, and is not incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as expressly set forth by specific reference in such
filing.

Item 9.01  Financial Statements and Exhibits

(c) Exhibits:

    99.1  Press release dated October 16, 2006.

                                   SIGNATURE

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: October 20, 2006                     ALANCO TECHNOLOGIES, INC.
                                        By: /s/ John A Carlson
                                           -------------------
                                           Chief Financial Officer

EX-99

FOR IMMEDIATE RELEASE

CONTACTS:   Alanco Investor Relations              Equity Communications
            (480) 607-1010                         Ira Weingarten
            www.alanco.com                         (805) 897-1880
                                                   ira@equitycommunication.com

          Alanco Announces First Quarter Revenues to Exceed $5 Million

                      Triple Comparable Quarter Prior Year

(Scottsdale, AZ - October 16, 2006) - Alanco Technologies, Inc., Scottsdale, AZ
(NASDAQ: ALAN), a leading provider of wireless tracking and asset management
solutions, said today that it expects to report record revenues for the first
quarter, ended September 30, 2006, in excess of $5 million, compared to the $1.6
million reported for the comparable quarter a year earlier. The record first
quarter sales are attributable to contributions by the Company's Wireless Asset
Management business segment, created by the acquisition of StarTrak Systems,
LLC, ("StarTrak") on June 30, 2006. StarTrak is the world's leading supplier of
wireless tracking and asset management services for the "Reefer" (refrigerated
truck and railroad car) industry, and is enjoying an accelerated growth rate.

According to StarTrak President, Tim Slifkin, "Significant long-term investments
in new technologies have begun to pay off in larger contract wins." At the same
time, he said, "Recurring revenues continue to improve significantly as we add
units to our network." Slifkin attributed this success to the comprehensive
value model that StarTrak has created for its customers. "In essence, we provide
our customers with the ability to monitor and control their mobile assets
anywhere in the world, and if necessary, intervene in real-time should something
go awry."

Robert R. Kauffman, Alanco Chairman and Chief Executive Officer, commented, "We
expect our strong first quarter revenues will result in significantly improved
financial performance and now believe that FY2007 is truly shaping up as our
break-out year. Our primary turnaround vehicle will continue to be StarTrak
Systems, with their large current order backlog and recent, well-received new
product introductions, such as the RFID-based ReeferTrak(R) Scout and cellular
based ReeferTrak(R) Sentry. Also, we are confident that recent new sales
developments in our TSI PRISM wireless inmate tracking business will finally
result in significant FY2007 financial contributions from this pioneering
developer of RFID real-time tracking technologies."

Alanco  Technologies,  Inc. (NASDAQ:  ALAN),  headquartered in Scottsdale,
Arizona, is a rapidly growing provider of wireless tracking and asset management
solutions through its StarTrak Systems and Alanco/TSI PRISM  subsidiaries.
Corporate website:  www.alanco.com

StarTrak is a leading provider of GPS tracking and wireless asset management
services to the transportation industry and the dominant provider of tracking,
monitoring and control services to the refrigerated or "Reefer" segment of the
transportation marketplace. StarTrak products increase efficiency and reduce
costs of the refrigerated supply chain through the wireless monitoring and
control of critical Reefer data, including GPS location, cargo temperatures and
Reefer fuel levels. StarTrak offers complete integrated solutions for tracking,
monitoring and controlling refrigerated trailers, trucks, railcars, and
containers. Additional information is available at www.StarTrak.com.

Alanco/TSI PRISM is the leading provider of RFID real-time tracking technologies
for the corrections industry. TSI PRISM systems track and record the location
and movement of inmates and officers, resulting in enhanced facility safety and
security and significant staff productivity improvements. Utilizing proprietary
RFID (Radio Frequency Identification) tracking technology, TSI PRISM provides
real-time inmate and officer identification, location and tracking both indoors
and out, and is currently utilized in prisons in Michigan, California, Illinois,
Ohio, Missouri, and Virginia. Additional information is available at
www.TSIPRISM.com.

The Company also participates in the data storage industry through
Excel/Meridian Data, Inc., its wholly owned subsidiary, a manufacturer of
Network Attached Storage (NAS) systems.

EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE,
BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT;
COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW
TECHNOLOGIES WHICH MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES;
FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY'S STRATEGIES; THE ABILITY
TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND TO REMAIN IN COMPLIANCE
WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING
AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND
RELATIONSHIPS.

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