SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  Schedule 13D

                    Under the Securities Exchange Act of 1934

                               (Amendment No. __)

                                    SBE, Inc.
--------------------------------------------------------------------------------
                                (Name of Issuer)


                                  Common Stock
--------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                    783873201
--------------------------------------------------------------------------------
                                 (CUSIP Number)

                                   Daniel Grey
                                    SBE, Inc.
                           2305 Camino Ramon, Ste. 200
                               San Ramon, CA 94583
                                 (925) 355-2000
--------------------------------------------------------------------------------
                  (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)


                                December 31, 2004
--------------------------------------------------------------------------------
                      (Date of Event which Requires Filing
                               of this Statement)

         If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box [GRAPHIC OMITTED].

         NOTE: Schedules filed in paper format should include a signed original
and five (5) copies of the schedule. See Rule 13d-7(b) for other parties to whom
copies are to be sent.

         *    The remainder of this cover page shall be filled out for a
              reporting person's initial filing on this form with respect to
              the subject class of securities, and for any subsequent
              amendment containing information which would alter disclosures
              provided in a prior cover page.

         The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).


                         (Continued on following pages)
                               (Page 1 of 4 Pages)



--------------------------------------------------------------------------------
CUSIP NO.    783873201               13D                       Page 2 of 4 Pages
--------------------------------------------------------------------------------
   1      NAME OF REPORTING PERSONS
          S.S.     OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

          Daniel Grey
--------------------------------------------------------------------------------
   2      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                               (a) |_| (b) |_|
--------------------------------------------------------------------------------
   3      SEC USE ONLY
                    
--------------------------------------------------------------------------------
   4      SOURCE OF FUNDS (See Instructions)
 
          PF
--------------------------------------------------------------------------------
   5      CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO 
          ITEMS 2(d) OR 2(e)                                       |_|

--------------------------------------------------------------------------------
   6      CITIZENSHIP OR PLACE OF ORGANIZATION

          United States
--------------------------------------------------------------------------------
                       7     SOLE VOTING POWER - 375,001
       NUMBER
         OF           ----------------------------------------------------------
       SHARES          8     SHARED VOTING POWER - 0
    BENEFICIALLY       
      OWNED BY        ----------------------------------------------------------
     REPORTING         9     SOLE DISPOSITIVE POWER - 375,001
       PERSON         
        WITH          ----------------------------------------------------------
                       10    SHARED DISPOSITIVE POWER - 0

--------------------------------------------------------------------------------
   11     AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON - 
          375,001(1)

--------------------------------------------------------------------------------
   12     CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES
                                                                   |-|
--------------------------------------------------------------------------------
   13     PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 - 6.7%
--------------------------------------------------------------------------------
   14     TYPE OF REPORTING PERSON - IN
--------------------------------------------------------------------------------

(1)  Includes 375,001 shares subject to outstanding options exerciseable within
     60 days of December 31, 2004.


Item 1:  Security and Issuer.

         Class of Securities:       Common Stock

         Issuer:                    SBE, Inc. ("Issuer")

         Principal Address:         2305 Camino Ramon, Suite 200
                                    San Ramon, CA 94583

Item 2:  Identity and Background.

         (a)      Reporting Persons:

                  Daniel Grey

         (b)      Principal Business Address:

                  SBE, Inc.
                  2305 Camino Ramon, Suite 200
                  San Ramon, CA 94583

         (c)      Principal Occupation/Principal Business: President and Chief
                  Executive Officer of SBE, Inc.

         (d)      None.

         (e)      None.

         (f)      Not applicable.


Item 3:  Source and Amount of Funds or Other Consideration.

         Personal funds.

Item 4:  Purpose of Transaction.

         Investment purpose.

Item 5:  Interest in Securities of the Issuer.

(a)      Shares Owned   375,001 (includes 375,001 shares exercisable within 60 
         days from December 31, 2004).

(b)      Percentage of Class 6.7%

(c)      See Item 3 above.

(d)      Not applicable.

(e)      Not applicable.

Item 6:  Contracts, Arrangements, Understandings or Relationships with Respect 
         to Securities of the Issuer.

         Not applicable.

Item 7:  Material to be Filed as Exhibits.

         Not applicable.


         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Date:    February 9, 2005



By:      /s/ Daniel Grey                    
   ----------------------------
         Daniel Grey