SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC 20549

                          FORM 10-QSB

     [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended JUNE 30, 2004

     [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934

    For the transition period from            to


                 Commission file number 0-28887


                     TELCO-TECHNOLOGY, INC.
(Exact name of Small Business Issuer as Specified in its Charter)


Delaware                                                22-3328734
(State or Other Jurisdiction                      (I.R.S. Employer
of Incorporation or                                 Identification
Organization)                                              Number)

                       68 Skyview Terrace
                   Clifton, New Jersey 07013
            (Address of Principal Executive Offices)

                         (973) 523-0835
        (Issuer's Telephone Number, Including Area Code)


Check whether the Issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

            Yes  [ X ]          No  [     ]


State the number of shares outstanding of each of the Issuer's
classes of common equity, as of the latest practicable date:

         Common, $.001 par value per share: 28,974,944
                outstanding as of June 30, 2004




                PART I - FINANCIAL INFORMATION

                     TELCO-TECHNOLOGY, INC.


                 Index to Financial Information
                   Period Ended June 30, 2004


Item
                                        Page

Item 1 -  Financial Statements:

Balance Sheet                             3

Statements of Expenses                    4

Statements of Cash Flows                  5

Notes to Financial Statements             6

Item 2 -  Management's Discussion and
          Analysis or Plan of Operation   7

Item 3 -  Controls and Procedures         8



                     Telco-Technology, Inc.
                          Balance Sheet
                          June 30, 2004
                           (unaudited)



   ASSETS

Cash                                                $     1,226
                                                    -----------
    Total Assets                                    $     1,226
                                                    ===========


   LIABILITIES & STOCKHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                                   $    20,091
 Accrued expenses                                        21,849
 Notes payable                                           93,253
 Notes payable to shareholder                            25,000
                                                    -----------
    Total Current Liabilities                           160,193
                                                    -----------


    STOCKHOLDERS' DEFICIT

Preferred stock, $.001 par, 20,000,000 shares
  authorized, none issued or outstanding
Common stock, $.001 par, 200,000,000 shares
  authorized, 28,974,944 shares issued and
  outstanding                                            28,975
Paid-in capital                                       4,398,266
Retained deficit                                     (4,586,208)
                                                    -----------
    Total Stockholders' Deficit                        (158,967)
                                                    -----------
    Total Liabilities & Stockholders' Deficit       $     1,226
                                                    ===========




                     Telco-Technology, Inc.
                     Statements Of Expenses
     Three Months & Six Months Ended June 30, 2004 and 2003
                           (unaudited)

<TABLE>
<CAPTION>

                                  Three Months            Six Months
                                 Ended June 30,          Ended June 30,
                                2004       2003         2004       2003
                             ---------   ---------   ---------   ---------

<S>                         <C>          <C>         <C>         <C>


General & administrative$      279,169   $   55,950  $ 572,828   $ 136,716
Bad debt recovery
Interest expense                 2,039        1,956      2,039       3,890
                             ---------    ---------   ---------  ---------
Net loss                     $(281,208)    $(57,906) $(574,867)  $(140,606)
                             =========    =========  =========   =========

Basic and diluted net
  loss per common share          $(.01)       $(.00)     $(.02)      $(.01)

Weighted average common
  shares outstanding        27,308,277   16,969,944  25,964,944  16,580,361



</TABLE>




                     Telco-Technology, Inc.
                    Statements Of Cash Flows
             Six Months Ended June 30, 2004 and 2003
                           (unaudited)




                                               2004        2003
                                            ---------    ---------

CASH FLOWS FROM OPERATIONS
 Net loss                                   $(574,867)  $(140,606)
 Adjustments to reconcile net loss to
  cash used in operating activities:
   Stock issued for services                  557,900      85,995
 Changes in:
  Accrued expenses                              4,012      43,897
  Accounts payable                              7,763       4,490
                                            ---------   ---------
      NET CASH USED IN OPERATING ACTIVITIES    (5,192)     (6,224)

CASH FLOWS FROM FINANCING ACTIVITIES
 Proceeds from notes payable to shareholder    25,000          -
 Payments on notes payable                    (20,000)         -
                                            ---------   ---------
      NET CASH PROVIDED
      BY FINANCING ACTIVITIES                   5,000          -
                                            ---------   ---------
NET CHANGE IN CASH                               (192)     (6,224)

CASH BEGINNING                                  1,418      10,299
                                            ---------   ---------
CASH ENDING                                 $   1,226   $   4,075
                                            =========   =========

Non-Cash Disclosures:
 Stock issued for accrued expenses and
  accounts payable                         $  74,000 $  85,000









                     Telco-Technology, Inc.
                 Notes To Financial Statements
                           (unaudited)


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of Telco-
Technology, Inc., a Delaware corporation ("Telco"), have been
prepared in accordance with accounting principles generally
accepted in the United States of America and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in
conjunction with the audited financial statements and notes
thereto contained in the Telco's latest Annual Report filed with
the SEC on Form 10-KSB.  In the opinion of management, all
adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the
results of operations for the interim periods presented have been
reflected herein.  The results of operations for interim periods
are not necessarily indicative of the results to be expected for
the full year.  Notes to the financial statements which would
substantially duplicate the disclosure contained in the audited
financial statements for the most recent fiscal year, 2003, as
reported in Form 10-KSB, have been omitted.


NOTE 2 - COMMON STOCK

In January 2004, Telco issued 1,000,000 shares of common stock to
Donalson Corporation valued at $180,000 for payment of the
$74,000 owed for the consulting agreement as of December 31, 2003
and $106,000 for additional consulting services.

In January 2004, Telco issued 1,000,000 shares of common stock
valued at $180,000 for consulting services.

In April 2004, Telco issued 2,020,000 shares of common stock
valued at $151,900 for services.

In May 2004, Telco issued 2,000,000 shares of common stock valued
at $120,000 for services.


NOTE 3 - LOANS FROM SHAREHOLDERS

In March 2004, Donald McKelvey loaned $20,000 to Telco for
payment of outstanding notes.  The note is due on demand, bears
8% interest and has no collateral.

In June 2004, Donald McKelvey loaned $5,000 to Telco for
operations.  The note is due on demand, bears 8% interest and has
no collateral.








Item 2.   Management's Discussion and Analysis or Plan of
          Operation.

     The  following discussion should be read in conjunction with
the  Financial  Information and Notes thereto  included  in  this
report and is qualified in its entirety by the foregoing.

Forward-Looking Statements

      This report contains certain forward-looking statements and
information relating to the Company that are based on the beliefs
and  assumptions  made  by the Company's management  as  well  as
information currently available to the management.  When used  in
this document, the words "anticipate", "believe", "estimate", and
"expect"  and  similar  expressions,  are  intended  to  identify
forward-looking statements.  Such statements reflect the  current
views  of  the  Company  with respect to future  events  and  are
subject to certain risks, uncertainties and assumptions.   Should
one  or  more  of  these risks or uncertainties  materialize,  or
should underlying assumptions prove incorrect, actual results may
vary  materially  from  those described  herein  as  anticipated,
believed,  estimated or expected.  Certain  of  these  risks  and
uncertainties are discussed  under the caption "Uncertainties and
Risk Factors" in  Part I, Item 1 "Description of Business" of the
Company's  Annual  Report  on Form  10-KSB  for  the  year  ended
December  31,  2003. The Company does not intend to update  these
forward-looking statements.

Overview

      Telco-Technology, Inc. (the "Company") was organized  under
the  laws  of the State of Nevada on November 23, 1993 under  the
name Haycock Morrison Inc. ("Haycock").  In January 1995, Haycock
entered  into  an  acquisition agreement with  Telco  Technology,
Inc.,  a Delaware corporation ("Telco").  After giving effect  to
the  above  transaction,  the Company ceased  all  activities  as
Haycock  and  changed  its  name to Telco-Technology,  Inc.   The
Company continued the business operations then conducted by Telco
of  providing  long  distance  telephone  services  and  computer
networks  for voice and data transmissions which operations  were
primarily   conducted   in  the  State  of   Massachusetts   (the
"Massachusetts   Operations").   In   1998,   the   Company   was
reorganized  as  a  Delaware corporation.  The Company  continued
such operations until June 1999.

      In June 1999, the Company sold the Massachusetts Operations
to a company affiliated with a former officer and director of the
Company.   As  a  result of the foregoing,  the  Company  has  no
current  business  operations and since  then  has  been  seeking
another business opportunity.

Plan of Operation

      In  1999, management decided that it would be in  the  best
interests  of the Company and its stockholders to seek additional
business opportunities and sell the Massachusetts Operations, its
then  sole  business operations. As a result of the sale  of  the
Massachusetts Operations which occurred in June 1999, the Company
has  no  current  business operations.  As  such,  the  Company's
principal  business  purpose  at  this  time  is  to  locate  and
consummate  a  merger or acquisition with a private entity.  With
the  sale  of the Massachusetts Operations, Management  has  been
focusing on other business opportunities in its attempt to locate
and  consummate such a merger or acquisition. It should be  noted
that  the  Company likely has insufficient capital with which  to
make  any  acquisitions.  Accordingly, in any of the transactions
to  merge with or acquire a private entity, it is likely that the
consideration utilized to make any acquisitions will  consist  of
equity securities.

     Management anticipates that it may be able to participate in
only  one  potential  business  venture,  due  primarily  to  the
Company's  limited  financing.  In September  2003,  the  Company
signed  a letter of intent to merge with a Hong Kong-based  media
company  with  operations in Beijing, China.  In June  2004,  the
Company  terminated the proposed transaction as  contemplated  by
the letter of intent.  As a result, the Company will continue its
search  to  locate  and consummate a merger or  acquisition  with
another entity.   There can be no assurance that the Company will
be  able  to complete any transaction to acquire any business  or
business   opportunity,  or  that  any   business   or   business
opportunity the Company acquires will prove successful or will be
able to operate profitably.

      The  Company  reported no revenue from operations  for  the
three and six months ended June 30, 2004 and June 30, 2003.   The
Company   recognized   approximately   $279,000   and   $573,000,
respectively,  in  general and administrative  expenses  for  the
three   and   six  months  ended  June  30,  2004   compared   to
approximately $56,000 and $137,000 for the three and  six  months
ended  June  30, 2003.  Such increase was primarily  due  to  the
recognition  of  expenses which occurred during  the  six  months
ended June 30, 2004 resulting from the dollar value attributed to
the  issuance  of  shares for services.  For the  three  and  six
months  ended  June  30, 2004, the Company  had  a  net  loss  of
approximately $281,000 and $575,000, respectively, compared to  a
net loss of approximately $58,000 and $141,000, respectively, for
the three and six months ended June 30, 2003.

Liquidity and Capital Resources

      On June 30, 2004, the Company had a working capital deficit
of   approximately  $(159,000)  and  stockholders'   deficit   of
approximately  $(159,000).  At June 30,  2004,  the  Company  had
approximately  $1,000  in  cash, total  assets  of  approximately
$1,000 and total liabilities of approximately $160,000.

     During 2002, the Company obtained loans from certain private
parties  in the aggregate amount of $110,000.  All of such  loans
bear  interest at 6.75% and mature in six months after  issuance.
In  March 2004, Donald R. McKelvey loaned $20,000 to the  Company
which  proceeds  were used to repay a portion of the  outstanding
loans.   As of the date hereof, the Company is in default of  the
balance  of these loans.  In addition, in June 2004, Mr. McKelvey
loaned $5,000 to the Company for operations.  The loans from  Mr.
McKelvey are due on demand and bear interest at 8% per annum.

       As  a  result  of  the  Company's  recurring  losses  from
operations  and net capital deficiency, the Company's independent
auditor's  report,  dated  March 4,  2004,  for  the  year  ended
December 31, 2003, states that these conditions raise substantial
doubt about the Company's ability to continue as a going concern.
With  the sale of the Massachusetts Operations in June 1999,  the
Company's  only  operating division, the Company has  no  current
operations.  Since then, the Company has been focusing  on  other
business opportunities in its attempt to locate and consummate  a
merger  or  acquisition with a private entity.  There can  be  no
assurance, however, that the Company will be able to acquire  any
business or business opportunity or that any business or business
opportunity the Company acquires will prove successful or will be
able to operate profitably.


Item 3.        Controls and Procedures.

     The  Company's  Principal Executive  Officer  and  Principal
Financial Officer has reviewed the Company's disclosure  controls
and  procedures  as  of  the end of the period  covered  by  this
report.   Based upon this review, such officer believes that  the
Company's  disclosure controls and procedures  are  effective  in
timely  alerting  him  to  material information  required  to  be
included  in this report. There have been no significant  changes
in internal control over financial reporting that occurred during
the  fiscal  quarter covered by this report that have  materially
affected,  or  are  reasonably likely to materially  affect,  the
Company's internal control over financial reporting.

                   PART II - OTHER INFORMATION


Item 1.        Legal Proceedings.

          None.


Item 2.        Changes in Securities.

          In  April 2004, the Company issued 1,000,000 shares  to
          Donalson Capital Corporation, a company owned by Donald
          R.  McKelvey, for consulting services which shares were
          valued  at  $75,000.  In May 2004, the  Company  issued
          1,000,000  shares to Donald R. McKelvey for  consulting
          services, which shares were valued at $60,000.  All  of
          such  shares were issued in reliance upon the exemption
          from  registration  pursuant to  Section  4(2)  of  the
          Securities  Act of 1933, as amended, for  "transactions
          by the issuer not involving any public offering".


Item 3.        Defaults Upon Senior Securities.

          During  2002,  the Company obtained loans from  certain
          private  parties in the aggregate amount  of  $110,000.
          All of such loans bear interest at 6.75% and mature  in
          six  months after issuance.  In March 2004,  Donald  R.
          McKelvey  loaned $20,000 to the Company which  proceeds
          were  used to repay a portion of the outstanding loans.
          As of the date hereof, the Company is in default of the
          balance of these loans.


Item  4.        Submission  of Matters to a  Vote  of  Security-
                Holders.

          None.


Item 5.        Other Information.

          None.


Item 6.        Exhibits and Reports on Form 8-K.

          (a)  Exhibits.

          31.1 Certification of Chief Executive Officer pursuant
     to Section 302 of the Sarbanes-Oxley Act
     of 2002 (Rules 13a-14 and 15d-14 of the Exchange Act)
          31.2 Certification of Principal Financial Officer
     pursuant to Section 302 of the Sarbanes-Oxley
     Act of 2002 (Rules 13a-14 and 15d-14 of the Exchange Act)
          32.1 Certification pursuant to Section 906 of the
     Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

        (b)  Reports on Form 8-K.

          Listed  below are reports on Form 8-K  filed
          during the fiscal quarter ended June 30, 2004.

          Form  8-K  (date of report: June 10,  2004);
          Items  reported  - Item 5 (termination of transaction
          contemplated  by letter of intent); no
          financial  statements filed.


                           SIGNATURES

     In accordance with the requirements of the Exchange Act, the
Registrant caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                   TELCO-TECHNOLOGY, INC.
                                   (Registrant)



Dated: August 18, 2004         By: /s/ Donald R. McKelvey
                                   Donald R. McKelvey,
                                   Chairman of the Board and
                                   President



Dated: August 18, 2004         By: /s/ Donald R. McKelvey
                                   Donald R. McKelvey,
                                   Principal Financial Officer