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 MARCH 31, 2001

[ ] 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)

                    60 Bowers Lane
              Closter, New Jersey 07624
       (Address of Principal Executive Offices)

                   (201) 768-2310
   (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: 9,469,944
            outstanding as of March 31, 2001

<PAGE>

      PART I - FINANCIAL INFORMATION

           TELCO-TECHNOLOGY, INC.


       Index to Financial Information
        Period Ended March 31, 2001



     Item
                                 Page Herein

Item 1 -  Financial Statements:

Condensed Balance Sheets                 3

Condensed Statements of Operations       4

Condensed Statements of Cash Flows       5

Notes to Condensed Financial Statements  6



Item 2 -  Management's Discussion and
          Analysis or Plan of Operation  9



<PAGE>


TELCO-TECHNOLOGY, INC.

CONDENSED BALANCE SHEETS


                                  March 31,      December 31,
                                   2001                2000
                                          (unaudited)

  ASSETS

Current Assets
Cash and cash equivalents         $   9,658      $    3,245
  Total Current Assets                9,658           3,245

Other Assets
Prepaid expenses                        200             200
Loan receivable from officer        198,006         198,006
  Total Other Assets                198,206         198,206

  TOTAL ASSETS                    $ 207,864      $  201,451


  LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable and
  accrued expenses                $  20,119      $   17,119
Due to related party (Note 3)        30,000              -

      Total Current Liabilities      50,119          17,119


Stockholders' Equity
Preferred stock
(2,000,000 shs authorized
 .001 par value,
none issued and/or outstanding)          -               -
Common stock
(13,000,000 shs authorized
 .001 par value
9,469,944 shares at
March 31, 2001 and 9,369,944
shares at December 31, 2000
issued and outstanding)               9,470           9,370
Capital in excess of par value    3,130,311       3,110,911
Deficit                          (2,982,036)     (2,935,949)
     Total Stockholders' Equity     157,745         184,332

TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY         $  207,864     $   201,451


See Notes to Financial Statements.

<PAGE>



TELCO TECHNOLOGY, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)


                                For the Three Months
                                  Ended March 31,
                                  2001           2000


Sales revenues                 $     -        $       -

Cost of sales                        -                -

Gross profit                         -                -

General and
administrative expenses         46,087           39,319

Loss from operations           (46,087)         (39,319)

Other income and expenses
 Interest income                     -                -
Income (loss) from
continuing operations
     before taxes              (46,087)         (39,319)

Provision for income taxes           -                -

Net income (loss)
from continuing operations     (46,087)         (39,319)

Income (loss) from
discontinued operations
   (net of income taxes)             -                -

Net loss                     $ (46,087)     $   (39,319)

Basic and diluted earnings
(loss) per common share      $   (0.00)     $     (0.00)

Basic and diluted
average shares outstanding   9,445,500         8,869,944


See Notes to Financial Statements.

<PAGE>

TELCO-TECHNOLOGY, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)

                               For the Three Months
                                  Ended March 31,
                                2001          2000

Operating Activities
Net loss from
continuing operations      $  (46,087)    $   (39,319)
Adjustments to
reconcile net loss
to net cash used by
operating activities:
 Rent adjustment                4,500           4,500
 Changes in operating
 assets of continuing
 operations:
 Accounts payable               3,000         (18,000)
 Due to related party          30,000          30,000
 Net cash used by continuing
 operations                    (8,587)        (22,819)

Financing activities
Repayment of officers' loans   15,000          20,000
Net cash provided
by financing activities        15,000          20,000

Increase (decrease) in cash     6,413          (2,819)
Cash at beginning of period     3,245          26,965
Cash at end of period          $9,658     $    24,146

Supplemental Disclosures of Cash Flow Information:

Cash paid during year for:
Interest                     $    -       $       -
Income taxes                 $    -       $       -




See Notes to Financial Statements.

<PAGE>


TELCO-TECHNOLOGY, INC.


NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)


Note 1- THE COMPANY AND BASIS OF PRESENTATION

Telco-Technology, Inc, ("Telco" or the "Company") was
incorporated in the state of Nevada on November 23, 1993 and
was reorganized as a Delaware corporation in 1998.

On June 15, 1999 the Company sold its business operations and
became a shell corporation, whose principal business is to
locate and consumate a merger or acquisition with an ongoing
business.

The accompanying unaudited financial statements have been
prepared by Telco in accordance with the rules and regulations
of the Securities and Exchange Commission for interim financial
statements.  Accordingly, certain information and footnote
disclosures, normally included in financial statements prepared
in accordance with generally accepted accounting principles,
have been condensed or omitted pursuant to such rules and
regulations.  In the opinion of management of the Company, the
unaudited financial statements reflect all adjustments,
consisting only of normal recurring adjustments, necessary for
a fair presentation of the Company's financial position at
March 31, 2001, its operating results for the three  months
ended  March  31,  2001  and 2000 and cash flows for the three
months ended March 31, 2001 and 2000.  The balance sheet at
December 31, 2000 has been derived from the Company's audited
consolidated financial statements as of that date.  These
financial statements and the notes should be read in
conjunction with the Company's audited financial statements and
notes thereto contained in the Company's annual report on Form
10-KSB for the year ended December 31, 2000 filed with the
Securities and Exchange Commission.

The results of operations for the three months ended March 31,
2001 are not necessarily indicative of the results that may be
expected for future quarters or the year ending December 31,
2001.

Note 2-     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Concentration of Credit risk

Financial instruments which potentially subject the Company to
concentration of credit risk consist of receivables from an
officer and director of the Company.

Receivables from an officer of the Company are unsecured and
represent a concentration of credit risk due to the common
employment and financial dependency of this individual on the
Company.

<PAGE>

TELCO-TECHNOLOGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)

Note 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates

The preparation of financial statements in conformity with
generally accepted accounting principles requires the Company's
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses
during the reporting period.  Actual results could differ from
those estimates.

Net Income (Loss) Per Share

In accordance with SFAS No. 128, basic net income (loss) per
share has been computed using the weighted-average number of
shares of common stock outstanding during the period, except
that pursuant to Securities and Exchange Commission Staff
Accounting Bulletin No. 98, if applicable, common shares issued
in each of the periods presented for nominal consideration have
been included in the calculation as if they were outstanding
for all periods presented.

Basic net income (loss) per share is computed by dividing net
income (loss) by the weighted average number of common shares
outstanding during the period.  Diluted net income (loss) per
share is computed by dividing net income (loss) by the weighted
average number of common and dilutive common stock equivalent
shares outstanding during the period.  The Company had no
dilutive common stock equivalent shares outstanding during the
periods presented.

Note 3-  RELATED PARTY TRANSACTIONS
In January 1999, the Company entered into a new three year
consulting agreement with Donalson Capital Corporation, a
company owned by the Chairman of the Board of Directors of
Telco-Technology, Inc. expiring in December 2001, providing for
a $10,000 monthly fee during the term of the agreement.  At
March 31, 2001 and December 31, 2000 balances of $30,000 and $0
respectively, were owed under the agreement.

On December 31, 2000 the Company issued 500,000 shares of $.001
par value common stock to Donalson Capital Corporation
("Donalson"), a company owned by the Chairman of the Board of
Telco-Technology Inc.  The shares were issued in full
satisfaction of the remaining balance payable to Donalson for
consulting services of $118,042 at December 31, 2000.

<PAGE>

TELCO-TECHNOLOGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)


Note 4-  COMMON STOCK

On January 15, 2001 the Company sold 100,000 shares of $.001
par value common stock for $15,000.



<PAGE>


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.

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 1994,
Haycock completed the sale of certain shares of its Common
Stock pursuant to an exemption provided by Rule 504 of
Regulation D promulgated under the Securities Act of 1933, as
amended. On January 27, 1995, Haycock entered into an
acquisition agreement with Telco Technology, Inc., a Delaware
corporation ("Telco").  Pursuant to the terms of the
acquisition, Haycock issued 5,000 shares of its Common Stock
which represented 60% of the then outstanding Common Stock of
Haycock.

     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 in exchange for the return of 950,000
shares of Common Stock to the Company, and the assumption of
all liabilities of the Massachusetts Operations.  As part of
the agreement, the Company also agreed to forgive all officer
loans due from such individual  (which amounted to
approximately $118,000).  As a result of the foregoing, the
Company  has no current business operations.  As such, the
Company can now be defined as a "shell" corporation, whose
principal business purpose at this time is to locate and
consummate a merger or acquisition with a private entity.

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.

     Management plans to investigate, research and, if
justified, potentially acquire or merge with one or more
businesses or business opportunities. The Company currently has
no commitment or arrangement, written or oral, to participate
in any business opportunity and management cannot predict the
nature of any potential business opportunity it may ultimately
consider. Management will have broad discretion in its search
for and negotiations with any potential business or business
opportunity.

     The Company has determined to initially limit its search
for a potential business or business opportunity to firms
involved or intending to be involved in the telecommunications
and/or internet industries.  In this regard, the Company will
not  restrict its search to any specific geographical location,
and the Company may participate in a business venture of
virtually any kind or nature.   In addition, the Company may
determine at a future date to seek a potential business or
business opportunity in another industry in the event the
Company does not consummate a transaction with a business or
business opportunity in the telecommunications and/or internet
industries.

<PAGE>

Liquidity and Capital Resources

     On March 31, 2001, the Company had a working capital
deficit of approximately $(40,000), an equity to debt ratio of
approximately 3.15 to 1, and stockholders' equity of
approximately $158,000.  At March 31, 2001, the Company had
approximately $10,000 in cash, total assets of approximately
$208,000 and total liabilities of approximately $50,000. On
December 31, 2000, the Company had a working capital deficit of
approximately $(14,000), an equity to debt ratio of
approximately 10.8 to 1, and stockholders' equity of
approximately $184,000.  At December 31, 2000, the Company had
approximately $3,000 in cash, total assets of approximately
$201,000 and total liabilities of approximately $17,000.

     As a result of the sale of the Massachusetts Operations,
the Company  has no current business operations.   As such, the
Company can now be defined as a "shell" corporation, whose
principal business purpose at this time is to locate and
consummate a merger or acquisition with a private entity.
Management expects that the sale of the Massachusetts
Operations will allow the Company to focus on other business
opportunities in its attempt to locate and consummate such a
merger or acquisition.  In view of the Company's current
limited cash position, the Company intends to complete such a
transaction in the next twelve months.  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.

     In January 2001, the Company in a private placement of
securities sold 100,000 shares of Common Stock at $.15 per
share to a director of the Company for gross proceeds of
$15,000 for working capital.  However, in order to meet certain
working capital needs and operating expenses in the next twelve
months in the Company's attempt to locate and effect a business
combination, it may be necessary for the Company to attempt to
raise additional funds.  As of the date hereof, the Company has
not made any arrangements to raise any capital.  In the event
the Company does attempt to raise capital most likely the only
method available to the Company would be a private sale of its
securities.  Because of the current status of the Company as a
"shell" corporation, it is unlikely that it would be able to
obtain additional funding from either a bank or other
commercial lender.  There can be no assurance  that the Company
will be able to obtain additional funding when needed, or that
such funding, if available, can be obtained on terms acceptable
to the Company.  In addition, there can be no assurance that
the Company will be able to acquire any business or business
opportunity within such period of time or at any time at all,
or that any business or business opportunity the Company
acquires will prove successful or  will be able to operate
profitably.

Forward-Looking Statements

     This report contains certain forward-looking statements
that are based upon the beliefs and assumptions of, and
information available to, the management of the Company at the
time such statements are made.  Words such as "expects",
"anticipates", "intends", "plans", "believes", "seeks",
"estimates", or variations of such words and similar
expressions are intended to identify such forward-looking
statements.  The statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions which are difficult to predict.  Therefore, actual
outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements.
The Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new
information, future events or otherwise.

<PAGE>                                     
<PAGE>
        PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

      None.

Item 2.  Changes in Securities.

          In January 2001, the Company in a private placement of
     securities sold 100,000 shares of Common Stock at $.15
     per share to Thomas N. Fischetti, a director of the
     Company, for gross proceeds of $15,000.  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.

       None.

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.

      There are no exhibits applicable to this Form 10-QSB.

         (b)  Reports on Form 8-K.

         Listed below are reports on Form 8-K filed during the
       fiscal quarter ended March 31, 2001.

       None.


<PAGE>

                        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: May 10, 2001        By: /s/ Donald R. McKelvey
                               Donald R. McKelvey,
                               Chairman of the Board and
                               President



Dated: May 10, 2001        By: /s/ Donald R. McKelvey
                               Donald R. McKelvey,
                               Principal Financial Officer