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 SEPTEMBER 30, 2002

[ ] 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: 12,974,944
    outstanding as of September 30, 2002

<PAGE>

      PART I - FINANCIAL INFORMATION

           TELCO-TECHNOLOGY, INC.


       Index to Financial Information
      Period Ended September 30, 2002



     Item
                                           Page

Item 1 -  Financial Statements:

Balance Sheet                                3

Statements of Operations                     4

Statements of Cash Flows                     5

Notes to Financial Statements                 6

Item 2 -  Management's Discussion and
          Analysis or Plan of Operation       8


<PAGE>


Telco-Technology, Inc.
Balance Sheet
As of September 30, 2002

<TABLE>
<CAPTION>

<S>                                                            <C>

   ASSETS

Cash                                                           $    14,942
                                                               -----------
    Total Assets                                               $    14,942
                                                               ===========


 LIABILITIES & STOCKHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                                              $    31,856
 Accrued expenses                                                   62,979
 Notes payable                                                     110,000
                                                               -----------
    Total Current Liabilities                                      204,835

Long Term Liabilities
 Notes payable                                                       3,253
                                                               -----------
  Total Liabilities                                                208,088
                                                               -----------

    STOCKHOLDERS' DEFICIT

Preferred stock, $.001 par, 2,000,000 shares
  authorized, none issued or outstanding
Common stock, $.001 par, 13,000,000 shares
  authorized, 12,974,944 shares issued and
  outstanding                                                       12,975
Additional paid-in capital                                       3,404,129
Retained deficit                                                (3,610,250)
                                                               -----------
    Total Stockholders' Deficit                                 (  193,146)
                                                               -----------
    Total Liabilities & Stockholders' Deficit                  $    14,942
                                                               ===========

</TABLE>

<PAGE>



Telco-Technology, Inc.
Statements Of Operations
For the Three Months & Nine Months Ended September 30, 2002 and 2001

<TABLE>
<CAPTION>

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


                                         Three Months                      Nine Months
                                        Ended Sept. 30,                  Ended Sept. 30,
                                  2002                2001         2002                 2001
                               ---------            ---------    ---------           ---------
General & administrative       $ 132,924            $  22,015    $ 529,881           $ 109,181
Bad debt recovery                                                 ( 10,000)
Interest expense                   6,184                             7,979
                               ---------            ---------    ---------           ---------
Net loss                       $(139,108)           $ (22,015)   $(527,860)          $(109,181)
                               =========            =========    =========           =========

Basic and diluted net
  loss per common share            $(.01)               $(.00)       $(.04)              $(.01)

Weighted average common
  shares outstanding          12,591,611            9,469,944   12,056,055           9,458,833


</TABLE>

<PAGE>


Telco-Technology, Inc.
Statements Of Cash Flows
For the Nine Months Ended September 30, 2002 and 2001

<TABLE>
<CAPTION>

<S>                                                    <C>                 <C>

                                                          2002                2001
                                                       ---------           ---------

CASH FLOWS FROM OPERATIONS
Net loss                                               $(527,860)          $(109,181)
Adjustments to reconcile net loss to
cash used by operating activities:
      Stock issued for services                          362,600
      Bad debt provision                                  25,000
 Changes in:
    Accrued expenses                                      62,979
  Accounts payable                                         3,236               5,000
  Due to related party                                                        90,000
                                                       ---------           ---------
NET CASH USED BY OPERATING ACTIVITIES                   ( 74,045)           ( 14,181)
                                                       ---------           ---------
CASH FLOWS FROM INVESTING ACTIVITIES
 Loans                                                  ( 35,000)
 Repayments of loans                                      10,000
                                                       ---------
   NET CASH FLOWS USED BY INVESTING ACTIVITIES          ( 25,000)
                                                       ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of common stock                                                         15,000
Proceeds from notes payable                              110,000
Contribution to capital                                    3,810
                                                       ---------           ---------
      NET CASH PROVIDED BY FINANCING ACTIVITIES          113,810              15,000
                                                       ---------           ---------
NET CHANGE IN CASH                                        14,765                 819

CASH BEGINNING                                               177               3,245
                                                       ---------           ---------
CASH ENDING                                             $ 14,942           $   4,064
                                                       =========           =========


</TABLE>

<PAGE>

Telco-Technology, Inc.
Notes To Financial Statements


NOTE A - 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 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, 2001, as reported in Form 10-KSB,
have been omitted.


NOTE B - NOTE RECEIVABLE & BAD DEBT RECOVERY

In March 2002, Telco loaned $35,000 to Screenphone.net, Inc. in
connection with a possible merger of the two companies.  Merger
negotiations have since ceased. As of March 31, 2002, Telco had
deemed the note uncollectible and had written the entire
$35,000 off.  In June 2002, Telco collected $10,000 of the
previously written off amount.


NOTE C - NOTES PAYABLE

In March 2002, Telco issued promissory notes in the amount of
$85,000.  The notes bear 6.75% interest and mature six months
after the date of issuance.  As of September 30, 2002, Telco
defaulted on these notes.  A 5 percent late fee totaling $4,250
has been accrued as a result of the default.

In July 2002, Telco issued a promissory note in the amount of
$25,000.  The note bears 6.75% interest and matures six months
after the date of issuance.


NOTE D - COMMON STOCK

In May 2002, Telco issued 5,000 shares of common stock for
payment of accounts payable of $533.

In May and June 2002, Telco issued 40,000 shares of common
stock for services valued at $11,200.

In the third quarter of 2002, Telco issued 710,000 shares of
common stock for services valued at $96,900.

In March 2002, as amended in May 2002, Telco entered into a one
year consulting agreement with a third party.  The consultant
will receive a total of 2,500,000 shares of Telco stock over
the term of the agreement.  550,000 shares are to be issued on
the 21st day of March, July, September and November 2002.  The
remaining 300,000 shares are to be issued on the 21st day of
January 2003.  The first 550,000 shares were issued on March
21, 2002 and were valued at the then trading price of $.35 per
share for total consulting expense of $192,500.  On May 21,
2002, Telco and the consultant agreed to

<PAGE>

issue 200,000 of the
550,000 shares due on July 21st. The 200,000 shares were
valued at the then trading price of $.31 per share for total
consulting expense of $62,000.  Effective October 29, 2002,
Telco terminated this agreement.  No additional shares have
been issued under this agreement.


<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.

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,
2001. 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 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 (the "Securities
Act"). 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.
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 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.  With the sale of the
Massachusetts Operations, Management has been

<PAGE>


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.

     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.

     On March 18,  2002, the Company entered  into a letter of
intent (the "Letter of Intent") to acquire all of the outstanding
shares of capital  stock of ScreenPhone.net Inc., a Nevada
corporation ("ScreenPhone")  in exchange for  shares of
Convertible Preferred Stock of the Company.  Subsequent to the end
of the first quarter of 2002, the parties agreed not to proceed
with the proposed business combination.  As a result, the Company
has resumed its search for a potential business or business
opportunity.  In May 2002, the Company entered into another letter
of intent to acquire an 80% ownership interest in an internet
appliance company. Negotiations have since ceased.  There can be
no assurance that the Company will be able to acquire any other
business or business opportunity at all, or that any business or
business opportunity the Company acquires will prove successful
or will be able to operate profitably.

Liquidity and Capital Resources

     On September 30, 2002, the Company had a working capital
deficit of approximately $(190,000), a deficit to debt ratio of
approximately (.93) to 1, and stockholders' deficit of
approximately $(193,000).  At September 30, 2002, the Company had
approximately $15,000 in cash, total assets of approximately
$15,000 and total liabilities of approximately $208,000.

     During the quarter ended March 31, 2002, the Company
obtained loans from certain private parties
in the aggregate amount of $85,000.  All of such loans bear
interest at 6.75% and mature in six months after issuance.  As of
September 30, 2002, the Company defaulted on these loans.  A 5%
late fee totaling $4,250 has been accrued as a result of the
default.  In July 2002, the Company obtained another loan in the
amount of $25,000 from a certain private party.  The loan bears
interest at 6.75% and matures in six months after issuance.
During the quarter ended March 31, 2002, the Company loaned
$35,000 to ScreenPhone in connection with the transaction
contemplated by the Letter of Intent.  As a result of the decision
to not proceed with the proposed business combination, the Company
as of March 31, 2002 had deemed the note due from ScreenPhone as
uncollectible and had written the entire $35,000 off as of March
31, 2002.  During the quarter ended June 30, 2002, the Company
collected $10,000 of the previously written off amount.

<PAGE>

          PART II - OTHER INFORMATION

Item 1.        Legal Proceedings.

               None.

Item 2.        Changes in Securities.

               None.

Item 3.        Defaults Upon Senior Securities.

               During the quarter ended March 31, 2002, the
               Company obtained loans from certain private
               parties in the aggregate amount of $85,000.  All
               of such loans bear interest at 6.75% and mature in
               six months after issuance.  As of September 30,
               2002, the Company defaulted on these loans.  A 5%
               late fee totaling $4,250 has been accrued as a
               result of the default.

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.

               99.1 Certification pursuant to U.S.C. Section
               1350, as adopted pursuant to Section 906
               of the Sarbanes-Oxley Act of 2002

               (b)  Reports on Form 8-K.

               Listed below are reports on Form 8-K filed during
               the fiscal quarter ended September 30, 2002.

               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:   November 13, 2002    By:  /s/ Donald R. McKelvey
                                   Donald R. McKelvey,
                                   Chairman of the Board and
                                   President

Dated:   November 13, 2002    By:  /s/ Donald R. McKelvey
                                   Donald R. McKelvey,
                                   Principal Financial Officer


<PAGE>

               CERTIFICATIONS

I, Donald R. McKelvey, certify that:

1.    I have reviewed this quarterly report on Form 10-QSB of
Telco-Technology, Inc.;

2.   Based on my knowledge,  this quarterly report does not
contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements  made, in light
of the  circumstances  under which such statements  were made, not
misleading with respect to the period covered by this quarterly
report;

3.   Based on my  knowledge,  the  financial  statements,  and
other  financial information  included  in this quarterly report,
fairly present  in all material respects the financial  condition,
results of operations and cash flows of the  registrant  as of,
and for,  the  periods  presented  in this quarterly  report;

4.   The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have:

     (a)  designed such disclosure controls and procedures
to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;

     (b)  evaluated the effectiveness of the registrant's
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the "Evaluation
Date"); and

     (c)  presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent
functions):

     (a)  all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrant's ability to record, process, summarize and report
financial data and have identified for the registrant's auditors
any material weaknesses in internal controls; and

     (b)  any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrant's internal controls; and

6.   The registrant's other certifying officers and I have
indicted in this quarterly report whether or not there were
significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the
date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material
weaknesses.

Date:     November 13, 2002   /s/ Donald R. McKelvey
                                  Donald R. McKelvey,
                                  Chairman of the Board and President
                                  (Principal Executive Officer)

<PAGE>

I, Donald R. McKelvey, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of
Telco-Technology, Inc.;

2.   Based on my knowledge,  this quarterly report does not
contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements  made, in light
of the  circumstances  under which such statements  were made, not
misleading with respect to the period covered by this quarterly
report;

3.   Based on my  knowledge,  the  financial  statements,  and
other  financial information  included  in this quarterly report,
fairly present  in all material respects the financial  condition,
results of operations and cash flows of the  registrant  as of,
and for,  the  periods  presented  in this quarterly  report;

4.   The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have:

     (a)  designed such disclosure controls and procedures
to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;

     (b)  evaluated the effectiveness of the registrant's
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the "Evaluation
Date"); and

     (c)  presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's
board of directors (or persons performing the equivalent
functions):

     (a)  all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrant's ability to record, process, summarize and report
financial data and have identified for the registrant's auditors
any material weaknesses in internal controls; and

     (b)  any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrant's internal controls; and

6.   The registrant's other certifying officers and I have
indicted in this quarterly report whether or not there were
significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the
date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material
weaknesses.


Date:     November 13, 2002   /s/ Donald R. McKelvey
                             Donald R. McKelvey,
                             Principal Financial Officer