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, 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: 12,019,944
      outstanding as of March 31, 2002


<PAGE>


      PART I - FINANCIAL INFORMATION

           TELCO-TECHNOLOGY, INC.


       Index to Financial Information
        Period Ended March 31, 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   7

<PAGE>


                     Telco-Technology, Inc.
                         Balance Sheet
                      As of March 31, 2002


<TABLE>
<CAPTION>

<S>                                                            <C>
   ASSETS

Cash                                                           $    25,707
                                                               -----------
    Total Assets                                               $    25,707
                                                               ===========


 LIABILITIES & STOCKHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                                             $    10,907
 Notes payable                                                     85,000
                                                              -----------
    Total Current Liabilities                                      95,907

Accrued expenses                                                   30,263
Notes payable                                                       3,253
                                                              -----------
  Total Liabilities                                               129,423


    STOCKHOLDERS' DEFICIT

Preferred stock, $.001 par, 2,000,000 shares
  authorized, none issued or outstanding
Common stock, $.001 par, 13,000,000 shares
  authorized, 12,019,944 shares issued and
  outstanding                                                      12,020
Paid-in capital                                                 3,234,451
Retained deficit                                               (3,350,187)
                                                              -----------
    Total Stockholders' Deficit                                (  103,716)
                                                              -----------
    Total Liabilities & Stockholders' Deficit                 $    25,707
                                                              ===========

</TABLE>

<PAGE>

                     Telco-Technology, Inc.
                    Statements Of Operations
       For the Three Months Ended March 31, 2002 and 2001

<TABLE>
<CAPTION>

<S>                                                             <C>                 <C>

                                                                    2002               2001

                                                                 ---------           ---------
General & administrative                                         $ 267,797           $  46,087
                                                                 ---------           ---------
Net loss                                                         $(267,797)          $( 46,087)
                                                                 =========           =========

Net loss per common share                                            $(.02)              $(.00)

Weighted average common
  shares outstanding                                            11,469,944           9,445,500






</TABLE>

<PAGE>

                     Telco-Technology, Inc.
                    Statements Of Cash Flows
       For the Three Months Ended March 31, 2002 and 2001

<TABLE>
<CAPTION>

                                                          2002                2001
                                                       ---------           ---------
<S>                                                    <C>                 <C>

CASH FLOWS FROM OPERATIONS
Net loss                                               $(267,797)          $( 46,087)
Adjustments to reconcile net deficit to
cash provided by operating activities:
      Stock issued for consulting agreement              192,500
   Rent paid by contribution to capital                                        4,500
      Bad debt provision                                  35,000
 Changes in:
    Accrued expenses                                      30,263
  Accounts payable                                      ( 18,246)              3,000
  Due to related party                                                        30,000
 ---------                                             ---------
NET CASH USED BY OPERATING ACTIVITIES                   ( 28,280)           (  8,587)

CASH FLOWS FROM INVESTING ACTIVITIES
 Loans                                                  ( 35,000)

CASH FLOWS FROM FINANCING ACTIVITIES
Sales of common stock                                                         15,000
Proceeds from notes payable                               85,000
Contribution to capital                                    3,810
     ---------                                         ---------
      NET CASH PROVIDED BY FINANCING ACTIVITIES           88,810              15,000
        ---------                                      ---------
NET INCREASE IN CASH                                      25,530               6,413

CASH BEGINNING                                               177               3,245
                                                       ---------           ---------
CASH ENDING                                            $  25,707           $   9,658
                                                       =========           =========


</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 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 Company'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

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. Telco has deemed the note
uncollectible and has written the entire $35,000 off as of
March 31, 2002.


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.


NOTE D CONSULTING AGREEMENT

In March 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, May, July, and September 2002.  The remaining 300,000
shares are to be issued on the 21st day of November 2002.  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.


<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.  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.  As
such, the Company can now be defined as a "shell"

<PAGE>


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
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.  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 March 31, 2002, the Company had a working capital
deficit of approximately $(70,000), a deficit to debt ratio of
approximately (.80) to 1, and stockholders' deficit of
approximately $(104,000).  At March 31, 2002, the Company had
approximately $26,000 in cash, total assets of approximately
$26,000 and total liabilities of approximately $129,000.

     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.  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 has deemed the note
due from ScreenPhone as uncollectible and has written the
entire $35,000 off as of March 31, 2002.

<PAGE>


        PART II - OTHER INFORMATION

Item 1.        Legal Proceedings.

               None.

Item 2.        Changes in Securities.

               None.

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, 2002.

               Form 8-K (date of report: March 18, 2002), item
               reported: item 5 ( letter of intent to enter
               into acquisition agreement), financial
               statements filed - 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 13, 2002           By: /s/ Donald R. McKelvey
                              Donald R. McKelvey,
                              Chairman of the Board and
                              President


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