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, 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: 12,264,944
      outstanding as of June 30, 2002

<PAGE>

      PART I - FINANCIAL INFORMATION

           TELCO-TECHNOLOGY, INC.


       Index to Financial Information
         Period Ended June 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 June 30, 2002

<TABLE>
<CAPTION>

<S>                                                            <C>

   ASSETS

Cash                                                           $    12,785
                                                               -----------
    Total Assets                                               $    12,785
                                                               ===========


 LIABILITIES & STOCKHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                                              $    28,675
 Accrued expenses                                                   46,795
 Notes payable                                                      85,000
                                                               -----------
    Total Current Liabilities                                      160,470

Notes payable                                                        3,253
                                                               -----------
  Total Liabilities                                                163,723


    STOCKHOLDERS' DEFICIT

Preferred stock, $.001 par, 2,000,000 shares
  authorized, none issued or outstanding
Common stock, $.001 par, 13,000,000 shares
  authorized, 12,264,944 shares issued and
  outstanding                                                       12,265
Additional paid-in capital                                       3,307,939
Retained deficit                                                (3,471,142)
                                                                -----------
    Total Stockholders' Deficit                                 (  150,938)
                                                                -----------
    Total Liabilities & Stockholders' Deficit                  $    12,785
                                                               ===========

</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>

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


                                         Three Months                     Six Months
                                        Ended June 30,                  Ended June 30,
                                   2002              2001           2002                2001
                               ---------            ---------    ---------           ---------
General & administrative       $ 129,422            $  41,079    $ 396,957           $  87,166
Bad debt recovery               ( 10,000)                         ( 10,000)
Interest expense                   1,533                             1,795
                               ---------            ---------    ---------           ---------
Net loss                       $(120,955)           $ (41,079)   $(388,752)          $ (87,166)
                               =========            =========    =========           =========

Net loss per common share          $(.01)               $(.00)       $(.03)              $(.01)

Weighted average common
  shares outstanding          12,106,611            9,469,944   11,788,277           9,461,104



</TABLE>

<PAGE


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

<TABLE>
<CAPTION>



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


CASH FLOWS FROM OPERATIONS
Net loss                                               $(388,752)          $( 87,166)
Adjustments to reconcile net loss to
cash used by operating activities:
      Stock issued for services                          265,700
   Rent paid by contribution to capital                                        9,000
      Bad debt provision                                  25,000
 Changes in:
    Accrued expenses                                      46,795
  Accounts payable                                            55               5,000
  Due to related party                                                        60,000
 ---------                                              ---------
NET CASH USED BY OPERATING ACTIVITIES                   ( 51,202)           ( 13,166)

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                               85,000
Contribution to capital                                    3,810
     ---------                                          ---------
      NET CASH PROVIDED BY FINANCING ACTIVITIES           88,810              15,000
        ---------                                       ---------
NET INCREASE IN CASH                                      12,608               1,834

CASH BEGINNING                                               177               3,245
                                                        ---------           ---------
CASH ENDING                                            $  12,785           $   5,079
                                                        =========           =========


</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.

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 provided by 3rd parties.  The 40,000 shares
were valued at their then trading prices for total expense of
$11,200.

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 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.


NOTE E - SUBSEQUENT EVENT

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.

<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.  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 June 30, 2002, the Company had a working capital
deficit of approximately $(148,000), a deficit to debt ratio of
approximately (.92) to 1, and stockholders' deficit of
approximately $(151,000).  At June 30, 2002, the Company had
approximately $13,000 in cash, total assets of approximately
$13,000 and total liabilities of approximately $164,000.

     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 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.

     Subsequent to the quarter ended June 30, 2002, the
Company obtained another loan from a certain private party in
the amount of $25,000.  Such loan bears interest at 6.75% and
matures in six months.

<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.

          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 June 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:   August 9, 2002  By:  /s/ Donald R. McKelvey
                         Donald R. McKelvey,
                         Chairman of the Board and
                         President


Dated:   August 9, 2002  By:  /s/ Donald R. McKelvey
                         Donald R. McKelvey,
                         Principal Financial
                         Officer