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, 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 June 30, 2001

<PAGE>



      PART I - FINANCIAL INFORMATION

           TELCO-TECHNOLOGY, INC.


       Index to Financial Information
         Period Ended June 30, 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


                                     June 30,    December 31,
                                     2001        2000
                                           (unaudited)
ASSETS

Current Assets
Cash and cash equivalents          $   5,079      $     3,245
Total Current Assets                   5,079            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                   $203,285       $  201,451


     LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable and
accrued expenses                    $ 22,119       $   17,119
Due to related party (Note 3)         60,000               -
Total Current Liabilities             82,119           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 June 30, 2001
and 9,369,944
shares at December 31, 2000
issued and outstanding)                9,470            9,370
Capital in excess of par value     3,134,811        3,110,911
Deficit                           (3,023,115)      (2,935,949)
Total Stockholders' Equity           121,166          184,332

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY        $        203,285      $   201,451



See Notes to Financial Statements.

<PAGE>


TELCO TECHNOLOGY, INC.

CONDENSED STATEMENTS OF OPERATIONS



                          For the three months    For the six months
                             Ended June 30,        Ended June 30,
                            2001      2000         2001      2000
                             (unaudited)            (unaudited)

Sales revenues         $      -    $      -     $    -    $    -

Cost of sales                 -           -          -         -

Gross profit                  -           -          -         -

General & administrative
expenses                 41,079       41,020     87,166    80,339

Loss from operations    (41,079)     (41,020)   (87,166)  (80,339)

Provision for
income taxes                  -           -          -         -

Net loss              $ (41,079)   $ (41,020)  $(87,166) $(80,339)

Basic (loss)
per common share      $      (0)   $   (0.00)  $  (0.01) $  (0.01)

Basic average shares
outstanding           9,469,944    8,869,944  9,461,104 8,869,944

See Notes to Financial Statements.


<PAGE>



TELCO-TECHNOLOGY, INC.

CONDENSED STATEMENTS OF CASH FLOWS



               For the three months          For the six months
              ended September 30,  Ended June 30,      Ended June 30,
          2001      2000      2001      2000
          (unaudited)                   (unaudited)
Operating Activities
Net income or (loss)    $  (41,079)  $ (41,020)  $ (87,166) $ (80,339)
Adjustments to reconcile
net income or (loss)
to net cash used by
operating activities:
Rent adjustment              4,500       4,500       9,000      9,000
Changes in operating
assets of continuing
operations:
Accounts payable             2,000          -        5,000    (18,000)
Due to related party        30,000      20,000      60,000     50,000
Net cash used by
continuing operations       (4,579)    (16,520)    (13,166)   (39,339)

Net cash used by
discontinued operations          -           -         -          -

Investing Activities
Sale of common stock             -           -      15,000        -
Repayment of officers' loans     -           -         -       20,000
Net cash provided by
investing activities             -           -      15,000     20,000

Increase (decrease)
in cash                     (4,579)    (16,520)      1,834    (19,339)
Cash at beginning of period  9,658      24,146       3,245     26,965
Cash at end of period      $ 5,079    $  7,626     $ 5,079  $   7,626

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 consummate 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 June
30, 2001, its operating results for the three and six  months
ended  June  30,  2001 and 2000 and cash flows for the three
and six months ended June 30, 2001 and 2000.  The balance sheet
at December 31, 2000 has been derived from the Company's
audited 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 and six months ended
June 30, 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.


See Notes to Financial Statements.

<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
June 30, 2001 and December 31, 2000 balances of $60,000 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 June 30,  2001, the Company had a working capital
deficit of approximately $(77,000), an equity to debt ratio of
approximately 1.48 to 1, and stockholders' equity of
approximately $121,000.  At June 30, 2001, the Company had
approximately $5,000 in cash, total assets of approximately
$203,000 and total liabilities of approximately $82,000. 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>


        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 June 30, 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: August 8, 2001      By:  /s/ Donald R. McKelvey
                           Donald R. McKelvey,
                           Chairman of the Board and
                           President


Dated: August 8, 2001      By:  /s/ Donald R. McKelvey
                           Donald R. McKelvey,
                           Principal Financial
                           Officer