UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                -----------------

                                  FORM 10-QSB
(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTER ENDED: April 30, 2001
                            --------------

OR

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO ______________

Commission file number: 000-29097
                        ---------

                            CANTRONICS CORPORATION
                            ----------------------
              (Exact name of small business issuer in its charter)

Nevada                                                86-0930437
---------------------------                   ---------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)




           63A Clipper Street, Coquitlam, British Columbia, Canada V3K 6X2
           ---------------------------------------------------------------
                       (Address of principal executive offices)

                                   (604) 516-6667
                                   --------------
                           (Issuer's telephone number)

          116 - 3823 Henning Drive, Burnaby, British Columbia, Canada V5C 6P3
          -------------------------------------------------------------------
      (Former name, former address and former fiscal year, if changed since last
                                      report.)


   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  [   ]


<PAGE>

                  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                     PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.   Yes  [   ]     No  [   ]


                        APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
63,243,600 common shares, as at June 30, 2001
---------------------------------------------

Transitional Small Business Disclosure Format (Check one): Yes  [   ]  No  [ X ]

                          PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

      Consolidated Balance Sheet - April 30, 2001
      Consolidated Interim Statements of Operations - Three months ended April
      30, 2001 and 2000.

      Consolidated Interim Statement of Changes in Stockholders' Equity
      (Deficit) - Three months ended April 30, 2001 and 2000.

      Consolidated Interim Statements of Cash Flows - Three months ended April
      30, 2001 and 2000.

      Notes to Consolidated Interim Financial Statements - April 30, 2001 and
      2000.




<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                                                     Consolidated Balance Sheets
                                                  (Amounts stated in US Dollars)

                                                        April 30     January 31
                                                          2001         2001(a)
--------------------------------------------------------------------------------
                                                       (Unaudited)
Assets
Current
   Cash                                               $   496,958   $    86,035
   Short-term deposits                                    402,295       185,189
   Investments                                               -          242,078
   Accounts receivable                                    501,725        98,386
   Inventory                                              126,941       145,843
   Prepaid expenses                                        12,985         2,001
                                                      -------------------------
                                                        1,540,904       759,532
Property and equipment                                    281,705        63,037
Deferred income taxes                                      22,046        29,041
Goodwill (Note 2)                                       1,637,538          -
                                                      -------------------------
                                                      $ 3,482,193   $   851,610
================================================================================

Liabilities and Stockholders' Equity (Deficit)
Liabilities
Current
Accounts payable                                      $   406,130   $   170,193
Accrued liabilities                                        77,307        55,272
Customer deposits                                         310,911       383,240
Due to related parties (Note 3)                           289,659       281,826
                                                      -------------------------
                                                        1,084,007       890,531
                                                      -------------------------
Stockholders' equity (deficit)
   Share capital
    Authorized
      5,000,000   preferred shares with a par
                  value $0.001 each
     90,000,000   common shares with a par value
                  $0.001 each
    Issued
     63,243,600   (January 31, 2001 - 60,000,000)
                  common shares                            63,244        60,000
   Additional paid-in capital (Distributions
    in excess of par value)                             2,313,416       (59,865)
   Retained earnings (accumulated deficit)                 23,830       (54,213)
   Accumulated other comprehensive income (loss)           (2,304)       15,157
                                                      -------------------------

                                                        2,398,186       (38,921)
                                                      -------------------------
                                                      $ 3,482,193   $   851,610
================================================================================
(a) Represents the financial position of Cantronic Systems Inc. (Note 2)

  The accompanying summary of significant accounting policies and notes are an
          integral part of these consolidated financial statements.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                                   Consolidated Interim Statements of Operations
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
For the three months ended April 30                           2001      2000 (a)
--------------------------------------------------------------------------------
Sales (Note 6)                                        $ 1,127,256   $   392,285

Cost of sales                                             789,637       237,711

Gross profit                                              337,619       154,574

Training revenue                                          182,565          -
                                                      -------------------------

                                                          520,184       154,574
                                                      -------------------------

Expenses
   Advertising and promotion                               39,742          -
   Amortization of property and equipment                   8,888         4,602
   Amortization of goodwill                                41,988          -
   Bank charges and interest                                5,269         2,183
   Office and miscellaneous                                31,922           764
   Professional fees                                       23,971         4,850
   Rent                                                    18,508         8,268
   Research and development                                 9,592           247
   Telephone and utilities                                 11,261         2,477
   Training                                                68,518          -
   Travel and business development                         22,116         5,010
   Vehicle                                                  4,880         1,604
   Wages and employee benefits                             74,855        21,239
                                                      -------------------------

                                                          361,510        51,244
                                                      -------------------------
Income from operations                                    158,674       103,330
                                                      -------------------------

Other income (expenses)
   Realized gain on sale of securities                      8,372          -
   Interest and other                                       4,644         4,120
   Foreign exchange gain (loss)                            12,978       (12,170)
                                                      -------------------------
                                                           25,994        (8,050)
                                                      -------------------------

Income before income taxes                                184,668        95,280
                                                      -------------------------
Income taxes
   Current                                                 84,647            98
   Deferred                                                21,978        16,851
                                                      -------------------------

                                                          106,625        16,949
                                                      -------------------------

Net income for the period                             $    78,043   $    78,331
================================================================================

Earnings per share - basic and diluted                $     0.001   $     0.001
                                                      =========================
Weighted average shares outstanding                    62,740,689    59,000,000
================================================================================

(a) Represents the results of operations of Cantronic Systems Inc. (Note 2)


  The accompanying summary of significant accounting policies and notes are an
          integral part of these consolidated financial statements.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
     Consolidated Interim Statement of Changes in Stockholders' Equity (Deficit)
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
<TABLE>
<CAPTION>
                                                                       Additional
                                                                  Paid-In Capital      Retained     Accumulated           Total
                                                                   (Distributions      Earnings           Other   Stockholders'
                                             Common Stock               in excess  (Accumulated   Comprehensive          Equity
                                             ------------
                                         Shares        Amount        of par value)      Deficit)   Income (Loss)      (Deficit)
-------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>          <C>            <C>             <C>            <C>             <C>
Balance, February 1, 2001              60,000,000   $     60,000   $    (59,865)   $   (54,213)   $   15,157      $   (38,921)

Issuance of common stock for:
  Acquisition (Note 2(b))               2,750,000          2,750      2,059,750           -             -          2,062,500
  Cash (Note 5)                           418,600            419        313,531           -             -            313,950
  Services (Note 2(a))                     75,000             75           -              -             -                 75
                                       -------------------------------------------------------------------------------------
                                       63,243,600         63,244      2,313,416        (54,213)       15,157       2,337,604
                                                                                   -----------------------------------------
Net income for the period                    -              -              -            78,043          -             78,043

Previously recorded unrealized
  gains realized during the period           -              -              -              -          (18,019)        (18,019)

Foreign exchange translation
  adjustment                                 -              -              -              -              558             558
                                                                                   -----------------------------------------

   Total comprehensive income                                                           78,043       (17,461)         60,582
                                       -------------------------------------------------------------------------------------

Balance, April 30, 2001                63,243,600   $     63,244   $  2,313,416    $    23,830    $   (2,304)     $2,398,186
===============================================================================================================================
</TABLE>

  The accompanying summary of significant accounting policies and notes are an
          integral part of these consolidated financial statements.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                                   Consolidated Interim Statements of Cash Flows
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
For the three months ended April 30                           2001      2000 (a)
--------------------------------------------------------------------------------
Cash provided by (used in)

Operating activities
   Net income for the period                          $    78,043   $    78,331
   Adjustments to reconcile net income for the
   period to cash flows provided by (used in)
   operating activities
     Amortization of property and equipment                 8,888         4,602
     Amortization of goodwill                              41,988          -
     Deferred income taxes                                 21,978        16,851
     Gain on sale of investments                           (8,372)         -
     Common stock issued for expenses                          75          -
   (Increase) decrease in assets
     Accounts receivable                                 (295,782)      217,925
     Inventory                                             14,910       (69,051)
     Prepaid expenses                                      (6,039)       (2,534)
   Increase (decrease) in liabilities
     Accounts payable                                     210,884       (98,037)
     Accrued liabilities                                   23,547        21,572
     Customer deposits                                    (91,918)      (41,839)
                                                      -------------------------

                                                           (1,798)      127,820
                                                      -------------------------
Investing activities
Purchase of property and equipment                         (3,109)      (11,159)
Cash acquired on acquisitions                              91,825          -
Proceeds on sale of available-for-sale securities         227,200          -
Purchase of available-for-sale securities                    -         (259,589)
                                                      -------------------------
                                                          315,916      (270,748)
                                                      -------------------------
Financing activities
Issuance of common stock                                  313,950          -
Advances from related parties                              15,547          -
Repayment of advances from related parties                 (2,660)       (2,348)
Bank overdraft                                               -          (19,033)
                                                      -------------------------

                                                          326,837       (21,381)
                                                      -------------------------

Increase (decrease) in cash and equivalents               640,955      (164,309)
Effect of foreign exchange on cash and equivalents        (12,926)       11,811
Cash and equivalents, beginning of period                 271,224       363,535
                                                      -------------------------
Cash and equivalents, end of period                   $   899,253   $   211,037
================================================================================
Represented by:
   Cash                                               $   496,958   $   153,600
   Short term deposits                                    402,295        57,437
                                                      -------------------------

                                                      $   899,253   $   211,037
================================================================================

(a)   Represents the cash flows of Cantronic Systems Inc. (Note 2)
Supplemental Information (Note 8)

  The accompanying summary of significant accounting policies and notes are an
          integral part of these consolidated financial statements.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                          Notes to the Consolidated Interim Financial Statements
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
April 30, 2001 and 2000
--------------------------------------------------------------------------------


1.   Basis of Presentation

     The consolidated interim financial statements included herein, presented in
     accordance with United States generally accepted accounting principles and
     stated in US dollars, have been prepared by the Company, without audit,
     pursuant to the rules and regulations of the Securities and Exchange
     Commission. 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, although the Company believes that the disclosures are
     adequate to make the information presented not misleading.

     In accordance with provisions governing the accounting for reverse
     acquisitions, the figures presented for the period ended April 30, 2000 are
     those of Cantronic Systems Inc. ("Cantronic"). All per share information
     for 2000 reflects the recapitalization.

     On January 31, 2001 the Company split its common stock on a one-to-twenty
     basis.  All references in these financial statements to the number of
     shares are stated on a post-split basis. Per share amounts have been
     restated for the stock split.

     These statements reflect all adjustments, consisting of normal recurring
     adjustments which, in the opinion of management, are necessary for fair
     presentation of the information contained therein. It is suggested that
     these consolidated interim financial statements be read in conjunction with
     the financial statements of the Company for the year ended January 31, 2001
     and notes thereto included in the Company's 10-KSB annual report. The
     Company follows the same accounting policies in the preparation of interim
     reports.

     Results of operations for the interim periods are not indicative of annual
     results.

--------------------------------------------------------------------------------

2.   Acquisitions

     a)   Reverse Acquisiton

          Effective December 18, 2000, the Company (then inactive) closed a
          share exchange agreement whereby the Company acquired the only issued
          and outstanding share of Cantronic. In exchange, the shareholders
          controlling 98% of the common stock of the Company transferred to the
          stockholder and affiliates of Cantronic 59 million issued and
          outstanding shares of the Company's common stock. Cantronic was
          incorporated in British Columbia, Canada on February 28, 1997.

          The transaction was accounted for as a recapitalization using
          accounting principles applicable to reverse acquisitions. Following
          reverse acquisition accounting, financial statements subsequent to the
          closing date are presented as a continuation of Cantronic. The value
          assigned to common stock of the Company on the acquisition was based
          on the fair value of the net assets of the Company at the date of
          acquisition of $Nil.

          Pursuant to the share exchange agreement, the Company issued 75,000
          shares of non-forfeitable, fully vested common stock in exchange for
          consulting services in connection with the reverse acquisition. These
          shares were recorded at proceeds equal to the par value of the common
          stock consistent with the value assigned to the shares exchanged on
          recapitalization which was believed to be fair market value at the
          transaction date.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                          Notes to the Consolidated Interim Financial Statements
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
April 30, 2001 and 2000
--------------------------------------------------------------------------------


2.   Acquisitions - Continued

     b)   Business Combination

          Pursuant to an agreement dated February 2, 2001, the Company acquired
          100% of the issued and outstanding shares of Condition Monitoring
          Training Institute, Inc. ("CMTI") (a British Columbia company) and
          CMTI's wholly-owned subsidiary Academy of Infrared Thermography, Inc.
          ("AIRT") (a Washington state company), in exchange for the issuance of
          2,750,000 shares of common stock. These shares were recorded at the
          estimated fair value of the Company's common stock of $0.75 per share
          based on a private placement closed in February 2001 (Note 5). Time
          restriction periods have been placed on the issued common stock as
          follows: 1,500,000 shares - three year restriction period and
          1,250,000 - five year restriction period.

          The purchase was accounted for using the purchase method and was
          allocated as follows:

          Purchase price
            2,750,000 shares of common stock                       $  2,062,500
                                                                   ------------
          Net assets acquired
            Assets                                                     (449,069)
            Liabilities                                                  66,095
                                                                   ------------

                                                                       (382,974)
                                                                   ------------

          Goodwill                                                 $  1,679,526
                                                                   ------------

          Goodwill is being amortized over its useful life, estimated to be ten
          years. Goodwill amortization of $41,988 (2000 - $Nil) has been
          recorded in these financial statements.

     Unaudited pro-forma income as if the above share exchanges occurred on
     February 1, 2000 is as follows:

                                                   Three months ended April 30
                                                 -------------------------------
                                                             2001         2000

             Revenue                                  $ 1,127,256   $   615,822
             Net income for the period                $    78,043   $   167,195
             Earnings per share - basic and diluted   $     0.001   $     0.003


<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                          Notes to the Consolidated Interim Financial Statements
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
April 30, 2001 and 2000
--------------------------------------------------------------------------------


3.   Related Party Transactions

     The following table summarizes the Company's related party transactions
     during the three month periods ended April 30, 2001 and 2000:

                                                             2001         2000

     Sales to Beijing Saisiai M & E Equipment Co.
     Ltd.,  ("BSME", a foreign company significantly
     influenced by a  director of the Company)        $    63,285   $    27,458

     Engineering, technical, marketing and other
     services paid or payable to BSME.                $   227,188   $    32,312

     These transactions are in the normal course of operations and are measured
     at the exchange value (the amount of consideration established and agreed
     to by the related parties). BSME performs various services for the Company.
     Additionally, the Company sells its products to BSME. Pursuant to an
     agreement dated February 1, 1999, cancellable at any time on sixty days
     notice, the Company sells products to BSME at a price equal to the
     Company's cost plus 7.5%

     The following transaction not in the normal course of operations was
     measured at carrying value:

     Assumption of amount due to CSI Industrial
      Systems Ltd. (a company controlled by a
      director of the Company)                        $      -      $       412

     At the end of the period, the amounts due from (to) related parties are as
     follows:

                                                         April 30    January 31
                                                             2001          2001
                                                      -------------------------

     BSME - included in accounts receivable           $   102,494   $    55,804
                                                      =========================

     Shanghai Saisiai Scientific Instrument Co.
     Ltd., ("SSSI", a foreign company significantly
     influenced by a  director of the Company) -
     included in accounts receivable                  $    28,190   $    28,190
                                                      =========================

     Directors of the Company                         $  (289,659)  $  (281,826)
                                                      =========================

     Amounts due to related parties are non-interest bearing, unsecured and
     without specific terms of repayment.

--------------------------------------------------------------------------------

4.   Commitments

     Pursuant to the acquisition agreement (Note 2(b)) the Company is
     negotiating a five year employment contract with a manager of CMTI and
     AIRT, with an option to extend for an additional five years, at an annual
     salary of CDN $75,000 in cash and CDN $25,000 shares of common stock.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                          Notes to the Consolidated Interim Financial Statements
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
April 30, 2001 and 2000
--------------------------------------------------------------------------------


5.   Common Stock

     During the three month period ended April 30, 2001, the Company issued
     418,600 shares of common stock for proceeds of $313,950 through a private
     placement.

--------------------------------------------------------------------------------

6.   Sales and Credit Concentration

     Pursuant to sales contracts, approximately 80% of total revenue for the
     three months ended April 30, 2001 is derived from one customer.

     Pursuant to sales contracts, approximately 88% of total revenue for the
     three months ended April 30, 2000 was derived from three customers
     individually representing 35%, 33%, and 20% of revenue.

     Accounts receivable (due in US dollars and French francs) from these
     customers at the period ends were as follows:

                  April 30, 2001        -   $   265,530
                  January 31, 2001      -   $    55,804

     Additionally, accounts receivable from two other customers at April 30,
     2001 amounted to $102,494 and $28,021 (related, see Note 3).

--------------------------------------------------------------------------------

7.   Segmented Information

     The Company and its subsidiaries operate in Asia, Canada and the United
     States in one industry segment. CMTI and AIRT, acquired on February 2,
     2001, are responsible for the training revenue. Information on the
     Company's geographical segments is as disclosed below:

                                                             2001          2001
                                                      -------------------------

                Sales
                 Asia                                 $ 1,127,256   $   392,285
                                                      =========================

                Training revenue
                 United States                        $   125,837   $      -
                 Canada                                    56,728          -
                                                      -------------------------

                                                      $   182,565   $      -
                                                      =========================


     The majority of the Company's consolidated assets are located and
     maintained within Canada.

<PAGE>

================================================================================
                                                          Cantronics Corporation
                                                   (formerly Solo & Hurst, Inc.)
                          Notes to the Consolidated Interim Financial Statements
                                                  (Amounts stated in US Dollars)
                                                                     (Unaudited)
April 30, 2001 and 2000
--------------------------------------------------------------------------------


8.   Supplemental Information - Statement of Cash Flows

     a)   The following financing activities have been excluded from the
          Statements of Cash Flows:

                                                             2001          2001
                                                      -------------------------

     Issuance of common stock for acquisition
      (Note 2)                                        $  2,062,500   $     -
     Issuance of common stock for expenses (Note 2)   $         75   $     -

     b)   During the three-month period ended April 30, 2001 the Company paid
          income taxes of $6,452 (2000 - $Nil). No interest was paid during the
          periods.



Item 2.     Management's Discussion and Analysis

     Except for statements of historical fact, certain information contained
herein constitutes "forward-looking statements," including, without limitation,
statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected", "anticipates" or "does not
anticipate", "plans", "estimates" or "intends", or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or
be achieved) are not statements of historical fact and may be "forward-looking
statements." Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results or
achievements of the Company to be materially different from any future results
or achievements of the Company expressed or implied by such forward-looking
statements.

Overview

     The Company, through its wholly-owned subsidiaries, Cantronic Systems Inc.
("CSI"), Condition Monitoring Training Institute, Inc. ("CMTI") and Academy of
Infrared Thermography, Inc. ("AIRT"), manufactures, distributes, and provides
training on electro-optics and condition monitoring equipment for industrial
facilities.

     The Company offers integrated solutions in the field of condition
monitoring and predictive maintenance and infrared imaging. It is the Company's
goal to create greater efficiencies with products and services and business
practices that are already proven on a smaller scale. The Company sells its

<PAGE>


condition monitoring systems to businesses in all major standard industrial
classifications, including aerospace, food processing, chemicals, mining,
utilities, forest products, steel, tire, glass and electronics.

     The Company's thermal imaging systems use advanced sensing and image
processing infrared technologies that detect infrared radiation, or heat, that
enables the operator to measure minute temperature differences and to see
objects in daylight or total darkness and through smoke, haze and most types of
fog. The Company's products can also incorporate image analysis software. The
Company's thermal imaging systems are also used for a broad range of
applications including condition monitoring of industrial equipment, research
and development, manufacturing processes, night vision, firefighting and medical
imaging.

     The Company was incorporated under the laws of the State of Nevada as Solo
& Hurst, Inc., and was inactive until its acquisition of CSI, at which time it
changed its name to Cantronics Corporation.  As a result of our acquisition of
CSI via reverse acquisition on December 18, 2000, our financial statements are
presented as a continuation of CSI. Accordingly, financial information
pertaining to periods prior to the acquisition is that of CSI. The information
set forth below should be read in conjunction with our consolidated interim
financial statements appearing elsewhere in this Quarterly Report.

     On February 2, 2001, the Company acquired 100% of the issued and
outstanding shares of CMTI (a British Columbia company) and its wholly-owned
subsidiary AIRT (a Washington state company). These companies were engaged in
the business of training users in the use of infrared thermography technology
and the acquisition was completed to complement CSI's existing business. The
transaction was accounted for in this quarter using the purchase method of
accounting. As a result of the transaction, the Company issued 2,750,000 common
shares to the stockholder of CMTI valued at $2,062,500 based on subscription
prices for a private placement completed near the acquisition date.


Results Of Operations

Three Months Ended April 30, 2001 compared to Three Months Ended April 30, 2000

     Sales for the quarter ended April 30, 2001 was $1,127,256, a 187% increase
over the sales of $392,285 for the quarter ended April 30, 2000. The increase
is mainly attributed to the completion and shipping of two large contracts to a
customer with a combined sales value of $876,500. The cost of sales as a
percentage of sales for the quarters ended April 30, 2001 and April 30, 2000
were 70% and 61% respectively. The increase in cost of sales was due to the
increase in cost of materials and labour over the same period last year.
Training revenue is mainly attributed to the two subsidiaries acquired in
February 2001.

     Gross profit on sales increased by 118% from $154,574 in 2000 to $337,619
in 2001. Despite the increase in cost of sales the increase in gross profit was
achieved by increase in the volume of sales.

<PAGE>

     The Company's expenses for the quarter ended April 30, 2001 increased by
$310,266 from the comparative quarter in 2000 reflecting an increase in salary
expense as a result of as increase in the number of full time employees and an
increase in the amount of salaries paid to employees of the Company, and an
increase in professional fees as a result of the costs associated with the
Company's reporting obligations in connection with the acquisition of
subsidiaries and increased costs in connection with the audited financial
statements of the Company to comply with Securities and Exchange Commission
requirements. The increase in advertising and promotion, office and
miscellaneous and training expenses were all related to the subsidiaries
acquired during the period involved in the training.

     Despite the increase in expenses for the quarter ended April 30, 2001, the
income from operations increased by $55,344 from the comparative quarter in
2000.

     Since the acquisitions, the Company's Canadian subsidiaries are no longer
eligible for a reduction in applicable Canadian income tax rates, hence the
income tax provision for the three-month period ended April 30, 2001 has
increased as a percentage of income before income taxes from approximately 18%
to 58%. As a result the net income for the three-month period ended April 30,
2001 of $78,043 is consistent with $78,331 recognized for the three-month period
ended April 30, 2000.

Liquidity and Capital Resources

     As at April 30, 2001 the Company had working capital of $456,897 as
compared to a working capital deficiency of $130,999 at January 31, 2001.
Included in working capital is $289,659 (January 31, 2001 - $281,826) of amounts
due to a related party which is unsecured, does not bear interest and contains
no formal repayment terms.  The Company believes that its cash flow from
operations will be sufficient to fund its cash requirements through the
remainder of the year ended January 31, 2002.

     Net cash used in operating activities during the three months ended April
30, 2001 was $1,798 compared to cash provided by operating activities of
$127,820 for the comparative period in 2000. As discussed above, sales for the
first quarter of 2001 increased substantially over the comparative period in
2000, which, among other things, has resulted in a $295,782 increase in Accounts
Receivable. The effect of this increased receivable was offset by a $210,884
increase in accounts payable. During the comparative period ended April 30,
2000, cash increased substantially due to the net collection of $217,925 of
accounts receivable outstanding at January 31, 2000.

     Cash provided by investing activities for the quarter ended April 30, 2001
was $315,196 compared to cash used in investing activities of $270,748 during
the comparative period in 2000. During the first quarter of 2001 the Company
sold its remaining marketable securities resulting in net proceeds of $227,200.
Additionally, the acquisition of the subsidiaries in the first quarter did not
result in the use of cash, but rather were completed through the exchange of
2,750,000 shares of common stock valued at $2,062,500. Cash existing in the
subsidiaries at the acquisition date was $91,825. During the quarter ended
April 30, 2000, CSI invested $259,589 in marketable securities.

<PAGE>

     Cash provided by financing activities for the quarter ended April 30, 2001
was $326,837 compared to cash used in financing activities of $21,381 during the
comparative period in 2000. Through a private placement completed during the
first quarter of 2001, the Company issued 418,600 shares of common stock for
gross proceeds of $313,950. Cash used during the period ended April 30, 2000
was primarily to repay a temporary bank overdraft outstanding at January 31,
2000.

     Although the Company believes it has sufficient working capital and will
receive sufficient sales from operations to fund its operations, there can be no
assurance that the Company's actual expenditures will not exceed projected
expenditures or that the Company will have sufficient sales from operations to
meet its actual expenditure requirements.

     In addition, the Company may require additional working capital if the
Company elects to expand into new geographic markets or offer new products and
services to end users. If the Company's sales from operations are insufficient
to fund its operations, there can also be no assurance that additional
financing, if any, will be available on terms acceptable to the Company. If the
actual expenditures exceed the estimated costs or if events occur that requires
additional expenditures, the Company will be required to raise additional
financing or to defer expenditures to meet other obligations.


                       PART II - OTHER INFORMATION

Item 2.     Changes in Securities

     During the quarter ended April 30, 2001, we issued 418,600 shares of our
common stock to various parties in connection with a private placement. Total
proceeds of $313,950 were received.

     During the quarter ended April 30, 2001, we issued 75,000 shares of our
common stock to Jack D. Kelley & Associates and American International
Investors, Ltd. (as to 37,500 shares each) pursuant to the merger agreement
between Solo & Hurst, Inc. and CSI.


Item 6. Exhibits and Reports on Form 8-K

     a)   Exhibits
          None
     b)   Reports on Form 8-K
          The company filed the following reports on form 8-K during the quarter
          for which this report has been filed.


<PAGE>


DATE       DESCRIPTION                      REPORT

03/23/01   CHANGE IN CONTROL                8-K
03/23/01   CHANGE IN ACCOUNTANTS            8-K
03/26/01   OTHER EVENTS                     8-K
03/26/01   OTHER EVENTS                     8-K
03/26/01   OTHER EVENTS                     8-K
04/02/01   FINANCIAL STATEMENTS             8-K
04/20/01   CHANGE IN CONTROL                8-K
04/20/01   FINANCIAL STATEMENTS             8-K/A
04/30/01   CHANGE IN FISCAL YEAR            8-K



                                SIGNATURES

Pursuant to the requirement of Section 12 of the Securities Exchange Act of
1934, the registrant certifies that it meets all of the requirements for filing
on Form 10-QSB and has duly caused this quarterly report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                                   CANTRONICS CORPORATION

Date: August 08, 2001                              /s/ James Zahn
                                                   -----------------------------
                                                   James Zahn, President

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