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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

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FORM 10-Q

|(Mark One)/x/                            | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 
|---------------------------------------- | --------------------------------------------------------------------------------------------
|FOR THE PERIOD ENDING SEPTEMBER 30, 2000
|OR                                      
|/ /                                      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|                                         | FOR THE TRANSITION PERIOD FROM  TO                                                          
|COMMISSION FILE NUMBER 0 - 1325         

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VICOM, INCORPORATED

(Exact name of registrant as specified in its charter)

MINNESOTA

(State or other jurisdiction of incorporation or organization)

41 - 1255001

(IRS Employer Identification No.)

9449 Science Center Drive, New Hope, Minnesota 55428

(Address of principal executive offices)

Telephone (763) 504-3000    Fax (763) 504-3060

www.vicominc.net Internet

(Registrant's
telephone number, facsimile number, and Internet address)

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the
preceding 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 / /

On
October 30, 2000, there were 7,928,219 shares outstanding of the registrant's common stock, par value $.01 per share, and 188,360 outstanding shares of the registrant's
convertible preferred stock.

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PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

VICOM, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                      |                                     | Three Months Ended |            | Nine Months Ended |  
|----------------------------------------------------- | ----------------------------------- | ------------------ | ---------- | ----------------- | -
|
|
|REVENUES                                              |                                     | $                  | 10,219,008 |                   | $
|                                                      |                                     |                    |            |                   |  
|COSTS AND EXPENSES                                    |                                     |                    |            |                   |  
|                                                      | Cost of products and services       |                    |            | 7,868,109         |  
|                                                      | Selling, general and administrative |                    |            | 2,501,869         |  
|                                                      |                                     |                    |            |                   |  
|                                                      |                                     |                    | 10,369,978 |                   |  
|                                                      |                                     |                    |            |                   |  
|LOSS FROM OPERATIONS                                  |                                     |                    | (150,970   | )                 |  
|                                                      |                                     |                    |            |                   |  
|OTHER EXPENSE                                         |                                     |                    |            |                   |  
|                                                      | Interest expense                    |                    |            | (133,669          | )
|                                                      | Miscellaneous income (expense)      |                    |            | 169,834           |  
|                                                      |                                     |                    |            |                   |  
|                                                      |                                     |                    | 36,165     |                   |  
|                                                      |                                     |                    |            |                   |  
|LOSS BEFORE INCOME TAXES                              |                                     |                    | (114,805   | )                 |  
|INCOME TAX PROVISION                                  |                                     |                    | 0          |                   |  
|NET LOSS                                              |                                     | $                  | (114,805   | )                 | $
|                                                      |                                     |                    |            |                   |  
|LOSS PER SHARE                                       |                                     |                    |            |                   |  
|BASIC AND DILUTED                                     |                                     | $                  | (.01       | )                 | $
|                                                      |                                     |                    |            |                   |  
|WEIGHTED AVERAGE SHARES OUTSTANDINGBASIC AND DILUTED |                                     |                    | 7,738,599  |                   |  
|                                                      |                                     |                    |            |                   |  

See
notes to condensed consolidated financial statements

2

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VICOM, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2000 AND DECEMBER 31, 1999

|                                                                                    |                                                                                                               | September 30, 2000                                                                                |            | December 31, 1999 |          
|----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | ---------- | ----------------- | ---------
|
|ASSETS                                                                              |                                                                                                               |                                                                                                   |            |                   |          
|CURRENT ASSETS                                                                      |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    | Cash                                                                                                          |                                                                                                   | $          | 637,973           |          
|                                                                                    | Accounts receivable, net allowance of $75,000 and $140,000                                                    |                                                                                                   |            | 6,353,275         |          
|                                                                                    | Inventories, net allowance of $370,000 and $330,000                                                           |                                                                                                   |            | 2,288,457         |          
|                                                                                    | Costs and estimated earnings in excess of billings                                                            |                                                                                                   |            | 94,751            |          
|                                                                                    | Other                                                                                                         |                                                                                                   |            | 384,303           |          
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               | TOTAL CURRENT ASSETS                                                                              |            |                   | 9,758,759
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|PROPERTY AND EQUIPMENT Net of accumulated depreciation of $1,105,643 and $1,372,118 |                                                                                                               | $                                                                                                 | 2,424,571  |                   | $        
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|NONCURRENT ASSETS                                                                   |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    | Goodwill, net of accumulated amortization of $351,907 and $101,604                                            |                                                                                                   |            | 2,997,808         |          
|                                                                                    | Other                                                                                                         |                                                                                                   |            | 214,663           |          
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               |                                                                                                   | 3,212,471  |                   |          
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               | $                                                                                                 | 15,395,801 |                   | $        
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                |                                                                                                               |                                                                                                   |            |                   |          
|CURRENT LIABILITIES                                                                 |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    | Checks issued in excess of deposits                                                                           |                                                                                                   | $          |                  |          
|                                                                                    | Notes and installment obligations payablecurrent maturities                                                  |                                                                                                   |            | 2,557,532         |          
|                                                                                    | Accounts payable                                                                                              |                                                                                                   |            | 4,071,644         |          
|                                                                                    | Other liabilities                                                                                             |                                                                                                   |            | 766,551           |          
|                                                                                    | Due to ENStar, Inc.                                                                                           |                                                                                                   |            | 108,499           |          
|                                                                                    | Deferred service obligations and revenue                                                                      |                                                                                                   |            | 409,288           |          
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               | TOTAL CURRENT LIABILITIES                                                                         |            |                   | 7,913,514
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|NOTES AND INSTALLMENT OBLIGATIONS PAYABLE                                           |                                                                                                               |                                                                                                   | 358,443    |                   |          
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|COMMITMENTS AND CONTINGENCIES                                                       |                                                                                                               |                                                                                                   |           |                   |          
|STOCKHOLDERS' EQUITY                                                                |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    | Preferred stock, liquidation preference of $10.50 per share:                                                  |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               | 8% Class A cumulative convertibleno par value, (issued and outstanding0 and 2,550 shares)       |            |                   |         
|                                                                                    |                                                                                                               | 10% Class B cumulative convertibleno par value
(issued and outstanding22,836 and 37,550 shares) |            |                   | 218,869  
|                                                                                    |                                                                                                               | 10% Class C cumulative convertibleno par value
(issued and outstanding153,310 and0 shares)     |            |                   | 1,533,100
|                                                                                    | Common stockno par value (issued 8,113,108 and 4,984,845 shares; outstanding 7,913,169 and 4,784,906 shares) |                                                                                                   |            | 1,783,137         |          
|                                                                                    | Options and warrants                                                                                          |                                                                                                   |            | 13,380,200        |          
|                                                                                    | Unamortized compensation                                                                                      |                                                                                                   |            | (186,823          | )        
|                                                                                    | Accumulated deficit                                                                                           |                                                                                                   |            | (9,604,639        | )        
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               |                                                                                                   | 7,123,844  |                   |          
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          
|                                                                                    |                                                                                                               | $                                                                                                 | 15,395,801 |                   | $        
|                                                                                    |                                                                                                               |                                                                                                   |            |                   |          

See
notes to condensed consolidated financial statements.

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VICOM, INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR NINE MONTHS ENDED SEPTEMBER, 2000 AND 1999

(Unaudited)

|                                                                        |                                                                                       | NINE MONTHS ENDED SEPTEMBER 30,              |                                         
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | -------------------------------------------- | ----------------------------------------
|
|OPERATING ACTIVITIES                                                    |                                                                                       |                                              |                                         
|                                                                        | Net loss                                                                              |                                              | $                                       
|                                                                        | Adjustments to reconcile net loss to net cash provided (used) by operating activities |                                              |                                         
|                                                                        |                                                                                       | Depreciation                                 |                                         
|                                                                        |                                                                                       | Amortization                                 |                                         
|                                                                        |                                                                                       | Gain on sales of property and equipment      |                                         
|                                                                        |                                                                                       | Changes in operating assets and liabilities: |                                         
|                                                                        |                                                                                       |                                              | Accounts receivable                     
|                                                                        |                                                                                       |                                              | Inventories                             
|                                                                        |                                                                                       |                                              | Costs, estimated earnings, and billings 
|                                                                        |                                                                                       |                                              | Other assets                            
|                                                                        |                                                                                       |                                              | Accounts payable and other liabilities  
|                                                                        |                                                                                       |                                              | Deferred service obligations and revenue
|                                                                        |                                                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|INVESTING ACTIVITIES                                                    |                                                                                       |                                              |                                         
|                                                                        | Purchases of property and equipment                                                   |                                              |                                         
|                                                                        | Proceeds from sales of property and equipment                                         |                                              |                                         
|                                                                        | Issuance of note receivable                                                           |                                              |                                         
|                                                                        | Collections on notes receivable                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|FINANCING ACTIVITIES                                                    |                                                                                       |                                              |                                         
|                                                                        | Decrease in checks issued in excess of deposits                                       |                                              |                                         
|                                                                        | Net increase in bank line of credit                                                   |                                              |                                         
|                                                                        | Proceeds from notes and installment obligations payable                               |                                              |                                         
|                                                                        | Payments on notes and installment obligations payable                                 |                                              |                                         
|                                                                        | Collections on subscription receivable                                                |                                              |                                         
|                                                                        | Proceeds from issuance of stock and warrants                                          |                                              |                                         
|                                                                        | Stock issuance costs                                                                  |                                              |                                         
|                                                                        | Preferred stock dividends                                                             |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|INCREASE IN CASH                                                        |                                                                                       |                                              | 433,608                                 
|CASH                                                                    |                                                                                       |                                              |                                         
|                                                                        | Beginning of period                                                                   |                                              |                                         
|                                                                        |                                                                                       |                                              |                                         
|                                                                        | End of period                                                                         |                                              | $                                       
|                                                                        |                                                                                       |                                              |                                         
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                        |                                                                                       |                                              |                                         
|                                                                        | Interest paid                                                                         |                                              | $                                       
|SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES |                                                                                       |                                              |                                         
|                                                                        | Capitalized equipment purchases                                                       |                                              | $                                       
|                                                                        | Notes payable converted to stock and warrants issued                                  |                                              | $                                       
|                                                                        | Subscriptions receivable on common stock                                              |                                              | $                                       
|                                                                        | Warrant dividends                                                                     |                                              | $                                       
|                                                                        | Refinancing of debt                                                                   |                                              | $                                       
|                                                                        | Conversion of preferred to common stock                                               |                                              | $                                       

See notes to condensed consolidated financial statements

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VICOM, INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The information furnished in this report is unaudited and reflects all adjustments which are normal recurring adjustments and, which in the opinion of management, are necessary to fairly present the
operating results for the interim periods. The operating results for the interim periods presented are not necessarily indicative of the operating results to be expected for the full fiscal year.

Certain Financing Activities

In March 2000, Vicom's subsidiary, Corporate Technologies, USA, Inc. (CTU), entered into a $2,250,000 debenture/loan agreement with Convergent
Capital (Convergent), requiring interest at prime plus 4% (plus 6% if in default) and due on December 31, 2000. The loan proceeds were used to pay off a previous CTU line of credit due
March 31, 2000. Convergent, as additional consideration in the
transaction, was given a warrant with a term of seven years to purchase 40,000 shares of Vicom's common stock at a price of $5.20 per share.

On
July 11, 2000, the Convergent agreement was amended to extend the due date to June 1, 2005. The terms of the amended agreement require interest only payments for
36 months from July 11, 2000 and thereafter 22 equal monthly payments of principal and interest until the loan is paid in full. The amended agreement also requires interest at 14%
annually (16% annually if Vicom is in default). Convergent, as additional consideration for extending the loan, was issued a warrant with a term of seven years to purchase 110,000 shares of Vicom
common stock at a price of $4.18 per share.

In
order to enhance liquidity, Vicom, in the quarter ended September 30, 2000, issued 72,810 shares of 10% Class C Convertible preferred stock in the amount of $728,100.

Loss Per Share

Loss per share-basic is determined by dividing net income loss plus the preferred stock dividends by the weighted average common shares outstanding. Net loss
per common share-diluted is computed by dividing net loss plus the preferred stock dividends by the weighted average common shares outstanding and the common share equivalents (stock options, stock
warrants, convertible preferred shares, and issued but not outstanding restricted stock). Common share equivalents are not included in the computations as their effects were anti-dilutive.

FORWARD-LOOKING STATEMENTS

From time to time, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects,
product pricing, management for growth, integration of acquisitions, technological developments, new products, and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe
harbor for forward-looking statements including those made in this statement. In order to comply with the terms of the Private Securities Litigation Reform Act, the Company notes that a variety of
factors could cause the Company's actual results and experience to differ materially from the anticipated results or Company's forward-looking statements.

The
risks and uncertainties that may affect the operations, performance, developments and results of the Company's business include the following: national and regional economic
conditions; pending and future legislation affecting IT and telecommunications industries; market acceptance of the Company's products and services; the Company's products and services; the Company's
continued

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ability to provide integrated communication solutions for customers in a dynamic industry; and other competitive factors.

Because
these and other factors could affect the Company's operating results, past financial performance should not necessarily be considered as a reliable indicator of future
performance and anticipated future period results.

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ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND RESULTS OF OPERATION

GENERAL

Vicom is the parent corporation of three wholly-owned subsidiaries, Corporate Technologies, USA, Inc. (CTU), MultiBand, Inc. (MultiBand) and
Vicom Midwest Telecommunications Systems, Inc. (VMTS). VMTS was not active as of September 30, 2000. In late 1999, to expand its range of computer product and service offerings, Vicom
formed CTU to acquire the stock of Ekman, Inc. Vicom incorporated MultiBand in February 2000 to provide voice, data and video services to residential multi-dwelling units (MDUs).
MultiBand is in the start-up phase.

Vicom
has provided clients with telecommunications products and services since its inception in 1975. As of September 30, 2000, we were providing telephone equipment and
service to more than 1,000 customers, with approximately 10,000 telephones in service. In addition, CTU provides computer products and services to approximately 3,500 customers. The telecommunications
systems we distribute are intended to provide customers with flexible, cost-effective alternatives as compared to systems available from major telephone companies, including those formerly
comprising the Bell System, and from other interconnected telephone companies.

Vicom
and CTU provide a full range of voice, data and video communications systems and service, system integration, training and related communication sales and support activities for
commercial, professional and institutional customers, most of which are located in Minnesota, North Dakota, South Dakota and Nebraska. Vicom purchases products and equipment from NEC
America, Inc. ("NEC"), Cisco Systems, Inc., Nortel Networks Corp., ECI Telecommunications, Inc. ("ECI"), and other manufacturers of communications and electronic products and
equipment. We use these products to design telecommunications systems to fit our customers' specific needs and demands.

RESULTS OF OPERATIONS

Revenues

Revenues increased 220% to $10,219,008 in the quarter ended September 30, 2000, as compared to $3,189,197 for the quarter ended September 30,
1999. For the nine months period ended September 30, 2000, revenues increased 131% to $28,624,886 as compared to $12,397,994 for the similar period last year. Both increases in revenues are
directly attributed to the Company's acquisition of Ekman, Inc. in late 1999.

Gross Margin

The Company's gross margin increased 128% or $1,319,594 to $2,350,899 for the quarter ended September 30, 2000, as compared to $1,031,305 for the
similar quarter last year. The gross margin increase is due to the aforementioned acquisition of Ekman, Inc. For the quarter ended September 30, 2000, as a percent of total revenues,
gross margin was 23% as compared to 32% for the similar period last year. The decrease in the gross margin percentage is primarily due to increased sales of personal computer products, which sales
have lesser gross margins than the Company's traditionally based telephone equipment sales

For
the nine month period ended September 30, 2000, the Company's gross margin increased 104% or $3,288,192 to $6,443,834 as compared to $3,155,642 for the similar period last
year. The gross margin increase is due to the aforementioned acquisition of Ekman, Inc. For the nine month period ended September 30, 2000, as a percent of total revenues, gross margin
was 23% as compared to 25%

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for the similar period last year. The decrease in the gross margin percentage is primarily due to increased sales year to date of personal computer products, which sales have lesser gross margins than
the Company's traditionally based telephone equipment sales.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 71% to $2,501,869 in the quarter ended September 30, 2000, compared to $1,465,764 in the prior
year quarter. This increase in expenses is primarily related to increased payroll due to acquisitions and start-up expenses for the Company's MultiBand, Inc. subsidiary. Selling,
general and administrative expenses were, as a percentage of revenues, 24% for the quarter ended September 30, 2000 and 46% for the similar period a year ago.

For
the nine-month period, these expenses increased 117% to $8,154,184 compared to $3,752,672 in the prior year period. The increase in expenses is primarily related to
increased payroll due to acquisitions and start-up expenses for the Company's MultiBand, Inc. subsidiary. For the nine month period ended September 30, 2000, selling, general
and administrative expenses were, as a percentage of revenues, 28% and 30% for the similar period a year ago.

Interest Expense

Interest expense was $133,669 for the quarter ended September 30, 2000, versus $64,670 for the similar period a year ago, reflecting an increased
Company debt load due to acquisition related debt and increased bank borrowings. It was $446,820 for the nine month ended September 30, 2000, and $149,543 for the similar period a year ago.

Net Loss

In the third quarter of fiscal 2000, the Company incurred a net loss of $114,805 compared to a net loss of $460,447 for the third fiscal quarter of 1999. The
nine month period ended September 30, 2000, resulted in a net loss of $2,157,170 compared to a net loss of $748,501 for the similar period last year.

Liquidity and Capital Resources

Available working capital, for the nine months ended September 30, 2000, increased over the similar period last year due to proceeds from issuance of
stock and exercise of outstanding warrants, which
helped offset Vicom's net operating loss. Vicom experienced a significant decrease in accounts payable for the period ended September 30, 2000 versus last year's period, primarily due to the
aforementioned proceeds, which were used to reduce payables. Accounts receivables increased materially for the period ended September 30, 2000 compared to the prior year period due to a
significant increase in revenues resulting from the acquisition of Ekman, Inc. in late 1999.

Inventories
year to date increased over last year's prior period inventories due to the aforementioned revenue increases. Net borrowings under credit agreements increased materially
for the nine months ended September 30, 2000 compared to the prior year's period due to debenture financing with a lender, the proceeds of which were used to pay off a bank line of credit.

Management
of Vicom believes that, for the near future, cash generated by sales of stock, exercise of warrants, and existing credit facilities, in aggregate, are adequate to meet the
anticipated liquidity and capital resource requirements of its business.

Capital Expenditures

The Company used $1,409,830 for capital expenditures during the nine months ended September 30, 2000, as compared to $331,671 in the similar period last
year. These year to date 2000 expenditures were primarily for construction in process items, which totaled $978,810 and related to the

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start up of MultiBand. The balance of year to date 2000 expenditures, $431,020, consisted of equipment acquired for internal uses such as vehicles, office furniture, computer systems and demonstration
systems. For the similar period last year, substantially all capital expenditures consisted of equipment acquired for internal use.

IMPACT OF YEAR 2000

The Company has experienced no significant system problems since January 1, 2000. In addition, the Company is not aware of any material problems being
experienced by its suppliers and business partners. The Company believes it has adequately addressed the Year 2000 issue related to its internal
systems and that it did not and will not have a material impact on its business, financial condition or its results of operations.

ITEM 3.  QUANTITIVE AND QUALITIVE DISCLOSURE ABOUT MARKET RISK

Vicom is not subject to any material interest rate risk as any current lending agreements are at a fixed rate of interest.

PART II.  OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



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ITEM 5.  LEGAL PROCEEDINGS



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

|                        |  | VICOM, INC.Registrant
|----------------------- |  | ---------------------
|Date: November 14, 2000 |  | By:                  
|Date: November 14, 2000 |  | By:                  

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