For quarter ended August 31, 2001

Commission File Number 2-15966

|TAYCO DEVELOPMENTS, INC.                              
|------------------------------------------------------
|(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

|NEW YORK                                                       |  | 16-0835557                             
|-------------------------------------------------------------- |  | ---------------------------------------
|(State or other Jurisdiction of incorporation or
organization) |  | (I.R.S. Employer Identification Number)

|100 TAYLOR DRIVE, NORTH TONAWANDA, NEW YORK |  | 14120-0748
|------------------------------------------- |  | ----------
|Address of Principal Executive Offices      |  | Zip Code  

|Registrant's telephone number, including area code - 716-694-0877
|-----------------------------------------------------------------

Indicate by check mark whether the registrant (1) has filed all annual, quarterly, and other reports
required to be filed with all the Commission and (2) has been subject to the filing requirements for at
least the past 90 days.



|Yes  X      No |  |  |  | 
|-------------- |  |  |  | 

Indicate the number of shares outstanding, of each of the Issuer's classes of common stock as of the close
of the period covered by this report.

|CLASS                             |  | Outstanding at August 31, 2001
|--------------------------------- |  | ------------------------------
|Common Stock

(5 cents par value) |  | 990,213                       



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|TAYCO DEVELOPMENTS, INC.   
|---------------------------
|                           
|**Index****to Form 10-QSB**
|                           

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|PART I                     | FINANCIAL INFORMATION |                                                                                           | PAGE
|-------------------------- | --------------------- | ----------------------------------------------------------------------------------------- | ----
|                           |                       |                                                                                          
|                           | Item 1.               | Financial Statements                                                                     
|                           |                       |                                                                                          
|                           |                       | Balance Sheets, August 31, 2001 and May 31, 2001                                          | 3   
|                           |                       |                                                                                          
|                           |                       | Statements of Income for three months ended August 31, 2001and September 30, 2000         | 4   
|                           |                       |                                                                                          
|                           |                       | Statements of Cash Flows for three months ended August 31,
2001 and September 30, 2000    | 5   
|                           |                       |                                                                                          
|                           |                       | Notes to Condensed Financial Statements                                                   | 6   
|                           |                       |                                                                                          
|                           | Item 2.               | Management's Discussion and Analysis of the Financial
Condition and Results of Operations | 7   
|                           |                       |                                                                                          
|PART II                    | OTHER INFORMATION    
|                           | Item 1.               | Legal Proceedings                                                                         | 9   
|                           | Item 2.               | Changes in Securities                                                                     | 9   
|                           | Item 3.               | Defaults Upon Senior Securities                                                           | 9   
|                           | Item 4.               | Submission of Matters to Vote of Security Holders                                         | 9   
|                           | Item 5.               | Other Information                                                                         | 9   
|                           | Item 6.               | Exhibits and Reports on Form 8-K                                                          | 9   
|ACCOUNTANTS' REVIEW REPORT | 10                   
|SIGNATURES                 |                       | 11                                                                                       



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|TAYCO DEVELOPMENTS, INC.                
|----------------------------------------
|                                        
|                                        
|                                        
|**Assets**                              
|**Current assets:**                     
|                                        
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|Investments in affiliates, at equity    
|                                        
|Property and equipment, net             
|                                        
|Other assets:                           
|                                        
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|                                        
|                                        
|                                        
|                                        
|**Liabilities and Stockholders' Equity**
|**Current liabilities:**                
|                                        
|                                        
|                                        
|                                        
|Deferred income taxes                   
|                                        
|**Stockholders' equity:**               
|                                        
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|                                        

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|TAYCO DEVELOPMENTS, INC.                                                         
|---------------------------------------------------------------------------------
|                                                                                 
|**Condensed Statements of Income******                                           
|                                                                                 
|****************For the three months ended August 31, 2001 and September 30, 2000
|                                                                                 
|Revenues:                                                                        
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|Operating expenses:                                                              
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
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|                                                                                 
|Interest income (expense), net                                                   
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|                                                                                 
|                                                                                 
|Provision for income taxes                                                       
|                                                                                 
|                                                                                 
|                                                                                 
|Equity in net income of affiliates                                               
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 

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|TAYCO DEVELOPMENTS, INC.                                         
|-----------------------------------------------------------------
|                                                                 
|**Condensed Statements of Cash Flows**                           
|                                                                 
|For the three months ended August 31, 2001 and September 30, 2000
|                                                                 
|**Cash flows from operating activities:**                        
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|**Cash flows for investing activities:**                         
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 
|Cash - beginning                                                 
|                                                                 
|                                                                 
|                                                                 
|                                                                 

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|TAYCO DEVELOPMENTS, INC.                   
|-------------------------------------------
|                                           
|**Notes to Condensed Financial Statements**
|                                           

---

|1. | The accompanying unaudited condensed financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial
information and with the instructions to Form 10-QSB and Regulation S-B.  Accordingly, they do
not include all of the information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. In the opinion of the Company,
the accompanying unaudited condensed financial statements contain all adjustments (consisting of
only normal recurring accruals) necessary to present fairly the financial position as of August 31,
2001 and September 30, 2000 and the results of operations and cash flows for the three months then
ended.  These financial statements should be read in conjunction with the audited financial
statements and notes thereto contained in the Company's Annual Report to Shareholders for the
eleven months ended May 31, 2001.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|2. | There is no provision nor shall there be any provisions for profit sharing, dividends, or any other
benefits of any nature at any time for this fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|3. | To calculate the earnings per share for the three month periods ended August 31, 2001and
September 30, 2000, the net income was divided by the outstanding shares of 990,213.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|4. | The results of operations for the three month period ended August 31, 2001, are not necessarily
indicative of the results to be expected for the full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|5. | Significant Equity Investee: The Company owns a 25% equity investment in Taylor Devices, Inc.
For the three months ended August 31, 2001, Taylor Devices, Inc. had sales of $3,940,063, gross
profit of $1,694,100 and net income of $390,930.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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|TAYCO DEVELOPMENTS, INC.                                                                            
|----------------------------------------------------------------------------------------------------
|                                                                                                    
|**Management's Discussion and Analysis of the Financial Condition********and Results of Operations**
|                                                                                                    

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The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking
statements.  Certain matters discussed in this section and elsewhere in this report, which are not historical
facts, are forward-looking statements.  Words such as "expects," "intends," "believes," "anticipates,"
"estimates," "assumes," and analogous expressions are intended to identify forward-looking statements.  As
such, these statements involve risks and uncertainties including, but not limited to, economic conditions,
product demand and industry capacity, competition, pricing pressures, the need for the Company to keep
pace with customer needs and technological developments, and other factors, many or all of which may be
beyond the control of the Company.  The following is management's discussion and analysis of certain
significant factors which have affected the Company's earnings during the periods included in the
accompanying consolidated condensed statements of income.

A summary of the period to period changes in the principal items included in the condensed statements of
income is shown below:

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|                                             | Comparisons of the three months ended


August 31, 2001 and September 30, 2000
|-------------------------------------------- | ------------------------------------------------------------------------------
|                                             | Increase           (Decrease)                                                 
|                                             |                                                                               
|Royalties                                    |                                                                               
|Research & development                       |                                                                               
|Research & development expense               |                                                                               
|Selling, general and administrative expenses |                                                                               
|Amortization / depreciation                  |                                                                               
|Operating income                             |                                                                               
|Other income (expense)                       |                                                                               
|Income before taxes & equity in affiliates   |                                                                               
|Provision for taxes                          |                                                                               
|Equity in affiliates                         |                                                                               
|Net income                                   |                                                                               



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|TAYCO DEVELOPMENTS, INC.               
|---------------------------------------
|                                       
|**Management's Discussion (Continued)**
|                                       

The Company posted its single best first quarter results in the first quarter of Fiscal Year 2002.  Net Income
was almost double that of the previous best results, posted in QI of Fiscal Year 1996.  The record results
were generated by strong performances from both operations and affiliate income.  In this quarter and for
the remainder of FY02, the month-end dates of the periods being compared will not be aligned due to the
adjustment of the Company's year-end date effected at 5/31/01.

****Total Revenues for FY02 were $155,993, an improvement of 32.6% over revenues for FY01 of $117,642.
Both contributing factors, Royalties and Research and Development revenues improved from year to year.
Both factors benefitted from the continued high level of usage of the Company's technical staff on two
defense/aerospace projects in progress at the Company's primary affiliate, Taylor Devices.

Operating Expenses increased by $6,795 in FY02, to a total of $89,340 representing 57.3% of Revenues.
Expenses of $82,545 for FY01 were 70.2% of revenues.  Most of the pure dollar increase in Operating
Expenses was attributable to personnel costs related to the high activity level.

Income before taxes and affiliate income was $67,294 in FY02, an 89% improvement over the FY01 figure
of $35,465, the result of improved revenues, stable operating expenses and steady interest income.

Equity in the net income of affiliates improved substantially in FY02 as the Company's affiliate, Taylor
Devices, also posted record first quarter figures.  The FY02 figure of $101,895 represents an improvement
of 130.8% over the FY01 affiliate income of $44,142.

Net Income for the first quarter of FY02 was $144,889 with earnings per share of $.15.  These figures
amount to a 111.8% increase over FY01's results of $68,407 for Net Income and earnings per share of $.07.

There were no changes of any substance on the Company's balance sheet.

At the present time, the Company's engineering staff continues to be heavily engaged by Taylor Devices in
fulfillment of the two afore-mentioned defense/aerospace projects.  The Company's staff is assembling the
initial units of the smaller of the two projects and continues to conduct performance analysis tests on the
larger of the two.

For the remainder of FY02, management believes that Taylor Devices will continue its high utilization rate
of the Company's staff on the existing and some potential projects.  Taylor Devices itself is projecting
another strong year with the concomitant favorable impact on the Company's earning from affiliates.  Based
on these two factors, plus the fact that FY02 will be a twelve month year as opposed to the eleven month year
which constituted FY01, Management believes FY02 will be a strong financial year for the Company with
results similar to those of the past few fiscal year.

At this time, Management does not foresee any need to seek funding from external sources.



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|TAYCO DEVELOPMENTS, INC.       
|-------------------------------
|                               
|**Part II - Other Information**
|                               

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|PART II- | OTHER INFORMATION |                                                           
|-------- | ----------------- | ----------------------------------------------------------
|         |                  
|         | ITEM 1            | Legal Proceedings:                                        
|         |                   | The Company is not currently engaged in any litigation.   
|         |                   |                                                           
|         | ITEM 2            | Changes in Securities:

None                              
|         |                   |                                                           
|         | ITEM 3            | Defaults Upon Senior Securities:

None                    
|         |                   |                                                           
|         | ITEM 4            | Submission of Matters to Vote of Securities Holders:

None
|         | ITEM 5            | Other Information:

None                                  
|         |                   |                                                           
|         | ITEM 6            | Exhibits and Reports on Form 8-K:

None                   

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|TAYCO DEVELOPMENTS, INC.      
|------------------------------
|                              
|**Accountants' Review Report**
|                              

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The Board of Directors and Stockholders

Tayco Developments, Inc.

We have reviewed the condensed balance sheet of Tayco Developments, Inc. as of August 31, 2001, and the
related condensed statements of income and cash flows for the three months then ended.  These financial
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American Institute of Certified
Public Accountants.  A review of interim financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible for financial and accounting matters.
It is substantially less in scope than an audit conducted in accordance with auditing standards generally
accepted in the United States of America, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the condensed
financial statements referred to above for them to be in conformity with accounting principles generally
accepted in the United States of America.

We have previously audited, in accordance with auditing standards generally accepted in the United States
of America, the balance sheet as of May 31, 2001, and the related statements of income, changes in
stockholders' equity, and cash flows for the eleven months then ended (not presented herein); and in our
report dated August 2, 2001, we expressed an unqualified opinion on those financial statements.  In our
opinion, the information set forth in the accompanying condensed balance sheet as of May 31, 2001 is fairly
stated, in all material respects, in relation to the balance sheet from which it has been derived.

Lumsden & McCormick, LLP

Buffalo, New York

October 5, 2001

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|TAYCO DEVELOPMENTS, INC.
|------------------------
|                        
|**Signatures**          
|                        

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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.

|TAYCO DEVELOPMENTS, INC.
|------------------------
|(Registrant)            

|By | /s/Douglas P. Taylor                                                                            |  | Date | October 11, 2001
|-- | ----------------------------------------------------------------------------------------------- |  | ---- | ----------------
|   | Douglas P. Taylor

President

Chairman of the Board of Directors

(Principal Executive Officer) |  |      |                 



AND

|By | /s/Kenneth G. Bernstein                                                       |  | Date | October 11, 2001
|-- | ----------------------------------------------------------------------------- |  | ---- | ----------------
|   | Kenneth G. Bernstein

Treasurer

(Principal Financial and Accounting Officer) |  |      |