U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

   Quarterly Report Section 13 or 15(d) of the Securities Exchange Act of 1934

                       For the quarter ended June 30, 2003

                          Commission File No. 000-26213

                             ARC COMMUNICATIONS INC.
        (Exact name of small business issuer as specified in its charter)

    A New Jersey Corporation                                     22-3201557
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation  or organization)                             Identification No.)

                              788 Shrewsbury Avenue
                         Tinton Falls, New Jersey 07724
                    (Address of principal executive offices)

                    Issuer's telephone number: (732) 219-1766

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities 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 |_|

The number of shares outstanding of the Issuer's common stock as of August 12,
2003 was 14,984,459.


<PAGE>

ARC COMMUNICATIONS INC.

INDEX

PART I.  FINANCIAL INFORMATION

         Item 1. Financial Statements (Unaudited)

         a) Consolidated Balance Sheets as of June 30, 2003.............      3

         b) Consolidated Statements of Operations for the
             Three and Six Months Ended June 30, 2003 and 2002..........      4

         c) Consolidated Statements of Cash Flows for the
             Six Months Ended June 30, 2003 and 2002 ...................      5

         d) Notes to Consolidated Financial Statements .................  6 to 7


         Item 2. Management's Discussion and
                 Analysis or Plan of Operations ........................  8 to 9

        Item 3. Controls and Procedures.................................

PART II.  OTHER INFORMATION

        Item 6.  Exhibits and Reports on Form 8-K

Signature...............................................................      10


<PAGE>

                            ARC COMMUNICATIONS, INC.

                                  BALANCE SHEET

                                    UNAUDITED

                                     ASSETS

                                                                      June 30,
                                                                        2003
                                                                    -----------
CURRENT ASSETS
   Cash and Cash Equivalents                                        $    26,000
   Accounts Receivable-Net of Allowances for Doubtful Accounts
       of $25,000                                                       174,000
   Prepaid Expenses                                                       2,000
   Other Receivables                                                    100,000
                                                                    -----------
       Total Current Assets                                             302,000
                                                                    -----------

PROPERTY AND EQUIPMENT-NET                                              113,000
                                                                    -----------

OTHER ASSETS
   Security Deposits                                                     15,000
                                                                    -----------

       Total Other Assets                                                15,000
                                                                    -----------

TOTAL ASSETS                                                        $   430,000
                                                                    ===========

                      LIABILITIES AND CAPITAL DEFICIENCY

CURRENT LIABILITIES
   Line of Credit                                                   $   130,000
   Accounts Payable and Accrued Expenses                                248,000
   Due To Stockholders                                                   72,000
                                                                    -----------
       Total Current Liabilities                                        450,000
                                                                    -----------

COMMITMENTS AND CONTINGENCIES

   Preferred Stock, Stated Value $.20; 5,000,000 Shares
       Authorized; 720,000 Shares Issued and Outstanding
       in 2002 and 2001 Respectively                                    144,000
   Common Stock, $.001 Par Value, Authorized 45,000,000
       Shares, Issued and Outstanding 14,984,459                         15,000
   Additional Paid in Capital                                         1,428,000
   Retained Earnings (Accumulated Deficit)                           (1,607,000)
                                                                    -----------
CAPITAL DEFICIENCY                                                      (20,000)
                                                                    -----------

TOTAL LIABILITIES AND CAPITAL DEFICIENCY                            $   430,000
                                                                    ===========


<PAGE>

                            ARC COMMUNICATIONS, INC.

                            STATEMENTS OF OPERATIONS

                                    UNAUDITED

<TABLE>
<CAPTION>
                                               6 Months Ended  6 Months Ended  3 Months Ended  3 Months Ended
                                                   June 30,        June 30,        June 30,        June 30,
                                                    2003            2002             2003            2002
                                               --------------  --------------  --------------  --------------

<S>                                              <C>             <C>             <C>             <C>
NET SALES                                        $   413,000     $   609,000     $   195,000     $   243,000

COSTS AND EXPENSES
    Operating Costs                                   76,000          56,000          33,000          21,000
    Selling, General and Administrative              334,000         632,000         163,000         330,000
    Depreciation and Amortization                     33,000          50,000          17,000          26,000
                                                 -----------     -----------     -----------     -----------

       Total Costs and Expenses                      443,000         738,000         213,000         377,000
                                                 -----------     -----------     -----------     -----------

OTHER INCOME (EXPENSES)
    Interest Income                                        0           2,000               0           1,000
    Interest Expense                                 (10,000)        (13,000)         (5,000)         (8,000)
                                                 -----------     -----------     -----------     -----------

       Total Other Expense                           (10,000)        (11,000)         (5,000)         (7,000)
                                                 -----------     -----------     -----------     -----------

LOSS FROM CONTINUING OPERATIONS                  $   (40,000)    $  (140,000)    $   (23,000)    $  (141,000)

INCOME FROM DISCONTINUED OPERATIONS                    5,000          43,000                          24,000

GAIN FROM SALE OF DISCONTINUED OPERATIONS            460,000                         460,000

                                                 -----------------------------------------------------------
NET INCOME                                       $   425,000     $   (97,000)    $   437,000     $  (117,000)
                                                 ===========     ===========     ===========     ===========

BASIC AND DILUTED (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS                            $      0.00     $     (0.01)    $      0.00     $     (0.01)
                                                 ===========     ===========     ===========     ===========
NET INCOME                                       $      0.03     $     (0.01)    $      0.03     $     (0.01)
                                                 ===========     ===========     ===========     ===========

Weighted Average Number of Shares Outstanding     14,984,459      14,311,000      14,984,459      14,392,000
</TABLE>

See Notes to Consolidated Financial Statements.


<PAGE>

                            ARC COMMUNICATIONS, INC.

                            STATEMENTS OF CASH FLOWS

                                    UNAUDITED

<TABLE>
<CAPTION>
                                                                 June 30,     June 30,
                                                                   2003         2002
                                                                ---------    ---------
<S>                                                             <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES

   Net Income (Loss)                                            $ 425,000    $ (97,000)
   Adjustments to Reconcile Net Income or Loss to Net Cash
      Provided by Operating Activities:
          Depreciation and Amortization                            33,000       52,000
          Gain on Sale of Discontinued Operations                (460,000)           0
          Issuance of commonn stock as compensation                     0        5,000

   Increase (Decrease) in Cash from Changes in:
      Accounts Receivable                                         (48,000)     594,000
      Other Receivable                                                  0      (14,000)
      Assets of Discontinued Operations                            27,000            0
      Due to Stockholders                                          (2,000)           0
      Accounts Payable and Accrued Expenses                       (47,000)     (48,000)
      Billings in Excess of Costs                                       0     (402,000)
      Liabilities of Discontinued Operations                      (83,000)           0
                                                                ---------    ---------

          Total Adjustments                                      (580,000)     187,000
                                                                ---------    ---------

          Net Cash Provided By (Used by) Operating Activities    (155,000)      90,000
                                                                ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES

   Expenditures for Property and Equipment                         (4,000)      (9,000)
   Proceeds from sale of Discontinued Operations                  350,000
                                                                ---------    ---------
          Net Cash (Used in) Investing Activities                 346,000       (9,000)
                                                                ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES

   Repayment to Line of Credit                                   (165,000)           0
   Issuance of Common Stock                                             0      (39,000)
                                                                ---------    ---------

          Net Cash Used in Financing Activities                  (165,000)     (39,000)
                                                                ---------    ---------

NET INCREASE IN CASH                                               26,000       42,000

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                        0       44,000
                                                                ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                      $  26,000    $  86,000
                                                                =========    =========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
     Cash Paid for Interest                                        10,000       14,000
</TABLE>

See Notes to Consolidated Financial Statements.


<PAGE>

                            ARC COMMUNICATIONS, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                    Unaudited

                                  June 30, 2003

1.    Basis of Presentation

      In the opinion of the Company, the accompanying consolidated financial
      statements contain all adjustments (consisting only of normal recurring
      adjustments) necessary to fairly present the Company's financial position
      and its results of operations and cash flows as of the dates and for the
      periods indicated.

      Certain information and footnote disclosures normally contained in
      financial statements prepared in accordance with generally accepted
      accounting principles have been omitted. These condensed consolidated
      financial statements should be read in conjunction with the audited
      December 31, 2002 financial statements and related notes included in the
      Company's year end certified financial statement. The results of
      operations for the three months are not necessarily indicative of the
      operating results for the full year.

2.    Principles of Consolidations

      The consolidated financial statements included the accounts of the Company
      and all of its subsidiaries in which a controlling interest is maintained.
      All significant intercompany accounts and transactions have been
      eliminated in consolidation. For those consolidated subsidiaries where
      Company ownership is less than 100%, the outside stockholders' interests
      are shown as minority interests. Investments in affiliates over which the
      Company has significant influence but not a controlling interest are
      carried on the equity basis.

3.    Revenue Recognition

      The Company recognized revenue from sales at the date the product is
      shipped and as professional services are performed.


<PAGE>

Item 2. Management's Discussion and Analysis or Plan of Operations

Six Months Ended June 30, 2003 and June 30, 2002

The Company's net sales for the six months ended June 30, 2003 and 2002 were
$413,000 and $609,000, respectively, a decrease of 32 percent. The decrease in
sales is a result of web site development decreasing $134,000 (or 77%); full
interactive multi-media development increasing $53,000 (or 30%); and
Production/Print services decreasing $99,000 (or 41%).

The decline in revenue was driven by the continued slow down in the economy in
the Company's main areas of concentration which are technology and health care,
along with the increase in competition for web services which results in severe
price cutting of what we can charge for our services.

Operating costs for the six months ended June 30, 2003 and 2002 were $76,000 and
$56,000, respectively. The increase is due to the need to utilize outside
resources more often. With the Company's continued reduction in full-time
employees, this increase is more than offset by the decrease in general and
administrative expenses.

Selling, general and administrative expenses for the six months ended June 30,
2003 and 2002 were $334,000 and 632,000, respectively. Selling, general and
administrative expenses decreased $298,000 (or 47%). This decrease was primarily
due to reductions in selling expenses such as commissions and travel expenses as
a result of the decline in revenues and also due to the continued decrease of
overhead due to the revenue declines. Salaries decreased $171,000 for the period
as the Company moved towards the use of contract employees on an as needed basis
instead the use of full-time employees.

Depreciation and amortization expenses for the six months ended June 30, 2003
and 2002 were $33,000 and $50,000, respectively, a decrease of 34 percent.

The loss from  continuing  operations for the six months ended June 30, 2003 and
2002 was $40,000 and $140,000, respectively, a decrease in losses of $100,000 or
(71%). As a result, loss per share from continuing  operations was $0.01 for the
six months ended June 30, 2003 and 2002.

As a result of the closing of the Company's educational seminar programs which
generated a substantial portion of the educational division's revenue, the
Company determined in late 2002 to sell its continuing professional education
business, ArcMesa Educators, Inc. to Belcan Corporation of Cincinnati, Ohio.
This took place on April 1, 2003. This area of the Company's business had
sustained continual losses. This sale will allow the Company to concentrate on
its core business and provide it the resources to expand into other
communications areas.

The net income for the six months ended June 30, 2003 was $425,000 of which a
$460,000 gain was a result of the sale of the continuing professional education
business and of which $5,000 was a result of net income from the continuing
professional education business prior to the sale. The net loss for the six
months ended June 30, 2002 was $97,000 of which a $140,000 loss was from
continuing operations and of which $43,000 was a result of net income from
discontinued operations.

Three Months Ended June 30, 2003 and June 30, 2002

The Company's net sales for the three months ended June 30, 2003 and 2002 were
$213,000 and $377,000, respectively, a decrease of 44 percent. The decrease in
sales is a result of web site development decreasing $23,000 (or 100%); full
interactive multi-media development increasing $28,000 (or 33%); and
Production/Print services decreasing $43,000 (or 34%).

Revenue decline was driven by the continued slow down in the economy in the
Company's main areas of concentration which are technology and health care,
along with the increase in competition for web services which results in severe
price cutting of what we can charge for our services.

Operating costs for the three months ended June 30, 2003 and 2002 were $33,000
and $21,000, respectively. The increase is due to the need to utilize outside
resources more often. With the Company's continued reduction in full-time
employees, this increase is more than offset by the decrease in general and
administrative expenses.

Selling, general and administrative expenses for the three months ended June 30,
2003 and 2002 were $163,000 and 330,000, respectively. Selling, general and
administrative expenses decreased $167,000 (or 51%). This decrease was primarily
due to reductions in selling expenses such as commissions and travel expenses as
a result of the decline in revenues and also due to the continued decrease in
overhead due to the revenue declines. Salaries decreased $107,000 for the period
as the Company moved towards the use of contract employees on an as needed basis
instead the use of full-time employees.

Depreciation and amortization expenses for the three months ended June 30, 2003
and 2002 were $17,000 and $26,000, respectively, a decrease of 35 percent.

The loss from continuing operations for the three months ended June 30, 2003 and
2002 was $23,000 and $141,000, respectively, a decrease in losses of $118,000 or
(84%). As a result, income loss per share from continuing operations was $0.01
for the three months ended June 30, 2003 and 2002.

<PAGE>

As a result of the closing of the Company's educational seminar programs which
generated a substantial portion of the educational division's revenue, the
Company determined in late 2002 to sell its continuing professional education
business, ArcMesa Educators, Inc. to Belcan Corporation of Cincinnati, Ohio.
This took place on April 1, 2003. This area of the Company's business had
sustained continual losses. This sale will allow the Company to concentrate on
its core business and provide it the resources to expand into other
communications areas.

The net income for the three months ended June 30, 2003 was $437,000 of which a
$460,000 gain was the result of the sale of the continuing professional
education segment. The net loss for the three months ended June 30, 2002 was
$141,000 of which $24,000 was a result of net income from discontinued
operations.

Liquidity and Capital Resources

If revenues continue to decline the Company will have to seek additional
financing. The Company believes that for the near term this will not be
necessary due to significant overhead reductions that took place in February
2003.

The Company decreased its credit usage by $165,000. This was necessitated by its
stipulation agreement with Sovereign Bank. Beginning May 1, 2003, the Company
began to make monthly principal payments of $2,000.

In their report on the audit of the Company's financial statements for the years
ended December 31, 2002 and 2001, our independent auditors included an
explanatory paragraph in their report because of the uncertainty that we could
continue our business as a going concern. In the event we are unable to raise
the anticipated capital needs through some form of financing or increase our
revenues and cash flows, there would be substantial doubt about our ability to
continue as a going concern.


<PAGE>

Item 3. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in our Exchange Act reports is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms, and that such
information is accumulated and communicated to our management, including our
Chief Executive Officer and Chief Financial Officer, to allow timely decisions
regarding required disclosure. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives, and management necessarily was
required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.

Within 90 days prior to the date of this report, we carried out an evaluation,
under the supervision and with the participation of our management, including
the Chief Executive Officer and the Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based on the foregoing, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures were
effective.

There have been no significant changes in our internal and disclosure controls
or in other factors that could significantly affect the internal or disclosure
controls subsequent to the date we completed our evaluation.


<PAGE>

                           PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

(a)   Exhibits.

32.1  Certification pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002

(b)   Current reports on Form 8-K.

None.


<PAGE>

                                   SIGNATURES

In accordance with requirements of the Exchange Act, the Issuer caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.


      Date: August 13, 2003                             ARC COMMUNICATIONS INC.


                                                        BY: /s/ Peter Bordes
                                                           --------------------
                                                        Peter Bordes
                                                        Chief Executive Officer