SECURITIES AND EXCHANGE COMMISSION
                   WASHINGTON, DC 20549

                       FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended MARCH 31, 2001

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to


              Commission file number 0-8161

                       DIONICS, INC.
(Exact name of Small Business Issuer as Specified in its Charter)

Delaware                                               11-2166744
(State or Other Jurisdiction                     (I.R.S. Employer
of Incorporation or                                Identification
Organization)                                             Number)

                   65 Rushmore Street
                Westbury, New York 11590
       (Address of Principal Executive Offices)

                    (516) 997-7474
    (Issuer's Telephone Number, Including Area Code)

Check whether the Issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

     Yes    X              No

State the number of shares outstanding of each of the Issuer's
classes of common equity, as of the latest practicable date:

         Common, $.01 par value per share: 3,683,678
              outstanding as of May 1, 2001
            (excluding 164,544 treasury shares).


<PAGE>

         FORWARD-LOOKING STATEMENTS

     This report contains certain forward-looking statements
that are based upon the beliefs and assumptions of, and
information available to, the management of Dionics, Inc. (the
"Company") at the time such statements are made.  Words such as
"expects", "anticipates", "intends", "plans", "believes",
"seeks", "estimates", or variations of such words and similar
expressions are intended to identify such forward-looking
statements.  The statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions which are difficult to predict.  Therefore, actual
outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements.  The
Company undertakes no obligation to update publicly any forward-
looking statements, whether as a result of new information,
future events or otherwise.





      PART I - FINANCIAL INFORMATION

               DIONICS, INC.


       Index to Financial Information
        Period Ended March 31, 2001



     Item
                                   Page Herein

Item 1 - Financial Statements:

Introductory Comments                   3

Condensed Balance Sheet                 4

Condensed Statement of Operations       6

Statement of Cash Flows                 7

Notes to Financial Statements           8


Item 2 - Management's Discussion and
         Analysis or Plan of Operation  13


<PAGE>

               DIONICS, INC.


               March 31, 2001


     The financial information herein is unaudited.  However,
in the opinion of management, such information reflects all
adjustments (consisting only of normal recurring accruals)
necessary to a fair presentation of the results of operations
for the periods being reported.  Additionally, it should be
noted that the accompanying condensed financial statements do
not purport to be complete disclosures in conformity with
generally accepted accounting principles.

     The results of operations for the three months ended
March 31, 2001 are not necessarily indicative of the results of
operations for the full fiscal year ending December 31, 2001.

     These condensed statements should be read in conjunction
with the Company's financial statements for the year ended
December 31, 2000.

<PAGE>
DIONICS, INC.

BALANCE SHEETS



                               MARCH 31,     DECEMBER 31,
                                 2001            2000
                             (UNAUDITED)    (UNAUDITED)

                           A S S E T S


CURRENT ASSETS:
  Cash                         $  636,800     $  688,600
  Accounts Receivable Trade
    (Less Estimated Doubtful
    Accounts of $10,000 in 2001
    and $10,000 in 2000)-
    (Note 2)                      351,600        372,100
  Inventory - (Notes 2 and 3)     630,000        604,700
  Prepaid Expenses and Other
    Current Assets                 25,700         27,700

  Total Current Assets          1,644,100      1,693,100


PROPERTY, PLANT AND EQUIPMENT -
   (Notes 2,4 and 5)
  At Cost -  Less Accumulated
    Depreciation of $1,677,200
    in 2001
    and $1,675,700 in 2000         74,900         76,300


DEPOSITS AND
OTHER ASSETS - (Notes 2 and 4)     47,200         44,800


     Total                     $1,766,200     $1,814,200



All amounts have been rounded to the nearest $100.

<PAGE>



DIONICS, INC.

BALANCE SHEETS


                              MARCH 31,      DECEMBER 31,
                              2001           2000
                             (UNAUDITED)    (UNAUDITED)

                   L I A B I L I T I E S

CURRENT LIABILITIES:
Current Portion of Long-Term
Debt - (Note 5)             $   94,300       $   93,900
Accounts Payable                56,900           82,600
Accrued Expenses                73,200           48,500
Deferred Compensation Payable -
Current - (Note 4)              68,600          156,400

Total Current Liabilities      293,000          381,400


Long-Term Debt Less Current
Maturities - (Note 5)          620,600          644,900

Deferred Compensation Payable -
Non Current (Note 4)           424,200          419,200
    Total Liabilities        1,337,800        1,445,500


CONTINGENCIES AND COMMENTS


                   SHAREHOLDERS' EQUITY

Common Shares - $.01 Par Value
  Authorized 5,000,000 Shares
    Issued 3,848,222 Shares
    in 2001
    and 3,848,222 Shares
    in 2000 (Note 6)            38,400            38,400
  Additional Paid-in Capital 1,522,800         1,522,800
  Accumulated (Deficit)       (912,200)         (971,900)

                               649,000           589,300

  Less: Treasury Stock at Cost
    164,544 Shares in 2001 and
    164,544 Shares in 2000    (220,600)         (220,600)

  Total Shareholders' Equity   428,400           368,700

          Total             $1,766,200        $1,814,200



All amounts have been rounded to the nearest $100.


<PAGE>


DIONICS, INC.

CONDENSED STATEMENTS OF OPERATIONS


                                 THREE MONTHS ENDED
                                      MARCH 31,
                                  2001           2000
                              (UNAUDITED)    (UNAUDITED)

SALES                          $  570,300  $  508,700

COSTS AND EXPENSES:
  Cost of Sales (Including
  Research and
  Development Costs)              365,500     336,200
  Selling, General and
    Administrative Expenses       128,100     106,500

    Total Costs and Expenses      493,600     442,700

NET INCOME FROM OPERATIONS         76,700      66,000

DIVIDENDS AND OTHER INCOME          7,700       6,200

                                   84,400      72,200

OTHER DEDUCTIONS:
  Interest Expense                 23,500      27,500


NET INCOME FOR THE PERIOD BEFORE
  INCOME TAXES                     60,900      44,700

INCOME TAXES - Note 7               1,200         -0-


NET INCOME FOR THE PERIOD      $   59,700  $   44,700


NET INCOME PER SHARE
  Primary                      $    .0162  $    .0121

  Diluted - Note 6             $       -   $    .0119


Average Number of Shares
  Outstanding Used in Computation
  of Per Share Net Income
   Primary                      3,683,678   3,683,678

   Diluted    - Note 6                 -    3,760,651


All amounts have been rounded to the nearest $100.


<PAGE>

DIONICS, INC.

STATEMENTS OF CASH FLOWS


                                      THREE MONTHS ENDED
                                           MARCH 31,
                                      2001          2000
                                  (UNAUDITED)   (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income                          $ 59,700     $   44,700
Adjustment to Reconcile
Net Income to Net
Cash Used for Operating Activities:
Depreciation and Amortization          1,400          1,900
Changes in Operating Assets
and Liabilities:
Decrease in Accounts Receivable       20,500         68,900
(Increase) in Inventory              (25,400)       (76,200)
Decrease (Increase) in
Prepaid Expenses
and Other Current Asset                2,000         (1,400)
(Increase) Decrease in Deposits
and Other Assets                      (2,400)           800
(Decrease) in Accounts Payable       (25,700)       (33,100)
Increase in Accrued Expenses          24,800         33,100
(Decrease) Increase in
Deferred Compensation
and Related Interest - Net           (82,800)        17,700

Net Cash (Used In)
Provided by Operating
Activities                           (27,900)        56,400

CASH FLOWS (USED IN) INVESTING ACTIVITIES:
Purchase of Equipment                    -0-         (2,200)


CASH FLOWS USED FOR FINANCING ACTIVITIES:
(Repayment) of Debt                  (23,900)       (12,100)

NET (DECREASE) INCREASE IN CASH      (51,800)        42,100

CASH - Beginning of Period           688,600        526,500

CASH - End of Period              $  636,800     $  568,600


All amounts have been rounded to the nearest $100.

<PAGE>

               DIONICS, INC.

       NOTES TO FINANCIAL STATEMENTS

          MARCH 31, 2001 AND 2000



NOTE 1 -  BUSINESS:

The Company designs, manufactures and sells
silicon semi-conductor electronic products, as individual
discrete components, as multi-component integrated circuits and
as multi-component hybrid circuits.

The individual discrete components are predominantly
transistors, diodes and capacitors, intended for use in
miniature circuit assemblies called "hybrid micro-circuits".

Due to the rapidly changing needs of the marketplace, there are
continual shifts in popularity among the various chip components
offered by the Company.  Taken as a whole, the category of
discrete chip components for the hybrid circuit industry is one
of the three main classes of products offered by the Company.

A second main class of products offered by the Company is
encapsulated, assembled, integrated circuits for use in
electronic digital display functions.

The third main class of products offered by the Company is a
range of hybrid circuits that function as opto-isolated MOSFET
drivers and custom Solid State Relays.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

Assets, liabilities, revenues and expenses are recognized on the
accrual basis of accounting.

Cash and Cash Equivalents

The Company considers money market funds to be cash equivalents.

Merchandise Inventory

Inventory is stated at the lower of cost (which represents cost
of materials and manufacturing costs on a first-in, first-out
basis) or market.

<PAGE>

               DIONICS, INC.

       NOTES TO FINANCIAL STATEMENTS

          MARCH 31, 2001 AND 2000



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)

Property, Plant and Equipment

Property, Plant and Equipment is stated at cost less accumulated
depreciation and amortization.  Expenditures for renewals and
improvements that significantly extend the useful life of assets
are capitalized for all assets. Depreciation is provided over
the estimated useful lives of the individual assets using the
straight- line method.  Where possible, current write offs are
taken under Sec 179 of the Internal Revenue Code.  The following
asset lives are in effect:

Machine and Equipment        8 Years
Testing Equipment            8 Years
Furniture and Fixtures      10 Years
Building Improvements       10 Years
Building                    25 Years

Deferred Compensation Plan

Future payments required under a plan of deferred compensation
adopted in 1987 and revised in 1998, as well as interest accrued
thereon are being charged to operations over the period of
expected service.

Bad Debts

The Company maintains a constant allowance for doubtful accounts
of $10,000.

Deferred Mortgage Costs

Costs related to First Union Small Business Capital (formerly
Money Store Commercial Mortgage) and prior costs related to the
paid off mortgage with D.A.N. Joint Venture are being amortized
as follows:

a) New Costs              $35,800  360 Months Starting 1/1/1999
b) Unamortized Prior Cost  16,200   94 Months

                          $52,000


<PAGE>

               DIONICS, INC.

       NOTES TO FINANCIAL STATEMENTS

          MARCH 31, 2001 AND 2000




NOTE 3 - INVENTORIES:
                          March 31,    December 31,
                            2001           2000
                        (Unaudited)    (Unaudited)

Finished Goods            $ 37,500      $ 36,000
Work-in-Process            397,300       381,800
Raw Materials              149,200       143,200
Manufacturing Supplies      46,000        44,200
   Total                  $630,000      $604,700


NOTE 4 - DEFERRED COMPENSATION PAYABLE:

In 1987 the Company entered into an agreement, amended in 1997
and 1998, which provides for a 72 month schedule of payments to
its chief executive officer.

In connection with the refinancing of the First Union Small
Business Capital (formerly Money Store Commercial Mortgage Inc.
(see Note 5) a modified deferred compensation payment schedule
commencing January 1, 1999 was agreed to by the Company and it's
chief executive officer.

The Company executed a mortgage subordinate to the existing
first mortgage (see note 5) secured by land and building at 65
Rushmore Street, Westbury, New York in favor of the chief
executive officer to insure amounts due him on the deferred
compensation agreement.

A new 72 month schedule consists of a 24 month period of reduced
consecutive monthly payments, to be followed by an 18-month
period of no payments except for monthly interest.  At the end
of the 42nd month, the total of the delayed payments becomes due
followed by 30 months of principal and interest payments.

Notwithstanding the above schedule for payments, other than a
life insurance policy to cover death benefits, the Company has
not specifically designated funds with which to meet these
payment requirements.  In view of its continuing total
indebtedness as well as its need for operating capital, there
can be no assurance that the Company will be able to satisfy the
terms of this new agreement in full or in part.  Should such
unfavorable circumstances occur, the terms of the agreement may
have to again be renegotiated to better match the Company's
then-current financial circumstances.  The previously mentioned
Life Insurance policy had a cash surrender value at December 31,
2000 of approximately $2,300, which is included in other assets.


<PAGE>

               DIONICS, INC.

       NOTES TO FINANCIAL STATEMENTS

          MARCH 31, 2001 AND 2000




NOTE 5 - LOANS PAYABLE -

First Mortgage Loan:

A new loan agreement was entered into between Dionics, Inc. and
First Union Business Capital (formerly Money Store Commercial
Mortgage Inc.) effective 12/31/1998.

The loan in the principal amount of $384,685 requires 360
monthly self liquidating payments.  Interest is calculated on
the unpaid principal balance at an initial rate of 8.23% per
annum.  The interest rate on the loan is variable depending on
an independent index related to the yield of United States
Treasury Notes.  This rate change will occur once every 60
months.

$358,232 of the above proceeds were used to satisfy the balance
of the Mortgage due D.A.N. Joint Venture in full.

Term Loans:

Term Loan A - Due D.A. N. Joint Venture.

Certain 1990 loans were replaced by a new term loan in the
principal amount of $283,850, (Term Loan A) structured over two
five-year periods.  During the first five-year period, which
ended 3/31/99, the Company paid interest only.  During the
second five-year period commencing 4/1/99  the balance due will
be repaid over 60 equal monthly installments.   All interest at
prime plus two percent on the unpaid balance to be paid with the
final payment of the loan.

Term Loan C - Due D.A. N. Joint Venture.

Another Term Loan (Term Loan C) stemming from the Original
Mortgage has a face amount of $167,500 and carries the same
interest rate and payment terms over two five-year periods as
the new $283,850 Term Loan A described in the Paragraph above.

In conjunction with the refinancing of the old mortgage D.A.N.
Joint Venture confirmed and acknowledged that the old mortgage
note was paid in full, that all accrued interest above the 2%
stated rate and the principal and any accrued interest on Term
Loan C was forgiven, discharged and cancelled.


<PAGE>


               DIONICS, INC.

       NOTES TO FINANCIAL STATEMENTS

          MARCH 31, 2001 AND 2000


NOTE 6 - STOCK OPTION PLAN

In September 1997, the Board of Directors of the Company adopted
the 1997 Incentive Stock Option Plan (the "1997 Plan") for
employees of the Company to purchase up to 250,000 shares of
common Stock of the Company.  Options granted under the 1997
plan are "incentive stock options" as defined in Section 422 of
the Internal Revenue Code.  Any stock options granted under the
1997 Plan shall be granted at no less than 100% of the fair
market value of the Common Stock of the Company at the time of
the grant.  As of March 31, 2001, options to acquire 120,000
shares of Common Stock have been granted under the 1999 Plan.
All of such options were granted on September 11, 1997 and have
an exercise price of $.38 per share.  As of March 31, 2001,
130,000 options were available for future grants.  Since the
market price of the Company's Common Stock was below the
exercise price of the options, the options were Anti-Dilutive
for the current period.


NOTE 7 - INCOME TAXES:

Provision for Corporate Federal and State Income taxes at March
31, 2001 is as follows:

                Federal         None

                State          $1,500

                               $1,500


As of December 31, 2000 the Company had available a federal
operating loss carry forward of $115,200.  This net operating
loss originated in 1992 and may be carried forward and expires
as follows:

Year of Origin   Amount      Carry Forward
                             Expires In

     1992       $115,200        2007

                $115,200


<PAGE>

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

LIQUIDITY AND CAPITAL RESOURCES

     The First Quarter of 2001 saw the Company achieve
improved financial results compared to the same period last
year. Because the recent widespread economic downturn has
reduced the new-order input rate, however, it is still too early
to say whether the Company will, in 2001, be able to achieve its
sixth consecutive year of increasing Sales and Profits. The
Company has been in a continuous, slow turnaround, starting as
far back as 1991, when financial problems almost forced it out
of business. The intervening years have seen the Company "pull
itself up by the bootstraps" in numerous ways, including:
payroll cutbacks; the sale of one of its two buildings;
consolidation of operations into its one remaining building;
favorable restructuring of its Bank debts; and, more recently,
the refinancing of the mortgage loan on its building, combined
with the clearing of a large "balloon" payment on its previous
mortgage. Also, as a requirement of the mortgage refinancing
process, the Company's property underwent an independent
appraisal that showed it to have a then-current market-value
which was $750,000 higher than the heavily-depreciated value on
its balance sheet. This suggests that the "true" Net Worth of
the Company at March 31, 2001 is approximately $1,178,400
instead of $428,400, arrived at by more conventional accounting
methods.

     Commencing in April 1999, the Company entered the five-
year pay-down phase of its $451,350 two-stage Bank loan. These
payments are in addition to the recently reduced monthly
obligations of its Deferred Compensation Agreement, effective
January 1, 1999. During both 1999 and 2000, the Company's cash
flow from operations was more than sufficient  to meet those
obligations, and Management anticipates similar results for
2001.

     As in other recent years, it was concluded by Management
that, in view of near-term cash requirements for debts and other
obligations, the expenditure of significant sums for an
"independently-audited" Year-end 2000 financial statement would
still not be prudent. Instead, as in 1999, the Company used its
non-independent accounting firm for that filing. In a related
matter, earlier in the year 2000, the Company had learned - too
late to remedy the situation - that its stock was being de-
listed by the OTC Bulletin Board, specifically because the lack
of an independently-audited year-end report meant the Company's
stock would no longer meet the Bulletin Board's recently
tightened eligibility requirements. Quotations for the Company's
stock have been reported on the "Pink Sheets" since that time.

     As the Company's financial status has continued to
improve, however, Management has seriously investigated its
options regarding the requirements for filing an independently-
audited year-end report. The Company's present accounting firm
was not considered "independent" due to the presence of one of
its partners on the Company's Board of Directors. The resignation
of that partner as a Director, in December 2000, following many
years of valuable but unpaid service, has now cleared the way
for that firm to serve as independent-auditors.   It is now the
Company's intention, in view of its improved finances, to file
an independently-audited Form 10-KSB report for the year 2001,
and to resubmit for listing on the OTC Bulletin Board, although
no assurance can be given that that organization will consider
the Company fully compliant with all of its then-current
requirements.

     Working Capital at March 31, 2001 has increased to
$1,351,100, as compared to $1,100,100 at March 31, 2000 and
$965,000 at March 31, 1999. Management is also continuing its
search for additional Working Capital to provide further growth
momentum for the Company. Contacts are always active with
several potential lenders or investors, although no assurance of
success can be given. For the immediate future, at least, the
Company is well able to support its ongoing operations.

<PAGE>

     RESULTS OF OPERATIONS

     Sales in the First Quarter of 2001 rose 12.1 percent from
the same period last year, reaching $570,300 in the current
period versus $508,700 in the First Quarter of 2000.

     Gross Profit in the First Quarter of 2001 was 35.9
percent of Sales, as compared to 33.9 percent  in the same
period last year. Selling, General and Administrative Expenses
were 22.5 percent of Sales in the First Quarter of 2001, as
compared to 20.9 percent in the First Quarter of 2000.

     In the First Quarter of 2001, the Company showed a Net
Profit from Operations of $76,700, up 16.2 percent from the
$66,000 achieved in the same period last year. After accounting
for Interest and Income Taxes, the Company showed  NET INCOME
for the period of  $59,700, an increase of  33.6 percent  from
the Net Income of $44,700 recorded in the same period last year.

     Addressing the bigger, longer-term picture, the Company
has continued to deal successfully with its debt situation, as
well as the need for currently profitable operations. The
strategy of increased outsourcing appears to be succeeding,
although at the cost of  an increased level of Raw Material and
Work-in-Process inventory. Fortunately, the Company is able to
support such increases.

     The Company is also devoting increased efforts towards
re-establishing a national Sales Representative staff and to the
upgrading of its WEB-site. These moves should lead to additional
sales for both its photovoltaic Solid State Relays and MOSFET-
drivers, although the task is made more difficult in the
currently sluggish economic environment.  As always, the risk of
failure persists, but the Company, having struggled back from
the brink of  failure,  sees that risk receding further each
year.

<PAGE>



       PART II  -  OTHER INFORMATION


Item 1.   Legal Proceedings

          None


Item 2.   Changes in Securities

          None


Item 3.   Defaults Upon Senior Securities

          None

Item 4.   Submission of Matters to a Vote
          of Security-Holders

          None


Item 5.   Other Information

          None


Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits.  There are no exhibits
               applicable to this Form 10-QSB.

          (b)  Reports on Form 8-K.  Listed below are
               Current Reports on Form 8-K filed by the
               Company during the fiscal quarter ended
               March 31, 2001:

               None

<PAGE>

                       SIGNATURES


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

                            DIONICS, INC.
                            (Registrant)


Dated: May 11, 2001         By:/s/ Bernard Kravitz
                            Bernard Kravitz,
                            President

Dated: May 11, 2001         By:/s/ Bernard Kravitz
                            Bernard Kravitz,
                            Principal Financial Officer