FOUNTAIN POWERBOAT INDUSTRIES, INC.

                                 FORM 10-Q

                             QUARTERLY REPORT

                   FOR THE QUARTER ENDED MARCH 31, 2001


                    SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, DC  20549


                                 FORM 10-Q

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


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

               For the quarterly period ended MARCH 31, 2001

                                    OR

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

         For the transition period from __________ to ___________

                      Commission File Number: 0-14712


                    FOUNTAIN POWERBOAT INDUSTRIES, INC.
          (Exact name of registrant as specified in its charter)

          Nevada                             56-1774895
     (State of other jurisdiction of      (I.R.S. Employer
     incorporation or organization)       Identification No.)


Whichard's Beach Road, P.O. Drawer 457, Washington, NC 27889
                 (Address of principal executive offices)

Registrant's telephone no., including area code:(252)975-2000

 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  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

 Indicate the number of shares outstanding of each of the issuer's  classes
 of common stock as of the latest practicable date.
         Class                    Outstanding at April 23,2001
 Common Stock, $.01 par value           4,732,608 Shares


<PAGE>


            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                              INDEX


PART I.   Financial Information.                              Page No.

      Review Report of Independent Certified
        Public Accountants...........................              4

      Consolidated Condensed Balance Sheets
        March 31, 2001 and June 30,2000..............            5-6

      Consolidated Condensed Statements of Operations -
        Three and Nine Months Ended March 31,2001
        and March 31,2000.............................             7

      Consolidated Condensed Statements of Cash Flows -
        Nine Months Ended March 31,2001
        and March 31,2000............................            8-9

      Notes to Consolidated Condensed Financial Statements ....10-13

      Management's Discussion and Analysis of
        Results of Operations and Financial Condition......    14-16



PART II.  Other Information.

Item 6.   Exhibits and Reports on Form 8 and Form 8-K.......     16


          Signature........................................      17



<PAGE>






To the Board of Directors
FOUNTAIN POWERBOAT INDUSTRIES, INC.
Washington, North Carolina


We  have  reviewed the accompanying consolidated balance sheet of  Fountain
Powerboat Industries, Inc. and Subsidiary as of March  31,  2001,  and  the
related  consolidated statements of operations and cash flows for the three
and nine months then ended. We conducted  our  review  in  accordance  with
Standards established  by  the  American  Institute  of  Certified   Public
Accountants.  All information included in these financial statements is the
representation of the management of Fountain Powerboat Industries, Inc.

A  review of interim financial information consists principally of applying
analytical  procedures to financial data and making  inquiries  of  Company
personnel  responsible  for  financial  and  accounting  matters.   It   is
substantially  less  in scope than an audit conducted  in  accordance  with
generally  accepted  auditing standards, 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 consolidated financial statements referred to  above
for them to be in conformity with generally accepted accounting principles.






/S/PRITCHETT, SILER & HARDY, P.C.
PRITCHETT, SILER & HARDY, P.C.


May 3, 2001
Salt Lake City, Utah


4
<PAGE>




            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                   CONSOLIDATED CONDENSED BALANCE SHEETS
                                (Unaudited)


                                  ASSETS






                                         March 31,     June 30,
                                            2001         2000
                                        ___________   ___________
CURRENT ASSETS:
  Cash and cash equivalents             $   243,542   $ 1,983,439
  Accounts receivable, net                  978,523     1,701,643
  Inventories                             5,864,817     7,880,136
  Prepaid expenses                          575,801       574,615
  Current deferred tax assets             1,437,911     1,481,666
  Deferred cost of sales                     64,678             -
                                        ___________   ___________
     Total Current Assets                 9,165,272    13,621,499
                                        ___________   ___________
PROPERTY, PLANT AND EQUIPMENT            39,000,256    37,686,040


  Less:  Accumulated depreciation       (19,857,838) (18,752,789)
                                        ___________   __________
                                         19,142,418   18,933,251
                                        ___________   __________

OTHER ASSETS                                961,947      876,334
                                        ___________   ___________
TOTAL ASSETS                            $29,269,637   $33,431,084
                                        ___________   ___________









The accompanying notes are an integral part of these financial statements.

5
<PAGE>








            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

                   CONSOLIDATED CONDENSED BALANCE SHEETS
                                (Unaudited)


                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                [Continued]


                                         March 31,     June 30,
                                            2001         2000
                                        ___________   ___________
CURRENT LIABILITIES:
  Current maturities - long-term debt   $ 2,562,465   $ 2,613,534
  Current maturities - capital lease         13,989        12,999
  Accounts payable                        5,083,408     4,993,717
  Accrued expenses                        1,639,318     2,504,603
  Dealer territory service accrual        1,092,663       907,230
  Customer deposits                          55,278       322,040
  Deferred sales                            167,174             -
  Allowance for boat repurchases            200,000       200,000
  Reserve for warranty expense              590,000       590,000
                                        ___________   ___________
     Total Current Liabilities           11,404,295    12,144,123

LONG-TERM DEBT, less current portion      5,352,311     8,151,546
CAPITAL LEASE, less current maturities       62,950        63,940
DEFERRED TAX LIABILITY                      904,415     1,180,817

COMMITMENTS AND CONTINGENCIES [NOTE 6]            -             -
                                        ___________   ___________

  Total Liabilities                      17,723,971    21,540,426
                                        ___________   ___________

STOCKHOLDERS' EQUITY:
  Common stock, $.01 par value,
    200,000,000 shares authorized,
    4,732,608 shares issued                  47,326        47,326
  Additional paid-in capital             10,303,640    10,303,640
  Retained earnings                       1,305,448     1,650,440
                                        ___________   ___________
                                         11,656,414    12,001,406
  Less: Treasury stock                     (110,748)     (110,748)
                                        ___________   ___________
       Total Stockholders' Equity        11,545,666    11,890,658
                                        ___________   ___________
                                        $29,269,637   $33,431,084
                                        ___________   ___________


The accompanying notes are an integral part of these financial statements.

6
<PAGE>



            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
              CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                (Unaudited)


                             For The Three    For The Nine Months
                             Months Ended            Ended
                               March 31             March 31
                       ______________________ ________________________
                          2001       2000         2001       2000
                       __________ ___________  ___________ ___________
NET SALES              $9,966,147 $14,306,940  $32,491,111 $40,486,130

COST OF SALES           7,960,103  11,789,264   27,557,859  32,607,955
                       __________ ___________  ___________ ___________
  Gross Profit          2,006,044   2,517,676    4,933,252   7,878,175
                       __________ ___________  ___________ ___________
EXPENSES
  Selling Expense       1,313,178   1,941,220    4,225,376   5,160,257
  Selling expense -
   related parties         38,692           -      196,067           -
  General &
   Administrative         491,473     699,508    1,969,170   2,305,590
                       __________ ___________  ___________ ___________

     Total Expenses     1,843,343   2,640,728    6,390,613   7,465,847
                       __________ ___________  ___________ ___________


OPERATING INCOME (LOSS)   162,701    (123,052)  (1,457,361)    412,328
                       __________ ___________  ___________ ___________
NON-OPERATING
 INCOME/(EXPENSE)
   Other income            16,867   1,100,818    1,654,400   1,146,379
   Interest expense      (125,548)   (249,694)    (656,216)   (777,180)
                       __________ ___________  ___________ ___________

INCOME (LOSS) BEFORE TAX   54,020     728,072     (459,177)    781,527

CURRENT TAX EXPENSE             -     184,612            -     184,612

DEFERRED TAXES (BENEFIT)   64,649     (14,733)    (114,186)     27,067
                       __________ ___________  ___________ ___________
NET INCOME (LOSS)         (10,629)    558,193     (344,991)    569,848
                       __________ ___________  ___________ ___________
EARNINGS (LOSS) PER
 SHARE                      (.002)       .118        (.073)       .120
                       __________ ___________  ___________ ___________
WEIGHTED AVERAGE
 SHARES OUTSTANDING     4,732,608   4,732,608    4,732,608   4,732,608
                       __________ ___________  ___________ ___________

DILUTED EARNINGS PER
 SHARE                        N/A         N/A          N/A         N/A
                       __________ ___________  ___________ ___________
DILUTED WEIGHTED AVERAGE
 SHARES OUTSTANDING           N/A         N/A          N/A         N/A
                       __________ ___________  ___________ ___________

7
<PAGE>


            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                    Nine Months Ended March 31,
                                       2001            2000
                                    ___________  _____________
  CASH FLOWS FROM OPERATING
  ACTIVITIES:
   Net Income (Loss)                $  (344,991) $     569,848

  Adjustments to reconcile net
   income (loss) to net
     Cash provided by operating
       activities:
        Depreciation Expense          1,718,518      1,747,766
        Gain on sale of fixed
         assets                        (500,446)             -
         Net deferred taxes            (232,647)        27,067
         Change in assets and
           liabilities:
         (Increase) decrease in
           accounts receivable          723,120     (1,095,333)
         (Increase) decrease in
           inventory                  2,015,319     (1,887,533)
         (Increase) decrease in
           prepaid expenses              (1,186)       260,749
          Increase (decrease) in
           deferred sales               102,496              -
          Increase (decrease) in
            accounts payable             89,691      1,069,294
          Increase (decrease) in
            accrued expenses           (865,285)      (185,516)
          Increase (decrease) in
            dealer territory                  -       (561,481)
          Service accrual               185,433              -
          Increase (decrease) in
            customer deposits          (266,762)       (43,014)
                                    ___________  _____________
               Net Cash Provided
                 by (Used in)Operating
                 Activities         $ 2,623,260  $   (  98,153)
                                    ___________  _____________

  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property plant
      and equipment                  (3,178,160)      (713,066)
    Proceeds from sale of fixed
      assets                          1,750,920              -
   (Increase) in other assets           (85,612)       (89,823)
                                    ___________  _____________
               Net Cash Provided
                 by (Used) Investing
                 Activities         $(1,512,852) $    (802,889)
                                    ___________  _____________

  CASH FLOWS FROM FINANCING ACTIVITIES:
    Repayment of long-term debt      (2,850,305)    (1,165,259)
                                    ___________  _____________
               Net Cash Provided by
                (Used in) Financing
                 Activities         $(2,850,305) $  (1,165,259)
                                    ___________  _____________

  Net increase (decrease)in cash    $(1,739,897) $  (2,066,301)

  Cash and Cash Equivalents at
    beginning of year               $ 1,983,439  $   2,217,301
                                    ___________  _____________

  Cash and Cash Equivalents at end
  of period                         $   243,542  $     151,000
                                    ___________  _____________



                                [Continued]

8
<PAGE>



            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY

              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                [Continued]


                                    For the Nine Months Ended
                                             March 31,
                                    __________________________
                                        2001          2000
                                    ____________  _____________
Supplemental Disclosures of Cash Flow Information:
  Cash paid during the period for:
      Interest                      $    596,423  $     789,270
      Income Taxes                             -              -


Supplemental Disclosures of Non-Cash Investing and Financing Activities:
  For the nine month period ended March 31, 2001:
     None

  For the nine month period ended March 31, 2000:
     None



















The accompanying notes are an integral part of these financial statements.


9
<PAGE>



            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                     (Unaudited)

           NOTES TO CONSOLIDATED CONDENSED  FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

Although  these  statements have been reviewed by our  independent  auditors,
they  are  unaudited.  In the opinion of management, all  adjustments  (which
include  only normal recurring adjustments) necessary to present  fairly  the
financial  position, results of operations and cash flows at March  31,  2001
and for all periods presented have been made.

Certain  information and footnote disclosures normally included in  financial
statements   prepared  in  accordance  with  generally  accepted   accounting
principles  have  been condensed or omitted for purposes  of  filing  interim
financial  statements  with the Securities and Exchange  Commission.   It  is
suggested  that  these condensed financial statements be read in  conjunction
with  the Company's June 30, 2000 audited financial statements.  The  results
of  operations  for  the  period  ended March  31,  2001  and  2000  are  not
necessarily indicative of the operating results for the full year.

NOTE 2 - HURRICANE

During  September  1999,  the Company experienced  flooding  and  temporary
closure  of the production facility as a result of hurricanes "Dennis"  and
"Floyd" hitting Eastern North Carolina.  As a result of the hurricanes, the
Company  sustained damages to inventory and property, plant and  equipment,
including  damages to the yacht mold as well as lost revenue and additional
expenses from the business interruption.

The  Company  also  experienced losses resulting from the  closure  of  the
production facility and efficiencies due to storm preparation, cleanup  and
the  inability of the full work force to report to work once the plant  re-
opened.  The Company immediately filed its claims for business interruption
and believed it complied with all aspects of its policy.

As  of  June 30, 2000, the insurance carriers had paid $1,783,618 in claims
and  in  October,  2000, paid an additional $1,350,000 in  full  and  final
payment of all claims.


10
<PAGE>



            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                     (Unaudited)

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - ACCOUNTS RECEIVABLE

  As  of  March  31,  2001,  accounts receivable were  $978,523  net  of  the
allowance  for bad debts of $27,841.  This represents a decrease of  $723,119
from the $1,701,643 in net accounts receivable recorded at June 30, 2000.  Of
the  $978,524  balance  at  March 31, 2001, $793,072  has  subsequently  been
collected as of April 25, 2001, and the remaining $185,472 is believed to  be
fully collectible.

NOTE 4 - INVENTORIES

  Inventories at March 31, 2001 and June 30, 2000 consisted of the following:

                                           March 31,        June 30,
                                             2001             2000
                                         ___________      ___________
Parts  and  supplies.....................$ 3,443,889      $ 3,402,176
Work-in-process..........................  2,125,101        3,743,713
Finished goods...........................    270,961          716,304
Sportswear...............................    174,866          167,943
Obsolete inventory reserve...............   (150,000)        (150,000)
                                         ___________      ___________
          Total..........................$ 5,864,817      $ 7,880,136

                                         ===========      ===========


NOTE 5 - REVENUE RECOGNITION

The  Company generally sells boats only to authorized dealers and to the U.S.
Government.  A sale is recorded when a boat is shipped to a dealer or to  the
Government, legal title and all other incidents of ownership have passed from
the Company to the dealer or to the Government, and an account receivable  is
recorded or payment is received from the dealer, from the Government, or from
the  dealer's  third-party commercial lender.  This is the  method  of  sales
recognition in use by most boat manufacturers.

The  Company has developed criteria for determining whether a shipment should
be recorded as a sale or as a deferred sale (a balance sheet liability).  The
criteria  for  recording  a sale are that the boat  has  been  completed  and
shipped  to a dealer or to the Government, that title and all other incidents
of ownership have passed to the dealer or to the Government, and that
there  is no direct or indirect commitment to the dealer or to the Government
to  repurchase  the boat or to pay floor plan interest for the dealer  beyond
the normal, published sales program terms.


11
<PAGE>



            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                     (Unaudited)

           NOTES TO  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

NOTE 5 - REVENUE RECOGNITION [Continued]

The sales incentive floor plan interest expense for each individual boat sale
is  accrued for the maximum six-month (180 days) interest payment  period  in
the  same  fiscal accounting period that the related boat sale  is  recorded.
The  entire six months' interest expense is accrued at the time of  the  sale
because  the Company considers it a selling expense.  The amount of  interest
accrued  is  subsequently adjusted to reflect the actual number  of  days  of
remaining  liability  for  floor  plan  interest  for  each  individual  boat
remaining in the dealer's inventory and on floor plan.

Presently,  the  Company's normal sales program provides for the  payment  of
floor  plan  interest on behalf of its dealers for a maximum of  six  months.
The  Company  believes  that this program is currently competitive  with  the
interest  payment programs offered by other boat manufacturers, but may  from
time  to  time adopt and publish different programs as necessary in order  to
meet competition.

NOTE 6 - COMMITMENTS AND CONTINGENCIES

Manufacturer  Repurchase  Agreements - The Company  makes  available  through
third-party  finance companies floor plan financing for many of its  dealers.
Sales  to  participating  dealers  are approved  by  the  respective  finance
companies.  If a participating dealer does not satisfy its obligations  under
the  floor  plan financing agreement in effect with its commercial  lender(s)
and  boats are subsequently repossessed by the lender(s), then under  certain
circumstances the Company may be required to repurchase the repossessed boats
if  it has executed a repurchase agreement with the lender(s).   At March 31,
2001, the Company had a total contingent liability to repurchase boats in the
event  of  dealer  defaults  and if repossessed  by  the  commercial  lenders
amounting to approximately $24,113,898.  The Company has reserved for  future
losses  it  might incur upon the repossession and repurchase  of  boats  from
commercial  lenders.   The amount of the allowance  is  based  upon  probable
future  events,  which can be reasonably estimated. At March  31,  2001,  the
allowance for boat repurchases was $200,000.

Dealer  Interest - The Company regularly pays a portion of dealers'  interest
charges  for  floor  plan  financing for up to six  months.   These  interest
charges  amounted  to  approximately $836,490 for the first  nine  months  of
Fiscal  2001 and are included in the accompanying consolidated statements  of
operations  as  part  of selling expense.  At March 31, 2001,  the  estimated
unpaid   dealer   incentive  interest  included  in  accrued   expenses   was
$341,411.


12
<PAGE>




            FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
                                (Unaudited)

           NOTES TO  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

NOTE 7 - TRANSACTIONS WITH RELATED PARTIES

At March 31, 2001, the Company had receivables from and advances to
employees of the Company amounting to $12,396.

The Company paid or has accrued during the first nine months of Fiscal
2001, $15,334 for apartment rentals to Eastbrook Apartments and Village
Green Apartments which are entities owned by Mr. Fountain.  The rentals are
primarily for temporary lodging for relocating and transient Company
personnel and visitors.

The Company paid or has accrued $196,067 for the nine month period ended
March 31, 2001, for advertising and public relations services from an
entity owned by a director of the Company.

NOTE 8 - INCOME TAXES

The  Company  accounts  for  income taxes in  accordance  with  Statement  of
Financial  Accounting  Standards ("SFAS") No. 109.   SFAS  109  requires  the
Company  to  provide  a  net deferred tax asset or  liability  equal  to  the
expected  future  tax  benefit or expense of temporary reporting  differences
between  book  and  tax accounting and any available operating  loss  or  tax
credit carry forwards.

For the nine month period ended March 31, 2001, the Company provided $ 0  for
current income taxes and a benefit of $(114,186) for deferred income taxes.

NOTE 9 - EARNINGS (LOSS) PER SHARE

The  computation of earnings (loss) per share and diluted earnings (loss) per
share  amounts  are  based upon the weighted average  number  of  outstanding
common  shares  during  the  periods, plus, when their  effect  is  dilutive,
additional  shares  assuming the exercise of certain  vested  stock  options,
reduced  by  the number of shares which could be purchased from the  proceeds
from the exercise of the stock options assuming they were exercised.  Diluted
earnings (loss) per share for the nine month period ended March 31, 2001  and
2000, was not presented, as its effect was anti-dilutive.

Income from continuing operations (Numerator) $ (344,991)

Weighted average shares outstanding (Denominator) 4,732,608

At March 31, 2001, the Company had 526,000 unexercised stock options of which
505,000  were held by officers and directors of the Company at prices ranging
from  $3.1875 to $5.50 per share that were not included in earnings per share
because their  effect was anti-delutive.

13

<PAGE>



Management's Discussion and Analysis of Results of Operations
  and Financial Condition

Results of Operations.

The  income from operations for the third quarter ended March 31,  2001,  was
$162,701 or $.034 per share versus an operating loss of $(123,052) or $(.026)
per share for the corresponding period of the previous year. Operating income
as  a  percent of sales for the third quarter of Fiscal 2001 was 1.6%  versus
operating  loss  as  a  percent of sales of (0.9)% for the  same  period  the
previous Fiscal year.  The net loss for the third quarter of Fiscal 2001  was
$(10,629)  or  $(.002) per share.  This compares to net profit  amounting  to
$558,193, or $.12 per share for the third quarter of Fiscal 2000.

Net sales were $9,966,147 for the third quarter of Fiscal 2001 as compared to
$14,306,940  for  the  third quarter of the prior Fiscal  year.   Unit  sales
volume  for the third quarter of Fiscal 2001 was 72 boats as compared to  111
boats  for  the third quarter of Fiscal 2000.  Although the Company continued
to  maintain  a backlog of orders during the period, it was affected  by  the
slowdown in the marine industry and the bankruptcy of a major engine and boat
builder.   Retail sales were down industry wide, as reported by the  National
Marine  Manufacturers Association, resulting in large dealer  inventories  of
boats  from other manufacturers and this reduced the availability  of  dealer
floor  plan  credit.  The Company had orders from dealers  for  product,  but
could not build or ship because of the lack of dealer credit.  Dealers expect
the warmer weather and the interest rate reductions will improve retail sales
in the 4th quarter of Fiscal 2001.

The  Company believes the new line of wide beam cruisers and fish boats,  the
favorable magazine reviews the wide beam boats have received, and the changes
made  in  sales management, will generate additional sales revenue  and  will
increase the dealer base for its boats.

For  the  third  quarter  of  Fiscal 2001, the  gross  margin  on  sales  was
$2,006,044 (20.1%) as compared to $2,517,676 (17.6%) for the third quarter of
Fiscal  2000.   The low sales volume, product mix and the start  up  learning
costs  of  the new product had the most significant effect on margins.   Cost
reduction   efforts  in  employee  costs,  maintenance,  and   research   and
development  were  not  enough to offset the increased  costs  of  insurance,
volume and the margin on the product mix.

Selling  expenses  were $1,351,870 for the third quarter of  Fiscal  2001  as
compared   to  $1,941,220  for  the  third  quarter  of  last  Fiscal   year.
Advertising, boat show expense, and racing expense were reduced  a  total  of
52%  in  the  third quarter of fiscal year 2001 versus the third  quarter  of
fiscal year 2000.

General  and administrative expenses were $491,473 for the third  quarter  of
Fiscal  2001  as  compared to $699,508 for the third quarter of  last  Fiscal

14
<PAGE>


year.  An employment tax adjustment in tax allocation between production  and
administration departments reduced tax expense for G & A.  The  sale  of  the
Company   airplane  in  December,  2000  eliminated  airplane   expense   and
contributed to a 66% reduction of total travel expense compared to the  third
quarter of Fiscal 2000.


Interest  expense  for  the  third quarter of Fiscal  2001  was  $125,548  as
compared  to  $249,694 for the third quarter of last Fiscal  year.   Interest
expense  is down due to an overall reduction in long-term debt and the  early
payment  on one of the notes resulting from the sale of the Company  airplane
in December, 2000.

Other non-operating (income)/expense for the third quarter of Fiscal 2001 was
$16,867  of income as compared to $1,100,818 of income for the third  quarter
of  last Fiscal year. Substantially all of the increase last year is  due  to
the  receipt  of  a partial payment from our business interruption  insurance
carrier resulting from the 1999 hurricanes.

Financial Condition.

The  Company's  cash  flows  for the nine months ended  March  31,  2001  are
summarized as follows:

Net cash provided by operating activities...........     $ 2,623,260
 "   " used by investing activities  ...............      (1,512,852)
 "   " used by financing activities  ...............      (2,850,305)

          Net   decrease  in  cash..................     $(1,739,897)
                                                         ===========

This  net decrease compared to a $(2,066,301) net decrease for the first nine
months of the prior fiscal year.

Cash  used  in  the  first nine months of Fiscal 2001 to  acquire  additional
property, plant, and equipment (investing activity) amounted to $3,178,160 of
which  $2,967,867  was for plugs, molds, and other product tooling.  Proceeds
from  the  sale  of  the Company airplane and other assets reduced  investing
activities by $1,750,920.

Cash  was  used in financing activities to pay off the notes secured  by  the
airplane and to pay the current portion of  long-term debt.

For  the remainder of Fiscal 2001 and beyond, the Company expects to generate
sufficient  cash  through  operations to  meet  its  needs  and  obligations.
Management  believes  the  introduction of the wide  beam  cruisers  and  the
expansion  of the wide beam fish boat line will increase sales and production
volume  and  the corresponding reduction in tooling costs as the new  product
enters production, will generate a positive cash flow.  Most of the Company's
cash  resources  will be used to build customer ordered boats,  maintain  its
plant and equipment, and reduce accounts payable.


15
<PAGE>

Cautionary Statement for Purposes of "Safe Harbor" Under the
Private Securities Reform Act of 1995.


The  Company may from time to time make forward-looking statements, including
statements  projecting, forecasting, or estimating the Company's  performance
and  industry  trends.   The  achievement of the projections,  forecasts,  or
estimates  contained  in these statements is subject  to  certain  risks  and
uncertainties, and actual results and events may differ materially from those
projected, forecasted, or estimated.

The  applicable risks and uncertainties include general economic and industry
conditions  that affect all businesses, as well as matters that are  specific
to  the  Company and the markets it serves.  For example, the achievement  of
projections,  forecasts,  or estimates contained in  the  Company's  forward-
looking  statements  may  be impacted by national and international  economic
conditions; compliance with governmental laws and regulations; accidents  and
acts of God; and all of the general risks associated with doing business.

Risks  that are specific to the Company and its markets include but  are  not
limited  to  compliance  with increasingly stringent environmental  laws  and
regulations; the cyclical nature of the industry; competition in pricing  and
new product development from larger companies with substantial resources; the
concentration of a substantial percentage of the Company's sales with  a  few
major  customers, the loss of, or change in demand from, any of  which  could
have  a material impact upon the Company; labor relations at the Company  and
at  its  customers and suppliers; and the Company's single-source supply  and
just-in-time   inventory  strategies  for  some  critical  boat   components,
including  high performance engines, which could adversely affect  production
if  a  single-source supplier is unable for any reason to meet the  Company's
requirements on a timely basis.


PART II.  Other Information.


ITEM 6:   Exhibits and Reports on Form 8 and Form 8-K.

          (a) No Exhibits

          (b) No Current Reports on Form 8-K were filed by the Registrant
          during the first nine months of Fiscal 2001.





16
<PAGE>




                                 SIGNATURE


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


                    FOUNTAIN POWERBOAT INDUSTRIES, INC.
                               (Registrant)





By: /S/DAVID A. SIMMONS                       Date: May 11, 2001
    ___________________                             ____________
    David A. Simmons
    Chief Financial Officer
    and Designated Principal
    Accounting Officer