United States

                       Securities and Exchange Commission

                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
 EXCHANGE ACT OF 1934
                  For the quarterly period ended     September 30, 2000
                                                   --------------------

[   ]    TRANSITON REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
                  For the transition period from                        to
                                                 ----------------------

                           Commission File Number:           0-11883
                                                   -----------------

                                 TELEBYTE, INC.

        (Exact name of small business issuer as specified in its charter)

Delaware  11-2510138 (State or other jurisdiction of incorporation (IRS Employer
Identification No.)

                 or organization)

                                    270 Pulaski Road, Greenlawn, New York  11740
--------------------------------------------------------------------------------
                                       (Address of principal executive offices)

                                                     (631) 423-3232
 ------------------------------------------------------------------
                                               (Issuer's telephone number)


(Former name,former address and former fiscal year if changed since last report)

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
                              --------------

As of November  14,  2000,  there were  outstanding  1,253,631  shares of Common
Stock, $.01 par value.

Transitional Small Business Disclosure Format (check one);

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


<PAGE>




                           TELEBYTE, INC. & SUBSIDIARY

                                      INDEX

Part I            Financial Information

         Item 1.           Consolidated Financial Statements

                                    Consolidated Balance Sheet
                                    September 30, 2000 (Unaudited)

                                    Consolidated  Statements  of Earnings  Three
                                    and nine months ended September 30, 2000 and
                                    1999 (Unaudited)

                                  Consolidated Statement of Shareholders' Equity
                                    Nine months ended
                                    September 30, 2000 (Unaudited)

                                    Consolidated Statements of Cash Flows
                                    Nine months ended
                                    September 30, 2000 and 1999 (Unaudited)

                                    Notes to Consolidated Financial
                                    Statements (Unaudited)

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

Part II           Other Information


<PAGE>


Part I        Financial Information

Item 1.       Financial Statements

                           TELEBYTE, INC. & SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET

                               SEPTEMBER 30, 2000
                                   (Unaudited)

ASSETS

CURRENT ASSETS

              Cash and cash equivalents                             $   878,443
              Accounts receivable, less

                allowance for doubtful accounts                         762,866
              Inventory                                               1,548,833
              Prepaid expenses                                          114,844
              Deferred income taxes                                     135,000
                                                          ----------------------
              TOTAL CURRENT ASSETS                                    3,439,986

PROPERTY, PLANT AND EQUIPMENT, less
  accumulated depreciation and amortization                           1,129,400

OTHER ASSETS                                                            277,089
                                                          ----------------------
                                                                   $  4,846,475
                                                          ======================

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
              Accounts payable                                      $   321,814
              Accrued expenses                                          143,884
              Income taxes payable                                      160,689
              Current maturities of long-term debt                       75,120
                                                          ----------------------
              TOTAL CURRENT LIABILITIES                                 701,507

LONG-TERM DEBT, less current maturities                                 997,130

DEFERRED INCOME TAXES                                                   195,000

SHAREHOLDERS' EQUITY
              Common stock - $.01 par value; 9,000,000 shares authorized;
                1,253,631 shares issued and outstanding                  12,536
              Capital in excess of par value                          1,781,672
              Retained earnings                                       1,158,630
                                                          ----------------------
                                                                      2,952,838

                                                          ----------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                         $  4,846,475
                                                          ======================


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

<PAGE>




                           TELEBYTE, INC. & SUBSIDIARY
                       CONSOLIDATED STATEMENTS OF EARNINGS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                       Three Months                                      Nine Months
                                                    Ended September 30,                              Ended September 30,


                                                 2000                     1999                      2000                     1999
                                --------------------------   ------------------   ---------------------------  -------------------
<S>                                                 <C>                  <C>                            <C>                 <C>
NET SALES                                    $   1,621,109        $   1,415,555                 $   4,874,014        $   4,143,801

COST OF SALES                                      781,653              665,086                     2,277,947            1,964,494
                                --------------------------   ------------------   ---------------------------  -------------------
GROSS PROFIT                                       839,456              750,469                     2,596,067            2,179,307
                                --------------------------   ------------------   ---------------------------  -------------------

OPERATING EXPENSES
      Selling, G & A                               474,894              406,062                     1,384,654            1,341,702
      Research and development                     135,001              124,652                       396,940              403,539
                                --------------------------   ------------------   ---------------------------  -------------------
                                                   609,895              530,714                     1,781,594            1,745,241
                                --------------------------   ------------------   ---------------------------  -------------------

Operating Income                                   229,561              219,755                       814,473              434,066
                                --------------------------   ------------------   ---------------------------  -------------------

OTHER INCOME (EXPENSE)
    Rental Income                                   12,048               12,048                        36,146               36,146
    Interest Income                                 11,641                  873                        22,270                5,868
    Interest Expense                               (26,347)             (26,761)                      (75,578)             (87,650)
                                --------------------------   ------------------   ---------------------------  -------------------

       Earnings before income taxes                226,903              205,915                       797,311              388,430

Provision for income taxes                          81,380               77,602                       301,880              147,602
                                --------------------------   ------------------   ---------------------------  -------------------

NET EARNINGS                                    $  145,523           $  128,313                    $  495,431           $  240,828
                                ==========================   ==================   ===========================  ===================

Earnings per common share:
      Basic                                      $    0.12            $    0.10                     $    0.40            $    0.19
                                ==========================   ==================   ===========================  ===================
      Diluted                                    $    0.09            $    0.10                     $    0.31            $    0.18
                                ==========================   ==================   ===========================  ===================

Shares used in computing earnings per common share:

      Basic                                      1,253,631            1,248,631                     1,252,404            1,266,718
                                ==========================   ==================   ===========================  ===================
      Diluted                                    1,574,366            1,341,965                     1,594,512            1,310,385
                                ==========================   ==================   ===========================  ===================

</TABLE>

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


<PAGE>



                           TELEBYTE, INC. & SUBSIDIARY
                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

                      NINE MONTHS ENDED SEPTEMBER 30, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>

                                Number of                                   Capital in
                                  shares               Common               excess of               Retained
                                  issued                stock                par value               earnings              Total
                                 -------               ------               ----------              --------               -----
<S>                                 <C>                   <C>                   <C>                     <C>                 <C>
Balance at January 1, 2000      1,248,631       $       12,486       $      1,740,472        $       663,199          $  2,416,157

Common stock issued for purchase
     of intangibles                 5,000                   50                 41,200                                       41,250
Net earnings                                                                                          495,431              495,431
                                   -                     -                    -
                            -------------------   ------------------   ---------------------   --------------------  --------------

Balance at September 30, 2000    1,253,631       $       12,536       $      1,781,672        $    1,158,630          $  2,952,838
                            ===================   ==================   =====================   ====================  ==============

</TABLE>


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


<PAGE>


                           TELEBYTE, INC. & SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                                           Nine Months
                                                                                                       Ended September 30,
                                                                                      --------------------------- ------------------

                                                                                                 2000                    1999
                                                                                      --------------------------- ------------------
<S>                                                                                              <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
        Net earnings                                                                      $    495,431             $240,828
     Adjustments to reconcile net earnings to
        net cash provided by operating activities:
              Depreciation and amortization                                                    206,314              113,082
              Decrease (increase) in operating assets:
                Accounts receivable                                                             96,051             (23,612)
                Inventories                                                                    (29,556)            (171,934)
                Prepaid expenses and other                                                     (43,511)               28,274
                Increase (decrease) in operating liabilities:
                Accounts payable                                                                49,298             (61,958)
                Accrued expenses and taxes                                                     (24,389)              192,869
                                                                                      --------------------------- ------------------

              Net cash provided by operating activities                                        749,638              317,549
                                                                                      --------------------------- ------------------

CASH FLOWS FROM INVESTING ACTIVITIES
     Additions to property and equipment                                                       (98,253)             (66,499)

     Purchase of intangibles                                                                  (110,000)                 -
     Cost of non-compete agreement                                                              -                  (203,124)
                                                                                      --------------------------- ------------------

              Net cash used in investing activities                                           (208,253)            (269,623)
                                                                                      --------------------------- ------------------

CASH FLOWS FROM FINANCING ACTIVITIES
     Principal payments under mortgage obligation                                              (49,423)             (46,775)
     Net borrowings under debt obligations                                                      15,954              217,178
     Purchase of treasury stock                                                                 -                  (927,430)
     Proceeds from exercise of stock options                                                    -                     3,950
                                                                                      --------------------------- ------------------

              Net cash used in financing activities                                            (33,469)            (753,077)
                                                                                      --------------------------- ------------------

              Net increase (decrease) in cash and cash equivalents                             507,916            (705,151)

Cash and cash equivalents at beginning of period                                               370,527              919,630
                                                                                      --------------------------- ------------------

Cash and cash equivalents at end of period                                             $       878,443            $ 214,479
                                                                                      =========================== ==================

Non cash financing activities
     Issuance of common stock and note payable for purchase of
          intangibles                                                                  $         60,825

</TABLE>

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



<PAGE>

                           TELEBYTE, INC. & SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

1.       CONSOLIDATED FINANCIAL STATEMENTS

The  consolidated  balance  sheet as of  September  30, 2000,  the  consolidated
statement of earnings,  stockholders'  equity and cash flows for the  nine-month
and  three-month  periods then ended have been prepared by us without audit.  In
the opinion of management,  all adjustments (which include only normal recurring
accrual  adjustments)  necessary  to present  fairly,  the  financial  position,
results of operations and cash flows as of September 30, 2000 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. It is suggested that these financial  statements
be read in conjunction with the financial  statements and notes thereto included
in our Annual  Report to  Shareholders  for the fiscal year ended  December  31,
1999. The results of operations for the period ended  September 30, 2000 are not
necessarily indicative of the operating results for the full year.

2.       EARNINGS PER SHARE

The numbers of shares used in the Company's basic and diluted earnings per share
computations are as follows:

<TABLE>
<CAPTION>
                                                                         Three Months                 Nine Months
                                                                      Ended September 30,         Ended September 30,
                                                                 ----------------------------------------------------------
                                                                      2000           1999          2000          1999
                                                                 ----------------------------------------------------------
<S>                                                                       <C>            <C>           <C>          <C>
Weighted average common shares outstanding
   for basic earnings per share                                        1,253,631     1,248,631     1,252,404     1,266,718

Common stock equivalents for stock options                               320,735        93,334       342,108        43,667
                                                                        -----------    ------       -------        ------

Weighted average common shares outstanding
   for diluted earnings per share                                      1,574,366     1,341,965     1,594,512     1,310,385
                                                                       =========     =========     =========     =========

</TABLE>



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

When used herein,  the words "believe,"  "anticipate,"  "think," "intend," "will
be," "expect" and similar expressions identify forward-looking statements within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
statements are not guarantees of future  performance  and involve  certain risks
and  uncertainties  discussed herein and under the caption "Risk Factors" in our
Annual  Report on Form 10-K for the year ended  December 31,  1999,  which could
cause  actual  results to differ  materially  from those in the  forward-looking
statements.   Readers  are  cautioned  not  to  place  undue   reliance  on  the
forward-looking statements,  which speak only as of the date hereof. Readers are
also urged carefully to review and consider the various  disclosures  made by us
which  attempt to advise  interested  parties of the  factors  which  affect our
business,  including, without limitation, the disclosures made under the caption
"Management's Discussion and Analysis or Plan of Operation." All references to a
fiscal year are to our fiscal year, which ends December 31.

RESULTS OF OPERATIONS

Sales  during the third  quarter  ended  September  30,  2000  increased  15% to
$1,621,109  compared to sales of  $1,415,555  for the same  period in 1999.  The
increase  in sales was  primarily  due to an  increase  in sales of our  Digital
Subscriber Line (DSL) Test Equipment.

Cost of sales for the third  quarter of $781,653  (or 48.2% of sales)  increased
compared to the $665,086 (or 47.0% of sales) during the same period in 1999. The
decrease in our profit  margin  percentage  was  primarily a function of product
mix.

Selling,  general  and  administrative  costs for the third  quarter of $474,894
increased  by  $68,832  from  $406,062  during the third  quarter  of 1999.  The
increase  during the third  quarter was due  primarily  to expenses  incurred by
Nextday.com,  a  wholly  owned  e-commerce  subsidiary,  and  promotion  of  the
Company's DSL product line. In particular,  the Company  participated  at DSLcon
'00 Asia held in Hong Kong and DSLcon '00 Fall held in Boston.  Also  during the
third quarter,  the Company  announced the  appointment of Mr. Jim Wright as its
new Vice President,  Chief Marketing Officer of Broadband  Products.  Mr. Wright
will lead the  Company's  program  in  marketing  DSL test  equipment  and other
Broadband  Products.  Mr.  Wright  has  more  than 30  years  experience  in the
telecommunications  industry,  including  most  recently  as General  Manager of
Consultronics,  Inc., a leading  supplier of broadband test equipment  including
local loop simulators.

Research and development expenses for the third quarter of $135,001 increased by
$10,349 from $124,652 during the same quarter in 1999. During the third quarter,
we continued the development of our Universal  Serial Bus (USB) product line and
expect to introduce  our first USB products  during the fourth  quarter of 2000.
The USB products that should be introduced in the fourth quarter of 2000 include
a USB-to-EIA 232 converter, a USB-to-RS 422 converter, a USB-to-RS 485 converter
and a USB-to-Fiber  converter.  During the third quarter,  the Company completed
the development of a multi-line  wire line  simulator,  the Model 458, which can
simulate  up to 16 local loops up to 20,500  feet each.  The Company  expects to
begin shipping the model 458 during the fourth quarter of 2000.

Interest  income  increased to $11,641 during the third quarter of 2000 compared
to $873 for the same period in 1999.  This  increase in interest  income was due
primarily to higher levels of cash on deposit. During the third quarter of 2000,
we had rental income of $12,048,  which was in line with the comparable  quarter
of 1999.

The effective tax rate in third quarter of 2000 was 35.9%,  compared with 37.7 %
in same quarter in 1999.

The net earnings of $145,523 or $.09 diluted per share for the third  quarter of
2000  increased  13.4%  compared to the net earnings of $128,313 or $.10 diluted
per  share in the same  quarter  in  1999.  The  increase  in  profitability  is
attributed to the increase in sales during the third quarter of 2000.

<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating  activities  for the nine months ended  September
30,  2000 was  $749,638  compared  to net cash  provided of $317,549 in the same
period of 1999. This change was due primarily to an increase in net earnings.

Working  capital  increased as of September  30, 2000 by $471,522 to  $2,738,479
compared  with  $2,266,957  from  December  31,  1999.  The current  ratio as of
September  30, 2000  increased  to 4.90:1  compared to 4.37:1 as of December 31,
1999.

We have an agreement with a financial institution, which provides us with a line
of  credit of up to  $500,000  based on our  eligible  accounts  receivable  and
purchased components and materials and finished goods inventories, as defined in
the agreement.  Further, the agreement contains certain financial covenants that
require  us to  maintain  a minimum  level of  tangible  net  worth  and  places
limitations on the ratio of our total debt to our tangible net worth, as defined
in the  agreement.  Borrowings  under the line of credit  bear  interest  at the
bank's  specified  prime rate plus .75%.  There was no outstanding  indebtedness
under this line of credit as of September 30, 2000.

In January 1999, we secured an additional reducing revolving line of credit from
the same  institution  that  provides for initial  borrowings up to a maximum of
$1,000,000.  Availability  under the reducing revolving line of credit decreases
by  approximately  $11,900  per  month,  and  the  line  expires  January  2006.
Availability  under  this  line  at of  September  30,  2000  was  approximately
$524,000.  Borrowings  under this loan  agreement  bear  interest  at the 30-Day
Commercial  Paper  Rate plus  2.90%.  Net  borrowings  under this line of credit
totaled $237,895 at September 30, 2000.

We  believe  that  cash  generated  by our  operations,  current  cash  and cash
equivalents,  and the lines of credit should supply sufficient cash resources to
meet our cash needs for the next 12 months.

<PAGE>



PART II -- OTHER INFORMATION

Item 1.           Legal Proceedings

         Not applicable.

Item 2.           Changes in Securities

         Not applicable.

Item 3.           Defaults Upon Senior Securities

         Not applicable.

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

         Not applicable.

Item 5.           Other Information

         Not applicable.

Item 6.           Exhibits and Reports on Form 8-K

         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.

TELEBYTE, INC.



By:      __________\s\_________________
         Kenneth S. Schneider
         Chairman of the Board
         (Principal Executive Officer)


By:      ___________\s\________________
         Michael Breneisen
         President

         (Principal Financial and Accounting Officer)


Date:    November 14, 2000