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 June 30, 2001


                         Commission file number 01-15109

                                CALA CORPORATION
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)


                               Oklahoma 73-1251800
                ------------------------------ ------------------
                         (State of other jurisdiction of
                        (I.R.S. Employer incorporation or
                        organization) Identification No.)


                          2 N. First Street, Suite 323
                           San Jose, California 95113
                      ------------------------------------
                    (Address of principal executive offices)

                                 (408) 984-3663
               --------------------------------------------------
              (Registrant's telephone number, including area code)



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.

         Common Stock                              49,131,637
         Par Value $0.005                     Shares outstanding as of
             per share                            June 30, 2001


Transitional Small Business Disclosure Format        Yes __    No _X_


<PAGE>


                                Cala Corporation
                           Consolidated Balance Sheets
                               As of June 30, 2001

<TABLE>
<CAPTION>
                                                   Cala            IMOIL S.R.L.   Consolidated
                                                 Corporation       (Subsidiary)        Total
ASSETS                                           ------------       ----------    ------------
<S>                                              <C>              <C>             <C>
Current Assets:
     Cash                                        $          -     $    59,133      $    59,133
     Accounts receivable                                            5,862,907        5,862,907
     Notes receivable                                  56,305               -           56,305
     Other current assets                                  -        1,142,422        1,142,422
                                                  -----------     -----------       ----------
         Total Current Assets                          56,305      14,516,232       14,572,537

Property and Equipment (net)                                        7,041,325        7,041,325

Other Assets                                                          410,445          410,445
                                                  -----------      ----------        ---------
TOTAL ASSETS                                     $     56,305     $14,516,232      $14,572,537
                                                  ===========      ==========       ==========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
     Accounts payable                             $    87,000     $ 3,625,125       $ 3,712,128
     Accrued expenses                                 180,000          30,900           210,900
     Income taxes payable                                              50,820            50,820
     Current portion of long-term debt                              2,020,646         2,020,646
     Other current liabilities                                        891,718           891,718
                                                   ----------       ---------        ----------
         Total current liabilities                    264,000       6,619,212         6,886,212

Long-term debt                                              -       3,902,229         3,902,229


Stockholders' Equity

     Common stocks                                    297,196       2,250.000         2,547,196
     Additional paid-in capital                     8,196,744         638,966         8,835,710
     Retained Earnings (deficit)                   (8,653,433)      1,105,825        (7,547,608)
         Less:  Treasury stock                        (51,202)                          (51,102)
                                                    ---------       ---------         ---------
         Total Stockholders' Equity                  (210,695)      3,994,791         3,784,096
                                                    ---------       ---------         ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $   56,305     $14,516,232       $14,572,537
                                                    =========      ==========        ==========
</TABLE>





<PAGE>


                                Cala Corporation
                        Consolidated Statement of Operations
               For the six months ended June 30, 2001 and 2000
                                    Unaudited

<TABLE>
<S>                                             <C>               <C>             <C>
                                                   Cala            IMOIL S.R.L.   Consolidated
                                                 Corporation       (Subsidiary)        Total
ASSETS                                           ------------       ----------    ------------

Sales                                              $        -     $5,911,719        $5,911,719

Cost of Sales                                               -      5.015,770         5,015,770
                                                     ---------     ---------         ---------
Gross Profit                                                -        895,949           895.949

Operating Expenses                                     86,063        607,596           693,659
                                                     --------       --------         ---------

Net income (loss)                                   $ (86,063)     $ 288,353         $ 202,290
                                                     ========       ========          ========
</TABLE>

<PAGE>



                                Cala Corporation
                             Statement of Cash Flows
                     For the six months ended June 30, 2001
                                    Unaudited


                                                                   June 30, 2001
                                                                   -------------
Cash flows from operating activities                                $   (86,063)
     Net loss

Adjustments to reconcile
     net income to net cash
  Provided by operating activities:
         Depreciation and amortization                                        -
Changes in assets and liabilities
     (Increase) decrease in:
         Accounts Receivable                                                  -
         Inventory                                                            -
 Deposits and         Organizational Costs                                    -
        Notes receivable                                                 25,695
     Increase (decrease) in
         Accounts Payable                                              (153,633)
         Accrued expenses                                                69,375
                                                                    -----------
                                                                       (144,626)
                                                                    -----------
         Net cash used by operating activities                         (144,626)
                                                                    -----------
Cash flows from investing activities
     Purchase and disposal of property/equipment
     Acquisition of other investments                                   878,952
                                                                    -----------
         Net cash used by investing activities                          878,952
                                                                    -----------
Cash flows from financing activities
     Principal payments on long term debt                              (108,499)
     Issuance of stocks                                                  53,684
     Paid in capital                                                   (790,289)
                                                                      ---------
         Net cash provided by financing activities                     (735,474)
                                                                      ---------
Net decrease/increase in cash and cash equivalents                      ( 1,148)

Cash and cash equivalents at beginning of period                          1,148
                                                                    -----------
Cash and cash equivalents at end of period                          $        -
                                                                    ===========







<PAGE>


NOTES TO FINANCIAL STATEMENTS


Item 1.  Business:

In the opinion of the Company, the accompanying unaudited financial statements
contain the adjustments (consisting of normal recurring accruals) necessary to
present the financial position as of June 30, 2001 and the results of operations
and statements of cash flows for the six months ended June 30, 2001 and it is
not necessarily indicative of the results to be expected for the full year.

A. Presentation of Prior Year Information:

   As of December 31, 2000, the Company owned and operated no businesses.

   For further discussions see form 10-KSB for December 31, 2000.

B. Accounting Policies:

During interim periods the Company follows the accounting policies set forth in
its consolidated financial statements included in its annual report on Form
10-KSB. Reference should be made to such financial statements for information on
such accounting policies and further financial details.

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

A. Operations:

On January 3, 2001, Cala Corporation announced that it had made an offer to the
Board of Directors of Mancini, I.M.O.I.L. of Italy to purchase 51% of Mancini
I.M.O.I.L. shares. Prior to the announcement, Mr. Joseph Cala returned
10,000,000 restricted shares to the treasury to be reissued to Mancini. In order
to execute a "Proposal to Merger and Purchase Stock of the Mancini, I.M.O.I.L."
letter of agreement, which called for Cala Corporation to pay 10,000,000
restricted shares good faith deposit, to be incurred in the proposed
acquisition/merger.

On January 5, 2001, Cala Corporation announced that it will move its
Headquarters to Two N. First Street , Suite 323, San Jose, California 95113.

On February 13, 2001, Cala Corporation announced that both companies "Cala &
Mancini" agreed upon a definitive full merger agreement and both companies'
attorneys would work on the legal verbiage merger terms. In addition, the
company is preparing a proxy and a shareholders meeting as soon as the Mancini
pro forma must be certified by the auditor, secondly, approved by the SEC and
lastly approved by the Cala shareholders..

On March 2001, Cala Corporation sold back its interest for the U-SEA Resort and
Casino to Cala Hotels for the same terms of its acquisition date of February
2000. The initial payment of 10,000,000 restricted shares were returned to the
treasury and the Company note to Mr. Cala was cancelled. Mr. Cala stated that
this decision was taken a) due to the consideration of the Mancini transaction,
b) it is a simpler and cleaner company to be accepted by the investment bankers,
c) after extensive research and development work on the U-Sea Resort project, to
date, there are no companies qualified to build it safely for the customers for
at least the next three years. Therefore, Mr. Cala stated that the best strategy
for the Undersea project is to develop and build entertainment themes concepts
such as U-Sea Restaurants, Lounge Bar and Casinos including, parties receptions,
such as weddings, corporate, birthdays or any special occasions.

In March 2001, the company retired all debt payments from the previous ownership
and management of CRC and Magnolia which will give a fresh start with a future
prospect of growth and profits to its shareholders.

Revenues for the six months ending June 30, 2001 were $00.00 (zero U.S.) for the
same period in 2000 the revenue was $140,289. The decrease in sales reflects the
closure of our operating business due to the Mancini merger consideration.
However, the losses for the quarter were $48,735 U.S. $242,237 for the same
quarter last year. The change was attributed to the company focusing on the
Mancini merger consideration.



<PAGE>




Part II  Other Information

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

The following exhibits are included herein:

(27)     Exhibit 27
(a)      The Company did not file any reports on Form 8-k during the quarter.




<PAGE>






                                   Signatures


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


                                             CALA CORPORATION



Date: 8/15/2001                        By:   /s/  Joseph Cala
                                            -----------------
                                                  Joseph Cala, Chairman and CEO

Signatures


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


                                             CALA CORPORATION



Date: 8/15/2001                        By:   /s/  Joseph Cala
                                            -----------------
                                                  Joseph Cala, Chairman and CEO

Signatures


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


                                             CALA CORPORATION



Date: 8/15/2001                        By:   /s/  Joseph Cala
                                            -----------------
                                                  Joseph Cala, Chairman and CEO