FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

(Mark One)

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

     For the transition period from ___________________ to _________________

     Commission File Number 1-9477

                                    Joule Inc
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                 Delaware                            22-2735672
     -------------------------------     ---------------------------------
     (State or other jurisdiction of     (IRS Employer Identification No.)
     incorporation or organization)

                  1245 Route 1 South, Edison, New Jersey 08837
                  --------------------------------------------
                    (Address of principal executive officers)
                                   (Zip Code)

                                 (732) 548-5444
               ---------------------------------------------------
               (Registrant's telephone number including area code)

Indicate by check mark whether the Registrant (1) has filed all reports 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 [ ]


As of May 11, 2001, 3,682,000 shares of the Registrant's common stock were
outstanding.

                                       1
<PAGE>

<TABLE>
<CAPTION>
Part I - Financial Information      Joule Inc. And Subsidiaries
Item 1. Financial Statements        Consolidated Balance Sheets



                                                              March 31,   September 30,
                                                                 2001          2000
                                                             -----------   -----------
ASSETS                                                       (Unaudited)
------
<S>                                                          <C>           <C>
CURRENT ASSETS:
   Cash                                                      $   269,000   $   237,000
   Accounts receivable, less allowance
      for doubtful accounts of $618,000 at March 31
      and $514,000 at September 30, respectively              10,033,000     9,749,000
   Prepaid expenses and other current assets                   1,136,000       848,000
                                                             -----------   -----------
         Total Current Assets                                 11,438,000    10,834,000

PROPERTY AND EQUIPMENT, NET                                    4,350,000     4,013,000
GOODWILL                                                       1,159,000     1,201,000
OTHER ASSETS                                                      49,000       304,000
                                                             -----------   -----------
                                                             $16,996,000   $16,352,000
                                                             ===========   ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
   Loans payable to bank                                     $ 5,300,000   $ 4,980,000
   Accounts payable and accrued expenses                       1,214,000     1,269,000
   Accrued payroll and related taxes                           1,941,000     1,585,000
   Income taxes                                                       --        43,000
                                                             -----------   -----------
             Total Current Liabilities                         8,455,000     7,877,000

COMMITMENTS AND CONTINGENCIES


STOCKHOLDERS' EQUITY:
   Preferred stock, $.01 par value:
      Authorized 500,000 shares, none outstanding                     --            --
   Common stock, $.01 par value:
      Authorized 10,000,000 shares-issued 3,820,000 shares        38,000        38,000
   Additional paid-in capital                                  3,669,000     3,669,000
   Retained earnings                                           5,216,000     5,150,000
                                                             -----------   -----------
                                                               8,923,000     8,857,000

   LESS: Cost of 144,000 shares of common
           stock held in treasury                                382,000       382,000
                                                             -----------   -----------
             Total Stockholders' Equity                        8,541,000     8,475,000
                                                             -----------   -----------
                                                             $16,996,000   $16,352,000
                                                             ===========   ===========
</TABLE>

See accompanying notes to consolidated financial statements.

                                        2
<PAGE>

<TABLE>
<CAPTION>
                                           Joule Inc. And Subsidiaries
                                        Consolidated Statements of Income


                                                     Three Months Ended              Six Months Ended
                                                ----------------------------   ----------------------------
                                                  March 31,       March 31,      March 31,       March 31,
                                                    2001            2000           2001            2000
                                                ------------    ------------   ------------    ------------
                                                (Unaudited)     (Unaudited)    (Unaudited)     (Unaudited)
<S>                                             <C>             <C>            <C>             <C>
REVENUES                                        $ 19,518,000    $ 19,392,000   $ 38,042,000    $ 39,509,000
                                                ------------    ------------   ------------    ------------


COSTS, EXPENSES AND OTHER:
   Cost of services                               15,774,000      15,828,000     30,707,000      32,284,000
   Selling, general & administrative expenses      3,631,000       3,175,000      7,101,000       6,333,000
   Interest expense                                  101,000         142,000        208,000         292,000
   Interest income                                   (24,000)             --        (59,000)             --
                                                ------------    ------------   ------------    ------------

INCOME BEFORE INCOME TAX PROVISION                    36,000         247,000         85,000         600,000

INCOME TAX PROVISION                                   3,000          95,000         19,000         231,000
                                                ------------    ------------   ------------    ------------

NET INCOME                                      $     33,000    $    152,000   $     66,000    $    369,000
                                                ============    ============   ============    ============

BASIC AND DILUTED EARNINGS PER SHARE            $       0.01    $       0.04   $       0.02    $       0.10
                                                ============    ============   ============    ============

WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING-BASIC                                  3,677,000       3,674,000      3,677,000       3,674,000
                                                ============    ============   ============    ============

WEIGHTED AVERAGE COMMON SHARES AND
COMMON EQUIVALENTS OUTSTANDING - DILUTED           3,677,000       3,674,000      3,677,000       3,674,000
                                                ============    ============   ============    ============
</TABLE>



See accompanying notes to consolidated financial statements.

                                        3
<PAGE>
<TABLE>
<CAPTION>
                               Joule Inc. And Subsidiaries
                          Consolidated Statements of Cash Flows


                                                                           Six Months Ended
                                                                      --------------------------
                                                                       March 31,      March 31,
                                                                          2001           2000
                                                                      -----------    -----------
                                                                      (Unaudited)    (Unaudited)
<S>                                                                   <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                                         $    66,000    $   369,000
   Adjustments to reconcile net income to
     net cash flows provided by (used in) operating
     activities:
       Depreciation and amortization                                      436,000        408,000
       Provision for losses on accounts receivable                        105,000        129,000
       Changes in operating assets and liabilities:
          Accounts receivable                                            (389,000)       178,000
          Prepaid expenses and other assets                               (33,000)      (324,000)
          Accounts payable and accrued expenses                           (55,000)       (86,000)
          Accrued payroll and related taxes                               356,000        274,000
          Income taxes                                                    (43,000)       179,000
                                                                      -----------    -----------
            Net cash flows provided by operating activities               443,000      1,127,000
                                                                      -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Acquisitions of property and equipment                            (731,000)      (342,000)
                                                                      -----------    -----------
          Net cash flows used in investing activities                    (731,000)      (342,000)
                                                                      -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Increase (decrease) in loans payable to bank                       320,000       (720,000)
                                                                      -----------    -----------
          Net cash flows provided by (used in) financing activities       320,000       (720,000)
                                                                      -----------    -----------

NET CHANGE IN CASH                                                         32,000         65,000

CASH, BEGINNING OF PERIOD                                                 237,000        152,000
                                                                      -----------    -----------

CASH, END OF PERIOD                                                   $   269,000    $   217,000
                                                                      ===========    ===========

SUPPLEMENTAL CASH FLOW INFORMATION

          Interest paid                                               $   222,000    $   297,000
                                                                      ===========    ===========

          Income taxes paid                                           $   222,000    $    59,000
                                                                      ===========    ===========
</TABLE>


See accompanying notes to consolidated financial statements.

                                        4

<PAGE>

                              NOTES TO CONSOLIDATED
                              FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)  The consolidated balance sheet at the end of the preceding fiscal year has
been derived from the audited consolidated balance sheet contained in the
Company's Form 10-K and is presented for comparative purposes. All other
financial statements are unaudited. All unaudited amounts are subject to year
end adjustments and audit, but the Company believes all adjustments, consisting
only of normal and recurring adjustments, necessary to present fairly the
financial position, results of operations and changes in cash flows for all
interim periods presented, have been made. The results of operations for interim
periods are not necessarily indicative of the operating results for the full
year.

Footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted in
accordance with the published rules and regulations of the Securities and
Exchange Commission. These consolidated financial statements should be read in
conjunction with the financial statements and notes thereto included in the
Company's Form 10-K and Annual Report to Stockholders for the most recent fiscal
year.

(2)  Segment Disclosures

The Company has determined that its reportable segments are those that are based
on the Company's method of internal reporting, which disaggregates its business
by segment. The Company's reportable segments are: (1) Commercial Staffing, (2)
Technical Staffing and (3) Industrial Staffing.

Information concerning operations by operating segment is as follows (in 000's):

<TABLE>
<CAPTION>
                                    Three Months Ended       Six Months Ended
                                         March 31,              March 31,
                                   --------------------    --------------------
                                     2001        2000        2001        2000
                                     ----        ----        ----        ----

<S>                                <C>         <C>         <C>         <C>
REVENUES
   Commercial ..................   $  6,326    $  7,023    $ 12,390    $ 15,575
   Technical ...................      6,482       5,572      12,685      11,141
   Industrial ..................      6,710       6,797      12,967      12,793
                                   --------    --------    --------    --------
                                   $ 19,518    $ 19,392    $ 38,042    $ 39,509
                                   --------    --------    --------    --------

INCOME BEFORE TAX PROVISION
   Commercial ..................   $    282    $    266    $    579    $    661
   Technical ...................        395         381         984         751
   Industrial ..................        339         631         503       1,126
   Corporate (unallocated,
      including interest) ......       (980)     (1,031)     (1,981)     (1,938)
                                   --------    --------    --------    --------
                                   $     36    $    247    $     85    $    600
                                   --------    --------    --------    --------
</TABLE>

                                       5
<PAGE>

                           JOULE INC. AND SUBSIDIARIES


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations


Results of Operations

     The Company's revenues are derived from providing staffing services to its
customers. Such services include providing commercial (office and light
industrial) workers, technical (engineering, scientific and information
technology) personnel, and industrial (skilled craft industrial plant and
facility maintenance) labor. Virtually all revenue is billed on a direct cost
plus markup basis. Revenue was $ 19.5 million for the three months ended March
31, 2001 compared to $19.4 million for the year earlier period. Revenue for the
first six months of fiscal 2001 amounted to $38.0 million; for the comparable
six month period of 2000 revenue was $39.5million. Commercial staffing revenue
decreased 10% to $6.3 million and 20% to $12.4 million for the respective three
and six month periods ended March 31, 2001, reflective of the top line softness
in this segment as well as a decision not to pursue certain lower margin
business. Technical staffing revenue increased 16% to $6.5 million in the
current 2001 quarter, and rose 14% to $12.7 million as compared to the 2000 six
month period. Industrial staffing revenue of $6.7 million and $13.0 million for
the 2001 three and six month periods approximated the 2000 three and six months
results of $6.8 million and $12.8 million, respectively.

     Cost of services improved to 80.8% and 80.7% of revenue in the current
three month and six month periods compared to 81.6% and 81.7% in the same prior
year periods. These expenses consist primarily of compensation to employees on
assignment to clients and related costs, including social security, unemployment
taxes, general liability and workers' compensation insurance, and other costs of
services, including travel expenses and a van transportation service which
transports some commercial staffing workers to job sites. Selling, general and
administrative expenses were $3.6 million and $7.1 million for the three and six
months ended March 31, 2001 compared to $3.2 million and $6.3 million for the
year earlier periods, and represented 18.6% and 18.7% of revenue in the 2001
periods, an increase over the comparable 2000 periods of 16.4% and 16.0% of
revenue. These percentage increases are principally related to higher staff
employee payroll and other branch related expenses, as well as lower revenue for
the six month period of 2001. Selling, general and administrative expenses
principally include staff payroll and related expenses in addition to
advertising, professional fees, depreciation and amortization, provision for the
allowance for doubtful accounts, rent and other costs related to maintaining the
Company's branch offices.

                                       6
<PAGE>

                           JOULE INC. AND SUBSIDIARIES

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations (continued)

     Interest expense amounted to $101,000 and $208,000 for the 2001 three and
six month periods compared to $142,000 and $292,000 for the respective prior
year periods, reflecting a decrease in average borrowings along with a decrease
in interest rates. Interest income in the 2001 periods of $24,000 and $59,000,
respectively, relates to a current note receivable included in accounts
receivable. After giving effect to the utilization of certain tax credits the
effective tax rates approximated 8% and 22% for the respective three and six
month periods ending March 31, 2001 and approximately 38% for the respective
three and six month periods ending March 31, 2000. As a result of the above, net
income for the 2001 three month period was $33,000 or $0.01 per share, basic and
diluted, compared with net income of $152,000 or $0.04 per share, basic and
diluted, for the 2000 period; for the 2001 six month period, net income was
$66,000 or $0.02 per share, basic and diluted, compared with $369,000 or $0.10
per share, basic and diluted, for the 2000 period.


Liquidity and Capital Resources

     Current assets at March 31, 2001 were $11,438,000 as compared to
$10,834,000 at September 30, 2000 and current liabilities were $8,455,000
compared to $7,877,000 as of September 30, 2000. The increase in current assets
principally reflects a modest increase in accounts receivable of approximately
$300,000 due to increased sales in the current three month period compared to
the last three months of the prior fiscal year and an increase in prepaid
expense of approximately $300,000, principally relating to prepayment of income
taxes. The increase in current liabilities includes a $320,000 increase in notes
payable as well as an approximately $350,000 increase in accrued payroll and
related taxes due to a higher level of business in the final week of the current
period as well as higher related payroll taxes due. The decrease in accounts
payable and accrued expenses reflected the normal cyclical nature of such
accounts. While the Company's capital expenditures are generally relatively
modest due to the nature of its business, it is anticipated that approximately
$300,000 to $400,000 will be expended within the current fiscal year in
connection with the installation of a major new information technology system,
of which approximately $260,000 was incurred in the current six month period.

                                       7
<PAGE>
                           JOULE INC. AND SUBSIDIARIES


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations (continued)

     Employees typically are paid on a weekly basis. Clients generally are
billed on a weekly basis. The Company has generally utilized bank borrowings to
meet its working capital needs. The Company has a $9,000,000 bank line of
credit; loans thereunder are secured principally by receivables with interest at
LIBOR plus one and one-half percent with a prime rate less one-quarter percent
option; $5,300,000 was outstanding under this line as of March 31, 2001. The
Company believes that internally generated funds and available borrowings will
provide sufficient cash flow to meet its requirements for the next 12 months.


Forward-Looking Information

     Certain parts of this document include forward-looking statements within
the meaning of the federal securities laws that are subject to risks and
uncertainties. Factors that could cause the Company's actual results and
financial condition to differ from the Company's expectations include, but are
not limited to, a change in economic conditions that adversely affects the level
of demand for the Company's services, competitive market and pricing pressures,
the availability of qualified temporary workers, the ability of the Company to
manage growth through improved information technology systems and the training
and retention of new staff, and government regulation.

                                       8
<PAGE>
                           JOULE INC. AND SUBSIDIARIES
                           PART II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits: None
(b)      Reports on Form 8-K
         No reports on Form 8-K have been filed during the quarter for which
         this report is filed.

                                   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 there unto duly authorized.

                                  JOULE INC.
                                  (Registrant)



May 11, 2001
                                  /s/ E.N. LOGOTHETIS
                                  ----------------------------------------------
                                  E. N. Logothetis, Chairman and Chief Executive
                                  Officer (Principal Executive Officer)



May 11, 2001
                                  /s/ BERNARD G. CLARKIN
                                  ----------------------------------------------
                                  Bernard G. Clarkin, Vice President and
                                  Chief Financial Officer
                                  (Principal Financial Officer)

                                       9