U.S. 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

              |_| TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE
                              SECURITIES EXCHANGE ACT OF 1934

              For the transition period from __________ to ___________

                            Commission File Number 0-11038



                        ADVANCED REMOTE COMMUNICATION SOLUTIONS, INC.
              (Exact name of small business issuer as specified in its charter

         California                                         33-0644381
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
 Incorporation or organization)

             10675 Sorrento Valley Road, Suite 200, San Diego, CA 92121
                      (Address of Principal Executive Offices)

                                   (858) 450-7600
                              (Issuer's telephone number)


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  __



                          APPLICABLE ONLY TO CORPORATE FILERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:  21,090,922 shares of common stock as
of November 7, 2000.

Transitional Small Business Disclosure Format (check one): Yes  __ No  X



PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ADVANCED REMOTE COMMUNICATION SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

                             Three Months Ended            Nine Months Ended
                                September 30,                September 30,
                                2000          1999         2000          1999
REVENUES:
Communications .......... $  1,755,849  $  1,646,732  $  4,892,693  $  4,850,271
Video compression ............ 979,993       741,680     2,705,545     3,084,924
Satellite transmission
technology                     976,177     1,137,478     3,187,645     1,137,478
                             ---------     ---------     ---------     ---------

        TOTAL REVENUES ..    3,712,019     3,525,890    10,785,883     9,072,673
                             ---------     ---------     ---------     ---------

COSTS AND EXPENSES:
Communications ............    709,963       607,108     2,036,360     2,019,394
Video compression ............ 231,847       258,384       648,932     1,013,870
Satellite transmission
technology ................... 662,154       150,171     2,097,831       153,025
Selling, general and
administrative ............. 2,528,955     2,106,378     8,087,907     5,061,303
Research and development       340,132       305,984       853,299       707,312
                             ---------     ---------     ---------     ---------
 TOTAL COSTS AND EXPENSES    4,473,051     3,428,025    13,724,329     8,954,904
                              --------     ---------     ---------     ---------

(LOSS) INCOME
FROM OPERATIONS ............. (761,032)       97,865    (2,938,446)      117,769

Interest income ............     3,763        22,004        22,056        27,575
Interest expense ...........   204,279       182,689       723,724       590,578
                             ---------     ---------     ---------     ---------

LOSS BEFORE TAXES ..........  (961,548)      (62,820)   (3,640,114)    (445,234)

INCOME TAX
BENEFIT/(EXPENSE) ............ 213,482      (190,932)      895,171        32,568

                             ---------     ---------     ---------     ---------
                             $(748,066)    $(253,752)  $(2,744,943)   $(412,666)
                             =========     =========     =========     =========


BASIC LOSS PER
 COMMON SHARE ........   $      (0.04)    $    (0.01)  $     (0.13)   $   (0.02)

DILUTED LOSS PER
COMMON SHARE ..........  $      (0.04)    $    (0.01)  $     (0.13)   $   (0.02)

WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING, BASIC
AND DILUTED ..............  21,085,050     19,029,249    20,926,151   18,939,455

Dilutive effect of:
Employee stock options .....     --             --           --           --
Warrants ................        --             --           --           --
Weighted average of
common shares
outstanding,
assuming dilution ......   21,085,050      19,029,249    20,926,151   18,939,455

See notes to consolidated financial statements.



ADVANCED REMOTE COMMUNICATION SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS



                                        September 30,            December 31,
                                     ------------------       ------------------
ASSETS                                       2000                     1999
                                         (Unaudited)
CURRENT ASSETS:
  Cash                                     $118,094                 $857,634
  Accounts receivable - net               3,313,516                4,445,770
  Inventories                             1,236,187                  918,531
  Prepaid expenses and other assets       1,045,221                  925,750
                                     ------------------       ------------------
        Total current assets              5,713,018                7,147,685

PROPERTY - net                              585,003                  705,082
GOODWILL - net                           15,003,838               16,023,480
PATENT - net                             15,490,385               16,334,135
                                    ------------------       ------------------

TOTAL                                   $36,792,244              $40,210,382
                                    ==================       ==================

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                       $1,131,256               $1,831,985
  Accrued expenses                        1,039,286                1,591,254
  Current portion of notes payable        6,304,454                3,254,688
                                    ------------------       ------------------
        Total current liabilities         8,474,996                6,677,927

NOTES PAYABLE                             2,616,181                6,190,088
DEFERRED TAX LIABILITY                    6,485,526                6,864,377

STOCKHOLDERS' EQUITY:
Convertible preferred series A
stock, no par value;                                               3,000,000
1,000,000 shares authorized,
300 shares issued
Convertible preferred series
B stock, no par value;
1,000,000 shares authorized,
376.25 shares issued                      3,762,500
Common stock, no par value;
100,000,000 shares authorized,
21,090,922 and 20,739,860 shares
issued and outstanding
at 2000 and 1999, respectively           22,179,370               21,459,376
Accumulated deficit                      (6,726,329)              (3,981,386)
                                    ------------------       ------------------
    Total stockholders' equity           19,215,541               20,477,990
                                    ------------------       ------------------

TOTAL                                   $36,792,244              $40,210,382
                                    ==================       ==================

See notes to consolidated financial statements.


ADVANCED REMOTE COMMUNICATION SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


                                               Nine months ended September 30,
                                                2000                   1999
Operating activities:
Net loss                                    $(2,744,943)            $ (412,666)
  Adjustments to reconcile net loss
  to net cash (used in) provided by
  operating activities:
    Deferred tax (benefit)/expense             (378,851)                 4,926
    Issuance of warrants                        139,125
    Depreciation and amortization             2,131,441              1,929,801
Changes in assets and liabilities:
    Accounts receivable, net                  1,132,254               (678,392)
    Inventories                                (317,656)              (223,266)
    Prepaid expenses and other assets          (128,592)               (66,627)
    Accounts payable and accrued expenses    (1,252,696)               509,317
                                       -----------------      -----------------
Net cash (used in) provided by
operating activities                         (1,419,918)             1,063,093
                                       -----------------      -----------------

Investing activities:
  Capital expenditures                         (138,849)              (364,417)
  Goodwill acquired in acquisition                                  (1,495,092)
                                        -----------------      -----------------
Net cash used in investing activities          (138,849)            (1,859,509)
                                        -----------------      -----------------

Financing activities:
  Issuance of series A preferred stock                               3,000,000
  Issuance of common shares, net                425,897
  Issuance of series B preferred stock          762,500
  Payments on line of credit                   (755,000)
  Proceeds from line of credit                1,705,000
  Cash received from stock
  options exercised                             154,972                 73,143
  Principal payments on notes payable        (1,474,142)            (1,364,370)
                                        -----------------      -----------------
Net cash provided by financing activities       819,227              1,708,773
                                        -----------------      -----------------

Net (decrease) increase in cash                (739,540)               912,357

Cash at beginning of period                     857,634                416,361
                                       -----------------      -----------------
Cash at end of period                          $ 118,094            $ 1,328,718
                                       =================      =================

SUPPLEMENTAL DISCLOSURE ON NON-CASH
INVESTING AND FINANCING ACTIVITIES:
Common stock issued in acquisition                                  $ 3,690,000
Common stock issued as payment
on accounts payable                                                   $ 153,750
Issuance of notes payable in acquisition                              $ 600,000
Conversion of Series A Preferred
Stock into Series B                         $ 3,000,000


See notes to consolidated financial statements.





<PAGE>


           ADVANCED REMOTE COMMUNICATION SOLUTIONS, INC.

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying  consolidated  financial statements as of and for the three and
nine  months  ended  September  30,  2000 and 1999 are  unaudited  and have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.  In the opinion of management,  all adjustments considered
necessary for a fair presentation have been included.  Operating results for the
three and nine months ended September 30, 2000 are not necessarily indicative of
the results  that may be expected for any other  interim  period or for the year
ending December 31, 2000.

NOTE 2 - BALANCE SHEET DETAILS

                                           9/30/2000             12/31/1999

                                        ----------------       ----------------
 Accounts receivable                      $3,319,037               $4,527,058

  Less allowance for doubtful accounts
   and sales return reserve                    5,521                   81,288
                                        ----------------       ----------------
                                          $3,313,516               $4,445,770
                                        ----------------       ----------------
 Inventory
  Raw materials                             $769,260                 $497,052
  Work in progress                           154,087                  179,072
  Finished goods                             312,840                  242,407
                                        ----------------       ---------------
                                          $1,236,187                 $918,531
                                        ----------------       ----------------
 Property:
  Computers and equipment                 $1,386,974               $1,248,085
  Furniture and fixtures                     263,532                  265,490
  Leasehold improvements                      57,307                   55,390
                                        ----------------       ----------------
                                           1,707,813                1,568,965

      Less accumulated depreciation        1,122,810                  863,883
                                        ----------------       ----------------
                                            $585,003                 $705,082
                                        ----------------       ----------------

 Goodwill                                $17,481,272              $17,481,272
  Less accumulated amortization            2,477,434                1,457,792
                                        ----------------       ----------------
                                         $15,003,838              $16,023,480
                                        ----------------       ----------------

 Patent                                  $18,000,000              $18,000,000
  Less accumulated amortization            2,509,615                1,665,865
                                        ----------------       ----------------
                                         $15,490,385              $16,334,135
                                        ----------------       ----------------
 Accrued expenses:
  Taxes payable                              $85,686                 $482,649
  Other accrued expenses                     953,600                1,108,605
                                        ----------------       ----------------
                                          $1,039,286               $1,591,254
                                        ----------------       ----------------



Depreciation  expense  was  $268,050  and  $239,335  for the nine  months  ended
September 30, 2000 and 1999,  respectively.  Amortization expense was $1,863,391
and  $1,519,712  for  the  nine  months  ended  September  30,  2000  and  1999,
respectively.

NOTE 3 - ACQUISITIONS

Innovative  Communications  Technologies,  Inc.  ("ICTI") - Effective  August 1,
1999,  the Company  completed  the  acquisition  of all of the shares of ICTI, a
privately held company located in Gaithersburg,  Maryland that is engaged in the
design and implementation of bandwidth efficient multi-media satellite networks.
The purchase  price to the former  shareholders  of ICTI included the payment of
$1.5 million in cash, the issuance of 1,665,000  shares of the Company's  common
stock  and the  delivery  of  promissory  notes in the  amount of  $600,000.  In
addition,  the Company  delivered a  non-interest  bearing note in the amount of
$400,000  that is subject to attainment of certain  revenue  targets.  This note
will be recorded in the  Company's  accounts if and when these  targets are met.
The Company  effectively  acquired  ICTI's assets of $1.6  million,  assumed its
liabilities  of $1.5  million,  and  recorded  goodwill  in the  amount  of $5.5
million, which is being amortized over ten years under the straight line method.

NOTE 4 - NOTES PAYABLE

On  February  28,  2000 the  Company  signed a Change  in Terms  Agreement  (the
"Agreement")  with a bank  increasing  the  line of  credit  to  $1,750,000  and
extending  the expiry date to  December  29,  2001.  At  September  30, 2000 the
balance on the line of credit was  $1,700,000.  The  Company is required to meet
certain restrictive  financial and operating covenants under the line of credit.
The Company  received waivers of certain of the covenants for the quarters ended
September  30,  2000,  June 30, 2000 and March 31,  2000.  The Company is in the
process of re-negotiating the covenants and examining financing alternatives for
ongoing activities and future acquisitions. The bank has expressed a willingness
to continue as the Company's  bankers.  In addition,  pursuant to the Agreement,
the bank has prohibited  principal payments totaling  approximately  $520,000 on
notes payable,  which were due as of October 1, 2000 to the two former owners of
Enerdyne Technologies, Inc. One former owner is a director and executive officer
of the Company.

Due  to  the  uncertainties   surrounding  the  Company's  ability  to  maintain
compliance  with  certain  financial  covenants,  the long term portion of notes
payable and the line of credit to the bank have been reclassified as current.

NOTE 5 - RECENTLY ISSUED ACCOUNTING STANDARDS

In June 1998,  the  Financial  Accounting  Standards  Board  ("FASB")  issued
Statement  No. 133,  Accounting  for Derivative  Instruments  and  Hedging
Activities  ("SFAS  No.  133").  SFAS No.133  establishes  accounting  and
reporting  standards  for other  contracts  and for  hedging  activities.
The  statement  requires  that an entity recognize all  derivatives  as either
assets or  liabilities  in the  statement of financial  position and measure
those  instruments  at fair market value.  In June 1999,  the FASB issued SFAS
No. 137  Accounting  for  Derivative Instruments  and Hedging  Activities  -
Deferral of the  Effective  Date of FASB  Statement  No. 133.  SFAS No. 137
deferred  implementation  of SFAS 133 until the first quarter of 2001. In June
2000,  the FASB issued SFAS No. 138, Accounting for Certain  Derivative
Instruments and Certain Hedging Activities - An Amendment of FASB Statement No.
133. SFAS 138 amends the  accounting  and  reporting  standards of SFAS No. 33
for certain  derivative  instruments and certain hedging activities.

The Company has evaluated,  and will continue to evaluate in future periods, the
impact of SFAS Nos.  133 and 138 on its  results  of  operations  and  financial
position.  Management does not believe that the adoption of these pronouncements
will result in any material adjustments to the Company's financial statements.

In December 1999, the  Securities and Exchange  Commission  ("SEC") issued Staff
Accounting  Bulletin  No.  101 ("SAB  101")  which  summarizes  the SEC  staff's
position on  selected  revenue  recognition  issues.  The  Company is  currently
evaluating  what  effect,  if  any,  SAB 101 may  have on its  existing  revenue
recognition policies,  principally with respect to performance-based incentives.
The  Company  does not  believe  that  adoption of this SAB will have a material
impact  on its  financial  statements.  Implementation  of SAB  101 is  required
commencing with the first quarter of 2001.

NOTE 6 - STOCK OPTIONS

Under the amended and restated 1996 Stock Option Plan ("the Plan"),  the Company
may grant incentive and non-qualified options to purchase up to 6,000,000 shares
of common stock to employees,  directors and  consultants at prices that are not
less than  100% (85% for  non-qualified)  of fair  market  value on the date the
options are granted.  Options  issued under the Plan expire  between five and 10
years after the options are granted and  generally  become  exercisable  ratably
over a five-year  period  following  the date of grant.  At September  30, 2000,
there were 2,817,900 options outstanding under the Plan.

NOTE 7- GEOGRAPHIC AND BUSINESS SEGMENT INFORMATION

The Company operates three reportable business segments:  communications,  video
compression  and satellite  transmission  technology.  The Company's  reportable
segments  are  strategic  business  units  that  offer  different  products  and
services.  They are managed separately based on fundamental differences in their
operations.

The  communications  segment  consists of the  operations of Boatracs,  Boatracs
Gulfport   ("Gulfport"),   Boatracs  Europe  ("Europe")  and  OceanTrac  Limited
("OceanTrac").  The communications  segment has exclusive distribution rights in
the  United  States  for  marine  application  of  the  OmniTRACS(R)  system  of
satellite-based  communication  and tracking  systems  manufactured  by QUALCOMM
Incorporated ("QUALCOMM"). In addition, the Company's wholly owned subsidiaries,
Europe  and  OceanTrac,  have  agreements  with  QUALCOMM's  authorized  service
providers in Europe and Canada for marine  distribution of OmniTRACS(R) in parts
of Europe and  Canada.  Gulfport  is a provider  of  software  applications  and
service  solutions  to  the  commercial  work  boat  and  petroleum  industries,
including customers of Boatracs.

The  video   compression   segment   consists  of  the  operations  of  Enerdyne
Technologies,  Inc.  ("Enerdyne")  which  the  Company  acquired  in July  1998.
Enerdyne is a provider of versatile,  high performance digital video compression
products and multiplexing equipment to government and commercial markets.

The satellite  transmission  technology  segment  consists of the  operations of
ICTI, which the Company acquired effective August 1999 (Note 3). ICTI is engaged
in designing and implementing  bandwidth efficient multimedia satellite networks
and develops  customized  software  solutions  to manage and allocate  available
satellite  power/bandwidth  resources to optimize a satellite system's lifecycle
costs.

Corporate  overhead  expenses have been  allocated to the segments based on each
segments revenue as a percentage of total revenues.

Information by industry segment for the three months ended September 30, 2000 is
set forth below.

                    Commun-          Video          Satellite
                   ications       Compression       Technology    Consolidated
                ------------     ------------     -------------   -------------
Revenues         $1,755,849          $979,993        $976,177       $3,712,019
Income (loss)
from operations    $277,120         $(595,049)      $(443,103)       $(761,032)
Interest income      $1,115            $1,325          $1,323           $3,763
Interest expense    $17,262          $177,481          $9,536         $204,279
Depreciation and    $72,375          $491,366        $148,866         $712,607
amortization

Information by industry  segment for the nine months ended September 30, 2000 is
set forth below.

                    Commun-          Video          Satellite
                    ications       Compression     Technology      Consolidated
                  ------------    ------------    -------------  --------------
Revenues          $4,892,693       $2,705,545      $3,187,645      $10,785,883
Income (loss) from  $357,302      $(2,185,458)    $(1,110,290)     $(2,938,446)
operations
Interest income       $6,849           $4,253         $10,954          $22,056
Interest expense     $94,830         $567,329         $61,565         $723,724
Depreciation and    $215,597       $1,469,687        $446,157       $2,131,441
amortizatization

Total assets      $3,256,851      $27,331,158      $6,204,235      $36,792,244

Information by industry segment for the three months ended September 30, 1999 is
set forth below.

                   Commun-           Video         Satellite
                  ications        Compression    Technology        Consolidated
                ------------     ------------  --------------      ------------
Revenues        $1,646,732          $741,680     $1,137,478         $3,525,890
Income (loss)
from               $49,178         $(486,566)      $535,253            $97,865
operations
Interest income     $4,112            $2,087        $15,805            $22,004
Interest expense      $581          $181,701           $407           $182,689
Depreciation and   $75,702          $481,722       $269,587           $827,011
amortization

Information by industry  segment for the nine months ended September 30, 1999 is
set forth below.
                   Commun-          Video           Satellite
                  ications       Compression       Technology      Consolidated
                ------------    ------------       -----------     -------------
Revenues        $4,850,271        $3,084,924       $1,137,478        $9,072,673
Income (loss)
from              $151,380         $(568,866)        $535,255          $117,769
operations
Interest income     $7,765            $4,005          $15,805           $27,575
Interest expense    $9,775          $580,396             $407          $590,578

Depreciation and  $221,386        $1,438,828         $269,587        $1,929,801
amortization

Total assets    $3,526,092       $28,637,288    $7,007,457          $39,170,837

The  Company  has two  foreign  subsidiaries:  Europe and  OceanTrac.  Europe is
located in the Netherlands and provides  communication  services to the European
market.   OceanTrac  provides  communication  services  in  Eastern  Canada.  In
addition,  Enerdyne and ICTI have foreign  sales.  The following  table presents
revenues for each of the geographical areas in which the Company operates:

                Three months   Nine months      Three months       Nine months
              Ended 9/30/2000  Ended 9/30/2000 ended 9/30/1999   Ended 9/30/1999

United States   $3,053,325      $8,478,130         $2,289,348       $7,631,036

International      658,694       2,307,753          1,236,542        1,441,637
             -------------   -------------     --------------    -------------
     Total      $3,712,019     $10,785,883         $3,525,890       $9,072,673
             -------------   -------------     --------------    -------------



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Overview

The Company has three business units:
    1.  Boatracs,
    2.  Enerdyne Technologies, Inc. ("ENERDYNE"), a wholly owned subsidiary, and
    3.  Innovative Communications Technologies, Inc. ("ICTI"), a wholly owned
subsidiary.

Statements  within  this  10-QSB  which  are  not  historical  facts,  including
statements  about  strategies and  expectations  for new and existing  products,
technologies,  and opportunities,  are  forward-looking  statements that involve
risks and  uncertainties.  The  Company  wishes to  caution  readers to the risk
factors inherent to the business  including,  but not limited to, the continuing
reliance  upon  QUALCOMM,  one of the major  suppliers of equipment  sold by the
Boatracs business unit,  reliance upon QUALCOMM's  Network  Management  Facility
through which the Boatracs'  business unit message  transmissions  are formatted
and processed,  the  development of more advanced  technology by competitors and
continuing  technological  innovation by the Company.  These and other risks are
more fully described in the Company's  Annual Report on Form 10-KSB for the year
ended December 31, 1999.

For the three months ended September 30, 2000 and 1999

Total revenues for the quarter ended  September 30, 2000,  were $3,712,019 an
increase of $186,129 or 5.3% compared to total revenues of $3,525,890 for the
quarter ended September 30, 1999.

Communications  revenues,  which  consist of revenues  from the sale of Boatracs
systems,  software and data transmission and messaging, were $1,755,849 or 47.3%
of total  revenues for the quarter  ended  September  30,  2000,  an increase of
$109,117  or 6.6%  compared to  $1,646,732  or 46.7% of total  revenues  for the
quarter  ended  September  30,  1999.  The increase in  communications  revenues
compared to the same period of the prior year is due primarily to an increase in
data transmission and messaging and software revenues in the amount of $136,924,
or 30%, partially offset by a decrease in Boatracs system sales in the amount of
$13,970.

Video  compression  revenues  were  $979,993 or 26.4% of total  revenues for the
quarter ended September 30, 2000, an increase of $238,313, or 32.1%, compared to
$741,680 or 21.0% of total revenues in the prior comparable period. The increase
in video  compression  revenues is due  primarily  to shipments of a new product
line.

Revenues from satellite transmission  technology were $976,177 or 26.3% of total
revenues  for the  quarter  ended  September  30,  2000  compared to revenues of
$1,137,478 in the third  quarter of 1999.  The Company  acquired ICTI  effective
August 1, 1999 (Note 3). The reduction in revenues is due primarily to a license
fee  recorded  in the  quarter  ended  September  30,  1999 and a  reduction  of
royalties in the current third quarter.

Communications  expenses were $709,963 or 40.4% of  communications  revenues for
the quarter ended September 30, 2000, an increase of $102,855 or 16.9%, compared
to $607,108 which represented 36.9% of communications  revenue in the comparable
quarter of the prior year.  Gross margin for  communications  decreased  3.5% to
59.6% in the quarter  ended  September 30, 2000 from 63.1% in the same period of
the prior  year.  This  decrease  is  primarily  due to a decline in the sale of
Boatracs  systems  due to customer  mix.  In  addition,  data  transmission  and
messaging margins  decreased due to certain volume discounts.  The overall gross
margin  decline  was  partially  offset by an increase in the margin of software
sales.

Video compression  expenses were $231,847 or 23.7% of video compression revenues
for the  quarter  ended  September  30,  2000,  a  decrease  of $26,537 or 10.3%
compared to $258,384 or 34.8% of video  compression  revenues in the same period
of the prior year. The increase in gross margin of 11.1% from 65.2% in the third
quarter of the prior comparable  quarter, is primarily due to changes in the mix
of products sold.

Satellite  transmission  technology expenses were $662,154 or 67.8% of satellite
transmission  technology  revenues  for the  quarter  ended  September  30, 2000
compared to $150,171 or 13.2% of satellite  transmission  technology revenues in
the prior third quarter.  ICTI was acquired by the Company  effective  August 1,
1999 and  therefore  only two months of revenues  and costs are  included in the
quarter ending  September 30, 1999. In the quarter ended September 30, 1999, 30%
of the  satellite  transmission  technology  revenues  came from  royalties  and
license fees which have a 100% margin,  compared to 3% of satellite transmission
technology revenues in the quarter ending September 30, 2000.

Selling,  general and administrative  expenses were $2,528,955 or 68.1% of total
revenues for the quarter  ended  September  30, 2000, an increase of $422,577 or
20.1%,  compared  to  $2,106,378  or  59.7%  of  total  revenues  in  the  prior
corresponding  quarter.  Excluding ICTI which was acquired  effective  August 1,
1999  selling,  general and  administrative  expenses  were  $2,044,195  for the
quarter ended  September  30, 2000 compared to $1,756,014  for the quarter ended
September  30,  1999 an increase  of  $288,181  or 16.4%.  Overall,  accounting,
commissions,  insurance,  consulting,  office expenses and office rent increased
offset  by a  decrease  in  salary  expense.  In  addition,  marketing  expenses
increased  significantly  due to the introduction of new products.  Amortization
expense  increased by $49,306 to $621,130 for the quarter  ended  September  30,
2000 compared to $571,824 in the prior  comparable  period due to a full quarter
of goodwill  amortization  expense  connected with the ICTI acquisition (Note 3)
compared to two months of goodwill amortization expense in the prior year.

Research and  development  expenses were $340,132 or 9.2% of total  revenues for
the quarter ended  September 30, 2000, an increase of $34,148 or 11.2%  compared
to research and  development  expenses of $305,984 or 8.7% of total  revenues in
the prior comparable quarter.

Interest  expense of $204,279 for the third quarter of 2000 and $182,689 for the
third quarter of 1999 primarily  represents  interest on notes payable issued in
connection with the  acquisitions of Enerdyne and ICTI and interest on a line of
credit to a bank.

The income tax benefit of  $213,482  for the quarter  ended  September  30, 2000
primarily  represents the amortization of a temporary tax difference on the life
of a patent.

For the nine months ended September 30, 2000 and 1999

Total revenues for the nine months ended September 30, 2000 were $10,785,883, an
increase of $1,713,210 or 18.9% compared to total revenues of $9,072,673 for the
nine months ended September 30, 1999.

Communications  revenues,  which  consist of revenues  from the sale of Boatracs
systems,  software and data  transmission  and messaging were $4,892,693 for the
nine months ended September 30, 2000, or 45.4% of total revenues, an increase of
$42,422 or 1.0% compared to  $4,850,271 or 53.5% of total  revenues for the nine
months  ended  September  30,  1999.  The  increase in  communications  revenues
compared to the same period of the prior year is due primarily to an increase in
data  transmission  and  messaging  in the amount of  $166,095 or 5% offset by a
reduction in sales of Boatracs systems in the amount of $100,589,  or 20%, and a
reduction in software revenues in the amount of $33,061, or 4%.

Video  compression  revenues were  $2,705,545 or 25.1% of total revenues for the
nine months ended September 30, 2000, a decrease of $379,379, or 12.3%, compared
to $3,084,924 or 34.0% of total  revenues in the prior  comparable  period.  The
decrease in video  compression  revenues is primarily due to a particular  large
sale in the first quarter 1999,  partially  offset by an increase in revenue for
the second quarter 2000 attributable to the shipment of a new product line.

Revenues from  satellite  transmission  technology  were  $3,187,645 or 29.6% of
total  revenues  for the nine  months  ended  September  30,  2000,  compared to
$1,137,478 for the nine months ended  September 30, 1999.  The Company  acquired
ICTI  effective  August 1, 1999 and  therefore  only two months of revenues were
recorded in 1999.

Communications  expenses were $2,036,360 or 41.6% of communications revenues for
the nine  months  ended  September  30,  2000,  an  increase of $16,966 or 1.0%,
compared to $2,019,394 which represented 41.6% of communications  revenue in the
comparable  period of the prior year. The dollar increase is consistent with the
increase in communications  revenue in the same period.  Communications  expense
includes data  transmission  and messaging  expenses of $1,212,094  for the nine
months  ended  September  30,  2000 and  $1,138,462  for the nine  months  ended
September 30, 1999. Overall gross margin for communications remained constant at
58% in the nine months ended September 30, 2000 and 1999, respectively.

Video compression  expenses were $648,932 or 24.0% of video compression revenues
for the nine months  ended  September  30, 2000, a decrease of $364,938 or 36.0%
compared to $1,013,870 or 32.9% of video compression revenues in the same period
of the prior  year.  The  decrease in expenses  reflects  the  decrease in video
compression sales. The increase in margin of 8.9% reflects changes in the mix of
products sold.

Satellite transmission technology expenses were $2,097,831 or 65.8% of satellite
transmission  technology  revenues for the nine months ended September 30, 2000.
ICTI was acquired by the Company effective August 1, 1999 and therefore only two
months of expenses are shown for the nine months ended  September 30, 1999.  The
decrease  in margins of 52.4% is  primarily  due to the  decrease in royalty and
license  fee income,  which have no  associated  costs.  Royalty and license fee
revenues represented 30% of satellite  transmission  technology revenues for the
nine months  ended  September  30, 1999 and only 4.3% for the nine months  ended
September 30, 2000.

Selling,  general and administrative  expenses were $8,087,907 or 75.0% of total
revenues for the nine months ended September 30, 2000, an increase of $3,026,604
or  59.8%,  compared  to  $5,061,303  or 55.8% of total  revenues  in the  prior
corresponding  period.  ICTI was acquired effective August 1, 1999 and therefore
only two months of selling, general and administrative expenses are included for
the period  ended  September  30, 1999.  Excluding  ICTI,  selling,  general and
administrative  expenses  increased  $1,710,068 or 37.1%.  Overall,  accounting,
commissions,  insurance,  legal, consulting, rent and salary expenses increased,
offset by a minor decrease in shareholder relation expenses. Salary expenses for
the nine months ended September 30, 2000 included certain nonrecurring severance
costs.  In  addition,  marketing  expenses  increased  significantly  due to the
introduction  of new  products.  Amortization  expense  increased by $343,679 to
$1,863,391  for the nine months ended  September 30, 2000 compared to $1,519,712
in the prior  comparable  period due to the  acquisition  of ICTI.  Depreciation
expense increased by $28,715 to $268,050 for the nine months ended September 30,
2000.

Research and  development  expenses were $853,299 or 7.9% of total  revenues for
the nine  months  ended  September  30,  2000,  an increase of $145,987 or 20.6%
compared  to  research  and  development  expenses  of $707,312 or 7.8% of total
revenues in the comparable period of the prior year.

Interest  expense in the amount of $723,724 for the nine months ended  September
30, 2000 and  $590,578 for the nine months ended  September  30, 1999  primarily
represents  interest on notes payable issued in connection with the acquisitions
of Enerdyne and ICTI, interest paid on a line of credit and warrants issued to a
bank in the first quarter of 2000.

The income tax benefit of $895,171 for the nine months ended  September 30, 2000
and  $32,568  for the same  period in the prior year  primarily  represents  the
amortization of a temporary tax difference on the life of a patent.

Liquidity and Capital Resources

The Company's  cash balance at September  30, 2000 was  $118,094,  a decrease of
$739,540  compared  to the  December  31,  1999 cash  balance  of  $857,634.  At
September  30,  2000,  working  capital was negative  $2,761,978,  a decrease of
$3,231,736  from the  working  capital of  $469,758  at  December  31,  1999 due
primarily to the  reclassification  of a portion of long term debt to current in
the amount of  $4,462,500  (Note 4). Cash of  $1,419,918  was used in  operating
activities,  cash of  $138,849  was  used in  investing  activities  and cash of
$819,227 was provided by financing activities in the first nine months of 2000.

During the second quarter, the Company issued 211,535 unregistered common shares
to private  investors at fair market value of $1.95 per share.  The Company also
entered  into  Series B  Preferred  Stock  purchase  agreements  to issue  76.25
unregistered  shares  at  $10,000  per  share for  total  combined  proceeds  of
$1,175,000.  The  Preferred  Stock shall be  entitled  to  receive,  when and if
declared by the Board of Directors, cumulative cash dividends, in preference and
priority to dividends on any junior stock at 10% yearly.  Concurrently,  the 300
shares of Series A Preferred  Stock that was issued in June 1999 were  converted
into Series B Preferred Stock.

On February 28, 2000 the Company signed a Change in Terms  Agreement with a bank
increasing  the line of credit to  $1,750,000  at an interest  rate equal to the
lender's  prime rate,  which was 9-1/2% on September 30, 2000, and extending the
expiration  date to December 29, 2001.  At September  30, 2000,  $1,700,000  was
drawn on the line of credit. The Company is required to meet certain restrictive
financial and operating covenants under the line of credit. The Company received
a waiver of certain of the covenants for the quarters ended  September 30, 2000,
June  30,  2000  and  March  31,  2000.   The  Company  is  in  the  process  of
re-negotiating  the covenants and examining  financing  alternatives for ongoing
activities  and future  acquisitions.  The bank has expressed a  willingness  to
continue as the Company's bankers.

Accounts receivable,  net of an allowance for uncollectible accounts,  decreased
by $1,132,254  to  $3,313,516 at September 30, 2000 from  $4,445,770 at December
31, 1999. Property, net of accumulated  depreciation,  was $585,003 at September
30,  2000, a decrease of $120,079  from  December  31,  1999,  due  primarily to
depreciation expense.  Goodwill, net of accumulated  amortization,  decreased by
$1,019,642 to $15,003,838 due to  amortization  expense in the first nine months
of 2000.  Patent,  net of  accumulated  amortization,  decreased  by $843,750 to
$15,490,385  from December 31, 1999,  due to  amortization  expense in the first
nine months of 2000.

Accounts  payable was  $1,131,256  at September 30, 2000, a decrease of $700,729
compared to $1,831,985 at December 31, 1999, and accrued  expenses  decreased by
$551,968 at September 30, 2000 to $1,039,286  from $1,591,254 due primarily to a
reduction in revenues and associated  expenses.  Total notes payable (short term
plus long term) in the amount of $8,920,635  at September 30, 2000,  compared to
$9,444,776 at December 31, 1999, relate to a line of credit and promissory notes
with a bank and notes owing to the  previous  owners of Enerdyne  and ICTI.  The
balance of the total notes  payable  decreased by $524,141 at September 30, 2000
compared  to  December  31,  1999 due to  payments on the notes in the amount of
$1,474,141, offset by a net increase of $950,000 on the line of credit (Note 4).

The Company anticipates making capital expenditures of less than $300,000 during
2000,  excluding  assets  which may be acquired in  acquisitions.  To date,  the
Company has  financed its working  capital  needs  through  private  loans,  the
issuance of common and preferred stock and cash generated from  operations.  Any
expansion of the  Company's  business may require a  commitment  of  substantial
funds. To the extent that the net proceeds of private  financing  activities and
internally  generated  funds are  insufficient  to fund the Company's  operating
requirements,  it may be necessary for the Company to seek  additional  funding,
either  through   collaborative   arrangements  or  through  public  or  private
financing. There can be no assurance that additional financing will be available
on  acceptable  terms or at all.  When  additional  funds are  raised by issuing
equity  securities,  dilution to the existing  shareholders  result. If adequate
funds are not available in the future, the Company's business would be adversely
affected.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The Company is not aware of any current or pending legal proceedings to which it
is a party.

ITEM 2. CHANGES IN SECURITIES

In September 2000, the Company issued 10,085 shares of common stock to a Company
employee under the terms of an Employment Agreement effective November 1997 and
in reliance on Section 4 (2) of the Securities Act of 1933.  The shares were
valued at an average price of $2.97 each.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Inapplicable

ITEM 5. OTHER INFORMATION

Inapplicable

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

None



<PAGE>



                             SIGNATURES


In accordance with the requirements of the Securities  Exchange Act of 1934, the
registrant  caused  this  report to be signed on its behalf by the  Undersigned,
thereunto duly authorized.



                             ADVANCED REMOTE COMMUNICATION SOLUTIONS, Inc.
                             Registrant


November 14,  2000           /s/ MICHAEL L. SILVERMAN
Date                             MICHAEL SILVERMAN
                                 PRESIDENT, CHIEF EXECUTIVE OFFICER
                                 CHAIRMAN OF THE BOARD



November 14, 2000            /s/ DEAN B. KERNUS
Date                             CHIEF FINANCIAL OFFICER