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 June 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 August 9, 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 June 30,       Six Months Ended June 30,
                       2000          1999               2000               1999
REVENUES:
Communications    $ 1,560,838      $ 1,569,999      $ 3,136,844     $ 3,201,623
Video compression   1,009,807          907,568        1,725,552       2,343,244
Satellite
transmission
technology          1,190,690                         2,211,468
                 ------------     ------------    -------------     ------------

TOTAL REVENUES      3,761,335        2,477,567        7,073,864       5,544,867
                 ------------     ------------     ------------    -------------

COSTS AND EXPENSES:
Communications        673,972          624,470        1,326,397       1,413,226
Video compression     261,518          384,194          417,085         755,486
Satellite
transmission
technology            799,429                         1,435,677
Selling, general
and administrative  2,857,767        1,539,782        5,558,952       2,954,925
Research and
development           259,882          199,521          513,167         401,328
                -------------     ------------       ----------      ----------
TOTAL COSTS AND
 EXPENSES           4,852,568        2,747,967        9,251,278       5,524,965
                -------------     ------------       ----------      ----------

(LOSS) INCOME
FROM OPERATIONS    (1,091,233)        (270,400)      (2,177,414)         19,902

Interest income         7,390            3,026           18,292           5,572
Interest expense      212,534          203,157          519,444         407,888

LOSS BEFORE TAXES  (1,296,377)        (470,531)      (2,678,566)       (382,414)

INCOME TAX  BENEFIT   360,214          112,500          681,689         223,500


                =============     ============    =============      ==========
NET LOSS           $ (936,163)      $ (358,031)    $ (1,996,877)     $ (158,914)
                =============     ============    =============     ===========


BASIC LOSS PER
COMMON SHARE       $   (0.04)        $  (0.02)       $   (0.10)       $  (0.01)

DILUTED LOSS
PER COMMON SHARE   $   (0.04)        $  (0.02)       $   (0.10)       $  (0.01)

WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING, BASIC
 AND DILUTED      20,916,914       18,947,555        20,849,651      18,885,750

Dilutive effect of:
Employee stock options
Warrants
Weighted average of
common shares
outstanding,
assuming dilution 20,916,914       18,947,555        20,849,651      18,885,750

See notes to consolidated financial statements.


ADVANCED REMOTE COMMUNICATION SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS



                                            June 30,               December 31,
                                     ------------------       ------------------
ASSETS                                       2000                     1999
                                         (Unaudited)
CURRENT ASSETS:
  Cash                                      $228,109                 $857,634
  Accounts receivable - net                3,162,054                4,445,770
  Inventories                              1,132,540                  918,531
  Prepaid expenses and other assets        1,050,638                  925,750
                                     ------------------       ------------------
        Total current assets               5,573,341                7,147,685

PROPERTY - net                               645,486                  705,082
GOODWILL - net                            15,343,720               16,023,480
PATENT - net                              15,771,635               16,334,135
                                     ------------------       ------------------

TOTAL                                    $37,334,182              $40,210,382
                                     ==================       ==================

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                        $1,326,014               $1,831,985
  Accrued expenses                           794,498                1,591,254
  Current portion of notes payable         5,810,173                3,254,688
                                  ------------------       ------------------
        Total current liabilities          7,930,685                6,677,927

NOTES PAYABLE                              2,933,213                6,190,088
DEFERRED TAX LIABILITY                     6,598,026                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                       3,737,500
Common stock, no par value;
100,000,000 shares authorized,
21,053,143 and 20,739,860 shares
issued and outstanding
at 2000 and 1999, respectively            22,113,021               21,459,376
Accumulated deficit                       (5,978,263)              (3,981,386)
                                    ------------------       ------------------
        Total stockholders' equity        19,872,258                17,477,990
                                   ------------------       ------------------

TOTAL                                    $37,334,182               $37,210,382
                                   ==================       ==================

See notes to consolidated financial statements.



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


                                                 Six months ended June 30,
                                               2000                    1999
Operating activities:
Net loss                                   $(1,996,877)             $ (158,914)
  Adjustments to reconcile net loss
  to net cash used in operating activities:
    Deferred tax benefit                      (266,351)               (225,000)
    Issuance of warrants                       139,125
    Depreciation and amortization            1,417,130               1,103,475
Changes in assets and liabilities:
    Accounts receivable, net                 1,283,716                 194,371
    Inventories                               (214,009)                 48,139
    Prepaid expenses and other assets         (124,888)                 50,217
    Accounts payable and accrued expenses   (1,302,726)               (505,590)

                                     -----------------       -----------------
Net cash (used in) provided by
 operating activities                      (1,064,880)                506,698
                                     -----------------       -----------------

Investing activities:
  Capital expenditures                       (115,274)                (94,870)
  Goodwill acquired in acquisition                                    (50,000)

                                     -----------------       -----------------
Net cash used in investing activities        (115,274)               (144,870)
                                     -----------------       -----------------

Financing activities:
  Issuance of series A preferred stock                               3,000,000
  Issuance of common shares, net              378,146
  Issuance of series B preferred stock        737,500
  Payments on line of credit                 (555,000)               (650,000)
  Proceeds from line of credit                955,000
  Cash received from stock options exercised  136,374                  43,143
  Principal payments on notes payable      (1,101,391)               (401,307)

                                    -----------------       -----------------
Net cash provided by financing activities     550,629               1,991,836
                                    -----------------       -----------------

Net (decrease) increase in cash             (629,525)               2,353,664

Cash at beginning of period                  857,634                 416,361
                                    -----------------       -----------------

Cash at end of period                      $ 228,109             $ 2,770,025
                                    =================       =================

SUPPLEMENTAL DISCLOSURE ON NON-CASH
INVESTING AND FINANCING ACTIVITIES:

Common stock issued in
acquisition                                                        $ 151,875
Common stock issued as
payment on accounts payable                                        $ 153,750
Conversion of Series A
Preferred Stock into Series B           $ 3,000,000
Issuance of warrants                      $ 139,125

See notes to consolidated financial statements.




                    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
six months ended June 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 six months ended June 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

                                              6/30/2000             12/31/1999


                                        ----------------       ----------------
Accounts receivable                          $3,164,575               $4,527,058
Less allowance for doubtful accounts
 and sales return reserve                         2,521                   81,288

                                        ----------------       ----------------
                                             $3,162,054               $4,445,770

                                        ----------------       ----------------
Inventory:
Raw materials                                  $817,441                 $497,052
Work in progress                                103,241                  179,072
Finished goods                                  211,858                  242,407

                                        --------------          ----------------
                                             $1,132,540                 $918,531
                                        ----------------        ----------------
Property:

Computers and equipment                      $1,363,359               $1,248,085
Furniture and fixtures                          265,490                  265,490
Leasehold improvements                           55,390                   55,390
                                       ----------------       ----------------
                                              1,684,239                1,568,965

Less accumulated depreciation                 1,038,753                  863,883
                                       ----------------         ----------------
                                               $645,486                 $705,082
                                       ----------------         ----------------

Goodwill                                    $17,481,272              $17,481,272
Less accumulated amortization                 2,137,552                1,457,792
                                         ----------------       ----------------
                                            $15,343,720              $16,023,480

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

Patent                                      $18,000,000              $18,000,000
Less accumulated amortization                 2,228,365                1,665,865
                                       ----------------         ----------------
                                            $15,771,635              $16,334,135
                                       ----------------         ----------------
Accrued expenses:
Taxes payable                                   $58,119                 $482,649
Other accrued expenses                          736,378                1,108,605
                                       ----------------         ----------------
                                               $794,498               $1,591,254
                                       ----------------         ----------------



Depreciation expense was $174,869 and $155,583 for the six months ended June 30,
2000 and 1999,  respectively.  Amortization  expense was $1,242,261 and $947,892
for the six months ended June 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 June 30, 2000 the balance on
the line of credit was  $1,150,000.  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 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 a
principal  payment of $467,000 on notes payable,  which was due on June 30, 2000
to the two  former  owners of  Enerdyne  Technologies,  Inc.  which the  Company
purchased in July 1998. The two former owners held executive  positions with the
Company at June 30, 2000 and one former owner is also a director 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 - 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 June 30, 2000,  there
were 2,840,375 options outstanding under the Plan.

NOTE 6 - 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 (see 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.

In the first six  months of 1999  there were two  segments,  communications  and
video  compression.  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 June 30, 2000 is set
forth below.

                    Commun-     Video          Satellite
                   ications   Compression      Technology        Consolidated
                -----------    -----------     -----------      --------------
Revenues         $1,560,838    $1,009,807       $1,190,690         $3,761,335
Income (loss) from  $20,062     $(744,861)       $(336,434)       $(1,091,233)
operations
Interest income      $1,089        $1,608           $4,693             $7,390
Interest expense    $16,275      $183,945          $12,314           $212,534

Depreciation and    $70,823      $490,590         $148,975           $710,388
amortization





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

                 Commun-          Video           Satellite
                ications       Compression        Technology      Consolidated
             ------------     -----------     ------------         ------------
Revenues       $3,136,844       $1,725,552       $2,211,468         $7,073,864
Income (loss) from$81,037      $(1,589,829)       $(668,622)       $(2,177,414)
operations
Interest income    $5,734           $2,928           $9,630             $18,292
Interest expense  $76,467         $389,156          $53,821            $519,444

Depreciation and $143,235         $976,620         $297,275          $1,417,130
amortization

Total assets   $3,199,451      $27,661,645       $6,473,086         $37,334,182


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

                                                Video
                                                Compression/
                             Communications     Multiplexing       Consolidated
                              -------------    -------------      -------------
Revenues                      $1,569,999         $907,568          $2,477,567
Income (loss) from
operations                       $58,500        $(328,900)          $(270,400)
Interest income                   $2,041             $985              $3,026
Interest expense                  $6,889         $196,268            $203,157

Depreciation and amortization    $73,718         $480,828            $554,546

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

                                                 Video
                                                 Compression/
                            Communications       Multiplexing       Consolidated
                          ----------------      -------------     --------------
Revenues                        $3,201,623         $2,343,244        $5,544,867
Income (loss) from operations     $102,202           $(82,300)          $19,902
Interest income                     $3,654             $1,918            $5,572
Interest expense                    $9,193           $398,695          $407,888
Depreciation and amortization     $146,369           $957,106        $1,103,475
Total assets                    $3,077,774        $30,111,982       $33,189,756

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   Six months          Three months       Six months
            Ended 6/30/2000 Ended 6/30/2000     Ended 6/30/1999  Ended 6/30/1999


United States    $2,982,932     $5,424,805          $2,386,242     $5,339,772

International       778,403      1,649,059              91,325        205,095


                -----------    -----------       -------------    -------------
 Total           $3,761,335     $7,073,864          $2,477,567     $5,544,867

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




<PAGE>



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, and reliance upon QUALCOMM's Network Management Facility
through which the Boatracs'  business unit message  transmissions  are formatted
and processed.  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 June 30, 2000 and 1999

Total revenues for the quarter ended June 30, 2000,  were $3,761,335 an increase
of $1,283,768 or 52%,  compared to total  revenues of $2,477,567 for the quarter
ended June 30, 1999.

Communications  revenues,  which  consist of revenues  from the sale of Boatracs
systems,  software and data transmission and messaging were $1,560,838 or 41% of
total  revenues for the quarter ended June 30, 2000, a net decrease of $9,161 or
1% compared to  $1,569,999  or 63% of total  revenues for the quarter ended June
30, 1999. The decrease in communications  revenue compared to the same period of
the prior year is due  primarily  to a  reduction  in  software  revenues in the
amount of $50,722,  or 17%,  partially offset by increases in MCT sales and data
transmission and messaging and software revenues.

Video  compression  revenues were  $1,009,807  or 27% of total  revenues for the
quarter  ended June 30,  2000,  an increase  of  $102,239,  or 11%,  compared to
$907,568 or 37% of total revenues in the prior comparable  period.  The increase
in video  compression  revenues is due primarily to the first  shipment of a new
product line.

Revenues from satellite transmission  technology were $1,190,690 or 32% of total
revenues  for the  quarter  ended  June 30,  2000.  The  Company  acquired  ICTI
effective August 1, 1999 (Note 3).

Communications  expenses were $673,972 or 43% of communications revenues for the
quarter ended June 30, 2000, an increase of $49,502 or 8%,  compared to $624,470
which represented 40% of communications revenue in the comparable quarter of the
prior year. Overall gross margin for  communications  decreased 3% to 57% in the
quarter ended June 30, 2000 from 60% in the same period of the prior year due to
a decline in the gross  margins on the sale of Boatracs  systems due to customer
mix and data  transmission  and messaging due to certain volume discounts given,
partially offset by an increase in the software margin.

Video compression  expenses were $261,518 or 26% of video  compression  revenues
for the quarter  ended June 30,  2000, a decrease of $122,676 or 32% compared to
$384,194  or 42% of video  compression  revenues in the same period of the prior
year.  The  increase in gross  margin of 16% from the gross margin of 58% in the
second  quarter of the prior  comparable  quarter is primarily due to changes in
the mix of products sold.

Satellite  transmission  technology  expenses  were $799,429 or 67% of satellite
transmission  technology  revenues for the quarter ended June 30, 2000. ICTI was
acquired by the Company effective August 1, 1999.

Selling,  general and  administrative  expenses were  $2,857,767 or 76% of total
revenues for the quarter  ended June 30, 2000, an increase of $1,317,985 or 86%,
compared  to  $1,539,792  or 62% of total  revenues  in the prior  corresponding
quarter.   Of  the  total   expenses  for  the  quarter  ended  June  30,  2000,
approximately $596,000 relates to ICTI, acquired by the Company effective August
1,  1999.  Excluding  the ICTI  expenses,  selling  general  and  administrative
expenses  were  $2,261,745  for the  quarter  ended June 30,  2000  compared  to
$1,539,782  for the prior  comparable  quarter,  an increase of $721,963 or 46%.
Overall,  accounting,  commissions,  insurance,  travel, office expenses, office
rent and salary expenses increased. Salary expense includes certain nonrecurring
severance costs. In addition,  marketing expenses increased significantly due to
the introduction of new products.  Amortization expense increased by $146,034 to
$621,130 for the quarter  ended June 30, 2000  compared to $475,095 in the prior
comparable  period due to the  amortization of goodwill  connected with the ICTI
acquisition (see note 3).

Research and development  expenses were $259,882 or 7% of total revenues for the
quarter  ended June 30, 2000, an increase of $60,361 or 30% compared to research
and  development  expenses of $199,521 or 8% of total revenues in the comparable
quarter of the prior year.

Interest  expense of $212,534 for the second quarter of 2000 and $203,157 in the
second quarter of 1999, primarily represents interest on notes payable issued in
connection with the acquisitions of Enerdyne and ICTI.

The income tax benefit of $360,214 for the quarter ended June 30, 2000 and 1999
represents the  amortization  of a temporary tax difference on the life of a
patent.

For the six months ended June 30, 2000 and 1999

Total  revenues  for the six months  ended June 30,  2000,  were  $7,073,864  an
increase of $1,528,997 or 28% compared to total  revenues of $5,544,867  for the
six months ended June 30, 1999.

Communications  revenues,  which  consist of revenues  from the sale of Boatracs
systems,  software and data  transmission  and messaging were $3,136,844 for the
six months  ended June 30,  2000,  or 44% of total  revenues,  a net decrease of
$64,779 or 2% compared to $3,201,623 or 58% of total  revenues in the six months
ended June 30, 1999. The decrease in communications revenue compared to the same
period of the prior year is due  primarily  to a reduction  in sales of Boatracs
systems in the amount of $87,690,  or 28%, and a reduction in software  revenues
in the amount of $87,088, or 13%, offset by an increase in data transmission and
messaging services and miscellaneous other income.

Video compression  revenues were $1,725,552 or 24% of total revenues for the six
months  ended June 30,  2000,  a  decrease  of  $617,692,  or 26%,  compared  to
$2,343,244 or 42% of total revenues in the prior comparable period. The decrease
in video compression revenues is due primarily to a weak prior quarter.

Revenues from satellite transmission  technology were $2,211,468 or 31% of total
revenues  for the six months  ended June 30,  2000.  The Company  acquired  ICTI
effective August 1, 1999.

Communications expenses were $1,326,397or 42% of communications revenues for the
six  months  ended June 30,  2000,  a decrease  of  $86,829 or 6%,  compared  to
$1,413,226  which  represented 44% of  communications  revenue in the comparable
period of the prior year. The dollar decrease is consistent with the decrease in
communications revenue in the same period.  Communications expense includes data
transmission  and  messaging  expenses of $774,404 for the six months ended June
30, 2000, which remained constant with the prior year.  Overall gross margin for
communications  increased  to 58% in the six months ended June 30, 2000 from 56%
in the same period of the prior year.

Video compression  expenses were $417,085 or 24% of video  compression  revenues
for the six months  ended June 30,  2000, a decrease of $338,401 or 45% compared
to $755,486 or 32% 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% reflects changes in the mix of products sold.

Satellite  transmission  technology expenses were $1,435,677 or 65% of satellite
transmission  technology  revenues.  ICTI was acquired by the Company  effective
August 1, 1999.

Selling,  general and  administrative  expenses were  $5,558,952 or 79% of total
revenues for the six months ended June 30, 2000,  an increase of  $2,604,027  or
88%, compared to $2,954,925 or 53% of total revenues in the prior  corresponding
period.  Of the  total  expenses  for  the  six  months  ended  June  30,  2000,
approximately  $1.1 million relates to ICTI,  acquired by the Company  effective
August 1, 1999. Excluding the ICTI expenses, selling, general and administrative
expenses  were  $4,424,874  for the six months ended June 30, 2000,  compared to
$2,954,925 for the prior comparable  quarter,  an increase of $1,469,949 or 49%.
Overall,  accounting,  commissions,  insurance,  legal, rent and salary expenses
increased,  offset by a minor decrease in shareholder relation expenses.  Salary
expense includes certain  nonrecurring  severance costs. In addition,  marketing
expenses  increased  significantly  due to  the  introduction  of new  products.
Amortization  expense  increased  by $294,369 to  $1,242,261  for the six months
ended June 30, 2000 compared to $947,892 in the prior  comparable  period due to
the acquisition of ICTI.  Depreciation  expense increased by $20,991 to $176,574
for the six  months  ended  June  30,  2000  compared  to  $155,583  in the same
comparable prior period.

Research and development  expenses were $513,167 or 7% of total revenues for the
six months  ended June 30,  2000,  an increase  of  $111,839 or 28%  compared to
research  and  development  expenses of $401,328 or 7% of total  revenues in the
comparable period of the prior year.

Interest  expense in the amount of  $519,444  for the six months  ended June 30,
2000 and $407,888 in the six months ended 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 $681,689  for the six months  ended June 30, 2000 and
$223,500 for the same period in the prior year represents the  amortization of a
temporary tax difference on the life of a patent.

Liquidity and Capital Resources

The Company's cash balance at June 30, 2000 was $228,109, a decrease of $629,525
compared to the December  31, 1999 cash  balance of $857,634.  At June 30, 2000,
working  capital  was  negative  $2,357,344  a decrease of  $2,827,102  from the
working  capital  of  $469,758  at  December  31,  1999  due  primarily  to  the
reclassification  of long term debt to current (Note 4). Cash of $1,064,880  was
used in operating activities,  cash of $115,274 was used in investing activities
and cash of $550,629  was  provided  by  financing  activities  in the first six
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 in June 1999 was  converted  into
Series B Preferred Stock.

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 June 30, 2000, and extending the expiration date to December
29, 2001.  At June 30,  2000,  $1,150,000  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 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
$1,283,716 to $3,162,054 at June 30, 2000 from  $4,445,770 at December 31, 1999.
Property,  net of  accumulated  depreciation,  was  $645,486 at June 30, 2000, a
decrease of $59,596  from  December  31, 1999,  due  primarily  to  depreciation
expense.  Goodwill,  net of accumulated  amortization,  decreased by $679,760 to
$15,343,720 due to amortization expense in the first six months of 2000. Patent,
net of  accumulated  amortization,  decreased  by $562,500 to  $15,771,635  from
December 31, 1999, due to amortization expense in the first six months of 2000.

Accounts  payable  were  $1,326,014  at June 30,  2000,  a decrease  of $505,971
compared to  $1,831,985 at December 31, 1999 and accrued  expenses  decreased by
$796,756 at June 30, 2000 to  $1,042,211  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  $8,743,386  at June 30,  2000,  compared  to
$9,444,776 at December 31, 1999,  relates to a promissory note to a bank entered
into December 1998 and notes owing to the previous  owners of Enerdyne and ICTI.
The balance decreased by $701,390 at June 30, 2000 compared to December 31, 1999
due to payments on the notes in the amount of $1,101,390,  offset by an increase
of $400,000 payable on the line of credit (Note 4).

The Company anticipates making capital expenditures in excess of $300,000 during
2000,  excluding  assets  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.  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.

Year 2000 Issues

The Company has not  experienced  significant  year 2000  issues  subsequent  to
December 31, 1999 and does not  currently  believe  that it will incur  material
costs or experience  material  disruptions in its business  associated  with the
year 2000.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

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

ITEM 2. CHANGES IN SECURITIES

During June 2000,  the Company  issued  211,535  shares of common  stock at fair
market  value ($1.95 per share)  through a private  offering.  In addition,  the
Company  issued 376.25 shares of Series B Preferred  Stock valued at $10,000 per
share.  Three  hundred  shares of the Series B issued were in  exchange  for 300
shares  of  Series A  Preferred  Stock  previously  issued  in 1999.  A total of
$1,175,000 was raised.

During the quarter ended June 30, 2000,  the Company  issued 23,270  warrants to
purchase  common stock to a consultant.  The warrants were issued at fair market
value  and have a life of  three  years  and  were  issued  in  reliance  on the
exemption set forth in Section 4 (2) of the Securities Act of 1933.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

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

On May 23, 2000,  the Company  held its Annual  Meeting of  Shareholders  at the
Wyndham Garden Hotel, 5975 Lusk Boulevard, San Diego, California 92121.

The following directors were elected:
                                                   FOR               AGAINST
Michael L. Silverman                            17,868,733               919
Jon S. Gilbert                                  17,228,281           641,371
Giles H. Bateman                                17,868,701               951
Mitchell G. Lynn                                17,606,250           263,402
Scott T. Boden                                  17,535,101           334,551
Thomas Bernard                                  17,868,171             1,481
Mohammed G. Abutaleb                            17,868,133             1,519
John Major                                      17,868,139             1,513

The following proposal was adopted at the meeting:

An amendment to the Company's  1996 Stock Option Plan  increasing  the number of
available shares to 6,000,000 from 4,000,000.

FOR               AGAINST          ABSTAIN           NON-VOTE
---              -------           -------           --------
14,737,703        206,396           1,247            5,880,582

ITEM 5. OTHER INFORMATION
Inapplicable

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

3.5      Certificate of Determination (filed herewith).

3.6      Certificate of Amendment to Advanced Remote Communications Solutions,
         Inc. Certification of
         Determination (filed herewith).














                                                    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


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



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