SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549
                                 FORM 10 - Q


(Mark One)

 [X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the quarterly period ended:      DECEMBER 31, 2000
                                          -----------------

 [ ] Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the transition period from            to
                                    -----------   ------------


                        Commission File Number:  1-8101


Exact Name of Registrant as
  Specified in Its Charter:     SMTEK INTERNATIONAL, INC.
                                -------------------------


            DELAWARE                               33-0213512
------------------------------                 ------------------
State or Other Jurisdiction of                 I.R.S. Employer
Incorporation or Organization:                 Identification No.



Address of Principal Executive Offices:        2151 Anchor Court
                                               Thousand Oaks, CA 91320

Registrant's Telephone Number:                 (805) 376-2595



Indicate by check mark whether the registrant:  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.          Yes [X]  No [ ]



The registrant had 2,275,883 shares of Common Stock outstanding as of
February 9, 2001.


<PAGE>
PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
               (In thousands except share and per share amounts)



                                               December 31,      June 30,
                                                   2000            2000
                                               ------------      --------
                                               (Unaudited)
                    Assets

Current assets:
  Cash and cash equivalents                      $    204        $    532
  Accounts receivable, less allowance
    for doubtful accounts of $147 and $151         14,433          13,365
  Costs and estimated earnings in excess
    of billings on uncompleted contracts           11,348          10,257
  Inventories, net                                  9,729           6,095
  Prepaid expenses                                    280             180
                                                 --------        --------

     Total current assets                          35,994          30,429
                                                 --------        --------
Property, equipment and improvements, at cost:
  Buildings and improvements                        2,766           2,758
  Plant equipment                                  14,367          12,875
  Office and other equipment                        2,449           2,307
                                                 --------        --------

                                                   19,582          17,940
Less: Accumulated depreciation
  and amortization                                (11,919)        (11,249)
                                                 --------        --------

     Property, equipment and improvements, net      7,663           6,691
                                                 --------        --------
Other assets:
  Goodwill, net                                       474           1,126
  Deposits and other assets                           168             282
                                                 --------        --------

                                                      642           1,408
                                                 --------        --------

                                                 $ 44,299        $ 38,528
                                                 ========        ========


<PAGE>




                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONSOLIDATED BALANCE SHEETS (continued)
              (In thousands except share and per share amounts)



                                               December 31,      June 30,
                                                   2000            2000
                                               ------------      --------
                                               (Unaudited)
    Liabilities and Stockholders' Equity

Current liabilities:
  Bank lines of credit payable                   $ 10,073        $  7,583
  Current portion of long-term debt                 2,353           2,106
  Accounts payable                                 11,003           9,240
  Accrued payroll and employee benefits             1,202           1,150
  Interest payable                                    979             761
  Income taxes payable                              1,217           1,419
  Other accrued liabilities                         1,521           1,797
                                                 --------        --------

     Total current liabilities                     28,348          24,056
                                                 --------        --------

Long-term debt                                      5,729           4,997
                                                 --------        --------

Commitments and contingencies

Stockholders' equity:
  Preferred stock, $1 par value; 1,000,000
    shares authorized; no shares issued
    or outstanding                                    -               -
  Common stock, $.01 par value; 3,750,000
    shares authorized; 2,275,833 and
    2,272,012 shares issued and outstanding
    at December 31, 2000 and June 30, 2000,
    respectively                                       23              23
  Additional paid-in capital                       36,989          36,972
  Accumulated deficit                             (26,696)        (27,430)
  Accumulated other comprehensive loss                (94)            (90)
                                                 --------        --------

     Total stockholders' equity                    10,222           9,475
                                                 --------        --------

                                                 $ 44,299        $ 38,528
                                                 ========        ========





    See accompanying notes to unaudited consolidated financial statements.

<PAGE>
                        SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF OPERATIONS AND
                          COMPREHENSIVE INCOME (LOSS) (Unaudited)
                          (In thousands except per share amounts)


<TABLE>
<CAPTION>
                                              Three Months Ended       Six
Months Ended
                                                  December 31,
December 31,
                                              -------------------     ----------
---------
                                                2000        1999       2000
1999
                                              -------     -------     -------
-------
<S>                                           <C>         <C>         <C>
<C>
Revenues                                      $24,148     $14,441     $45,072
$29,652
Cost of goods sold                             21,315      12,576      39,648
25,954
                                              -------     -------     -------
-------
Gross profit                                    2,833       1,865       5,424
3,698
                                              -------     -------     -------
-------
Operating expenses:
  Administrative and selling expenses           1,736       1,426       3,318
2,776
  Goodwill amortization                           326         326         652
652
                                              -------     -------     -------
-------
Total operating expenses                        2,062       1,752       3,970
3,428
                                              -------     -------     -------
-------
Operating income                                  771         113       1,454
270
                                              -------     -------     -------
-------
Non-operating income (expense):
  Interest expense, net                          (485)       (176)       (801)
(389)
  Other expense, net                               (5)         (9)        (37)
(11)
                                              -------     -------     -------
-------
Total non-operating expense                      (490)       (185)       (838)
(400)
                                              -------     -------     -------
-------
Income (loss) from continuing
  operations before income taxes                  281         (72)        616
(130)
Income tax provision (benefit)                   (138)         10        (118)
30
                                              -------     -------     -------
-------
Income (loss) from continuing operations          419         (82)        734
(160)
Income from discontinued operations,
  net of tax                                      -            41         -
254
Loss on sale of discontinued operations,
  net of tax                                      -          (661)        -
(661)
                                              -------     -------     -------
-------
Net income (loss)                                 419        (702)        734
(567)

Other comprehensive income (loss):
  Foreign currency translation adjustments         22        (150)         (4)
141
  Reclassification of foreign currency
    translation adjustments included in
    loss on sale of discontinued operations       -           756         -
756
                                              -------     -------     -------
-------
Total other comprehensive income (loss)            22         606          (4)
897
                                              -------     -------     -------
-------
Comprehensive income (loss)                   $   441     $   (96)    $   730
$   330
                                              =======     =======     =======
=======


Basic and diluted earnings (loss) per share:
  Income (loss) from continuing operations    $  0.18     $ (0.04)    $  0.32
$ (0.07)
  Income from discontinued operations             -          0.02         -
0.11
  Loss on sale of discontinued operations         -         (0.29)        -
(0.29)
                                              -------     -------     -------
-------
       Earnings (loss) per share              $  0.18     $ (0.31)    $  0.32
$ (0.25)
                                              =======     =======     =======
=======

Shares used in computing basic and
  diluted earnings (loss) per share
    Basic                                       2,276       2,268       2,275
2,268
                                              =======     =======     =======
=======
    Diluted                                     2,350       2,268       2,328
2,268
                                              =======     =======     =======
=======


          See accompanying notes to unaudited consolidated financial statements.

<PAGE>
                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                (In thousands)

                                                         Six Months Ended
                                                           December 31,
                                                       ---------------------
                                                        2000          1999
                                                       -------       -------
Cash flows from operating activities:
  Net income (loss)                                    $   734       $  (567)
  Adjustments to reconcile net income (loss) to net
   cash used in operating activities:
    Depreciation and amortization                        1,636         1,750
    Loss on sale of discontinued operations                -             661
    (Increase) decrease in accounts receivable          (1,117)          188
    Increase in costs and estimated earnings in
      excess of billings on uncompleted contracts       (1,090)       (1,694)
    Increase in inventories                             (3,665)         (565)
    Increase (decrease) in accounts payable              1,814        (1,772)
    Decrease in other accrued liabilities                 (208)         (246)
    Other, net                                              68           (30)
                                                       -------       -------
Net cash used in operating activities                   (1,828)       (2,275)
                                                       -------       -------

Cash flows from investing activities:
  Capital expenditures                                  (1,974)         (414)
  Net proceeds from sale of discontinued operations         -          2,689
  Proceeds from sale of assets                               2           111
                                                       -------       -------
Net cash provided by (used in) investing activities     (1,972)        2,386
                                                       -------       -------

Cash flows from financing activities:
  Proceeds from (repayments of) bank lines of credit     2,519          (400)
  Proceeds from long-term debt                           1,663           -
  Repayments of long-term debt                            (705)         (868)
  Proceeds from foreign government grants                  -             251
                                                       -------       -------
Net cash provided by (used in) financing activities      3,477        (1,017)
                                                       -------       -------

Effect of exchange rate changes on cash                     (5)           62
                                                       -------       -------
Decrease in cash and cash equivalents                     (328)         (844)

Cash and cash equivalents at beginning of period           532         4,997
                                                       -------       -------
Cash and cash equivalents at end of period             $   204       $ 4,153
                                                       =======       =======

Supplemental cash flow information:
  Interest paid                                        $   588       $   644
  Income taxes paid                                         47           850
Non-cash investing activities:
  Capital expenditures financed by lease
    obligations and notes payable                          -           1,243
  Other                                                     22           -

    See accompanying notes to unaudited consolidated financial statements.

<PAGE>
                  SMTEK INTERNATIONAL, INC. AND SUBSIDIARIES
             NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                  Six Months Ended December 31, 2000 and 1999

Note 1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

     SMTEK International, Inc. (the "Company") is an electronics manufacturing
services ("EMS") provider to original equipment manufacturers ("OEMs")
primarily in the computer, telecommunications, instrumentation, medical,
financial services automation, industrial and aerospace industries.  The
Company provides integrated solutions to OEMs across the entire product life
cycle, from design to manufacturing to end-of-life services, for the worldwide
low-to-medium volume, high complexity segment of the EMS industry.  The
Company's operating units are located in Thousand Oaks, California; San Diego,
California; Fort Lauderdale, Florida; and Craigavon, Northern Ireland.

     On November 12, 1999, the Company sold its printed circuit board ("PCB")
operation, Irlandus Circuits Ltd. ("Irlandus").  The results of operations of
Irlandus, which represented a separate segment of the Company's business, are
shown as a discontinued operation for the three and six months ended December
31, 1999 in the accompanying unaudited consolidated statements of operations
and comprehensive income.

     All significant intercompany transactions and accounts have been
eliminated in consolidation.  In the opinion of the Company's management, the
accompanying consolidated financial statements reflect all adjustments
(consisting of normal recurring accruals) necessary to present fairly the
Company's financial position at December 31, 2000 and its results of
operations and its cash flows for the three and six months ended December 31,
2000 and 1999.

     The Company uses a 52-53 week fiscal year ending on the Friday closest to
June 30, which for fiscal year 2000 fell on June 30, 2000.  The actual interim
periods ended on December 29, 2000 and December 31, 1999.  In the accompanying
consolidated financial statements, the 2000 fiscal year end is shown as June
30 and the interim period end for both years is shown as December 31 for
clarity of presentation.

     Certain notes and other information are condensed or omitted from the
interim financial statements presented in this Quarterly Report on Form
10-Q.  Therefore, these financial statements should be read in conjunction
with the Company's 2000 Annual Report on Form 10-K as filed with the
Securities and Exchange Commission on August 20, 2000.

     Certain reclassifications have been made to the interim fiscal 2000
financial statements to conform with the interim fiscal 2001 financial
statement presentation.  Such reclassifications had no effect on the Company's
results of operations or stockholders' equity.


Note 2 - DISCONTINUTED OPERATIONS

     On November 12, 1999, the Company sold Irlandus, its PCB fabrication
operation in Northern Ireland.  The purchaser was a management buy-out team.
The purchase price was negotiated on an arms length basis between the Company
and the purchaser.  The gross sales proceeds in the aggregate amount of
2,800,000 pounds sterling (approximately $4,523,000) consisted of a cash
dividend of 500,000 pounds sterling paid by Irlandus just prior to closing and
cash of 2,300,000 pounds sterling paid by the purchaser at closing.  After
giving consideration to disposal costs and the cash of approximately $1.5
million which stayed with the divested operation, the net cash proceeds of
this transaction amounted to approximately $2.7 million.

     Irlandus was the sole operating unit comprising the Company's PCB
segment.  Accordingly, operating results for Irlandus have been presented in
the accompanying consolidated statements of operations and comprehensive
income (loss) as a discontinued operation, and are summarized as follows (in
thousands):

                                  Three months ended     Six months ended
                                  December 31, 1999      December 31, 1999
                                  ------------------     -----------------

Net sales                               $  851                 $3,383
                                        ======                 ======
Operating income                        $   41                 $  131
                                        ======                 ======
Income from discontinued
  operations, net of tax                $   41                 $  254
                                        ======                 ======

     Net assets of Irlandus consisted of the following (in thousands):

                                               November 12, 1999
                                                  (sale date)
                                               -----------------

Current assets                                     $ 4,099
Property, equipment and improvements                 3,447
Current liabilities                                 (2,081)
Long-term debt                                      (1,314)
                                                   -------
  Net assets                                       $ 4,151
                                                   =======

     The loss on sale of Irlandus, shown in the accompanying consolidated
statements of operation and comprehensive income (loss) as "Loss on sale of
discontinued operations," is comprised as follows (in thousands):

Gross sales proceeds                               $ 4,523
Less disposal costs                                   (277)
                                                   -------
Net sales proceeds                                   4,246

Less net assets of Irlandus                         (4,151)
                                                   -------
Gain on sale before elimination of foreign
  currency translation account balance                  95

Elimination of Irlandus' foreign
  currency translation account balance                (756)
                                                   -------
Loss on sale of discontinued operations            $  (661)
                                                   =======

     Prior to the sale, Irlandus had an accumulated foreign currency
translation loss of $756,000, which was carried as a reduction of consolidated
stockholders' equity.  In accordance with Statement of Financial Accounting
Standards ("SFAS") No. 52, "Foreign Currency Translation," this amount has
been included in the determination of the loss on sale of discontinued
operations and in accordance with SFAS No. 130, "Reporting Comprehensive
Income," an equal and offsetting amount is reported as other comprehensive
income in the accompanying consolidated statements of operations and
comprehensive income (loss).


Note 2 - EARNINGS PER SHARE

     Basic earnings per share is computed by dividing net income available to
common stockholders by the weighted average number of common shares
outstanding during the period.  Diluted earnings per share reflects the
potential dilution that could occur if securities or other contracts to issue
Common Stock were exercised or converted into Common Stock or resulted in the
issuance of Common Stock that then shared in the earnings of the Company.

     Common stock equivalents used in the determination of diluted earnings
per share include the effect, when such effect is not antidilutive, of the
Company's outstanding employee stock options and stock purchase warrants, the
7% Convertible Subordinated Debentures (which are convertible into 8,075
shares of Common Stock at $40.00 per share of Common Stock), and the 8-1/2%
Convertible Subordinated Debentures (which are convertible into 7,435 shares
of Common Stock at $212.60 per share of Common Stock).  The following is a
summary of the calculation of basic and diluted earnings per share (dollars in
thousands, except per share data):

                                      Three months ended    Six months ended
                                      December 31, 2000     December 31, 2000
                                      -----------------     -----------------

Net income                                $     419             $     734
                                          =========             =========

Weighted average shares:
  Basic weighted average number of
    common shares outstanding             2,275,833             2,275,467
  Dilutive effect of outstanding
    common stock equivalents                 74,535                53,004
                                          ---------             ---------
      Diluted weighed average number
        of common shares outstanding      2,350,368             2,328,471
                                          =========             =========

Earnings per share:
  Basic                                   $    0.18             $    0.32
                                          =========             =========
  Diluted                                 $    0.18             $    0.32
                                          =========             =========

     Options and warrants to purchase 362,744 shares of Common Stock at prices
ranging from $5.75 to $30.20 were outstanding at December 31, 2000 but were
not included in the computation of diluted earnings per share for the three
and six months then ended because the exercise price of these securities was
greater than the average market price of the Common Stock.

     Because the Company had a loss from continuing operations for the three
and six months ended December 31, 1999, there were no common stock equivalents
which had a dilutive effect on earnings per share for such periods.  If the
Company had reported income from continuing operations rather than a loss,
outstanding stock options to purchase 1,112 shares of Common Stock at an
exercise price of $3.38 would have been included in the computation of diluted
earnings per share, and stock options and warrants to purchase 384,099 shares
at exercise prices ranging from $3.88 to $70.00 per share would have been
excluded from the computation of diluted earnings per share because such
exercise prices were greater than the average market price of Common Stock.


Note 3 - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED
          CONTRACTS

     Costs and estimated earnings in excess of billings on uncompleted
contracts consists of revenue recognized under electronics assembly contracts,
which amounts were not billable at the balance sheet date.  Substantially all
of the unbilled amount is expected to be billed and collected within 180 days
of the balance sheet date.  The components of costs and estimated earnings in
excess of billings on uncompleted contracts are as follows (in thousands):

                                               December 31,     June 30,
                                                   2000           2000
                                               ------------     --------
  Costs incurred to date on
    uncompleted contracts                        $ 77,239       $ 56,381
  Estimated earnings based on
    percentage of completion                        9,735          6,889
                                                 --------       --------
                                                   86,974         63,270
  Less:  Billings to date                         (75,626)       (53,013)
                                                 --------       --------
    Total costs and estimated
      earnings in excess of billings
      on uncompleted contracts                   $ 11,348       $ 10,257
                                                 ========       ========


Note 4 - INVENTORIES

     Inventories consist of the following (in thousands):

                                               December 31,     June 30,
                                                   2000           2000
                                               ------------     --------
  Raw materials                                   $6,791         $3,894
  Work in process                                  2,835          2,129
  Finished goods                                     103             72
                                                  ------         ------
                                                  $9,729         $6,095
     Total inventories                            ======         ======


Note 5 - FINANCING ARRANGEMENTS

     The Company has a credit facility for its domestic operating units which
consists of a $7 million working capital line secured by accounts receivable,
inventory and equipment.  Borrowings under the credit agreement bear interest
at the bank's prime rate.  The bank's prime rate was 9.50% at December 31,
2000, and was 8.50% as of February 1, 2001.  At December 31, 2000, $7,534,000
was borrowed under this credit facility.  Subsequent to December 31, 2000, the
bank agreed to increase the borrowing limit to $10 million.  This credit
facility expires on July 6, 2001.

     The Company also has a credit facility agreement with Ulster Bank Markets
for its Northern Ireland operating company.  This agreement consists of an
accounts receivable revolver, with maximum borrowings equal to the lesser of
70% of eligible receivables or 2,250,000 pounds sterling (approximately
$3,375,000 at December 31, 2000), and bears interest at the bank's base rate
(6.00% at December 31, 2000) plus 2.00%.  At December 31, 2000, borrowings
outstanding under this credit facility amounted to approximately $2,539,000
and the amount available to borrow based on the advance rate against
receivables was approximately $547,000.  The credit facility agreement with
Ulster Bank Markets expires on October 31, 2001.

     During the six months ended December 31, 2000 and December 31, 1999, the
Company borrowed $1,663,000 and $1,243,000, respectively, under capital leases
and notes payable to finance equipment purchases.


Note 6 - INCOME TAXES

     The Company is currently appealing with the Internal Revenue Service
("IRS") a federal income tax assessment related to tax refunds received in
1995 which were subsequently disallowed by the IRS, as described in more
detail in the Company's latest Annual Report on Form 10-K.  The tax assessment
and related interest expense were recorded by the Company in its financial
statements for the year ended June 30, 1999.  Additional interest expense has
been accrued since that date.  On the basis of information recently received
from its tax advisor on this matter, as of December 31, 2000 the Company
reduced its tax liability by $192,000, recognized an income tax benefit of
$154,000, and increased its accrued interest expense by $132,000.  After
giving effect to these adjustments, at December 31, 2000 the Company's
recorded federal tax liability associated with this assessment is
approximately $1,195,000 and accrued interest thereon is approximately
$850,000.


Note 7 - COMMITMENTS AND CONTINGENCIES

     In October 1999, a lawsuit was filed against the Company by two of its
shareholders in the Superior Court of Ventura County, California.  The action
purports to arise out of the merger of the Company with Jolt Technology, Inc.
in June 1998.  The lawsuit asserts claims against the Company and certain of
its present and former officers and directors and an income tax advisor for
breach of contract, common law fraud, and violation of the California
Corporate Securities Act.

     The Company denies the allegations asserted in the lawsuit.  In January
2001, an out-of-court-settlement was reached  which is in the process of being
finalized.  There is no adverse financial impact on the Company as a result of
this settlement.


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

     Certain statements made below are forward-looking in nature and reflect
the Company's current expectations and plans.  Such statements involve various
risks and uncertainties that could cause actual results to differ materially
from those currently expected by the Company.  Meaningful factors that might
cause such differences include, but are not limited to, significant historical
losses, limited capital resources and a continuing need for financing,
dependence on key personnel, concentration of revenues among major customers,
industry conditions, competition, environmental matters, dependence on
suppliers and other factors, as described in more detail in the Company's most
recently filed Form 10-K and the section titled "Risk Factors" in the
Company's Registration Statement on Form S-3 (No. 333-62621) on file with the
Securities and Exchange Commission.


RESULTS OF OPERATIONS

     Consolidated revenues for the three and six months ended December 31,
2000 were $24,148,000 and $45,072,000, respectively, compared to $14,441,000
and $29,652,000, respectively, for the three and six months ended December 31,
1999.  The increases of $9,707,000, or 67%, for the three months ended
December 31, 2000 and $15,420,000, or 52%, for the six months ended December
31, 2000, compared to the same periods of the prior year, were primarily due
to an increase in business from existing 1999 customers.

     Although the significant revenue growth in the latest three and six month
periods compared to the prior year caused fixed costs to be spread over a
larger volume of production, the resultant beneficial effects on the Company's
gross profit percentage were offset by higher material costs and manufacturing
inefficiencies due to the non-level pattern of material receipts caused by the
industry-wide part shortages of certain electronic components.  Consolidated
gross profit for the three months ended December 31, 2000 was $2,833,000
(11.7% of sales) compared to $1,865,000 (12.9% of sales) for the three months
ended December 31, 1999.  Consolidated gross profit for the six months ended
December 31, 2000 was $5,424,000 (12.0% of sales) compared to $3,698,000
(12.5% of sales) for the six months ended December 31, 1999.

     Administrative and selling expenses increased to $1,736,000 and
$3,318,000 for the three and six months ended December 31, 2000, respectively,
from $1,426,000 and $2,776,000 for the three and six months ended December 31,
1999, respectively.  The increase of $310,000, or 22%, for the three months
ended December 31, 2000, and $542,000, or 20%, for the six months ended
December 31, 2000 is due primarily to expansion of the Company's corporate
staff and increased legal expenses associated with the litigation discussed in
Note 7 to the accompanying unaudited consolidated financial statements.

     Total interest expense was $485,000 for the three months ended December
31, 2000 compared to $176,000 for the three months ended December 31, 1999,
and $801,000 for the six months ended December 31, 2000 compared to $389,000
for the six months ended December 31, 1999.  There are three reasons for the
increases of $309,000 and $412,000 for the three and six months ended December
31, 2000, respectively, over the comparable periods of the prior year.  First,
the Company experienced an increase in the line of credit borrowings due
mainly to the Company's growth and to increases in material purchases for
inventory caused by the industry-wide shortages of certain electronic
components.  For more discussion on the Company's liquidity, refer to section
titled "Liquidity and Capital Resources."  Secondly, interest rates during
this period increased over 1%.  Third, as discussed in Note 6 to the
accompanying unaudited consolidated financial statements, at December 31, 2000
the Company increased its accrued interest on a federal tax liability by
$132,000 based on information received from its tax advisor.

     The Company had an income tax benefit of $138,000 and $118,000 in the
three and six month periods ended December 31, 2000, respectively.  These
amounts reflect a $154,000 income tax benefit resulting from the reduction of
the recorded liability for a federal tax assessment related to prior years, as
discussed in Note 6 to the accompanying unaudited financial statements.
Without this $154,000 tax benefit, the Company would have reported income tax
expense of $16,000 and $36,000 in the three and six month periods ended
December 31, 2000, respectively, compared to income tax expense of $10,000 and
$30,000 in the three and six month periods ended December 31, 1999,
respectively.  These income tax expense amounts, after taking into account the
nondeductibility of the Company's goodwill amortization, are less than the
statutory income tax rates due to the utilization of net operating loss
carryforwards.  Based on its level of historical losses, the Company continues
to carry a full valuation allowance for its net deferred income tax assets.

     Income from continuing operations was $419,000 for the three months ended
December 31, 2000, or $0.18 per basic share, compared to a loss from
continuing operations of $82,000, or $0.04 per basic share, for the three
months ended September 30, 1999. Income from continuing operations was
$734,000 for the six months ended December 31, 2000, or $0.32 per basic share,
compared to a loss from continuing operations of $160,000, or $0.07 per share.
The improvement is due to increased gross profit which was partially offset by
increases in administrative and selling expenses and interest expense.


RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1998, Statement of Financial Accounting Standards ("SFAS") No.
133, "Accounting for Derivative Instruments and Hedging Activities" was
issued, which will require recognition of all derivatives as either assets or
liabilities on the balance sheet at fair value.  The Company adopted SFAS No.
133, as amended by SFAS No. 137 and SFAS No. 138, in the first quarter of
fiscal 2001.  The adoption of SFAS No. 133 had no impact on the Company's
consolidated financial statements.

     In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial
Statements."  The objective of SAB No. 101 is to provide further guidance on
revenue recognition issues in the absence of authoritative literature
addressing a specific arrangement or a specific industry.  The Company is
required to follow the guidance in SAB No. 101 no later than the fourth
quarter of its fiscal year 2001.  The Company believes adherence to the
provisions of SAB No. 101 will not have an impact on the Company's financial
position or results of operations.

     In March 2000, the Financial Accounting Standards Board ("FASB") issued
FASB Interpretation No. 44 ("Interpretation No. 44"), "Accounting for Certain
Transactions Involving Stock Compensation."  Interpretation No. 44 provides
criteria for the recognition of compensation expense in certain stock-based
compensation arrangements that are accounted for under Accounting Principles
Board Opinion No. 25, "Accounting for Stock-Based Compensation."
Interpretation No. 44 was effective July 1, 2000, with certain provisions that
are effective retroactively to December 15, 1998 and January 12, 2000.  The
Company adopted Interpretation No. 44 effective July 1, 2000.  The impact of
the adoption of Interpretation No. 44 on the Company's consolidated financial
statements was not material.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's primary sources of liquidity are its cash and cash
equivalents, which amounted to $204,000 at December 31, 2000, and its bank
lines of credit.  During the six months ended December 31, 2000, cash and cash
equivalents decreased by $328,000.  This decrease resulted from cash used in
operations of $1,828,000 and for capital expenditures of $1,974,000, offset by
an increase in bank lines of credit and other debt of $3,477,000.

     Cash used by operating activities of $1,828,000 in the six months ended
December 31, 2000 was caused primarily by an increase in the components of
operating working capital (accounts receivable, cost and estimated earnings in
excess of billings on uncompleted contracts, inventories and accounts payable)
due to a ramp-up in production volume to meet increased customer demand, and
also to the continuing shortages of certain electronic components, which has
lengthened the time necessary to complete assembly jobs.  There are signs that
the electronic component shortages are beginning to ease.  Substantially all
of the costs and estimated earnings in excess of billings on uncompleted
contracts at December 31, 2000 is expected to be billed prior to the end of
the current fiscal year.

     As further discussed in Note 5 to the accompanying unaudited consolidated
financial statements, the Company has bank lines of credit to finance the
working capital requirements of its domestic and foreign operations.  At
December 31, 2000, the Company had approximately $547,000 available to borrow
under its European bank line of credit, while there was no borrowing
availability under the U.S. bank line of credit.  Subsequent to December 31,
2000, the Company's U.S. bank agreed to increase the Company's domestic line
of credit from $7 million to $10 million.

     Capital expenditures during the six months ended December 31, 2000 were
$1,974,000, of which $1,663,000 was financed by capital leases and notes
payable.  The Company anticipates that additional capital expenditures of as
much as $2.5 million may be required during the remainder of fiscal 2001,
primarily to expand production capacity at its Thousand Oaks and San Diego
plants.  The substantial majority of these capital expenditures is expected to
be financed by capital leases and/or installment loans.

     As more fully described in Note 6 to the accompanying unaudited
consolidated financial statements, at December 31, 2000 the Company has a
federal tax assessment liability of approximately $1,195,000 and a related
accrued interest liability of approximately $850,000.  The Company has
appealed the assessment, and the IRS appeals process is nearly complete.  At
the conclusion of the appeals process, the Company intends to seek an
installment payment plan with the IRS.

     Management believes that the Company's cash resources and borrowing
capacity on its working capital lines of credit are sufficient to fund its
operations for at least the next 12 months.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company's financial instruments include cash and cash equivalents,
accounts receivable and short-term and long-term debt.  At December 31, 2000,
the carrying amount of long-term debt (including the current portion thereof)
was $8,082,000 and the related fair value was $7,608,000.  The carrying values
of the Company's other financial instruments approximated their fair values.
The fair value of the Company's financial instruments is estimated based on
quoted market prices for the same or similar issues.  A change in interest
rates of one percent would result in an annual impact on interest expense of
approximately $113,000.

     It is the policy of the Company not to enter into derivative financial
instruments for speculative purposes.  The Company, from time to time, may
enter into foreign currency forward exchange contracts in an effort to protect
itself from adverse currency rate fluctuations on foreign currency commitments
entered into in the ordinary course of business.  These commitments are
generally for terms of less than one year.  The foreign currency forward
exchange contracts are executed with banks believed to be creditworthy and are
denominated in currencies of major industrial countries.  Any gain or loss
incurred on foreign currency forward exchange contracts is offset by the
effects of currency movements on the respective underlying hedged
transactions.  The Company did not have any open foreign currency forward
exchange contracts at December 31, 2000.

     A portion of the Company's operations consists of investments in a
foreign operating unit.  As a result, the Company's financial results have
been and may continue to be affected by changes in foreign currency exchange
rates.


PART II.  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

     In October 1999, a lawsuit was filed against the Company by two of its
shareholders in the Superior Court of Ventura County, California.  The action
purports to arise out of the merger of the Company with Jolt Technology, Inc.
in June 1998.  The lawsuit asserts claims against the Company and certain of
its present and former officers and directors and an income tax advisor for
breach of contract, common law fraud, and violation of the California
Corporate Securities Act.

     The Company denies the allegations asserted in the lawsuit.  In January
2001, an out-of-court-settlement was reached which is in the process of being
finalized.  There is no adverse financial impact on the Company as a result of
this settlement.


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

     At the 2000 Annual Meeting of Stockholders held on November 9, 2000,
Gregory L. Horton and Bruce E. Kanter were elected as Class II directors.
Directors whose terms of office continued after the meeting were Clay M.
Biddinger, James P. Burgess and Oscar B. Marx III.  In addition to the
election of directors, the stockholders approved an amendment to the 1996
Stock Incentive Plan to increase the number of shares of Common Stock that can
be issued thereunder by 300,000, and approved certain amendments to the 1998
Non-Employee Directors Stock Plan.  There were 2,275,475 shares of Common
Stock outstanding and entitled to vote at this meeting.  Following is a
summary of the results of voting:


                                           Votes
                                         Against or      Votes
                            Votes For     Withheld     Abstained    Unvoted
                            ---------    ----------    ---------    -------

Election of Gregory L.
  Horton as director        2,037,638       8,705

Election of Bruce E.
  Kanter as director        1,944,802       9,040

Amendment to the 1996
  Stock Incentive Plan      1,223,159      85,101        3,299      963,916

Amendments to the 1998
  Non-Employee Directors
  Stock Plan                1,210,321      96,475        4,763      963,916


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

a.  Exhibits:

    27      Financial Data Schedule (electronic filing only)

b.  Reports on Form 8-K:

         The Company did not file any reports on Form 8-K during the quarter
    ended December 31, 2000.





                                   SIGNATURE

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



        February 9, 2001                      /s/ Richard K. Vitelle
---------------------------------        -----------------------------------
            Date                                Richard K. Vitelle
                                                Vice President - Finance
                                                (as Duly Authorized and
                                                Principal Financial Officer)
15



</TABLE>