SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    Form 10-Q


                   Quarterly Report under Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934


               For the quarterly period ended: September 30, 2000
                                               ------------------

                        Commission File Number: 0-19589
                                                -------


                           ARGUSS COMMUNICATIONS, INC.
           ----------------------------------------------------------
                       (formerly "Arguss Holdings, Inc.")

             (Exact name of Registrant as specified in its Charter)


                    Delaware                                   02-0413153
        ---------------------------------               ------------------------
         (State or other jurisdiction of                    (I.R.S. Employer
          incorporation of organization)                 Identification Number)


 One Church Street, Suite 302, Rockville, Maryland                20850
---------------------------------------------------            -----------
     (Address of Principal Executive Offices)                   (Zip Code)


Registrant's Telephone Number, including Area Code:            301-315-0027




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:
         -----             -----


As of November 1, 2000, there were 14,254,813  shares of Common Stock, $ .01 par
value per share, outstanding.



<PAGE>


                           ARGUSS COMMUNICATIONS, INC.


                                      INDEX


Part I - Financial Information:                                             Page
                                                                            ----

         Item 1 - Financial Statements


                  Consolidated Balance Sheets (Unaudited) -
                  September 30, 2000 and December 31, 1999                     3

                  Consolidated Statements of Operations (Unaudited) -
                  Three Months and Nine Months Ended September 30, 2000
                  and September 30, 1999                                       4

                  Consolidated Statements of Cash Flows (Unaudited) -
                  Nine Months Ended September 30, 2000 and
                  September 30, 1999                                           5

                  Notes to Consolidated Financial Statements
                  (Unaudited)                                                  7


         Item 2 - Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                         12

         Item 3 - Quantitative and Qualitative Disclosure about Market Risk   15

Part II - Other Information                                                   16

         Items 1 through 6

         Signatures

         Exhibits



                                       2
<PAGE>


                           ARGUSS COMMUNICATIONS, INC.

                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)


                                                       Sept. 30,      Dec. 31,
                                                          2000          1999
                                                     ------------   ------------
Assets

Current assets:
Cash                                                 $  2,882,000   $  5,498,000
Restricted cash from customer advances                    219,000      1,752,000
Accounts receivable trade, net of allowance
  for doubtful accounts of $118,000 and
  $108,000 in 2000 and 1999, respectively              70,462,000     37,775,000
Costs and earnings in excess of billings               21,449,000      6,825,000
Inventories                                             5,298,000      4,534,000
Other current assets                                    2,478,000      1,732,000
Deferred income taxes                                   1,829,000      1,829,000
                                                     ------------   ------------
    Total current assets                              104,617,000     59,945,000

Property, plant and equipment, net                     46,753,000     37,048,000
Goodwill, net                                         129,413,000    102,208,000
                                                     ------------   ------------
                                                     $280,783,000   $199,201,000
                                                     ============   ============

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of long-term debt                    $  7,357,000   $  7,340,000
Short-term borrowings                                  77,064,000     35,000,000
Accounts payable                                       25,811,000     18,551,000
Billings in excess of costs and earnings                2,638,000           --
Customer advances                                           4,000      1,201,000
Accrued expenses and other liabilities                 15,888,000      9,496,000
Due to former shareholders of acquired companies          995,000        650,000
                                                     ------------   ------------
    Total current liabilities                         129,757,000     72,238,000
                                                     ------------   ------------

Long-term debt, excluding current portion              14,512,000     19,423,000
Deferred income taxes                                   4,684,000      4,425,000
                                                     ------------   ------------
    Total liabilities                                 148,953,000     96,086,000
                                                     ------------   ------------

Stockholders' equity:
Common stock $.01 par value                               143,000        130,000
Additional paid-in capital                            111,774,000     92,598,000
Common stock issuable to former shareholders
  of acquired companies                                   995,000        500,000
Retained earnings                                      18,918,000      9,887,000
                                                     ------------   ------------
    Total stockholders' equity                        131,830,000    103,115,000
                                                     ------------   ------------
                                                     $280,783,000   $199,201,000
                                                     ============   ============


The accompanying notes are an integral part of these financial statements.



                                       3
<PAGE>


                                           ARGUSS COMMUNICATIONS, INC.

                                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                      Three Months Ended                Nine Months Ended
                                              Sept. 30, 2000   Sept. 30, 1999   Sept. 30, 2000   Sept. 30, 1999
                                              --------------   --------------   --------------   --------------

<S>                                            <C>              <C>              <C>              <C>
Net sales                                      $  78,532,000    $  53,351,000    $ 200,685,000    $ 142,965,000
Cost of sales, excluding depreciation             56,261,000       39,642,000      147,573,000      107,456,000
                                               -------------    -------------    -------------    -------------
  Gross profit, excluding depreciation            22,271,000       13,709,000       53,112,000       35,509,000

Selling, general and administrative expenses       5,794,000        3,904,000       16,270,000       11,990,000
Depreciation                                       3,016,000        2,195,000        8,127,000        6,219,000
Goodwill amortization                              1,786,000        1,208,000        4,874,000        3,211,000
Non-cash stock compensation                          193,000             --            332,000             --
Engineering and development expenses                 309,000          322,000          809,000        1,006,000
                                               -------------    -------------    -------------    -------------
  Operating income                                11,173,000        6,080,000       22,700,000       13,083,000
                                               -------------    -------------    -------------    -------------

Other income (expense):
  Interest income and other                          134,000          186,000          400,000          380,000
  Interest expense                                (2,090,000)      (1,113,000)      (5,036,000)      (3,168,000)
                                               -------------    -------------    -------------    -------------

Income before income taxes                         9,217,000        5,153,000       18,064,000       10,295,000
Income taxes                                      (4,609,000)      (2,301,000)      (9,032,000)      (5,267,000)
                                               -------------    -------------    -------------    -------------
  Net Income                                   $   4,608,000    $   2,852,000    $   9,032,000    $   5,028,000
                                               =============    =============    =============    =============

Earnings per common share:
               -basic                                  $ .32            $ .24            $ .66            $ .43
                                                       =====            =====            =====            =====
               -diluted                                $ .31            $ .22            $ .63            $ .39
                                                       =====            =====            =====            =====


Weighted average shares outstanding:
               - basic                            14,205,000       11,889,000       13,779,000       11,798,000
                                                  ==========       ==========       ==========       ==========
               - diluted                          14,908,000       13,169,000       14,343,000       12,935,000
                                                  ==========       ==========       ==========       ==========
</TABLE>


The accompanying notes are an integral part of these financial statements.



                                       4
<PAGE>



                           ARGUSS COMMUNICATIONS, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                    Nine Months Ended Sept. 30,
                                                        2000            1999
                                                        ----            ----

Cash flows from operating activities:
    Net income                                     $  9,032,000    $  5,028,000

Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
    Depreciation                                      8,127,000       6,219,000
    Goodwill amortization                             4,874,000       3,211,000
    Non-cash stock compensation                         332,000            --

Changes in assets and liabilities:
    Accounts receivable                             (20,994,000)       (994,000)
    Costs and earnings in excess of billings        (14,058,000)    (13,630,000)
    Inventories                                         110,000       1,508,000
    Other current assets                                (32,000)       (367,000)
    Accounts payable                                    370,000       2,886,000
    Billings in excess of costs and earnings          2,638,000        (748,000)
    Accrued expenses and other liabilities            6,060,000       6,166,000
                                                   ------------    ------------
      Net cash provided by (used in)
        operating activities                         (3,541,000)      9,279,000
                                                   ------------    ------------


Cash flows from investing activities:
    Additions to property, plant and equipment      (13,052,000)    (11,224,000)
    Additional payment to former shareholders
      of acquired companies                            (799,000)     (7,604,000)
    Purchase of telecom services companies, net     (17,166,000)     (2,517,000)
                                                   ------------    ------------
      Net cash used in investing activities         (31,017,000)    (21,345,000)
                                                   ------------    ------------


Cash flows from financing activities:
    Net proceeds from lines of credit                36,524,000      19,709,000
    Repayments of long-term debt                     (6,004,000)     (6,887,000)
    Issuance of common stock                          1,422,000       1,103,000
                                                   ------------    ------------
      Net cash provided by financing activities      31,942,000      13,295,000
                                                   ------------    ------------

    Net decrease in cash                             (2,616,000)      1,859,000
                                                   ------------    ------------
    Cash at beginning of period                       5,498,000       1,819,000
                                                   ------------    ------------
    Cash at end of period                          $  2,882,000    $  3,678,000
                                                   ============    ============


                                   (continued)



                                       5
<PAGE>


                           ARGUSS COMMUNICATIONS, INC.
                                  CONSOLIDATED
                      STATEMENTS OF CASH FLOWS (CONTINUED)
                                   (UNAUDITED)

                                                    Nine Months Ended Sept. 30,
                                                        2000            1999
                                                        ----            ----

Supplemental disclosures of cash paid for:
Interest                                           $  4,764,000    $  2,774,000
Corporate income taxes                                7,105,000       1,687,000

Supplemental disclosure of
  investing and financing activities:

Fair value of assets acquired:

Accounts receivable                                $ 11,923,000    $  1,154,000
Other current assets                                    714,000          52,000
Inventory                                               874,000            --
Property and equipment                                4,780,000         792,000
                                                   ------------    ------------
    Total non-cash assets                            18,291,000       1,998,000

Liabilities                                          (6,866,000)       (350,000)
Long-term debt                                       (7,203,000)       (111,000)
                                                   ------------    ------------
Net non-cash assets acquired                          4,222,000       1,537,000

Cash acquired                                           116,000            --
                                                   ------------    ------------
Fair value of net assets acquired                     4,338,000       1,537,000
Excess of costs over fair value
  of net assets acquired                             31,993,000      25,671,000
                                                   ------------    ------------
Purchase price                                     $ 36,331,000    $ 27,208,000
                                                   ============    ============

Common stock issued                                $ 17,175,000    $  2,037,000
Cash paid, net                                       17,166,000       2,517,000
Amounts due to former shareholders
  of acquired companies                                 995,000      11,745,000
Common stock issuable to former
  shareholders of acquired companies                    995,000      10,909,000
                                                   ------------    ------------
Purchase price                                     $ 36,331,000    $ 27,208,000
                                                   ============    ============



The accompanying notes are an integral part of these consolidated financial
statements.



                                       6
<PAGE>


                           ARGUSS COMMUNICATIONS, INC.
                              NOTES TO CONSOLIDATED
                              FINANCIAL STATEMENTS
                                   (UNAUDITED)


     A)   Organization
          ------------

     The Company conducts its operations through its wholly owned  subsidiaries,
Arguss   Communications    Group,   Inc.   ("ACG")   and   Conceptronic,    Inc.
("Conceptronic"). ACG is a leading provider of telecommunications infrastructure
services including project  management,  design,  engineering,  construction and
maintenance  for Internet,  telecommunications,  wireless and broadband  service
providers.    Conceptronic    manufactures    and   sells    highly    advanced,
computer-controlled  equipment  used in the surface  mount  electronics  circuit
assembly industry ("SMT"). In May 2000, the Company changed its name from Arguss
Holdings, Inc, to Arguss Communications, Inc.


     B)   Basis for Presentation
          ----------------------

     As permitted by the rules of the  Securities and Exchange  Commission  (the
"Commission")  applicable  to  quarterly  reports on Form 10-Q,  these notes are
condensed  and do not contain all  disclosures  required by  generally  accepted
accounting principles.  Reference should be made to the financial statements and
related notes included in the Company's  Annual Report on Form 10-K for the year
ended December 31, 1999, filed with the Commission on March 16, 2000.

     In the  opinion  of  the  Company,  the  accompanying  unaudited  financial
statements  contain all adjustments  considered  necessary to present fairly the
financial  position of the Company as of  September  30, 2000 and the results of
operations and cash flows for the periods  presented.  The Company  prepares its
interim financial  information  using the same accounting  principles as it does
for its annual financial statements.

     The Company's  telecom services  operations are expected to have seasonally
weaker  results in the first and fourth  quarters  of the year,  and may produce
stronger results in the second and third quarters. This seasonality is primarily
due to the effect of winter weather on outside plant  activities in the northern
areas served by ACG, as well as reduced  daylight  hours and customer  budgetary
constraints.  Certain customers tend to complete  budgeted capital  expenditures
before  the end of the year,  and  postpone  additional  expenditures  until the
subsequent fiscal period.

     Certain amounts in the 1999 financial statements have been reclassified for
comparability with the 2000 presentation.


     C)   Goodwill
          --------

     Goodwill is amortized over a twenty-year  period.  The Company  continually
evaluates  whether events or circumstances  have occurred that indicate that the
remaining  useful life of goodwill  may warrant  revision or that the  remaining
balance may not be  recoverable.  When factors  indicate that goodwill should be
evaluated for possible impairment,  the Company uses the estimated  undiscounted
cash flow of the business  enterprise  over the  remaining  life of the asset in
determining whether the asset is recoverable.


     D)   Earnings per Share
          ------------------

     Basic  earnings  per  common  share are  computed  by  dividing  net income
available to common stockholders by the weighted average number of common shares
outstanding  for the  period.  Diluted  earnings  per common  share  reflect the
maximum dilution that would have resulted from the exercise of stock options and
warrants and contingently issuable shares. Diluted earnings per common share are
computed by dividing net income by the weighted  average number of common shares
and all dilutive securities.



                                       7
<PAGE>



<TABLE>
<CAPTION>
                                            For the Three Months Ended September 30:
                                           2000                                 1999
                                           ----                                 ----
                              Income                     Net       Income                     Net
                             Per Share    Shares        Income    Per Share    Shares        Income
                             ---------    ------        ------    ---------    ------        ------
<S>                            <C>      <C>           <C>           <C>      <C>           <C>
Basic                          $ .32    14,205,000    $4,608,000    $ .24    11,889,000    $2,852,000
Effect of stock options
  and warrants                  (.01)      665,000          --       (.01)      522,000          --
Effect of additional shares
  to be issued for purchase
  of telecom services
  company                        --         38,000          --       (.01)      758,000          --
                               -----    ----------    ----------    -----    ----------    ----------
Diluted                        $ .31    14,908,000    $4,608,000    $ .22    13,169,000    $2,852,000
                               =====    ==========    ==========    =====    ==========    ==========
</TABLE>


<TABLE>
<CAPTION>
                                             For the Nine Months Ended September 30:
                                           2000                                 1999
                                           ----                                 ----
                              Income                     Net       Income                     Net
                             Per Share    Shares        Income    Per Share    Shares        Income
                             ---------    ------        ------    ---------    ------        ------
<S>                            <C>      <C>           <C>           <C>      <C>           <C>
Basic                          $ .66    13,779,000    $9,032,000    $ .43    11,798,000    $5,028,000
Effect of stock options
  and warrants                  (.03)      540,000          --       (.02)      498,000          --
Effect of additional shares
  to be issued for purchase
  of telecom services
  company                        --         24,000          --       (.02)      649,000          --
                               -----    ----------    ----------    -----    ----------    ----------
Diluted                        $ .63    14,343,000    $9,032,000    $ .39    12,935,000    $5,028,000
                               =====    ==========    ==========    =====    ==========    ==========
</TABLE>


     E)   Contract Accounting
          -------------------

     The  retainage  included  in  accounts  receivable,   representing  amounts
withheld by contract with respect to ACG accounts receivable, was $7,252,000 and
$3,973,000  at  September  30, 2000 and December  31,  1999,  respectively.  The
Company expects to collect substantially all the retainage within one year.

                                                   Sept. 30,        December 31,
                                                     2000              1999
                                                 -------------     -------------

Costs incurred on uncompleted contracts          $  86,224,000     $  90,798,000
Estimated earnings                                  23,201,000        15,338,000
                                                 -------------     -------------
                                                   109,425,000       106,136,000
Less: Billings to date                              90,614,000        99,311,000
                                                 -------------     -------------
                                                 $  18,811,000     $   6,825,000
                                                 =============     =============

Included in accompanying balance sheets
  under the following caption:
Costs and earnings in excess of billings         $  21,449,000     $   6,825,000
                                                 -------------     -------------
Billings in excess of costs and earnings            (2,638,000)             --
                                                 -------------     -------------

                                                 $  18,811,000     $   6,825,000
                                                 =============     =============


     F)   Acquisitions
          ------------

     The Company,  through ACG,  actively  pursues  acquisitions  in the telecom
infrastructure  services  industry.  During the first nine  months of 2000,  the
Company made four acquisitions. The combined purchase price was $17.2 million in
cash and 1,070,000 shares of the Company's common stock,  plus the assumption of
$7.2 million of debt. The acquisitions were accounted for as purchases,  and the
results of operations of the acquired companies are included in the consolidated
results of the Company from  effective  dates of  acquisition.  $32.0 million of
goodwill was recorded by the Company in connection with the acquisitions,  which
reflects the adjustments  necessary to allocate the individual purchase price to
the fair  value  of  assets  acquired  and  liabilities  assumed.  The  purchase





                                       8
<PAGE>


agreement of a telecom infrastructure services company acquired during the third
quarter of 2000 contains  provisions for an additional payment by the Company to
former  shareholders to be satisfied by the Company's common stock and cash. The
additional  payment,  which will be paid during the fourth quarter of 2000, will
aggregate  $995,000 in cash and 56,000  shares of the  Company's  common  stock.
During  the first  nine  months of 2000,  the  Company  also made an  additional
payment to the former shareholders of a telecom infrastructure services company,
acquired in 1999, of $799,000 in cash and 13,000 shares of the Company's  common
stock in accordance  with the provisions of the purchase  agreement.  Additional
payments earned under the terms of the agreements are recorded as an increase in
goodwill.


     G)   Segment Information
          -------------------

     SFAS No. 131,  "Disclosures  about  Segments of an  Enterprise  and Related
Information"  establishes  standards for reporting  information  about operating
segments  in  interim  financial   reports  issued  to  stockholders.   It  also
establishes  standards for related  disclosures  about products and services and
geographic areas.  Operating segments are defined as components of an enterprise
about which  separate  financial  information  is  available  that is  evaluated
regularly by the chief  operating  decision  maker, or decision making group, in
deciding how to allocate resources and assessing performance.

     The   Company's   two   reportable   segments  are  telecom   services  and
manufacturing.  The Company  conducts  its  operations  through its wholly owned
subsidiaries,  Arguss Communications Group, Inc. ("ACG") and Conceptronic,  Inc.
("Conceptronic"). ACG is a leading provider of telecommunications infrastructure
services including project  management,  design,  engineering,  construction and
maintenance for Internet,  telecommunications  and broadband service  providers.
Conceptronic   manufactures  and  sells  highly  advanced,   computer-controlled
equipment  used in the  surface  mount  electronics  circuit  assembly  industry
("SMT").

     Because the telecom system projects are fully integrated undertakings,  the
Company does not capture  individually  each component of the service  functions
performed for revenue reporting purposes. The manufacturing segment manufactures
and sells highly advanced, computer-controlled equipment used in the SMT circuit
assembly industry.  The "All Other" column includes the Company's  corporate and
unallocated expenses.

     The Company's  reportable segments are organized in separate business units
with  different  management,  technology and services.  The respective  segments
account for their respective  businesses using the same accounting policies used
in the  consolidated  financial  statements.  Summarized  financial  information
concerning the Company's  reportable segments net of inter-company  transactions
is shown in the following table.

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                         September 30, 2000
                                                         ------------------

                                         Telecom
                                         Services      Manufacturing     All Other           Total
                                         --------      -------------     ---------           -----
<S>                                  <C>              <C>              <C>              <C>
External sales                       $   73,490,000   $    5,042,000             --     $   78,532,000
Cost of sales, excluding
  depreciation                           52,292,000        3,969,000             --         56,261,000
                                     --------------   --------------   --------------   --------------
Gross profit, excluding
  depreciation                           21,198,000        1,073,000             --         22,271,000
Operating expenses,
  excluding depreciation                  4,644,000        1,150,000             --          5,794,000
Depreciation                              2,974,000           40,000            2,000        3,016,000
Goodwill amortization                     1,786,000             --               --          1,786,000
Non-cash compensation expense                79,000             --            114,000          193,000
Engineering and development                    --            309,000             --            309,000
Interest and other income                  (125,000)          (9,000)            --           (134,000)
Interest expense                          2,004,000           86,000             --          2,090,000
                                     --------------   --------------   --------------   --------------
Pretax income (loss)                 $    9,836,000   ($     503,000)  ($     116,000)  $    9,217,000
                                     ==============   ==============   ==============   ==============

Capital expenditures                 $    8,741,000   $        2,000             --     $    8,743,000
                                     ==============   ==============   ==============   ==============
Property, plant and equipment, net   $   45,574,000   $    1,164,000   $       15,000   $   46,753,000
                                     ==============   ==============   ==============   ==============

Total assets                         $  267,640,000   $   10,712,000   $    2,431,000   $  280,783,000
                                     ==============   ==============   ==============   ==============

Total liabilities                    $  124,959,000   $    9,158,000   $   14,836,000   $  148,953,000
                                     ==============   ==============   ==============   ==============
</TABLE>


                                                  9
<PAGE>


<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                         September 30, 1999
                                                         ------------------

                                         Telecom
                                         Services      Manufacturing     All Other           Total
                                         --------      -------------     ---------           -----
<S>                                  <C>              <C>              <C>              <C>
External sales                       $   49,139,000   $    4,212,000             --     $   53,351,000
Cost of sales, excluding
  depreciation                           36,784,000        2,858,000             --         39,642,000
                                     --------------   --------------   --------------   --------------
Gross profit, excluding
  depreciation                           12,355,000        1,354,000             --         13,709,000
Operating expenses,
  excluding depreciation                  2,833,000        1,070,000            1,000        3,904,000
Depreciation                              2,142,000           53,000             --          2,195,000
Goodwill amortization                     1,208,000             --               --          1,208,000
Engineering and development                    --            322,000             --            322,000
Interest and other income                  (186,000)            --               --           (186,000)
Interest expense                          1,050,000           63,000             --          1,113,000
                                     --------------   --------------   --------------   --------------
Pretax income (loss)                 $    5,308,000   ($     154,000)  ($       1,000)  $    5,153,000
                                     ==============   ==============   ==============   ==============

Capital expenditures                 $    2,804,000   $       18,000             --     $    2,822,000
                                     ==============   ==============   ==============   ==============
Property, plant and equipment, net   $   35,643,000   $    1,279,000   $       23,000   $   36,945,000
                                     ==============   ==============   ==============   ==============

Total assets                         $  185,699,000   $    9,113,000   $    5,718,000   $  200,530,000
                                     ==============   ==============   ==============   ==============

Total liabilities                    $   98,225,000   $    6,046,000   $   10,872,000   $  115,143,000
                                     ==============   ==============   ==============   ==============
</TABLE>


<TABLE>
<CAPTION>
                                                         Nine Months Ended
                                                         September 30, 2000
                                                         ------------------

                                         Telecom
                                         Services      Manufacturing     All Other           Total
                                         --------      -------------     ---------           -----
<S>                                  <C>              <C>              <C>              <C>
External sales                       $  184,318,000   $   16,367,000             --     $  200,685,000
Cost of sales, excluding
  depreciation                          134,960,000       12,613,000             --        147,573,000
                                     --------------   --------------   --------------   --------------
Gross profit, excluding
  depreciation                           49,358,000        3,754,000             --         53,112,000
Operating expenses,
  excluding depreciation                 12,546,000        3,724,000             --         16,270,000
Depreciation                              7,999,000          119,000            9,000        8,127,000
Goodwill amortization                     4,874,000             --               --          4,874,000
Non-cash compensation expense               141,000             --            191,000          332,000
Engineering and development                    --            809,000             --            809,000
Interest and other income                  (384,000)         (16,000)            --           (400,000)
Interest expense                          4,827,000          209,000             --          5,036,000
                                     --------------   --------------   --------------   --------------
Pretax income (loss)                 $   19,355,000   ($   1,091,000)  ($     200,000)  $   18,064,000
                                     ==============   ==============   ==============   ==============

Capital expenditures                 $   13,040,000   $       10,000   $        2,000   $   13,052,000
                                     ==============   ==============   ==============   ==============
Property, plant and equipment, net   $   45,574,000   $    1,164,000   $       15,000   $   46,753,000
                                     ==============   ==============   ==============   ==============

Total assets                         $  267,640,000   $   10,712,000   $    2,431,000   $  280,783,000
                                     ==============   ==============   ==============   ==============

Total liabilities                    $  124,959,000   $    9,158,000   $   14,836,000   $  148,453,000
                                     ==============   ==============   ==============   ==============
</TABLE>



                                                  10
<PAGE>


<TABLE>
<CAPTION>
                                                         Nine Months Ended
                                                         September 30, 1999
                                                         ------------------

                                         Telecom
                                         Services      Manufacturing     All Other           Total
                                         --------      -------------     ---------           -----
<S>                                  <C>              <C>              <C>              <C>
External sales                       $  130,802,000   $   12,163,000             --     $  142,965,000
Cost of sales, excluding
  depreciation                           99,302,000        8,154,000             --        107,456,000
                                     --------------   --------------   --------------   --------------
Gross profit, excluding
  depreciation                           31,500,000        4,009,000             --         35,509,000
Operating expenses,
  excluding depreciation                  8,850,000        3,140,000             --         11,990,000
Depreciation                              6,059,000          159,000            1,000        6,219,000
Goodwill amortization                     3,211,000             --               --          3,211,000
Engineering and development                    --          1,006,000             --          1,006,000
Interest and other income                  (380,000)            --               --           (380,000)
Interest expense                          2,997,000          163,000            8,000        3,168,000
                                     --------------   --------------   --------------   --------------
Pretax income (loss)                 $   10,763,000   ($     459,000)  ($       9,000)  $   10,295,000
                                     ==============   ==============   ==============   ==============

Capital expenditures                 $   11,095,000   $      129,000             --     $   11,224,000
                                     ==============   ==============   ==============   ==============
Property, plant and equipment, net   $   35,643,000   $    1,279,000   $       23,000   $   36,945,000
                                     ==============   ==============   ==============   ==============

Total assets                         $  185,699,000   $    9,113,000   $    5,718,000   $  200,530,000
                                     ==============   ==============   ==============   ==============

Total liabilities                    $   98,225,000   $    6,046,000   $   10,872,000   $  115,143,000
                                     ==============   ==============   ==============   ==============
</TABLE>


     H)   Bank Financing
          --------------

     In  March  2000,  the  Company  increased  its  availability  under  credit
facilities  with banks.  The Company  expanded the revolving  credit facility to
$150  million  from $100  million.  The Company  continues to pledge the capital
stock of its wholly owned  subsidiaries and the majority of the Company's assets
to secure the credit facility. The Company intends to use the credit facility to
provide working capital to finance acquisitions,  the purchase of capital assets
and for other  corporate  purposes.  The  credit  facility  also  contains a $30
million, in original notional amount,  amortizing five-year term facility. Under
the provisions of the credit agreement,  borrowings are limited to a multiple of
the Company's  adjusted  EBITDA.  Amounts  borrowed under the line bear interest
either as a relationship to the London  Interbank  Offered Rate ("LIBOR"),  plus
1.25% to 2.25%,  or to the Prime  Rate plus up to 1.00%,  as  determined  by the
ratio of the  Company's  total funded debt to EBITDA.  The Company also incurs a
commitment  fee on the unused  portion of the loan at a rate of up to 0.50%,  as
determined  by the ratio of the  Company's  total  funded  debt to  EBITDA.  The
revolving  line of credit has an initial term maturing on March 19, 2003, and is
renewable for up to one additional year.

     In the  ordinary  course of  business,  the  Company is exposed to floating
interest rate risk. In March 1999,  the Company  terminated  interest rate swaps
entered into as a hedge  against  variable-term  loan  interest  rate risk.  The
aggregate  loss of $330,000 on  termination  of the interest rate swaps is being
amortized over the remaining life of the related term loan that was hedged.

     To hedge the  variable-term  loan  interest  rate risk for $30  million  in
original notional amount,  five-year,  term financing facility,  the Company has
entered into an interest rate swap pursuant to which it pays fixed interest at a
rate of 5.78% and receives  variable  interest on the same notional  amount.  At
September  30,  2000,  the  market  value of the swap,  which  expires  with the
maturity  of the debt on March 1, 2004,  was  $240,000.  During the nine  months
ended  September 30, 2000,  the Company's  receipts under the interest rate swap
aggregated $136,000.



                                       11
<PAGE>


                           ARGUSS COMMUNICATIONS, INC.

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

RESULTS OF OPERATIONS

     The Company conducts its operations through its wholly owned  subsidiaries,
Arguss   Communications    Group,   Inc.   ("ACG")   and   Conceptronic,    Inc.
("Conceptronic"). ACG is a leading provider of telecommunications infrastructure
services including project  management,  design,  engineering,  construction and
maintenance  for Internet,  telecommunications,  wireless and broadband  service
providers.    Conceptronic    manufactures    and   sells    highly    advanced,
computer-controlled  equipment  used in the surface  mount  electronics  circuit
assembly industry ("SMT"). In May 2000, the Company changed its name from Arguss
Holdings, Inc, to Arguss Communications, Inc.

THREE MONTHS ENDED SEPTEMBER 30, 2000, COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1999

     The Company had earnings  before  interest  expense,  taxes,  depreciation,
amortization  and non-cash stock  compensation  (EBITDA) of $16,302,000  for the
three  months ended  September  30, 2000,  compared to  $9,669,000  for the same
period one year ago. For the three months ended September 30, 2000, EBITDA, as a
percentage of net sales (EBITDA  margin),  was 20.8%,  compared to 18.1% for the
comparable  period in 1999. ACG had EBITDA of  $16,679,000  for the three months
ended  September 30, 2000,  compared to $9,708,000  for the same period in 2000.
ACG achieved an EBITDA margin of 22.7% for the three months ended  September 30,
2000 and 19.8% for the three months ended September 30,1999. ACG's strong EBITDA
margin  performance  was  combined  with  continued  strong  revenue  growth and
improved gross margin results as discussed below.

     The  Company  had net  income  of  $4,608,000  for the three  months  ended
September 30, 2000,  compared to $2,852,000 for the three months ended September
30, 1999. The Company's results were favorably impacted by improved  performance
of telecom infrastructure projects located in New England and California.

     Net sales for the three months ended  September 30, 2000 were  $78,532,000,
compared to  $53,351,000  for the three months  ended  September  30,  1999,  an
increase  of  47%.  Acquisitions   contributed  $16,723,000  to  this  increase.
Operations owned for at least one year had a net sales increase of $8,458,000 or
16% for the three months ended September 30, 2000.

     Gross profit margin, excluding depreciation, was 28% of sales for the three
months  ended  September  30,  2000,  compared to 26% for the three months ended
September  30,  1999.   The   improvement  in  margins  is  due  to  ACG,  whose
aforementioned projects located in New England and California,  as well as fiber
related projects, achieved greater sales volume and margins for the three months
ended September 30, 2000.

     Selling,  general and  administrative  expenses  for the three months ended
September 30, 2000 were $5,794,000,  compared to $3,904,000 for the three months
ended September 30, or 7% of net sales in both years. The increase in expense is
consistent  with  revenue  growth.  ACG  has  maintained  selling,  general  and
administrative costs at 6% of net sales in both periods.

     Depreciation  expense  increased to  $3,016,000  for the three months ended
September 30, 2000,  compared to $2,195,000 for the three months ended September
30, 1999 due  primarily  to ACG which made  significant  equipment  acquisitions
during  calendar year 1999, and during the nine months ended September 30, 2000.
Equipment is depreciated over sixty months.  Depreciation expense from companies
acquired  after  September  30, 1999 was $401,000  during the three months ended
September 30, 2000.

     Goodwill amortization, which is calculated using a twenty-year amortization
period,  increased to $1,786,000 from $1,208,000 from the comparable  period one
year ago due primarily to acquisitions made subsequent to September 30, 1999 and
an additional payment made to former shareholders of an acquired company made in
November  1999.  The  additional  payment earned under the terms of the purchase
agreement  was $23.5  million and was recorded as an increase in  goodwill.  The
additional goodwill, amortized over the remaining amortization period, increased
goodwill  amortization  during the three  months  ended  September  30,  2000 by
$140,000.  The Company also recorded $40.1 million in additional  goodwill since
September  30, 1999 related to five  acquisitions.  Amortization  expense on the
goodwill  related to these  acquisitions was $438,000 for the three months ended
September 30, 2000.



                                       12
<PAGE>


     Interest  expense  for the  three  months  ended  September  30,  2000  was
$2,090,000,  compared  to  $1,113,000  for the  comparable  period in 1999.  ACG
interest  expense  increased for the three months ended  September 30, 2000, due
primarily to the  purchase  of, and  additional  payments  to,  telecom  service
companies which were partially  financed through bank lines of credit and due to
increased  use  of  financing  lines  for  the  capital  assets  purchased,  and
additional  working  capital used, in support of ACG's  revenue  growth.  Higher
interest  rates  related to the  revolving  credit line during the three  months
ended September 30, 2000, compared to the three months ended September 30, 1999,
also  contributed  to higher  interest  expense,  as  relevant  rates  increased
approximately  100 basis points from the period in 1999 to 2000. (See discussion
of expanded bank credit facilities in LIQUIDITY AND CAPITAL RESOURCES.)

     Income tax expense was $4,609,000 for the three months ended  September 30,
2000,  compared to  $2,301,000  in income tax expense for the three months ended
September 30, 1999. The effective  income tax rate was 50% and 45% for the three
months ended September 30, 2000 and 1999,  respectively.  Goodwill amortization,
which is nondeductible for income tax purposes, impacts the effective income tax
rate  creating an unusual  relationship  of the expected  effective  tax rate to
pretax  income.  During the three months ended  September 30, 2000 and 1999, the
Company  utilized a 39% effective  income tax rate prior to giving effect to the
impact of nondeductible goodwill amortization on pretax income.

NINE MONTHS ENDED SEPTEMBER 30, 2000, COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 1999

     The Company had earnings  before  interest  expense,  taxes,  depreciation,
amortization  and non-cash stock  compensation  (EBITDA) of $36,433,000  for the
nine months ended  September  30,  2000,  compared to  $22,893,000  for the same
period one year ago. For the nine months ended September 30, 2000,  EBITDA, as a
percentage of net sales (EBITDA  margin),  was 18.2%,  compared to 16.0% for the
comparable  period in 1999.  ACG had EBITDA of  $37,196,000  for the nine months
ended  September 30, 2000,  compared to $23,030,000 for the same period in 2000.
ACG achieved an EBITDA  margin of 20.2% for the nine months ended  September 30,
2000 and 17.6% for the nine months ended September 30,1999.  ACG's strong EBITDA
margin  performance  was  combined  with  continued  strong  revenue  growth and
improved gross margin results as discussed below.

     The  Company  had net  income  of  $9,032,000  for the  nine  months  ended
September 30, 2000,  compared to $5,028,000 for the nine months ended  September
30, 1999. The Company's results were favorably impacted by improved  performance
of  telecom  infrastructure  projects  located  in New  England,  fiber  related
projects and engineering and design services.

     Net sales for the nine months ended  September 30, 2000 were  $200,685,000,
compared to  $142,965,000  for the nine months  ended  September  30,  1999,  an
increase  of  40%  due,  in  part,  to  acquisitions.  Acquisitions  contributed
$31,534,000 to this increase.  Operations  owned for at least one year had a net
sales  increase of  $26,186,000  or 18% for the nine months ended  September 30,
2000.

     Gross profit margin, excluding depreciation,  was 26% of sales for the nine
months  ended  September  30,  2000,  compared to 25% for the nine months  ended
September  30, 1999.  The  improvement  in margins is due to ACG,  whose telecom
infrastructure  projects  located in New England and fiber related  projects had
improved margins for the nine months ended September 30, 2000.

     Selling,  general and  administrative  expenses  for the nine months  ended
September 30, 2000 were $16,270,000, compared to $11,990,000 for the nine months
ended  September  30,  1999 or 8% of net sales in both  years.  The  increase in
expense is consistent with revenue growth.

     Depreciation  expense  increased  to  $8,127,000  for the nine months ended
September 30, 2000,  compared to $6,219,000 for the nine months ended  September
30, 1999 due  primarily  to ACG which made  significant  equipment  acquisitions
during  calendar year 1999, and during the nine months ended September 30, 2000.
The  equipment  is  depreciated  over sixty  months.  Depreciation  expense from
companies  acquired after September 30, 1999 was $714,000 during the nine months
ended September 30, 2000.

     Goodwill amortization, which is calculated using a twenty-year amortization
period,  increased to $4,874,000 from $3,211,000 from the comparable  period one
year ago due primarily to acquisitions  made subsequently to September 30, 1999,
and an additional  payment made to former  shareholders  of an acquired  company



                                       13
<PAGE>


made in November  1999.  The  additional  payment  earned under the terms of the
purchase  agreement  was  $23.5  million  and was  recorded  as an  increase  in
goodwill.  The additional  goodwill,  amortized over the remaining  amortization
period,  increased goodwill  amortization during the nine months ended September
30, 2000 by $770,000.  The Company also  recorded  $40.1  million in  additional
goodwill  since  September 30, 1999 related to five  acquisitions.  Amortization
expense of the goodwill related to these  acquisitions was $893,000 for the nine
months ended September 30, 2000.

     Interest  expense  for  the  nine  months  ended  September  30,  2000  was
$5,036,000,  compared to $3,168,000 for the  comparable  period in 1999. The ACG
interest  expense  increased for the nine months ended  September 30, 2000,  due
primarily to the  purchase  of, and  additional  payments  to,  telecom  service
companies which were partially  financed through bank lines of credit and due to
increased  use  of  financing  lines  for  the  capital  assets  purchased,  and
additional  working  capital used, in support of ACG's  revenue  growth.  Higher
interest rates related to the revolving credit line during the nine months ended
September 30, 2000,  compared to the nine months ended  September 30, 1999, also
contributed  to  higher   interest   expense,   as  relevant   rates   increased
approximately  50 basis points from the period in 1999 to 2000.  (See discussion
of expanded bank credit facilities in LIQUIDITY AND CAPITAL RESOURCES.)

     Income tax expense was $9,032,000  for the nine months ended  September 30,
2000,  compared to  $5,267,000  in income tax expense for the nine months  ended
September 30, 1999.  The effective  income tax rate was 50% and 51% for the nine
months ended September 30, 2000 and 1999,  respectively.  Goodwill amortization,
which is nondeductible for income tax purposes, impacts the effective income tax
rate  creating an unusual  relationship  of the expected  effective  tax rate to
pretax  income.  During the nine months ended  September 30, 2000 and 1999,  the
Company  utilized a 39% effective  income tax rate prior to giving effect to the
impact of nondeductible goodwill amortization on pretax income.


LIQUIDITY AND CAPITAL RESOURCES

     Net cash used by  operations  for the nine months ended  September 30, 2000
was $3,541,000  compared with  $9,279,000 of cash provided by operations for the
nine months ended  September  30,  1999.  The increase in cash used in operating
activities is due to the increased  revenue generated by a greater volume of ACG
projects that caused an increase in accounts  receivable  and costs and earnings
in excess of billings.  In addition,  ACG improved its timely collection of 1999
accounts  receivable  prior to December 31, 1999 compared to the prior year when
ACG collected many of its 1998  receivables  in the nine months ended  September
30, 1999.

     Net cash used for investing  activities for the nine months ended September
30, 2000 was  $31,017,000,  compared to $21,345,000 in the comparable  period of
1999.  Of  the  2000  investing   activities,   $17,166,000  was  used  to  make
acquisitions  compared to $2,517,000 in 1999 when one  acquisition  was made. In
2000, pursuant to the provisions of the purchase  agreements,  $799,000 was paid
to former shareholders of acquired companies, compared to $7,604,000 in 1999. In
2000,  $13,052,000  was spent on  capital  equipment  acquisitions  compared  to
$11,224,000  in 1999. The increase from 1999 reflects  additional  capital asset
purchases for an additional  ACG facility in the Pacific  Northwest,  as well as
purchases to expand ACG revenue.

     Net cash  provided by financing  activities  was  $31,942,000  for the nine
months  ended  September  30, 2000,  compared to net cash  provided by financing
activities  of  $13,295,000  for the  comparable  period in 1999.  The financing
activity in 2000 reflects the proceeds  from the  Company's  credit line in 2000
used for acquisitions.

     In  March  2000,  the  Company  increased  its  availability  under  credit
facilities  with banks.  The Company  expanded the revolving  credit facility to
$150  million  from $100  million.  The Company  continues to pledge the capital
stock of its wholly owned  subsidiaries and the majority of the Company's assets
to secure the credit facility. The Company intends to use the credit facility to
provide  working  capital to finance  acquisitions  and the  purchase of capital
assets and for other corporate purposes. The credit facility also contains a $30
million, in original notional amount,  amortizing five-year term facility. Under
the provisions of the credit agreement,  borrowings are limited to a multiple of
the Company's  adjusted  EBITDA.  Amounts  borrowed under the line bear interest
either as a relationship to the London  Interbank  Offered Rate ("LIBOR"),  plus
1.25% to 2.25%,  or to the Prime  Rate plus up to 1.00%,  as  determined  by the
ratio of the  Company's  total funded debt to EBITDA.  The Company also incurs a
commitment  fee on the unused  portion of the loan at a rate of up to 0.50%,  as
determined  by the ratio of the  Company's  total  funded  debt to  EBITDA.  The
revolving line of credit has an initial term, maturing on March 19, 2003, and is
renewable for up to one additional year.



                                       14
<PAGE>


     To hedge the  variable-term  loan  interest  rate risk for $30  million  in
original notional amount,  five-year,  term financing facility,  the Company has
entered into an interest rate swap pursuant to which it pays fixed interest at a
rate of 5.78% and receives  variable  interest on the same notional  amount.  At
September  30,  2000,  the  market  value of the swap,  which  expires  with the
maturity  of the debt on March 1, 2004,  was  $240,000.  During the nine  months
ended March 31,  2000,  the  Company's  receipts  under the  interest  rate swap
aggregated $136,000.

     The Company's telecom  infrastructure  services  operations are expected to
have seasonally weaker results in the first and fourth quarters of the year, and
may produce stronger results in the second and third quarters.  This seasonality
is primarily due to the effect of winter weather on outside plant  activities in
the northern areas served by ACG, as well as reduced daylight hours and customer
budgetary  constraints.  Certain  customers  tend to complete  budgeted  capital
expenditures  before  the end of the year,  and are slow to  return to  expected
production levels in the first quarter of the subsequent fiscal period.

     In June 1998, the Financial  Accounting Standards Board issued SFAS No. 133
"Accounting for Derivative  Instruments and Hedging  Activities."  The statement
requires companies to recognize all derivatives as either assets or liabilities,
with the instruments  measured at fair value. The accounting for changes in fair
value,  gains or losses  depends on the intended use of the  derivative  and its
resulting  designations.  In June 2000, the Financial Accounting Standards Board
issued SFAS No. 138 "Accounting for Certain  Derivative  Instruments and Certain
Hedging  Activities--an  amendment of FASB Statement No. 133". As amended,  SFAS
No. 133 is effective  for all fiscal  quarters of fiscal years  beginning  after
June 15, 2000. The Company will adopt SFAS No. 133 on January 1, 2001.  Adoption
of SFAS No. 133 is not  expected to have a material  impact on the  consolidated
financial statements.


FORWARD LOOKING STATEMENTS

     Statements made in the quarterly  report that are not historical or current
facts  are  "forward-looking  statements"  made  pursuant  to  the  safe  harbor
provisions of the Private  Securities  Litigation Reform Act of 1995.  Investors
are  cautioned   that  actual  results  may  differ   substantially   from  such
forward-looking statements. Forward looking statements may be subject to certain
risks and uncertainties,  including - but not limited to - continued  acceptance
of  the  Company's  products  and  services  in the  marketplace,  uncertainties
surrounding  new  acquisitions,  floating rate debt,  risks of the  construction
industry,  including  weather and an  inability  to plan and  schedule  activity
levels,  doing business overseas and risks inherent in concentration of business
in certain  customers.  All of these risks are detailed from time to time in the
Company's filings with the Securities and Exchange Commission.  Accordingly, the
actual results of the Company could differ materially from such  forward-looking
statements.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     In the ordinary course of business, the Company is exposed to interest rate
risk. To reduce  variable-term  loan interest rate risk, the Company has entered
into an interest rate swap in the same notional  amount,  term and interest rate
relationship  to LIBOR as the  Company's  $19,500,000  variable-rate  term loan.
Arguss pays a fixed  interest rate of 5.78%  pursuant to the interest rate swap.
The  Company  continues  to incur  interest  expense  for the bank's  applicable
margins  ranging from 1.25% to 2.25% above LIBOR as  determined  by the ratio of
the Company's total funded debt to EBITDA.

     Interest  rate  swaps  are  entered  into as a  hedge  of  underlying  debt
instruments  to  effectively  change the  characteristics  of the interest  rate
without  actually  changing the debt instrument.  For fixed-rate debt,  interest
rate  changes  affect the fair value,  but do not impact  earnings or cash flow.
Conversely,  for  floating-rate  debt,  interest  rate changes  generally do not
affect the fair market value, but do impact future earnings and cash flow. A one
percentage  point  decrease in interest  rates would  decrease the fair value of
interest rate swaps by $316,000.  The earnings and cash flow impact for the next
year  resulting from a one  percentage  point  increase  interest rates would be
neutral  because of the cash flow received from the swaps.  All of the principal
of the variable rate debt subject to the interest rate swap would be repaid over
the next four  years  thereby  diminishing  the impact of market  valuations  on
hedges.



                                       15
<PAGE>


                           ARGUSS COMMUNICATIONS, INC.

                                     PART II
                                Other Information


     Items 1, 2, 3, 4 and 5:  Not Applicable.



     Item 6:  Exhibits and Reports on form 8-K

         (a)  27 Financial Data Schedule

         (b)  Reports on Form 8-K:

              none




                                       16
<PAGE>



     SIGNATURES


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.

                                       Arguss Communications, Inc.



     November 1, 2000             By:  /s/ Rainer H. Bosselmann
                                       -----------------------------------------
                                       Rainer H. Bosselmann
                                       Chief Executive Officer



     November 1, 2000             By:  /s/ Arthur F. Trudel
                                       -----------------------------------------
                                       Arthur F. Trudel
                                       Principal Financial Officer and Principal
                                       Accounting Officer



                                       17