<PAGE>

                                   FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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

     For the quarterly period ended March 31, 2001

     OR

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

     For the transition period from _______________ to ______________


                          Commission File No. 0-28582
                                              -------


                        CHANNELL COMMERCIAL CORPORATION
             (Exact name of Registrant as specified in its charter)


                                    DELAWARE
         (State or other jurisdiction of incorporation or organization)


                                   95-2453261
                      (I.R.S. Employer Identification No.)


                     26040 Ynez Road, Temecula, California
                    (Address of principal executive offices)

                                     92591
                                   (Zip Code)

                                 (909) 719-2600
              (Registrant's telephone number, including area code)


     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
                                                 ---     ---
     9,056,293 shares of common stock of the Registrant were outstanding at
March 31, 2001.
<PAGE>

                        CHANNELL COMMERCIAL CORPORATION

               CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

                 (amounts in thousands, except per share data)

<TABLE>
<CAPTION>

                                                                                      Three months ended
                                                                                           March 31,
                                                                                  --------------------------
                                                                                    2001              2000
                                                                                  --------           -------
<S>                                                                               <C>                <C>
Net sales                                                                         $ 21,967           $32,250
Cost of goods sold                                                                  15,455            21,009
                                                                                  --------           -------

             Gross profit                                                            6,512            11,241
Operating expenses
             Selling                                                                 3,734             3,985
             General and administrative                                              3,062             3,156
             Research and development                                                  618               610
                                                                                  --------           -------
                                                                                     7,414             7,751
                                                                                  --------           -------
             (Loss) Income from operations                                            (902)            3,490

Interest expense, net                                                                 (817)             (603)
                                                                                  --------           -------

             (Loss) Income before income taxes                                      (1,719)            2,887

Income taxes (benefit)                                                                (448)            1,276
                                                                                  --------           -------

             Net (loss) income                                                     ($1,271)          $ 1,611
                                                                                  ========           =======

             Net (loss) income per share

                             Basic                                                  ($0.14)            $0.18
                                                                                  ========           =======

                             Diluted                                                ($0.14)            $0.17
                                                                                  ========           =======

Net (loss) income                                                                  ($1,271)          $ 1,611

Other comprehensive income, net of tax
     Foreign currency translation adjustments                                       (2,044)             (772)
                                                                                  --------           -------

Comprehensive net (loss) income                                                    ($3,315)          $   839
                                                                                  ========           =======
</TABLE>

                                                                    Page 1 of 12
<PAGE>

                        CHANNELL COMMERCIAL CORPORATION
                    CONSOLIDATED BALANCE SHEETS (Unaudited)

                            (amounts in thousands)


<TABLE>
<CAPTION>
                                                                                          Mar. 31,               Dec. 31,
                                                                                           2001                   2000
                                                                                        ----------              ---------
<S>                                                                                     <C>                     <C>
ASSETS
     Current assets
           Cash and cash equivalents                                                     $  2,100               $    913
           Accounts receivable, net                                                        16,382                 24,007
           Inventories                                                                     22,714                 21,620
           Deferred income taxes                                                            1,082                  1,171
           Prepaid expenses and misc. receivables                                           2,641                  1,966
           Income taxes receivable                                                          1,047                  1,854
                                                                                         --------               --------
                          Total current assets                                             45,966                 51,531

     Property and equipment at cost, net                                                   46,926                 48,669

     Deferred income taxes                                                                  2,517                  2,102

     Intangible assets, net                                                                13,696                 13,931

     Other assets                                                                             554                    515
                                                                                         --------               --------
                                                                                         $109,659               $116,748
                                                                                         ========               ========
LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities
           Accounts payable                                                              $  6,002               $  7,998
           Short term debt (including current maturities of long term debt)                32,595                 31,086
           Current maturities of capital lease obligations                                  2,718                  2,726
           Accrued expenses                                                                 1,995                  4,459
                                                                                         --------               --------
                          Total current liabilities                                        43,310                 46,269
                                                                                         --------               --------

     Long term debt, less current maturities                                                4,092                  4,092

     Capital lease obligations, less current maturities                                     1,792                  2,460

     Stockholders' equity
           Preferred stock                                                                     --                     --
           Common stock, par value $.01 per share, authorized --
                 19,000 shares; issued - 9,269 shares at March 31,
                 2001 and 9,269 in December 31, 2000; outstanding
                 - 9056 shares in March 31, 2001 and 9,077 in
                 December 31, 2000                                                             93                     93
           Additional  paid-in capital                                                     28,334                 28,334
           Treasury stock - 213 and 192 shares in March 31, 2001
                 and December 31, 2000                                                     (1,723)                (1,576)
           Retained earnings                                                               37,549                 38,820
           Accumulated other comprehensive income -
           Foreign currency translation                                                    (3,788)                (1,744)
                                                                                         --------               --------

           Total stockholders' equity                                                      60,465                 63,927
                                                                                         --------               --------

           Total liabilities and stockholders' equity                                    $109,659               $116,748
                                                                                         ========               ========
</TABLE>

                                                                    Page 2 of 12

<PAGE>

                        CHANNELL COMMERCIAL CORPORATION
               CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                            (amounts in thousands)


<TABLE>
<CAPTION>
                                                                                     Three months ended
                                                                                         March 31,
                                                                                    --------------------
<S>                                                                             <C>             <C>
                                                                                     2001            2000
                                                                                    ------          ------
Cash flows from operating activities:
           Net (loss) income                                                               ($1,271)        $ 1,611
                         Depreciation and amortization                                2,194           1,881
                         Deferred income taxes                                         (677)            (72)
                         Disposal of fixed asset                                         10               -
                         Foreign curreny transaction gain                              (469)              -

           Change in assets and liabilities:
             (Increase) decrease in assets:
                         Accounts receivable                                          2,127            (342)
                         Inventories                                                     90           1,135
                         Prepaid expenses                                              (597)            (68)
                         Other                                                          (39)            (52)
           Increase (decrease) in liabilities:
                         Accounts payable                                            (1,357)         (4,015)
                         Accrued expenses                                            (1,043)           (543)
                         Income taxes payable                                         1,383           2,098
                                                                                   --------         -------

Net cash provided by operating activities                                               351           1,633
                                                                                   --------         -------

Cash flows from investing activities:
           Acquisition of property and equipment                                       (225)         (2,745)
           Dispositions of property and equipment                                         -              28
                                                                                   --------         -------

Net cash used in investing activities                                                  (225)         (2,717)
                                                                                   --------         -------

Cash flows from financing activities:
           Repayment of debt                                                           (522)         (3,926)
           Proceeds from issuance of long term debt                                   2,500           5,568
           Repayment of obligations under capital lease                                (658)           (697)
           Repurchase of stock                                                         (147)              -
           Exercise of stock options                                                      -              45
                                                                                   --------         -------

Net cash provided by financing activities                                             1,173             990
                                                                                   --------         -------

Effect of exchange rates on cash                                                       (112)           (497)
                                                                                   --------         -------

Increase (Decrease) in cash and cash equivalents                                      1,187            (591)

Cash and cash equivalents, beginning of period                                          913           2,733
                                                                                   --------         -------

Cash and cash equivalents, end of period                                           $  2,100         $ 2,142
                                                                                   ========         =======

Cash paid during the period for:
           Interest                                                                $    769         $   512
                                                                                   ========         =======

           Income taxes                                                            $     20         $   173
                                                                                   ========         =======
</TABLE>

                                                                    Page 3 of 12
<PAGE>

                        CHANNELL COMMERCIAL CORPORATION
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Unaudited)
                            March 31, 2001 and 2000

                 (amounts in thousands, except per share data)

1. Unaudited financial statements: In the opinion of management, the
   accompanying unaudited consolidated financial statements contain all
   adjustments, consisting only of normal recurring adjustments, necessary to
   present fairly the consolidated financial position of Channell Commercial
   Corporation (the "Company") as of March 31, 2001 and the results of its
   operations and its cash flows for the three months ended March 31, 2001 and
   2000. The results of operations and cash flows for the three months ended
   March 31, 2001 are not necessarily indicative of the results to be expected
   for any other interim period or the full year. These consolidated financial
   statements should be read in combination with the audited consolidated
   financial statements and notes thereto for the year ended December 31, 2000.

2. Inventories: Inventories stated at the lower of cost or market (first-in,
   first-out method) are summarized as follows:


                                                 March 31,
                                                   2001
                                              --------------
             Raw Materials                       $ 7,154
             Work-in-Process                       4,050
             Finished Goods                       11,510
                                                 $22,714
                                              ==============

3.  Income per share: Basic (loss) income per share excludes dilution and is
    computed by dividing net (loss) income available to common stockholders by
    the weighted average number of common shares outstanding for the period.
    Diluted income per share reflects the potential dilution that could occur if
    options to acquire common stock were exercised. Options to acquire the
    Company's common stock were not included in the computation of diluted loss
    per share for the three months ended March 31, 2001 because they are
    antidilutive, but they could potentially dilute earnings per share in future
    periods. The following is a reconciliation of the number of shares
    (denominator) used in the basic and diluted income per share computations
    for the three months ended March 31st:


                             2001                        2000
                    ------------------------    ------------------------
                                  Per Share                   Per Share
                      Shares        Amount         Shares        Amount
                    ----------    ----------    -----------   ----------
Basic income per
 Share                  9,058       ($.14)          9,078        $ .18
Effect of dilutive
 Stock options             --          --             230         (.01)
                        -----       -----           -----        -----
Diluted income per
 Share                  9,058       ($.14)          9,308        $ .17
                        =====       =====           =====        =====


                                                                    Page 4 of 12
<PAGE>

4. Segments: Channell Commercial Corporation (the "Company") operates in one
   industry segment as a manufacturer and supplier of telecommunications
   equipment. Currently, the Company is organized into four geographic regions:
   the United States, Europe / Middle East, Canada and Australia / Asia. The
   following tables summarize segment information for the three months ended
   March 31, 2001 and 2000.


                                                 Three Months Ended
                                                      March 31,
                                                ------------------------
                                                   2001             2000
                                                -------          -------
Revenues from unrelated entities:
United States                                   $16,988          $22,556
Europe/Middle East                                2,378            5,835
Canada                                            1,059            1,138
Australia/Asia                                    1,542            2,721
                                                -------          -------
                                                $21,967          $32,250
                                                =======          =======

Income from operations:
United States                                   $ 1,704          $ 4,388
Europe/Middle East                               (1,665)            (513)
Canada                                               44               57
Australia/Asia                                     (985)            (442)
                                                -------          -------
                                                $  (902)         $ 3,490
                                                =======          =======

    There has not been any significant change in the total assets of each
    reportable segment from the amounts disclosed in the Audited Financial
    Statements and Notes thereto for the year ended December 31, 2000.

5.  Credit Agreement: The Company's credit facility contains various financial
    and operating covenants. The Company was not in compliance with ratios of
    debt to EBITDA and fixed charge coverage as of December 31, 2000 and March
    31, 2001. The lenders have stipulated certain conditions to their
    willingness to provide waivers and amend the credit agreement. Among other
    things, the lenders are requiring changes to the terms of borrowing that
    will increase the Company's cost of borrowing and will reduce the revolving
    facility from $30.0 million to $25.0 million. The Company believes that a
    revolving facility of $25.0 million is sufficient to fund the Company's
    working capital and other funding requirements in 2001. The Company and the
    lenders have agreed that the Company will obtain alternative financing to
    repay the existing lenders' loans in the third quarter of 2001. Under the
    proposed amendment to the credit agreement, an event of default would occur
    if the Company does not refinance the existing facility by that time. The
    Company has received and is evaluating alternative financial proposals from
    three alternative lenders.

                                                                    Page 5 of 12
<PAGE>

Part I - Financial Information

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

Results of Operations

Comparison of the Three Months Ended March 31, 2001 With the Three Months Ended
March 31, 2000

     Net Sales.  Net sales in the first three months of 2001 were $22.0 million,
a decrease of  $10.2 million or 31.7% compared with the first three months of
2000.  The decrease resulted from a slow down in capital spending in the
telecommunications equipment industry, primarily in the U.S. and to a lesser
extent Europe.

     Domestic net sales were $17.0 million in the first three months of 2001, a
decrease of $5.6 million, or 24.8% compared to the first three months of 2000.
The decrease is due to a slow down in spending by domestic customers due to
decreased capital spending on network infrastructure upgrades in the first
quarter, as well as customer efforts to reduce inventory by decreasing purchases
of communications equipment, and poor domestic weather conditions in the first
quarter of 2001 as compared to the first quarter of 2000.

     International net sales were $5.0 million, a decrease of $4.6 million, or
47.9% compared to the first three months of 2000.  Sales in Europe / Middle East
decreased 58.6% to $2.4 million due to a slow down in telecommunications
spending in the region and customer decisions to reduce inventory by decreasing
purchases.  Sales in Australia/Asia decreased 44.4% to $1.5 million due to lower
sales to a major telecommunications customer that reduced orders substantially
in January and February to decrease inventory.  Canada sales remained constant
at $1.1 million.  An unfavorable change in currency exchange rates decreased
international sales reported in U.S. Dollars by $0.6 million for the first three
months of 2001.

     Gross profit.  Gross profit in the first three months of 2001 was $6.5
million, a decrease of $4.7 million, or 42.0%.  The decrease is due to the lower
sales volume and unfavorable manufacturing cost variances.  The manufacturing
cost variances resulted from a lower production rate, due to lower sales and
increased efforts to manage inventory levels, causing unabsorbed labor and
overhead costs.

     As a percentage of net sales, gross margin declined from 34.8% in the first
three months of 2000 to 29.5% in the first three months of 2001.  The decline is
also due to the lower production rate resulting from lower sales and efforts to
manage inventory levels.

                                                                    Page 6 of 12
<PAGE>

     Selling.  Selling expenses were $3.7 million in the first three months of
2001, a decrease of $0.3 million, or 7.5%, from the first three months of 2000.
The decrease is due to lower sales commissions and reduced head count in sales
administration functions as a result of the previously announced restructuring
plan to reduce head count and facilities.  As a percentage of net sales, selling
expense increased from 12.4% in the 2000 period to 17.0% in the 2001 period.

     General and Administrative.  General and administrative expenses decreased
$0.1 million, or 3.1%, from $3.2 million in the first three months of 2000 to
$3.1 million in the same period of 2001.  Reduced head count expense in domestic
and international operations were partially offset by higher depreciation,
telecommunications and computer equipment costs of $0.3 million associated with
implementing the global Oracle systems platform.  As a percentage of net sales,
general and administrative expense increased from 9.9% in the 2000 period to
14.1% in the 2001 period.

     Research and Development.  Research and development expenses remained
constant at $0.6 million in both the first three months of 2000 and 2001.  As a
percentage of net sales, research and development expense increased from 1.9% in
the 2000 period to 2.7% in the 2001 period.

     (Loss) Income from Operations.  As a result of the items discussed above,
income from operations decreased $4.4 million from $3.5 million in the first
three months of 2000 to a loss of $(0.9) million in the first three months of
2001.

     Domestic income from operations decreased $2.7 million from $4.4 million in
2000 to $1.7 million in the same period of 2001.  The decrease is due to the
lower sales volume and manufacturing cost variances resulting from lower
production rates.  International loss from operations increased to $1.7 million
from $(0.9) million in the first three months of 2000 to $(2.6) million in the
same period of 2001 primarily due to the lower sales volume and production rates
in Europe / Middle East and Australia / Asia.

     Interest expense.  Net interest expense increased from $0.6 million in the
first three months of 2000 to $0.8 million in the first three months of 2001.
The increase is attributable to additional borrowings that occurred between
March 31, 2000 and March 31, 2001 primarily to finance capital projects.

     Income taxes.  Income tax expense decreased from $1.3 million in the first
three months of 2000 to a tax benefit of $(0.4) million in the first three
months of 2001. The effective tax rate for the three month period ended March
31, 2001 (26%) differed from the statutory rate (35%) primarily due to foreign
operating losses with no benefit provided and changes in the valuation
allowance.

                                                                    Page 7 of 12
<PAGE>

Liquidity and Capital Resources

     Net cash provided by operating activities was $0.4 million and $1.6 million
for the three months ended March 31, 2001 and 2000, respectively.  Net cash
provided by financing activities was $1.2 million for the three months ended
March 31, 2001 and $1.0 million for the three months ended March 31, 2000.  Net
cash used in investing activities was $0.2 million and $2.7 million for the
periods ending March 31, 2001 and 2000, respectively.

     Accounts receivable decreased from $24.0 million at December 31, 2000, to
$16.4 million at March 31, 2001, as a result of the reduction in revenue, normal
collection of accounts receivable, improvement in collecting past due amounts
and foreign currency changes. In terms of days sales outstanding, receivables
decreased from 79 days at December 31, 2000 to 67 days on March 31, 2001.

     Inventories increased from $21.6 million at December 31, 2000, to $22.7
million at March 31, 2001, primarily as a result of inventory that was built up
in January and February in anticipation of a higher sales level.  Production
rates were lowered in the second half of February which decreased inventory
levels in March 2001, yet the balance at the end of the quarter was greater than
the year end levels.

     Accounts payable decreased from $8.0 million at December 31, 2000 to $6.0
million at March 31, 2001 due to lower raw material purchases.

     The Company made capital expenditures of $0.2 million in the first three
months of 2001 compared to $2.7 million in the same period of 2000.

     The Company has a Credit Agreement, which provides funds for working
capital and equipment acquisition purposes.  As of March 31, 2001, the facility
was in the amount of $39.5 million, including a $30.0 million revolving facility
and a $9.5 million term loan.  The outstanding balance bears interest, payable
monthly, at a variable rate based on either the bank's base rate or the
applicable LIBOR rate depending on the mature of the borrowings.  At March 31,
2001, the Credit Agreement's weighted average interest rate was 7.2% and the
outstanding balance was $33.0 million.  The Credit Agreement is collateralized
by substantially all of the Company's tangible and intangible assets and up to
65% of the capital stock of the Company's subsidiaries and is due April 30,
2003.

     The Company's credit facility contains various financial and operating
covenants. The Company was not in compliance with ratios of debt to EBITDA and
fixed charge coverage as of December 31, 2000 and March 31, 2001. The lenders
have stipulated certain conditions to their willingness to provide waivers and
amend the credit agreement. Among other things, the lenders are requiring
changes to the terms of borrowing that will increase the Company's cost of
borrowing and will reduce the revolving facility from $30.0 million to $25.0
million. The Company believes that a revolving facility of $25.0 million is
sufficient to fund the Company's working capital and other funding requirements
in 2001. The Company and the lenders have agreed that the Company will obtain
alternative financing to repay the existing lenders' loans in the third quarter
of 2001. Under the proposed amendment to the credit agreement, an event of
default would occur if the Company does not refinance the existing facility by
that time. The Company has received and is evaluating alternative financial
proposals from three alternative lenders.

                                                                    Page 8 of 12
<PAGE>


     Forward-looking statements contained within this 10-Q are subject to many
uncertainties in the Company's operations and business environments.  Examples
of such uncertainties include customer demand, low material costs, integration
of acquired businesses and worldwide economic conditions among others.  Such
uncertainties are discussed further in the Company's annual report and S-1 filed
with the Securities and Exchange Commission.

                                                                    Page 9 of 12
<PAGE>

Part II - Other Information

Item 1.  Legal Proceedings

     The Company is from time to time involved in ordinary routine litigation
incidental to the conduct of its business.  The Company regularly reviews all
pending litigation matters in which it is involved and establishes reserves
deemed appropriate for such litigation matters.  Management believes that no
presently pending litigation matters will have a material adverse effect on the
Company's financial statements taken as a whole or on its results of operations.

Item 2.  Changes in Securities
         None

Item 3.  Defaults Upon Senior Securities
         None

Item 4.  Submission of Matters to a Vote of Security Holders
         None

Item 5.  Other Information
         None

Item 6.  Exhibits and Reports on Form 8-K
         None

                                                                   Page 10 of 12
<PAGE>

Exhibit
Number                                  Description
------                                  -----------

  3.1    Restated Certificate of Incorporation of the Company (1)
  3.2    Bylaws of the Company (1)
  4      Form of Common Stock Certificate (1)
  10.1   Tax Agreement between the Company and the Existing Stockholders (1)
  10.2   Channell Commercial Corporation 1996 Incentive Stock Plan (including
         form of Stock Option Agreements and Restricted Stock Agreement) (1)
  10.3   Senior Revolving Loan Agreement dated as of May 1, 1998, between
         the Company and Fleet National Bank (3)
  10.4   Second Amendment to Credit Agreement and Consent dated December 29,
         1999, between the Company and Fleet National Bank (6)
  10.5   Second Amendment to Security Agreement dated February 1, 2000, between
         the Company and Fleet National Bank (6)
  10.6   Third Amendment to Credit Agreement and accompanying Notes dated July
         20, 2000, between the Company and Fleet National Bank (6)
  10.8   Employment Agreement between the Company and William H. Channell, Sr.
         (1)
  10.9   Employment Agreement between the Company and William H. Channell, Jr.
         (1)
  10.10  Channell Commercial Corporation 1996 Performance-Based Annual Incentive
         Compensation Plan (1)
  10.11  Lease dated December 22, 1989 between the Company and William H.
         Channell, Sr., as amended (1)
  10.12  Lease dated May 29, 1996 between the Company and the Channell Family
         Trust (1)
  10.14  Lease dated September 24, 1997 between the Company and SCI North
         Carolina Limited Partnership (4)
  10.15  Lease dated October 26, 2000 between the Company and Belston
         Developments Inc. (6)
  10.16  Lease Agreement dated as of March 1, 1996 between Winthrop Resources
         Corp. and the Company (1)
  10.17  Form of Indemnity Agreement (1)
  10.18  Form of Agreement Regarding Intellectual Property (1)
  10.19  401(k) Plan of the Company (5)
  10.22  A.C. Egerton (Holdings) PLC Share Purchase Agreement (3)
  10.23  Amendment to Employment Agreement, William H. Channell Jr., dated
         December 31, 1998 (5)
  11     Computation of Proforma Income per Share (2)
  23     Consent of Independent Certified Public Accountants (6)
(b)  Reports on Form 8-K
     No reports on Form 8-K were filed during the quarter ended March 31, 2001.
_______________

(1) Incorporated by reference to the indicated exhibits filed in connection with
the Company's Registration Statement on Form S-1 (File No. 333-3621).
(2) Incorporated by reference to the indicated exhibits filed in connection with
the Company's Form 10-K on March 31, 1997.
(3) Incorporated by reference to the indicated exhibits filed in connection with
the Company's Form 8-K on May 18, 1998.
(4) Incorporated by reference to the indicated exhibits filed in connection with
the Company's Form 10-Q on May 6, 1998.
(5) Incorporated by reference to the indicated exhibits filed in connection with
the Company's Form 10-K on March 31, 1999.
(6) Incorporated by reference to the indicated exhibits filed in connection with
the Company's Form 10-K on April 2, 2001.

                                                                   Page 11 of 12
<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.


                        CHANNELL COMMERCIAL CORPORATION
                                  (Registrant)



Dated:  May 14, 2001                    By: /s/ Thomas Liguori
                                           _____________________________
                                        Thomas Liguori
                                        Chief Financial Officer

                                                                   Page 12 of 12