UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q



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


For the Quarter Ended September 30, 2000 Commission File Number 0-12283


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



                                 Ohio 31-0791199
        (State of Incorporation) (I.R.S. Employer Identification Number)

              50 West Technecenter Drive, Milford, Ohio 45150-9777
               (address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code: (513) 248-1911


                                 Not Applicable
(Former name, address or fiscal year if changed since last report)


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

The total number of shares  outstanding of the issuer's  common shares,  without
par value, as of the date of this report, follow:



                                    3,044,136



<PAGE>

Part I   Financial Information

Item 1.  Financial Statements

STATEMENT OF OPERATIONS
(unaudited)
<TABLE>

<CAPTION>
                                                   Three Months Ended            Six Months Ended

                                                 9/30/00        9/30/99        9/30/00        9/30/99
                                              -----------   ------------   ------------   ------------

<S>                                            <C>            <C>            <C>            <C>
Products and service revenues                  $ 527,198      $ 518,659      $ 892,559      $ 992,305

Cost of products and services sold               186,160        214,044        309,397        409,980
Selling and administrative expenses              229,833        227,217        475,421        448,147
Research and development expenses
   and software construction and
   product enhancement amortization               52,785         35,414        107,519         61,859
                                              -----------   ------------   ------------   ------------

                                                 468,778        476,675        892,337        919,986

Operating income                                  58,420         41,984            222         72,319

Interest expense, net                             (6,830)        (1,185)       (12,495)        (2,902)

Income before taxes                               51,590         40,799        (12,273)        69,417

Provision for income taxes                             -              -              -              -
                                              -----------   ------------   ------------   ------------

Net income (loss)                                 51,590         40,799        (12,273)        69,417

Less: Dividend payable on preferred shares             0         (8,160)             0        (13,883)
                                              -----------   ------------   ------------   ------------

Net income (loss) available to
         common shareholders     $ 51,590       $ 32,639      $ (12,273)      $ 55,534
                                              ===========   ============   ============   ============

Weighted average of common shares outstanding  3,044,136      3,044,136      3,044,136      3,044,136
Dilutive potential common shares:
          Class A convertible preferred Stock  1,200,000      1,200,000       -             1,200,000

          Stock options                           60,625         31,077       -              -
                                              -----------   ------------   ------------   ------------
Adjusted weighted average of common shares
outstanding                                    4,304,761      4,275,213      3,044,136      4,244,136
                                              ===========   ============   ============   ============

Basic earnings per share                           $0.02          $0.01          $0.00          $0.02
                                              ===========   ============   ============   ============

Diluted earnings per share                         $0.01          $0.01          $0.00          $0.01
                                              ===========   ============   ============   ============
</TABLE>


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


<PAGE>

Item 1 - Financial Statements  (continued)

BALANCE SHEETS
As of September 30, 2000 & March 31, 2000
<TABLE>
<CAPTION>

                                                               (Unaudited)
                                                                 Sept. 30          March-31
                                                                   2000              2000
                                                                ----------        ----------
<S>                                                            <C>               <C>
ASSETS
Current Assets
     Cash                                                           $ 8,200          $ 34,578
     Receivables
          Trade                                                     212,649           101,662
          Related parties                                               500            27,751
                                                               -------------     -------------
     Total receivables                                              213,149           129,413
     Inventories
          Finished products                                          25,237           137,628
          Work in process                                            99,013            18,561
          Raw material                                               95,853            81,229
                                                               -------------     -------------
     Total inventories                                              220,103           237,418
     Prepaid expenses                                                25,513             1,896
                                                               -------------     -------------
          Total Current Assets                                      466,965           403,305

Property and Equipment-at Cost
     Furniture and office equipment                                 104,504           102,217
     Machinery and plant equipment                                  229,084           219,381
     Software construction and product enhancement                2,350,283         2,270,008
                                                               -------------     -------------
                                                                  2,683,871         2,591,606
     Less accumulated depreciation and amortization               2,518,241         2,494,387
                                                               -------------     -------------

                                                                    165,630            97,219

                                                               -------------     -------------
               Total Assets                                       $ 632,595         $ 500,524
                                                               =============     =============


LIABILITIES
Current Liabilities
     Note Payable                                                  $150,000          $135,000
     Current maturities of long term obligations                      5,313             5,133
     Accounts payable - trade                                       679,365           567,958
     Dividend payable                                                 8,575             8,575
     Deferred income                                                247,818           244,098
     Accrued liabilities
          Salaries and wages                                         95,887            88,693
          Property and payroll taxes                                 31,468            33,777
          Commissions                                               100,202            72,043
          Other                                                      40,570            56,874
                                                               -------------     -------------
               Total Accrued Liabilities                            268,127           251,387

                                                               -------------     -------------
               Total Current Liabilities                          1,359,198         1,212,151

Long-Term Obligations, Less Current Maturities                        2,326             5,029

SHAREHOLDERS' DEFICIT
     Preferred shares                                             2,400,000         2,400,000
     Common shares                                                   61,674            61,674
     Additional paid-in capital                                   5,727,881         5,727,881
                                                               -------------     -------------
                                                                  8,189,555         8,189,555

     Accumulated deficit                                         (8,918,484)       (8,906,211)
                                                               -------------     -------------
               Total Shareholders' Deficit                         (728,929)         (716,656)
                                                               -------------     -------------

               Total Liabilities and Shareholders' Deficit        $ 632,595         $ 500,524
                                                               =============     =============
</TABLE>


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

<PAGE>



Item 1 - Financial Statements  (continued)

STATEMENT OF SHAREHOLDERS' DEFICIT
For the six months ended September 30, 2000
(unaudited)
<TABLE>
<CAPTION>

                                                                     Additional
                                        Common        Preferred      Paid - In     Accumulated
                                        Shares         Shares         Capital        Deficit        Total

<S>                                      <C>         <C>            <C>           <C>             <C>
Balance, March 31, 2000                  $ 61,674    $ 2,400,000    $ 5,727,881   $ (8,906,211)   $ (716,656)

Net loss for the period                         -              -              -        (12,273)      (12,273)

Dividends payable on preferred shares           -              -              -              -             -
                                       ----------  -------------  -------------  -------------   -----------

Balance, September 30, 2000              $ 61,674    $ 2,400,000    $ 5,727,881   $ (8,918,484)   $ (728,929)
                                       ==========  =============  =============  =============   ===========
</TABLE>


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

<PAGE>

Item 1 - Financial Statements  (continued)

STATEMENTS OF CASH FLOWS
For the six months ended September 30,
(unaudited)
<TABLE>
<CAPTION>

                                                                          2000           1999
                                                                     ----------    ------------
<S>                                                                  <C>              <C>
Cash provided by operations
    Net income (loss) for period                                     $ (12,273)       $ 69,417
    Adjustments to reconcile net loss to cash from operations
        Depreciation and amortization                                    7,318           5,676
        Amortization of software construction
               and product enhancements                                 16,536             883
        Provision for obsolete inventory                                12,000          12,000
        Amortization of deferred income and deferred rent              (49,419)        (84,945)

    Increase (decrease) in cash  due to changes in
        Accounts receivable                                            (83,736)        (55,055)
        Inventories                                                      5,315           2,485
        Prepaid expenses                                               (23,617)         (4,933)
        Accounts payable                                               111,407          33,434
        Accrued liabilities                                             16,740           3,845
        Deferred income                                                 53,139          19,597
                                                                     ----------    ------------

               Net cash provided by operations                          53,410           2,404

Cash used in investment activities
        Purchase of equipment                                          (11,990)              -
        Increase in software construction and product enhancements     (80,275)        (44,817)
                                                                     ----------    ------------

               Net cash used in investment activities                  (92,265)        (44,817)

Cash provided by financing activities
        Additions to debt obligations                                   15,000          35,000
        Payments on debt obligations                                    (2,523)        (18,351)
                                                                     ----------    ------------

               Net cash provided by financing activities                12,477          16,649

Decrease in cash                                                       (26,378)        (25,764)
Cash - beginning of period                                              34,578          32,848
                                                                     ----------    ------------

Cash - end of period                                                   $ 8,200         $ 7,084
                                                                     ==========    ============

Interest paid during period                                            $12,495         $ 3,074
                                                                     ==========    ============
</TABLE>

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

<PAGE>



Item 1 - Financial Statements  (continued)

Notes to Financial Statements


1.   Presentation of Information

In the opinion of management,  the accompanying  unaudited financial  statements
reflect  all  adjustments  (consisting  of only  normal  recurring  adjustments)
necessary to present fairly Zonic Corporation's (the Company) financial position
at September 30, 2000 and the results of operations  for the three and six month
periods  ended  September 30, 2000 and 1999 and its cash flows for the six month
periods  ended  September 30, 2000 and 1999.  The results of operations  for the
interim periods are not  necessarily  indicative of results to be expected for a
full year.

The financial  statements are summarized and should be read in conjunction  with
the annual  report to  shareholders  and Form 10-K for the year ended  March 31,
2000.  Certain  reclassifications  have been made to amounts shown for the prior
year to conform to current year classifications.

2.       New Standards

In  March  2000,   the  Financial   Accounting   Standards   Board  issued  FASB
Interpretation  No. 44,  "Accounting  for Certain  Transactions  involving Stock
Compensation  - an  interpretation  of APB Option No.  25." This  Interpretation
clarifies the application of Opinion 25 for only certain  issues,  including the
accounting  consequence  of various  modifications  to the terms of a previously
fixed stock option or award. This Interpretation was effective July 1, 2000, but
covers   specific   events  that  occurred   after   December  15,  1998.   This
Interpretation affects the Company as a result of the repricing of options which
occurred in February 1999.  Commencing  July 1, 2000,  the repriced  options are
accounted  for as  variable  until  the  date  the  awards  are  exercised,  are
forfeited,  or expire unexercised.  Compensation cost is recognized  immediately
after July 1, 2000 to the extent that the stock price exceeds the stock price on
July 1, 2000. As of September 30, 2000, the market value of the Company's common
stock did not increase in value from July 1, 2000 and as such,  no  compensation
expense  related to the repricing of options which occurred in February 1999 has
been recorded.

2.       Short Term Note Payable

The Company  extended its revolving line of credit  agreement with its bank. The
agreement  now  expires  on August 1,  2001.  All other  terms of the  agreement
remained the same.

3.       Earnings Per Share

For the six months ending  September 30, 2000,  there were  1,286,633  potential
dilutive  common  shares  outstanding.  These  shares  were not  included in the
diluted  earnings per share  calculation  for the six months ended September 30,
2000 as the Company had a net loss, and their effect was anti-dilutive



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


Special Cautionary Notice Regarding Forward-Looking Statements

         Certain  of the  matters  discussed  under  the  caption  "Management's
Discussion  and Analysis of Financial  Condition and Results of  Operation"  may
constitute forward-looking statements for purposes of the Securities Act of 1933
and the  Securities  Exchange Act of 1934,  as amended,  and as such may involve
known and unknown  risks,  uncertainties  and other  factors which may cause the
actual  results,  performance  or  achievements  of the Company to be materially
different from future results,  performance or achievements expressed or implied
by such  forward-looking  statements.  Important  factors  that could  cause the
actual results,  performance or achievement of the Company to differ  materially
from the Company's expectations include,  without limitation,  the following: 1)
the Company is unable to improve existing products or develop new products which
satisfy  needs in the Company's  markets;  2) the Company is unable to penetrate
new  markets;  3) the  Company is unable to retain  existing  personnel  or hire
additional personnel; 4) the industries the Company serves experience less rapid
growth than anticipated; 5) the Company is unable to obtain supplies on a timely
basis from its limited number of suppliers; 6) new competitors enter the markets
the Company serves or existing  competitors increase their marketing efforts; 7)
the Company is unable to obtain additional debt or equity financing on favorable
terms,  if at all,  to  satisfy  its  cash  requirements.  All  written  or oral
forward-looking  statements  attributable to the Company are expressly qualified
in their entirety by such factors.




Results of Operations

Product and Services  Revenue  increased  by $8,539,  or 2% for the three months
ended  September  30,  2000,  when  compared  to the prior  year  period.  Sales
increased in the targeted new markets for special systems and test  applications
using Medallion products during the period.  Medallion product revenue was about
the same for the  current  three month  period  when  compared to the prior year
while  revenue  from 7000 Series sales  increased  but was offset by declines in
custom  designed  systems  and  services  revenues.  For  the six  months  ended
September  30, 2000,  revenue  decreased by $99,746 or 10% when  compared to the
same period of the prior year. The decrease was due to a significant  decline in
revenue  from  custom  designed  systems  which the  Company no longer  actively
markets but was  partially  offset by  increases in revenue from 7000 Series and
Medallion products.

Order backlog  amounted to $151,000 at September 30, 2000 compared with $257,000
at September 30, 1999.  The decrease  occurred in Medallion  and other  analysis
products and extended service contracts.

Costs of products and services  sold were 35% of products and services  revenues
for the three and six months  ended  September  30, 2000 versus 41% for the same
periods  of the prior  year.  The  decrease  resulted  from  increased  sales of
Medallion  software  products  which had  significantly  lower costs  during the
current year and higher costs  related  7000 Series and custom  designed  system
sales in the prior year.

Selling and  administrative  expenses  increased  $2,616 or 1% and $27,274 or 6%
during  the  current  three and six month  periods  versus  the same  prior year
periods.  There was a significant  decrease in  professional  services  expenses
during the  current  three month  period  versus the prior year which was mostly
offset by higher costs for  promotional  mailings for the Company"  targeted new
markets and higher communication  expenses.  The increase during the current six
month period  versus the prior year was due to higher  commissions  expense from
increased sales by outside sales representatives and higher advertising, product
collateral  and  sales  promotional  expenses.  These  were  partially  offset a
significant   decrease   in   professional   services   expense.   Selling   and
administrative  expenses were 44% and 53%  respectively  of products and service
revenues  for  the  current  three  and six  month  periods  versus  44% and 45%
respectively  for the same  periods  of the prior  year.  The  increase  for the
current six month period was due to the decline in revenue which occurred during
the first three month period of the current fiscal year.

Research and development  expenses and software  construction  amortization  was
$52,875 and  $107,519,  respectively,  for the three and six month periods ended
September  30,  2000  versus  $35,414 and  $61,859,  respectively,  for the same
periods  of the prior  year.  These  increases  were due to higher  amortization
expense as a result of an  increase in  capitalized  software  construction  and
product  enhancement costs during the current and prior years and an increase in
Medallion  research and  development  costs versus the prior year.  See Software
Construction and Product Development under Liquidity and Capital Resources.

Interest  expense was $6,830 and  $12,495,  respectively,  for the three and six
month periods ended  September 30, 2000 versus $1,185 and $2,902,  respectively,
for the same periods ended  September 30, 1999.  This increase was due to higher
borrowings during the current year.

Income tax expense of $17,541 for the three months ended  September 30, 2000 was
offset  by  net  operating  loss   carryforwards.   At  March  31,  2000,   loss
carryforwards  totaling $6.8 million and tax credits of $663,000 were  available
to offset future income taxes. No benefit from the Company's deferred tax assets
has been provided at this time.

Dividend  payable on class B preferred  shares is equal to 20% of the  Company's
current year-to-date net income.


Liquidity & Capital Resources

Software Construction and Product Development

The Company's total unamortized  software  construction and product  enhancement
costs at  September  30,  2000 and March 31,  2000 were  $126,858  and  $63,119,
respectively . The cash outlay for software construction and product enhancement
costs  during the  current  and prior year six month  periods  were  $80,275 and
$44,817, respectively.


Working Capital and Cash Flow

The Company's  working capital  decreased from a negative  $808,846 at March 31,
2000 to a negative $892,223 at September 30, 2000. The current ratio was .33 and
 .34 at March 31,  2000 and  September  30,  2000,  respectively.  The  change in
working  capital was due  primarily to increases  in accounts  payable,  accrued
commissions and short-term borrowings and was partially offset by an increase in
accounts receivable.

The Company's cash flows from operations  amounted to $53,410 for the six months
ended  September  30,  2000.  Investment  in software  construction  and product
enhancement  activities and purchased equipment amounted to $80,275 and $11,990,
respectively.  The Company borrowed $15,000 and made payments on other long-term
debt totaling $2,523 for the six months ended September 30, 2000.

The Company  continues to experience  cash flow problems as current  liabilities
exceed current assets.  The Company continues to seek additional working capital
through  debt or equity  financing  from  public or  private  sources  to reduce
current  liabilities  and to sustain its  operations.  There can be no assurance
that the Company will be able to obtain additional financing on favorable terms,
if at all, from any source.



PART II - Other Information

None


Item 6:  Exhibits and Reports on Form 8-K

     Exhibit 11 - Computation  of earnings per common share - see  Statements of
          Operations

         Reports on Form 8-K  - None


<PAGE>

                                   SIGNATURES
Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.

ZONIC CORPORATION



By:_/s/ James B. Webb_______________
    James B. Webb
    President and Chief Executive Officer



By:_/s/ John H. Reifschneider__________
    John H. Reifschneider
    Controller



Dated:  November 3, 2000
<PAGE>