U.S. SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549


                                 FORM 10-QSB


        QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
                            EXCHANGE ACT OF 1934

               For the quarterly period ended   June 30, 2001

                       Commission File No.:   0-10854


                            ORS AUTOMATION, INC.
      (Exact name of small business issuer as specified in its charter)


             DELAWARE                        13-27956-75
   (State or other jurisdiction of     (I.R.S Employer identification No.)
   incorporation or organization)

          402 Wall Street, Princeton, New Jersey        08540
          (Address of principal executive offices)    (Zip Code)

                                (609) 924-1667
              (Issuer's telephone number, including area code)

     Check whether the issuer (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_____

     Check whether the issuer has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court. Yes___X__   No_____

     As of June 30, 2001, 8,758,443 shares of the registrants
Common Stock and 12,000,000 shares of Class A Common Stock were
outstanding.

     Transitional Small Business Format.  Yes____ No__X__











                            ORS AUTOMATION, Inc.


                            INDEX TO FORM 10-QSB
                                June 30, 2001

                                                             Page

Part I - Financial Information

   Item 1. Financial Statements:

      Unaudited Balance Sheet - June 30, 2001                  3

      Unaudited Statements of Operations and Accumulated
                Deficit for the Three and Six Months Ended
                June 30, 2001 and 2000.                        4

      Unaudited Statements of Cash Flows for the Six
                Months Ended June 30, 2001 and 2000.           5

      Notes to Financial Statements.                           6

   Item 2. Management's Discussion and Analysis of Financial
            Condition and Results of Operations.               7,8

Part II - Other Information                                    8

Signatures                                                     9

























                                     2


                           ORS AUTOMATION, INC
                          UNAUDITED BALANCE SHEET
                              JUNE 30, 2001

ASSETS

Current Assets:
  Cash                                                         $       208,696
  Accounts receivable                                                  576,627
  Inventory, net                                                        75,451
  Prepaid expenses                                                       1,003
  Corporate taxes receivable                                             8,232
                                                               ---------------
                   Total Current Assets                                870,009

Property and Equipment, net                                              4,654
                                                                --------------
                   TOTAL ASSETS                                $       874,663
                                                               ===============
                   LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts payable and accrued expenses                        $         8,899
                                                               ---------------
                   Total Current Liabilities                             8,899

Note Payable - related party                                           166,102
Accrued interest payable - related party                               318,910
                                                               ---------------
                   Total Liabilities                                   493,911

Stockholders' Deficit:
  Preferred stock                                                       10,000
  Common stock                                                         129,584
  Capital in excess of par value                                    24,914,163
  Accumulated deficit
(24,672,995)
                                                               ---------------
                    Total Stockholders' Equity                         380,752
                                                               ---------------
                    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $       874,663
                                                               ===============











  The Notes to Financial Statements are an integral part of this Statement

                                    3

                         ORS AUTOMATION, INC.
                       UNAUDITED STATEMENTS OF INCOME
      FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2000

                                Three Months                    Six Months
                               Ended June 30,                  Ended June 30,
                            2001            2000           2001           2000
                         ----------      --------       ---------     --------
Sales                   $  143,011     $  316,731     $  541,988    $  727,017
Cost of Goods Sold         138,886        174,941        329,932       409,950
                         ----------     ----------     ----------    ---------
    Gross Profit (Loss)       ,125        141,790        212,056       317,067

Administrative, Marketing
   and General Expenses    142,359        112,806        242,629       195,288
                          ---------     ----------     ----------    ---------
Income (Loss) From
   Operations             (138,234)        28,984        (30,573)      121,779

Other (Income) Expense:
  Interest income           (2,846)        (6,349)        (7,720)      (9,309)
  Change in estimate of
   State priority tax
   claims payable          (30,049)           --         (30,049)           --
  Interest expense           5,270          5,270         10,540        10,540
    Deprecation and
     amortization            1,252          1,619          2,504         3,238
                        ----------     -----------      --------      --------
    Total Other (Income)
      Expenses, net        (26,373)           540        (24,725)        4,469
                        ----------     -----------      ----------    --------
Income (Loss) Before Provision
      for Income Taxes    (111,861)        28,444         (5,848)      117,310

Provision for Income Taxes   --             2,598           --          11,848
                   ---------------    ------------    ------------  ----------
Net Income (Loss)       $  (111,861)   $   25,846     $   (5,848)   $  105,462
                        ===========    ==========     ==========    ==========
Basic Earnings Per
      Common Stock      $     (.01)    $     .00      $     (.00)    $     .01
                        ===========    ==========     ==========    ==========
Common Shares Used in Company
      Basic Earnings Per Common
      Share              20,758,443    20,082,443     20,758,443    20,082,443
                         ===========   ==========     ==========    ==========








  The Notes to Financial Statements are an integral part of this statement.

                                    4


                        ORS AUTOMATION, INC.
                   UNAUDITED STATEMENTS OF CASH FLOWS
              FOR THE SIX MONTHS ENDING JUNE 30, 2001 AND 2000

                                                   2001                2000
                                                ------------        ----------
Cash Flows From Operating Activities:
  Net Income (Loss)                             $    (5,848)       $   105,462
  Adjustments to reconcile net income to net
   cash (used in) provided by operating activities:
    Depreciation and amortization                     2,504              3,238
    Change in estimate on state priority
       tax claims payable                           (29,475)               --
    Cash provided by (used in) changes in:
      Accounts receivable, net                     (239,320)           151,399
      Inventory, net                                 79,592              1,774
      Prepaid expenses                                  (11)               371
      Accounts payable and accrued expenses             760              7,235
      Accrued interest payable - related party        9,966              9,966
      Priority tax claims payable - interest            --                 574
      Income taxes payable                              --                 699
                                                 ----------         ----------
         Net Cash Provided By (Used In)
              Operating Activities                 (181,832)           280,718

Cash Flows From Investing Activities:
  Purchase of property and equipment                  --                   --
  Proceeds from sale of short-term investments        --                   --
                                                -----------        -----------
         Net Cash Provided By (Used In)
              Investing Activities                    --                   --
                                               ------------       ------------

Net  Increase (Decrease) in Cash                   (181,832)           280,718

Cash at Beginning of the Period                     390,528            156,718
                                                ------------       -----------
Cash at End of the Period                        $  208,696         $  437,436
                                                ===========        ===========

Supplemental Disclosure of Cash Flow Information:

      Cash paid during the period for:
            Interest                            $     --           $     --
            Income taxes                        $     --           $    10,801







The Notes to Financial Statements are an integral part of these statements

                                   5



                         ORS AUTOMATION, INC.

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                (Unaudited)

Note 1 - Basis of Presentation

     The unaudited financial statements included herein have been
prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, they do not include
all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. The
unaudited interim financial statements as of June 30, 2001 and 2000
reflect all adjustments (consisting of normal recurring accruals)
which, in the opinion of management, are considered necessary for a
fair presentation of the results for the periods covered.

     The Unaudited Statements of Operations for the three months
ended June 30, 2001 and 2000 are not necessarily indicative of
results for the full year.

     While the Company believes that the disclosures presented are
adequate to make the information not misleading, these financial
statements should be read in conjunction with the financial
statements and accompanying notes included in the Company's Current
Report on Form 10-KSB dated December 31, 2000.

Note 2 - Preferred and Common Stock

     The preferred stock of the Company has a par value of $.01 per
share and 1,000,000 shares have been authorized to be issued. All are
outstanding at June 30, 2001.

     The common stock of the Company has a par value of $.01 per
share and 10,000,000 shares have been authorized to be issued. As of
June 30, 2001, 8,758,443 shares are outstanding.

     The Company also has Class A common stock, which has a par value
of $.0035 per share and 12,000,000 shares have been authorized to be
issued. All are outstanding at June 30, 2001.

Note 3 - Income Per Share

     Income per share has been computed based upon the weighted
average number of shares of the sum of both common stock and Class A
common stock outstanding during the period.






                                      6


                              ORS AUTOMATION, INC.

               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS

GENERAL

        Due to the nature of our business, which requires close working
relationships with our customers, ORS has always depended on a few major
customers that could be supported by our engineering department. ORS'
principal customer, which accounted for 78% of sales in the first two quarters
of 2000 decided to manufacture in-house the products it was purchasing from
ORS, and cancelled substantially all outstanding purchase orders with ORS. The
loss of sales to this customer will materially adversely affect sales for the
remainder of 2001 unless ORS can replace these sales to other customers.  ORS'
results for the second quarter reflect the inability to replace these sales
due to the continuing significant weakness in the worldwide electronics
industry, which has resulted in a reduction in manufacturing activity and
additional underutilized capacity being experienced by ORS' potential
customers, primarily suppliers of  printed circuit board manufacturing
equipment. The impact on sales of sophisticated alignment systems, such as
those which ORS supplies, has been greater than initially anticipated.
Potential customers have reduced their capital expenditures due both to a
decline in their own production and profitability and to the overall
uncertainty as to the projected length and severity of the current global
economic downturn.

      ORS anticipates that market uncertainty will exist for at least the
remainder of the year and in to next year.

     In connection with ORS' principal customer cancelling its purchase orders
with ORS, the customer agreed to pay for all work in process and inventory as
well as a cancellation fee. All payment was received in July 2001.

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30,2000
 COMPARED TO THE THREE AND SIX MONTHS ENDED JUNE 30, 2000

     Sales for the three month period ended June 30, 2001 decreased 55% to
$143,011, compared to $316,731 for the comparable period in 2000. Sales
for the six month period ended June 30, 2001 decreased 25% to $541,988,
compared to $727,017 for the six month period ended June 30, 2000. This
decrease reflects the continuing significant weakness in the worldwide
electronics industry, which has resulted in a reduction in manufacturing
activity and additional underutilized capacity being experienced by ORS'
customers. Our gross profit percentage decreased to 3% and 39%,
respectively, for the three and six month periods ended June 30, 2001 as
compared to 45% and 44%, respectively, for the comparable periods in 2000.

     ORS' administrative, marketing and general expenses increased by 26% and
24% to $142,359 and $242,629, respectively, for the three and six month
periods ended June 30, 2001. This increase was due to using outside
contractors to perform marketing and sales activities and certain
engineering activities as ORS unsuccessfully attempted to increase sales.
The increase was also due to an expense of $44,386 for a reduced cancellation
fee agreed to by ORS and its principal customer.
                                      7
     As a result of the foregoing, ORS' had a loss from operations for the
three and six month periods ended June 30, 2001 of $138,234 and $30,573,
respectively, as compared to income from operations of $28,984 and $121,779,
respectively, for the three and six month periods ended June 30, 2000. A
decrease of $30,049 held in reserve for the estimate of state priority tax
claims payable, offset the loss from operations for the three and six months
ended June 30, 2001. This resulted in a loss of $111,861 and $5,848,
respectively, or a loss of $0.01 and $0.00 per common share, respectively,
for the three and and six month periods ended June 30, 2001, compared to
income of $25,846 and $105,462, respectively, or $0.00 and $0.01 per common
share, respectively, for the comparable periods in 2000.

LIQUIDITY AND CAPITAL RESOURCES

     ORS has been able to meet its working capital requirements from funds
generated from past operations. In the event that additional funds are
needed to continue operations, or existing operations do not generate funds
sufficient to cover cash expenditures, ORS will need to obtain capital from
other sources, such as financial institutions or investors. To date we
have been unable to obtain any bank financing and there is no assurance
that if financing is required, it will be available to the Company.

     Net cash used in operating activities was $181,832 for the first six
months of 2001 as compared to net cash provided by operating activities
of $280,718 for the comparable period in 2000. The decrease in net cash
provided in 2001 was primarily due to an increase in accounts receivable of
$239,320. The increase in accounts receivable principally relate to unpaid
charges for shipments made to a related party and unpaid cancellation charges
billed to our principal customer.

     For the six months ended June 30, 2001, cash decreased by $181,832 to
$208,696.

     Statements on this Quarterly Report on Form 10-QSB which expresses that
the Company "believes", "anticipates", or "plans to ...", as well as
other statements that are not historical fact, are forward looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on assumptions that we
believe are reasonable, but a number of factors could cause our actual
results to differ materially from those expressed or implied by these
statements. The Company does not intend to update these forward looking
statements.




                       PART II - OTHER INFORMATION

                             NONE







                                     8

                               SIGNATURES

     In accordance with the requirements of the Exchange Act, the
registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                       ORS AUTOMATION, INC.
                           (Registrant)


Date:   August 14, 2001                        /s/ Edward Kornstein

                                                 Edward Kornstein
                                                   President
                                     (Principal Accounting Officer)













                                    9