U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


                                   FORM 10-QSB


           ---
            X  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
           ---
                         SECURITIES EXCHANGE ACT OF 1934


                 For the quarterly period ended: March 31, 2001


           ---
            X  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
           ---

                                  EXCHANGE ACT

                           Commission file No. 0-13167


                                TM CENTURY, INC.
           (Name of small business issuer as specified in its charter)


        Delaware                                            73-1220394
(State of incorporation)                       (IRS Employer Identification No.)


2002 Academy, Dallas, Texas                                                75234
(Address of principal executive offices)                              (Zip Code)

Issuer's telephone number:                                        (972) 406-6800


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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 number of issuer's  shares of Common Stock  outstanding as of March 31, 2001
was 2,483,193.

Transitional Small Business Disclosure Format (check one): Yes    No X
                                                              ---   ---

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
                                 Balance Sheets
                March 31, 2001 (Unaudited) and September 30, 2000

                                     ASSETS

                                                                             March 31, 2001         September 30, 2000
                                                                         ---------------------    ---------------------
<S>                                                                      <C>                      <C>
CURRENT ASSETS
        Cash and cash equivalents                                        $            405,786     $            422,339
        Short-term investments                                                        633,799                  321,495
        Accounts and notes receivable less allowance for doubtful
           accounts of $94,716 and $95,510 respectively                               488,797                  693,997
        Inventories, net of allowance for obsolescence of $258,545                    429,286                  448,293
        Prepaid expenses                                                              102,516                   44,685
                                                                         ---------------------    ---------------------
              TOTAL CURRENT ASSETS                                                  2,060,184                1,930,809

PROPERTY AND EQUIPMENT                                                              2,846,520                2,730,584
        Less accumulated depreciation and amortization                             (2,333,313)              (2,263,000)
                                                                         ---------------------    ---------------------
              NET PROPERTY AND EQUIPMENT                                              513,207                  467,584

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
        of $1,860,009 and $1,784,549 respectively                                     401,272                  377,240
COMEDY MATERIAL RIGHTS, net of accumulated amortization
        of $55,800 and $43,400 respectively                                            68,200                   80,601
OTHER ASSETS                                                                           19,804                   19,804
                                                                         ---------------------    ---------------------

        TOTAL ASSETS                                                     $          3,062,667     $          2,876,038
                                                                         =====================    =====================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
        Current portion of note payable                                  $             28,000     $             33,333
        Accounts payable                                                               16,200                   48,833
        Accrued expenses                                                              123,151                  113,017
        Deferred revenue                                                               99,727                  100,850
        Customer deposits                                                              50,786                   46,916
                                                                         ---------------------    ---------------------
              TOTAL CURRENT LIABILITIES                                               317,864                  342,949

NOTE PAYABLE, less current portion                                                     21,000                   32,334
CUSTOMER DEPOSITS - NONCURRENT                                                        138,151                  138,072
                                                                         ---------------------    ---------------------
              TOTAL LIABILITIES                                                       477,015                  513,355

STOCKHOLDERS' EQUITY
        Common stock, $.01 par value; authorized 7,500,000 shares;                     29,705                   29,705
           2,970,481 shares issued; 2,483,193 shares outstanding
        Additional paid-in capital                                                  2,275,272                2,275,272
        Retained earnings                                                           1,571,902                1,348,933
        Treasury stock - at cost, 487,288 shares                                   (1,291,227)              (1,291,227)
                                                                         ---------------------    ---------------------
              TOTAL STOCKHOLDERS' EQUITY                                            2,585,652                2,362,683
                                                                         ---------------------    ---------------------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                       $          3,062,667     $          2,876,038
                                                                         =====================    =====================

</TABLE>

                   See notes to interim financial statements

                                       2

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
               For the Three Months Ended March 31, 2001 and 2000


                                                                    2001             2000
                                                            --------------   --------------
<S>                                                         <C>              <C>
REVENUES                                                    $    1,418,456   $    1,684,901
      Less  Commissions                                            241,949          341,771
                                                            --------------   --------------
           NET REVENUES                                          1,176,507        1,343,130

COSTS AND EXPENSES
      Production, Programming, and Technical Costs                 454,973          474,965
      General and Administrative                                   474,141          499,842
      Selling Costs                                                247,758          272,340
      Depreciation                                                  35,600           40,161
                                                            --------------   --------------
           TOTAL COSTS AND EXPENSES                              1,212,472        1,287,308

                                                            --------------   --------------
OPERATING INCOME (LOSS)                                            (35,965)          55,822

OTHER INCOME
      Interest income                                                8,110            2,526
      Other income                                                      14            1,081
                                                            --------------   --------------
           TOTAL OTHER INCOME                                        8,124            3,607
                                                            --------------   --------------

NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES                (27,841)          59,429

PROVISION FOR INCOME TAXES                                               -                -

                                                            --------------   --------------
NET INCOME (LOSS)                                           $      (27,841)  $       59,429
                                                            ==============   ==============

RETAINED EARNINGS, BEGINNING OF PERIOD                           1,599,743          494,046
                                                            --------------   --------------

RETAINED EARNINGS, END OF PERIOD                            $    1,571,902   $      553,475
                                                            ==============   ==============


BASIC NET INCOME (LOSS) PER COMMON SHARE                    $        (0.01)  $         0.02
                                                            ==============   ==============

DILUTED NET INCOME (LOSS) PER COMMON SHARE                  $        (0.01)  $         0.02
                                                            ==============   ==============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                       2,483,193        2,483,193
                                                            ==============   ==============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                            N/A            2,495,039
                                                            ==============   ==============

</TABLE>

                   See notes to interim financial statements

                                       3

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
                For the Six Months Ended March 31, 2001 and 2000



                                                            2001             2000
                                                     --------------   --------------
<S>                                                  <C>              <C>
REVENUES                                             $    3,151,392   $    3,286,791
      Less  Commissions                                     623,704          626,254
                                                     --------------   --------------
           NET REVENUES                                   2,527,688        2,660,537

COSTS AND EXPENSES
      Production, Programming, and Technical Costs          836,489          957,287
      General and Administrative                            929,734          968,983
      Selling Costs                                         482,142          498,751
      Depreciation                                           70,436           87,896
                                                     --------------   --------------
           TOTAL COSTS AND EXPENSES                       2,318,801        2,512,917

                                                     --------------   --------------
OPERATING INCOME                                            208,887          147,620

OTHER INCOME
      Interest income                                        14,047            1,138
      Other income                                               35            1,034
                                                     --------------   --------------
           TOTAL OTHER INCOME                                14,082            2,172
                                                     --------------   --------------

NET INCOME BEFORE PROVISION FOR INCOME TAXES                222,969          149,792

PROVISION FOR INCOME TAXES                                     --               --

                                                     --------------   --------------
NET INCOME                                           $      222,969   $      149,792
                                                     ==============   ==============

RETAINED EARNINGS, BEGINNING OF PERIOD                    1,348,933          403,683
                                                     --------------   --------------

RETAINED EARNINGS, END OF PERIOD                     $    1,571,902   $      553,475
                                                     ==============   ==============

BASIC NET INCOME PER COMMON SHARE                    $         0.09   $         0.06
                                                     ==============   ==============

DILUTED NET INCOME PER COMMON SHARE                  $         0.09   $         0.06
                                                     ==============   ==============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                2,483,193        2,483,193
                                                     ==============   ==============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                   2,486,666        2,491,150
                                                     ==============   ==============

</TABLE>

                   See notes to interim financial statements

                                        4
<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
                      Statements of Cash Flows (Unaudited)
                For the Six Months Ended March 31, 2001 and 2000

                                                                                     2001         2000
                                                                                   ---------    ---------
<S>                                                                                <C>          <C>
OPERATING ACTIVITIES
     Net income                                                                    $ 222,969    $ 149,792
     Adjustments to reconcile net income to
     net cash provided by operating activities
            Depreciation and amortization of property and equipment                   70,436       87,896
            Amortization of product development costs and comedy material rights      87,858       92,290
            Provision for doubtful accounts                                            8,750        2,398
     Increase (decrease) from changes in operating assets and liabilities:
            Accounts receivable                                                      196,450       78,463
            Inventories                                                               19,007        1,541
            Product development costs                                                (99,490)    (113,672)
            Prepaid expenses                                                         (57,831)      11,184
            Other assets                                                                --           (550)
            Accounts payable and accrued expenses                                    (22,499)     (51,358)
            Deferred revenue                                                          (1,123)      (4,167)
            Customer deposits                                                          3,950       34,650
                                                                                   ---------    ---------
     NET CASH PROVIDED BY OPERATING ACTIVITIES                                       428,477      288,467

INVESTING ACTIVITIES
     Purchase of short-term investments                                             (312,304)        --
     Purchases of property and equipment                                            (116,059)     (91,782)
                                                                                   ---------    ---------
     NET CASH USED BY INVESTING ACTIVITIES                                          (428,363)     (91,782)

FINANCING ACTIVITIES
     Principal payments on note payable                                              (16,667)     (16,666)
     Principal payments on capital lease obligations                                    --         (3,202)
                                                                                   ---------    ---------
     NET CASH USED BY FINANCING ACTIVITIES                                           (16,667)     (19,868)
                                                                                   ---------    ---------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                 (16,553)     176,817

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                     422,339      354,332
                                                                                   ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                         $ 405,786    $ 531,149
                                                                                   =========    =========



Supplemental disclosures of cash flow information:

    Cash paid for interest                                                         $    --      $      46
                                                                                   =========    =========
</TABLE>


                   See notes to interim financial statements

                                       5
<PAGE>
<TABLE>
<CAPTION>

                                 TM CENTURY INC.

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                                 March 31, 2001

1.  BASIS OF PRESENTATION

The interim  financial  statements of TM Century,  Inc. (the "Company") at March
31, 2001,  and for the three and six months  ended March 31, 2001 and 2000,  are
unaudited,  and include all  adjustments  (consisting  only of normal  recurring
adjustments) which the Company considers necessary for a fair presentation.  The
September 30, 2000, balance sheet was derived from the balance sheet included in
the Company's audited financial  statements as filed on Form 10-KSB for the year
ended September 30, 2000. Certain amounts  previously  reported in prior interim
financial statements have been reclassified to conform to the 2001 presentation.

The accompanying  unaudited interim financial statements are for interim periods
and do not  include  all  disclosures  normally  provided  in  annual  financial
statements,  and  should  be read in  conjunction  with  the  Company's  audited
financial  statements.  The accompanying  unaudited interim financial statements
for the three and six months ended March 31, 2001 are not necessarily indicative
of the results which can be expected for the entire fiscal year.


2.  EARNINGS PER SHARE

Basic earnings per share are calculated on the weighted average number of common
shares  outstanding  during each period.  Diluted  earnings  per share  includes
common stock equivalents, if dilutive.

The following table provides a reconciliation between basic and diluted earnings
per share:

                                                       Three Months Ended          Six Months Ended
                                                             March 31                  March 31
                                                    ------------------------   -----------------------
                                                       2001          2000         2001         2000
                                                       ----          ----         ----         ----
<S>                                                 <C>           <C>          <C>          <C>
Net Income (Loss)                                   $  (27,841)   $   59,429   $  222,969   $  149,792

Weighted Average Number of Shares Outstanding
      Basic                                          2,483,193     2,483,193    2,483,193    2,483,193
      Dilutive effect of common stock equivalents            0        11,846        3,473        7,957
                                                    ----------    ----------   ----------   ----------
      Diluted                                        2,483,193     2,495,039    2,486,666    2,491,150

Earnings Per Share:
      Basic Net Income (Loss)                       $     (.01)   $      .02   $      .09   $      .06
                                                    ==========    ==========   ==========   ==========
      Diluted Net Income (Loss)                     $     (.01)   $      .02   $      .09   $      .06
                                                    ==========    ==========   ==========   ==========

</TABLE>


                                       6

<PAGE>

                                TM CENTURY, INC.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS

                              OR PLAN OF OPERATION

TM  Century,  Inc.  (the  "Company")  is  engaged  primarily  in  the  creation,
production, marketing, and worldwide distribution of music libraries, production
libraries, comedy services, station identification and commercials for broadcast
multimedia use.

TM Century's clients include radio and television stations;  radio,  television,
satellite  and Internet  networks;  web sites and portals;  the American  Forces
Radio Network;  advertising agencies; post production studios; cable facilities;
and a wide variety of commercial businesses.

Forward-Looking Statements
--------------------------

This Quarterly  Report contains  forward-looking  statements about the business,
financial  condition and prospects of the Company that reflect  assumptions made
by management and management's beliefs based on information  currently available
to it. The Company can give no assurance that the expectations indicated by such
forward-looking  statements will be realized. If any of management's assumptions
should prove incorrect, or if any of the risks and uncertainties underlying such
expectations  should  materialize,  the  Company's  actual  results  may  differ
materially from those indicated by the forward-looking statements.

The key factors  that are not within the  Company's  control and that may have a
direct bearing on operating  results include,  but are not limited to, continued
maturation  of  the  domestic  and   international   markets  for  compact  disc
technology;  acceptance by the  customers of the Company's  existing and any new
products and formats;  the development by competitors of products using improved
or alternative  technologies and the potential obsolescence of technologies used
by the Company;  the  continued  availability  of  software,  hardware and other
products obtained by the Company from third parties; dependence on distributors,
particularly  in the  international  market;  the  retention of  employees;  the
success  of the  Company's  current  and  future  efforts  to  reduce  operating
expenses;  the effectiveness of new marketing  strategies;  and general economic
conditions.  Additionally,  the  Company may not have the ability to develop new
products  cost-effectively.  There  may be other  risks and  uncertainties  that
management is not able to predict.

When  used in this  Quarterly  Report,  words  such as  "believes,"  "expects,",
"intends,"  "plans,"  "anticipates,"  "estimates"  and similar  expressions  are
intended to identify forward-looking  statements,  although there may be certain
forward-looking   statements   not   accompanied   by  such   expressions.   All
forward-looking statements are intended to be covered by the safe harbor created
by Section 21E of the Securities Exchange Act of 1934.


LIQUIDITY AND CAPITAL RESOURCES

The Company relies upon current sales of music libraries and jingles on terms of
cash upon delivery for operating  liquidity.  Liquidity is also provided by cash
receipts from  customers  under  contracts for  production  libraries and weekly
music service contracts having terms of one month to three years. The Company is
obligated  to provide  music  updates  throughout  the  contract  terms for both
production library and weekly music service contracts. Sales of music libraries,
jingles,  and the payments  under  production  library and weekly music  service
contracts will provide, in the opinion of management, adequate liquidity to meet
operating requirements at least through the end of fiscal 2001.

During the six months ended March 31, 2001 approximately  $116,000 was spent for
the purchase of property and equipment,  primarily  associated  with upgrades of
network  hardware  and  software  and the  conversion  of  warehouse  space into
offices.  Purchases  of property and  equipment  for the same period in 2000 was
$92,000 and included costs related to the upgrade of production  equipment and a
new delivery  van.  Expenditures  for product  development  for the quarter were
approximately  $54,000 and $59,000  for 2001 and 2000,  respectively.  Funds for
operating needs, new product development and capital expenditures for the period
were  provided from cash  reserves and  operations  of the Company.  The Company
generated  cash flows from  operations  of  approximately  $428,000 and $288,000
during the six months ended March 31, 2001 and 2000, respectively. The Company's
expenditures  for  property,  equipment,  and  development  of new  products are
discretionary. Product development expenditures are expected to be approximately
$260,000 in fiscal 2001.  Management  anticipates that cash flow from operations
and cash reserves will be sufficient to meet these capital requirements at least
through  the end of fiscal  year  2001.  The  Company  has no other  significant
commitments for capital expenditures in fiscal 2001.


                                       7
<PAGE>

RESULTS OF CONTINUING OPERATIONS

Comparison of the Three Month Periods Ended March 31, 2001 and 2000
-------------------------------------------------------------------

Revenues  decreased  approximately  $266,000 or 15.8% in the three month  period
ended March 31, 2001 as compared to the same period for the previous  year.  The
revenue  decrease was primarily due to a decrease in revenues for music services
of $142,000,  production  libraries of $140,000 and comedy  services of $50,000.
Offsetting  these  decreases  was an increase  in jingle  revenue of $60,000 and
other revenue of $6,000.

Revenues of weekly HitDisc services decreased  $25,000,  while GoldDisc revenues
fell $117,000, resulting in a net decrease in music services revenue of 20.5% as
compared  to the same period of the  previous  year.  As the compact  disc music
library  market  matures,  sales of compact discs are generated  primarily  from
changes in music formats or sales of new music  libraries or formats rather than
from  conversions  to compact  disc music  delivery  technology.  The market for
compact disc music  libraries to broadcast  customers  has reached a substantial
level of  maturity  in the United  States,  which is the  market  from which the
Company derives most of its music library  revenues.  A decline in revenues from
music library sales may result in a proportionately greater decline in operating
income because music  libraries  provide higher margins than the Company's other
products.  However,  management  believes the  introduction of new products will
counteract the declines in revenues from existing music libraries.  In addition,
the  Company  contracts  with third  party  sales  representatives  for sales in
certain foreign  markets.  Changes in  representatives  and the terms of ongoing
agreements are expected to favorably  impact future revenues from  international
sales.  Renewals and new sales growth are subject to customer  acceptance of the
new products.

Production  library  revenues  decreased  $140,000,   or  29.8%.   Decreases  in
production  library revenue is largely due to a decrease in advertising  revenue
generated from barter sales. The softening of the advertising  market brought on
by the downturn in the economy in the current fiscal quarter resulted in reduced
rates for  advertising  spots  used to  generate  a  substantial  portion of the
revenue for production  libraries and other TM Century  products.  Cash sales to
both domestic and  international  clients saw an increase in the current quarter
compared to the same period last year.  The Company  continues to concentrate on
new product  development  in this  category and has  broadened the target market
beyond the radio  broadcast  industry  to include  television,  post  production
houses,  web sites and  commercial  businesses.  Sales and new sales  growth are
subject to customer acceptance of the new products.

Jingles revenue increased $60,000,  or 22.2% over the same period in 2000 due to
an  increase  in  custom  jingle  production  domestically  and an  increase  in
royalties revenue.

Comedy network revenue decreased  $50,000,  or 19.9% compared to the same period
in 2000. This decrease was primarily due to the decrease in advertising  revenue
generated from barter sales.

Commissions  decreased  $100,000 or 29.00%,  and reflects the decrease in barter
revenue. As a percentage of revenues,  commissions decreased from 20.3% to 17.0%
due to changes in the revenue structure where barter revenue decreased.

Production,  programming and technical costs decreased $20,000 or 4.2%, and as a
percentage of revenue  increased  from 28.2% to 32.1%.  The decrease in costs is
due to a combination of cost reduction  efforts and staff  reorganization  which
resulted in more efficient disc production.


                                       8
<PAGE>

General and  administrative  costs  decreased  $26,000,  or 5.1%,  reflecting  a
decrease in legal costs, salaries and benefits and facilities expenses.

Selling  costs  decreased  $25,000  or 9.0%,  and as a  percentage  of  revenues
increased  from  16.2% to 17.5%.  The  decrease  in  expenses  was  created by a
decrease in the commission expense reflective of the decreased revenues.

Depreciation  and  amortization  of property and equipment  decreased  $4,600 or
11.4% and is primarily due to more  depreciable  assets nearing the end of their
depreciable lives.

Comparison of the Six Month Periods Ended March 31, 2001 and 2000
-----------------------------------------------------------------

Revenues decreased  approximately $135,000 or 4.1% in the six month period ended
March 31, 2001 as compared to the same period for the previous year. The revenue
decrease  was  primarily  due to a decrease  in revenues  for music  services of
$258,000 and jingles of $10,000, offset by increases in revenues from production
libraries of $42,000, and comedy of $91,000.

Revenues of weekly HitDisc services decreased  $48,000,  while GoldDisc revenues
decreased  $210,000,  resulting in a decrease in music services revenue of 18.6%
as compared to the same period of the  previous  year.  The  decrease in compact
disc music  library  revenues  was  primarily  due to a  decrease  in weekly and
recurrent  music sales for  international  customers.  As the compact disc music
library  market  matures,  sales of compact discs are generated  primarily  from
changes in music formats or sales of new music  libraries or formats rather than
from  conversions  to compact  disc music  delivery  technology.  The market for
compact disc music  libraries to broadcast  customers  has reached a substantial
level of  maturity  in the United  States,  which is the  market  from which the
Company derives most of its music library  revenues.  The Company has engaged in
the  development of additional  delivery media for music services as a method of
increasing  product  sales.  A decline in revenues  from music library sales may
result in a  proportionately  greater decline in operating  income because music
libraries  provide higher margins than the Company's  other  products.  However,
management  believes  the  introduction  of new  products  will  counteract  the
declines in revenues from existing  music  libraries.  In addition,  the Company
contracts with third party sales  representatives  for sales in certain  foreign
markets.  Changes in  representatives  and the terms of ongoing  agreements  are
expected to favorably impact future revenues from international sales.  Renewals
and new sales growth are subject to customer acceptance of the new products.

Production library revenues increased $42,000, or 4.9%.  Increases in production
library  revenue is due to the  introduction  of new products and the broadening
markets,  both domestically and internationally.  Even though production library
revenues may decline due to the expiration of three-year  contracts,  management
believes  that  production  libraries  will  continue to generate a  significant
portion  of  overall   revenues   from  sales  of  existing   products   through
advertising/barter  arrangements and sales of new products. Although advertising
revenue for the first three  months of the period was strong,  the  softening of
the  advertising  market  brought on by the  downturn in the economy in the last
three months of the period resulted in reduced rates for advertising  spots used
to generate a substantial  portion of the revenue for  production  libraries and
other TM Century  products.  The Company continues to concentrate on new product
development  in this  category and has  broadened  the target  market beyond the
radio broadcast  industry to include  television,  post production  houses,  web
sites and  commercial  businesses.  Sales and new sales  growth  are  subject to
customer acceptance of the new products.

Jingles revenue decreased $10,000 or 1.7% over the same period in 2000. Domestic
jingles revenue reflected an increase,  primarily due to increased custom jingle
production, while international jingle production showed a decline when compared
to the same period in the prior year.

Comedy  revenue  increased  $91,000,  or 19.9%.  Increases in comedy revenue are
primarily  due to the  increase  in  advertising  sales which are  generated  by
contracts  for  services   through  barter   arrangements.   Both  domestic  and
international  cash revenues  increased over the same period last year at a rate
of 8% and 20%, respectively.

Commissions decreased $3,000 or 0.4%, and reflect the decrease in commissions
paid to third party international representatives.


                                       9
<PAGE>

Production,  programming and technical costs decreased $121,000 or 12.6%, and as
a percentage of revenue  decreased  from 29.1% to 26.5%.  These  reduced  costs,
related to the production and shipping of products, resulted from the conversion
to in-house  disc  production  which allows the Company to control costs through
lower inventory levels and more efficient use of personnel.

General  and  administrative  costs  decreased  $39,000  or 4.0%,  reflecting  a
decrease in professional fees, travel costs and bad debt expense.

Selling  costs  decreased  $17,000  or 3.3%,  and as a  percentage  of  revenues
increased  from 15.2% to 15.3%.  The  decrease  in selling  expenses  reflects a
decrease in sales commissions indicative of the overall decrease in revenues.

Depreciation  and  amortization of property and equipment  decreased  $17,000 or
19.8% and is primarily due to more  depreciable  assets nearing the end of their
depreciable lives.







                                       10
<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal proceedings - Not applicable.

Item 2. Changes in securities - Not applicable.

Item 3. Defaults upon senior securities - Not applicable.

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




                                       11
<PAGE>

                                   SIGNATURES

In  accordance  with  Section 13 or 15(d) of the Exchange  Act,  the  registrant
caused this report to be signed on its behalf by the undersigned  thereunto duly
authorized.

                                                 Dated: May 10, 2001

                                                 TM CENTURY, INC.


                                                 BY:/s/Teri R.S. James
                                                    ------------------
                                                 Teri R.S. James
                                                 Chief Financial Officer
                                                 (Principal Accounting Officer)


                                                 BY:/s/R. David Graupner
                                                    --------------------
                                                 R. David Graupner
                                                 Chief Executive Officer
                                                 (Principal Executive Officer)






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