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, 2002



             [ ] 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, 2002
was 2,481,193.

Transitional Small Business Disclosure Format (check one): Yes    No X
                                                              ---   ---
<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
                                 Balance Sheets
                March 31, 2002 (Unaudited) and September 30, 2001

                                     ASSETS

                                                                           March 31, 2002      September 30, 2001
                                                                         ------------------    ------------------
<S>                                                                      <C>                   <C>
CURRENT ASSETS
    Cash and cash equivalents                                            $          261,638    $          464,631
    Short-term investments                                                          647,012               634,049
    Accounts receivable, less allowance for doubtful accounts
     of $91,526 and $84,589, respectively                                           606,720               540,488
    Inventories, net of allowance for obsolescence of
     $258,545 for both periods                                                      392,118               420,260
    Prepaid expenses                                                                 60,118                66,824
                                                                         ------------------    ------------------
          TOTAL CURRENT ASSETS                                                    1,967,606             2,126,252

PROPERTY AND EQUIPMENT                                                            2,953,592             2,886,485
    Less accumulated depreciation and amortization                               (2,480,201)           (2,406,438)
                                                                         ------------------    ------------------
          NET PROPERTY AND EQUIPMENT                                                473,391               480,047

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
    of $2,026,893 and $1,950,432, respectively                                      410,645               403,800
COMEDY MATERIAL RIGHTS, net of accumulated amortization
    of $80,600 and $68,200, respectively                                             43,400                55,800
OTHER ASSETS                                                                         19,804                19,804
                                                                         ------------------    ------------------

    TOTAL ASSETS                                                         $        2,914,846    $        3,085,703
                                                                         ==================    ==================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Current portion of note payable                                      $           12,000    $           13,556
    Accounts payable                                                                 46,002                11,019
    Accrued expenses                                                                151,309               110,015
    Deferred revenue                                                                 85,142                80,882
    Customer deposits                                                                72,320                72,320
                                                                         ------------------    ------------------
          TOTAL CURRENT LIABILITIES                                                 366,773               287,792

NOTE PAYABLE, less current portion                                                    9,000                16,000
CUSTOMER DEPOSITS - non-current                                                     102,554                87,517
                                                                         ------------------    ------------------
          TOTAL LIABILITIES                                                         478,327               391,309

STOCKHOLDERS' EQUITY
    Common stock, $.01 par value; authorized 7,500,000 shares;
     2,970,481 shares issued;                                                        29,705                29,705
     2,481,193 and 2,483,193 shares outstanding, respectively
    Additional paid-in capital                                                    2,275,272             2,275,272
    Retained earnings                                                             1,424,269             1,680,644
    Treasury stock - at cost, 489,288 and 487,288 shares, respectively           (1,292,727)           (1,291,227)
                                                                         ------------------    ------------------
          TOTAL STOCKHOLDERS' EQUITY                                              2,436,519             2,694,394
                                                                         ------------------    ------------------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $        2,914,846    $        3,085,703
                                                                         ==================    ==================
</TABLE>


                   See notes to interim financial statements
                                       2
<PAGE>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
               For The Three Months Ended March 31, 2002 and 2001


                                                         2002           2001
                                                     -----------    -----------

REVENUES                                             $ 1,239,733    $ 1,418,456
      Less  Commissions                                  207,012        241,949
                                                     -----------    -----------
           NET REVENUES                                1,032,721      1,176,507

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       395,142        454,973
      General and Administrative                         526,837        474,141
      Selling Costs                                      230,919        247,758
      Depreciation                                        37,224         35,600
                                                     -----------    -----------
           TOTAL COSTS AND EXPENSES                    1,190,122      1,212,472

                                                     -----------    -----------
OPERATING LOSS                                          (157,401)       (35,965)

OTHER INCOME
      Interest income                                      3,949          8,110
      Other income                                           100             14
                                                     -----------    -----------
           TOTAL OTHER INCOME                              4,049          8,124
                                                     -----------    -----------

LOSS BEFORE PROVISION FOR INCOME TAXES                  (153,352)       (27,841)

PROVISION FOR INCOME TAXES                                  --             --

                                                     -----------    -----------
NET LOSS                                             $  (153,352)   $   (27,841)
                                                     ===========    ===========

RETAINED EARNINGS, BEGINNING OF PERIOD                 1,577,621      1,599,743
                                                     -----------    -----------

RETAINED EARNINGS, END OF PERIOD                     $ 1,424,269    $ 1,571,902
                                                     ===========    ===========

BASIC NET LOSS PER COMMON SHARE                      $     (0.06)   $     (0.01)
                                                     ===========    ===========

DILUTED NET LOSS PER COMMON SHARE                    $     (0.06)   $     (0.01)
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING             2,481,193      2,483,193
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,481,193      2,483,193
                                                     ===========    ===========


                   See notes to interim financial statements
                                       3


<PAGE>
                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
                For The Six Months Ended March 31, 2002 and 2001



                                                         2002           2001
                                                     -----------    -----------
REVENUES                                             $ 2,487,150    $ 3,151,392
      Less  Commissions                                  422,468        623,704
                                                     -----------    -----------
           NET REVENUES                                2,064,682      2,527,688

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       807,718        836,489
      General and Administrative                         995,879        929,734
      Selling Costs                                      458,781        482,142
      Depreciation                                        73,763         70,436
                                                     -----------    -----------
           TOTAL COSTS AND EXPENSES                    2,336,141      2,318,801

                                                     -----------    -----------
OPERATING INCOME (LOSS)                                 (271,459)       208,887

OTHER INCOME
      Interest income                                     14,984         14,047
      Other income                                           100             35
                                                     -----------    -----------
           TOTAL OTHER INCOME                             15,084         14,082
                                                     -----------    -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES         (256,375)       222,969

PROVISION FOR INCOME TAXES                                  --             --

                                                     -----------    -----------
NET INCOME (LOSS)                                    $  (256,375)   $   222,969
                                                     ===========    ===========


RETAINED EARNINGS, BEGINNING OF PERIOD                 1,680,644      1,348,933
                                                     -----------    -----------

RETAINED EARNINGS, END OF PERIOD                     $ 1,424,269    $ 1,571,902
                                                     ===========    ===========

BASIC NET INCOME (LOSS) PER COMMON SHARE             $     (0.10)   $      0.09
                                                     ===========    ===========

DILUTED NET INCOME (LOSS) PER COMMON SHARE           $     (0.10)   $      0.09
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING             2,482,443      2,483,193
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,482,443      2,486,666
                                                     ===========    ===========

                    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, 2002 and 2001

                                                                                     2002         2001
                                                                                   ---------    ---------
<S>                                                                                <C>          <C>
OPERATING ACTIVITIES
     Net income (loss)                                                             $(256,375)   $ 222,969
     Adjustments to reconcile net income (loss) to
     net cash provided by (used for) operating activities
            Depreciation and amortization of property and equipment                   73,763       70,436
            Amortization of product development costs and comedy material rights      88,861       87,858
            Provision for doubtful accounts                                            6,937        8,750
     Increase (decrease) from changes in operating assets
     and liabilities:
            Accounts receivable                                                      (73,169)     196,450
            Inventories                                                               28,142       19,007
            Product development costs                                                (83,306)     (99,490)
            Prepaid expenses                                                           6,706      (57,831)
            Accounts payable and accrued expenses                                     76,277      (22,499)
            Deferred revenue                                                           4,260       (1,123)
            Customer deposits                                                         15,037        3,950
                                                                                   ---------    ---------
     NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                            (112,867)     428,477

INVESTING ACTIVITIES
     Purchase of short-term investments                                              (12,963)    (312,304)
     Purchases of property and equipment                                             (67,107)    (116,059)
     Acquisition of treasury stock                                                    (1,500)        --
                                                                                   ---------    ---------
     NET CASH USED IN INVESTING ACTIVITIES                                           (81,570)    (428,363)

FINANCING ACTIVITIES
     Principal payments on note payable                                               (8,556)     (16,667)
                                                                                   ---------    ---------
     NET CASH USED IN FINANCING ACTIVITIES                                            (8,556)     (16,667)
                                                                                   ---------    ---------

NET DECREASE IN CASH AND CASH EQUIVALENTS                                           (202,993)     (16,553)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                     464,631      422,339
                                                                                   ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                         $ 261,638    $ 405,786
                                                                                   =========    =========
</TABLE>


                    See notes to interim financial statements
                                       5
<PAGE>
<TABLE>
<CAPTION>

                                 TM CENTURY INC.

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                                 March 31, 2002

1.  BASIS OF PRESENTATION

The interim  financial  statements of TM Century,  Inc. (the "Company") at March
31, 2002,  and for the three and six months  ended March 31, 2002 and 2001,  are
unaudited,  and include all  adjustments  (consisting  only of normal  recurring
adjustments) which the Company considers necessary for a fair presentation.  The
September 30, 2001 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, 2001.

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, 2002 are not necessarily indicative
of the results that can be expected for the entire fiscal year.

2.  TREASURY STOCK

On October  29,  2001 the Board of  Directors,  by  resolution,  authorized  the
Company to purchase up to 100,000  shares of its common stock on the open market
or through privately negotiated transactions,  from time to time, dependent upon
market  conditions,  from November 1, 2001 through October 31, 2003. As of March
31, 2002 the Company has made  purchases of 2,000 shares at an average  price of
$.75 per share.  These  purchases  were funded by cash  reserves of the Company.
Future  purchases are expected to be funded from  operations or cash reserves of
the Company.

3.  EARNINGS (LOSS) PER SHARE

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

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

                                                        Three Months Ended             Six Months Ended
                                                             March 31                      March 31
                                                    --------------------------    --------------------------
                                                        2002           2001           2002           2001
                                                    -----------    -----------    -----------    -----------
<S>                                                 <C>            <C>            <C>            <C>
Net Income (Loss)                                   $  (153,352)   $   (27,841)   $  (256,375)   $   222,969

Weighted Average Number of Shares Outstanding
      Basic                                           2,481,193      2,483,193      2,482,443      2,483,193
      Dilutive effect of common stock equivalents             0              0              0          3,473
                                                    -----------    -----------    -----------    -----------
      Diluted                                         2,481,193      2,483,193       2482,443      2,486,666

Earnings Per Share:
      Basic Net Income (Loss)                       $      (.06)   $      (.01)   $      (.10)   $       .09
                                                    ===========    ===========    ===========    ===========
      Diluted Net Income (Loss)                     $      (.06)   $      (.01)   $      (.01)   $       .09
                                                    ===========    ===========    ===========    ===========
</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 including, but not limited to, terrorist attacks on the United States
and the effect on the economy in general and on the  Company's  revenue  base in
particular.  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 2002.

TM  Century's  cash balance  decreased  from  $465,000 at September  30, 2001 to
$262,000 at March 31, 2002,  primarily  due to the timing of cash  receipts from
advertising network representatives, a net loss of $256,000 (offset partially by
changes in  operating  assets and  liabilities),  and  purchases of property and


                                       7
<PAGE>

equipment.  During the six months ended March 31, 2002 approximately $67,000 was
spent for the  purchase of property and  equipment,  primarily  associated  with
upgrades of network  hardware and  software and the addition of a recording  and
mixing  studio.  Purchases of property and equipment for the same period in 2001
totaled  $116,000  and  included  costs  related to the  upgrade  of  production
equipment and the conversion of warehouse space into offices.  Expenditures  for
product  development  for the six month  period were  approximately  $83,000 and
$99,000 for 2002 and 2001, 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 used approximately  $113,000
to fund  operations  during the six months ended March 31, 2002 primarily due to
the net loss for the period (offset partially by changes in operating assets and
liabilities) compared to cash flow from operations of approximately $428,000 for
the same period of 2001 which produced net income of approximately $223,000. The
Company's expenditures for property,  equipment, and development of new products
are  discretionary.   Product  development   expenditures  are  expected  to  be
approximately  $240,000 in fiscal 2002.  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 2002.  The Company has no
other significant commitments for capital expenditures in fiscal 2002.



RESULTS OF CONTINUING OPERATIONS

Comparison of the Three Month Periods Ended March 31, 2002 and 2001
-------------------------------------------------------------------

Revenues  decreased  approximately  $178,000 or 12.68% in the three month period
ended March 31, 2002 as compared to the same period for the previous  year.  The
events that  occurred on  September  11, 2001 and the  subsequent  effect on the
advertising  industry had a continuing impact on second quarter revenues for all
product lines,  which  historically  derived  approximately  50% of revenue from
barter agreements. Barter revenues are derived from obtaining airtime from radio
stations in exchange  for products and  marketing  such airtime to  advertisers.
Barter  revenue for the  three-month  period  ended March 31, 2002 was  $401,000
compared to  $445,000  for the same period of 2001.  The  revenue  decrease  was
comprised of a decrease in revenues for music services of approximately  $2,000,
jingles of $3,000 and comedy  services  of  $52,000,  offset by an  increase  in
revenues from production libraries of $13,000.

Revenues of weekly HitDisc services decreased  $59,000,  while GoldDisc revenues
fell $26,000,  resulting in a net decrease in music services revenue of 15.6% 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. The Company has made changes
in the  product  composition  in an  effort to appeal  to  markets  outside  the
broadcast  industry  with some  success.  The  Company  has also  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 12.9%.  Although  advertising
revenue  overall  decreased,  due to the method of  apportioning  revenue  among
product  lines the increase in production  library  revenue is largely due to an
increase in the percentage of the  advertising  revenue  allocated to production
library sales. 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.  Royalties derived from the American Society of Composers, Authors
and Publishers  (ASCAP) increased $32,000 due to a distribution based upon prior
year broadcasts.


                                       8
<PAGE>

Jingles  revenue  decreased  $70,000,  or 21.3%  over the same  period  in 2001,
primarily due to a $74,000 decrease in custom jingle production domestically.  A
new jingle product line marketed as Studio  Dragonfly,  a web site based product
specifically designed to sell older jingle packages at reduced rates,  generated
$21,000 in revenue for the quarter ended March 31, 2002.

Comedy network revenue decreased  $55,000,  or 27.4% compared to the same period
in 2001. This decrease was primarily due to the decrease in advertising revenue.
Historically, comedy service contracts comprised over 40% of the barter business
for the Company,  however,  an increase in the number of barter  agreements  for
other products in 2002 reduced the percentage of advertising  revenue  allocable
to comedy.

Commissions  decreased  $35,000 or 14.4% and reflect a combination  of decreased
barter  revenue  and  commissions  paid  to  third  party   representatives  for
international  sales.  As a percentage of revenues,  commissions  decreased from
17.0% to 16.7% due to an increase in direct international sales.

Production, programming and technical costs decreased $60,000 or 13.2%, and as a
percentage of revenue  decreased  from 32.1% to 31.9%.  The decrease in costs is
due to a  combination  of cost  reduction  efforts  and the  reduction  of costs
related to custom jingle production.

General and administrative  costs increased  $53,000,  or 11.1% primarily due to
professional fees incurred developing a patent application for the SOLD-RITE(TM)
(Secure On Line Delivery of Recordings,  Information,  Text, and  Entertainment)
System, a method of delivering content to consumers via the Internet.  Ownership
of the patent,  if granted,  will belong to Sold-Rite  Holdings  LLC, a separate
entity of which the Company will own 42.5%.

Selling  costs  decreased  $17,000,  or 6.8%,  and as a  percentage  of revenues
increased  from  17.5% to 18.6%.  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 increased $1,600 or 4.6%
due to the addition of property and equipment in prior months.

Comparison of the Six Month Periods Ended March 31, 2002 and 2001
-----------------------------------------------------------------

Revenues decreased approximately $664,000 or 21.1% in the six month period ended
March 31, 2002 as compared to the same period for the previous  year. The events
that occurred on September 11, 2001 and the subsequent effect on the advertising
industry  had a  significant  impact on first  quarter  revenues for all product
lines,  which  historically  derived  approximately  50% of revenue  from barter
agreements.  The  reduction in  advertising  revenue  continued  into the second
quarter,  although  there were signs of a slow  recovery.  Barter  revenues  are
derived from  obtaining  airtime from radio stations in exchange for such weekly
services and  marketing  such  airtime to  advertisers.  Barter  revenue for the
six-month  period ended March 31, 2002 was $830,000  compared to $1,306,000  for
the same period of 2001.  The revenue  decrease  was  comprised of a decrease in
revenues for music services of $46,000, production libraries of $210,000, jingle
revenues of $10,000, and comedy services of $210,000.

Revenues of weekly HitDisc services decreased $126,000,  while GoldDisc revenues
decreased $43,000, resulting in a decrease in music services revenue of 15.1% 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. The Company has made changes
in the  product  composition  in an  effort to appeal  to  markets  outside  the
broadcast  industry  with some  success.  The  Company  has also  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


                                       9
<PAGE>

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  $205,000,  or 22.8%.  The  decrease in
production  library  revenue is  primarily  due to the  decrease in  advertising
revenue.  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.  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  $67,000  or 11.8%  over the  same  period  in 2001.
Domestic  jingles  revenue  reflected a decrease in  syndicated  jingle sales of
approximately $68,000, offset by an increase in custom jingles of $13,000, while
international  jingle  production  showed a $3,600  decline when compared to the
same  period in the prior year.  A new jingle  product  line  marketed as Studio
Dragonfly,  a web site based product specifically  designed to sell older jingle
packages  at  reduced  rates,  has  generated   $21,000  in  revenue  since  its
introduction on January 2, 2002.

Comedy revenue decreased $215,000,  or 39.1%. This decrease was primarily due to
the decrease in advertising  revenue.  Historically,  comedy  service  contracts
comprised over 40% of the barter business for the Company,  however, an increase
in the  number of barter  agreements  for other  products  in 2002  reduced  the
percentage of advertising revenue allocable to comedy.

Commissions  decreased  $201,000  or 32.3%,  and  reflect a $29,000  decrease in
commissions  paid to third party  international  representatives  created by the
decrease  in  international   revenue.   The  commissions  paid  to  advertising
representatives  decreased  proportionately  with the  decrease  in  advertising
revenue.

Production,  programming  and technical costs  decreased  $29,000.  The greatest
variance in costs is reflected in the reduction of revenue-based  royalties paid
to writers for jingles and imaging libraries that were affected by the decreased
advertising revenue.

General and administrative  costs increased $66,000 or 7.1%. A $10,000 reduction
in  sublease   proceeds   resulted  in  an  increase  in  facilities   expenses.
Professional  fees in the amount of $56,000  were  incurred  developing a patent
application  for the  SOLD-RITE(TM)  (Secure  On Line  Delivery  of  Recordings,
Information,  Text, and Entertainment) System, a method of delivering content to
consumers via the Internet.  Ownership of the patent, if granted, will belong to
Sold-Rite Holdings LLC, a separate entity of which the Company will own 42.5%.

Selling  costs  decreased  $23,000  or 4.8%,  and as a  percentage  of  revenues
increased  from 15.3% to 18.4%.  The  decrease  in selling  expenses  reflects a
decrease in sales commissions indicative of the overall decrease in revenues.

Depreciation  of  property  and  equipment  increased  $3,000 or 4.7% due to the
addition of property and equipment.



                                       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

The holders of approximately 69.6% or 1,725,750 shares of the outstanding common
stock of the  Company,  by  written  consent  executed  as of March 29,  2002 in
accordance  with Delaware law, (i) re-elected all five directors of the Company,
Marjorie L. McIntyre, A. Ann Armstrong, Carol M. Long, Michael Cope and R. David
Graupner,  and,  (ii)  approved the  anticipated  appointment  of King Griffin &
Adamson P.C. as the Company's  independent  certified public accountants for the
fiscal year ended  September  30, 2002.  The Company did not solicit  proxies or
consents in connection therewith.

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 9, 2002

                                                  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)