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: June 30, 2001


            ---
                  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 June 30, 2001
was 2,483,193.

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


<PAGE>
<TABLE>
<CAPTION>

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

                                     ASSETS

                                                                                June 30, 2001           September 30, 2000
                                                                            ----------------------    ----------------------
<S>                                                                         <C>                       <C>
CURRENT ASSETS
        Cash and cash equivalents                                            $            422,043      $            422,339
        Short-term investments                                                            635,575                   321,495
        Accounts receivable less allowance for doubtful
          accounts of $88,866  and $95,510 respectively                                   556,310                   693,997
        Inventories, net of allowance for obsolescence of $258,545                        405,532                   448,293
        Prepaid expenses                                                                   67,982                    44,685
                                                                            ----------------------    ----------------------
              TOTAL CURRENT ASSETS                                                      2,087,442                 1,930,809

PROPERTY AND EQUIPMENT                                                                  2,871,231                 2,730,584
        Less accumulated depreciation and amortization                                 (2,370,203)               (2,263,000)
                                                                            ----------------------    ----------------------
              NET PROPERTY AND EQUIPMENT                                                  501,028                   467,584

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
        of $1,900,883 and $1,784,549 respectively                                         403,362                   377,240
COMEDY MATERIAL RIGHTS, net of accumulated amortization
        of $62,000 and $43,400 respectively                                                62,000                    80,601
OTHER ASSETS                                                                               19,804                    19,804
                                                                            ----------------------    ----------------------

        TOTAL ASSETS                                                         $          3,073,636      $          2,876,038
                                                                            ======================    ======================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
        Current portion of note payable                                      $             22,667      $             33,333
        Accounts payable                                                                   18,636                    48,833
        Accrued expenses                                                                  100,657                   113,017
        Deferred revenue                                                                   95,473                   100,850
        Customer deposits                                                                  55,538                    46,916
                                                                            ----------------------    ----------------------
              TOTAL CURRENT LIABILITIES                                                   292,971                   342,949

NOTE PAYABLE, less current portion                                                         18,000                    32,334
CUSTOMER DEPOSITS - NON-CURRENT                                                           141,115                   138,072
                                                                            ----------------------    ----------------------
              TOTAL LIABILITIES                                                           452,086                   513,355

STOCKHOLDERS' EQUITY
        Common stock, $.01 par value; authorized 7,500,000 shares;                         29,705                    29,705
           2,970,481 shares issued; and 2,483,193 shares outstanding
        Additional paid-in capital                                                      2,275,272                 2,275,272
        Retained earnings                                                               1,607,800                 1,348,933
        Treasury stock - at cost, 487,288 shares                                       (1,291,227)               (1,291,227)
                                                                            ----------------------    ----------------------
              TOTAL STOCKHOLDERS' EQUITY                                                2,621,550                 2,362,683
                                                                            ----------------------    ----------------------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $          3,073,636      $          2,876,038
                                                                            ======================    ======================

</TABLE>

                   See notes to interim finanical statements
                                       2

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
                For the Three Months Ended June 30, 2001 and 2000


                                                                       2001                        2000
                                                             -------------------------   -------------------------
<S>                                                          <C>                         <C>
REVENUES                                                      $             1,451,013     $             1,764,987
      Less  Commissions                                                       256,502                     374,617
                                                             -------------------------   -------------------------
           NET REVENUES                                                     1,194,511                   1,390,370

COSTS AND EXPENSES
      Production, Programming, and Technical Costs                            418,067                     479,544
      General and Administrative                                              475,963                     514,864
      Selling Costs                                                           231,651                     247,736
      Depreciation                                                             36,890                      33,692
                                                             -------------------------   -------------------------
           TOTAL COSTS AND EXPENSES                                         1,162,571                   1,275,836

                                                             -------------------------   -------------------------
OPERATING INCOME                                                               31,940                     114,534

OTHER INCOME (EXPENSE)
      Interest income                                                           4,318                       3,316
      Other income (expense), net                                                (360)                         20
                                                             -------------------------   -------------------------
           TOTAL OTHER INCOME                                                   3,958                       3,336
                                                             -------------------------   -------------------------

INCOME BEFORE PROVISION FOR INCOME TAXES                                       35,898                     117,870

PROVISION FOR INCOME TAXES                                                          -                           -

                                                             -------------------------   -------------------------
NET INCOME                                                    $                35,898     $               117,870
                                                             =========================   =========================

RETAINED EARNINGS, BEGINNING OF PERIOD                                      1,571,902                     553,475
                                                             -------------------------   -------------------------

RETAINED EARNINGS, END OF PERIOD                              $             1,607,800     $               671,345
                                                             =========================   =========================

BASIC NET INCOME PER COMMON SHARE                             $                  0.01     $                  0.05
                                                             =========================   =========================

DILUTED NET INCOME PER COMMON SHARE                           $                  0.01     $                  0.05
                                                             =========================   =========================

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                                     2,494,897                   2,489,669
                                                             =========================   =========================

</TABLE>

                   See notes to interim finanical statements
                                        3

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
                For the Nine Months Ended June 30, 2001 and 2000



                                                                     2001                         2000
                                                            ------------------------    -------------------------
<S>                                                         <C>                         <C>
REVENUES                                                     $            4,602,405      $             5,051,778
      Less  Commissions                                                     880,206                    1,000,871
                                                            ------------------------    -------------------------
           NET REVENUES                                                   3,722,199                    4,050,907

COSTS AND EXPENSES
      Production, Programming, and Technical Costs                        1,254,556                    1,436,831
      General and Administrative                                          1,405,697                    1,483,847
      Selling Costs                                                         713,794                      746,487
      Depreciation                                                          107,326                      121,588
                                                            ------------------------    -------------------------
           TOTAL COSTS AND EXPENSES                                       3,481,373                    3,788,753

                                                            ------------------------    -------------------------
OPERATING INCOME                                                            240,826                      262,154

OTHER INCOME (EXPENSE)
      Interest income                                                        18,366                        4,454
      Other income (expense), net                                              (325)                       1,054
                                                            ------------------------    -------------------------
           TOTAL OTHER INCOME                                                18,041                        5,508
                                                            ------------------------    -------------------------

INCOME BEFORE PROVISION FOR INCOME TAXES                                    258,867                      267,662

PROVISION FOR INCOME TAXES                                                        -                            -

                                                            ------------------------    -------------------------
NET INCOME                                                   $              258,867      $               267,662
                                                            ========================    =========================

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

RETAINED EARNINGS, END OF PERIOD                             $            1,607,800      $               671,345
                                                            ========================    =========================

BASIC NET INCOME PER COMMON SHARE                            $                 0.10      $                  0.11
                                                            ========================    =========================

DILUTED NET INCOME PER COMMON SHARE                          $                 0.10      $                  0.11
                                                            ========================    =========================

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                                   2,491,969                    2,490,488
                                                            ========================    =========================

</TABLE>

                    See notes to interim finanical statements
                                        4

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
                      Statements of Cash Flows (Unaudited)
                For the Nine Months Ended June 30, 2001 and 2000

                                                                                             2001                 2000
                                                                                       -----------------    -----------------
<S>                                                                                    <C>                  <C>
OPERATING ACTIVITIES
     Net income                                                                         $       258,867      $       267,662
     Adjustments to reconcile net income to
     net cash provided by operating activities
            Depreciation and amortization of property and equipment                             107,326              121,588
            Amortization of product development costs and comedy material rights                134,934              142,207
            Provision for doubtful accounts                                                      12,500               22,500
     Increase (decrease) from changes in operating assets and liabilities:
            Accounts receivable                                                                 125,187               50,436
            Inventories                                                                          42,761              (10,386)
            Product development costs                                                          (142,455)            (169,320)
            Prepaid expenses                                                                    (23,297)             (16,653)
            Other assets                                                                              -                 (550)
            Accounts payable and accrued expenses                                               (42,557)             (73,050)
            Deferred revenue                                                                     (5,377)             (47,294)
            Customer deposits                                                                    11,665               39,356
                                                                                       -----------------    -----------------
     NET CASH PROVIDED BY OPERATING ACTIVITIES                                                  479,554              326,496

INVESTING ACTIVITIES
     Purchase of short-term investments                                                        (314,080)                   -
     Purchases of property and equipment                                                       (140,770)            (131,375)
                                                                                       -----------------    -----------------
     NET CASH USED IN INVESTING ACTIVITIES                                                     (454,850)            (131,375)

FINANCING ACTIVITIES
     Principal payments on note payable                                                         (25,000)             (25,000)
     Principal payments on capital lease obligations                                                  -               (3,202)
                                                                                       -----------------    -----------------
     NET CASH USED IN FINANCING ACTIVITIES                                                      (25,000)             (28,202)
                                                                                       -----------------    -----------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               (296)             166,919

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

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                              $       422,043      $       521,251
                                                                                       =================    =================

</TABLE>

                    See notes to interim finanical statements
                                        5

<PAGE>
<TABLE>
<CAPTION>

                                 TM CENTURY INC.

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                                  June 30, 2001

1.  BASIS OF PRESENTATION

The interim financial statements of TM Century, Inc. (the "Company") at June 30,
2001,  and for the three  and nine  months  ended  June 30,  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 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 nine months ended June 30, 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 include common
stock equivalents, if dilutive.

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

                                                         Three Months Ended             Nine months Ended
                                                               June 30                       June 30
                                                    ---------------------------   ---------------------------
                                                         2001           2000           2001           2000
                                                         ----           ----           ----           ----
<S>                                                 <C>            <C>            <C>            <C>

Net Income                                                35,898        117,870        258,867        267,662


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         11,704          6,476          8,776          7,295
                                                    ------------   ------------   ------------   ------------
      Diluted                                          2,494,897      2,489,669      2,491,969      2,490,488

Earnings Per Share:
      Basic                                         $        .01   $        .05   $        .10   $        .11
                                                    ============   ============   ============   ============
      Diluted                                       $        .01   $        .05   $        .10   $        .11
                                                    ============   ============   ============   ============

</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 nine months ended June 30, 2001 approximately  $141,000 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
$131,000 and included costs related to the upgrade of production equipment and a
new  delivery  van.  Expenditures  for product  development  for the nine months
ending  June  30,  2001 and  2000  were  approximately  $142,000  and  $169,000,
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
$480,000  and  $326,000  during the nine  months  ended June 30,  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 OPERATIONS

Comparison of the Three Month Periods Ended June 30, 2001 and 2000
------------------------------------------------------------------

Revenues decreased  approximately  $314,000,  or 17.8% in the three month period
ended June 30, 2001 as compared to the same period for the  previous  year.  The
revenue  decrease  was due to a  decrease  in  revenues  for music  services  of
$93,000,  production  libraries  of  $120,000,  jingles  of  $23,000  and comedy
services of $78,000.

The majority of the Company's  clients are businesses that depend on advertising
sales for their income.  The serious recession in advertising  expenditures this
year has caused  most,  if not all, of these  businesses  to curtail or postpone
spending,  especially in  non-essential  products such as those  marketed by the
Company.  It is management's  view that the worst of the recession is past and a
return to positive  growth trends for  advertising is anticipated for the fourth
calendar quarter of this year, which should in turn result in increased spending
on products such as those marketed by the Company.

Revenues of weekly HitDisc services decreased  $39,000,  while GoldDisc revenues
fell $54,000,  resulting in a net decrease in music services revenue of 14.3% 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 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  decreased  $120,000,   or  22.4%.   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  Company  products.  Cash sales to
domestic  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 decreased $23,000, or 8.6% over the same period in 2000 due to a
$28,000 decrease in jingle production both domestically and internationally. The
decrease  in  jingle  production  revenue  was  offset by a $5,800  increase  in
royalties.


                                       8
<PAGE>

Comedy network revenue decreased  $78,000,  or 24.8% compared to the same period
in 2000. This decrease was primarily due to the decrease in advertising  revenue
generated from barter sales.

Commissions deFcreased $118,000, or 31.5%, and reflect both the decrease in
barter revenue and international revenue generated by third party
representatives. As a percentage of revenues, commissions decreased from 21.2%
to 17.7% due to changes in the revenue structure where barter revenue decreased.

Production,  programming and technical costs decreased $61,000, or 12.8%, and as
a percentage of revenue  increased from 27.2% to 28.8%. The decrease in costs is
due to a combination of cost reduction  efforts and staff  reorganization  which
resulted in more efficient disc production.

General and  administrative  costs  decreased  $39,000,  or 7.6%,  reflecting  a
decrease in legal costs, salaries and benefits and facilities expenses.

Selling  costs  decreased  $16,000,  or 6.5%,  and as a  percentage  of revenues
increased  from  14.0% to 16.0%.  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  $3,200,  or
9.5%, reflecting the purchase of depreciable assets in the current period.

Comparison of the Nine Month Periods Ended June 30, 2001 and 2000
-----------------------------------------------------------------

Revenues  decreased  approximately  $449,000,  or 8.9% in the nine month  period
ended June 30, 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 $352,000,  production libraries of $78,000,  jingles of $32,000, offset by an
increase in comedy revenue of $13,000.

The majority of the Company's  clients are businesses that depend on advertising
sales for their income.  The serious recession in advertising  expenditures this
year has caused  most,  if not all, of these  businesses  to curtail or postpone
spending,  especially in  non-essential  products such as those  marketed by the
Company.  It is management's  view that the worst of the recession is past and a
return to positive  growth trends for  advertising  is anticipated in the fourth
calendar quarter of this year, which should in turn result in increased spending
on products such as those marketed by the Company.

Revenues of weekly HitDisc services decreased  $87,000,  while GoldDisc revenues
decreased  $265,000,  resulting in a decrease in music services revenue of 17.3%
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  decreased $78,000,  or 5.6%.  Although  production
library revenue generated from cash sales increased $87,000, or 28.2%, a drop in
barter  revenue of $164,000  resulted in the overall  reduction  in revenues for
this product.  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 the
introduction of new products and the broadening  markets,  both domestically and


                                       9
<PAGE>

internationally.  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 six 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  Company  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  $32,000,  or 3.9%  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  $13,000,  or 1.8%. The increase in comedy revenue was
due to an increase in  advertising  revenues in the first  quarter of the period
generated by sales of services on barter.  Both domestic and international  cash
revenues  increased  over the  same  period  last  year at a rate of 2% and 12%,
respectively.

Commissions  decreased  $121,000,  or 12.0%,  and reflect  both the  decrease in
barter   revenue   and   international   revenue   generated   by  third   party
representatives.

Production, programming and technical costs decreased $182,000, or 12.7%, and as
a percentage of revenue  decreased  from 28.4% to 27.26%.  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  $78,000,  or 5.3%,  reflecting  a
decrease in professional fees, travel costs and bad debt expense.

Selling  costs  decreased  $33,000,  or 4.4%,  and as a  percentage  of revenues
increased  from 14.8% to 15.5%.  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  $14,000,  or
11.7% and is primarily due to more  depreciable  assets nearing the end of their
depreciable lives.






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<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 69.5% or 1,725,750 shares of the outstanding common
stock of the  Company,  by  written  consent  executed  as of April 30,  2001 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,  (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, 2001,  and (iii)  ratified the TM Century,  Inc. 2000
Stock Option Plan. 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






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<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 August 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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