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, 2003



             [ ] 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, 2003
was 2,481,193.

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

<PAGE>
<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS AND NOTES

                        TM Century, Inc. and Subsidiaries
                           Consolidated Balance Sheets


                                     ASSETS

                                                                   June 30, 2003      September 30, 2002
                                                                    (Unaudited)
                                                                ------------------    ------------------
<S>                                                             <C>                   <C>
CURRENT ASSETS
   Cash and cash equivalents                                    $          725,547    $          459,649
   Short-term investments                                                  660,038               645,452
   Accounts receivable, less allowance for doubtful accounts
     of $46,782 and $49,181, respectively                                  783,234               635,814
   Inventories, net of allowance for obsolescence of $258,545
     for both periods                                                      351,651               369,779
   Prepaid expenses                                                        165,871                88,577
                                                                ------------------    ------------------
         TOTAL CURRENT ASSETS                                            2,686,341             2,199,271

PROPERTY AND EQUIPMENT                                                   3,052,092             2,981,103
   Less accumulated depreciation and amortization                       (2,671,298)           (2,556,719)
                                                                ------------------    ------------------
         NET PROPERTY AND EQUIPMENT                                        380,794               424,384

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
   of $621,017 and $502,474, respectively                                  411,232               403,455
COMEDY MATERIAL RIGHTS, net of accumulated amortization
   of  $111,600 and $93,000, respectively                                   12,400                31,000
OTHER ASSETS                                                                 7,000                 7,560
                                                                ------------------    ------------------

   TOTAL ASSETS                                                 $        3,497,767    $        3,065,670
                                                                ==================    ==================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Current portion of note payable                              $            6,000    $           12,000
   Accounts payable                                                         29,566                30,956
   Accrued expenses                                                         90,689                87,065
   Deferred revenue                                                        131,514               129,484
   Customer deposits - current portion                                      59,645                59,645
                                                                ------------------    ------------------
     TOTAL CURRENT LIABILITIES                                             317,414               319,150

NOTE PAYABLE, less current portion                                            --                   3,000
CUSTOMER DEPOSITS - non-current                                            142,658               107,170
                                                                ------------------    ------------------
         TOTAL LIABILITIES                                                 460,072               429,320

STOCKHOLDERS' EQUITY
   Common stock, $.01 par value; authorized 7,500,000 shares;
     2,970,481 shares issued; 2,481,193 shares outstanding                  29,705                29,705
   Additional paid-in capital                                            2,275,272             2,275,272
   Retained earnings                                                     2,025,445             1,624,100
   Treasury stock - at cost, 489,288 shares                             (1,292,727)           (1,292,727)
                                                                ------------------    ------------------
         TOTAL STOCKHOLDERS' EQUITY                                      3,037,695             2,636,350
                                                                ------------------    ------------------

   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $        3,497,767    $        3,065,670
                                                                ==================    ==================
</TABLE>



            See notes to iinterim consolidated financial statements.

                                       2
<PAGE>

                        TM Century, Inc. and Subsidiaries
                Consolidated Statements of Operations (Unaudited)


                                                     Three Months Ended June 30
                                                         2003           2002
                                                     -----------    -----------
REVENUES                                             $ 1,467,082    $ 1,352,598
      Less  Commissions                                  239,978        193,633
                                                     -----------    -----------
          NET REVENUES                                 1,227,104      1,158,965

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       362,723        409,835
      General and Administrative                         451,849        427,959
      Selling Costs                                      199,859        203,854
      Depreciation                                        38,607         38,441
                                                     -----------    -----------
          TOTAL COSTS AND EXPENSES                     1,053,038      1,080,089

                                                     -----------    -----------
OPERATING INCOME                                         174,066         78,876

OTHER INCOME
      Interest income                                      4,429            472
      Other income                                          --              419
                                                     -----------    -----------
          TOTAL OTHER INCOME                               4,429            891
                                                     -----------    -----------

INCOME BEFORE PROVISION FOR INCOME TAXES                 178,495         79,767

INCOME TAX EXPENSE                                          --             --
                                                     -----------    -----------
NET INCOME                                           $   178,495    $    79,767
                                                     ===========    ===========

BASIC NET INCOME PER COMMON SHARE                    $      0.07    $      0.03
                                                     ===========    ===========

DILUTED NET INCOME PER COMMON SHARE                  $      0.07    $      0.03
                                                     ===========    ===========

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,518,704      2,487,287
                                                     ===========    ===========





            See notes to iinterim consolidated financial statements.

                                       3
<PAGE>

                        TM Century, Inc. and Subsidiaries
                Consolidated Statements of Operations (Unaudited)



                                                      Nine Months Ended June 30
                                                          2003          2002
                                                      -----------   -----------

REVENUES                                              $ 4,168,169   $ 3,839,749
      Less  Commissions                                   662,860       616,100
                                                      -----------   -----------
           NET REVENUES                                 3,505,309     3,223,649

COSTS AND EXPENSES
      Production, Programming, and Technical Costs      1,083,411     1,217,553
      General and Administrative                        1,348,828     1,423,839
      Selling Costs                                       573,675       662,635
      Depreciation                                        114,579       112,204
                                                      -----------   -----------
           TOTAL COSTS AND EXPENSES                     3,120,493     3,416,231

                                                      -----------   -----------
OPERATING INCOME (LOSS)                                   384,816      (192,582)

OTHER INCOME
      Interest income                                      16,529        15,455
      Other income                                           --             519
                                                      -----------   -----------
           TOTAL OTHER INCOME                              16,529        15,974
                                                      -----------   -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES           401,345      (176,608)

INCOME TAX EXPENSE                                           --            --
                                                      -----------   -----------
NET INCOME (LOSS)                                     $   401,345   $  (176,608)
                                                      ===========   ===========

BASIC NET INCOME (LOSS) PER COMMON SHARE              $      0.16   $     (0.07)
                                                      ===========   ===========

DILUTED NET INCOME (LOSS) PER COMMON SHARE            $      0.16   $     (0.07)
                                                      ===========   ===========

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                 2,495,800     2,481,193
                                                      ===========   ===========






            See notes to iinterim consolidated financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

                        TM Century, Inc. and Subsidiaries
                Consolidated Statements of Cash Flows (Unaudited)

                                                                                 For The Nine Months Ended June 30
                                                                                      2003               2002
                                                                                 --------------     --------------
<S>                                                                              <C>                <C>
OPERATING ACTIVITIES
   Net income (loss)                                                             $      401,345     $     (176,608)
   Adjustments to reconcile net income (loss) to
   net cash provided by (used in) operating activities
          Depreciation and amortization of property and equipment                       114,579            112,204
          Amortization of product development costs and comedy material rights          137,143            135,552
          Provision for doubtful accounts                                                16,500             13,000
          Reduction in carrying value of inventories                                      4,500               --
   Increase (decrease) from changes in operating assets
   and liabilities:
          Accounts receivable                                                          (163,920)           (53,621)
          Inventories                                                                    13,628             42,318
          Product development costs                                                    (126,320)          (123,343)
          Prepaid expenses                                                              (77,294)             6,383
          Other assets                                                                      560             (3,169)
          Accounts payable and accrued expenses                                           2,234            (39,603)
          Deferred revenue                                                                2,030            (25,285)
          Customer deposits                                                              35,488                256
                                                                                 --------------     --------------
   NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                  360,473           (111,916)

INVESTING ACTIVITIES
   Purchase of short-term investments                                                   (14,586)           (13,164)
   Purchases of property and equipment                                                  (70,989)           (89,193)
                                                                                 --------------     --------------
   NET CASH USED IN INVESTING ACTIVITIES                                                (85,575)          (102,357)

FINANCING ACTIVITIES
   Principal payments on note payable                                                    (9,000)           (11,556)
   Acquisition of treasury stock                                                           --               (1,500)
                                                                                 --------------     --------------
   NET CASH USED IN FINANCING ACTIVITIES                                                 (9,000)           (13,056)
                                                                                 --------------     --------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                    265,898           (227,329)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                        459,649            464,631
                                                                                 --------------     --------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       $      725,547     $      237,302
                                                                                 ==============     ==============
</TABLE>






            See notes to iinterim consolidated financial statements.

                                       5
<PAGE>


                        TM CENTURY INC. AND SUBSIDIARIES

               NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

                                  June 30, 2003

1. BASIS OF PRESENTATION

The  interim  consolidated   financial  statements  of  TM  Century,  Inc.  (the
"Company")  at June 30,  2003,  and for the three and nine months ended June 30,
2003 and 2002,  are unaudited and include all  adjustments  (consisting  only of
normal recurring  adjustments) which the Company considers  necessary for a fair
presentation.  The September 30, 2002 balance sheet was derived from the balance
sheet included in the Company's  audited  consolidated  financial  statements as
filed on Form 10-KSB for the year ended September 30, 2002.

The accompanying  unaudited interim  consolidated  financial  statements are for
interim periods and do not include all disclosures  normally  provided in annual
consolidated  financial  statements,  and should be read in conjunction with the
Company's audited consolidated financial statements.  The accompanying unaudited
interim  consolidated  financial  statements for the three and nine months ended
June 30, 2003 are not necessarily indicative of the results that can be expected
for the entire fiscal year.

2. USE OF ESTIMATES

The  preparation  of financial  statements  in  conformity  with U.S.  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect  reported  amounts  of  certain  assets,  liabilities,
revenues, and expenses. Actual results may differ from such estimates.

3. INCOME TAXES

The Company  provides for income taxes under the asset and  liability  approach.
This method  requires that deferred tax assets and liabilities be recognized for
the future tax  consequences  attributable to differences  between the financial
statement  carrying  amounts  of  existing  assets  and  liabilities  and  their
respective tax bases. Valuation allowances are established,  when necessary,  to
reduce deferred tax assets to the amount  expected to be realized.  Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled.  The effect on deferred tax assets and liabilities of a
change in tax rates is  recognized  in income in the period  that  includes  the
enactment date.

No income tax expense has been  recorded  for the period ended June 30, 2003 due
to the utilization of net operating loss carryforwards from prior periods.


4. STOCK OPTIONS

On October 1, 2002 the Company  entered into a three year agreement to renew the
employment of R. David Graupner as President and Chief  Executive  Officer.  The
agreement  grants Mr. Graupner  250,000 stock options at $ .34 per share,  which
vest at a rate of 40% upon grant and 20% per year thereafter through the term of
the agreement.


                                       6
<PAGE>

5. STOCK-BASED COMPENSATION

The Company accounts for its stock-based  employee  compensation  plan using the
intrinsic  value-based method prescribed by Accounting  Principles Board Opinion
No. 25, "Accounting for Stock Issued to Employees," and related interpretations.
As such, compensation expense is recorded on the date of grant to the extent the
current market price of the  underlying  stock exceeds the exercise  price.  The
Company recorded no compensation  expense  associated with options issued during
the  periods  ended  June  30,  2003  and  2002.  Had  the  Company   determined
compensation  based on the fair  value at the grant  date for its stock  options
under Statement of Financial  Accounting Standards ("SFAS") No. 123, "Accounting
for Stock-Based Compensation," as amended by SFAS No. 148, net income (loss) and
net income (loss) per share would have been affected as indicated below:

<TABLE>
<CAPTION>

                                                   Three Months Ended      Nine months Ended
                                                        June 30                June 30
                                                 ---------------------   ---------------------
                                                    2003        2002        2003        2002
                                                 ---------   ---------   ---------   ---------
<S>                                              <C>         <C>         <C>         <C>
Net income (loss) attributable to common
stockholders as reported                         $ 178,495   $  79,767   $ 401,345   $(176,608)

Add:   Stock-based employee compensation
       expense included in reported net income
       (loss)                                            0           0           0           0

Deduct:Stock-based employee compensation
       expense determined under fair value
       based method                                  8,178       3,781      24,535      11,344
                                                 ---------   ---------   ---------   ---------
Pro forma net income (loss)                      $ 170,317   $  75,986   $ 376,810   $(187,952)


Net income (loss) per share
      As reported                                $     .07   $     .03   $     .16   $    (.07)
                                                 =========   =========   =========   =========
      Pro forma                                  $     .07   $     .03   $     .15   $    (.08)
                                                 =========   =========   =========   =========
</TABLE>


6.  EARNINGS (LOSS) PER SHARE

Basic  earnings  (loss) per share are calculated  based 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
(loss) per share:

<TABLE>
<CAPTION>

                                                        Three Months Ended         Nine months Ended
                                                             June 30                   June 30
                                                    -------------------------   -------------------------
                                                        2003          2002          2003          2002
                                                    -----------   -----------   -----------   -----------
<S>                                                 <C>           <C>           <C>           <C>

Net Income (Loss)                                   $   178,495   $    79,767   $   401,345   $  (176,608)


Weighted Average Number of Shares Outstanding
      Basic                                           2,481,193     2,481,193     2,481,193     2,481,193

      Dilutive effect of common stock equivalents        37,511         6,094        14,607             0
                                                    -----------   -----------   -----------   -----------
      Diluted                                         2,518,704     2,487,287     2,495,800     2,481,193


Earnings (Loss) Per Share:
      Basic Net Income (Loss)                       $       .07   $       .03   $       .16   $      (.07)
                                                    ===========   ===========   ===========   ===========
      Diluted Net Income (Loss)                     $       .07   $       .03   $       .16   $      (.07)
                                                    ===========   ===========   ===========   ===========
</TABLE>




                                       7
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

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.

OVERVIEW

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.

LIQUIDITY AND CAPITAL RESOURCES

The Company  relies upon current sales of music  libraries and jingles sold with
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 next twelve month period.



                                       8
<PAGE>

The Company  reported  net income of  approximately  $401,000 in the  nine-month
period ending June 30, 2003,  compared to a loss of  approximately  $177,000 for
the  same  period  in  2002.  The  Company  generated  operating  cash  flows of
approximately  $360,000 for the first nine months of 2003,  primarily due to the
net income for the period of approximately  $401,000,  supplemented by increases
in deferred revenue, accounts payable and accrued expenses and customer deposits
totaling $40,000 as well as adjustments for non-cash expenses of $273,000 offset
by changes in  accounts  receivable,  product  development  costs,  and  prepaid
expenses totaling  $368,000.  In the same fiscal period of 2002 the Company used
approximately  $112,000  to fund  operations  due to the loss for the  period of
approximately   $177,000,   offset  by  adjustments  for  non-cash  expenses  of
approximately  $261,000 and net changes in operating  assets and  liabilities of
approximately  $196,000.  Approximately  $71,000  was spent for the  purchase of
property  and  equipment  associated  with  upgrades  of  computer  and  digital
recording  hardware  in the  first  nine  months of fiscal  2003.  Purchases  of
property and equipment for the same period in fiscal 2002 totaled  approximately
$89,000  and  included  costs  related to the upgrade of  production  equipment.
Expenditures   for  product   development   for  the   nine-month   period  were
approximately  $126,000  and  $123,000  for fiscal 2003 and 2002,  respectively.
Funds for operating needs, new product development and capital  expenditures for
the current period were provided from  operations of the Company.  The Company's
expenditures  for  property,  equipment,  and  development  of new  products are
discretionary. Product development expenditures are expected to be approximately
$170,000 in fiscal 2003. Management  anticipates that cash flows from operations
and cash reserves will be sufficient to meet these capital requirements at least
through the next twelve months. The Company has no other significant commitments
for capital expenditures in fiscal 2003.

RESULTS OF OPERATIONS

Comparison of the Three-Month Periods Ended June 30, 2003 and 2002
------------------------------------------------------------------

The Company experienced net income of approximately $178,000 in the third fiscal
quarter of 2003,  compared  to net income of $80,000 in the same period of 2002.
Gross revenues  increased  approximately  $114,000,  or 8.5% in the  three-month
period ended June 30, 2003 as compared to the same period for the previous year.
Total  operating  costs decreased from $1,080,000 in the third quarter of fiscal
2002 to $1,053,000 in 2003.

The majority of the Company's  clients are  businesses  that depend on broadcast
advertising  sales for their  revenue.  The  serious  recession  in  advertising
expenditures  in fiscal 2002 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. Positive growth trends for advertising were experienced
in the fourth fiscal  quarter of 2002 and continued  into the first three fiscal
quarters of 2003,  however,  the impact of U.S.  involvement in foreign conflict
and the related affect on advertising spending continues to be a factor.

Revenue generated from cash sales and publisher's royalties in the quarter ended
June 30, 2003 decreased approximately $95,000, or 9.9% when compared to the same
period in 2002. However,  barter revenue for the quarter increased $209,000,  or
53.6%,  which reflects the continued  recovery of  advertising  rates for barter
service.  Barter revenues are derived from obtaining airtime from radio stations
in exchange for products and marketing such airtime to advertisers.

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 rather than from conversions to compact disc music library 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.  However,  the
advent of  computer-based  music storage has opened a new market to the Company;
delivering  music in a form (.wav file  format  and MPEG  format)  which is more
conducive,  convenient  and cost  efficient  for  operators  to load onto  their
computer-based broadcast systems. 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  that  revenues  from weekly music  services will
either remain relatively  unchanged or continue to grow by introducing new music
libraries to the market.  Management believes the international markets have not
reached maturity for compact disc technology.  Renewals and new sales growth are
subject to customer acceptance of the new products.


                                       9
<PAGE>

Commissions  as a  percentage  of revenues  increased to 16.4% of revenue in the
third quarter of fiscal 2003 from 14.3% of revenue for the same period in fiscal
2002.  This increase is due to changes in the revenue  structure where a greater
percentage of revenue was derived from advertising.

Production,  programming  and technical costs decreased 13.0% to $358,000 in the
third  fiscal  quarter  of  2003  from  approximately  $410,000  in  2002.  As a
percentage of gross revenue, costs dropped from 30.3% in fiscal 2002 to 24.4% in
2003.  The decrease is the result of a combination  of cost  reduction  methods,
primarily due to the continued effort to internalize component production.

General and  administrative  costs increased  $24,000,  or 5.6%. The increase is
primarily the result of the  employment  of  consultants  to provide  additional
access to media clients,  both domestically and  internationally.  Other factors
include  the  timing  of  other  administrative  expenses  related  to  facility
maintenance and an increase in bad debt expense.

Selling costs reflected a decrease of approximately  $4,000,  or 2.0% for fiscal
2003 over  2002.  The  Company  took  advantage  of the loss of sales  personnel
through attrition by restructuring  the compensation  plans for new employees to
reduce fixed costs and provide more efficient coverage of the market.


Comparison of the Nine-month Periods Ended June 30, 2003 and 2002
-----------------------------------------------------------------

The Company  experienced net income of approximately  $401,000 in the nine-month
period  ended June 30,  2003,  compared  to a net loss of  $177,000  in the same
period of 2002. Gross revenues increased  approximately  $328,000, or 8.6% while
total operating costs decreased $296,000, or 8.7%.

The majority of the Company's  clients are  businesses  that depend on broadcast
advertising  sales for their  revenue.  The  serious  recession  in  advertising
expenditures  in fiscal 2002 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. Positive growth trends for advertising were experienced
in the fourth fiscal  quarter of 2002 and continued  into the first three fiscal
quarters of 2003,  however,  the impact of U.S.  involvement in foreign conflict
and the related affect on advertising spending continues to be a factor.

Revenue  generated from cash sales and  publisher's  royalties in the nine-month
period  ended  June 30,  2003  decreased  approximately  $58,000,  or 2.2%  when
compared to the same  period in 2002.  However,  barter  revenue for the quarter
increased   $387,000  or  31.7%,   which  reflects  the  continued  recovery  of
advertising rates for barter service. Barter revenues are derived from obtaining
airtime from radio  stations in exchange for products and marketing such airtime
to advertisers.

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 rather than from conversions to compact disc music library 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.  However,  the
advent of  computer-based  music storage has opened a new market to the Company;
delivering  music in a form (.wav  file  format  and MPEG  format)  that is more
conducive,  convenient  and cost  efficient  for  operators  to load onto  their
computer-based broadcast systems. 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  that  revenues  from weekly music  services will
either remain relatively  unchanged or continue to grow by introducing new music
libraries to the market.  Management believes the international markets have not
reached maturity for compact disc technology.  Renewals and new sales growth are
subject to customer acceptance of the new products.


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<PAGE>

Commissions  as a  percentage  of revenues  decreased to 15.9% of revenue in the
first three quarters of fiscal 2003 from 16.0% of revenue for the same period in
fiscal 2002.  This decrease is due to changes in the revenue  structure  where a
greater percentage of international revenue was derived from direct sales rather
than through third-party representatives.

Production, programming and technical costs decreased 11.4% to $1,079,000 in the
nine-month  period of 2003 from  $1,218,000  in 2002.  The first nine  months of
fiscal 2002  reflected an increase in custom jingle  production  compared to the
same period in fiscal 2003. Since production costs for custom jingles are higher
than those for syndicated jingles, the effect on related expenses was noticeable
in  comparison.  The Company also saw a decrease in shipping  costs as more cost
efficient  packaging and carrier  selection were implemented  across all product
lines.

General and administrative  costs decreased  approximately  $75,000,  or 5.3%. A
decrease of  approximately  $53,000 in facilities  expenses  occurred due to the
negotiation  of  a  new  office  lease,  which  reduced  monthly  rent  and  the
responsibility for certain building maintenance costs.  Additional reductions in
administrative costs occurred through changes in consulting relationships.

Selling costs reflected a decrease of approximately $89,000, or 13.4% for fiscal
2003 over  2002.  The  Company  took  advantage  of the loss of sales  personnel
through  attrition  by  restructuring  the  compensation  plans for new hires to
reduce fixed costs and provide more efficient coverage of the market.

Depreciation and amortization  expense increased $2,300, or 2.1%, primarily as a
result of purchases to replace outdated equipment.

ITEM 3.  CONTROLS AND PROCEDURES

Based on their  evaluation,  as of a date  within 90 days of the filing  date of
this Form 10-QSB,  the Company's  Chief  Executive  Officer and Chief  Financial
Officer have concluded that the Company's disclosure controls and procedures (as
defined in Rule 13a-14 (c) and 15d-14 (c) under the  Securities  Exchange Act of
1934,  as amended)  are  effective.  There have been no  significant  changes in
internal  controls or in other  factors  that could  significantly  affect these
controls  subsequent to the date of their  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

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                                       11
<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

     a)   Exhibits
          Material Contracts:
          Other:
          31.1 Certification  by R. David  Graupner,  Chief  Executive  Officer,
               pursuant to 18 USC Section 1350,  as adopted  pursuant to Section
               302 of the Sarbanes-Oxley Act of 2002.
          31.2 Certification  by  Teri  R.S.  James,  Chief  Financial  Officer,
               pursuant to 18 USC Section 1350,  as adopted  pursuant to Section
               302 of the Sarbanes-Oxley Act of 2002.
          32.1 Certification by R. David Graupner,  Chief Executive Officer, and
               Teri R.S.  James,  Chief  Financial  Officer,  pursuant to 18 USC
               Section  1350,  as  adopted   pursuant  to  Section  906  of  the
               Sarbanes-Oxley Act of 2002.
     b)   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 13, 2003

                                               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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