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: December 31, 2000



             [   ] 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 December 31,
2000 was 2,483,193.

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



<PAGE>
<TABLE>
<CAPTION>

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

                                     ASSETS

                                                                 December 31, 2000    September 30, 2000
                                                                 -----------------    ------------------
<S>                                                              <C>                  <C>
CURRENT ASSETS
    Cash and cash equivalents                                    $         353,157    $         422,339
    Short-term investments                                                 327,115              321,495
    Accounts receivable less allowance for doubtful
       accounts of $98,093 and $95,510 respectively                        869,822              693,997
    Inventories, net of allowance for obsolescence of $258,545             435,083              448,293
    Prepaid expenses                                                       108,193               44,685
                                                                 -----------------    -----------------
        TOTAL CURRENT ASSETS                                             2,093,370            1,930,809

PROPERTY AND EQUIPMENT                                                   2,824,167            2,730,584
    Less accumulated depreciation and amortization                      (2,297,837)          (2,263,000)
                                                                 -----------------    -----------------
        NET PROPERTY AND EQUIPMENT                                         526,330              467,584

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
    of $1,821,208 and $1,784,549 respectively                              385,607              377,240
COMEDY MATERIAL RIGHTS, net of accumulated amortization
    of $49,600 and $43,400 respectively                                     74,401               80,601
OTHER ASSETS                                                                19,804               19,804
                                                                 -----------------    -----------------

    TOTAL ASSETS                                                 $       3,099,512    $       2,876,038
                                                                 =================    =================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Current portion of note payable                              $          33,333    $          33,333
    Accounts payable                                                        48,787               48,833
    Accrued expenses                                                        94,565              113,017
    Deferred revenue                                                       101,583              100,850
    Customer deposits                                                       50,786               46,916
                                                                 -----------------    -----------------
        TOTAL CURRENT LIABILITIES                                          329,054              342,949

NOTE PAYABLE, less current portion                                          21,223               32,334
CUSTOMER DEPOSITS - NONCURRENT                                             135,742              138,072
                                                                 -----------------    -----------------
        TOTAL LIABILITIES                                                  486,019              513,355

STOCKHOLDERS' EQUITY
    Common stock, $.01 par value; authorized 7,500,000 shares;              29,705               29,705
       2,970,481 shares issued; 2,483,193 shares outstanding
    Additional paid-in capital                                           2,275,272            2,275,272
    Retained earnings                                                    1,599,743            1,348,933
    Treasury stock - at cost, 487,288 shares                            (1,291,227)          (1,291,227)
                                                                 -----------------    -----------------
        TOTAL STOCKHOLDERS' EQUITY                                       2,613,493            2,362,683
                                                                 -----------------    -----------------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $       3,099,512    $       2,876,038
                                                                 =================    =================

</TABLE>

                   See notes to interim financial statements
                                       2
<PAGE>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
              For the Three Months Ended December 31, 2000 and 1999


                                                         2000          1999
                                                     -----------   -----------

REVENUES                                             $ 1,732,936   $ 1,601,890
      Less  Commissions                                  381,755       284,483
                                                     -----------   -----------
           NET REVENUES                                1,351,181     1,317,407

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       381,515       482,322
      General and Administrative                         455,593       469,142
      Selling Costs                                      234,384       226,411
      Depreciation                                        34,837        47,735
                                                     -----------   -----------
           TOTAL COSTS AND EXPENSES                    1,106,329     1,225,610

                                                     -----------   -----------
OPERATING INCOME                                         244,852        91,797

OTHER INCOME (EXPENSE)
      Interest income                                      5,938        (1,388)
      Other income (expense), net                             20           (46)
                                                     -----------   -----------
           TOTAL OTHER INCOME (EXPENSE)                    5,958        (1,434)
                                                     -----------   -----------

NET INCOME BEFORE PROVISION FOR INCOME TAXES             250,810        90,363

PROVISION FOR INCOME TAXES                                  --            --

                                                     -----------   -----------
NET INCOME                                           $   250,810   $    90,363
                                                     ===========   ===========

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

RETAINED EARNINGS, END OF PERIOD                     $ 1,599,743   $   494,046
                                                     ===========   ===========

BASIC NET INCOME PER COMMON SHARE                    $      0.10   $      0.04
                                                     ===========   ===========

DILUTED NET INCOME PER COMMON SHARE                  $      0.10   $      0.04
                                                     ===========   ===========

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,485,368     2,486,433
                                                     ===========   ===========




                   See notes to interim financial statements
                                       3

<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
                      Statements of Cash Flows (Unaudited)
              For the Three Months Ended December 31, 2000 and 1999

                                                                                2000         1999
                                                                              ---------    ---------
<S>                                                                           <C>          <C>
OPERATING ACTIVITIES
  Net income                                                                  $ 250,810    $  90,363
  Adjustments to reconcile net income to
  net cash provided by operating activities
       Depreciation and amortization of property and equipment                   34,837       47,735
       Amortization of product development costs and comedy material rights      42,857       45,104
       Provision for doubtful accounts                                            2,583        3,693
  Increase (decrease) from changes in operating assets
  and liabilities:
       Accounts receivable                                                     (178,408)      62,734
       Inventories                                                               13,210       (3,242)
       Product development costs                                                (45,024)     (54,757)
       Prepaid expenses                                                         (63,508)     (10,760)
       Other assets                                                                --           (550)
       Accounts payable and accrued expenses                                    (18,498)      (8,937)
       Deferred revenue                                                             733      (24,335)
       Customer deposits                                                          1,540       22,905
                                                                              ---------    ---------
  NET CASH PROVIDED BY OPERATING ACTIVITIES                                      41,132      169,953

INVESTING ACTIVITIES
  Purchase of short-term investments                                             (5,620)        --
  Purchases of property and equipment                                           (93,583)     (49,154)
                                                                              ---------    ---------
  NET CASH USED BY INVESTING ACTIVITIES                                         (99,203)     (49,154)

FINANCING ACTIVITIES
  Principal payments on note payable                                            (11,111)      (8,333)
  Principal payments on capital lease obligations                                  --         (3,202)
                                                                              ---------    ---------
  NET CASH USED BY FINANCING ACTIVITIES                                         (11,111)     (11,535)
                                                                              ---------    ---------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                            (69,182)     109,264

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

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                    $ 353,157    $ 463,596
                                                                              =========    =========

Supplemental disclosures of cash flow information:

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



                   See notes to interim financial statements
                                       4

<PAGE>

                                 TM CENTURY INC.

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                                December 31, 2000

1.  BASIS OF PRESENTATION

The interim financial statements of TM Century, Inc. (the "Company") at December
31,  2000,  and for the three  months  ended  December  31,  2000 and 1999,  are
unaudited,  and include all  adjustments  (consisting  only of normal  recurring
adjustments) which the Company considers necessary for a fair presentation.  The
September 30, 2000, balance sheet was derived from the balance sheet included in
the Company's audited financial  statements as filed on Form 10-KSB for the year
ended September 30, 2000. Certain amounts  previously  reported in prior interim
financial statements have been reclassified to conform to the 2001 presentation.

The accompanying  unaudited interim financial statements are for interim periods
and do not  include  all  disclosures  normally  provided  in  annual  financial
statements,  and  should  be read in  conjunction  with  the  Company's  audited
financial  statements.  The accompanying  unaudited interim financial statements
for the three months ended December 31, 2000 are not  necessarily  indicative of
the results which can be expected for the entire fiscal year.

2.  LONG-TERM DEBT

Effective  January 2, 1999, the Company  purchased the remaining 50% interest of
certain  comedy  material  that was written and  produced by an  individual  for
broadcast  by radio  stations  and  marketed by the  Company,  resulting  in the
Company  owning 100% of such Comedy  Service.  For  consideration  of the comedy
material and the Company being able to use the  individual's  name in connection
with promoting the Comedy Service for a period of five years, the Company agreed
to pay to the  individual a total of $124,000,  payable over five years  through
December 2, 2003.

3.  EARNINGS PER SHARE

Basic earnings per share are calculated on the weighted average number of common
shares outstanding during each period. Stock options exercisable at December 31,
2000 and 1999 had a dilutive  effect on  Earnings  Per Share for the three month
period ending December 31, 2000 and 1999.

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

                                                       Three Months Ended
                                                          December 31
                                                    -----------------------
                                                       2000         1999
                                                       ----         ----

Net Income                                          $  250,810   $   90,363

Weighted Average Number of Shares Outstanding
      Basic                                          2,483,193    2,483,193
      Dilutive effect of common stock equivalents        2,175        3,240
                                                    ----------   ----------
      Diluted                                        2,485,368    2,486,433

Earnings Per Share:
      Basic Net Income                              $      .10   $      .04
                                                    ==========   ==========
      Diluted Net Income                            $      .10   $      .04
                                                    ==========   ==========



                                       5

<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 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 end of fiscal 2001.

TM  Century's  cash balance  decreased  from  $422,000 at September  30, 2000 to
$353,000 at December 31, 2000, primarily due to the timing of cash receipts from
third party representatives and purchases of property and equipment.  During the
quarter ended December 31, 2000 approximately $94,000 was spent for the purchase
of property  and  equipment  associated  with  upgrades of computer  and digital
recording hardware and the conversion of warehouse space into offices. Purchases
of property and  equipment  for the same period in 1999 was $49,000 and included
costs related to the upgrade of production  equipment.  Expenditures for product
development for the quarter were approximately  $45,000 and $55,000 for 2000 and
1999,  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  $41,000 and $170,000  during the three months ended  December 31,
2000 and 1999, 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.

                                       6
<PAGE>

RESULTS OF CONTINUING OPERATIONS

Comparison of the Three-Month Periods Ended December 31, 1999 and 2000
----------------------------------------------------------------------

Revenues  increased  approximately  $131,000 or 8.2% in the  three-month  period
ended  December 31, 2000 as compared to the same period for the  previous  year.
The revenue increase was primarily due to an increase in revenues for production
libraries  of $182,000 and Comedy  services of $141,000,  offset by decreases in
revenues from music  services of $116,000,  Jingles of $70,000 and other revenue
of $6,500.

Revenues of weekly HitDisc services decreased  $22,000,  while GoldDisc revenues
decreased $94,000, resulting in a decrease in music services revenue of 16.8% as
compared to the same period of the previous  year.  The decrease in compact disc
music  library  revenues was primarily due to a decrease in weekly and recurrent
music  sales for  international  customers.  As the compact  disc music  library
market matures,  sales of compact discs are generated  primarily from changes in
music  formats  or sales of new music  libraries  or  formats  rather  than from
conversions  to compact disc music delivery  technology.  The market for compact
disc music libraries to broadcast  customers has reached a substantial  level of
maturity  in the  United  States,  which is the market  from  which the  Company
derives  most of its music  library  revenues.  The  Company  has engaged in the
development  of  additional  delivery  media for music  services  as a method of
increasing  product  sales.  A decline in revenues  from music library sales may
result in a  proportionately  greater decline in operating  income because music
libraries  provide higher margins than the Company's  other  products.  However,
management  believes  the  introduction  of new  products  will  counteract  the
declines in revenues from existing  music  libraries.  In addition,  the Company
contracts with third party sales  representatives  for sales in certain  foreign
markets.  Changes in  representatives  and the terms of ongoing  agreements  are
expected to favorably impact future revenues from international sales.  Renewals
and new sales growth are subject to customer acceptance of the new products.

Production  library  revenues  increased  $182,000,   or  46.9%.   Increases  in
production  library  revenue is due to the  continuing  increase in  advertising
sales. 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 $70,000 or 22.8% over the same period in 1999 due to a
combination  of  circumstances  including  decreased  sales of both domestic and
international jingles.

Comedy revenue  increased  $141,000,  or 67.9%.  Increases in Comedy revenue are
primarily  due to the  increase  in  advertising  sales which are  generated  by
contracts  for  services   through  barter   arrangements.   Both  domestic  and
international  cash revenues  increased  approximately  31% over the same period
last year.

Commissions  increased  $97,000 or 34.0%,  and  reflect  the  increase in barter
revenue. As a percentage of revenues,  commissions increased from 17.8% to 22.0%
due to changes in the revenue structure where a greater percentage of revenue is
from barter.


                                       7
<PAGE>

Production,  programming and technical costs decreased $101,000 or 20.9%, and as
a  percentage  of  revenue  decreased  from  30.1% to 22.0%.  Costs  related  to
production  and  shipping of products  decreased  27% over the same quarter last
year due to the conversion to in-house disc production  which allows the Company
to control  costs  through  lower  inventory  levels and more  efficient  use of
personnel. These savings were offset by a 36% increase in royalty expenses which
are driven by sales of production libraries and syndicated jingles.

General  and  administrative  costs  decreased  $13,000  or 2.9%,  reflecting  a
decrease in professional fees.

Selling  costs  increased  $8,000  or  3.5%,  and as a  percentage  of  revenues
decreased  from 14.0% to 13.5%.  The  increase  in  expenses  was  created by an
increase in the  international  sales staff to facilitate  direct  international
sales  efforts,  as well as the  addition  of  sales  staff  members  to allow a
broadening of the domestic sales market.

Depreciation  and  amortization of property and equipment  decreased  $13,000 or
27.0% and is primarily due to more  depreciable  assets nearing the end of their
depreciable years.






                                       8
<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal proceedings - Not applicable.

Item 2. Changes in securities - Not applicable.

Item 3. Defaults upon senior securities - Not applicable.

Item 4. Submission of matters to a vote of security holders - None

Item 5. Other information - None

Item 6. Exhibits and Reports on Form 8-K - None










                                       9
<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: January 26, 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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