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, 2002


         [ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE

                                  EXCHANGE ACT

                           Commission file No. 0-13167


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


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


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

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


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes X  No
                                                             ---   ---

The number of issuer's  shares of Common Stock  outstanding  as of June 30, 2002
was 2,481,193.

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

<PAGE>
<TABLE>
<CAPTION>

               PART I. FINANCIAL INFORMATION FOR TM CENTURY, INC.

Item 1. Financial Statement and Notes

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

                                     ASSETS

                                                                                June 30, 2002      September 30, 2001
                                                                             ------------------    ------------------
<S>                                                                          <C>                   <C>

CURRENT ASSETS
       Cash and cash equivalents                                             $          237,302    $          464,631
       Short-term investments                                                           647,213               634,049
       Accounts receivable, less allowance for doubtful accounts
        of $50,549 and $84,589, respectively                                            581,109               540,488
       Inventories, net of allowance for obsolescence of
        $258,545 for both periods                                                       377,942               420,260
       Prepaid expenses                                                                  60,441                66,824
                                                                             ------------------    ------------------
             TOTAL CURRENT ASSETS                                                     1,904,007             2,126,252

PROPERTY AND EQUIPMENT                                                                2,975,678             2,886,485
       Less accumulated depreciation and amortization                                (2,518,642)           (2,406,438)
                                                                             ------------------    ------------------
             NET PROPERTY AND EQUIPMENT                                                 457,036               480,047

PRODUCT DEVELOPMENT COSTS,  net of accumulated amortization
       of $461,550 and $1,950,432, respectively                                         410,191               403,800
COMEDY MATERIAL RIGHTS,  net of accumulated amortization
       of $86,800 and $68,200, respectively                                              37,200                55,800
OTHER ASSETS                                                                             22,973                19,804
                                                                             ------------------    ------------------

       TOTAL ASSETS                                                          $        2,831,407    $        3,085,703
                                                                             ==================    ==================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
       Current portion of note payable                                       $           12,000    $           13,556
       Accounts payable                                                                  13,270                11,019
       Accrued expenses                                                                  68,161               110,015
       Deferred revenue                                                                  55,597                80,882
       Customer deposits                                                                 59,461                72,320
                                                                             ------------------    ------------------
             TOTAL CURRENT LIABILITIES                                                  208,489               287,792

NOTE PAYABLE, less current portion                                                        6,000                16,000
CUSTOMER DEPOSITS - non-current                                                         100,632                87,517
                                                                             ------------------    ------------------
             TOTAL LIABILITIES                                                          315,121               391,309

STOCKHOLDERS' EQUITY
       Common stock, $.01 par value; authorized 7,500,000 shares;
           2,970,481 shares issued;                                                      29,705                29,705
           2,481,193 and 2,483,193 shares outstanding, respectively
       Additional paid-in capital                                                     2,275,272             2,275,272
       Retained earnings                                                              1,504,036             1,680,644
       Treasury stock - at cost, 489,288 and 487,288 shares, respectively            (1,292,727)           (1,291,227)
                                                                             ------------------    ------------------
             TOTAL STOCKHOLDERS' EQUITY                                               2,516,286             2,694,394
                                                                             ------------------    ------------------

       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $        2,831,407    $        3,085,703
                                                                             ==================    ==================
</TABLE>


                       See notes to financial statements.

                                       2
<PAGE>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
                For The Three Months Ended June 30, 2002 and 2001


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

REVENUES                                             $ 1,352,598   $ 1,451,013
      Less  Commissions                                  193,633       256,502
                                                     -----------   -----------
           NET REVENUES                                1,158,965     1,194,511

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       409,835       418,067
      General and Administrative                         427,959       475,963
      Selling Costs                                      203,854       231,651
      Depreciation                                        38,441        36,890
                                                     -----------   -----------
           TOTAL COSTS AND EXPENSES                    1,080,089     1,162,571

                                                     -----------   -----------
OPERATING INCOME                                          78,876        31,940

OTHER INCOME (EXPENSE)
      Interest income                                        472         4,318
      Other income (expense)                                 419          (360)
                                                     -----------   -----------
           TOTAL OTHER INCOME (EXPENSE)                      891         3,958
                                                     -----------   -----------

INCOME BEFORE PROVISION FOR INCOME TAXES                  79,767        35,898

PROVISION FOR INCOME TAXES                                  --            --

                                                     -----------   -----------
NET INCOME                                           $    79,767   $    35,898
                                                     ===========   ===========

RETAINED EARNINGS, BEGINNING OF PERIOD                 1,424,269     1,571,902
                                                     -----------   -----------

RETAINED EARNINGS, END OF PERIOD                     $ 1,504,036   $ 1,607,800
                                                     ===========   ===========

BASIC NET INCOME PER COMMON SHARE                    $      0.03   $      0.01
                                                     ===========   ===========

DILUTED NET INCOME PER COMMON SHARE                  $      0.03   $      0.01
                                                     ===========   ===========

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,487,287     2,494,897
                                                     ===========   ===========


                       See notes to financial statements.

                                       3
<PAGE>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
                For The Nine Months Ended June 30, 2002 and 2001


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

REVENUES                                             $ 3,839,749    $ 4,602,405
      Less  Commissions                                  616,100        880,206
                                                     -----------    -----------
           NET REVENUES                                3,223,649      3,722,199

COSTS AND EXPENSES
      Production, Programming, and Technical Costs     1,217,553      1,254,556
      General and Administrative                       1,423,839      1,405,697
      Selling Costs                                      662,635        713,794
      Depreciation                                       112,204        107,326
                                                     -----------    -----------
           TOTAL COSTS AND EXPENSES                    3,416,231      3,481,373

                                                     -----------    -----------
OPERATING INCOME (LOSS)                                 (192,582)       240,826

OTHER INCOME (EXPENSE)
      Interest income                                     15,455         18,366
      Other income (expense)                                 519           (325)
                                                     -----------    -----------
           TOTAL OTHER INCOME (EXPENSE)                   15,974         18,041
                                                     -----------    -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES         (176,608)       258,867

PROVISION FOR INCOME TAXES                                  --             --

                                                     -----------    -----------
NET INCOME (LOSS)                                    $  (176,608)   $   258,867
                                                     ===========    ===========


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

RETAINED EARNINGS, END OF PERIOD                     $ 1,504,036    $ 1,607,800
                                                     ===========    ===========

BASIC NET INCOME (LOSS) PER COMMON SHARE             $     (0.07)   $      0.10
                                                     ===========    ===========

DILUTED NET INCOME (LOSS) PER COMMON SHARE           $     (0.07)   $      0.10
                                                     ===========    ===========

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

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,481,193      2,491,969
                                                     ===========    ===========


                       See notes to financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

                                TM Century, Inc.
                      Statements of Cash Flows (Unaudited)
                For The Nine Months Ended June 30, 2002 and 2001

                                                                                     2002         2001
                                                                                   ---------    ---------
<S>                                                                                <C>          <C>

OPERATING ACTIVITIES
     Net income (loss)                                                             $(176,608)   $ 258,867
     Adjustments to reconcile net income (loss) to
     net cash provided by (used in) operating activities
            Depreciation and amortization of property and equipment                  112,204      107,326
            Amortization of product development costs and comedy material rights     135,552      134,934
            Provision for doubtful accounts                                           13,000       12,500
     Increase (decrease) from changes in operating assets and liabilities:
            Accounts receivable                                                      (53,621)     125,187
            Inventories                                                               42,318       42,761
            Product development costs                                               (123,343)    (142,455)
            Prepaid expenses                                                           6,383      (23,297)
            Other assets                                                              (3,169)        --
            Accounts payable and accrued expenses                                    (39,603)     (42,557)
            Deferred revenue                                                         (25,285)      (5,377)
            Customer deposits                                                            256       11,665
                                                                                   ---------    ---------
     NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                            (111,916)     479,554

INVESTING ACTIVITIES
     Purchase of short-term investments                                              (13,164)    (314,080)
     Purchases of property and equipment                                             (89,193)    (140,770)
                                                                                   ---------    ---------
     NET CASH USED IN INVESTING ACTIVITIES                                          (102,357)    (454,850)

FINANCING ACTIVITIES
     Principal payments on note payable                                              (11,556)     (25,000)
     Acquisition of treasury stock                                                    (1,500)        --
                                                                                   ---------    ---------
     NET CASH USED IN FINANCING ACTIVITIES                                           (13,056)     (25,000)
                                                                                   ---------    ---------

NET DECREASE IN CASH AND CASH EQUIVALENTS                                           (227,329)        (296)

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

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                         $ 237,302    $ 422,043
                                                                                   =========    =========
</TABLE>

                       See notes to financial statements.

                                       5
<PAGE>
<TABLE>
<CAPTION>

                                 TM CENTURY INC.

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                                  June 30, 2002

1.       BASIS OF PRESENTATION

The interim financial statements of TM Century, Inc. (the "Company") at June 30,
2002,  and for the three  and nine  months  ended  June 30,  2002 and 2001,  are
unaudited,  and include all  adjustments  (consisting  only of normal  recurring
adjustments) which the Company considers necessary for a fair presentation.  The
September 30, 2001 balance sheet was derived from the balance sheet  included in
the Company's audited financial  statements as filed on Form 10-KSB for the year
ended September 30, 2001.

The accompanying  unaudited interim financial statements are for interim periods
and do not  include  all  disclosures  normally  provided  in  annual  financial
statements,  and  should  be read in  conjunction  with  the  Company's  audited
financial  statements.  The accompanying  unaudited interim financial statements
for the three and nine months ended June 30, 2002 are not necessarily indicative
of the results that can be expected for the entire fiscal year.

2.       TREASURY STOCK

On October  29,  2001 the Board of  Directors,  by  resolution,  authorized  the
Company to purchase up to 100,000  shares of its common stock on the open market
or through privately negotiated transactions,  from time to time, dependent upon
market  conditions,  from November 1, 2001 through  October 31, 2003. As of June
30, 2002 the Company has made  purchases of 2,000 shares at an average  price of
$.75 per share.  These  purchases  were funded by cash  reserves of the Company.
Future  purchases are expected to be funded from  operations or cash reserves of
the Company.

3.       EARNINGS (LOSS) PER SHARE

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

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

                                                         Three Months Ended         Nine Months Ended
                                                             June 30                     June 30
                                                     ------------------------   --------------------------
                                                        2002          2001          2002           2001
                                                    -----------   -----------   -----------    -----------
<S>                                                 <C>           <C>           <C>            <C>

Net Income (Loss)                                   $    79,767   $    35,898   $  (176,608)   $   258,867

Weighted Average Number of Shares Outstanding
      Basic                                           2,481,193     2,483,193     2,481,193      2,483,193
      Dilutive effect of common stock equivalents         6,094        11,704             0          8,776
                                                    -----------   -----------   -----------    -----------
      Diluted                                         2,487,287     2,494,897     2,481,193      2,491,969

Earnings (Loss) Per Share:
      Basic Net Income (Loss)                       $       .03   $       .01   $      (.07)   $       .10

                                                    ===========   ===========   ===========    ===========
      Diluted Net Income (Loss)                     $       .03   $       .01   $      (.07)   $       .10
                                                    ===========   ===========   ===========    ===========
</TABLE>


                                       6
<PAGE>

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

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

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

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

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

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

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


LIQUIDITY AND CAPITAL RESOURCES

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

TM  Century's  cash balance  decreased  from  $465,000 at September  30, 2001 to
$237,000 at June 30, 2002,  primarily  due to the timing of cash  receipts  from
advertising network representatives, a net loss of $177,000 (offset partially by
changes in  operating  assets and  liabilities),  and  purchases of property and
equipment.  During the nine months ended June 30, 2002 approximately $89,000 was
spent for the  purchase of property and  equipment,  primarily  associated  with
upgrades of network  hardware and  software and the addition of a recording  and
mixing  studio.  Purchases of property and equipment for the same period in 2001
totaled  $141,000  and  included  costs  related to the  upgrade  of  production


                                       7
<PAGE>

equipment and the conversion of warehouse space into offices.  Expenditures  for
product  development for the nine-month period were  approximately  $123,000 and
$142,000 for 2002 and 2001, respectively.  The Company purchased 2,000 shares of
treasury stock at a cost of $1,500 through the stock  repurchase plan authorized
by the Board of Directors on October 29, 2001.  Funds for operating  needs,  new
product  development and capital  expenditures for the period were provided from
cash  reserves and  operations  of the Company.  The Company used  approximately
$112,000 to fund operations during the nine months ended June 30, 2002 primarily
due to the net loss for the period  (offset  partially  by changes in  operating
assets and  liabilities)  compared to cash flow from operations of approximately
$480,000 for the same period of 2001 which included net income of  approximately
$259,000. The Company's expenditures for property, equipment, and development of
new products are discretionary. The Company has no other significant commitments
for capital expenditures in fiscal 2002.


RESULTS OF OPERATIONS

Comparison of the Three Month Periods Ended June 30, 2002 and 2001
------------------------------------------------------------------

Revenues decreased approximately $98,000 or 6.8% in the three month period ended
June 30, 2002 as compared to the same period for the previous  year.  The events
that occurred on September 11, 2001 and the subsequent effect on the advertising
industry  had a  continuing  impact on third  quarter  revenues  for all product
lines,  which  historically  derived  approximately  50% of revenue  from barter
agreements.  Barter  revenues  are derived  from  obtaining  airtime  from radio
stations in exchange  for products and  marketing  such airtime to  advertisers.
Barter  revenue for the  three-month  period  ended June 30,  2002 was  $390,000
compared to $521,000 for the same period of 2001.  The barter  revenue  decrease
was  comprised  of a decrease in revenues  for music  services of  approximately
$7,000,  production libraries of $12,000, jingles of $2,000, and comedy services
of $110,000.

Revenues of weekly HitDisc services decreased  $38,000,  while GoldDisc revenues
fell $26,000,  resulting in a net decrease in music services revenue of 11.5% as
compared  to the same period of the  previous  year.  As the compact  disc music
library  market  matures,  sales of compact discs are generated  primarily  from
changes in music formats or sales of new music  libraries or formats rather than
from  conversions  to compact  disc music  delivery  technology.  The market for
compact disc music  libraries to broadcast  customers  has reached a substantial
level of  maturity  in the United  States,  which is the  market  from which the
Company derives most of its music library revenues. The Company has made changes
in the  product  composition  in an  effort to appeal  to  markets  outside  the
broadcast  industry  with some  success.  The  Company  has also  engaged in the
development  of  additional  delivery  media for music  services  as a method of
increasing  product  sales.  A decline in revenues  from music library sales may
result in a  proportionately  greater decline in operating  income because music
libraries  provide higher margins than the Company's  other  products.  However,
management  believes  the  introduction  of new  products  will  counteract  the
declines in revenues from existing  music  libraries.  In addition,  the Company
contracts with third party sales  representatives  for sales in certain  foreign
markets.  Changes in  representatives  and the terms of ongoing  agreements  are
expected to favorably impact future revenues from international sales.  Renewals
and new sales growth are subject to customer acceptance of the new products.

Production library revenues  decreased $66,000,  or 15.8%. The Company continues
to concentrate on new product development in this category and has broadened the
target  market  beyond  the radio  broadcast  industry  to  include  television,
post-production houses, web sites and commercial businesses. Sales and new sales
growth are subject to customer acceptance of the new products.

Jingles  revenue  increased  $145,000,  or 60.2%,  over the same period in 2001,
primarily due to a $68,000  increase in syndicated  jingle  production  combined
with a $17,000 increase in custom jingles domestically.  International  revenues
increased approximately $4,000 with the addition of third-party representatives.
Approximately  $25,000 of the syndicated  revenue for the current quarter is the
result of the  introduction  of a new jingle  product  line  marketed  as Studio
Dragonfly,  a web site based product specifically  designed to sell older jingle
packages  at reduced  rates.  Royalties  derived  from the  American  Society of
Composers, Authors and Publishers (ASCAP) increased $57,000 over the same period
in 2001.


                                       8
<PAGE>

Comedy revenue decreased $113,000, or 48.1% compared to the same period in 2001.
This  decrease  was  primarily  due  to the  decrease  in  advertising  revenue.
Historically, comedy service contracts comprised over 40% of the barter business
for the Company,  however,  an increase in the number of barter  agreements  for
other products in 2002 reduced the percentage of advertising  revenue  allocable
to comedy.

Commissions  decreased  $63,000 or 24.5% and reflect a combination  of decreased
barter  revenue  and  commissions  paid  to  third  party   representatives  for
international  sales.  As a percentage of revenues,  commissions  decreased from
17.7% to 14.3% due to an increase in direct international sales.

Production,  programming and technical costs decreased  $8,000 or 1.9%, and as a
percentage of revenue  increased  from 28.8% to 30.3%.  The decrease in costs is
due to a combination of cost reduction  methods,  primarily the continued effort
to internalize component production.

General and administrative  costs decreased $48,000, or 10.1%,  primarily due to
the   renegotiation  of  the  office  lease  and  adjustments  in  staffing  and
administrative salaries.

Selling  costs  decreased  $28,000,  or 12.0%,  and as a percentage  of revenues
decreased  from  15.9% to 15.1%.  The  decrease  in  expenses  was  created by a
decrease in the commission expense reflective of the decreased revenues.

Depreciation and amortization of property and equipment increased $1,500 or 4.2%
due to the addition of property and equipment in prior months.

Comparison of the Nine Month Periods Ended June 30, 2002 and 2001
-----------------------------------------------------------------

Revenues decreased  approximately  $763,000,  or 16.6%, in the nine month period
ended June 30, 2002 as compared to the same period for the  previous  year.  The
events that  occurred on  September  11, 2001 and the  subsequent  effect on the
advertising  industry had a significant impact on first quarter revenues for all
product lines,  which  historically  derived  approximately  50% of revenue from
barter  agreements.  The reduction in  advertising  revenue  continued  into the
second and third quarters,  although there were signs of a slow recovery. Barter
revenues are derived from obtaining  airtime from radio stations in exchange for
products and  marketing  such  airtime to  advertisers.  Barter  revenue for the
nine-month period ended June 30, 2002 was $1,221,000  compared to $1,827,000 for
the same period of 2001.  The revenue  decrease  was  comprised of a decrease in
revenues for music services of $52,000, production libraries of $222,000, jingle
revenues of $12,000, and comedy services of $320,000.

Revenues of weekly HitDisc services decreased $164,000,  while GoldDisc revenues
decreased $70,000, resulting in a decrease in music services revenue of 13.8% as
compared  to the same period of the  previous  year.  As the compact  disc music
library  market  matures,  sales of compact discs are generated  primarily  from
changes in music formats or sales of new music  libraries or formats rather than
from  conversions  to compact  disc music  delivery  technology.  The market for
compact disc music  libraries to broadcast  customers  has reached a substantial
level of  maturity  in the United  States,  which is the  market  from which the
Company derives most of its music library revenues. The Company has made changes
in the  product  composition  in an  effort to appeal  to  markets  outside  the
broadcast  industry  with some  success.  The  Company  has also  engaged in the
development  of  additional  delivery  media for music  services  as a method of
increasing  product  sales.  A decline in revenues  from music library sales may
result in a  proportionately  greater decline in operating  income because music
libraries  provide higher margins than the Company's  other  products.  However,
management  believes  the  introduction  of new  products  will  counteract  the
declines in revenues from existing  music  libraries.  In addition,  the Company
contracts with third party sales  representatives  for sales in certain  foreign
markets.  Changes in  representatives  and the terms of ongoing  agreements  are
expected to favorably impact future revenues from international sales.  Renewals
and new sales growth are subject to customer acceptance of the new products.


                                       9
<PAGE>

Production  library  revenues  decreased  $270,000,  or 20.6%.  The  decrease in
production  library  revenue is  primarily  due to the  decrease in  advertising
revenue.  Even  though  production  library  revenues  may  decline  due  to the
expiration  of  three-year   contracts,   management  believes  that  production
libraries  will continue to generate a significant  portion of overall  revenues
from sales of existing  products  through  advertising/barter  arrangements  and
sales of new  products.  The Company  continues  to  concentrate  on new product
development  in this  category and has  broadened  the target  market beyond the
radio broadcast  industry to include  television,  post-production  houses,  web
sites and  commercial  businesses.  Sales and new sales  growth  are  subject to
customer  acceptance  of the new products.  The decline in revenue  derived from
library  sales was  partially  offset by  royalties  received  from the American
Society of Composers, Authors and Publishers (ASCAP) which increased $32,000 due
to a distribution based upon prior year broadcasts.

Jingles revenue increased $78,000 or 9.6% over the same period in 2001. Domestic
jingles revenue reflected a decrease in syndicated jingle sales of approximately
$20,000, offset by an increase in custom jingles of $31,000, while international
jingle  production  showed a $20,000 decline when compared to the same period in
the prior year. A new jingle  product line marketed as Studio  Dragonfly,  a web
site based  product  specifically  designed  to sell older  jingle  packages  at
reduced  rates,  has  generated  $46,000 in revenue  since its  introduction  on
January 2, 2002.  Royalties  derived  from the  American  Society of  Composers,
Authors and Publishers (ASCAP) increased $41,000 over the same period in 2001.

Comedy revenue decreased $328,000,  or 41.8%. This decrease was primarily due to
the decrease in advertising  revenue.  Historically,  comedy  service  contracts
comprised over 40% of the barter business for the Company,  however, an increase
in the  number of barter  agreements  for other  products  in 2002  reduced  the
percentage of advertising revenue allocable to comedy.

Commissions  decreased  $264,000  or 30.0%,  and  reflect a $44,000  decrease in
commissions  paid to third party  international  representatives  created by the
decrease  in  international   revenue.   The  commissions  paid  to  advertising
representatives  decreased  proportionately  with the  decrease  in  advertising
revenue.

Production,  programming  and technical costs  decreased  $37,000.  The greatest
variance in costs is reflected in the reduction of revenue-based  royalties paid
to writers for jingles and imaging libraries that were affected by the decreased
advertising  revenue.  A combination  of cost reduction  methods,  primarily the
effort to internalize more of the production process, have had a positive impact
on direct costs.

General and  administrative  costs increased $18,000 or 1.3%.  Despite a $74,000
reduction  in  sublease   proceeds,   stringent  cost  cutting  measures  and  a
renegotiation of the office lease resulted in a net increase in facilities costs
of only $28,000.  Administrative salaries and related expenses decreased $73,000
due to changes in staffing needs and bonus awards.  Professional  fees increased
primarily  due to costs in the amount of $63,000  incurred  developing  a patent
application  for the  SOLD-RITE(TM)  (Secure  On Line  Delivery  of  Recordings,
Information,  Text, and Entertainment) System, a method of delivering content to
consumers via the Internet.  Ownership of the patent, if granted, will belong to
Sold-Rite Holdings LLC, a separate entity of which the Company will own 42.5%.

Selling  costs  decreased  $51,000  or 7.2%,  and as a  percentage  of  revenues
increased  from 15.5% to 17.2%.  The  decrease  in selling  expenses  reflects a
decrease in sales commissions indicative of the overall decrease in revenues.

Depreciation  of  property  and  equipment  increased  $4,900 or 4.5% due to the
addition of property and equipment.


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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 - None

Item 5.  Other information - None

Item 6.  Exhibits and Reports on Form 8-K

         a)       Exhibits
                  99.1  Certification of Periodic  Financial Reports 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 12, 2002

                                                  TM CENTURY, INC.


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


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





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<PAGE>


                                  EXHIBIT INDEX


99.1     Certification Pursuant to 18 U. S. C. Section 1350.
















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