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, 2001


          ----
                TRANSITION REPORT UNDER  SECTION 13 OR 15(d) OF THE EXCHANGE ACT
          ----



                           Commission file No. 0-13167


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


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


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

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


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

The number of issuer's  shares of Common  Stock  outstanding  as of December 31,
2001 was 2,481,193.

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

<PAGE>
<TABLE>
<CAPTION>

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

                                                          ASSETS
                                                                                             December 31,     September 30,
                                                                                                   2001             2001
                                                                                             -------------    -------------
<S>                                                                                          <C>              <C>
       Cash and cash equivalents                                                             $     366,135    $     464,631
       Short-term investments                                                                      644,294          634,049
       Accounts receivable, less allowance for doubtful accounts
        of $87,296 and $84,589, respectively                                                       501,665          540,488
       Inventories, net of allowance for obsolescence of $258,545 for both periods                 426,126          420,260
       Prepaid expenses                                                                             94,604           66,824
                                                                                             -------------    -------------
             TOTAL CURRENT ASSETS                                                                2,032,824        2,126,252

PROPERTY AND EQUIPMENT                                                                           2,900,075        2,886,485
       Less accumulated depreciation and amortization                                           (2,442,977)      (2,406,438)
                                                                                             -------------    -------------
             NET PROPERTY AND EQUIPMENT                                                            457,098          480,047

PRODUCT DEVELOPMENT COSTS, net of accumulated amortization
       of $1,987,822 and $1,950,432, respectively                                                  408,196          403,800
COMEDY MATERIAL RIGHTS, net of accumulated amortization
       of $74,400 and $68,200, respectively                                                         49,600           55,800
OTHER ASSETS                                                                                        19,804           19,804
                                                                                             -------------    -------------

       TOTAL ASSETS                                                                          $   2,967,522    $   3,085,703
                                                                                             =============    =============


                                           LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
       Current portion of note payable                                                       $      12,000    $      13,556
       Accounts payable                                                                             74,092           11,019
       Accrued expenses                                                                             55,110          110,015
       Deferred revenue                                                                             59,760           80,882
       Customer deposits                                                                            72,320           72,320
                                                                                             -------------    -------------
             TOTAL CURRENT LIABILITIES                                                             273,282          287,792

NOTE PAYABLE, less current portion                                                                  11,000           16,000
CUSTOMER DEPOSITS - NON-CURRENT                                                                     93,369           87,517
                                                                                             -------------    -------------
             TOTAL LIABILITIES                                                                     377,651          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                                                                         1,577,621        1,680,644
       Treasury stock - at cost, 489,288 and 487,288 shares, respectively                       (1,292,727)      (1,291,227)
                                                                                             -------------    -------------
             TOTAL STOCKHOLDERS' EQUITY                                                          2,589,871        2,694,394
                                                                                             -------------    -------------

       TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                            $   2,967,522    $   3,085,703
                                                                                             =============    =============
</TABLE>


                   See notes to interim financial statements

                                       2

<PAGE>

                                TM Century, Inc.
           Statements of Operations and Retained Earnings (Unaudited)
              For The Three Months Ended December 31, 2001 and 2000


                                                         2001           2000
                                                     -----------    -----------

REVENUES                                             $ 1,247,417    $ 1,732,936
      Less  Commissions                                  215,456        381,755
                                                     -----------    -----------
           NET REVENUES                                1,031,961      1,351,181

COSTS AND EXPENSES
      Production, Programming, and Technical Costs       412,576        381,515
      General and Administrative                         469,043        455,593
      Selling Costs                                      227,861        234,384
      Depreciation                                        36,539         34,837
                                                     -----------    -----------
           TOTAL COSTS AND EXPENSES                    1,146,019      1,106,329

                                                     -----------    -----------
OPERATING INCOME (LOSS)                                 (114,058)       244,852

OTHER INCOME
      Interest income                                     11,035          5,938
      Other income                                          --               20
                                                     -----------    -----------
           TOTAL OTHER INCOME                             11,035          5,958
                                                     -----------    -----------

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES         (103,023)       250,810

PROVISION FOR INCOME TAXES                                  --             --

                                                     -----------    -----------
NET INCOME (LOSS)                                    $  (103,023)   $   250,810
                                                     ===========    ===========

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

RETAINED EARNINGS, END OF PERIOD                     $ 1,577,621    $ 1,599,743
                                                     ===========    ===========

BASIC NET INCOME (LOSS) PER COMMON SHARE             $     (0.04)   $      0.10
                                                     ===========    ===========

DILUTED NET INCOME(LOSS) PER COMMON SHARE            $     (0.04)   $      0.10
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING             2,482,943      2,483,193
                                                     ===========    ===========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING,
      ASSUMING DILUTION                                2,482,943      2,485,368
                                                     ===========    ===========



                   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, 2001 and 2000

                                                                                     2001         2000
                                                                                   ---------    ---------
<S>                                                                                <C>          <C>
OPERATING ACTIVITIES
     Net income (loss)                                                             $(103,023)   $ 250,810
     Adjustments to reconcile net income (loss) to
     net cash provided by (used in) operating activities
            Depreciation and amortization of property and equipment                   36,539       34,837
            Amortization of product development costs and comedy material rights      43,590       42,857
            Provision for doubtful accounts                                            4,500        2,583
     Increase (decrease) from changes in operating assets and liabilities:
            Accounts receivable                                                       34,323     (178,408)
            Inventories                                                               (5,867)      13,210
            Product development costs                                                (41,787)     (45,024)
            Prepaid expenses                                                         (27,781)     (63,508)
            Accounts payable and accrued expenses                                      8,168      (18,498)
            Deferred revenue                                                         (21,122)         733
            Customer deposits                                                          5,854        1,540
                                                                                   ---------    ---------
     NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                             (66,606)      41,132

INVESTING ACTIVITIES
     Purchase of short-term investments                                              (10,245)      (5,620)
     Purchases of property and equipment                                             (13,589)     (93,583)
     Acquisition of treasury stock                                                    (1,500)        --
                                                                                   ---------    ---------
     NET CASH USED IN INVESTING ACTIVITIES                                           (25,334)     (99,203)

FINANCING ACTIVITIES
     Principal payments on note payable                                               (6,556)     (11,111)
                                                                                   ---------    ---------
     NET CASH USED IN FINANCING ACTIVITIES                                            (6,556)     (11,111)
                                                                                   ---------    ---------

NET DECREASE IN CASH AND CASH EQUIVALENTS                                            (98,496)     (69,182)

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

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                         $ 366,135    $ 353,157
                                                                                   =========    =========
</TABLE>



                   See notes to interim financial statements

                                       4

<PAGE>

                                 TM CENTURY INC.

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                                December 31, 2001

1.  BASIS OF PRESENTATION

The interim financial statements of TM Century, Inc. (the "Company") at December
31,  2001,  and for the three  months  ended  December  31,  2001 and 2000,  are
unaudited,  and include all  adjustments  (consisting  only of normal  recurring
adjustments) which the Company considers necessary for a fair presentation.  The
September 30, 2001 balance  sheets were 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 months ended December 31, 2001 are not  necessarily  indicative of
the results which 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
December  31, 2001 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 PER SHARE

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

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

                                                         Three Months Ended
                                                            December 31
                                                    --------------------------
                                                        2001           2000
                                                    -----------    -----------
Net Income (Loss)                                   $  (103,023)   $   250,810

Weighted Average Number of Shares Outstanding
      Basic                                           2,482,943      2,483,193
      Dilutive effect of common stock equivalents             0          2,175
                                                    -----------    -----------
      Diluted                                         2,482,943      2,485,368

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


                                       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 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 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 2002.

TM  Century's  cash balance  decreased  from  $465,000 at September  30, 2001 to
$366,000 at December 31, 2001, primarily due to the timing of cash receipts from
third party representatives and purchases of property and equipment.  During the
quarter ended December 31, 2001 approximately $13,000 was spent for the purchase


                                       6
<PAGE>

of property  and  equipment  associated  with  upgrades of computer  and digital
recording  hardware.  Purchases of property and equipment for the same period in
2000 totaled  approximately $94,000 and included costs related to the upgrade of
production  equipment  and  leasehold  improvements.  Expenditures  for  product
development for the quarter were approximately  $42,000 and $45,000 for 2001 and
2000,  respectively.  Funds for operating  needs,  new product  development  and
capital  expenditures  for the period were  provided  from cash  reserves 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  $240,000 in fiscal 2002. Management anticipates that cash flow
from  operations  and cash  reserves  will be  sufficient  to meet these capital
requirements  at least  through the end of fiscal year 2002.  The Company has no
other significant commitments for capital expenditures in fiscal 2002.


RESULTS OF CONTINUING OPERATIONS

Comparison of the Three-Month Periods Ended December 31, 2000 and 2001
----------------------------------------------------------------------

Revenues decreased approximately $486,000 or 28% in the three-month period ended
December  31, 2001 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. Barter revenues are derived from obtaining airtime from radio
stations in exchange  for such weekly  services  and  marketing  such airtime to
advertisers.  Barter revenue for the three-month  period ended December 31, 2001
was  $429,000  compared  to $860,000  for the same  period of 2000.  The revenue
decrease was comprised of a decrease in revenues for music  services of $84,000,
production  libraries of $248,000 and comedy services of $160,000,  offset by an
increase in revenues from jingles of $3,000 and other revenue of $3,000.

Revenues of weekly HitDisc services decreased  $67,000,  while GoldDisc revenues
decreased $17,000, resulting in a decrease in music services revenue of 14.6% as
compared to the same period of the previous  year.  The decrease in compact disc
music library  revenues  reflects a decrease in weekly and recurrent music sales
in both domestic and  international  markets.  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. Renewals and new sales growth are subject to customer acceptance of the
new products.

Production  library  revenues  decreased  $248,000,  or 43.4%.  The  decrease in
production  library  revenue is  primarily  due to the  decrease in  advertising
revenue.  Even  though  production  library  revenues  may  decline  due  to the
expiration  of  three-year   contracts,   management  believes  that  production
libraries  will continue to generate a significant  portion of overall  revenues
from sales of existing  products  through  advertising/barter  arrangements  and
sales of new  products.  The Company  continues  to  concentrate  on new product
development  in this  category and has  broadened  the target  market beyond the
radio broadcast  industry to include  television,  post production  houses,  web
sites and  commercial  businesses.  Sales and new sales  growth  are  subject to
customer acceptance of the new products.

Jingles  revenue  increased  $3,000,  or 1.4% over the same period in 2000.  The
increase was the result of a $29,000  increase in domestic jingle sales,  offset
by a $26,000  decline  in  international  sales.  Domestic  jingle  sales in the
current period  included  $109,000 in custom jingles  compared to $17,000 in the
same period in fiscal 2000.


                                       7
<PAGE>

Comedy revenue  decreased  $160,000,  or 45.8%.  Decreases in Comedy revenue are
primarily  due to the  decrease in  advertising  sales,  which are  generated by
contracts for services through barter arrangements.

Commissions  decreased  $166,000 or 43.5%,  and  reflect the  decrease in barter
revenue. As a percentage of revenues,  commissions decreased from 22.0% to 17.3%
due to changes in the revenue structure where a smaller percentage of revenue is
from barter.

Production,  programming and technical costs increased $31,000 or 8.1%, and as a
percentage of revenue increased from 22.0% to 33.1%. Direct costs related to the
writing,  recording and  production of custom  jingles were  responsible  for an
increase  of  $53,000,  offset by a  decrease  in all other  product  categories
totaling $22,000.

General and  administrative  costs  increased  $13,000 or 2.9%, as a result of a
reduction in sublease revenue to offset the cost of facilities.

Selling  costs  decreased  $7,000  or  2.8%,  and as a  percentage  of  revenues
increased  from  13.5% to 18.3%.  The  decrease  in  expenses  was  created by a
decrease in sales  commissions of $34,000,  offset by increased direct marketing
costs of $27,000.

Depreciation and amortization of property and equipment increased $1,700 or 4.9%
and is due to the addition of property and equipment in prior months.


                                       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 31, 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)


                                       10