U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington D.C. 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:   March 31, 2003
                                ------------------

[ ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
       ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO _________

Commission file number:  000-30405

                    Universal Communication Systems, Inc.
                    ----------------------------------------
        (Exact name of small business issuer as specified in its charter)

         Nevada                      4812                         860887822
 (State or jurisdiction   (Primary Standard Industrial          (IRS Employer
    of incorporation          Identification No.)               Classification
    or organization)                                               Code No.)


                             407 Lincoln Rd, Suite 6K
                              Miami Beach, FL 33139
                             -----------------------
                    (Address of principal executive offices)

                                 (305) 672-6344
                           (Issuer's telephone number)

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
                                                            ------     ------

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date.

         Class                      Outstanding as of May 01, 2003
         -----                      -----------------------------------

Common Stock, $.001 par value                       19,284,204

Transitional Small Business Disclosure Format:    Yes            No     X
                                                      --------      ---------



<PAGE>
                                TABLE OF CONTENTS



PART I     FINANCIAL INFORMATION                                            Page
                                                                            ----

   Item 1.  Consolidated Financial Statements:

            Consolidated Balance Sheet - March 31, 2003 and
            September 30, 2002                                               3

            Consolidated Statements of Operations for the three months
            and six months Ended March 31, 2003 and 2002                     4

            Consolidated Statements of Cash Flows for the three months
            and six months Ended March 31, 2003 and 2002                     5

            Notes to the Consolidated Financial Statements
            March 31, 2003                                                   6

   Item 2.  Management's Discussion and Analysis or Plan
            of Operations                                                    7

   Item 3.  Evaluation Of Disclosure Controls And Procedures                10


PART II    OTHER INFORMATION

   Item 6.  Exhibits and Reports on Form 8-K                                11

   Item 7.  Signatures                                                      12

            Certifications                                                  12


                                       2


<PAGE>
Part I.  FINANCIAL INFORMATION
Item 1.  FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
                              Universal Communication Systems, Inc.
                              Condensed Consolidated Balance Sheets

                                                                                     March 31,      September 30,
                                                                                       2003            2002
                                                                                       ----             ----
                                                                                    (unaudited)      (see note 1)
                                                                                    -----------      ------------
                                               Assets
Current Assets:
<S>                                                                                <C>              <C>
   Cash & cash equivalents                                                          $      4,942     $        874
                                                                                    ------------     ------------
        Total Current Assets                                                               4,942              874
                                                                                    ------------     ------------
Due from related party, net                                                                1,259           35,456
                                                                                    ------------     ------------

Fixed Assets:
   Equipment                                                                              25,259           25,259
   Furniture and fixtures                                                                  1,917            1,917
   Less: Accumulated depreciation & amortization                                         (18,734)         (15,889)
                                                                                    ------------     ------------
        Total Fixed Assets                                                                 8,442           11,287
                                                                                    ------------     ------------

Investment in unconsolidated subsidiaries, net
   of impairment                                                                              --               --
Other assets                                                                              25,740           11,250
                                                                                    ------------     ------------
        Total Assets                                                                $     40,382     $     58,867
                                                                                    ============     ============

                                           Liabilities and Stockholders' Deficit
Current Liabilities:
   Current maturities of convertible debentures                                     $    946,449     $    886,449
   Accounts payable, trade                                                             1,054,711        1,078,941
   Accrued expenses                                                                      178,896          156,978
   Due to a related party                                                                137,519           29,791
                                                                                    ------------     ------------
       Total Current Liabilities                                                       2,317,575        2,152,159

Long Term Liabilities:
   Note payable                                                                          269,491          254,237
   Convertible debentures, net of current maturities                                   4,192,225        4,123,415
                                                                                    ------------     ------------
      Total Long Term Liabilities                                                      4,461,716        4,377,652
                                                                                    ------------     ------------
         Total Liabilities                                                             6,779,291        6,529,811
                                                                                    ------------     ------------

Commitments and Contingencies                                                                 --               --

Stockholders' Deficit:
   Preferred stock, 10,000,000 shares authorized, no
         Shares issued and outstanding
   Common stock, par value $.001 per share,
      800,000,000 shares authorized, 11,259,780 issued
      and outstanding                                                                     11,260            5,968
   Additional paid-in capital                                                         23,339,687       23,071,546
   Accumulated deficit                                                               (30,089,856)     (29,548,458)
                                                                                    ------------     ------------
       Total Stockholders' Deficit                                                    (6,738,909)      (6,470,944)
                                                                                    ------------     ------------
         Total Liabilities and Stockholders' Deficit                                $     40,382     $     58,867
                                                                                    ============     ============
</TABLE>
             See notes to condensed consolidated financial statements.

                                       3


<PAGE>
<TABLE>
<CAPTION>
                              Universal Communication Systems, Inc.
                        Condensed Consolidated Statements of Operations
                                            UNAUDITED


                                         Three Months Ended March 31,            Six Months Ended March 31,
                                         ----------------------------            --------------------------
                                            2003               2002                 2003             2002
                                         ----------          --------            ----------       ---------
<S>                                     <C>                 <C>                 <C>              <C>
Revenue                                  $        -          $       -           $        -       $       -
Cost of goods sold                                -                  -                    -               -
                                         ----------          ---------            ---------       ---------
Gross profit                                      -                  -                    -               -

Operating expenses                          234,153            166,989              414,051         369,134
Write down of Assets                         26,397            205,181               26,397         205,181
Impairment loss on deposits                       -            197,506                    -         197,506
                                         ----------          ---------            ---------       ---------
Operating (loss)                           (260,550)          (569,676)            (440,448)       (771,821)

Interest expense                            (51,062)           (81,520)            (100,949)       (163,150)
                                         ----------          ---------            ---------       ---------


Net loss                                 $ (311,612)         $(651,196)           $(541,397)      $(934,971)
                                         ==========          =========            =========       =========

Basic and diluted loss per
share                                    $   (0.04)          $   (4.44)           $  (0.06)       $  (6.22)
                                         ==========          =========            =========       =========

Number of shares used in
computing basic and diluted
loss per share                            8,799,258            146,579            9,248,228         150,294
                                        ===========         ==========          ===========     ===========
</TABLE>


             See notes to condensed consolidated financial statements.

                                       4


<PAGE>
<TABLE>
                              Universal Communication Systems, Inc.
                         Condensed Consolidated Statement of Cash Flows
                                          UNAUDITED
<CAPTION>

                                                                        For the             For the
                                                                          Six Months    Six Months
                                                                             Ended         Ended
                                                                           March 31,      March 31,
                                                                              2003          2002
                                                                         -----------    ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                       <C>           <C>
    Net Loss                                                               $(541,397)    $(934,971)
    Adjustments to reconcile net loss from operations
      to net cash used by operating activities:
       Other comprehensive (loss)                                                 --            --
       Common stock issued for services                                      253,229         6,000
       Depreciation and amortization expense                                   2,845        18,712
       Interest payable added to principal of
          debentures and notes                                                94,269       123,557
       Loss on write down of assets                                           26,397       156,189
       Impairment loss                                                            --       197,506
    Changes in operating assets and liabilities:
       (Increase) decrease in prepaid and other                              (14,490)       48,991
       Increase (decrease) in accounts payable and
          accrued expenses                                                    (2,313)      229,228
       Increase in cash overdraft                                                 --         1,658
                                                                           ---------     ---------

       Net Cash (Used) by Operating Activities                              (181,460)     (153,130)
                                                                           ---------     ---------
CASH FLOWS FROM INVESTING
ACTIVITIES:
       (Increase) Decrease in due from related entities                        7,800       (98,921)
       Increase in other assets - deposits                                        --         4,600
                                                                           ---------     ---------

       Net Cash (Used) by Investing Activities                                 7,800      (103,521)
                                                                           ---------     ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from the issuance of senior secured
      convertible debentures, net                                                 --       227,770
    Proceeds from note payable                                                60,000            --
    Sale of common stock                                                      10,000        40,000
    Advances from related parties                                            107,728            --
    Other                                                                         --       (15,120)
                                                                           ---------     ---------
       Net Cash Provided by Financing Activities                             177,728       252,650
                                                                           ---------     ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                           4,068        (4,001)

CASH AND CASH EQUIVALENTS
    AT BEGINNING OF PERIOD                                                       874         4,082
                                                                           ---------     ---------

CASH AND CASH EQUIVALENTS
    AT END OF PERIOD                                                       $   4,942     $      81
                                                                           =========     =========
SUPPLEMENTAL DISCLOSURES OF CASH:
       Interest paid                                                       $      --     $      --
       Income taxes paid                                                   $      --     $      --
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
       Interest accrued on debentures, added to
       the principal of the debentures                                     $  94,269     $ 123,557
</TABLE>
             See notes to condensed consolidated financial statements.

                                        5



<PAGE>
                         UNIVERSAL COMMUNICATION SYSTEMS, INC.
                             NOTES TO FINANCIAL STATEMENTS

NOTE 1 - General and Summary of Business and Significant Accounting Policies.

               Basis of Presentation

               The accompanying unaudited condensed financial statements have
               been prepared in accordance with U.S. generally accepted
               accounting principles for interim financial information and with
               instructions to Form 10-QSB and Regulation S-B. Accordingly, they
               do not include all of the information and footnotes required by
               U.S. generally accepted accounting principles for complete
               consolidated financial statements included in this Form 10-QSB.
               The results of operations for any interim period are not
               necessarily indicative of results for the full year. These
               statements should be read in conjunction with the audited
               financial statements and accompanying notes for the year ended
               September 30, 2002.

               The balance sheet at September 30, 2002 has been derived from
               audited financial statements, but does not include all of the
               information and footnotes required by U.S. generally accepted
               accounting principles for complete financial statements.

               Background

               The Company is actively engaged in efforts to revise its business
               plan, de-emphasize participation in the wireless internet market,
               and seek new business activities.


               Reverse Stock Split

               The Company completed a one-for-one-thousand reverse stock split
               on August 23, 2002. All share and per share information reflects
               this reverse stock split.

NOTE 2 - GOING CONCERN AND SIGNIFICANT RISKS AND UNCERTAINTIES

               The Company's financial statements are prepared using generally
               accepted accounting principles applicable to a going concern
               which contemplates the realization of assets and liquidation of
               liabilities in the normal course of business. The Company has
               experienced losses since inception, and had an accumulated
               deficit of $30,089,856 at March 31, 2003. Net losses are expected
               for the foreseeable future. As such, there is substantial doubt
               as to the Company's ability to continue as a going concern.
               Management is considering alternatives to its business strategy,
               including modifications of its business plan and possible sale or
               licensing of certain assets. Simultaneously, the Company is
               continuing to secure additional capital through sales of common
               stock through the current operating cycle. There is no assurance
               that management will be successful in its efforts.

NOTE 3 - BASIC AND DILUTED NET LOSS PER SHARE CALCULATION

               Loss per common share is calculated in accordance with Statement
               of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
               Share." Basic loss per share is computed by dividing the loss
               available to common shareholders by the weighted-average number
               of common shares outstanding. Diluted loss per share is computed
               similar to basic loss per share, except that the denominator is
               increased to include the number of additional common shares that
               would have been outstanding if the potential common shares had
               been issued and if the additional common shares were dilutive.
               For the three and six months ended March 31, 2003 and 2002,
               common stock equivalents have been excluded from the
               aforementioned computations as their effect would be
               anti-dilutive.


                                       6
<PAGE>

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

     Except for historical information contained herein, the statements in this
report (including without limitation, statements indicating that the Company
"expects," "estimates," anticipates," or "believes" and all other statements
concerning future financial results, product offerings, proposed acquisitions or
combinations or other events that have not yet occurred) are forward-looking
statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange
Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as
amended. Forward-looking statements involve known and unknown factors, risks and
Uncertainties, which are discussed below and in the Company's other filings with
the Securities and Exchange Commission, and which may cause the Company's actual
results in future periods to differ materially from forecasted results. Forward
looking statements are all based on current expectations, and the Company
assumes no obligation to update this information.


RISK FACTORS

     We will require additional capital in the short term to remain a going
concern.

     We will require substantial short term outside investment on a continuing
basis to finance our current operations and any limited capital expenditures
identified to protect existing investments. Since inception, we have generated
little revenue and have incurred substantial expenditures. We expect to continue
to experience losses from operations while we reorganize our wireless Internet
service system and possibly develop other technologies or activities. In view of
this fact, our auditors have stated in their report for the period ended
September 30, 2002 that our ability to meet our future financing requirements,
and the success of our future operations, cannot be determined at this time. In
order to finance our working capital requirements we are negotiating equity
investments, but there can be no assurance that we will obtain the required
capital or that it will be obtained on terms favorable to us. If we do not
obtain short term financing we may not be able to continue as a viable concern.
We do not have a bank line of credit and there can be no assurance that any
required or desired financing will be available through bank borrowings, debt,
or equity offerings, or otherwise, on acceptable terms, if at all. If future
financing requirements are satisfied through the issuance of equity securities,
investors may experience significant dilution in the net book value per share of
common stock.


BUSINESS AND ORGANIZATION

     Universal Communication Systems, Inc. (collectively the "Company", "us" or
"we"), prior to 2002, was engaged in activities related to advanced wireless
communications, including the acquisition of radio-frequency spectrum
internationally. Currently, our activities related to the advanced wireless
communications are conducted by our investment in Digital Way, S.A., a Peruvian
communication company and former wholly owned subsidiary. We currently hold a
twenty seven percent interest in Digital Way, S.A., however, due to a lack of
cooperation from their management, our financial results do not include our
interest in their activities.

     We also own a U. S. patent on our Distributed Wireless Call Processing
System technology.


                                       7
<PAGE>

PROPOSED ACQUISITION

     On June 12, 2002, we entered into a letter of intent to acquire Card
Universal Corporation, Inc., a privately held development stage Florida
corporation in the business of providing and marketing prepaid "Stored Money
Cards." Management is currently evaluating its options as to the future plans
for the Company, its operations and assets. The acquisition is subject to the
signing of a definitive agreement, valuation by a third party and to the
availability of appropriate financing. As of this report date, no further action
has occurred on this transaction. We have advanced $1,259 to Card Universal
Corporation, Inc.

     On March 24, 2003 we announced the formation of AirWater Corporation,as a
wholly owned subsidiary.

     AirWater Corp. will operate in the new field of high tech water extraction
from air, and to that end, has acquired international manufacturing and
marketing licenses, as well as patent and copyright rights from J.J. Reidy &
Co., Inc. of Holden, Mass. J.J. Reidy & Co., Inc. is the registered patent
holders of 4 separate patents covering the concept, with others pending in many
foreign countries.

     Under the terms of the agreement, the company will issue 4 million common
shares, restricted under SEC rule 144, as well as make a one time cash payment
of $100,000 to J.J. Reidy & Co., Inc. In addition, the company has agreed to
enter into a royalty agreement with J.J. Reidy & Co., Inc.


OUTLOOK

     We will require short-term outside investment on a continuing basis to
finance our current operations and capital expenditures. If we do not obtain
short term financing we may not be able to continue as a viable concern. We do
not have a bank line of credit and there can be no assurance that any required
or desired financing will be available through bank borrowings, debt, or equity
offerings, or otherwise, on acceptable terms. If future financing requirements
are satisfied through the issuance of equity securities, investors may
experience significant dilution in the net book value per share of common stock.

     Under the auspices of new management installed November, 2001, we have made
considerable progress in restructuring prior obligations and removing debt. We
are actively engaged in a number of efforts to revise our business plan to
develop new revenue sources and direction for the Company. We plan to
de-emphasize our participation in the wireless internet market, sell assets for
cash and/or advance our remaining businesses through joint ventures, continue
our negotiations with creditors to compromise, extend, convert and/or forgive
debt, and seek new businesses that can take advantage of our extensive
shareholder base and status as a public company.

     Management is hopeful that it can continue to reach agreements with vendors
and foreign partners to resolve disputes and balances due. Management hopes that
once these issues are dealt with and the acquisition of Card Universal
Corporation is consummated, this will provide for the financial stability of the
Company. No assurances can be made that these events will successfully take
place. Management expects to meet minimal operating expenses during this period,
through a combination of loans, sale of assets and private placement funds.


SUBSEQUENT EVENTS

     On April 30, 2003 we announced the signing of a Letter of Intent to acquire
CinemaElectric, Inc., a Los Angeles based Multimedia Messaging Service company
for a purchase price of $10 million.



                                       8
<PAGE>


RESULTS OF OPERATIONS

     Three Months and Six Months Ended March 31, 2003 Compared to the Three
Months and Six Months Ended March 31, 2002.

     There were no revenues or cost of sales for the three months and six months
ended March 31, 2003 and March 31, 2002.

     Operating expenses for the three months and six months ended March 31, 2003
amounted to $234,153 and $414,051, respectively, compared to $166,989 and
$369,134 for the three months and six months ended March 31, 2002. For both
periods, these expenses were primarily consultants, professional fees and rents.

     Write down of assets in the amount of $26,397 for the three and six months
ended March 31, 2003 resulted from the recognition of little or no value in the
assets received in payment of the balance of advances to Hard Disc Cafe, Inc.
Hard Disc Cafe, Inc. has ceased all operations and distributed its remaining
assets to us in satisfaction of advances outstanding. Write down of assets in
the amount of $205,181 for the three months and six months ended March 31, 2002
and impairment losses in the amount of $197,506 for those same periods resulted
from management's decision to abandon pursuit of foreign ventures entered into
by prior management.

     Interest expense decreased $30,458, from $81,520 for the three months ended
March 31, 2002, to $51,062 for the three months ended March 31, 2003. For the
six months ended March 31, 2003 and 2002, interest expense decreased $62,201
from $163,150 to $100,949, respectively. The decrease resulted from the
conversion by the bondholders of a portion of their debt to common stock during
the fiscal year ended September 30, 2002.

     Net losses for the three months ended March 31, 2003 were $311,612, as
compared with $651,196 for the three months ended March 31, 2002. Net losses for
the six months ended March 31, 2003 were $541,397, as compared with $934,971 for
the six months ended March 31, 2002. The decrease in net losses is primarily
attributable to lower write off of assets and no impairment losses in the
current period.


LIQUIDITY AND CAPITAL RESOURCES

     On March 31, 2003, our cash position was $4,942 compared to $874 as of
September 30, 2002. During the six months ended March 31, 2003, $60,000 was
received from a 12% note payable, $107,728 from advances from related parties
and $10,000 was received from a subscription for our common stock. These funds
were used to pay the cash operating expenses for the six month period ended
March 31, 2003.

     While management restructures the Company, current operating cash is being
provided by loans and the sale of common stock. The working capital deficit at
March 31, 2003 amounted to $2,312,633. Management is attempting to reduce this
deficit through arrangements with creditors. If we do not make satisfactory
arrangements with the creditors or obtain short term financing, we may not be
able to continue as a viable concern. We do not have a bank line of credit and
there can be no assurance that any required or desired financing will be
available through bank borrowings, debt, or equity offerings, or otherwise, on
acceptable terms, if at all. If future financing requirements are satisfied
through the issuance of equity securities, investors may experience significant
dilution in the net book value per share of common stock.


ITEM 3.   EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     Within 90 days prior to the filing of this quarterly report, the Company's
Chief Executive Officer and its Chief Financial Officer evaluated the Company's
disclosure controls and procedures as required pursuant to Rule 13a-14 under the
Securities and Exchange Act of 1934, as amended. Under rules promulgated by the
SEC, disclosure controls and procedures are defined as those "controls or other
procedures of an issuer that are designed to ensure that information required to
be disclosed by the issuer in the reports filed or submitted by it under the
Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the Commission's rules and forms." Based on this
evaluation, the Chief Executive Officer and Chief Financial Officer determined
that such controls and procedures are effective in timely alerting them to
material information relating to the Company required to be included in the
Company's periodic SEC filings. There were no significant changes in internal
controls that could significantly affect the disclosure controls and procedures
since the date of the evaluation.


                                       9
<PAGE>



PART II - OTHER INFORMATION



ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a) The following exhibits are included herewith:

  EXHIBIT NO.                            DOCUMENT
  -----------                            --------
  Exhibit 99.1        Certification of Chief Executive Officer
  Exhibit 99.2        Certification of Chief Financial Officer


(b) The Company filed the following reports on Form 8-K during the quarter for
which this form is filed:

        none.


                                       10
<PAGE>



                               SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934,
     the registrant has duly caused this report to be signed on its behalf by
     the undersigned thereunto duly authorized.

Date:  May 15, 2003        UNIVERSAL COMMUNICATION SYSTEMS, INC.


                              /s/ MICHAEL J. ZWEBNER
                              ----------------------------
                              Michael J. Zwebner
                              Chief Executive Officer, Chairman of the Board


                                       11
<PAGE>



              CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
                            AS ADOPTED PURSUANT TO
                SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the quarterly report on Form 10-QSB of Universal
Communication Systems, Inc. (the "Company") for the period ended March 31, 2003
as filed with the Securities and Exchange Commission on the date hereof (the
"Report"), the undersigned, Michael Zwebner, Chief Executive Officer of the
Company, hereby certifies, pursuant to 18 U.S.C. section 1350, that:

     (1) the Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

     (2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Dated: May 15, 2003                       /s/ Michael Zwebner
                                          -------------------------
                                          Michael Zwebner
                                          Chief Executive Officer


                                       12
<PAGE>

              CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
                            AS ADOPTED PURSUANT TO
                SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the quarterly report on Form 10-QSB of Universal
Communication Systems, Inc. (the "Company") for the period ended March 31, 2003
as filed with the Securities and Exchange Commission on the date hereof (the
"Report"), the undersigned, Curtis Orgil, Chief Financial Officer of the
Company, hereby certifies, pursuant to 18 U.S.C. section 1350, that:

     (1) the Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

     (2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Dated: May 15, 2003                       /s/ Curtis Orgil
                                          ------------------------------
                                          Curtis Orgil
                                          Chief Financial Officer


                                       13