UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended:  November 30, 2000         Commission File Number:    0-22382

                           SECTOR COMMUNICATIONS, INC.
             (Exact name of registrant as specified in its charter)

               Nevada                                  56-1051491
               ------                                  ----------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

             1801 Century Park East, 23rd Fl., Los Angeles, CA 90067
            ---------------------------------------------------------
              (Address of principal executive offices) (Zip Code)

                                 (310) 772-0715
                                 --------------
              (Registrant's telephone number, including area code)


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during the  proceeding  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. [ X ] Yes [ ] No

         Indicate  the  number of  shares  outstanding  of each of the  issuer/s
classes of common stock as of the last practicable date:

  Number of Shares of Common Stock outstanding at November 30, 2000: 17,368,805.
As of the date of filing 27,360,514 shares were outstanding.





<PAGE>



                           SECTOR COMMUNICATIONS, INC.

                                      INDEX

   PART I   FINANCIAL INFORMATION

            ITEM 1.  Financial Statements (unaudited)

                Balance Sheets............................................ 2-3

                Statements of Operations.................................. 4

                Statements of Cash Flows.................................. 5-6

                Notes to Consolidated Financial Statements (Unaudited).... 7

            ITEM 2.  Managements Discussion and Analysis of Financial
                      Condition and Results of Operations..................13

   PART II  OTHER INFORMATION

            ITEM 1 - Legal Proceedings.................................... 24

            ITEM 2 - Changes In Securities................................ 24

            ITEM 5 - Other information.................................... 24

            ITEM 6.  Exhibits and Reports on Form 8-K..................... 25

            Signature Page................................................ 26


                                       -1-




<PAGE>

                          PART I FINANCIAL INFORMATION

ITEM 1.  Financial Statements


                           SECTOR COMMUNICATIONS, INC.
                           CONSOLIDATED BALANCE SHEET

                                                   November 30,    February 29,
                                                      2000             2000
                                                  -------------    -----------
                                                   (unaudited)
      ASSETS

CURRENT ASSETS
   Cash and Cash Equivalents                      $     134,863    $    170,607
   Accounts Receivable, net of provision for
    doubtful accounts of $24,315 and $18,148            188,315         391,681
      Prepaid Expenses                                   56,564          30,597
                                                  -------------    -----------
      Total Current Assets                              379,742         592,885
                                                  -------------    -----------

PROPERTY AND EQUIPMENT                                1,842,643       2,019,960
   Accumulated Depreciation                          (1,622,582)    ( 1,803,610)
                                                  -------------    -----------
   Net Book Value                                       220,061         216,350
                                                  -------------    -----------

OTHER ASSETS
   Deposits                                              29,421          28,289
                                                  -------------    -----------

      TOTAL ASSETS                                $     629,224    $    837,524
                                                  =============    ============





     The Accompanying Notes are an Integral Part of These Consolidated Financial
Statements.




                                       2
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                           CONSOLIDATED BALANCE SHEET, continued


                                                   November 30,    February 29,
                                                      2000             2000
                                                  -------------    -----------
                                                   (unaudited)

      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts Payable and Accrued Expenses              2,762,694       1,818,732
   Debentures Payable                                   263,952         263,952
   Deferred Revenue                                     155,262         203,878
   Due to Related Parties                               157,904         180,355
                                                  -------------    -----------
      Total Current Liabilities                       3,339,812       2,466,917

Rent Deposit                                             12,248          12,248
                                                  -------------    -----------

      TOTAL LIABILITIES                               3,352,060       2,479,165
                                                  -------------    -----------

Commitments and Contingencies

STOCKHOLDERS' DEFICIT
   Preferred Stock, $.001 par value; 5,000,000
    shares authorized, no shares issued and
    outstanding                                              -                -
   Common Stock, $.001 par value; 500,000,000
    shares authorized 17,368,805 and 17,193,805
     shares issued and outstanding                       17,369          17,194
   Common Stock subscribed                              820,500               -
   Additional Paid-in Capital                        14,441,954      14,376,351
   Accumulated Deficit                              (17,716,912)    (15,748,015)
   Cumulative Foreign Currency Translation
    Adjustment                                      (   285,747)    (   287,171)
                                                  -------------    -----------
      Total Stockholders' Deficit                   ( 2,722,836)    ( 1,641,641)
                                                  -------------    -----------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $     629,224    $    837,524
                                                  =============    ============




     The Accompanying Notes are an Integral Part of These Consolidated Financial
Statements.

                                        3


<PAGE>
<TABLE>
<CAPTION>
                           SECTOR COMMUNICATIONS, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (UNAUDITED)

                                          Three Months Ended           Nine Months Ended
                                     November 30,   November 30,     November 30,    November 30,
                                          2000          1999             2000            1999
                                     -----------    -----------      ------------    -----------
<S>                                  <C>            <C>              <C>             <C>
REVENUE
  Telecommunication Revenue          $   108,133    $  206,505       $   337,345     $   512,205
  Software Sales and
    Maintenance                           78,999       239,405           287,501         399,789
                                     -----------    -----------      ------------    -----------
                                         187,132       445,910           624,846         911,994

COST OF SALES                             54,650       125,259           170,151         358,780
                                     -----------    -----------      ------------    -----------

GROSS PROFIT                             132,482       320,651           454,695         553,214
                                     -----------    -----------      ------------    -----------

OPERATING EXPENSES
  Software Development Costs               6,004       132,123            17,166         220,803
  Sales, General and Administrative    1,247,769       140,867         1,735,540         541,211
                                     -----------    -----------      ------------    -----------
    Total Operating Expenses           1,253,773       272,990         1,752,706         762,014
                                     -----------    -----------      ------------    -----------

Loss From Operations                  (1,121,291)       47,661        (1,298,011)       (208,800)

OTHER INCOME (EXPENSE)
Interest (Expense)                    (    5,279)   (    5,264)        (  15,837)       ( 70,004)
Financing Cost                        (  668,729)             -        ( 668,729)              -
Other Income (Expense)                (      274)         1,748           13,680         105,102
                                     -----------    -----------      ------------    -----------

Loss Before Provision for Income
  Taxes                               (1,795,573)        44,145       (1,968,897)       (173,702)

Provision for Income Taxes                     -              -                -               -
                                     -----------    -----------      ------------    -----------

Net Loss                             $(1,795,573)   $    44,145      $(1,968,897)    $  (173,702)
                                     ===========    ===========      ============    ===========

Loss Per Share                       $ (    0.10)   $         -      $ (    0.11)    $ (    0.01)
                                     ===========    ===========      ============    ===========
Weighted Average Number of Shares
  Outstanding                         17,368,805     17,193,805       17,296,896      16,099,249
</TABLE>



     The Accompanying Notes are an Integral Part of These Consolidated Financial
Statements.

                                        4

<PAGE>
                           SECTOR COMMUNICATIONS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                     FOR THE NINE MONTHS ENDED NOVEMBER 30,

                                                          2000             1999
                                                    ------------    ------------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Loss                                          $( 1,968,897)   $(  173,702)
  Adjustments to Reconcile Net Loss to Net Cash
   Provided By Operating Activities:
    Depreciation and Amortization                         72,796        246,126
    Allowance for doubtful accounts                        7,289              -
    Impairment of loan                                   640,500              -
    Amortization of Discount and Loan Costs                    -         78,889
    Stock based compensation                              65,779              -
    Change in Assets and Liabilities
      (Increase) Decrease in Assets
        Accounts Receivable                              197,199        231,494
        Prepaid Expenses and Deposits                (    27,099)        10,633
        Loans receivable                                (640,500)             -
      (Decrease) Increase in Liabilities
        Accounts Payable                                 943,962        107,770
        Related Party Payable                        (    22,451)    (   44,158)
        Deferred Revenue                             (    48,616)    (  180,953)
                                                    ------------    ------------
Net Cash Provided (Used) By Operating Activities     (   780,038)       276,099
                                                    ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of Fixed Assets                           (    77,117)    (   98,419)
                                                    ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Sale of Common Stock                                         -        100,000
  Common Stock Subscribed                                820,500              -
                                                    ------------    ------------
                                                         820,500        100,000
                                                    ------------    ------------

Effect of Exchange Rate Changes on Cash                      911     (  267,224)
                                                    ------------    ------------

Net (Decrease) Increase in Cash                       (   35,744)        10,456

CASH - MARCH 1,                                          170,607        181,877
                                                    ------------    ------------
CASH - NOVEMBER 30,                                 $    134,863    $   192,333
                                                    ============    ===========

SUPPLEMENTAL CASH FLOWS INFORMATION:
  Cash Paid For:
    Interest                                        $          -    $         -
                                                    ============    ===========
    Taxes                                           $          -    $         -
                                                    ============    ===========

     The accompanying notes are an integral part of these consolidated financial
statements.

                                        5
<PAGE>


                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                     FOR THE NINE MONTHS ENDED NOVEMBER 30,



SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCIAL ACTIVITIES:

  Period ended November 30, 2000:

    Common stock totaling  175,000 shares was issued for services.  These shares
    have been valued at $32,900.

    Options to purchase 175,000 shares of common stock were issued for services.
    These options have been valued at $32,879.

  Period ended November 30, 1999:

    Common stock totaling  2,425,000 shares was issued in settlement of accounts
    payable aggregating $97,000.






















The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                        6


<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                           NOVEMBER 30, 2000 AND 1999

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          a)   Basis of Presentation
               ---------------------
               The  accompanying  financial  statements  have been  prepared  in
               accordance  with  generally  accepted  accounting  principles for
               interim  financial  information and with the instructions to Form
               10-QSB.  Accordingly,  they do not include all of the information
               and   footnotes   required  by  generally   accepted   accounting
               principles for complete financial  statements.  In the opinion of
               management,  all adjustments (consisting only of normal recurring
               adjustments)  considered  necessary for a fair  presentation have
               been included.  Certain  reclassifications  have been made to the
               prior period to conform to the current period's presentation.

               For further  information  refer to the financial  statements  and
               footnotes  included  in the  Registrant's  Annual  Report on form
               10-KSB for the period ended February 29, 2000.

               The  results  of  operations  for  any  interim  period  are  not
               necessarily indicative of the results to be expected for the full
               fiscal year ending February 28, 2001.

               The unaudited  consolidated balance sheet as of November 30, 2000
               and the consolidated  statements of operations and cash flows for
               the nine and three month periods ended November 30, 2000 and 1999
               are  those of  Sector  Communications,  Inc.  ("Sector")  and its
               subsidiaries   (collectively  the  "Company").   All  significant
               inter-company accounts and transactions have been eliminated.

          b)   Loss Per Share
               --------------
               Loss per share is based on the weighted  average number of shares
               of common stock outstanding during the period.

               On July 1, 1999, the Company  effected a 5 for 1 stock split. All
               share and per share amounts presented in the financial statements
               give retroactive effect to this stock split.


                                       7
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                           NOVEMBER 30, 2000 AND 1999

NOTE 2 -  PROPERTY AND EQUIPMENT

          Property and equipment consists of the following:

                                                    November 30,   February 29,
                                                        2000           2000
                                                    ------------   ------------
            Fiber Network                           $    157,837   $   157,837
            Equipment                                  1,541,099     1,724,832
            Furniture and Fixtures                        53,639        47,223
            Vehicles and Other                            90,068        90,068
                                                    ------------   ------------
                                                       1,842,643     2,019,960
            Less:  Accumulated Depreciation            1,622,582     1,803,610
                                                    ------------   ------------
                                                    $    220,061   $   216,350
                                                    ============   ============

          Depreciation  expense for the nine month  periods  ended  November 30,
          2000 and 1999 was $72,796 and $246,126, respectively and for the three
          month  periods  ended  November  30,  2000 and 1999  was  $25,092  and
          $77,678, respectively.

NOTE 3 -  WARRANTS

          At November 30, 2000,  all of the Company's  outstanding  common stock
          purchase warrants expired as follows:

               Number         Exercise                               Date of
             of Shares          Price           Exercisable        Expiration
             ---------        ---------         -----------        ----------
               10,000        $   22.50            2/28/97           6/30/00
               10,000            30.00            7/20/97           6/30/00
               10,000            40.00            7/20/98           6/30/00
               ------
               30,000
               ======

NOTE 4 -  STOCK OPTION PLANS

          A summary of stock option  transactions  for the period ended November
          30, 2000 are as follows:

                  Outstanding, Beginning                  5,312,458

                  Granted                                   175,000
                                                          ---------
                  Outstanding, Ending                     5,487,458
                                                          =========
                  Exercisable, Ending                     5,487,458
                                                          =========
                                       8
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                           NOVEMBER 30, 2000 AND 1999

NOTE 5 -  STOCKHOLDERS' EQUITY

          The  company has  received  $400,000  in common  stock  subscriptions.
          Because  the price of the  company's  stock  remained  below $0.15 per
          share for 10  consecutive  trading days,  the  subscription  price was
          reset to $0.10  per  share,  which  was below  the  trading  price.  A
          financing cost attributable to the discount, aggregating $668,729, has
          been recorded in the financial statements.  4,000,000 shares of common
          stock were issued in December, 2000.

          During the quarter ended  November 30, 2000,  the company has received
          an  additional  $420,500 in common stock  subscriptions.  These shares
          have not yet been issued.

          On  August 8,  2000,  the  authorized  number  of  common  shares  was
          increased to 500,000,000 shares.

          On June 22, 2000,  the Company  issued  175,000 shares of common stock
          for directors' compensation. These shares have been valued at $32,900.

          On June 22,  2000,  the Company  issued  options to  purchase  175,000
          shares of common stock as compensation for service. These options have
          been valued at $32,879 using the Black- Sholes options pricing model.

          The Company issued  2,425,000  shares of common stock in settlement of
          accounts payable aggregating $97,000.

          In May 1999, the Company sold 3,846,150  shares of common stock to two
          purchasers for cash proceeds of $100,000.

          On July 1, 1999, the Company effected a 5 for 1 stock split. All share
          and per share  amounts  presented  in the  financial  statements  give
          retroactive effect to this stock split.


NOTE 6 -  COMMITMENTS AND CONTINGENCIES

          1)   A former  employee  of  Ideous  filed  suit  against  Ideous  for
               wrongful termination. Judgment was entered against  Ideous in the
               amount of  $110,850.  An appeal is  pending.  The full amount has
               been accrued in the financial statements.


                                       9
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                           NOVEMBER 30, 2000 AND 1999


NOTE 6 -  COMMITMENTS AND CONTINGENCIES (continued)

          2)   An  individual  has filed suit against the  Company,  also naming
               Worldwide  Plumbing Supply,  Inc.  ("Worldwide") and Allan Kline.
               The suit  alleges  that  Mr.  Kline  represented  that he was the
               President  of Sector  and would  sell  35,000  shares of  Company
               Common Stock to the  plaintiff for $20,000.  The  plaintiff  also
               alleges that Mr. Kline told the plaintiff  that Worldwide was the
               parent of Sector.  The plaintiff  issued a check to Worldwide and
               it was  cashed.  Worldwide  has  filed  an  answer.  The  Company
               maintains  that it has no knowledge  of Worldwide  and that Allan
               Kline is not the  President  of Sector.  The Company  denies each
               allegation,  believes  the suit as it relates  to the  Company is
               without  merit,  and  intends to defend  itself  vigorously.  The
               plaintiff seeks the return of $20,000.

          3)   Agricola  Metals,  Inc. filed a suit against the Company  seeking
               $31,136.  The plaintiff alleges that it had a consulting contract
               with  the  Company  and is  owed  this  amount  pursuant  to said
               contract.  The  Company  has filed an answer and denies  each and
               every allegation.

          4)   The  Company  is  named  a  defendant   in  an  action   alleging
               non-payment  of legal  services  and  expenses  in the  amount of
               $12,500.  The Company  believes some loss may be probable and has
               accrued this amount in the financial statements.

NOTE 7 -  GOING CONCERN

          The accompanying  consolidated financial statements have been prepared
          assuming the Company will continue as a going concern.  As of November
          30, 2000, the Company has a working  capital deficit of $2,960,070 and
          an accumulated  deficit of $17,716,912.  Based upon the Company's plan
          of operation, the Company estimates that existing resources,  together
          with funds  generated from  operations  will not be sufficient to fund
          the  Company's  working  capital.  The  Company  is  actively  seeking
          additional  equity   financing.   There  can  be  no  assurances  that
          sufficient  financing  will be  available on terms  acceptable  to the
          Company or at all. If the Company is unable to obtain such  financing,
          the Company will be forced to scale back operations,  which would have
          an adverse effect on the Company's financial conditions and results of
          operation.

                                       10
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                           NOVEMBER 30, 2000 AND 1999

NOTE 8 -  SEGMENT INFORMATION

     The Company's foreign  operations are conducted by Global,  Sector Bulgaria
     and Ideous.

                                                                 November 30,
                                                   2000               1999
                                          ----------------     ---------------
   Revenues from external customers:
     Telecommunications                   $        337,345     $       512,205
     Software                                      287,501             399,789
                                          ----------------     ---------------
                                          $        624,846     $       911,994
                                            ==============     ===============

   Interest expense:
     Corporate                            $         15,837     $        70,004
                                           ===============      ==============

   Depreciation and amortization:
     Telecommunications                   $         64,004     $      218,598
     Software                                        8,792              19,812
     Corporate                                           -               7,716
                                          ----------------     ---------------
                                          $         72,796     $       246,126
                                           ===============     ===============

   Segment profit (loss) before taxes:
     Telecommunications                   $     (   39,735)    $        59,379
     Software                                   (   33,282)        (    30,539)
     Corporate                                  (1,895,880)        (   202,542)
                                          ----------------     ---------------
                                          $     (1,968,897)    $   (   173,702)
                                         =================      ==============

   Segment assets:
     Telecommunications                   $        347,926     $       491,544
     Software                                      186,064             246,007
     Corporate                                      95,234              53,232
                                          ----------------     ---------------
                                          $        629,224     $       790,783
                                          ================     ===============
   Expenditure for segment assets:
     Telecommunications                   $         66,408     $        75,642
     Software                                        1,610              22,777
     Corporate                                       9,099                   -
                                           ----------------     ---------------
                                          $         77,117     $        98,419
                                          ================     ===============

                                       11
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                           NOVEMBER 30, 2000 AND 1999

NOTE 8 - SEGMENT INFORMATION (CONT'D)

   The following geographic area data for trade revenues is based on
   product or service  delivery  location and property,  plant,  and
   equipment is based on physical location.

                                                        November 30,
                                                  2000                 1999
                                          ----------------     ---------------
   Revenues from external customers:
     United States                        $              -     $             -
     Switzerland                                   287,501             399,789
     Bulgaria                                      337,345             512,205
                                          ----------------     ---------------
                                          $        624,846     $       911,994
                                          ================     ===============

   Segment assets:
     Switzerland                          $        186,064     $       246,007
     Bulgaria                                      347,926             491,544
     United States                                  95,234              53,232
                                          ----------------     ---------------
                                          $        629,224     $       790,783
                                          ================     ===============


NOTE 9-      SUBSEQUENT EVENTS

             The company issued  3,991,709 shares of common stock as payment for
             services by  directors.  These shares have been valued at $339,295.
             This amount has been included in the  statement of  operations  for
             the three and nine month periods ended November 30, 2000.

             The company has entered into three consulting agreements.  Payments
             of these agreements will be made through  the issuance of 2,000,000
             shares of common stock.







                                       12
<PAGE>




Item 2.        Management's  Discussion and Analysis of Financial Condition
               and Results of Operations

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS:

Sector  includes  certain  estimates,   projections  and  other  forward-looking
statements  in its  reports,  presentations  to  analysts  and  others and other
material  disseminated  to the public.  There can be no  assurance  as to future
performance  and  actual  results  may  differ  materially  from  those  in  the
forward-looking  statements.  Factors that could cause actual  results to differ
materially from estimates or projections contained in forward-looking statements
include:  (i) the effects of vigorous competition in the markets in which Sector
operates;  (ii) the cost of entering new markets  necessary to provide  products
and  services;  (iii) the impact of any unusual  items  resulting  from  ongoing
evaluations of Sector's business strategies; (iv) requirements imposed on Sector
and its  competitors  by the Bulgarian  Telecommunications  Company  (BTC);  (v)
unexpected  results of litigation filed against Sector; and (vi) the possibility
of one or more of the  markets  in  which  Sector  competes  being  affected  by
variations  in  political,  economic or other  factors such as monetary  policy,
legal and regulatory  changes or other external factors over which Sector has no
control.

OVERVIEW

On August  29,  2000,  Sector  signed a  preliminary  letter of intent  (LOI) to
acquire  several  corporations  which were to develop  business  markets for the
Company in sales and retail job  exposition  and  recruitment  conferences;  the
agreement  called  for  Sector  to  fund  a  portion  of the  target  companies'
operations while continuing to conduct due diligence inquiries.  As Sector's due
diligence  inquiries  progressed during the September and October,  the Board of
Directors had increased  concern  regarding the  transaction and the operational
structure within the target  companies;  Sector's Board determined it was not in
the Company's best interests to proceed with the  transactions  contemplated  by
the LOI.  Instead,  the Company wrote off the monies  transferred  to the target
companies and formed several  subsidiary  corporations with the intent of making
its own forays into the  exposition  business.  The first of these  "Global Tech
Expos" is presently scheduled in March, 2001 in Silicon Valley,  California, and
is unique in its focus on the high-tech  information  technology (IT) sector and
use of  videoconferencing  equipment  (supplied  by joint  venturer  Talk Visual
Corporation) to allow real-time  participation by applicants domestically and in
foreign  countries.  Additional  events are scheduled  throughout 2001, with the
current  base of  operations  for one of the new  subsidiaries,  known as Sector
Development,  Inc. and doing  business as "Global Tech Expos",  sited in Irvine,
California. The Company believes its development of new markets domestically and
in  foreign  countries  will  provide  a new  business  focus as  former  market
concentrations diminish or expire.



                                       13
<PAGE>


During the quarter,  the Company's Board of Directors  conducted further on-site
reviews of its subsidiary  business  operations in Bulgaria;  assigned directors
analyzed  business  activity of the subsidiary  corporation  and its staff,  its
current operating structure, and recent threats by the BTC to disconnect certain
circuits   serving  the   subsidiary   corporation's   clients.   The  Directors
collectively determined that Sector's telecommunications business in Bulgaria is
in a  precarious  state given recent  activity by the BTC (and the  necessity to
maintain arbitration proceedings against the government-owned telecommunications
entity) and upcoming deregulation of telecommunications within the country. As a
result,  the Directors  ordered certain research activity intended to source new
markets for  replacement  of its subsidiary  business,  with the belief that the
Company can  continue to advance in Bulgaria as an  underdeveloped  market.  The
Company  continued  activity  with  respect  to the cable  television  and other
license rights  obtained  previously,  including  directives for security system
signal  transmission,  although  it has not  yet  approved  a  formal  plan  for
exploitation  of the licenses and cannot  estimate the  financial  impact of the
same.  The  directors  also  ordered  a  downsizing  of staff of its  subsidiary
business and instituted a system of financial  controls which presently requires
review of all  contemplated  expenditures by at least one director of the parent
company.


RESULTS OF OPERATIONS (For the 3 months ended November 30, 2000 v. 1999)

Telecommunication   Revenue   -   Sector   continues   to   earn   all   of  its
telecommunications  revenue from Sector PLC (i) providing  direct-dial  services
for international  long distance calls to a select group of hotels in the cities
of  Sofia  and  Plovdiv  in   Bulgaria;   (ii)  from  the  sales,   integration,
installation, and maintenance of customer-owned digital phone systems (primarily
through  its  distributor  agreement  with  Mitel);  and (iii) from  usage-based
percentages  of Sector  PLC-owned  digital phone systems  through shared revenue
agreements with some of its customers.

Sector's  telecommunications  revenue for the three months ended on November 30,
2000 was  $108,133,  which  represents  a  decrease  of  $98,372 or 48% from the
$206,505 of revenue earned for the same quarter of 1999. Management believes the
decrease  in revenue  was the  result of a decrease  in the number of hotels who
have contracted for services from Sector and a decrease in overall  occupancy of
its hotel customers.  Management  estimates that revenue levels for the upcoming
quarter will remain stable but suspects that steps  presently being taken toward
deregulation of the BTC and the BTC's present competitive strategies could cause
some of Sector's  existing clients to terminate their  contracts.  Management is
unable to estimate if or when such terminations may occur and therefore provides
no estimate of its financial impact.


                                       14
<PAGE>


Software Sales and Maintenance Revenue - Sector's software sales and maintenance
revenue for the three  months  ended on November  30,  2000 was  $78,999,  which
represents a decrease of 160,406 or 67% from the $239,405 of revenue  earned for
the same  quarter  of 1999  (all  figures  are net of  payments  to third  party
distributors).  Management  believes  the decrease in sales for the three months
ending  November 30, 2000, was  attributable  to a winding down of operations by
HIS, which is  experiencing a shortfall of capital funding and has threatened to
cease operations altogether. The Company continues to be affected by the lack of
capital  available to HIS to (1) fund an adequate  level of sales and  marketing
expense and (2) fund the software and development  expense  necessary to upgrade
existing product lines or to develop new applications.

Costs of Sales - The Cost of Sales  (COS) of Sector for the three  months  ended
November  30, 2000 was  $54,650,  which  represents a decrease of $70,609 or 56%
from $125,259 COS  experienced for the same quarter of 1999. The majority of the
decrease was  attributable to (1) the decrease in costs associated with payments
due to the BTC  resulting  from  the  lower  revenues  (2) a  decrease  in other
variable  expenses  associated  with the lower revenue levels and (3) to reduced
depreciation charges of fixed assets.  Management anticipates some reductions in
the coming  quarter which will be  attributable  to active  management of Sector
PLC's  expenditures  by  the  parent  company's  directors,   but  expects  such
reductions to be offset by new costs of sale  attributable to its job exposition
business.

Gross Profit - Gross profit is calculated as revenues less the cost of revenues.
Sector's gross profit for the three months ended November 30, 2000 was $132,482,
which represents a decrease of $188,169 or 59% from the $320,651 of gross profit
experienced for the same quarter of 1999.  Management  considers the decrease in
accord with the reduction of telecommunications and software sales revenues.

Operating   Expenses  -  Operating   expenses  represent  the  sum  of  software
development  costs  and  sales,  general  and  administrative   expenses.  Total
operating expenses of Sector for the three month period ending November 30, 2000
were  $1,253,773,  which  represents  an  increase  of $980,783 or 359% from the
$272,990 of operating  expenses incurred for the same quarter of 1999. More than
half of this  increase or $640,500 is  attributable  to  write-off of the monies
funded to one of the target companies Sector intended to acquire.  The remainder
of the increase is attributable to costs associated with startup of Sector's job
exposition  business  and  maintenance  of  offices  and  staff in Los  Angeles,
California,  along  with  issuance  of shares  as  director's  compensation  and
compensation  to the  individuals  who  framed  Sector's  plans for  entry  into
exposition markets. Management expects operating expenses to decrease during the
upcoming quarter as it does not expect to experience again the type of write-off
expensed to the quarter ended  November 30, 2000;  management  cannot  presently
estimate  the  percentage  or dollar  decrease  expected,  as  expansion  of its
subsidiary  businesses  can be expected to offset a  significant  portion of the
anticipated decreases.


                                       15
<PAGE>


Software  Development Costs - Software  development costs consisted primarily of
salaries, related benefits,  consultants fees and other costs. Sector's software
development  costs for the three  month  period  ending  November  30, 2000 were
$6,004, which represents a decrease of $126,119 or 95% from $132,123 of software
development  costs  incurred  for the same  quarter of 1999.  The  decrease  was
attributable the lack of capital  available to HIS/Ideous to fund a higher level
of software  development costs.  Management believes software  development costs
will remain stable or decrease during the upcoming quarter.

Sales,  General and  Administrative  Costs  (SG&A)- SG&A  consists  primarily of
personnel costs, including salaries,  benefits and bonuses and related costs for
management,  finance and accounting, legal and other professional services. SG&A
Expenses for Sector for the period  ending  November  30, 2000 were  $1,247,769,
which  represents  an  increase of  $1,106,902  or 785% from the  $140,687  SG&A
experienced  for the same  quarter of 1999.  More than half of this  increase or
$640,500 is  attributable to write-off of the monies funded to one of the target
companies  Sector  intended  to  acquire.  The  remainder  of  the  increase  is
attributable  to costs  associated  with  startup  of  Sector's  job  exposition
business and maintenance of offices and staff in Los Angeles,  California, along
with  issuance of shares as  director's  compensation  and  compensation  to the
individuals  who  framed  Sector's  plans for  entry  into  exposition  markets.
Management is currently  working with Sector PLC's executive to reduce staff and
cut  costs  wherever   possible.   Management   expects   Sector's  general  and
administrative costs, exclusive of any addition of new employees, to be reduced,
as it does not expect to experience again the type of write-off  expensed to the
quarter ended  November 30, 2000. If the Company  proceeds with  acquisition  or
other development plans, however,  domestic operating general and administrative
expenses  would be expected  to rise in  accordance  with the costs  incurred to
administer  the business  elements of such plans,  the dollar  figures for which
cannot presently be estimated.

Interest  Expense - Interest  expense  of $5,264  incurred  for the three  month
period ending November  30,2000  decreased by $15 or less than 0.01% as compared
to the  interest  expense of $5,264  incurred for the same three month period of
1999.  Management  considers  the change  negligible.  Management  expects  that
interest expense could increase in the future to the degree Sector borrows funds
in order to finance any  continuing  operating cash flow deficits and implements
any capital expenditure plans.


RESULTS OF OPERATIONS (For the 9 months ended November 30, 2000 v. 1999)

Telecommunications   Revenue   -   Sector   continues   to   earn   all  of  its
telecommunications  revenue from Sector PLC (i) providing  direct-dial  services
for international  long distance calls to a select group of hotels in the cities
of  Sofia  and  Plovdiv  in   Bulgaria;   (ii)  from  the  sales,   integration,
installation, and maintenance of customer-owned digital phone systems (primarily
through  its  distributor  agreement  with  Mitel);  and (iii) from  usage-based
percentages  of Sector  BG-owned  digital phone systems  through  shared revenue
agreements with some of its customers.

                                       16
<PAGE>


Sector's  telecommunications  revenue for the nine months  ended on November 30,
2000 was $337,345,  which represents a decrease of $174,860 or 34% decrease from
the $512,205 of revenue earned for the same period of 1999.  Management believes
the decrease in revenue was the result of a decrease in the number of hotels who
have contracted for services from Sector and a decrease in overall  occupancy of
its hotel customers.  Management  estimates that revenue levels for the upcoming
nine month period will remain  stable but suspects  that steps  presently  being
taken  toward  deregulation  of  the  BTC  and  the  BTC's  present  competitive
strategies  could cause some of Sector's  existing  clients to  terminate  their
contracts.  Management  is unable to estimate if or when such  terminations  may
occur and therefore provides no estimate of its financial impact.

Software Sales and Maintenance Revenue - Sector's software sales and maintenance
revenue  for the  nine  months  ended  November  30,  2000 was  $287,501,  which
represents a decrease of $112,288 or 28% from the $399,789 of revenue earned for
the same period of 1999. Management believes the decrease in sales for the three
months  ending  November  30,  2000,  was  attributable  to a  winding  down  of
operations by HIS, which is  experiencing a shortfall of capital funding and has
threatened to cease operations altogether.  The Company continues to be affected
by the lack of capital  available to HIS to (1) fund an adequate  level of sales
and  marketing  expense  and (2)  fund  the  software  and  development  expense
necessary to upgrade existing product lines or to develop new applications.


Cost of Sales - The Cost of Sales  (COS) of  Sector  for the nine  months  ended
November 30, 2000 was $170,151,  which  represents a decrease of $188,629 or 52%
from the $358,780 COS  experienced  for the same period of 1999. The majority of
the  decrease was  attributable  to (1) the  decrease in costs  associated  with
payments  due to the BTC  resulting  from the lower  revenues  (2) a decrease in
other  variable  expenses  associated  with the lower revenue  levels and (3) to
reduced  depreciation  charges  of fixed  assets.  Management  anticipates  some
reductions  in the  coming  nine  months  which will be  attributable  to active
management of Sector PLC's expenditures by the parent company's  directors,  but
expects such  reductions to be offset by new costs of sale  attributable  to its
job exposition business.

Gross Profit - Gross profit is calculated as revenues less the cost of revenues.
Sector's  gross profit for the nine months ended November 30, 2000 was $454,695,
which  represents a decrease of $98,519 or 18% from the $553,214 of gross profit
experienced for the same period of 1999. The decrease is considered natural as a
result of the decreases  experienced in Revenues and Costs of Sales as described
herein.

Operating   Expenses  -  Operating   expenses  represent  the  sum  of  software
development  costs  and  sales,  general  and  administrative   expenses.  Total
operating  expenses of Sector for the nine month period ending November 30, 2000
were  $1,752,706,  which  represents  an  increase  of $990,692 or 130% from the
$762,014 of operating  expenses  incurred for the same period of 1999. More than
half of this  increase or $640,500 is  attributable  to  write-off of the monies
funded to one of the target companies Sector intended to acquire.  The remainder


                                       17
<PAGE>


of the increase is attributable to costs associated with startup of Sector's job
exposition  business  and  maintenance  of  offices  and  staff in Los  Angeles,
California,  along  with  issuance  of shares  as  director's  compensation  and
compensation  to the  individuals  who  framed  Sector's  plans for  entry  into
exposition  markets.  While  management does not expect to experience  again the
type of write-off  expensed to the quarter  ended  November 30, 2000, it expects
operating  expenses to remain stable or increase  during the upcoming nine month
period,  principally  because it expects  expansion  efforts to be active during
that time.  Management cannot presently estimate the percentage or dollar shifts
expected,  as expansion of its subsidiary businesses can be expected to offset a
significant portion of the anticipated decreases.

Software  Development Costs - Software  development costs consisted primarily of
salaries, related benefits,  consultants fees and other costs. Sector's software
development  costs for the nine months  ending  November 30, 2000 were  $17,166,
which  represents  a decrease  of 92% or  $203,637  from the  $220,803  of costs
experienced  during the same period of 1999. The decrease was  attributable  the
lack of capital  available  to  HIS/Ideous  to fund a higher  level of  software
development costs.  Management  believes software  development costs will remain
stable or decrease during the upcoming quarter.

Sales,  General and  Administrative  Costs  (SG&A)- SG&A  consists  primarily of
personnel costs, including salaries,  benefits and bonuses and related costs for
management,  finance and accounting, legal and other professional services. SG&A
expenses  for Sector for the nine month  period  ending  November  30, 2000 were
$1,735,540, which represents an increase of $1,194,329 or 220% from the $541,211
SG&A  experienced  for the same quarter of 1999. More than half of this increase
or $640,500 is  attributable  to  write-off  of the monies  funded to one of the
target  companies  Sector intended to acquire.  The remainder of the increase is
principally  attributable  to costs  associated  with  startup of  Sector's  job
exposition  business  and  maintenance  of  offices  and  staff in Los  Angeles,
California,  along  with  issuance  of shares  as  director's  compensation  and
compensation  to the  individuals  who  framed  Sector's  plans for  entry  into
exposition markets.  Management is currently working with Sector PLC's executive
to reduce staff and cut costs wherever  possible.  Management  expects  Sector's
general and administrative costs, exclusive of any addition of new employees, to
be  reduced,  as it does not expect to  experience  again the type of  write-off
expensed to the quarter ended  November 30, 2000.  If the Company  proceeds with
acquisition or other development plans, however,  domestic operating general and
administrative  expenses would be expected to rise in accordance  with the costs
incurred to administer the business  elements of such plans,  the dollar figures
for which cannot presently be estimated.

Interest  Expense -  Interest  expense of  $15,837  incurred  for the nine month
period  ending  November  30,2000  decreased  by $54,167 or 77% as  compared  to
interest  expense of $70,004  incurred  for the same period in 1999.  Management
expects that interest  expense could increase in the future to the degree Sector
borrows funds in order to finance any  continuing  operating  cash flow deficits
and implements any capital expenditure plans.


                                       18
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

During the quarter  ending  November 30,  2000,  the Company  financed  Sector's
operations   primarily  through  sales  revenue  generated  from  the  Company's
subsidiaries.  The Company  also  received  $400,000 in funding  through a stock
subscription pursuant to a Regulation S offering. A director of the Company is a
30%  owner of the  company  providing  50% of this  funding.  The  Company  also
received  $420,500 in funding  through debt  instruments  convertible to sale of
shares of its common stock under  Regulation  S. Although the Company has in the
past and is  currently  experiencing  negative  cash flow from  operations,  the
Company  believes it will be able to meet its basic capital  demands  during the
next quarter through cash receipts from its subsidiary exposition business.  The
funding of any expanded and/or future  operations will require further infusions
of capital.

If  additional  funds are raised by the Company  through the  issuance of equity
securities, securities convertible into or exercisable for equity securities, or
an equity  securities  exchange,  the  percentage  ownership of the then current
stockholders  of the Company  will be reduced.  The Company may issue  preferred
stock  with  rights,  preferences  or  privileges  senior to those of the common
stock.  There can be no  assurance  that the Company will be  successful  in its
efforts to obtain  adequate  capital or if any such  additional  capital is made
available  to the Company that it will be on terms and  conditions  that are not
extremely dilutive to the present holders of the Common Stock.

Discontinuance  of the listing of the Company's common stock on the NASDAQ Small
Cap Market occurred  previously;  the Company's  common stock  presently  trades
through the Over the Counter Bulletin Board.


FORWARD-LOOKING STATEMENTS

     Management's  Discussion and Analysis of Financial Condition and Results of
Operations  contains  forward-looking  statements.  There are certain  important
factors  that  could  cause  results  to  differ  materially  from  those in the
forward-looking  statements  contained  in  the  above  discussion.  Among  such
important  factors are (i) the timely creation of versions of Sector's  products
for the  Microsoft  Windows NT and UNIX  operating  systems,  (ii) the impact of
Microsoft  Windows NT, UNIX and other  operating  systems on the open VMS market
upon which  Sector's  current  products  are  dependent,  (iii) the  reliance on
distributors to continue reselling Sector's products, (iv) the ability of Sector
to successfully expand the distribution of its products through new and unproven
channels, including resellers,  integrators,  distributors and direct sales, (v)
the risks associated with Sector's engineering effort needed to develop products
for Microsoft  Windows NT and Unix, (vi) the impact of competitive  products and
pricing,  (vii) the  uncertainty  of the labor market and local  regulations  in
Switzerland, Bulgaria and the United Kingdom, (vii) Sector's ability to hire and
retain research and development  personnel with  appropriate  skills in a highly
competitive  labor  market,  and  (viii)  such  risks and  uncertainties  as are
detailed  from time to time in the  Company's  public  reports,  including  this
Report.


                                       19
<PAGE>


     In addition to the factors described above,  factors that may contribute to
future fluctuations in quarterly operating results include,  but are not limited
to: (i) the development and  introduction of new operating  systems that require
additional development efforts; (ii) the introduction or enhancement of products
by Sector or its competitors; (iii) changes in the pricing policies of Sector or
its  competitors;  (iv)  increased  competition;  (v)  technological  changes in
computer and  telecommunications  systems and environments;  (vi) the ability of
Sector to timely develop,  introduce and market new products and services; (vii)
Sector's  quality  control of products and services sold;  (vii) Sector's market
readiness  to deploy  systems  management  products  for  distributed  computing
environments;  (ix) Sector's market  readiness to deploy new  telecommunications
services;   (x)  market  acceptance  of  new  services,   products  and  product
enhancements;  (xi) customer order deferrals in anticipation of new products and
product  enhancements;  (xii)  Sector's  success  in  expanding  its  sales  and
marketing  programs;  (xiii) personnel changes;  (xiv) foreign currency exchange
rates; (xv) mix of products sold; and (xvi) general economic conditions.

     Sector's  future  revenues will also be difficult to predict.  Accordingly,
any significant  shortfall of revenues in relation to management's  expectations
or any material delay of customer orders would have an immediate  adverse effect
on its business,  operating results and financial condition.  As a result of all
of the foregoing factors, management believes that period-to-period  comparisons
of Sector's results of operations are not and will not necessarily be meaningful
and should not be relied upon as any indication of future performance.

     Management of Growth;  Dependence on Key Personnel.  In the future,  Sector
will be required to continue to improve its financial and  management  controls,
reporting  systems and  procedures  on a timely  basis and to expand,  train and
manage its employee  work force.  There can be no assurance  that Sector will be
able to  effectively  manage  such  growth.  Its  failure  to do so would have a
material  adverse  effect  on its  business,  operating  results  and  financial
condition.  Competition  for  qualified  sales,  technical  and other  qualified
personnel is intense and there can be no  assurance  that Sector will be able to
attract,  assimilate  or retain  additional  highly  qualified  employees in the
future.  If Sector is unable to hire and  retain  such  personnel,  particularly
those in key positions, its business,  operating results and financial condition
would be materially adversely affected.  Sector's future success also depends in
significant  part upon the  continued  service of its key  technical,  sales and
senior  management  personnel.  The loss of the services of one or more of these
key employees  could have a material  adverse effect on its business,  operating
results and  financial  condition.  Additions of new and  departures of existing
personnel,  particularly  in key positions,  can be disruptive and can result in
departures of existing personnel,  which could have a material adverse effect on
Sector's business, operating results and financial condition.

     Uncertainty  in  Developing  Products for New Operating  Systems.  Sector's
software products operate  primarily on the Open VMS operating system.  Sector's
current product development activities are primarily directed towards developing
new  products  for  the  Windows  NT  and  UNIX  operating  systems,  developing
enhancements to its current  products and porting new products and  enhancements
to other  operating  systems.  Sector has made and  intends to  continue to make
substantial  investments  in porting its products to new  operating  systems and
Sector's  future success will depend on its ability to  successfully  accomplish
such ports.

                                       20
<PAGE>


     The process of porting existing  products and product  enhancements to, and
developing  new  products  for, new  operating  systems  requires a  substantial
capital  investment,  the devotion of  substantial  employee  resources  and the
cooperation  of the owners of the  operating  systems to which the  products are
being  ported  or  developed.  For  example,  the  added  focus on  porting  and
development  work for the  Windows NT market  has  required,  and will  require,
Sector to hire additional personnel with expertise in the Windows NT environment
as well as devote its engineering resources to these projects.  The diversion of
engineering  personnel  to this area may cause Sector to be delayed in its other
product  development  efforts.  Furthermore,  operating  system  owners  have no
obligation  to assist in these  porting or  development  efforts and may instead
choose to enter into  agreements  with other third party software  developers or
internally develop their own products.  In particular,  the failure to receive a
source  license to certain  portions of the  operating  system,  either from the
operating system owner or a licensee thereof,  would prevent Sector from porting
its products to, or developing products for, such operating system. There can be
no assurance that Sector's  current or future porting efforts will be successful
or, even if successful, that the operating system to which Sector elects to port
to or develop products will achieve or maintain market  acceptance.  The failure
of Sector to port its  products  to new  operating  systems  or to select  those
operating  systems  that  achieve and maintain  market  acceptance  could have a
material adverse effect on Sector's  business,  operating  results and financial
condition.

     Risks Associated With International Operations. International revenue (from
sales  outside  the  United  States  and  Canada)  accounted  for a  significant
percentage of Sector's total revenues for fiscal 1999.  Management believes that
Sector's  success  depends  upon  continued   expansion  of  its   international
operations.  Sector currently has sales offices in Bulgaria and Switzerland. Any
International  expansion  may require  Sector to  establish  additional  foreign
offices,   hire  additional  personnel  and  recruit  additional   international
resellers.  This may require  significant  management  attention  and  financial
resources and could adversely affect Sector's operating  margins.  To the extent
that  Sector is unable to effect  these  additions  efficiently  and in a timely
manner,  its growth,  if any, in  international  sales will be limited,  and its
business,  operating  results and financial  condition  could be materially  and
adversely  affected.  There  can be no  assurance  that  Sector  will be able to
maintain or increase  international  market demand for its products.  Sector, as
noted  earlier  cannot  and  will  not  expand  or  contribute  further  to  any
maintenance of the operations of its HIS subsidiary in Switzerland.

     As of November 30,2000,  the Company's Swiss subsidiary  employed engineers
and contractors  located in Zurich who perform certain product development work.
The Company's  Bulgarian  subsidiary  operates  autonomously  from Sofia.  These
international  operations  subject  Sector  to a  number  of risks  inherent  in
developing  products and services  outside of the United  States,  including the
potential loss of developed  technology,  imposition of  governmental  controls,
export license requirements,  restrictions on the export of critical technology,
political and economic instability, trade restrictions, difficulties in managing
international operations and lower levels of intellectual property protection.

                                       21
<PAGE>


     Sector's  international  business  will also involve a number of additional
risks, including lack of acceptance of localized products,  cultural differences
in the conduct of business,  longer accounts receivable payment cycles,  greater
difficulty in accounts receivable  collection,  seasonality due to the slow-down
in European business activity during Sector's second fiscal quarter,  unexpected
changes in  regulatory  requirements  and  royalty  and  withholding  taxes that
restrict the repatriation of earnings, tariffs and other trade barriers, and the
burden of complying with a wide variety of foreign laws. Sector's  international
sales will be generated primarily through its international distributors and are
expected  to be  denominated  in  local  currency,  creating  a risk of  foreign
currency  translation  gains and losses.  To the extent  profit is  generated or
losses are incurred in foreign countries, Sector's effective income tax rate may
be materially and adversely affected. In some markets,  localization of Sector's
products  is  essential  to  achieve  market   penetration.   Sector  may  incur
substantial  costs and experience  delays in localizing its products,  and there
can be no assurance  that any localized  product will ever generate  significant
revenue. There can be no assurance that any of the factors described herein will
not have a material  adverse effect on Sector's future  international  sales and
operations  and,  consequently,  its business,  operating  results and financial
condition.

     Sector's  future  financial  performance  will  depend in large part on the
growth of its job exposition business as well as its ability to expand the scope
of its business activities globally.  As a result of competition,  technological
change or other  factors,  Sector's  business,  operating  results and financial
condition could be materially and adversely affected.

     Rapid   Technological   Change  and   Requirement   for  Frequent   Product
Transitions.  The market for Sector's products and services are characterized by
rapid technological developments,  evolving industry standards and rapid changes
in  customer   requirements.   The   introduction  of  products   embodying  new
technologies,  the  emergence of new  industry  standards or changes in customer
requirements  could render Sector's  existing  products or services obsolete and
unmarketable.  As a result, Sector's future success will depend upon its ability
to continue  to enhance  existing  products  and  services,  respond to changing
customer  requirements  and  develop  and  introduce,  in a timely  manner,  new
products  and  services  that  keep  pace with  technological  developments  and
emerging industry standards. There can be no assurance that Sector's products or
services will achieve market acceptance, or will adequately address the changing
needs of the  marketplace  or that Sector will be successful  in developing  and
marketing  enhancements  to its existing or new products or services on a timely
basis.  Sector  has in the past  experienced  delays in the  development  of its
services and there can be no assurance that Sector will not  experience  further
delays in  connection  with its  current  service  offerings  or future  service
development  activities.  If  Sector  is unable to  develop  and  introduce  new
products or services,  or  enhancements to existing  products or services,  in a
timely   manner  in  response  to  changing   market   conditions   or  customer
requirements,  Sector's business, operating results and financial condition will
be materially  and adversely  affected.  Because  Sector has limited  resources,
Sector must  restrict its  business  development  efforts to a relatively  small
number of products and  services.  There can be no assurance  that these efforts
will be  successful  or,  even if  successful,  that any  resulting  products or
services will achieve market acceptance.

                                       22
<PAGE>

     Sector may also be subject to additional competition due to the development
of new  technologies  and increased  availability of domestic and  international
transmission  capacity.  For example, even though fiber-optic networks,  such as
that of  Sector,  are now  widely  used for voice and data  transmission,  it is
possible that the  desirability of such networks could be adversely  affected by
changing  technology.  The  telecommunications  industry is in a period of rapid
technological  evolution,  marked by the introduction of new product and service
offerings and  increasing  satellite and fiber optic  transmission  capacity for
services  similar to those  provided by Sector.  Sector cannot  predict which of
many possible future product and service offerings will be important to maintain
its competitive  position or what  expenditures  will be required to develop and
provide such products and services.

     Dependence  on  Proprietary  Technology;  Risks of  Infringement.  Sector's
success depends in part upon its proprietary  technology.  Sector will rely on a
combination  of  copyright,  trademark  and trade secret  laws,  confidentiality
procedures and licensing  arrangements  to establish and protect its proprietary
rights.  Sector does not have any patents  material to its  business  and has no
patent  applications filed. As part of its  confidentiality  procedures,  Sector
will  generally  enter  into  non-disclosure   agreements  with  its  employees,
distributors and corporate partners,  and license agreements with respect to its
software,   documentation  and  other  proprietary  information.  Despite  these
precautions,  it may be possible for a third party to copy or  otherwise  obtain
and use Sector's  products or technology  without  authorization,  or to develop
similar technology independently. Policing unauthorized use of Sector's products
is  difficult  and although  Sector is unable to  determine  the extent to which
piracy of its software products exists,  software piracy can be expected to be a
persistent  problem.  Sector will make source code  available for certain of its
products and the  provision of such source code may increase the  likelihood  of
misappropriation or other misuses of Sector's intellectual  property. In selling
its products,  Sector will also rely in part on "shrink wrap"  licenses that are
not signed by licensees and,  therefore,  may be unenforceable under the laws of
certain  jurisdictions.   In  addition,  effective  protection  of  intellectual
property  rights is unavailable or limited in certain foreign  countries.  There
can be no assurance that Sector's protection of its proprietary rights including
any patent that may be issued,  will be adequate  or that  Sector's  competitors
will not independently  develop similar technology,  duplicate Sector's products
or design  around any patents  issued to Sector or other  intellectual  property
rights.

     Sector is not aware  that any of its  products  infringes  the  proprietary
rights of third parties. There can be no assurance,  however, that third parties
will not claim such  infringement  by Sector  with  respect to current or future
products.  Sector expects that software product  developers will increasingly be
subject to such claims as the number of  products  and  competitors  in Sector's
industry segment grows and the functionality of products in the industry segment
overlaps.  Any such  claims,  with or  without  merit,  could  result  in costly
litigation that could absorb  significant  management  time,  which could have a
material adverse effect on Sector's  business,  operating  results and financial
condition.  Such claims  might  require  Sector to enter into royalty or license
agreements.  Such  royalty  or  license  agreements,  if  required,  may  not be
available  on terms  acceptable  to Sector  or at all.  If such  agreements  are
entered into they could have a material  adverse effect upon Sector's  business,
operating results and financial condition.

                                       23
<PAGE>

                          PART II - OTHER INFORMATION

ITEM 1 - Legal Proceedings

There were no  material  developments  in the  Company's  prior  reported  legal
proceedings during the quarter.


ITEM 2 - Changes In Securities

The Company did not issue any stock certificates during the quarter.

The Company  received a demand for  adjustment of amount of shares due under its
Regulation  S  subscription;   the  agreement   provided  for  a  reset  of  the
subscription  share price in the event the trading price of the Company's  stock
fell  below  $0.15  for  ten  consecutive  trading  days;  in  such  event,  the
subscription  share  price was to be reset to $0.10 per share,  with  additional
shares issued to reflect such adjustment. Although the Company did not issue the
required  certificates during the quarter, it included the necessary adjustments
in its financial  statements.  At the end of the quarter, the Company recognized
an  obligation  to issue  4,000,000  shares of its  common  stock  for  $400,000
received under the Regulation S subscription.


ITEM 5 - Other Information

On September 1, 2000, the Board of Directors approved compensation in the amount
of $60,000 for each of three directors who actively  participated in development
of the Company's  plan for  development  of the job  recruitment  and exposition
business. The compensation may be taken as cash or common stock restricted under
Rule 144, as the Company's  financial  condition may permit. The conversion,  if
any,  shall be  calculated  using a thirty  percent  discount from the three-day
average  closing price for the Company's  common stock, as calculated for day of
demand of conversion and the two days prior; the Company will consider September
1, 2000, the tacking date for any conversion.

On October 30,  2000,  the  Company  formed  three  subsidiary  corporations  in
California: Sector Development, Inc., Sector Ventures, Inc. and Tech Recruitment
Conferences. Sector Development, Inc. filed a fictitious business name statement
and currently operates as "Global Tech Expos."

On November 2, 2000, the Company announced the resignation of Theodore Georgelas
in a Form 8-K filing. Mr. Georgelas'  resignation  includes resignation from all
officer and director positions within the Company and its subsidiaries.

On November  14,  2000,  two Form 8-K filings  were  erroneously  made under the
Company's  name; said filings have been removed from the Securities and Exchange
Commission's EDGAR system but may remain on certain Internet bulletin boards and
other Edgar filing dissemination services.

                                       24
<PAGE>

In January,  2001,  the Company's  Chairman  accepted the  resignation  of James
Zelloe from all officer and  director  positions,  which  allowed the Company to
centralize management within its Los Angeles offices. In accordance with Company
policy,  any resignation from the Company  includes  resignation from all of the
Company's subsidiaries and vice-versa,  as applicable.  Duties formerly assigned
to or  undertaken by Mr. Zelloe will be assumed by others as provided for in the
Company's bylaws or at the discretion of the Company's Chairman.


ITEM 6 - Exhibits and reports on Form 8-K

     (a) Exhibit Index

      No.  Description
      --   -----------
      27   Financial Data Schedule


     (b) Reports on Form 8-K

     November 2, 2000 (Item 5)
     -------------------------
     On October 30,  2000 the Board of  Directors  of  Registrant  accepted  the
resignation of Theodore  Georgelas as president and director of the Company.  On
the same date, the Board of Directors appointed the Company's Chairman,  Mohamed
Hadid, to act as interim President and Chief Executive  Officer.  Marilyn Foster
was appointed Secretary of Registrant, following the resignation by James Zelloe
of that  office.  Mr.  Zelloe  continues  to serve as  treasurer  and  director.
Registrant  has moved its principal  executive  offices to Los Angeles,  to 1801
Century  Park  East,  23rd  Floor,   Los  Angeles,   California   90067,   phone
310-772-0715.

     November 6, 2000 (Item 5)
     -------------------------
     The  Company  earlier   determined  that  entry  into  job  exposition  and
recruitment conference businesses would complement its  telecommunications  base
and yield new revenue  streams.  The Company  framed a plan for entry into these
markets and sought acquisition of companies which commanded a significant market
presence;  as a result, the Company entered into a letter of  intent/preliminary
acquisition  agreement (the  "Agreement"),  announced on August 29, 2000,  which
allowed  the  Company  to  conduct  due   diligence   regarding   its  potential
acquisitions of Workseek.com and American Recruitment  Conferences Inc., private
California  corporations,  and Sunburst Acquisitions III Inc., a Colorado public
corporation.  While the Company continues its interest in the job exposition and
recruitment conference businesses,  it was not satisfied with the results of its
due diligence inquiries and determined it is not in the Company's best interests
to proceed with the transactions contemplated by the Agreement.

     November 11, 2000 (Item 9 - FD Disclosure)
     ------------------------------------------
     On November 8, 2000, Sector Development, Inc., a wholly-owned subsidiary of
Registrant,   entered  into  a  joint  marketing   agreement  with  Talk  Visual
Corporation,  a public  corporation based in Miami,  Florida (OTCBB:  TVCP), for
purchase and sale of its TV225 videocall telephones.

     November 14, 2000 - erroneous filings
     -------------------------------------

                                       25
<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.


                                        SECTOR COMMUNICATIONS, INC.
                                            (Registrant)


Dated: January 15, 2001             By  /s/ Mohamed Hadid
                                        --------------------------
                                        Chairman, Acting President & Director






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