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: May 31, 2001

                        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 Floor, Los Angeles, CA 90067
            ---------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (310) 772-0017
                                 --------------
              (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 July 17, 2001: 63,731,943





<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 of Consolidated Financial Statements (Unaudited).....7

            Item 2.  Managements Discussion and Analysis of Financial
                      Condition and Results of Operations..................10

   PART II  OTHER INFORMATION

            Item 6.  Exhibits and Reports on Form 8-K......................19

            Signature Page.................................................20







                                        1


<PAGE>

PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements

<TABLE>
<CAPTION>
                           SECTOR COMMUNICATIONS, INC.
                           CONSOLIDATED BALANCE SHEET




                                                                  May 31,       February 28,
                                                                   2001             2001
                                                             -------------      -------------
                                                              (Unaudited)
<S>                                                          <C>                <C>
       ASSETS
CURRENT ASSETS
    Cash and cash equivalents                                $      63,168      $      83,511
    Accounts receivable, net of provision for
     doubtful accounts of $17,889 and $17,778                      112,877            186,642
    Prepaid expenses                                                96,489            110,456
                                                             -------------      -------------
       Total current assets                                        272,534            380,609

Property and equipment, net                                        167,688            197,676

Deposits                                                            31,025             33,003
                                                             -------------      -------------

       TOTAL ASSETS                                          $     471,247      $     611,288
                                                              ============      ==============
</TABLE>





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

                                        2
<PAGE>

<TABLE>
<CAPTION>

                           SECTOR COMMUNICATIONS, INC.
                           CONSOLIDATED BALANCE SHEET (Continued)


                                                                  May 31,       February 28,
                                                                   2001             2001
                                                             -------------      -------------
                                                              (Unaudited)
<S>                                                         <C>                 <C>
       LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
    Cash overdraft                                          $       39,212      $           -
    Accounts payable and accrued expenses                        1,469,323          1,494,770
    Debentures payable                                             263,952            263,952
    Deferred revenue                                               134,740            197,715
    Customer deposits                                               70,992            199,945
    Due to related parties                                         153,733            159,943
                                                             -------------      -------------
       Total current liabilities                                 2,131,952          2,316,325

Rent deposit                                                        12,248             12,248
                                                             -------------      -------------

       TOTAL LIABILITIES                                         2,144,200          2,328,573
                                                             -------------      -------------

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 29,931,943 shares issued and outstanding            29,932             29,932
    Additional paid-in capital                                  16,662,187         16,493,404
    Common stock subscribed                                        947,500            621,500
    Accumulated deficit                                        (19,037,218)       (18,565,601)
    Cumulative foreign currency translation adjustment         (   275,354)       (   296,520)
                                                             -------------      -------------
       Total stockholders' deficit                             ( 1,672,953)       ( 1,717,285)
                                                             -------------      -------------
       TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT           $     471,247      $     611,288
                                                             =============      =============
</TABLE>




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

                                        3


<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                       FOR THE THREE MONTHS ENDED MAY 31,

                                                       2001            2000
                                                  -------------    -----------
REVENUE                                            (Unaudited)      (Unaudited)

    Exposition revenue                            $     296,103    $         -
    Telecommunication revenue                            77,958        135,249
    Software sales & maintenance                         71,636         93,334
                                                  -------------    -----------
                                                        445,697        228,583
                                                  -------------    -----------

Cost of sales
    Exposition                                          114,448              -
    Telecommunications                                   46,393         64,386
                                                  -------------    -----------
                                                        160,841         64,386
                                                  -------------    -----------
GROSS PROFIT                                            284,856        164,197
                                                  -------------    -----------

OPERATING EXPENSES
    Software development costs                            1,747          8,009
    Sales, general & administrative                     580,959        240,829
                                                  -------------    -----------
       Total operating expenses                         582,706        248,838
                                                  -------------    -----------

Loss from operations                                (   297,850)     (  84,641)

OTHER INCOME (EXPENSE)
    Interest expense                                (     5,279)     (   5,279)
    Financing cost                                  (   168,783)             -
    Other income (expense)                                  295      (     155)
                                                  -------------    -----------
Loss before provision for income taxes              (   471,617)     (  90,075)

Provision for income taxes                                    -              -
                                                  -------------    -----------

Net loss                                          $ (   471,617)   $ (  90,075)
                                                  =============    ===========

Net loss per share                                $ (      0.02)   $ (    0.01)
                                                  =============    ===========

Weighted average common shares outstanding           29,931,943     17,193,805


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

                                        4

<PAGE>
                           SECTOR COMMUNICATIONS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                       FOR THE THREE MONTHS ENDED MAY 31,

                                                       2001            2000
                                                  -------------    ------------
                                                   (Unaudited)      (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss                                      $   (471,617)    $  (  90,075)
    Adjustments to reconcile net loss to net
     Cash provided by operating activities:
       Depreciation and amortization                    29,006           23,249
       Financing cost                                  168,783                -
       Change in assets and liabilities:
           Decrease in assets
              Accounts receivable                       73,765           87,229
              Prepaid expenses and deposits             15,945           12,322
           Decrease in liabilities
              Accounts payable                       (  25,447)       (  11,259)
              Customer deposits                       (128,953)               -
              Related party payable                  (   6,210)       (  12,743)
              Deferred revenue                       (  62,975)       (  17,161)
                                                  -------------    ------------
Net cash used by operating activities                 (407,703)       (   8,438)
                                                  -------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of fixed assets                         (   1,223)       (  24,386)
                                                  -------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Cash overdraft                                      39,212                -
    Common stock subscribed                            326,000                -
                                                  -------------    ------------
Net cash provided by financing activities              365,212                -
                                                  -------------    ------------

Effect of exchange rate changes on cash                 23,371       (      218)
                                                  -------------    ------------

Net decrease in cash                                 (  20,343)      (   33,042)
Cash - March 1,                                         83,511          170,607
                                                  -------------    ------------

Cash - May 31,                                    $     63,168     $    137,565
                                                  =============    ============

SUPPLEMENTAL CASH FLOWS INFORMATION:
   Cash paid for:
     Interest                                     $          -     $          -
                                                  =============    ============
     Taxes                                        $          -     $          -
                                                  =============    ============

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

                                        5
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE THREE MONTHS ENDED MAY 31, 2000 AND 1999




SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCIAL ACTIVITIES:

    Period ended May 31, 2000:

    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 CONSOLIDATED FINANCIAL STATEMENTS
                              MAY 31, 2001 AND 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          Interim Financial Information
          -----------------------------
          The  accompanying  unaudited  interim  financial  statements have been
          prepared  by  the  Company,  in  accordance  with  generally  accepted
          accounting principles pursuant to Regulation S-B of the Securities and
          Exchanges  Commission.  Certain  information and footnote  disclosures
          normally  included  in  audited  financial   statements   prepared  in
          accordance  with generally  accepted  accounting  principles have been
          condensed or omitted. Accordingly,  these interim financial statements
          should be read in conjunction with the Company's financial  statements
          and  related  notes as  contained  in Form  10-KSB  for the year ended
          February 28, 2001. In the opinion of management, the interim financial
          statements   reflect  all  adjustments,   including  normal  recurring
          adjustments,  necessary for fair  presentation  of the interim periods
          presented.  The results of  operations  for the three months ended May
          31, 2001 are not necessarily indicative of results of operations to be
          expected for the full year.

NOTE 2 - STOCKHOLDERS' EQUITY

          As of February 28,2001,  the Company had received advances aggregating
          $621,500 pursuant to a financing  agreement which are convertible into
          common stock. The advances are convertible at a discount to the market
          price of the stock. At February 28, 2001, a financing cost of $210,052
          attributable to the beneficial  conversion  feature had been recorded.
          During  the period  ended May 31,  2001,  an  additional  $326,000  of
          advances were received pursuant to the agreement with a financing cost
          of  $168,783.  During  June,  2001,  the  $947,500  in  advances  were
          converted into 31,945,026 shares of common stock.

          During the period ended May 31,  2000,  the Company  issued  2,425,000
          shares of common stock in settlement of accounts  payable  aggregating
          $97,000.

NOTE 3 - GOING CONCERN

          The accompanying  consolidated financial statements have been prepared
          assuming the Company will continue as a going  concern.  As of May 31,
          2001, the Company has a working  capital  deficit of $1,859,418 and an
          accumulated  deficit of $19,037,218.  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.



                                       7
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              MAY 31, 2001 AND 2000

NOTE 4 - 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.

     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.

NOTE 5 - SUBSEQUENT EVENTS

          During  June 2001,  the  Company  received  an  additional  $55,000 in
          advances pursuant to the financing  agreement described in Note 2. The
          aggregate advances of $1,002,500 were converted into 33,800,000 shares
          of common stock in June, 2001.

NOTE 6 - SEGMENT INFORMATION

          The  Company's  foreign  operations  are  conducted by Global,  Sector
          Bulgaria and Ideous.
                                                             May 31,
                                                    2001               2000
                                              ------------       -------------
           Revenues from external customers:
             Expositions                      $    296,103       $           -
             Telecommunications                     77,958             135,249
             Software                               71,636              93,334
                                              ------------       -------------
                                              $    445,697       $     228,583
                                              ============       =============
           Interest expense:
             Corporate                        $      5,279       $       5,279
                                              ============       =============
           Depreciation and amortization:
             Expositions                      $        882       $           -
             Telecommunications                     22,417              20,124
             Software                                5,707               3,125
                                              ------------       -------------
                                              $     29,006       $      23,249
                                              ============       =============

                                        8
<PAGE>

                           SECTOR COMMUNICATIONS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              MAY 31, 2001 AND 2000

NOTE 4 - SEGMENT INFORMATION (Continued)
                                                             May 31,
                                              --------------------------------
                                                    2001               2000
                                              ------------       -------------
           Segment loss before taxes:
             Expositions                      $   (434,333)      $           -
             Telecommunications                  (  11,224)          (   7,033)
             Software                            (  26,060)          (  37,763)
             Corporate                                   -           (  45,279)
                                              --------------      --------------
                                              $   (471,617)      $   (  90,075)
                                              ============       =============
           Segment assets:
             Expositions                      $     64,027       $           -
             Telecommunications                    277,029             347,124
             Software                              130,191             313,998
             Corporate                                   -              44,874
                                              ------------       -------------
                                              $    471,247             705,996
                                              ============       =============
           Expenditure for segment assets:
             Telecommunications               $          -       $      24,386
             Software                                1,223                   -
                                              ------------       -------------
                                              $      1,223       $      24,386
                                              ============       =============

          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.

                                                             May 31,
                                              --------------------------------
                                                    2001               2000
                                              ------------       -------------
           Revenues from external customers:
             United States                    $    296,103       $           -
             Switzerland                            71,636              93,334
             Bulgaria                               77,958             135,249
                                              ------------       -------------
                                              $    445,697       $     228,583
                                               ===========       =============
           Segment assets:
             Switzerland                      $    130,191       $     313,998
             Bulgaria                              277,029             347,124
             United States                          64,027              44,874
                                              ------------       -------------
                                              $    471,247       $     705,996
                                              ============       =============

                                       9
<PAGE>

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

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 or its subsidiaries;  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.


COMPANY OVERVIEW

Sector is a Nevada corporation which acts principally as a holding company, with
the intent of  acquiring,  holding and  developing  businesses  to  collectively
generate  a net  profit  for its  shareholders.  Presently,  Sector  owns  three
principal operating  subsidiaries:  Sector PLC, a registered company in Bulgaria
which  provides   telecommunications   services   ("Sector   PLC"),   HIS/Ideous
Technologies   ("Ideous"),   a  Swiss   corporation   which  provides   software
development,  products and support,  and Sector Development,  Inc., a California
corporation  which does business as Global Tech Expos  ("Global Tech" or "Global
Tech Expos") and produces expositions for the job recruitment industries. Sector
also owns certain inactive corporations which it is holding for future use.

GENERAL ACTIVITIES

Sector's   recent   activities  have  centered  on  development  of  its  newest
subsidiary, Global Tech Expos, and its penetration of job recruitment markets in
California's  Silicon Valley,  which is the undisputed center of high-technology
in America.  To that end,  Global Tech held three  successful  expositions.  The
first  exposition  focused  entirely  on  high-tech  jobs  and use of  videocall
technology for international  recruitment while the second exposition was opened
to a broad range of employment  opportunities,  such as those existing in retail
sales.  The third  exposition,  held  during  the second  quarter,  successfully
combined a daytime career  exposition with a nighttime themed  networking event.
Global  Tech  Expos  is  continuing  to  develop  concepts  for  innovative  job
expositions  with  an eye  toward  gaining  a  significant  market-share  in the
shortest possible time given economic and other factors.

While  culturing  its newest  subsidiary,  the  Company  sourced  and  evaluated
potential  acquisitions,  and presently continues those activities with a desire
to develop opportunities within the United States.

                                       10
<PAGE>

Previously,  Sector concentrated its activities in foreign,  emerging and growth
markets, such as those in Bulgaria and Switzerland. Sector's present focus is on
consolidation  of current  foreign  operations and  development of its principal
United States subsidiary.


RESULTS OF OPERATIONS

     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 hotels and resorts in Sofia,  Bulgaria;
(ii)  from  the   sales,   integration,   installation,   and   maintenance   of
customer-owned  digital  and  cellular  phone  systems  (primarily  through  its
distributor  agreement with Mitel);  and (iii) from  usage-based  percentages of
Sector  PLC-owned phone systems  through shared revenue  agreements with some of
its customers.

     Sector's  telecommunications  revenue  decreased  by  $57,291 or 42.3% from
$135,249  for the three  months  ended on May 31,  2000 to $77,958  for the same
period ended May 31, 2001.  Management  believes the decrease in revenue was the
result of a decrease in Sector PLC's  customer base,  which has been  diminished
principally through competitive actions by the BTC. The BTC earlier attempted to
disconnect   Sector  PLC's  service  lines  but  legal  efforts  have  thus  far
forestalled such action.  Management expects its  telecommunications  revenue to
remain  constant  during the upcoming  quarter,  provided Sector PLC retains its
current customer base and level of activity.

     Software Sales and  Maintenance - Sector's  software sales and  maintenance
revenue decreased by $21,698 or 23.2% from $93,334 for the three months ended on
May 31, 2000 to $71,636 for the same period  ended May 31, 2001 (all figures are
net of payments to third party  distributors).  Management believes the decrease
in sales for the three months  ending May 31, 2001  resulted  from a decrease in
the  average  size of each  sale and the  diminished  marketing  efforts  of the
Company.  The Company  continues to be affected by the lack of capital available
to HIS/Ideous 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.  Management  expects its software
sales revenue to remain constant during the upcoming quarter.

     Exposition  Revenue - Global  Tech Expos held its first job  exposition  on
March 20-21,  2001,  just after an unexpected  decline in job markets and during
the continued downturn of the nation's economy.  Global Tech's second exposition
was held on May 29, 2001,  also as companies were slashing  their  workforces by
the  thousands  and setting new records for  corporate  layoffs.  Despite  these
factors,  Global Tech's events generated revenues of $296,103 during the quarter
and experienced  client to candidate  attendance rations which were unparalleled
in the industry.  The Company's first event established it as a leading presence
in  job  recruitment   expositions  and  attracted  Monster.com  and  others  to
participate in subsequent events. As a result of the economic downturn, however,
Global Tech is expected to act in a conservative fashion,  limiting the size and
scope of future events to achieve  profitability at the earliest  possible time.
The Company is presently unable to estimate any change in exposition revenues.

                                       11
<PAGE>

     Costs of Sales - The Cost of Sales of Sector  PLC  decreased  by $17,993 or
27.9% from $64,386 for the three months ended on May 31, 2000 to $46,393 for the
same period ended May 31, 2001.  Most of the  decrease was  attributable  to the
decrease in costs  associated  with payments due to the BTC  resulting  from the
lower revenues and to reduced depreciation charges of fixed assets.  Global Tech
Expos  incurred  costs of sales for its  expositions  totaling  $114,448 for the
quarter ended May 31, 2001, which included arena expenses of $41,000, convention
expenses of $34,114,  catering expenses totaling $21,972,  and booth expenses of
$17,362. Management presently estimates that costs of sales will remain constant
or increase  proportionally  with the level of the  Company's  activity,  but is
unable to estimate the level of such potential change.

     Software Development Costs - Software development costs consisted primarily
of  salaries,  related  benefits,  consultants  fees and other  costs.  Sector's
software  development  costs  decreased  by $6,262 or 78.1% from  $8,009 for the
three  months  ended on May 31, 2000 to $1,747 for the same period ended May 31,
2001. The decrease was attributable the lack of capital  available to HIS/Ideous
to fund a higher level of software development costs.

     Operating Expenses - Operating  expenses  consisted  primarily of personnel
costs,   including  salaries,   benefits  and  bonuses  and  related  costs  for
management,  finance  and  accounting,  legal and other  professional  services.
Operating expenses of Sector (exclusive of software development costs) increased
by $340,130 or 141.2% from  $240,829  for the three months ended on May 31, 2000
to $580,959 for the same period  ended May 31,  2001.  The increase in operating
expenses  was  derived in  significant  part from  startup of Global Tech Expos,
which posted payroll and tax expenses of $207,336,  advertising  and promotional
expenses of  $126,499,  professional  expenses of $27,007 and  incurred  rent of
$33,743 during the quarter ended May 31, 2001.  Operating expenses attributed to
Sector PLC included wages of $21,144, bad debt expense of $12,118, and $9,743 of
rent expense; operating expenses attributed to Ideous included salary expense of
$46,597  and rent  expense of $8,431  during the quarter  ended March 31,  2001.
Operating expenses are expected to continue at their current levels.

     Administrative  Costs and Other Costs- Management expects that Sector PLC's
general and administrative costs, not taking into consideration any expansion of
the current network, to remain at current levels.

     Management  expects  Sector's  total  general  and  administrative   costs,
exclusive  of any  addition of new  employees,  to remain at or below the levels
experienced in the three months ended on May 31, 2001.

     Interest  Expense - Interest  expense for the three month period ending May
31, 2001  remained  constant at $5,279,  the same amount  incurred for the first
quarter of year 2000. 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.

                                       12
<PAGE>

         Financing  Costs - Sector  incurred  financing costs of $168,573 during
the three  months  ended May 31,  2001.  The  financing  expense  resulted  from
conversion of advances taken pursuant to financing agreements which provided for
conversion  to the  Company's  stock at a thirty  percent  discount.  Management
expects that financing expense could increase in the future to the degree Sector
continues  to take funds  under  convertible  instruments  while its stock price
remains depressed.


LIQUIDITY AND CAPITAL RESOURCES

     During the  quarter  ending May 31,  2001,  the Company  financed  Sector's
operations   primarily  through  sales  revenue  generated  from  the  Company's
subsidiaries and through advances taken pursuant to financing agreements.

     Sector has in the past and is  currently  experiencing  negative  cash flow
from operations. The funding of 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 nor 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 Common Stock on the NASDAQ Small Cap Market
has occurred. Sector is currently listed on the NASDAQ 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 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.

                                       13
<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 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 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.

                                       14
<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.

Competition  In  Exposition  Markets.  Job  recruitment  markets are served by a
wealth of competitors and the Company expects that competition will intensify in
the future. In the high-tech market where the Global Tech Expos presently offers
services,  there  are  several  competitors  enjoying  a  more  dominant  market
position;  these  companies  typically  have  select  agreements  with key media
publishers,  television  stations,  or exposition  centers.  A continuing  trend
toward  business   alliances  and   acquisitions  by  Global  Tech's   principal
competitors could have a negative impact upon the Company. Many of the Company's
existing and potential competitors have financial, personnel and other resources
significantly  greater than those of the Company.  Other  potential  competitors
include  Internet  companies  and  private  networks of human  resource  service
providers.

Dependence Upon Major Customers.

Sector  PLC:  Sector  PLC has three  principal  clients  it relies  upon for its
revenue.  As competition  increases and other companies act to lure Sector PLC's
clients away with equipment upgrades, pricing, or other incentives, there can be
no  guarantee  that  Sector  PLC will be able to  compete  or  retain  its major
customers.

Global Tech Expos: Global Tech has a core group of "marquee" clients it believes
attract attendees and other exhibitors to its expositions. While not principally
dependent upon such customers, loss thereof could be expected to have a negative
impact upon the Company.  Competitors  can be expected to approach Global Tech's
present  customers to lure them away from its events.  Because other competitors
have greater  financial  resources than Global Tech, it may be unable to compete
with the financial or other incentives offered by its competitors.

                                       15
<PAGE>

     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 the prior year.  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/Ideous  subsidiary in Switzerland or to
provide or source capital for Sector PLC in Bulgaria.

     As of May 31, 2001, 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.

     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, its telecommunications  service business,
and its  ability to acquire or  develop  additional  businesses.  As a result of
competition, technological change or other factors, Sector's business, operating
results and financial condition may be materially and adversely affected.

                                       16
<PAGE>

     Rapid   Technological   Change  and   Requirement   for  Frequent   Product
Transitions.  The market for Sector's  products and services is 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 and services obsolete and
unmarketable.  As a result, Sector's future success will depend upon its ability
to continue to enhance  existing  products and services,  to 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 products or new products or services on a
timely basis.  Sector has in the past  experienced  delays in the development of
its  telecommunications  services and there can be no assurance that Sector will
not experience further delays in connection with its current service offering or
future  service  development  activities.  If Sector is  unable to  develop  and
introduce new products and/or  services,  or  enhancements to existing  products
and/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.

     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  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


                                       17
<PAGE>

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.


Trademarks,  Licenses, Royalty Agreements and Labor Contracts. Global Tech Expos
has acquired certain trademarks through use and is attending to their protection
through  appropriate  filings,  earlier made. Global Tech is licensed to use the
facilities,   trademarks  and  other  required   intellectual  property  of  the
exposition  centers it contracts with as well as those of its clients,  although
it  principally  uses the latter on in key  advertising  intended to show client
participation  in Global  Tech  events.  Global  Tech Expos has a royalty  share
agreement  with  Knight-Ridder  publications  which  requires  the  inclusion of
multiple  full page  advertisements  in  publications  owned by Knight Ridder in
exchange for a royalty  share  derived from expo booth sales;  the  agreement is
intended to cover all events scheduled for calendar year 2001. Two key personnel
operate under  agreements  which ensure their  continued  performance for Global
Tech for a six month period which commenced during November, 2000; the agreement
provides for four (4) subsequent  six month renewals at the Company's  election.
If any of the  foregoing  agreements  are not  performed  or are breached in any
manner,  the result could  materially and adversely  effect  Sector's  business,
operating results and financial condition.

Effect Of Existing Or Probable Regulation On Business. The Company is aware that
there have been  proposals for either  regulation or taxation of the Internet or
business activities on the Internet.  There is the risk of uncertainty regarding
such proposed  future  Internet  regulation,  which could  adversely  affect the
Company's  business.  Any risks  associated  with  regulation or taxation of the
Internet would, in the Company's opinion, be passed along to its clients through
increased costs, but  notwithstanding  this anticipated  pass-through can have a
material adverse effect upon Sector's business,  operating results and financial
condition.

                                       18
<PAGE>


                          PART II - OTHER INFORMATION

ITEM 1 - Changes In Securities

No securities  were issued during the first  quarter.  Subsequent to the quarter
and through the period ending June 22, 2001,  the Company  issued  securities as
disclosed in its 10KSB filing for the year ending February 28, 2001.

On June 29, 2001, certificates  representing  3,500,000  shares of the Company's
common stock,  restricted under Rule 144, were issued to four  individuals.  The
common stock issued  represented  conversion  of $104,000 of financing  received
through the period ending June 21, 2001.

ITEM 2 - LEGAL PROCEEDINGS.

The Company is not  subject to any legal  proceedings  other than as  previously
disclosed.  There were no material  developments in the Company's prior reported
legal proceedings during the quarter.

ITEM 5 - OTHER INFORMATION.

On June 20, 2001, the Company announced entry into a definitive letter of intent
to acquire certain  intellectual  and other property of a Montreal firm known as
Entervision.  Entervision's  products  include a software  package  which allows
users to watch  television and listen to the radio on the Internet in real time.
The Company is presently  negotiating  with Dr.  Herbert  Becker,  Entervision's
developer  and senior  executive,  to  finalize  arrangements  for  transfer  of
Entervision's  products to Sector and for their  integration into a new business
plan for the  Company.  The  Company  expects  Dr.  Becker  to  become a part of
Sector's  management  team following  successful  completion of the  Entervision
acquisitions.

On May 3, 2001,  Sector  Development,  Inc.  filed a  fictitious  business  name
statement   to   additionally   do  business  as  "Global   Career   Expos"  and
"GlobalCareerExpos.com".  Proof of publication  of the fictitious  business name
statement was recorded by the Los Angeles County  Registrar-Recorder on June 14,
2001.  Sector  Development,  Inc.  intends  to use  "Global  Career  Expos"  for
activities  which are not  principally  focused on the high-tech job recruitment
market,   such  as  those   involving   recruitment   of   retail   salespeople,
administrative and other office support staff.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

None


                                       19
<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)



                                   By       /s/ Mohamed Hadid
                                        --------------------------
                                           Chairman and Acting President
Date: July 20,2001













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