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

FORM 10-QSB



|[X]   | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES   
|----- | ---------------------------------------------------------------
|      | EXCHANGE ACT OF 1934                                           
|      | For the quarterly period ended December 31, 2005               
|      |                                                                
|OR    |                                                                
|      |                                                                
|[   ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
|      | For the transition period from  _____________  to ___________  

Commission File Number: 000-51727

SYDYS CORPORATION



|NEVADA                                                         | 98-0418961                          
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number)

209 - 2741 East Hastings Street
Vancouver, British Columbia
Canada V5K 1Z8(Address of principal executive offices)

(604) 251-1206(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 preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X]   No [   ]

The Registrant is a Shell company. [   ]

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PART I. - FINANCIAL INFORMATION

ITEM 1.     INTERIM FINANCIAL STATEMENTS.



|Sydys Corporation                                              |                                                          
|-------------------------------------------------------------- | ---------------------------------------------------------
|(A Development Stage Company)                                  | Statement 1                                              
|Interim Balance Sheets                                         |                                                          
|Expressed in US Funds                                          |                                                          
|                                                               |                                                          
|                                                               |                                                          
|                                                               | As at                                                    
|                                                               | December 31,                                             
|                                                               | 2005                                                     
|ASSETS                                                         | (unaudited)                                              
|Current                                                        |                                                          
|                                                               | Cash and cash equivalents                                
|                                                               | Prepaid expenses                                         
|                                                               |                                                          
|                                                               | $                                                        
|                                                               |                                                          
|                                                               |                                                          
|                                                               |                                                          
|                                                               |                                                          
|LIABILITIES                                                    |                                                          
|                                                               |                                                          
|Current                                                        |                                                          
|                                                               | Accounts payable                                         
|                                                               | Accrued liabilities                                      
|                                                               | Due to related party (Note 4)                            
|                                                               |                                                          
|                                                               |                                                          
|                                                               |                                                          
|Going Concern (Note 2)                                         |                                                          
|                                                               |                                                          
|                                                               |                                                          
|                                                               |                                                          
|                                                               |                                                          
|STOCKHOLDERS' EQUITY                                           |                                                          
|                                                               |                                                          
|Capital Stock - Statement 3 (Note 3)                           |                                                          
|                                                               | Authorized:                                              
|                                                               | 100,000,000 common shares with $0.001 par value per share
|                                                               | Issued and outstanding shares:                           
|                                                               | 3,500,000 (2005 - 3,500,000) shares                      
|                                                               | Capital in excess of par value                           
|Deficit Accumulated During the Development Stage - Statement 3 |                                                          
|                                                               |                                                          
|                                                               |                                                          
|                                                               | $                                                        

- See Accompanying Notes -
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|Sydys Corporation                             | Statement 2                        
|--------------------------------------------- | -----------------------------------
|(A Development Stage Company)                 |                                    
|Interim Statements of Operations             
|Expressed in US Funds                         |                                    
|Unaudited                                     |                                    
|                                              |                                    
|                                              | Cumulative                         
|                                              | Amounts                            
|                                              | from                               
|                                              | Inception                          
|                                              | (February 9,                       
|                                              | 2004) to                           
|                                              | December 31,                       
|                                              | 2005                               
|Expenses                                      |                                    
|                                              | Accounting                         
|                                              | Legal fees                         
|                                              | General and administrative expenses
|Loss for the Period                           | $                                  
|                                              |                                    
|                                              |                                    
|                                              |                                    
|                                              |                                    
|Weighted Average Number of Shares Outstanding |                                    
|                                              |                                    
|                                              |                                    
|                                              |                                    
|                                              |                                    
|Loss per Common Share - Basic and Diluted     |                                    
|                                              |                                    















- See Accompanying Notes -
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|Sydys Corporation                          | Statement 3  
|------------------------------------------ | -------------
|(A Development Stage Company)             
|Interim Statements of Stockholders' Equity
|Expressed in US Funds                      |              
|                                           |              
|                                           |              
|                                           |              
|                                           | Common Shares
|                                           | Shares       
|Inception - February 9, 2004               | 300,000      
|Common shares issued for cash              | 1,170,000    
|Loss for the period                        | -            
|Balance - September 30, 2004 (audited)     | 1,470,000    
|Common shares issued for cash              | 2,030,000    
|Loss for the year                          | -            
|Balance - September 30, 2005 (audited)     | 3,500,000    
|Common shares issued for cash              | -            
|Loss for the period                        | -            
|                                           |              
|Balance - December 31, 2005 (unaudited)    | 3,500,000    



















- See Accompanying Notes -
F-3

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|Sydys Corporation                         | Statement 4                                          
|----------------------------------------- | -----------------------------------------------------
|(A Development Stage Company)            
|Interim Statements of Cash Flows         
|Expressed in US Funds                     |                                                      
|Unaudited                                 |                                                      
|                                          |                                                      
|                                          |                                                      
|                                          | Cumulative                                           
|                                          | Amounts                                              
|                                          | from                                                 
|                                          | Inception                                            
|                                          | (February 9,                                         
|                                          | 2004) to                                             
|                                          | December 31,                                         
|Cash Resources Provided By (Used In)      | 2005                                                 
|Operating Activities                      |                                                      
|                                          | Loss for the period                                  
|                                          | Changes in non-cash operating assets and liabilities:
|                                          | Prepaid expenses                                     
|                                          | Accounts payable                                     
|                                          | Accrued liabilities                                  
|                                          |                                                      
|                                          |                                                      
|Financing Activities                      |                                                      
|                                          | Advances from related party                          
|                                          | Issuance of capital stock                            
|                                          |                                                      
|                                          |                                                      
|                                          |                                                      
|Net Increase (Decrease) in Cash and       |                                                      
|Cash Equivalents                          |                                                      
|                                          | Cash and cash equivalents - Beginning of period      
|Cash and Cash Equivalents - End of Period | $                                                    
|                                          |                                                      
|                                          |                                                      
|                                          |                                                      
|Supplemental Cash Flow Disclosure         |                                                      
|                                          | Cash paid for interest                               
|                                          | Cash paid for income taxes                           
|                                          |                                                      







- See Accompanying Notes -
F-4

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|Sydys Corporation                    
|-------------------------------------
|(A Development Stage Company)        
|Notes to Interim Financial Statements
|December 31, 2005                    
|Expressed in US Funds                
|Unaudited                            
|                                     
|                                     
|                                     
|1.                                   
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F-5

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|Sydys Corporation                    
|-------------------------------------
|(A Development Stage Company)        
|Notes to Interim Financial Statements
|December 31, 2005                    
|Expressed in US Funds                
|Unaudited                            
|                                     
|                                     
|                                     
|2.                                   
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|3.                                   
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|4.                                   
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|Sydys Corporation                    
|-------------------------------------
|(A Development Stage Company)        
|Notes to Interim Financial Statements
|December 31, 2005                    
|Expressed in US Funds                
|Unaudited                            
|                                     
|                                     
|                                     
|5.                                   
|                                     
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|6.                                   
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ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS

This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results of our predictions.

We are a start-up stage corporation and have not started operations or generated or realized any revenues from our business operations.

Our auditors have issued, in our last audited financial statements, a going concern opinion. This means that our auditors believe there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any revenues and none are anticipated until we have completed the development of our websites, source out suppliers for products to sell and gather customers to buy our products. We believe the technical aspects of our websites will be developed to use for our operations in January 2006.  Accordingly, we must raise cash from sources other than operations. Our only other source for cash at this time is investments by others in our company. We must raise cash to implement our plan and begin our operations. We raised $51,500 from our public offering. Under this offering we sold 1,030,000 shares at $0.05 per share to 24 shareholders, thus we have a total of 3,500,000 shares issued and outstanding to 43 shareholders (includes the 3 directors of the company). We believe these funds, together with cash flow from operations, will enable us to fund our activities for the next twelve months.  As of December 31, 2005 we have cash on hand of $28,627.

We believe we raised enough money through our public offering to begin operations but we cannot guarantee that we will stay in business after operations have commenced. If we raise the maximum amount, but are unable to generate revenues as expected, we still believe we will be able to meet our cash requirements for the twelve months following the completion of our offering. If we raise the minimum amount and are unable to achieve revenues as expected, we also believe we will be able to meet our cash requirements for the next twelve months. After that, we will need to find alternative sources, like a second public offering, a private placement of securities, or loans from our officers or others in order for us to maintain our operations. At the present time, we have not made any arrangements to raise additional cash.

If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely.

We will not be conducting any product research or development other than the development of AdX and the completion of our websites. We do not expect to purchase or sell plant or significant equipment. Further, we do not expect significant changes in the number of employees.

Our specific goal is to profitably sell online advertisements through our Internet websites to website owners, ad resellers and corporations. We intend to accomplish the foregoing through the following milestones:



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| | 1. | We plan to lease computer equipment required to run software which will manage our advertising system.  The cost of leasing two computer servers to run our advertising system is approximately $1,000 per month from NetNation in Vancouver, Canada.  We anticipate the leasing, configuration and testing phase of the servers to be completed by the end of January 2006.  The delivery of this milestone will be overseen by Christopher Schilling.                                                                                                                                                                                                                                                                                                                                          
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. | As soon as we have secured the lease and configuration of the computer servers, we will install, configure and test the AdX software onto them.  AdX is the name we use for the software that will serve ads and is the open-source technology we are using.   Once AdX is operational on the servers, we can complete the integration and testing phase of the software into our websites.  The milestones necessary over the upcoming months are to configure, test and debug AdX which is expected to be completed by the end of January 2006.  This work will be performed by a private contractor and overseen by Christopher Schilling.  It is anticipated that additional development and refinement of AdX software will continue during the life of our operation as cash flow dictates.
|
| | 3. | Once we have established our web properties online and completed the installation of our AdX software, we will initiate our marketing and advertising campaign.  Firstly we will design and create online advertisements which will promote our services and place these ads on websites where webmasters frequently visit. Advertisements will be created by January15, 2006 by an independent contractor.  We will place these advertisements starting January 30, 2006.  Our marketing and advertising campaign will be ongoing during the life of our operations.  We plan on using pay-per-click advertising as well to help bring in the sales necessary to keep the business operating.                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 4. | In summary, we should be in full operation and receiving orders in the month of January, 2006  We believe that by this time we will be receiving orders and generating revenues. We believe that we will generate sufficient revenues to maintain the business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 5. | Depending on the cash flow we should be able to generate from revenues, we anticipate hiring one customer service representative during the early part of 2006 to handle the day-to-day requirements of customer requests.  We plan to begin interviewing for this position in April 2006.  This task will be overseen by Jason Baybutt.  The expected cost of the position will be $2,500 per month based on the current market rate for the position.                                                                                                                                                                                                                                                                                                                                          

We believe that we will generate sufficient revenues to remain in business during the next twelve months. Our officers base this belief on their work and life experiences, however, there is no assurance that we will in fact be able to accomplish this objective in the foregoing time constraints.

If we cannot generate sufficient revenues to continue operations, we will suspend or cease operations. If we cease operations, we do not know what we will do and we do not have any plans to do anything.

Limited Operating History; Need for Additional Capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are in the start-up stage of operations and have not generated any revenues. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

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Results of Operations

From Inception on February 9, 2004 to December 31, 2005

During the period, we incorporated the company hired an attorney and an auditor in relation to the preparation of our registration statement. We created three Internet websites with the domain names www.trafficaces.com, www.targetedads.net, and www.sydys.com. Our loss since inception is ($56,357) of which $50,255 is for legal and audit fees in connection with this offering. $6,102 is for general office costs. We have not started our proposed business operations.  We expect to begin operations 120 days after we complete our public offering.

Liquidity and capital resources

As of the date of this report, we have generated $250 of revenues in January 2006 from our business operations.

We issued 300,000 shares of common stock to Jason Baybutt on March 3, 2004; 700,000 shares to Christopher Schilling on October 12, 2004; and 300,000 shares to Byron O'Brien on October 12, 2004, under the exemption from registration contained in Regulation S of the Securities Act of 1933.  These were accounted for as a sale of common stock.

We also issued an additional 1,170,000 shares of common stock to 16 persons under the exemption from registration contained in Regulation S of the Securities Act of 1933.  This was accounted for as a sale of common stock.

We also issued 1,030,000 shares of common stock from our public offering to 24 persons.

As of December 31, 2005, our total assets were $28,976 in cash and cash equivalents and prepaids and our total liabilities were $9,133 comprised of accounts payable, accrued liabilities and shareholder loan.

Application of Critical Accounting Policies

Our financial statements have been prepared on a going concern basis. We have an accumulated deficit of $56,357 from inception to December 31, 2005. Our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. The outcome of these matters cannot be predicted with any certainty at this time. We have historically satisfied our working capital needs primarily by sales of securities and at December 31, 2005, we had a working capital of $19,843. These financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern.







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Use of Estimates

The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates.

Off Balance-sheet Arrangements

The Company has no off balance-sheet arrangements.

ITEM 3.     CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures:    Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon and as of the date of that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports our files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required.

(b)Changes in Internal Control over Financial Reporting:   There were no changes in our internal control over financial reporting identified in connection with our evaluation of these controls as of the end of the period covered by this report that could have affected those controls subsequent to the date of the evaluation referred to in the previous paragraph, including any correction action with regard to deficiencies and material weakness.

There were no changes in our internal controls or in other factors that could affect these controls subsequent to the date of their evaluation, including any deficiencies or material weaknesses of internal controls that would require corrective action.

PART II - OTHER INFORMATION

ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS.

There were no changes in securities and use of proceeds during the quarter.



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ITEM 6.     EXHIBITS ON FORM 10-QSB.

The following Exhibits are attached hereto:



|Exhibit No. | Document Description                                                                                                                                          
|----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1        | Certification of Principal Executive Officer pursuant to Rule 13a-15(a) and Rule 15d-15(a), promulgated under the Securities Exchange Act of 1934, as amended.
|            |                                                                                                                                                               
|31.2        | Certification of Principal Financial Officer pursuant to Rule 13a-15(a) and Rule 15d-15(a), promulgated under the Securities Exchange Act of 1934, as amended.
|            |                                                                                                                                                               
|32.1        | Certification of Chief Executive Officer Pursuant To 18 U.S.C. Section 1350, as adopted pursuant to Section 906 Of The Sarbanes-Oxley Act of 2002.            
|           
|32.2        | Certification of Chief Financial Officer Pursuant To 18 U.S.C. Section 1350, as adopted pursuant to Section 906 Of The Sarbanes-Oxley Act of 2002.            

























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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 17th day of February, 2006.



| | SYDYS CORPORATION
| | -----------------
| | (Registrant)     
| |                  
| | BY:              
| |                  
| |                  
| | BY:              
| |                  

























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