UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                      ---------------------
                            Form 10-Q
                      ---------------------

/X/  Quarterly report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the quarterly period ended March 31, 2001 or

/ /  Transition report pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the period from __________ to ___________

                 Commission file number 0-21555
                      _____________________

                       AMASYS CORPORATION
     (Exact name of registrant as specified in its charter)

                 Delaware                     54-1812385
      (State or other jurisdiction of      (I.R.S. Employer
       incorporation or organization)       Identification No.)

                       4900 Seminary Road
                            Suite 600
                   Alexandria, Virginia  22311
            (Address of principal executive offices)

        Registrant's Telephone number including area code
                         (703) 797-8111

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 / /        No /X/

As of June 22, 2001, 2,207,350 shares of the Common Stock of the
registrant were outstanding.
<PAGE>
                       AMASYS CORPORATION
                        TABLE OF CONTENTS



Part I Financial Information:                          Page No.

     Item 1.  Financial Statements

               Balance Sheets                          3
                at March 31, 2001
                and June 30, 2000

               Statements of Operations                4
                for the Three and Nine Months Ended
                March 31, 2001 and 2000

               Statements of Cash Flows                5
                for the Three and Nine Months Ended
                March 31, 2001 and 2000

               Notes to Financial Statements           6


     Item 2.  Management's Discussion and Analysis     9
                of Financial Condition and Results
                of Operations


Part II Other Information:

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


SIGNATURES
                                                       12

<PAGE>
                               AMASYS Corporation

                                 Balance Sheets

<TABLE>
                                                          March 31       June 30
                                                            2001          2000
                                                         --------------------------
<S>                                                     <C>           <C>
Assets
Current assets:
 Cash and cash equivalents                               $     75,373  $     41,732
 Interest receivable                                              271         8,225
                                                         --------------------------
Total current assets                                           75,644        49,957

Note receivable                                               965,954       986,954
Investments in common stock                                 1,115,991       946,160
Reorganization value, net                                      16,677        41,696
                                                         --------------------------
Total assets                                              $ 2,174,266   $ 2,024,767
                                                         ==========================

Liabilities and stockholders' equity
Current liabilities:
 Accounts payable and accrued expenses                    $    61,149   $    12,506
                                                         --------------------------
Total current liabilities                                      61,149        12,506

Note payable                                                2,229,144     2,133,152

Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares
authorized; 196,000 Series A shares issued and
outstanding                                                     1,960         1,960
Common stock, $.01 par value; 20,000,000 shares
authorized; 2,207,350 shares issued and outstanding            22,073        22,073
Other comprehensive income (loss)                              17,034        (8,308)
Retained earnings (deficit)                                  (157,094)     (136,616)
                                                         --------------------------
Total stockholders' equity (deficit)                         (116,027)     (120,891)
                                                         --------------------------
Total liabilities and stockholders' equity                $ 2,174,266   $ 2,024,767
                                                         ==========================
</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS Corporation

                            Statements of Operations

<TABLE>
                                        Three months ended         Nine months ended
                                             March 31                   March 31
                                          2001        2000          2001       2000
                                      -------------------------------------------------
<S>                                   <C>          <C>           <C>        <C>
Revenue:
 Equity in earnings                      $  15,003  $  56,673     $ 144,489   $ 143,757
 Interest income                            27,148     23,438        76,121      70,314
 Miscellaneous income                            -          -        58,203           -
                                      -------------------------------------------------
Total revenue                               42,151     80,111       278,813     214,071
                                      -------------------------------------------------
Costs and expenses:
 Professional services                      50,987        367        87,986      18,430
 General and administrative                 23,535      2,126        40,138       9,670
 Amortization                                8,339      8,340        25,019      25,020
                                      -------------------------------------------------
Total costs and expenses                    82,861     10,833       153,143      53,120
                                      -------------------------------------------------
Operating income (loss)                    (40,710)    69,278       125,670     160,951

Interest expense                            50,156     45,929       146,148     133,831
                                      -------------------------------------------------
Income (loss) before income taxes          (90,866)    23,349       (20,478)     27,120

Provision for income taxes                       -          -             -           -
                                      -------------------------------------------------
Net income (loss)                       $  (90,866)  $ 23,439    $  (20,478)  $  27,120
                                      =================================================
Per share data:

Net income (loss) per share:
 Basic                                  $   (0.04)   $ 0.01       $ (0.01)     $  0.01
                                       ================================================
 Diluted                                $   (0.04)   $ 0.005      $ (0.01)     $  0.01
                                      =================================================
Weighted average number of shares:
 Basic                                   2,207,350  2,207,350     2,207,350   2,207,350
                                      =================================================
 Diluted                                 2,207,350  5,117,350     2,207,350   5,117,350
                                      =================================================
</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS Corporation

                            Statements of Cash Flows

<TABLE>
                                                          Nine months ended March 31
                                                              2001         2000
                                                          ------------    ----------
<S>                                                       <C>          <C>
Operating activities
Net income (loss)                                          $  (20,478)    $   27,120
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
 Equity in earnings                                          (144,489)     (143,757)
 Accrued interest on note payable                             146,148       133,831
 Amortization                                                  25,019        25,020
 Changes in operating assets and liabilities:
 Note receivable                                               21,000             -
 Interest receivable and other current assets                   7,954        19,037
Accounts payable and accrued expenses                          (1,513)      (23,549)
                                                          ------------  ------------
Net cash provided by (used in) operating activities            33,641        37,702
                                                          ------------  ------------
Net increase (decrease) in cash and cash equivalents           33,641        37,702
Cash and cash equivalents at beginning of period               41,732           736
                                                          ------------  ------------
Cash and cash equivalents at end of period                $    75,373   $    38,438
                                                          ===========   ===========
</TABLE>
See accompanying notes.
<PAGE>
                       AMASYS CORPORATION
            NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                         March 31, 2001


1.   Basis of Presentation

The accompanying interim financial statements of AMASYS
Corporation (the "Company" or "AMASYS") are unaudited, but in the
opinion of management reflect all adjustments (consisting only of
normal recurring accruals) necessary for a fair presentation of
the results for such periods.  The results of operations for any
interim period are not necessarily indicative of results for the
full year.  The balance sheet at June 30, 2000 has been derived
from the audited financial statements at that date but does not
include all of the information and footnotes required by
accounting principles generally accepted in the United States for
complete financial statements. These financial statements should
be read in conjunction with the audited financial statements and
notes thereto included in the Company's Annual Report on Form 10-K
for the fiscal year ended June 30, 2000 ("2000 Form 10-K"), filed
with the Securities and Exchange Commission on July 2, 2001.

2.   Note Payable

The Company entered into a Note Payable Agreement dated June 21,
1996 with the Pension Benefit Guaranty Corporation ("PBGC").  The
note accrues interest at the rate of 9% per annum compounded semi-
annually.  The note is to be paid prior to its maturity on
December 31, 2006 from any proceeds received by the Company from
PBGC's pro-rata share of the proceeds of any and all sales of the
Company's stock positions in COMTEX News Network, Inc. ("COMTEX")
and Hadron, Inc. ("Hadron") and value received from the 10% Senior
Subordinated Note issued by COMTEX to the Company on May 16, 1995.
If neither of the above two events occurs prior to December 31,
2006, the note will be considered cancelled.  In addition, PBGC
has the unilateral right, through December 31, 2001, to require
the Company to use its best efforts to liquidate PBGC's pro-rata
positions in COMTEX and Hadron through secondary offerings and
private sales.

The Note was issued pursuant to the Third Joint Plan of
Reorganization of Infotechnology, Inc. and Questech Capital
Corporation dated January 26, 1994, which was confirmed by order
of the United States Bankruptcy Court dated June 24, 1994.
<PAGE>

3.   Net Income per Share

The following table sets forth the computation of basic and
diluted earnings per share:
<TABLE>
                                    Three months ended         Nine months ended
                                         March 31                ended March 31
                                   2001           2000          2001        2000
                                ----------------------------------------------------
<S>                             <C>            <C>          <C>          <C>
Numerator:
  Net income (loss)             $  (90,866)    $   23,349   $  (20,478)  $   27,120
                                ====================================================

Denominator:
  Denominator for basic
earnings
  per share - weighted
average
  Shares                          2,207,350     2,207,350    2,207,350    2,207,350

Effect of dilutive
securities:
  Stock options                           -       950,000            -      950,000
  Convertible preferred stock             -     1,960,000            -    1,960,000
                                ---------------------------------------------------
Denominator for diluted
earnings per share                2,207,350     5,117,350    2,207,350    5,117,350
                                ===================================================

Basic earnings per share          $    (.04)      $   .01     $   (.01)      $  .01

Diluted earnings per              $    (.04)      $  .005     $   (.01)      $  .01

</TABLE>

4.   Investments in Common Stock

The   following  information  presents  condensed  balance   sheet
information  as of March 31, 2001 and June 30, 2000 and  condensed
income  statement information for each of the three  months  ended
March 31, 2001 and 2000 for Comtex:
<TABLE>
                          March 31     June 30
                            2001         2000
                         -----------------------
                             (in thousands)
<S>                      <C>          <C>
Current assets            $   2,961   $   3,928
Other assets                  3,726       2,049
Current liabilities           2,576       2,612
Long-term liabilities           963         987
</TABLE>
<PAGE>

4.   Investments in Common Stock (continued)

<TABLE>
                        Three months ended March 31
                            2001         2000
                        ---------------------------
                             (in thousands)
<S>                     <C>           <C>
Revenues                  $   4,306   $   3,370
Gross profit                  3,135       2,403
Net income                       70         317
</TABLE>

5.   Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of the following:
<TABLE>
                                 Three months ended March 31
                                     2001         2000
                                 ---------------------------
<S>                              <C>           <C>
Net loss                         $ (90,866)   $  23,439
Unrealized gain on investment      (31,678)           -
                                 ---------------------------
                                 $(122,544)   $  23,439
                                 ---------------------------
</TABLE>
<PAGE>
Item 2.
             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATION
          --------------------------------------------
REVENUE SOURCES AND REVENUE RECOGNITION
---------------------------------------
The Company's revenues are derived from equity in earnings and
interest income related to investments in COMTEX and Hadron.  The
Company accounts for its investment in COMTEX using the equity
method, whereby the Company records its share of income or loss
reported by COMTEX based on its ownership interest.  The Company
also has a note receivable from COMTEX, which bears interest at
10%.  The Company's investment in Hadron was accounted for using
the equity method through March 2000.  Due to a change in control
at Hadron in March 2000, in which a group of investors assumed
control of Hadron, the investment has since been accounted for
pursuant to SFAS 115 Accounting for Certain Investments in Debt
and Equity Securities.  The Hadron investment balance at each
reporting period is reported based on the stock's trading value
with any increases or decreases being presented as unrealized
gains or losses in the statement of stockholders' equity.  No
investments have been made since the initial acquisition of
interests of COMTEX and Hadron in 1996, nor has there been any
sale of interests nor dividends received.

RESULTS OF OPERATIONS
---------------------
Comparison of the three months ended March 31, 2001 to the three
months ended March 31, 2000

The Company incurred a net loss of $91,000 during the three months
ended March 31, 2001 compared to net income of $23,000 during the
three months ended March 31, 2000. The decrease in net income is
due to a decrease in revenues of $38,000 (47.4%) and an increase
in operating costs and expenses of $72,000 (664.9%) and interest
expense of $4,000 (9.2%).

Revenue.  Revenues decreased to $42,000 during the three months
ended March 31, 2001 compared to revenues of $80,000 during the
three months ended March 31, 2000, due to a decrease in equity in
earnings.  Equity in earnings decreased $42,000 (73.5%) due
primarily to the decrease in the Company's share of earnings of
COMTEX, which reported decreased net income of $70,000 during the
three months ended March 31, 2001 compared to $317,000 during the
same period ended 2000.

Operating costs and expenses.  Operating costs and expenses
increased $72,000 (664.9%) to $83,000 during the three months
ended March 31, 2001 due to an increase in professional services
and general and administrative expenses.  Professional services
increased $51,000 primarily due to increased accounting and legal
fees associated with an audit of the Company's financial
statements for the three years ended June 30, 2000.  General and
administrative expenses increased $21,000 due to an increase in
professional expenses associated with an overall increase in
activity.
<PAGE>

Interest expense.  Interest expense increased due to an increase
in the note payable balance resulting from compounded interest
during the year.

Comparison of the nine months ended March 31, 2001 to the nine
months ended March 31, 2000

The Company incurred a net loss of $20,000 during the nine months
ended March 31, 2001 compared to net income of $27,000 during the
nine months ended March 31, 2000. The decrease in net income is
due to a increase in revenues of $65,000 (30.2%) offset by an
increase in operating costs and expenses of $100,000 (188.3%) and
interest expense of $12,000 (9.2%).

Revenue.  Revenues increased to $279,000 during the nine months
ended March 31, 2001 compared to revenues of $214,000 during the
nine months ended March 31, 2000, primarily due to an increase in
miscellaneous income.  The Company recorded $58,000 in
miscellaneous income related to the United Press International
(UPI) bankruptcy settlement.  The Company had previously written
off all amounts associated with UPI.

Operating costs and expenses.  Operating costs and expenses
increased $100,000 (188.3%) to $153,000 during the nine months
ended March 31, 2001 due to an increase in professional services
and general and administrative expenses.  Professional services
increased $70,000 primarily due to increased accounting and legal
fees associated with an audit of the Company's financial
statements for the three years ended June 30, 2000.  General and
administrative expenses increased $30,000 due to an increase in
office expenses associated with an overall increase in activity.

Interest expense.  Interest expense increased due to an increase
in the note payable balance resulting from compounded interest
during the year.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Company had net working capital of $14,000 at March 31, 2001,
including cash and cash equivalents of $75,000.  The Company has
had minimal operating activity since commencing operations in 1996
and has not had any other uses of funds.  Accordingly, the Company
has not required any funding sources.

CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS
-----------------------------------------------------------
Except for the historical information contained herein, the
matters discussed in this Form 10-Q include forward-looking
statements within the meaning of Section 21E of the Securities and
Exchange Act of 1934.  These forward-looking statements may be
identified by reference to a future period or by use of forward-
looking terminology such as "anticipate", "expect", "could", "may"
or other words of a similar nature.  Forward-looking statements,
which the Company believes to be reasonable and are made in good
faith, are subject to certain risks and uncertainties that could
cause actual results to differ materially from those expressed in
any forward-looking statement made by, or on behalf of, the
Company.
<PAGE>


     Part II.  Other Information


     Items 1 - 5.   None.


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

     (a)  Exhibits

          None.

     (b)  Reports on Form 8-K

          None.
<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 there unto duly authorized.

                                   AMASYS CORPORATION
                                        (Registrant)


     Dated:  July 2, 2001          By: /S/ C.W. GILLULY
                                   ------------------------------
                                        C.W. Gilluly, Ed.D.
                                        President and Chief Executive Officer
                                       (Principal Executive Officer and
                                        Principal Financial and
                                        Accounting Officer)

<PAGE>