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 December 31, 2000 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 December 31, 2000
                and June 30, 2000

               Statements of Operations                     4
                for the Three and Six Months Ended
                December 31, 2000 and 1999

               Statements of Cash Flows                     5
                for the Six Months Ended
                December 31, 2000 and 1999

               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>
                                                              December 31      June 30
                                                                  2000          2000
                                                              ------------  ------------
<S>                                                           <C>           <C>
Assets
Current assets:
 Cash and cash equivalents                                     $   117,017    $    41,732
 Interest receivable                                          ------------   ------------
Total current assets                                               117,017         49,957

Note receivable                                                    971,954        986,954
Investments in common stock                                      1,132,666        946,160
Reorganization value, net                                           25,017         41,696
                                                              ------------   ------------
Total assets                                                   $ 2,246,654    $ 2,024,767
                                                              ============   ============

Liabilities and stockholders' equity
Current liabilities:
 Accounts payable and accrued expenses                         $    10,993   $     12,506
                                                              ------------   ------------
Total current liabilities                                           10,993         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)                                   48,712         (8,308)
Retained earnings (deficit)                                        (66,228)      (136,616)
                                                              ------------   ------------
Total stockholders' equity (deficit)                                 6,517       (120,891)
                                                              ------------   ------------
Total liabilities and stockholders' equity                     $ 2,246,654    $ 2,024,767
                                                              ============   ============
</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS Corporation
                            Statements of Operations

<TABLE>
                                        Three months ended           Six months ended
                                            December 31                December 31
                                         2000         1999          2000         1999
                                      -----------  -----------   -----------  -----------
<S>                                  <C>          <C>            <C>          <C>
Revenue:
 Equity in earnings                     $  24,109     $ 47,510     $ 129,486     $ 87,084
 Interest income                           24,374       23,438        48,973       46,876
 Miscellaneous income                           -            -        58,203            -
                                      -----------  -----------   -----------  -----------
Total revenue                              48,483       70,948       236,662      133,960
                                      -----------  -----------   -----------  -----------
Costs and expenses:
 Professional services                     26,872       16,844        36,999       18,063
 General and administrative                 9,147        6,528        16,603        7,544
 Amortization                               8,340        8,340        16,680       16,680
                                      -----------  -----------   -----------  -----------
Total costs and expenses                   44,359       31,712        70,282       42,287
                                      -----------  -----------   -----------  -----------
Operating income                            4,124       39,236       166,380       91,673

Interest expense                           47,996       43,951        95,992       87,902
                                      -----------  -----------   -----------  -----------
Income (loss) before income taxes        (43,872)      (4,715)        70,388        3,771

Provision for income taxes                      -            -             -            -
                                      -----------  -----------   -----------  -----------
Net income (loss)                     $  (43,872)  $   (4,715)      $ 70,388      $ 3,771
                                      ===========  ===========   ===========  ===========
Per share data:

Net income (loss) per share:
 Basic                                  $  (0.02)    $ (0.002)        $ 0.03      $ 0.002
                                     ===========   ===========   ===========  ===========
 Diluted                                $  (0.02)    $ (0.002)        $ 0.01      $ 0.001
                                      ===========  ===========   ===========  ===========
Weighted average number of shares:
 Basic                                  2,207,350    2,207,350     2,207,350  2,207,350
                                      ===========  ===========   ===========  ===========
 Diluted                                2,207,350    2,207,350     5,117,350  5,117,350
                                      ===========  ===========   ===========  ===========
</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS Corporation
                            Statements of Cash Flows

<TABLE>
                                                           Six months ended December 31
                                                               2000          1999
                                                           -------------   -----------
<S>                                                       <C>            <C>
Operating activities
Net income (loss)                                              $  70,388     $   3,771
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
 Equity in earnings                                             (129,486)      (87,084)
 Accrued interest on note payable                                 95,992        87,902
 Amortization                                                     16,679        16,680
 Changes in operating assets and liabilities:
 Note receivable                                                  15,000             -
 Interest receivable and other current assets                      8,225        26,026
Accounts payable and accrued expenses                             (1,513)      (23,549)
                                                           -------------  ------------
Net cash provided by (used in) operating activities               75,285        23,746
                                                           -------------  ------------
Net increase (decrease) in cash and cash equivalents              75,285        23,746
Cash and cash equivalents at beginning of period                  41,732           736
                                                           -------------  ------------
Cash and cash equivalents at end of period                     $ 117,017    $   24,482
                                                           =============  ============

</TABLE>
See accompanying notes.
<PAGE>
                               AMASYS CORPORATION
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                                December 31, 2000


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            Six months ended
                                         December 31                  December 31
                                      2000           1999          2000           1999
                                   -----------   -----------    -----------    -----------
<S>                                <C>           <C>            <C>            <C>
Numerator:
  Net income (loss)                $  (43,872)   $   (4,715)    $   70,388     $    3,771
                                   ===========   ===========    ===========    ===========
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     2,207,350      5,117,350      5,117,350
                                   ==========   ===========    ===========    ============
Basic earnings per share             $   (.02)    $   (.002)        $  .03        $  .002

Diluted earnings per share           $   (.02)    $   (.002)        $  .01        $  .001
</TABLE>


4.   Investments in Common Stock

The  following information presents condensed balance sheet
information as of December 31, 2000 and June 30,  2000  and
condensed  income statement information  for  each  of  the
three months ended December 31, 2000 and 1999 for Comtex:

<TABLE>
                         December 31      June 30
                            2000           2000
                        -------------------------
                             (in thousands)
<S>                     <C>          <C>
Current assets            $   3,664   $   3,928
Other assets                  3,419       2,049
Current liabilities           3,084       2,612
Long-term liabilities           972         987

</TABLE>
<PAGE>


4.   Investments in Common Stock (continued)

<TABLE>
                           Three months ended December 31
                            2000                1999
                        ---------------------------------
                                   (in thousands)
<S>                     <C>                  <C>
Revenues                  $   4,535          $   2,901
Gross profit                  3,169              1,968
Net income                      112                266
</TABLE>

5.   Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of the following:
<TABLE>

                               Three months ended December 31
                                    2000           1999
                               ------------------------------
<S>                            <C>               <C>
Net loss                          $ (43,872)      $ (4,715)
Unrealized gain on investment        19,007           -
                                  ---------------------------
                                  $ (24,865)      $ (4,715)
                                  ---------------------------
</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 December 31, 2000 to the
three months ended December 31, 1999
-------------------------------------------------------------
The Company incurred a net loss of $44,000 during the three
months ended December 31, 2000 compared to a net loss of $5,000
during the three months ended December 31, 1999. The increase
in net loss is due to a decrease in revenues of $22,000 (31.7%)
and an increase in operating costs and expenses of $13,000
(39.9%) and interest expense of $4,000 (9.2%).

Revenue.  Revenues decreased to $48,000 during the three months
ended December 31, 2000 compared to revenues of $71,000 during
the three months ended December 31, 1999, due to a decrease in
equity in earnings.  Equity in earnings decreased $23,000
(49.3%) due primarily to the decrease in the Company's share of
earnings of COMTEX, which reported decreased net income of
$112,000 during the three months ended December 31, 2000
compared to $266,000 during the same period ended 1999.

Operating costs and expenses.  Operating costs and expenses
increased $13,000 (39.9%) to $44,000 during the three months
ended December 31, 2000 due to an increase in professional
services and general and administrative expenses.  Professional
services increased $10,000 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 $3,000
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 six months ended December 31, 2000 to the six
months ended December 31, 1999
---------------------------------------------------------------
The Company earned net income of $70,000 during the six months
ended December 31, 2000 compared to net income of $4,000 during
the six months ended December 31, 1999. The increase in net
income is due to an increase in revenues of $103,000 (76.7%)
offset by an increase in operating costs and expenses of
$28,000 (66.2%) and interest expense of $8,000 (9.2%).

Revenue.  Revenues increased to $237,000 during the six months
ended December 31, 2000 compared to revenues of $134,000 during
the six months ended December 31, 1999, due to an increase in
equity in earnings and miscellaneous income.  Equity in
earnings increased $42,000 (48.7%) due primarily to the
increase in the Company's share of earnings of COMTEX, which
reported increased net income of $600,000 during the six months
ended December 31, 2000 compared to $542,000 during the same
period ended 1999.  In addition, for the six months ended
December 31, 2000, the Company no longer accounted for the
Hadron investment in accordance with the equity method.  For
the six months ended December 31, 1999, Hadron suffered losses
that resulted in lower equity in earnings. The Company also
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 $28,000 (66.2%) to $70,000 during the six months
ended December 31, 2000 due to an increase in professional
services and general and administrative expenses.  Professional
services increased $19,000 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 $9,000
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 $106,000 at December 31,
2000, including cash and cash equivalents of $117,000.  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.
<PAGE>

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>