U.S. 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  March 31, 2004

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF THE SECURITIES
EXCHANGE  ACT  OF  1934

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

                         Commission file number: 0-22711


             Nevada                                      76-0640970
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or Organization)


701 North Post Oak, Road, Suite 630, Houston, Texas            77024
  (Address  of  Principal  Executive  Office)                 (Zip Code)

                                 (713) 682-7400
              (Registrant's Telephone Number, Including Area Code)


                            BERENS INDUSTRIES, INC.
                                  (Former Name)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filings requirements for the past 90 days. Yes  [X]  No  [ ]

      APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
                            THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes  [ ]   No  [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each the issuer's classes of common
equity, as of the latest practicable date: 40,099,030 common shares outstanding
as of May 11, 2004.

Transitional Small Business Disclosure Format (Check One): Yes  [ ]   No  [X]


================================================================================


<PAGE>
<TABLE>
<CAPTION>
                                 CRESCENT COMMUNICATIONS, INC.

                              (FORMERLY BERENS INDUSTRIES, INC.)

                                       TABLE OF CONTENTS
                                          __________

<S>                                                                                        <C>

                                PART I. FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

          Unaudited Condensed Consolidated Financial Statements . . . . . . . . . . . . .  F-1

             Condensed Consolidated Balance Sheet as of March 31, 2004  (Unaudited)
               and December 31, 2003. . . . . . . . . . . . . . . . . . . . . . . . . . .  F-2

             Unaudited Condensed Consolidated Statement of Operations for three
               months ended  March 31, 2004 and 2003. . . . . . . . . . . . . . . . . . .  F-3

             Unaudited Condensed Consolidated Statement of  Stockholders' Equity for
               the three months ended March 31, 2004. . . . . . . . . . . . . . . . . . .  F-4

             Unaudited Condensed Consolidated Statement of Cash Flows for the three
               months ended March 31, 2004 and 2003 . . . . . . . . . . . . . . . . . . .  F-5

             Notes to Unaudited Condensed Consolidated Financial Statements . . . . . . .  F-6

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS. . . . . . . . . . . . . . . . . . . . . .  I-1

ITEM 3.   EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. . . . . . . . . . . . . . . .  I-4


                                PART II. OTHER INFORMATION

ITEM 2.   CHANGES IN SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  II-1

ITEM 5.   OTHER EVENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  II-1

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K. . . . . . . . . . . . . . . . . . . . . . . .  II-2

          SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  II-2

          CERTIFICATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  II-3
</TABLE>


                                        2
<PAGE>
ITEM 1.   FINANCIAL  STATEMENTS




                          CRESCENT COMMUNICATIONS, INC.

                                   __________




              UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003




                                      F-1
<PAGE>
<TABLE>
<CAPTION>
                              CRESCENT COMMUNICATIONS, INC.
                          CONDENSED CONSOLIDATED BALANCE SHEET
                                       __________


                                                              MARCH 31,     DECEMBER 31,
                                                                 2004           2003
     ASSETS                                                  (UNAUDITED)       (NOTE)
     ------                                                  ------------  --------------
<S>                                                          <C>           <C>
Current assets:
  Cash and cash equivalents                                  $     8,990   $       9,485
  Accounts receivable, net of allowance for doubtful
    accounts of $134,425 and $80,000 at March 31, 2004
    and December 31, 2003, respectively                          133,059         155,425
  Employee advances                                                2,100           2,100
                                                             ------------  --------------

    Total current assets                                         144,149         167,010

Property and equipment, net of accumulated depreciation
    of $461,453 and $393,772 at March 31, 2004 and
    December 31, 2003, respectively                              331,170         403,217

Goodwill                                                         200,346         200,346
                                                             ------------  --------------

      Total assets                                           $   675,665   $     770,573
                                                             ============  ==============


LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------

Current liabilities:
  Book overdraft                                             $    34,939   $      63,705
  Notes payable                                                  163,863         124,658
  Notes payable to related parties                               500,670         514,670
  Accounts payable                                               737,169         717,188
  Accrued liabilities                                            367,379         297,693
  Deferred revenue                                               208,709         193,038
                                                             ------------  --------------

    Total current liabilities                                  2,012,729       1,910,952
                                                             ------------  --------------

Commitment and contingencies

Stockholders' deficit:
  Series A Convertible Non-Redeemable Preferred stock,
    $.001 par value, 20,000,000 shares authorized, 115.726
    shares issued and outstanding, $5,000 per share
    liquidation preference ($578,630 aggregate liquida-
    tion preference)                                                   -               -
  Series B Convertible Non-Redeemable Preferred stock,
    $0.001 par value, 10,000,000 shares authorized, no
    shares issued and outstanding                                      -               -
  Common stock, $.001 par value, 85,000,000 shares auth-
    orized, 38,972,619 shares issued and outstanding              38,973          34,540
  Additional paid-in capital                                   5,775,621       5,540,467
  Deferred compensation                                          (12,008)        (12,008)
  Accumulated deficit                                         (7,139,650)     (6,703,378)
                                                             ------------  --------------

    Total stockholders' deficit                               (1,337,064)     (1,140,379)
                                                             ------------  --------------

      Total liabilities and stockholders' deficit            $   675,665   $     770,573
                                                             ============  ==============

<FN>
Note:  The balance sheet at December 31, 2003 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 of America for
complete  financial  statements.
</TABLE>


                             See accompanying notes.


                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                          CRESCENT COMMUNICATIONS, INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                  FOR THE THREE MONTHS MARCH 31, 2004 AND 2003
                                   __________


                                               MARCH 31,     MARCH 31,
                                                  2004          2003
                                              ------------  ------------

<S>                                           <C>           <C>
Service revenue                               $   621,518   $   603,389

Cost of services                                  454,382       411,754
                                              ------------  ------------

  Gross margin                                    167,136       191,635

Selling, general and administrative expenses      592,569       748,315
                                              ------------  ------------

Loss from operations                             (425,433)     (556,680)

Interest expense                                   10,839        10,972
                                              ------------  ------------

Net loss                                      $  (436,272)  $  (567,652)
                                              ============  ============


Basic and diluted net loss per common share   $     (0.01)  $     (0.04)
                                              ============  ============

Weighted average shares outstanding            38,492,545    14,459,265
                                              ============  ============
</TABLE>


                             See accompanying notes.


                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                                                  CRESCENT COMMUNICATIONS, INC.
                                      CONSOLIDATED  STATEMENT  OF  STOCKHOLDERS'  EQUITY
                                        FOR  THE  THREE  MONTHS  ENDED  MARCH  31,  2004
                                                           __________


                                                    SERIES A            SERIES B        ADDITIONAL
                                                    --------            --------
                              COMMON STOCK      PREFERRED STOCK     PREFERRED STOCK      PAID-IN       DEFERRED      ACCUMULATED
                          -------------------  ------------------  ------------------
                            SHARES    AMOUNT    SHARES    AMOUNT    SHARES    AMOUNT     CAPITAL     COMPENSATION      DEFICIT
                          ----------  -------  ---------  -------  ---------  -------  -----------  --------------  -------------
<S>                       <C>         <C>      <C>        <C>      <C>        <C>      <C>          <C>             <C>
Balance at December 31,
  2003                    34,540,174  $34,540        116  $     -          -  $     -  $ 5,540,467  $     (12,008)  $ (6,703,378)

Issuance of common stock
  for compensation            50,000       50          -        -          -        -       11,950              -              -

Issuance of common stock
  for cash                 4,382,445    4,383          -        -          -        -      223,204              -              -

Net loss                           -        -          -        -          -        -            -              -       (436,272)
                          ----------  -------  ---------  -------  ---------  -------  -----------  --------------  -------------

Balance at March 31,
  2004                    38,972,619  $38,973        116  $     -          -  $     -  $ 5,775,621  $     (12,008)  $ (7,139,650)
                          ==========  =======  =========  =======  =========  =======  ===========  ==============  =============


                              TOTAL
                          ------------
<S>                       <C>
Balance at December 31,
 2003                     $(1,140,379)

Issuance of common stock
  for compensation             12,000

Issuance of common stock
  for cash                    227,587

Net loss                     (436,272)
                          ------------

Balance at March 31,
  2004                    $(1,337,064)
                          ============
</TABLE>


                             See accompanying notes.


                                      F-4
<PAGE>
<TABLE>
<CAPTION>
                          CRESCENT COMMUNICATIONS, INC.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                                   __________


                                                        MARCH 31,    MARCH 31,
                                                          2004         2003
                                                       -----------  -----------
<S>                                                    <C>          <C>
Cash flows from operating activities:
  Net loss                                             $ (436,272)  $ (567,652)
  Adjustments to reconcile net loss to net cash
    used in operating activities:                         207,385       79,999
                                                       -----------  -----------

      Net cash used in operating activities              (228,887)    (487,653)
                                                       -----------  -----------

Cash flows from investing activities:
  Proceeds from disposition of property and equipment       4,366            -
                                                       -----------  -----------

      Net cash used in investing activities                 4,366            -
                                                       -----------  -----------

Cash flows from financing activities:
  Repayment of book overdraft                             (28,766)           -
  Proceeds from notes payable                              40,000      127,000
  Repayment of notes payable                                 (795)     (24,000)
  Repayment of notes payable to related parties           (14,000)           -
  Issuance of common stock for cash                       227,587      401,664
                                                       -----------  -----------

      Net cash provided by financing activities           224,026      504,664
                                                       -----------  -----------

Net (decrease) increase in cash and cash equivalents         (495)      17,011

Cash and cash equivalents at beginning of period            9,485            -
                                                       -----------  -----------

Cash and cash equivalents at end of period             $    8,990   $   17,011
                                                       ===========  ===========
</TABLE>


                             See accompanying notes.


                                      F-5
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   __________


1.   BASIS  OF  PRESENTATION
     -----------------------

     The  unaudited  consolidated condensed financial statements included herein
     have  been  prepared without audit pursuant to the rules and regulations of
     the  Securities  and  Exchange Commission. Certain information and footnote
     disclosures  normally  included  in  financial  statements  prepared  in
     accordance  with  accounting  principles  generally  accepted in the United
     States  of  America  have been condensed or omitted, pursuant to such rules
     and  regulations.  These  unaudited  consolidated  condensed  financial
     statements  should  be  read  in  conjunction with the audited consolidated
     financial  statements  and  notes  thereto of Crescent Communications, Inc.
     (the  "Company") included in the Company's Annual Report on Form 10-KSB for
     the  year  ended  December  31,  2003.

     In  the  opinion  of  management,  the  unaudited  consolidated  condensed
     financial  information  included herein reflect all adjustments, consisting
     only  of  normal,  recurring  adjustments,  which  are necessary for a fair
     presentation of the Company's financial position, results of operations and
     cash flows for the interim periods presented. The results of operations for
     the  interim periods presented herein are not necessarily indicative of the
     results  to  be  expected  for  a  full  year  or any other interim period.

     The  preparation  of  consolidated  financial statements in conformity with
     accounting  principles  generally  accepted in the United States of America
     requires  management  to  make  estimates  and  assumptions that affect the
     reported  amounts  of  assets  and liabilities and disclosure of contingent
     assets  and  liabilities  at  the  dates  of  the  consolidated  financial
     statements  and  the  reported  amounts of revenues and expenses during the
     periods.  Actual  results  could differ from estimates making it reasonably
     possible  that  a  change  in  the  estimates could occur in the near term.


2.   GOING  CONCERN  CONSIDERATIONS
     ------------------------------

     During  the three months ended March 31, 2003, and the years ended December
     31,  2003  and  2002  the  Company  has  been unable to generate cash flows
     sufficient  to  support  its  operations and has been dependent on debt and
     equity  raised  from qualified individual investors. During the years ended
     December  31,  2003  and  2002,  the Company experienced negative financial
     results  as  follows:

<TABLE>
<CAPTION>
                                               2003          2002
                                           ------------  ------------
<S>                                        <C>           <C>
       Net loss                            $(2,543,629)  $(2,946,382)
       Negative cash flow from operations   (1,423,363)   (1,774,837)
       Negative working capital             (1,743,942)   (1,276,547)
       Stockholders' deficit                (1,140,379)     (442,332)
</TABLE>

     These  negative  factors have continued during the three months ended March
     31,  2004  and  raise  substantial  doubt  about  the  Company's ability to
     continue  as  a  going  concern.

     The  Company  has  supported  current  operations by: 1) raising additional
     operating  cash  through private placements of its common stock, 2) issuing
     debt convertible to common stock to certain key stockholders and 3) issuing
     stock  and options as compensation to certain employees and vendors in lieu
     of  cash  payments.

     These  steps  have provided the Company with the cash flows to continue its
     business  plan,  but  have  not  resulted in significant improvement in the
     Company's  financial  position.  Management  is considering alternatives to
     address  its  critical  cash  flow  situation  that  include:

          -    Raising capital through additional sale of its common and
               preferred stock and/or debt securities.


                                      F-6
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   __________


2.   GOING  CONCERN  CONSIDERATIONS,  CONTINUED
     ------------------------------------------

          -    Merging  the  Company  with  another  business  that  compliments
               current  activities.

          -    Reducing  cash operating expenses to levels that are in line with
               current revenues. Reductions can be achieved through the issuance
               of  additional  common  shares  of the Company's stock in lieu of
               cash  payments  to  employees  or  vendors.

     These  alternatives  could  result  in  substantial  dilution  of  existing
     stockholders.  There  can  be  no  assurances  that  the  Company's current
     financial  position  can  be improved, that it can raise additional working
     capital  or  that  it  can achieve positive cash flows from operations. The
     Company's  long-term  viability  as  a  going concern is dependent upon the
     following:

          -    The Company's ability to locate sources of debt or equity funding
               to  meet  current  commitments and near term future requirements.

          -    The  ability  of  the  Company  to  achieve  profitability  and
               ultimately  generate  sufficient  cash  flow  from  operations to
               sustain  its  continuing  operations.


3.   INCOME  TAX
     -----------

     The difference between the Federal statutory income tax rate of 34% and the
     Company's  effective  rate  is  primarily  attributable to increases in the
     valuation  allowance offset against deferred tax assets associated with the
     Company's  net  operating  losses.


4.   STOCKHOLDERS'  EQUITY
     ---------------------

     During  the  three  months  ended  March  31,  2004, the Company engaged in
     various  transactions  affecting  stockholders'  equity,  as  follows:

          -    The  Company  sold  common  stock  under  Regulation S to various
               foreign investors under investment agreements entered into during
               2002. The investment agreements generally provide for the sale of
               restricted  common  stock  at 35% of the current trading price in
               the  United States. During the three month period ended March 31,
               2004  4,382,445  shares  were  issued  for  $227,587.

          -    The  Company  issued  common  stock  for  legal services totaling
               $12,000.

5.   SUBSEQUENT EVENT
     ----------------

     On April 7, 2004 the Company entered into a letter of intent with MobilePro
     Corp.  ("MobilePro")  to  sell  substantially all of its broadband internet
     service  related  assets,  including  (but  not  limited  to)  all  cash,
     receivables  (including  written  off  receivables), inventory, network and
     other  equipment,  property, customer lists, network relationships, billing
     arrangements,  intangible  assets  and all other assets, required or useful
     for  operating  its  internet  service  provider  business but specifically
     excluding  its  Bluegate  assets. The proposed sales price is $1,150,000 in
     the  form of (a) $900,000 cash at Closing and (b) $250,000 in the form of a
     one-year,  6%  secured  promissory  note.


                                      F-7
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   __________


2.   SUBSEQUENT  EVENT,  CONTINUED
     -----------------------------

     On  April 13, 2004, MobilePro lent the Company $400,000 at a rate of twelve
     percent  (12%) per annum with a maturity date of July 12, 2004. The loan is
     secured  by  (a)  a  security  interest in the assets and properties of the
     Company  and  (b)  all  outstanding common stock held by the Company's CEO,
     Manfred  Sternberg.  As  additional security, Manfred Sternberg, personally
     guaranteed  repayment  of  the  loan.

     MobilePro  is  in  the  process  of  conducting  due  diligence.


                                      F-7
<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS

This Management's Discussion and Analysis as of March 31, 2004 and for the three
months  ended  March  31, 2004, should be read in conjunction with the unaudited
condensed  financial  statements  and  notes thereto set forth in Item 1 of this
report  and  in  conjunction  with our Annual Report on Form 10-KSB for the year
ended  December 31, 2003.  The results  of  operations  for  the interim periods
presented  herein  are  not necessarily indicative of the results to be expected
for  a  full  year  or  any  other  interim  period.

The  information  in  this discussion contains forward-looking statements within
the  meaning  of  Section  27A  of  the  Securities Act of 1933, as amended, and
Section  21E of the Securities Exchange Act of 1934, as amended. Such statements
are  based  upon  current expectations that involve risks and uncertainties. Any
statements  contained  herein that are not statements of historical facts may be
deemed  to  be  forward-looking  statements.  For example, words such as, "may,"
"will,"  "should,"  "estimates," "predicts," "potential," continue," "strategy,"
"believes,"  "anticipates,"  "plans,"  "expects,"  "intends,"  and  similar
expressions  are  intended  to  identify  forward-looking statements. Our actual
results  and  the  timing  of  certain  events may differ significantly from the
results discussed in the forward-looking statements. Factors that might cause or
contribute  to  such  a  discrepancy  include,  but are not limited to the risks
discussed  in our other SEC filings. These forward-looking statements speak only
as  of  the  date hereof. We expressly disclaim any obligation or undertaking to
release  publicly  any  updates  or  revisions to any forward-looking statements
contained  herein  to reflect any change in our expectations with regard thereto
or any change in events, conditions or circumstances on which any such statement
is  based.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES
------------------------------------------

The  Company's discussion and analysis of its financial condition and results of
operations are based upon its consolidated financial statements, which have been
prepared  in  accordance  with  generally  accepted accounting principles in the
United  States.  The  preparation  of  these  financial  statements requires the
Company  to  make  estimates  and  judgments that affect the reported amounts of
assets,  liabilities, revenue and expenses, and related disclosure of contingent
assets  and  liabilities.  On  an  ongoing  basis,  the  Company  evaluates  its
estimates.  The  Company  bases  its  estimates  on historical experience and on
various  other  assumptions  that  are  believed  to  be  reasonable  under  the
circumstances.  These  estimates  and  assumptions  provide  a  basis for making
judgments  about  the  carrying  values  of  assets and liabilities that are not
readily  apparent  from  other  sources.  Actual  results  may differ from these
estimates  under  different assumptions or conditions, and these differences may
be  material.

The  Company believes the following critical accounting policies affect its more
significant  judgments and estimates used in the preparation of its consolidated
financial  statements.

REVENUE RECOGNITION
-------------------

Revenue  from  broadband  telecommunications  services are recognized based upon
contractually  determined  monthly  service  charges  to  individual  customers.
Telecommunications services are billed in advance and, accordingly, revenues are
deferred  until  the  period  in  which the services are provided.  At March 31,
2004,  deferred  service  revenue  was  $208,709.


                                      I-1
<PAGE>
STOCK-BASED  COMPENSATION
-------------------------

Financial Accounting Standard No. 123, "Accounting for Stock-Based Compensation"
("SFAS  No.  123")  established financial accounting and reporting standards for
stock-based  employee  compensation plans.  It defined a fair value based method
of  accounting  for  an  employee  stock option or similar equity instrument and
encouraged  all  entities  to  adopt  that method of accounting for all of their
employee  stock  compensation plans and include the cost in the income statement
as  compensation  expense.  However,  it  also  allows  an entity to continue to
measure compensation cost for those plans using the intrinsic value based method
of  accounting prescribed by Accounting Principles Board ("APB") Opinion No. 25,
"Accounting  for  Stock  Issued  to  Employees".  The  Company  accounts  for
compensation  cost for stock option plans in accordance with APB Opinion No. 25.

GENERAL

Crescent  Communications  is  a Nevada corporation that began operations on July
23,  2001,  providing  co-location  hosting and connectivity systems to small to
mid-size businesses in Texas.  The Company, headquartered in Houston, Texas is a
Value  Added  Network  provider that develops and deploys specific technological
internet  related  solutions  for  businesses.

The  Company was formed through a Stock Exchange Agreement ("Agreement") whereby
the shareholders of Solis Communications, Inc ("Solis") exchanged all the issued
and  outstanding  shares  of  Solis  for  600  shares  of  newly issued Series A
Convertible  Non-Redeemable  Preferred  Stock  of  Berens  Industries,  Inc.
("Berens").  Solis,  the  ultimate  acquirer  of  Berens in this reverse merger,
agreed  to  contribute  $600,000  cash  and  cash  equivalents.  Berens  was  a
development  stage  enterprise  involved in the development of an online auction
site  for  exclusive  paintings  and  other  art  works.  At  the  date  of  the
Agreement,  Berens  had  ceased  all activity due to their inability to generate
sufficient  revenue  or  obtain additional capital funding.  This transaction is
exempt  from  section  4.2  of  the  Securities  Act.

On  September  17,  2001  Berens filed a name change to Crescent Communications,
Inc.  d.b.a. Crescent Broadband and approved a 5-for-1 reverse stock split to be
effective  on  September 24, 2001.  On a fully convertible post-split basis, the
former  shareholders  of  Solis beneficially owned an aggregate of approximately
28,000,000  shares of common  stock.

The Company has incurred a significant loss from operations since inception, and
is in a negative working capital and stockholders' deficit position at March 31,
2004.  The  Company  remains  dependent  on  outside  sources  of  funding  for
continuation  of  its operations.  Based on these factors, our auditors issued a
qualified opinion at December 31, 2003 that reflects the significant doubt about
the  company's  ability  to  continue  as  a  going  concern.

RESULTS  OF  OPERATIONS

THREE MONTHS ENDED MARCH 31, 2004 AS COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003

During  the  three  months  ended  March  31,  2004,  the Company's revenue from
connectivity  systems, web site hosting, engineering services and hardware sales
was  $621,518  versus $603,389 for the three month period ended  March 31, 2003.
This  increase  is  primarily  attributable  to  higher  connectivity  revenue.

Cost  of  sales  for  the three months ended March 31, 2004 were $454,382 versus
$411,754  for  the  comparable  2003  period.  The  increase  is  due  to higher
interconnect  fees  associated  with  the  increased  revenue  stream.

Selling,  general and administrative expenses during the quarter ended March 31,
2004, were lower by $155,746, or 21%, as compared to the quarter ended March 31,
2003,  due  to  lower  costs  attributable  to stock based compensation and cost
reduction  efforts  by  the Company as it moves into the implementation phase of
its  medical  vertical  market  under  the  Bluegate  (TM)  brand  name.

No  significant  capital  expenditures  were  made  during  the  period.


                                      I-2
<PAGE>
PLAN  OF  OPERATIONS,  LIQUIDITY  AND  CAPITAL  RESOURCES

Operations  for  the three month period ended March 31, 2004 have been funded by
the  issuance of common stock for cash of  $227,587, and newly issued short term
notes payable for $40,000. The Company has continued to take steps to reduce its
monthly  operating  expenses  relating to its core business and has expanded its
efforts  in  creating  a  market  for  the health care industry.  Because of the
uncertainty  associated  with  this  new  market,  break  even  cash flow is not
expected  until  late  2005,  at  the  earliest.

The  Company  is seeking additional capital to fund expected operating costs and
has  engaged  in  negotiations  to merge or sell part or all of the Company.  No
commitments  for mergers or acquisitions have been obtained at this time and the
Company  continues  to  negotiate  with certain parties to address the operating
cash  flow  shortfalls. We believe future funding may be obtained from public or
private  offerings  of equity securities, debt or convertible debt securities or
other  sources.  Stockholders  should  assume  that  any additional funding will
likely  be  dilutive.

If  we  are  unable  to  raise  additional  funding,  we  may  have to limit our
operations  to  an extent that we cannot presently determine.  The effect on our
business may include the sale of certain assets, the reduction or curtailment of
new  customer  acquisition,  reduction in the scope of current operations or the
cessation  of  business  operations.

Our  ability  to  achieve  profitability  will  depend upon our ability to raise
additional  operating  capital,  continued  growth  in  demand  for connectivity
services  and  our  ability  to  execute  and  deliver  high  quality,  reliable
connectivity  services.

On  April  7,  2004  the  Company entered into a letter of intent with MobilePro
Corp.  ("MobilePro") to sell substantially all of its broadband internet service
related  assets, including (but not limited to) all cash, receivables (including
written  off  receivables),  inventory,  network  and other equipment, property,
customer  lists,  network relationships, billing arrangements, intangible assets
and  all  other  assets,  required  or useful for operating its internet service
provider  business but specifically excluding its Bluegate assets.  The proposed
sales  price  is  $1,150,000 in the form of (a) $900,000 cash at Closing and (b)
$250,000  in  the  form  of  a  one-year,  6%  secured  promissory  note.

On  April  13,  2004,  MobilePro  lent  the Company $400,000 at a rate of twelve
percent  (12%)  per  annum  with  a maturity date of July 12, 2004.  The loan is
secured  by (a) a security interest in the assets and  properties of the Company
and  (b)  all  outstanding  common  stock  held  by  the  Company's CEO, Manfred
Sternberg.  As  additional  security,  Manfred  Sternberg, personally guaranteed
repayment  of  the  loan.

MobilePro  is  in  the  process  of  conducting  due  diligence.

ITEM  3.  EVALUATION  OF  DISCLOSURE  CONTROLS  AND  PROCEDURES

Manfred  Sternberg,  our  Chief  Executive  Officer and Mike McDonald, our Chief
Financial  Officer,  have  concluded that our disclosure controls and procedures
are  appropriate  and  effective.  They  have  evaluated  these  controls  and
procedures as of a date within 90 days of the filing date of this report of Form
10-QSB.  There  were no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to the date of
this  evaluation,  including  any  corrective actions with regard to significant
deficiencies  and  material  weaknesses.


                                      I-4
<PAGE>
                                    PART   II

ITEM  2.   CHANGES  IN  SECURITIES

During  the  calendar  quarter  ending  March  31,  2004 the Company completed a
placement  of 4,382,445 shares of common stock with investors located outside of
the  United  States.  The  shares  were  offered  pursuant  to an exemption from
registration afforded by Regulation S to the Securities Act of 1933. Shares sold
pursuant  to  Regulation S are deemed restricted and may not be sold to any U.S.
Person  (as that term is defined in the Regulation) for a period of one (1) year
from date of sale. Thereafter, the shares will be subject to the restrictions of
Rule  144. The Company received a total of $227,587 for the shares. The proceeds
were  used  for  general  business  purposes.

Among  other  things,  the placement agreement provided for the Company to issue
shares  of  Regulation  S  stock at prices substantially below the quoted market
price  of  the  shares

The  transactions  during  the  quarter  ended  March  31, 2004 were as follows:

      Date  Issued         Title  of  Securities        Shares
----------------------------------------------------------------
     January 6, 2004       Common stock                   43,750
     January 9, 2004       Common stock                1,000,000
    January 20, 2004       Common stock                1,000,000
    January 27, 2004       Common stock                  266,000
    January 30, 2004       Common stock                   60,000
    February 2, 2004       Common stock                   70,000
    February 5, 2004       Common stock                   90,000
   February 17, 2004       Common stock                   54,000
   February 23, 2004       Common stock                  121,690
   February 27, 2004       Common stock                  132,800
       March 5, 2004       Common stock                  711,200
      March 10, 2004       Common stock                   25,000
      March 23, 2004       Common stock                   14,000
      March 26, 2004       Common stock                  700,000
      March 29, 2004       Common stock                   10,500
      March 31, 2004       Common stock                   83,505
                                                     -----------
                                                       4,382,445
                                                     ===========

The Company issued common stock to an attorney for legal services.  These
transactions are exempt pursuant to Section 4(2) of the Securities Act of 1933.
For the three months ended March 31, 2004, 50,000 shares aggregating  $12,000
were issued.

     Date  Issued          Title  of  Securities             Shares
     ------------          ---------------------             ------
     February 18, 2004         Common  Shares                50,000

ITEM  5.   OTHER  EVENTS

The  Board has not adopted a formal policy with regard to the process to be used
for  identifying  and  evaluating  nominees  for  director.  At  this  time, the
consideration  of  candidates  for  the  Board  of  Directors  is in the Board's
discretion,  which  we  believe is adequate based on the size of the Company and
each  current  board  member's  qualifications.

On  April  7,  2004  the  Company entered into a letter of intent with MobilePro
Corp.  ("MobilePro") to sell substantially all of its broadband internet service
related  assets, including (but not limited to) all cash, receivables (including
written  off  receivables),  inventory,  network  and other equipment, property,
customer  lists,  network relationships, billing arrangements, intangible assets
and  all  other  assets,  required  or useful for operating its internet service
provider  business but specifically excluding its Bluegate assets.  The proposed
sales  price  is  $1,150,000 in the form of (a) $900,000 cash at Closing and (b)
$250,000  in  the  form  of  a  one-year,  6%  secured  promissory  note.

On  April  13,  2004,  MobilePro  lent  the Company $400,000 at a rate of twelve
percent  (12%)  per  annum  with  a maturity date of July 12, 2004.  The loan is
secured  by (a) a security interest in the assets and  properties of the Company
and  (b)  all  outstanding  common  stock  held  by  the  Company's CEO, Manfred
Sternberg.  As  additional  security,  Manfred  Sternberg, personally guaranteed
repayment  of  the  loan.

MobilePro  is  in  the  process  of  conducting  due  diligence.


                                      II-1
<PAGE>
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     (A)  Exhibits

     Exhibit  31.1  -  Certification  of  Chief  Executive  Officer  of Crescent
     Communications, Inc required by Rule 13a - 14(1) or Rule 15d - 14(a) of the
     Securities  Exchange Act of 1934, as adopted pursuant to Section 302 of the
     Sarbanes-Oxley  Act  of  2002.

     Exhibit  31.2  -  Certification  of  Chief  Financial  Officer  of Crescent
     Communications, Inc required by Rule 13a - 14(1) or Rule 15d - 14(a) of the
     Securities  Exchange Act of 1934, as adopted pursuant to Section 302 of the
     Sarbanes-Oxley  Act  of  2002.

     Exhibit  32.1  --  Certification  of  Chief  Executive  Officer of Crescent
     Communications,  Inc  pursuant  to Section 906 of the Sarbanes-Oxley Act of
     2002  and  Section  1350  of  18  U.S.C.  63.

     Exhibit  32.2  --  Certification  of  Chief  Financial  Officer of Crescent
     Communications,  Inc  pursuant  to Section 906 of the Sarbanes-Oxley Act of
     2002  and  Section  1350  of  18  U.S.C.  63.

     (B)  Reports on Form 8-K

     None.

                                   SIGNATURES


In  accordance  with the Exchange Act, the registrant caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized




                                       Crescent Communications, Inc.

Date:  May 17, 2004                    /s/  Manfred Sternberg
                                       ----------------------

                                       Manfred Sternberg,
                                       Chief Executive Officer



                                       Crescent Communications, Inc.

Date:  May 17, 2004                    /s/  Mike McDonald
                                       ------------------
                                       Mike McDonald,
                                       Chief Financial Officer


                                      II-2
<PAGE>