<PAGE>
                                  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 Period ended September 30, 2001

                                       OR

          [ ] Transition Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                         Commission File Number 0-13981


                      ELECTRONIC TELE-COMMUNICATIONS, INC.
             (Exact name of registrant as specified in its charter)

        Wisconsin                                         39-1357760
(State of incorporation)                       (IRS Employer Identification No.)

             1915 MacArthur Road     Waukesha, Wisconsin                53188
(Address of principal executive offices)                              (Zip Code)

                                 (262) 542-5600
              (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
                             -----                  -----


As of November 1, 2001, there were outstanding 2,009,149 shares of Class A
common stock and 499,998 shares of Class B common stock. The Class B common
stock, 87.9% of which is owned by affiliates, is the only voting stock. The
Class B common stock is not traded on an exchange.


<PAGE>


                      ELECTRONIC TELE-COMMUNICATIONS, INC.

                                      INDEX


<TABLE>
<CAPTION>
                                                                                                    Page
<S>                                                                                                 <C>
PART I   Financial Information

         Item 1.  Financial Statements

                  Balance Sheets ...................................................................   2

                  Statements of Operations .........................................................   3

                  Statements of Cash Flows .........................................................   4

                  Notes to Financial Statements ....................................................   5

         Item 2.  Management's Discussion and Analysis of Financial Condition
                    and Results of Operations ......................................................   6

         Item 3.  Quantitative and Qualitative Disclosures about Market Risk .......................   8

PART II  Other Information

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

SIGNATURES .........................................................................................   8
</TABLE>


                                       -1-


<PAGE>
                      ELECTRONIC TELE-COMMUNICATIONS, INC.
                                 BALANCE SHEETS
                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                                                  (UNAUDITED)          (Note 1)
                                                                                 SEPTEMBER 30         December 31
                                                                                     2001                2000
                                                                              ----------------------------------------
<S>                                                                           <C>                     <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                                        $    39,952           $    242,612
  Trade accounts receivable, net                                                       328,214              1,337,084
  Inventories (Note 2)                                                               1,492,822              1,526,031
  Net investment in installment sales contracts                                        405,232                387,365
  Prepaid expenses and other current assets                                            160,390                130,912
                                                                              ----------------------------------------
    Total current assets                                                             2,426,610              3,624,004

PROPERTY, PLANT AND EQUIPMENT, NET                                                     480,972              1,394,219
NET INVESTMENT IN INSTALLMENT SALES CONTRACTS                                          706,916                995,427
EXCESS COST OVER NET ASSETS ACQUIRED                                                   798,160                820,852
                                                                              ----------------------------------------

Total Assets                                                                       $ 4,412,658           $  6,834,502
                                                                              ========================================

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Revolving credit facility                                                        $         -           $    870,000
  Accounts payable                                                                     101,105                137,974
  Accrued expenses                                                                     383,857                504,429
  Income taxes payable                                                                  63,643                 12,606
  Deferred revenue                                                                     128,463                 87,270
  Deferred gain on sale of building                                                     88,674                      -
                                                                              ----------------------------------------
    Total current liabilities                                                          765,742              1,612,279

DEFERRED GAIN ON SALE OF BUILDING                                                      391,441                      -
                                                                              ----------------------------------------

    Total liabilities                                                                1,157,183              1,612,279

STOCKHOLDERS' EQUITY:
  Preferred stock, authorized 5,000,000 shares, none issued                                  -                      -
  Class A common stock, authorized 10,000,000 shares,
    par value $.01, issued and outstanding 2,009,149 shares                             20,091                 20,091
  Class B common stock, authorized 10,000,000 shares,
    par value $.01, issued and outstanding 499,998 shares                                5,000                  5,000
  Additional paid-in capital                                                         3,335,647              3,335,647
  Retained earnings (deficit)                                                         (105,263)             1,861,485
                                                                              ----------------------------------------
    Total stockholders' equity                                                       3,255,475              5,222,223
                                                                              ----------------------------------------

Total Liabilities and Stockholders' Equity                                         $ 4,412,658           $  6,834,502
                                                                              ========================================
</TABLE>

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



                                      -2-
<PAGE>
                      ELECTRONIC TELE-COMMUNICATIONS, INC.
                            STATEMENTS OF OPERATIONS

     THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2001 AND 2000 -
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED                      NINE MONTHS ENDED
                                                                      SEPTEMBER 30                           SEPTEMBER 30
                                                         ------------------------------------   ------------------------------------
                                                                 2001              2000                 2001              2000
                                                         ------------------------------------   ------------------------------------
<S>                                                      <C>                  <C>               <C>                    <C>
NET SALES                                                $   918,605          $ 1,575,630          $ 3,805,355          $ 8,041,410

COST OF PRODUCTS SOLD                                        652,614              923,227            2,412,008            4,185,205
                                                         ------------------------------------   ------------------------------------

GROSS PROFIT                                                 265,991              652,403            1,393,347            3,856,205

OPERATING EXPENSES:
  General and administrative                                 215,258              349,906              820,628              994,422
  Marketing and selling                                      308,529              559,607            1,323,657            1,889,439
  Research and development                                   273,032              493,335            1,174,427            1,372,741
                                                         ------------------------------------   ------------------------------------
                                                             796,819            1,402,848            3,318,712            4,256,602
                                                         ------------------------------------   ------------------------------------

LOSS FROM OPERATIONS                                        (530,828)            (750,445)          (1,925,365)            (400,397)

OTHER EXPENSE:
  Interest expense                                            (3,880)              (5,693)             (38,383)             (17,663)
                                                         ------------------------------------   ------------------------------------

LOSS BEFORE INCOME TAXES                                    (534,708)            (756,138)          (1,963,748)            (418,060)

  Income taxes (benefit)                                       1,000              (40,900)               3,000                3,000

                                                         ------------------------------------   ------------------------------------
NET LOSS                                                 $  (535,708)         $  (715,238)         $(1,966,748)         $  (421,060)
                                                         ====================================   ====================================

BASIC AND DILUTED
 LOSS PER SHARE:
  Class A common                                         $     (0.21)         $     (0.29)         $     (0.78)         $     (0.17)
  Class B common                                         $     (0.21)         $     (0.29)         $     (0.78)         $     (0.17)
</TABLE>






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

                                      -3-

<PAGE>
                      ELECTRONIC TELE-COMMUNICATIONS, INC.
                            STATEMENTS OF CASH FLOWS
       NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2001 AND 2000 - (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                     NINE MONTHS ENDED SEPTEMBER 30
                                                                              ----------------------------------------------
                                                                                             2001                    2000
                                                                              ----------------------------------------------
<S>                                                                           <C>                            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings (loss)                                                                   $ (1,966,748)            $ (421,060)
  Adjustments to reconcile net earnings to net cash
    provided by (used in) operating activities:
      Depreciation and amortization                                                          210,970                253,684
      (Gain) loss from sale of property, plant and equipment                                 (17,231)                  (235)
        Changes in operating assets and liabilities:
          Accounts receivable                                                              1,008,870                213,071
          Inventories                                                                         33,209               (205,705)
          Net investment in installment sales contracts                                      270,644                (27,967)
          Prepaid expenses and other assets                                                  (29,478)                15,328
          Accounts payable and accrued expenses                                             (157,441)               126,935
          Income taxes                                                                        51,037                 86,192
          Deferred revenue                                                                    41,193                 38,528
                                                                              ----------------------------------------------
            Total adjustments                                                              1,411,773                499,831
                                                                              ----------------------------------------------
        Net cash provided by (used in) operating activities                                 (554,975)                78,771
                                                                              ----------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                                                       (42,581)              (179,572)
  Proceeds from sale of property, plant and equipment                                      1,264,896                      -
                                                                              ----------------------------------------------
        Net cash provided by (used in) investing activities                                1,222,315               (179,572)
                                                                              ----------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Payments) borrowings on revolving credit facility, net                                   (870,000)              (110,000)
  Proceeds from issuance of common stock                                                           -                    300
                                                                              ----------------------------------------------
        Net cash provided by (used in) financing activities                                 (870,000)              (109,700)
                                                                              ----------------------------------------------

Net increase (decrease) in cash and cash equivalents                                        (202,660)              (210,501)

Cash and cash equivalents at beginning of year                                               242,612                307,652

                                                                              ----------------------------------------------
Cash and cash equivalents at end of period                                              $     39,952             $   97,151
                                                                              ==============================================

Supplemental disclosures of cash flow information:
  Cash received from income tax refunds                                                 $     50,000             $  141,000
  Cash paid for income taxes                                                                   1,963                 57,883
  Cash paid for interest expense                                                              43,921                 17,481
</TABLE>



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


                                      -4-

<PAGE>


                      ELECTRONIC TELE-COMMUNICATIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                        SEPTEMBER 30, 2001 - (UNAUDITED)


1. BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared by the
Company in accordance with accounting principles generally accepted in the
United States of America (GAAP) for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments, which consist only of normal recurring accruals,
considered necessary for a fair presentation have been included. Operating
results for the three-month and nine-month periods ended September 30, 2001, are
not necessarily indicative of the results that may be expected for the year
ended December 31, 2001.

The balance sheet at December 31, 2000, has been derived from the audited
financial statements at that date, but does not include all of the information
and footnotes required by GAAP for complete financial statements.

For further information, refer to the financial statements and footnotes thereto
included in the Company's 2000 Annual Report to Shareholders.

2. INVENTORIES

Inventories consisted of the following:
<TABLE>
<CAPTION>
                                                                       SEPTEMBER 30            December 31
                                                                           2001                  2000
                                                                       -----------            -----------
<S>                                                                    <C>                    <C>
                                  Raw materials and supplies           $   501,807            $   557,453
                                  Work-in-process and finished goods       811,978                776,630
                                  Maintenance and demo parts               304,985                343,676
                                  Reserve for obsolescence                (125,948)              (151,728)
                                                                       -----------            -----------

                                  Total inventories                    $ 1,492,822            $ 1,526,031
                                                                       ===========            ===========
</TABLE>

3. FUTURE ACCOUNTING CHANGE

In June 2001, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 141, "Business Combinations", and
SFAS No. 142, "Goodwill and Other Intangible Assets." SFAS No. 141 supersedes
Accounting Principles Board (APB) Opinion No. 16, "Business Combinations", and
SFAS No. 38, "Accounting for Preacquisition Contingencies of Purchased
Enterprises." SFAS No. 141 requires the use of the purchase method of accounting
for business combinations initiated after June 30, 2001. SFAS No. 142 supersedes
APB Opinion No. 17, "Intangible Assets." SFAS No. 142 addresses how intangible
assets acquired outside of a business combination should be accounted for upon
acquisition and how goodwill and other intangible assets should be accounted for
after they have been initially recognized. SFAS No. 142 eliminates the
amortization for goodwill and other intangible assets with indefinite lives.
Other intangible assets with a finite life will be amortized over their useful
life. Goodwill and other intangible assets with indefinite useful lives shall be
tested for impairment annually or more frequently if events or changes in
circumstances indicate that the asset may be impaired. SFAS No. 142 is effective
for fiscal years beginning after December 15, 2001. The Company's adoption of
SFAS No. 142 on January 1, 2002 is still being assessed and management, at this
time, cannot determine the effect that adoption of SFAS No. 142 may have on the
financial statements of the Company.




                                       -5-


<PAGE>


                      ELECTRONIC TELE-COMMUNICATIONS, INC.
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Net sales were $918,605 and $1,575,630 for the three-month periods ended
September 30, 2001 and 2000, respectively. Net sales for the nine-month period
ended September 30, 2001, were $3,805,355, compared to $8,041,410 for the
corresponding period of 2000. The significant decrease in net sales for the
three-month and nine-month periods ended September 30, 2001, was due primarily
to lower customer demand for the Company's interactive voice information
systems. The Company's customers have been severely impacted by slowing economic
conditions, especially in the domestic telecommunications industry, where
falling stock prices, financial losses, and workforce reductions have adversely
impacted customers' buying decisions. In addition, the terrorist attacks of
September 11, 2001, further slowed the customers' purchasing cycle. Included in
net sales were revenues from sales of the Company's interactive voice
information systems of $1,126,790 or 30% of net sales, and $5,047,457 or 63% of
net sales, for the nine-month periods ended September 30, 2001 and 2000,
respectively. Revenues from operating leases, installment sales contracts, and
services were $2,461,035 or 65% of net sales for the 2001 nine-month period,
compared to $2,690,268 or 33% of net sales for the corresponding 2000 nine-month
period. The decrease in sales dollars was due primarily to lower lease revenue
from the Company's time weather temperature systems and lower installation
sales. Product pricing for the Company's equipment remained relatively constant
between periods, and inflation did not have a material impact on revenues.

For the three-month periods ended September 30, 2001 and 2000, the gross profit
percentage was 29% and 41%, respectively. Gross profit as a percentage of net
sales for the nine-month periods ended September 30, 2001 and 2000, were 37% and
48%, respectively. The decrease in gross profit percentage in the 2001
three-month and nine-month periods was due to the effect of spreading fixed
manufacturing costs over significantly lower sales volume.

For the three-month periods ended September 30, 2001 and 2000, total operating
expenses were $796,819 or 87% of net sales, and $1,402,848 or 89% of net sales,
respectively. Total operating expenses were $3,318,712 or 87% of net sales for
the nine-month period ended September 30, 2001, compared to $4,256,602 or 53%
for the corresponding period of 2000. General and administrative expenses, sales
and marketing expenses, and research and development expenses were all
significantly lower in dollars for the 2001 three-month and nine-month periods
due to cost savings programs and staff downsizing implemented beginning late in
the first quarter of 2001 and continuing into the third quarter. The staff
downsizing has reduced the Company's workforce by approximately 50% and included
all departments within the Company. The reductions implemented since the first
quarter of 2001 will save the Company approximately $3,000,000 on an annualized
basis.

Net other expenses were $38,383 for the nine-month period ended September 30,
2001, compared to $17,663 for the corresponding nine-month period of 2000. The
increase between periods of net other expenses was due to more interest expense
incurred for bank borrowings during the 2001 nine-month period. However,
interest expense was reduced to $3,880 in the three-month period ended September
30, 2001, due to the payoff of all bank borrowings in July of 2001.

For the three-month period ended September 30, 2001, there was a net loss of
$535,708, compared to a net loss of $715,238 for the three-month period ended
September 30, 2000. Net loss for the nine-month period ended September 30, 2001,
was $1,966,748 compared to a net loss of $421,060 for the corresponding period
of 2000. The loss in the 2001 periods was due primarily to significantly lower
sales, partially offset by cost savings programs and staff downsizing. The
income tax expense in the 2001 and 2000 periods was related to minimum state
taxes due in various states.




                                       -6-

<PAGE>

               ELECTRONIC TELE-COMMUNICATIONS, INC. AND SUBSIDIARY
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (CONTINUED)
LIQUIDITY AND SOURCES OF CAPITAL

Working capital was $1,660,868 as of September 30, 2001, compared to $2,011,725
at December 31, 2000. The decrease in working capital was due primarily to the
net loss, partially offset by the proceeds from the sale and leaseback
transaction for the Company's building and land in Wisconsin. Cash used in
operating activities was $554,975 for the nine-month period ended September 30,
2001, compared to cash provided of $78,771 for the corresponding 2000 nine-month
period. The cash used in operating activities in the 2001 period was due
primarily to the net loss and a decrease in accrued expenses, partially offset
by a decrease in accounts receivable. The significant decrease in accounts
receivable was due to lower sales and to the timing of several large sales made
in the fourth quarter of 2000 that were paid during early 2001. The cash
provided by operating activities in the 2000 nine-month period was due primarily
to a decrease in accounts receivable and an increase in accrued expenses,
partially offset by a net loss and an increase in inventories.

For the nine-month period ended September 30, 2001, cash provided by a reduction
in accounts receivable and the sale and leaseback transaction was used to
finance the net loss, purchases of capital equipment and payoff of bank
borrowings. For the nine-month period ended September 30, 2000, cash provided by
a reduction in accounts receivable and an increase in accrued expenses was used
to finance the net loss, an increase in inventories, payment of bank borrowings,
and purchases of capital equipment.

On July 18, 2001, the Company entered into a sale and leaseback transaction with
an affiliate for the building and associated land located in Waukesha, Wisconsin
which serves as the Company's principal office and manufacturing facility.
Details of the transaction were included in a Current Report on Form 8-K filed
on July 18, 2001. The proceeds from the transaction were used to pay off the
entire $1,010,000 of bank borrowing and add to the Company's working capital.
The Company ended its borrowing relationship with the bank subsequent to the
full repayment of all borrowings and is currently seeking additional sources of
financing.

As a result of the downturn in the economy and its effect on the Company's sales
volume and operations, the Company has reduced its workforce by almost 50% with
a combination of terminations and lay-offs. The Company will continue to monitor
the situation to determine if additional cost savings measures need to be
implemented to improve cash flow.

The Company is currently seeking additional sources of financing and liquidity.
There is no assurance that it will be successful in this endeavor. If new
financing cannot be secured, the Company's cash flow may not be adequate to fund
its operations.

FORWARD LOOKING INFORMATION

From time to time, information provided by the Company, statements made by its
employees, and information included in its filings with the Securities and
Exchange Commission which are not historical facts are forward-looking in nature
and relate to trends and events that may affect the Company's future financial
position and operating results. Such forward-looking information is provided
pursuant to the Safe Harbor provision of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties including, but not
limited to, improved conditions in the Company's markets, the availability of
adequate working capital and credit facilities, the ability to successfully
complete development of and bring to market new products for which there is
customer demand, technology changes, backlog, acquisitions, status of the
economy, governmental regulations, sources of supply, expense structure, product
mix, major customers, competition, litigation, and other risk factors detailed
in the Company's filings of Form 10-K with the Securities and Exchange
Commission. Investors are encouraged to consider the risks and uncertainties
included in those filings.



                                       -7-
<PAGE>

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company does not use derivative financial instruments for speculative or
trading purposes. The Company is exposed to market risk related to changes in
short-term interest rates as a result of borrowings under its revolving credit
facility. However, due to the short-term nature and low amount of borrowings,
any impact on the Company's earnings due to changes in interest rates would be
insignificant.



                           PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)    Exhibits

                      Exhibit 11       Computation of Earnings Per Share

         (b)    Reports on Form 8-K

                      None.



                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                           ELECTRONIC TELE-COMMUNICATIONS, INC.



                                           /s/ Dean W. Danner
                                               --------------------------------
                                                       Dean W. Danner
                                                       President and
                                                   Chief Executive Officer



                                           /s/ Jeffrey M. Nigl
                                               --------------------------------
                                                      Jeffrey M. Nigl
                                               Vice President, Chief Financial
                                               Officer, Treasurer and Principal
                                                    Accounting Officer

Date: November 12, 2001










                                       -8-