U.S. Securities and Exchange Commission
                             Washington D. C., 20549

                                   Form 10-QSB

(Mark One)
( X )    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934
         For the quarterly period ended September 30, 2000

(    )   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                  EXCHANGE ACT
         For the transition period from__________ to ___________.


                         Commission file number 0-20924


                           Reconditioned Systems, Inc.
        (Exact name of small business issuer as specified in its charter)

            Arizona                                        86-0576290
(State or other  jurisdiction of               (IRS Employer Identification No.)
incorporation  or  organization)

                    444 West Fairmont, Tempe, Arizona 85282
                    (Address of principal executive offices)

                                  480-968-1772
                           (Issuer's telephone number)

       -------------------------------------------------------------------
(Former name,former address and former fiscal year,if changed since last report)







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 filing requirements for the past 90 days. Yes X No_____.




State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: as of October 31, 2000, the number of
shares outstanding of the Registrant's common stock was 1,227,591.


Transitional Small Business Disclosure Format.       Yes ___No  X  .
                                                              ------


                                     Page 1
<PAGE>
Item 1









                          PART 1 - FINANCIAL STATEMENTS



                           RECONDITIONED SYSTEMS, INC.


                         Unaudited Financial Statements

                               September 30, 2000




























                                     Page 2
<PAGE>


                           RECONDITIONED SYSTEMS, INC.
                                 BALANCE SHEETS
                           September 30, 2000 and 1999
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                    2000              1999
                                                    ----              ----
                                     ASSETS
<S>                                                 <C>               <C>

Current Assets:
  Cash and cash equivalents                         $1,195,076        $1,523,570
  Accounts receivable - trade, net of allowance
    for doubtful accounts of approximately
    $19,000 and $35,000,  respectively               1,911,221         1,391,598
  Inventory                                          1,427,316           857,161
  Prepaid expenses and other current assets            207,838            79,620
                                                       -------            ------

          Total current assets                       4,741,451         3,851,949
                                                     ---------         ---------

Property and Equipment, net:                           259,590           220,661
                                                       -------           -------

Other Assets:
       Notes receivable - officer                       75,000            75,000
       Refundable deposits                              12,896            13,036
       Other                                            55,354            37,190
                                                        ------            ------

                                                       143,250           125,226
                                                       -------           -------

Total Assets                                        $5,144,291        $4,197,836
                                                    ==========        ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
       Accounts payable                               $819,989          $425,516
       Customer deposits                               216,336           103,411
       Accrued expenses and other current
       liabilities                                     312,105           625,177
                                                       -------           -------

               Total current liabilities             1,348,430         1,154,104
                                                     ---------         ---------

Stockholders' Equity:
       Common stock, no par value; 20,000,000
               shares authorized                    $4,588,381        $4,587,586
       Accumulated deficit                           (176,734)       (1,224,532)
                                                     ---------       -----------

                                                     4,411,647         3,363,054
       Less: treasury stock, 246,225 and
             125,785 shares respectively,
             at cost                                 (615,786)         (319,322)
                                                     ---------         ---------

                                                     3,795,861         3,043,732
                                                     ---------         ---------

Total Liabilities and Stockholders' Equity          $5,144,291        $4,197,836
                                                    ==========        ==========

</TABLE>



                                     Page 3
<PAGE>


                           RECONDITIONED SYSTEMS, INC.
                            STATEMENTS OF OPERATIONS
      For the Three and Six Month Periods Ended September 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>
                        Three Months Ended          Six Months Ended
                          September 30,               September 30,
                            2000          1999          2000          1999
                            ----          ----          ----          ----
<S>                         <C>           <C>           <C>           <C>

Sales                       $3,843,089    $2,458,090    $7,407,994    $4,755,886

Cost of sales                3,001,066     1,834,247     5,825,895     3,551,262
                             ---------     ---------     ---------     ---------

Gross profit                   842,023       623,843     1,582,099     1,204,624

Selling & administrative
  expenses                     502,426       427,823       982,474       850,962
Severance charge                     0       292,984             0       292,984
                                     -       -------             -       -------

Income (loss) from
  operations                   339,597      (96,964)       599,625        60,678

Other income (expense):
       Interest income          18,782        19,078        34,425        35,246
       Other                       381           156         6,127           156
                                   ---           ---         -----           ---

Net income (loss) before
  provision for income taxes   358,760      (77,730)       640,177        96,080

Income tax expense             107,804             0       197,345             0
                               -------             -       -------             -

Net income (loss)             $250,956     $(77,730)      $442,832       $96,080
                              --------     ---------      --------       -------

Basic earnings (loss) per
  share (Notes 1 and 2)          $0.19       $(0.06)         $0.34         $0.07
                                 =====       =======         =====         =====

Basic weighted average number
  of shares outstanding      1,293,132     1,399,441     1,310,413     1,428,837
                             =========     =========     =========     =========

Diluted earnings (loss) per common
  and common equivalent share
  (Notes 1 and 2)                $0.18       $(0.06)         $0.31         $0.06
                                 =====       =======         =====         =====

Diluted weighted average number
  of shares outstanding      1,423,193     1,399,441     1,446,472     1,632,524
                             =========     =========     =========     =========
</TABLE>












                                     Page 4
<PAGE>


                           RECONDITIONED SYSTEMS, INC.
                       STATEMENTS OF STOCKHOLDERS' EQUITY
        For the Year Ended March 31, 2000 and the Six Month Period Ended
                               September 30, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>
                      Common      Common      Retained
                      Stock       Stock       Earnings     Treasury
                      Shares      Amount      (Deficit)    Stock          Total
------------------    ---------   ----------  ------------  --------  ----------
<S>                   <C>         <C>        <C>           <C>        <C>

Balance at
 March 31, 1999       1,473,816   $4,586,982 $(1,320,612)   $      -  $3,266,370

Purchase of
 Treasury Stock       (150,000)            -           -   (368,413)   (368,413)

Transfer of shares
 to ESP Plan              3,868          594           -       9,200       9,794

Net Income                    -            -     701,046           -     701,046
                      ---------   ----------  ----------  ----------  ----------

Balance at
 March 31, 2000       1,327,684   $4,587,576  $(619,566)  $(359,213)  $3,608,797

Purchase of
 Treasury Stock       (100,800)            -           -   (258,253)  ( 258,253)

Transfer of shares
 to ESP Plan                707          805           -       1,680       2,485

Net income                    -            -     442,832           -     442,832
                      ---------   ----------  ----------  ----------  ----------

Balance at
 September 30, 2000   1,227,591   $4,588,381  $(176,734)  $(615,786)  $3,795,861
                      =========   ==========  ==========  ==========  ==========
</TABLE>






                                     Page 5
<PAGE>


                           RECONDITIONED SYSTEMS, INC.
                            STATEMENTS OF CASH FLOWS
      For the Three and Six Month Periods Ended September 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>
                                 Three Months Ended     Six Months Ended
                                   September 30,          September 30,
                                     2000        1999       2000        1999
                                     ----        ----       ----        ----
<S>                                  <C>         <C>        <C>         <C>

Cash and cash equivalents provided
  by operating activities            $443,493    $294,171   $603,716    $665,451

Cash and cash equivalents used by
  investing activities               (38,439)    (39,885)   (73,650)    (63,988)

Cash and cash equivalents used by
  financing activities              (258,627)     (9,968)  (255,768)   (181,218)
                                    ---------     -------  ---------   ---------

Increase in cash and cash
  equivalents                         146,427     244,318    274,298     420,245

Cash and cash equivalents at
  beginning of period               1,048,649   1,279,252    920,778   1,103,325
                                    ---------   ---------    -------   ---------

Cash and cash equivalents at end
  of period                        $1,195,076  $1,523,570 $1,195,076  $1,523,570
                                   ==========  ========== ==========  ==========
</TABLE>










                                     Page 6
<PAGE>



                           RECONDITIONED SYSTEMS, INC.
                          Notes to Financial Statements
                                   (Unaudited)
 -------------------------------------------------------------------------------

                                     Note 1.
                   Summary of Significant Accounting Policies
 -------------------------------------------------------------------------------

Basis of Presentation:

         The  unaudited  financial  statements  include  only the  accounts  and
         transactions of the Company.

Interim Financial Statements:

         The unaudited  interim  financial  statements  include all  adjustments
         (consisting  of normal  recurring  accruals)  which,  in the opinion of
         management,  are necessary.  Operating results for the six months ended
         September 30, 2000 are not  necessarily  indicative of the results that
         may be  expected  for the entire  year  ending  March 31,  2001.  These
         financial   statements  have  been  prepared  in  accordance  with  the
         instructions  to Form  10-QSB and do not  contain  certain  information
         required by generally accepted accounting principles.  These statements
         should be read in conjunction  with the financial  statements and notes
         thereto  included in the Company's Form 10-KSB for the year ended March
         31, 2000.

Earnings Per Common and Common Equivalent Share:

         Basic  earnings  per share  include no  dilution  and are  computed  by
         dividing  income  available  to  common  stockholders  by the  weighted
         average number of shares outstanding for the period.

         Diluted  earnings per share amounts are computed  based on the weighted
         average  number of shares  actually  outstanding  plus the shares  that
         would be  outstanding  assuming the exercise of dilutive stock options,
         all of which are considered to be common stock equivalents.  The number
         of shares that would be issued from the  exercise of stock  options has
         been  reduced  by the number of shares  that could have been  purchased
         from the proceeds at the average market price of the Company's stock.

                                     Page 7
<PAGE>



                           RECONDITIONED SYSTEMS, INC.
                          Notes to Financial Statements
                                   (Unaudited)
 -------------------------------------------------------------------------------

                                     Note 2.
                               Earnings Per Share
 -------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                              Three Months Ended       Six Months Ended
                                September 30,            September 30,
                                  2000        1999         2000         1999
                                  ----        ----         ----         ----
<S>                              <C>         <C>          <C>          <C>

Basic EPS

Net income (loss)                 $250,956   $(77,730)     $442,832      $96,080
                                  ========   =========     ========      =======

Weighted average number of
  shares outstanding             1,293,132   1,399,441    1,310,413    1,428,837

Basic earnings (loss) per
  share                              $0.19     $(0.06)        $0.34        $0.07
                                     =====     =======        =====        =====

Diluted EPS

Net income (loss)                 $250,956   $(77,730)     $442,832      $96,080
                                  ========   =========     ========      =======

Weighted average number of
  shares outstanding             1,293,132   1,399,441    1,310,413    1,428,837

Effect of dilutive securities:
  Stock options                    130,061           0      136,059      203,687
                                   -------           -      -------      -------

Total common shares + assumed
  conversions                    1,423,193   1,399,441    1,446,472    1,632,524
                                 =========   =========    =========    =========

Per Share Amount                     $0.18     $(0.06)        $0.31        $0.06
                                     =====     =======        =====        =====
</TABLE>






                                     Page 8
<PAGE>


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

The  statements  contained  in this  report  that are not  historical  facts may
constitute "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,  and are subject to the safe harbors  created  thereby.
These forward-looking statements involve risks and uncertainties, including, but
not limited to, the risk that  Reconditioned  Systems,  Inc. (the "Company") may
not be able to maintain its increased  sales  volume,  the risk that the Company
may not see  improved  profitability  and the risk that the Company  will not be
successful in developing clone replacements for significant  inventory parts. In
addition, the Company's business, operations and financial condition are subject
to substantial  risks that are described in the Company's reports and statements
filed from time to time with the Securities and Exchange  Commission,  including
the  Company's  Annual Report on Form 10-KSB for the fiscal year ended March 31,
2000.

Results of Operations

SALES REVENUE
The Company  reported  sales revenue of $3.84 million for the three month period
ended September 30, 2000  (hereinafter  the "reporting  quarter") as compared to
$2.46  million  for the  quarter  ended  September  30,  1999  (hereinafter  the
"comparable  quarter"),  resulting in an increase of $1.38 million or 56%. Sales
revenue for the six month  period  ended  September  30, 2000  (hereinafter  the
"reporting  period")  totaled $7.4 million as compared to $4.75  million for the
six month period ended September 30, 1999 (hereinafter the "comparable period"),
a $2.65  million or 56% increase.  Although the  Company's  retail sales saw the
greatest improvement, wholesale sales also improved significantly.  Retail sales
accounted for 42% of the total sales for the reporting  quarter,  up from 39% in
the  comparable  quarter.  Retail sales were 46% of the Company's  sales for the
reporting period, as compared to 41% in the comparable period.

Retail sales totaled $1.65 million during the reporting quarter and $3.5 million
during the  reporting  period,  up 71% and 79% over the  comparable  quarter and
comparable  period,  respectively.  Management  believes  these  increases are a
result of the Company's  continued  focus on building a stronger retail business
operating as "Total Office  Interiors." This was achieved by the addition of the
Company's  new sales  manager in July 1999,  the  expansion of new furniture and
accessory product-lines,  increased commitment to improving customer service and
sales support,  the continued  development of qualified  sales personnel and the
opening of the Company's retail showroom.

Wholesale sales totaled $2.19 million for the reporting quarter and $1.5 million
for the comparable quarter,  up 46.8%.  Wholesale sales for the reporting period
totaled $3.9 million,  as compared to $2.8 million during the comparable period,
an increase of 39.3%.  These  increases  were  primarily due to improved  market
demand following a general industry  slowdown during the fiscal year ended March
31, 2000.

GROSS MARGIN
Despite the higher  percentage of retail to wholesale sales, the Company's gross
profit  margin for the reporting  quarter  declined  3.47%,  from 25.38% for the
comparable  quarter to 21.91% for the reporting  quarter.  Gross margins for the
reporting period also declined  relative to the comparable  period,  down 3.97%,
from 25.33% for the comparable period to 21.36% for the reporting period.  These
declines were  primarily  attributable  to higher product costs due to increased
demand  for  used  Haworth  inventories  purchased  on the  aftermarket  and the
Company's demand for a more highly competitive product-mix. This trend of higher
product costs was  identified in the prior  quarter.  The Company has focused on
improving  used  inventory  buying  procedures  and has seen  improvement in the
product costs during the reporting quarter as compared to the prior quarter.

                                     Page 9
<PAGE>



OPERATING EXPENSES
The Company's selling expenses  decreased from 11.31% of sales in the comparable
quarter  and 11.42% of sales in the  comparable  period to 8.7% of sales for the
reporting  quarter and 8.86% of sales for the  reporting  period.  The Company's
retail  sales  staff is paid  commissions  based upon the gross  profit of their
sales.  As a result,  the lower  gross  margins  earned on the  Company's  sales
revenues during the reporting  period also resulted in lower selling expenses as
a percentage of sales for the reporting period.

The Company's  administrative  expenses, net of severance charges accrued in the
comparable quarter,  decreased from 6.09% of sales in the comparable quarter and
6.47% of sales  in the  comparable  period  to 4.11%  and  4.40% of sales in the
reporting quarter and reporting period,  respectively.  These  improvements were
primarily a result of the  elimination  of salaries  and bonuses  payable in the
comparable period to the Company's former President and CEO.

OTHER INCOME AND EXPENSES
The Company's  other income and expenses,  which consists  primarily of interest
income,  remained  relatively  consistent  from  the  comparable  period  to the
reporting period at $40,552 and $35,402, respectively.

Income Taxes
As  of  March  31,  2000,  the  Company  had  federal  loss   carryforwards   of
approximately  $299,000 and state loss  carryforwards of approximately  $99,000.
Based on  annualizing  the  earnings  for the  quarters  ended June 30, 2000 and
September 30, 2000,  the  Company's  income tax expense net of the remaining net
operating  loss  carryforwards  totals  approximately  $197,000.  This effective
federal income tax rate for the Company is therefore, lower for the period ended
Sept 30,  2000 than it will be for future  periods as a result of the use of the
remaining net operating  loss  carryforwards.  During the six month period ended
September  30, 1999,  the  Company's  taxable net income was fully offset by net
operating  loss  carryforwards.  As a result the Company  incurred no income tax
expense during such period.

Financial Condition and Liquidity
As of September  30,  2000,  the  Company's  cash and cash  equivalents  totaled
$1,195,076.  In addition,  the Company's net worth and working  capital  totaled
$3,795,861 and $3,393,021,  respectively.  The Company has no long-term debt and
$1,000,000 available on its line of credit through M&I Thunderbird Bank.

Cash Flows from Operating Activities.  Net cash provided by operating activities
totaled  $603,716  during the  reporting  period.  The  Company's  inventory and
prepaid  expenses  increased  during the  reporting  period,  however  they were
partially offset by decreased accounts receivable and increased accounts payable
and accrued expenses.  Management was concerned by the high accounts  receivable
balance  and slow  collection  rate as of March 31,  2000.  In response to these
concerns, new collection procedures and personnel changes were implemented. As a
result of these changes,  the average days receivables  improved from 62 days as
of March 31, 2000 to 48 days as of  September  30,  2000.  During the  reporting
period, the Company invested  approximately  $236,000 in additional  inventories
and approximately $153,000 in inventory deposits.  This increase was a result of
both increasing  costs and procurement of more  inventories to meet  anticipated
upcoming  demand.  The  Company's  Management  believes  the  majority  of these
increases relate to timing issues,  which should be  self-correcting  during the
next few quarters.

Cash Flows from Investing and Financing Activities. During the reporting period,
the  Company   used   approximately   $74,000  for  capital   expenditures   and
approximately $256,000 to finance the purchase of treasury stock.

Expected  Future Cash Flows.  Cash  provided  by  operations  in the near future
should  closely  follow   operating   income  net  of  income  tax  expense  and
expenditures to finance the purchase of treasury stock.

Management believes current cash reserves and cash flows from operations will be
adequate to fund the projected needs of the Company for the  foreseeable  future
without the need for outside financing.

                                    Page 10
<PAGE>


Forward Looking Statements
Although the reporting period's sales revenues exceeded management's  forecasts,
the gross margins were lower than management's expectations.  Management's focus
at this time is to try to maintain the increased  sales levels  attained  during
the reporting  period,  while bringing  product cost  percentages back into line
with  those  reported  in the  previous  fiscal  year.  As  discussed  above,  a
significant  reason  for the lower  profit  margins  was a direct  result of the
increased  competitive  pressures,  increased  internal and external  demand for
product  and  higher  prices  demanded  for used  furniture  inventories  on the
aftermarket.   Management  believes  these  pressures  are  weakening  and  used
inventory  purchase  prices  should  return to normal levels in the near future.
However,  there can be no assurance that such pressures will weaken or that used
inventory  purchases  prices will  return to normal  levels.  Additionally,  the
Company  is  currently  contracting  with an  outside  vendor to  develop  clone
replacement  parts for some of the parts  which the  Company is most  frequently
required to purchase new. Upon successful  development of these clone parts, the
Company could realize  substantial  cost savings (up to 70% cost savings on some
parts)  which  should have a positive  impact on the  Company's  gross  margins.
However,  there can be no  assurance  that the clone parts will be  successfully
developed or that they will result in a cost savings to the Company.


                                    Page 11
<PAGE>



                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
The  Company is not party to any pending  legal  proceeding  other than  routine
litigation incidental to the business.

Item 2.  Changes in Securities and Use of Proceeds
None.

Item 3.  Defaults Upon Senior Securities
None.

Item 4.  Submission of Matters to a Vote of Security Holders
The Company's Annual Meeting was held on August 11, 2000.  Shareholders voted on
the  appointment  of the  Company's  auditors and the election of the  Company's
Board of Directors.
<TABLE>
<CAPTION>
-------------------   --------  ---------  -------------  -----------  ---------
                      Shares                                           Broker
Proposal              Eligible  Voted For  Voted Against  Abstentions  Non-Votes
-------------------   --------  ---------  -------------  -----------  ---------
<S>                   <C>       <C>        <C>            <C>          <C>

1-  Election of
    directors:
-------------------   --------- ---------  -------------  ----------- ----------
   Scott W. Ryan      1,327,684 1,174,078              0        4,466          0
-------------------   --------- ---------  -------------  ----------- ----------
   Dirk D. Anderson   1,327,684 1,148,494              0       30,050          0
-------------------   --------- ---------  -------------  ----------- ----------
   Frank E. Hart      1,327,684 1,148,511              0       30,033          0
-------------------   --------- ---------  -------------  ----------- ----------
2 - Appointment of
    auditors          1,327,684 1,178,444            100            0          0
-------------------   --------- ---------  -------------  ----------- ----------
</TABLE>

Item  5. Other Information
None.




















                                    Page 12
<PAGE>


Item 6.  Exhibits and Reports on Form 8-K
(a)  The following exhibits are filed herewith pursuant to Regulation S-B:

No.               Description                                          Reference
---               -----------                                          ---------
3.1      Articles of Incorporation of the Registrant, as
           amended and restated                                            3
3.2      Bylaws of Registrant, as amended and restated                     3
4.1      Form of Common Stock Certificate                                  1
4.5      Registration Rights Agreements                                    2
*4.10    Options issued to Dirk D. Anderson                                4
*4.12    Amendment to Options issued to Dirk D. Anderson                   5
*4.14    Options issued to Dirk D. Anderson                                5
*4.15    Options issued to Scott W. Ryan                                   5
*4.16    Options issued to Scott W. Ryan                                   5
10.1     Lease Agreement, dated April 12, 1990 between
           Boston Safe Deposit
         and Trust Company, as Lessor, and Registrant as Lessee            1
10.33    Loan document between M&I Thunderbird Bank and the
           Registrant                                                      6
         (1)      Filed with Registration Statement on Form S-18,
                    No. 33-51980-LA, under the
                  Securities Act of 1933, as declared effective on
                    December 17, 1992
         (2)      Filed with Form 10-KSB on July 13, 1995
         (3)      Filed with Form 10-KSB on July 2, 1996
         (4)      Filed with Form 10-QSB on November 14, 1996
         (5)      Filed with 10-KSB on September26, 1997
         (6)      Filed with 10-QSB on August 11, 2000
         (*)      Indicates a compensatory plan or arrangement

(b)  Reports on Form 8-K:
No reports were filed on Form 8-K during the quarter ended September 30, 2000.



                                    Page 13
<PAGE>





                                   SIGNATURES

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


Reconditioned Systems, Inc.


Date:    November 13, 2000                           /S/ Scott W. Ryan
                                                     -----------------
                                                     Scott W. Ryan, CEO


Date:    November 13, 2000                           /S/ Dirk D. Anderson
                                                     --------------------
                                                     Dirk D. Anderson, COO



                                    Page 14