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 June 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
      incorporation or organization)          (IRS Employer Identification No.)



                     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 August 2, 2000, the number of
shares outstanding of the Registrant's common stock was 1,328,599.


Transitional Small Business Disclosure Format.       Yes ___No _X__  .


                                       1
<PAGE>
Item 1









                          PART 1 - FINANCIAL STATEMENTS



                           RECONDITIONED SYSTEMS, INC.


                         Unaudited Financial Statements

                                  June 30, 2000




























                                       2
<PAGE>


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

                                                      2000                  1999
                                                      ----                  ----
                                     ASSETS
Current Assets:
      Cash and cash equivalents                  $1,048,649           $1,279,252
      Accounts receivable - trade, net
       of allowance for doubtful
       accounts of approximately $79,000
       and $37,500, respectively                  2,059,297            1,308,726
      Inventory                                   1,691,647              918,941
      Prepaid expenses and other current            194,092               80,210
       assets
                                                    -------               ------

                    Total current assets          4,993,685            3,587,129
                                                  ---------            ---------

Property and Equipment, net:                        273,160              199,102
                                                    -------              -------

Other Assets:
       Notes receivable - officer                    75,000              150,000
       Refundable deposits                           13,036               13,036
       Other                                         31,813               29,995
                                                     ------               ------

                                                    119,849              193,031
                                                    -------              -------

Total Assets                                     $5,386,694           $3,979,262
                                                 ==========           ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
      Accounts payable                           $1,152,997             $455,568
      Customer deposits                              29,167               30,016
      Accrued expenses and other
       current liabilities                          400,998              224,748
                                                    -------              -------

                    Total current liabilities     1,583,162              710,332
                                                  ---------              -------

Stockholders' Equity:
       Common stock, no par value; 20,000,000
               shares authorized                 $4,588,259           $4,586,982
       Accumulated deficit                        (427,690)          (1,146,802)
                                                 ---------           -----------

                                                  4,160,569            3,440,180
       Less: treasury stock, 145,217 and 72,000
                shares respectively, at cost      (357,037)            (171,250)
                                                  ---------            ---------

                                                  3,803,532            3,268,930
                                                  ---------           ----------

Total Liabilities and Stockholders' Equity       $5,386,694           $3,979,262
                                                 ==========           ==========



                                       3
<PAGE>


                           RECONDITIONED SYSTEMS, INC.
                            STATEMENTS OF OPERATIONS
            For the Three Month Periods Ended June 30, 2000 and 1999
                                   (Unaudited)

                                                            Three Months Ended
                                                                  June 30,
                                                            2000            1999
                                                            ----            ----

Sales                                                 $3,564,905      $2,297,796

Cost of sales                                          2,824,829       1,717,015
                                                       ---------       ---------

Gross profit                                             740,076         580,781

Selling & administrative expenses                        480,048         423,139
                                                         -------         -------

Income from operations                                   260,028         157,642

Other income (expense):
          Interest income                                 15,643          16,168
          Other                                            5,746               0
                                                           -----               -

Net income before provision for income taxes             281,417         173,810

Income tax expense                                        89,541               0
                                                          ------               -

Net income                                              $191,876        $173,810
                                                        ========        ========

Basic earnings per share (Notes 1 and 2)                $   0.14         $  0.12
                                                        ========         =======

Basic weighted average number
          of shares outstanding                        1,327,694       1,458,232
                                                       =========       =========

Diluted earnings per common
         and common equivalent share
         (Notes 1 and 2)                                 $  0.13         $  0.10
                                                         =======         =======

Diluted weighted average number
         of shares outstanding                         1,469,750       1,668,463
                                                      ==========       =========












                                       4
<PAGE>


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

                       <S>        <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 ESPP 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

Transfer of shares to
     ESPP Plan               915         683            -      2,176       2,859

Net income                     -           -      191,876          -     191,876
                       ---------  ----------   ---------- ----------  ----------

Balance at  June 30,
     2000              1,328,599  $4,588,259   $(427,690) $(357,037)  $3,803,532
                       =========  ==========   ========== ==========  ==========
</TABLE>







                                       5
<PAGE>


                           RECONDITIONED SYSTEMS, INC.
                            STATEMENTS OF CASH FLOWS
            For the Three Month Periods Ended June 30, 2000 and 1999
                                   (Unaudited)

                                                           Three Months Ended
                                                                 June 30,
                                                           2000             1999
                                                           ----             ----

Cash and cash equivalents provided by
     operating activities                              $160,223         $371,280

Cash and cash equivalents used by
     investing activities                              (35,211)         (24,103)

Cash and cash equivalents provided/
     (used) by financing activities                       2,859        (171,250)
                                                          -----        ---------

Increase in cash and cash equivalents                   127,871          175,927

Cash and cash equivalents at beginning
     of period                                          920,778        1,103,325
                                                        -------        ---------

Cash and cash equivalents at end of period           $1,048,649       $1,279,252
                                                     ==========       ==========










                                       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 three months ended
         June 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 that 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.

                                       7
<PAGE>



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

                                     Note 2.
                               Earnings Per Share
--------------------------------------------------------------------------------


                                                            Three Months Ended
                                                                  June 30,
                                                             2000           1999
                                                             ----           ----
BASIC EPS

Net Income                                               $191,876       $173,810
                                                         ========       ========

Weighted average number of shares
 outstanding                                            1,327,694      1,458,232

Basic earnings per share                                    $0.14          $0.12
                                                            =====          =====

DILUTED EPS

Net Income                                               $191,876       $173,810
                                                         ========       ========

Weighted average number of shares
 outstanding                                            1,327,694      1,458,232

Effect of dilutive securities:
  Stock options                                           142,056        210,231
                                                          -------        -------

Total common shares + assumed
 conversions                                            1,469,750      1,668,463
                                                        =========      =========

Per Share Amount                                            $0.13          $0.10
                                                            =====          =====






                                       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 $3,564,905 for the quarter ended June 30,
2000  (hereinafter  the  "reporting  period") as compared to $2,297,796  for the
quarter ended June 30, 1999 (hereinafter the "comparable period"),  resulting in
an increase of  $1,267,109  or 55%.  This increase was primarily due to improved
retail  sales.  Remanufactured  furniture  sales  increased by 52.7%,  while new
furniture sales increased by 119.5%.

Retail sales totaled  $1,832,623  during the reporting period, up 86.6% over the
comparable period. Retail sales of remanufactured furniture during the reporting
period  increased  by 36.9%  over the  comparable  period.  Retail  sales of new
furniture  during the  reporting  period  increased by 141% over the  comparable
period.  Management believes these increases are a result of the Company's focus
during the current fiscal year 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  $1,732,283 for the reporting  period and $1,315,845 for
the  comparable  period,  up 31.6%.  This increase was primarily due to improved
market demand following a general industry slowdown during the fiscal year ended
March 31, 2000. Wholesale remanufactured sales and wholesale new furniture sales
for the reporting  period increased by 36.9% and 31.3%,  respectively,  over the
comparable period.

GROSS MARGIN
Despite the higher  percentage of retail to wholesale sales, the Company's gross
profit  margin for the  reporting  period  declined  4.52%  from  25.28% for the
comparable period to 20.76% for the reporting period. This decline was primarily
attributable  to higher  product costs as a result of increased  demand for used
Haworth   inventories   purchased  on  the  aftermarket  and  a  change  in  the
remanufactured  to new furniture  sales-mix.  Following a general  industry-wide
slow-down in sales volume during the calendar year ended  December 31, 1999, the
industry's sales bounced back during the first quarter of 2000. As a result, the
demand for used inventories  increased, creating a highly competitive purchasing
market. Furthermore,  the Company's internal demand for used inventories
increased as a result of  increased  sales  volume.  In order to meet  demand,
the Company was required to pay higher  prices for it's used  inventories  and
purchase more new and clone parts to supplement the used inventories it was able
to secure.

In addition,  the Company's  remanufactured  to new furniture  sales-mix changed
from 88%  remanufactured  / 12% new  furniture in the  comparable  period to 84%
remanufactured / 16% new furniture in the reporting period. As the gross margins
on new  furniture  sales  are  typically  lower  than on sales of the  Company's
remanufactured  product,  this also had a negative impact on the Company's gross
margin.

                                       9
<PAGE>



OPERATING EXPENSES
The Company's selling expenses  decreased from 11.53% of sales in the comparable
period to 9% 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  decreased  from  6.88% of sales in the
comparable period to 4.4% of sales in the reporting period. This improvement was
primarily a result of the  elimination  of salaries  and bonuses  payable in the
comparable  period to the  Company's  former  President  and CEO. The  Company's
current President and CEO does not draw a salary or bonuses.

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 $16,168 and $21,389, 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 quarter  ended June 30,  2000,  the
Company's   income  tax  expense  net  of  the  remaining  net  operating   loss
carryforwards totals approximately $89,000.  During the three month period ended
June 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 this period.

FINANCIAL CONDITION AND LIQUIDITY
---------------------------------
As of June 30, 2000, the Company's cash and cash equivalents totaled $1,048,649.
In addition,  the Company's net worth and working capital totaled $3,803,532 and
$3,410,523,  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 $160,223 during the reporting period. The Company's accounts receivable,
inventory  and prepaid  expenses  all  increased  during the  reporting  period,
however they were  partially  offset by increased  accounts  payable and accrued
expenses.  Although accounts receivable increased,  the average days receivables
improved  from 62 days as of  March  31,  2000 to 53 days as of June  30,  2000.
During the reporting  period,  the Company  invested  approximately  $500,000 in
additional  inventories and approximately  $130,000 in inventory deposits.  This
increase  was a  result  of  both  increasing  costs  and  procurement  of  more
inventories  to meet  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  $35,000 for capital  expenditures  and received
approximately $3,000 from employees  participating the in the Company's Employee
Stock Purchase Plan.

EXPECTED  FUTURE CASH FLOWS.  Cash  provided  by  operations  in the near future
should  closely  follow  operating  income.  The Company's  accounts  receivable
balances have been steadily  increasing  over the past few years.  As previously
reported,  management  implemented  certain  personnel and policy  changes in an
effort to improve the  collection of accounts  receivable.  As a result of these
changes,  the  Company's  average days  receivables  improved from 62 days as of
March 31, 2000 to 53 days as of June 30, 2000,  and 48 days as of July 31, 2000.
Management  believes these changes will enable the Company to further reduce the
average days  receivables to approximately 45 days within the next few reporting
quarters.

Management believes current cash reserves and cash flows from operations will be
adequate  to fund the needs of the  Company  through  the end of the next fiscal
year without the need for outside financing.

                                       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  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.  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.


                                       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
None.

Item  5. OTHER INFORMATION
None.




















                                       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
*4.9     Options issued to Wayne R. Collignon                              4
*4.10    Options issued to Dirk D. Anderson                                4
*4.11    Amendment to Options issued to Wayne Collignon                    5
*4.12    Amendment to Options issued to Dirk D. Anderson                   5
*4.13    Options issued to Wayne R. Collignon                              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
27       Financial Data Schedule                                           7
         (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
         (7)      Filed herein
         (*)      Indicates a compensatory plan or arrangement

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



                                       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:    August 14, 2000                     /S/ Scott W. Ryan
                                             ___________________________________
                                             Scott W. Ryan, CEO


Date:    August 14, 2000                     /S/ Dirk D. Anderson
                                             ___________________________________
                                             Dirk D. Anderson, COO

                                       14
<PAGE>