SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   -----------

                                   FORM 10-QSB

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002

                                       OR

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

              For the transition period from ________ to _________

                         COMMISSION FILE NUMBER 0-23111

                             A NOVO BROADBAND, INC.
                 (Name of Small Business Issuer in Its Charter)

       DELAWARE                                          31-1239657
(State of Incorporation)                   (I.R.S. Employer Identification No.)

       196 QUIGLEY BOULEVARD,
        NEW CASTLE, DELAWARE                                        19720
(Address of Principal  Executive Offices)                         (Zip Code)

Issuer's telephone number, including area code:                  (302) 322-6088

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

         The aggregate market value of the voting and non-voting common equity
(which consists solely of shares of Common Stock) held by non-affiliates of the
issuer as of April 30, 2002, computed by reference to the closing sales price of
the issuer's Common Stock on the NASDAQ Bulletin Board on that date, was
approximately $2,544,653

         The number of shares of the issuer's Common Stock outstanding as of
April 30, 2002 was 5,045,542.

         Transitional Small Business Disclosure Format. Yes  X  No
                                                        ---    ---
<PAGE>

                             A NOVO BROADBAND, INC.
                                   FORM 10-QSB
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002
                                      INDEX

<TABLE>
<CAPTION>


                                                                                               PAGE NUMBER
<S>             <C>                                                                                <C>
PART I.         FINANCIAL INFORMATION

Item 1.         Consolidated Balance Sheets at March 31, 2002 (unaudited) and September 30,         3
                2001 (audited)

                Consolidated Statements of Operations and Comprehensive (Loss)                      5
                Income for the Three and Six Months Ended March 31, 2002 and
                2001 (unaudited)

                Consolidated Statements of Cash Flows for the Six Months ended March 31,            6
                2002 and 2001 (unaudited)

                Notes to Consolidated Financial Statements                                          7

Item 2.         Management's Discussion and Analysis of Financial Condition and Results of         10
                Operations


PART II.        OTHER INFORMATION

Item 1.         Legal Proceedings                                                                  17

Item 2.         Changes in Securities; Use of Proceeds                                             17

Item 3.         Defaults Upon Senior Securities                                                    17

Item 4.         Submission of Matters to a Vote of Security Holders                                17

Item 5.         Other Information                                                                  17

Item 6.         Exhibits and Reports on Form 8-K                                                   17

                SIGNATURES                                                                        S-1
</TABLE>



<PAGE>
                     A NOVO BROADBAND, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>

                                                           MARCH 31, 2002               September 30,2001
                                                           --------------                 ------------
                                                           (unaudited)                     (audited)
                                                            ------------                  ------------
<S>                                                            <C>                        <C>
CURRENT ASSETS
   Cash ................................................       1,816,033                  $    320,696
   Accounts receivable, net ............................       4,529,320                     4,267,857
   Inventories, net ....................................       1,522,535                     1,871,350
   Notes receivable-related parties ....................         104,809                       200,000
   Prepaid and other assets ............................         270,104                       163,306
   Deferred income taxes ...............................         541,000                       541,000
                                                            ------------                  ------------

     Total current assets ..............................       8,783,801                     7,364,209
                                                            ------------                  ------------

PROPERTY AND EQUIPMENT, at cost
   Furniture and fixtures ..............................       1,173,753                     1,217,341
   Equipment ...........................................       3,662,790                     2,885,684
   Leasehold improvements ..............................       1,018,395                       523,371
   Software ............................................         136,528                        57,000
                                                            ------------                  ------------
                                                               5,991,466                     4,683,396

   Less accumulated depreciation .......................      (1,741,421)                   (1,216,323)
                                                            ------------                  ------------

     Net property and equipment ........................       4,250,045                     3,467,073
                                                            ------------                  ------------

OTHER ASSETS

   Goodwill, net .......................................       8,473,684                     8,528,807
   Deferred income taxes ...............................       1,962,279                     1,552,000
   Note receivable-related party .......................          10,511                            --
   Other assets ........................................         139,519                       139,519
                                                            ------------                  ------------

     Total other assets ................................      10,585,993                    10,220,326
                                                            ------------                  ------------

TOTAL ASSETS ...........................................    $ 23,619,839                  $ 21,051,608
                                                            ============                  ============
</TABLE>


   The accompanying notes are an integral part of the consolidated financial
                                  statements.


                                       3
<PAGE>

                     A NOVO BROADBAND, INC. AND SUBSIDIARIES

                     CONSOLIDATED BALANCE SHEETS (CONTINUED)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>


                                                  MARCH 31, 2002      September 30, 2001
                                                  --------------      ------------------
                                                   (unaudited)           (audited)
                                                   ------------          ------------
<S>                                                <C>                   <C>
CURRENT LIABILITIES
   Current portion of long-term obligations ....   $    200,611          $    190,008
   Notes payable - bank ........................      1,500,000               500,000
   Note payable - related party ................      5,123,730             4,971,940
   Accounts payable ............................      4,550,747             3,039,259
   Advances from related party .................      3,055,430                    --
   Accrued expenses
     Payroll and related taxes .................        659,020               990,935
     Other .....................................        214,723               250,429
                                                   ------------          ------------

     Total current liabilities .................     15,304,261             9,942,571
                                                   ------------          ------------

LONG-TERM LIABILITIES ..........................         41,667                83,334
                                                   ------------          ------------


     Total liabilities .........................     15,345,928            10,025,905
                                                   ------------          ------------

STOCKHOLDERS' EQUITY
   Common stock ................................          5,046                 4,915
   Additional paid-in-capital ..................     14,000,567            13,861,873
   Stock subscription receivable ...............       (138,387)                    --
   Accumulated other comprehensive loss ........        (59,621)              (47,304)
   Retained deficit ............................     (5,533,694)           (2,793,781)
                                                   ------------          ------------

     Total stockholders' equity ................      8,273,911            11,025,703
                                                   ------------          ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .....   $ 23,619,839          $ 21,051,608
                                                   ============          ============
</TABLE>



   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       4

<PAGE>

                             A NOVO BROADBAND, INC.
     CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED                     SIX MONTHS ENDED
                                                                        MARCH 31,                               MARCH 31,
                                                                 2002                2001               2002               2001
                                                              ------------       ------------       ------------       ------------
<S>                                                           <C>                <C>                <C>                <C>
Revenues ...............................................      $  5,033,253       $  3,996,083       $ 10,368,114       $  8,722,483

Cost of sales ..........................................         4,731,261          2,905,338          8,770,404          6,297,147
                                                              ------------       ------------       ------------       ------------
   Gross profit ........................................           301,992          1,090,745          1,597,710          2,425,336

Selling, general and administrative expenses ...........         2,349,003          1,432,005          4,470,524          2,742,668
                                                              ------------       ------------       ------------       ------------
   Loss from operations ................................        (2,047,011)          (341,260)        (2,872,814)          (317,332)
                                                              ------------       ------------       ------------       ------------

Other (expense) income

     Interest expense ..................................          (148,882)           (14,042)          (282,386)           (21,362)
     Interest income ...................................             4,845             85,721             29,194            196,314
                                                              ------------       ------------       ------------       ------------
 Total other (expense) income ..........................          (144,037)            71,679           (253,192)           174,952
                                                              ------------       ------------       ------------       ------------

   Loss before income taxes ............................        (2,191,048)          (269,581)        (3,126,006)          (142,380)
 Benefit from taxes ....................................            51,514             90,409            386,093             47,158
                                                              ------------       ------------       ------------       ------------
Loss from continuing operations ........................        (2,139,534)          (179,172)        (2,739,913)           (95,222)

Discontinued operations:

   Gain on disposal of division, net of tax
       provision of $0, $93,000, $0 and $93,000 ........                --            180,230         (2,739,913)           (95,222)
                                                              ------------       ------------       ------------       ------------
Net (loss) income ......................................        (2,139,534)             1,058       $ (2,752,230)      $     85,008

Other comprehensive loss ...............................            (3,105)                --            (12,317)                --
                                                              ------------       ------------       ------------       ------------
Total comprehensive (loss) income ......................      $ (2,142,639)      $      1,058       $ (2,752,230)      $     85,008
                                                              ============       ============       ============       ============


Basic and diluted earnings per share
   Loss from continuing operations .....................      $      (0.42)      $      (0.04)      $      (0.55)      $      (0.02)
   Gain on discontinued operations .....................      $       0.00       $       0.04       $       0.00       $       0.04
                                                              ------------       ------------       ------------       ------------
   Net (loss) income per share .........................      $      (0.42)      $       0.00       $      (0.55)      $       0.02
                                                              ============       ============       ============       ============

   Weighted average shares outstanding .................         5,041,219          4,843,624          4,977,803          4,801,635
</TABLE>



   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       5



<PAGE>



                             A NOVO BROADBAND, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                 SIX MONTHS ENDED MARCH 31,
                                                        2002(unaudited)           2001 (unaudited)
                                                        --------------            ---------------
<S>                                                      <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income ....................................   $(2,739,913)               $    85,008
                                                         -----------                -----------
Adjustments to reconcile net (loss) income to net cash
  (used in) provided by operating activities:
   Depreciation and amortization .....................       580,221                    224,605
   Provision for losses on receivables ...............       (11,902)                    34,625
   Provision for inventory obsolescence ..............      (219,294)                    37,446
   Deferred income taxes .............................      (410,279)                   (47,485)
   Acquisition bonus .................................        95,191                    104,917
   Accrued interest income - related party ...........        (4,003)                        --
   Accrued interest - related parties ................       206,646                         --

    Gain on disposal of division .....................            --                   (180,230)

   (Increase) decrease in operating assets:
       Accounts receivable ...........................      (249,561)                     5,507
       Inventories ...................................       568,109                   (151,579)
       Prepaid and other assets ......................      (106,798)                  (132,432)
   Increase (decrease) in operating liabilities:
       Accounts payable ..............................     1,511,488                    274,928
       Accrued expenses ..............................      (357,018)                  (114,279)
                                                         -----------                -----------

           Total adjustments .........................     1,602,800                     56,023
                                                         -----------                -----------

Net cash (used in) provided by operating activities ..    (1,137,113)                   141,031
                                                         -----------                -----------

CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property and equipment ...................    (1,308,070)                  (418,146)
Increase in notes receivable .........................        (6,508)                        --
                                                         -----------                -----------

Net cash used in investing activities ................    (1,314,578)                  (418,146)
                                                         -----------                -----------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options and warrants .           438                     64,271
Net borrowings on notes payable - bank ...............     1,000,000                         --
Net advances from related party ......................     3,000,574                         --
Net payments on debt obligations .....................       (41,667)                  (976,563)
                                                         -----------                -----------
Net cash provided by (used in) financing activities ..     3,959,345                   (912,292)
                                                         -----------                -----------
Effect of exchange rate changes on cash ..............       (12,317)                        --
                                                         -----------                -----------
Net increase (decrease) in cash and cash equivalents .     1,495,337                 (1,189,407)

Cash and cash equivalents at beginning of period .....       320,696                  7,104,915
                                                         -----------                -----------

Cash and cash equivalents at end of period ...........   $ 1,816,033                $ 5,915,508
                                                         ===========                ===========
</TABLE>

SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

   On January 4, 2002, the Company loaned $138,387 to the Chief Development
Officer pursuant to his exercising of stock options to purchase 129,700 shares
of the Company's common stock.


The accompanying notes are an integral part of the consolidated financial
statements.

                                        6

<PAGE>

                             A NOVO BROADBAND, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  BASIS OF PRESENTATION

The accompanying consolidated financial statements, which should be read in
conjunction with the consolidated financial statements and footnotes thereto
included in the Company's Annual Report on Form 10-KSB for the fiscal year ended
September 30, 2001, are unaudited (except for the September 30, 2001
consolidated balance sheet, which was derived from the Company's audited
financial statements), but have been prepared in accordance with generally
accepted accounting principles for interim financial information. 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 (consisting only of normal recurring adjustments)
considered necessary for a fair presentation have been included.

Operating results for the three and six months ended March 31, 2002 are not
necessarily indicative of the results that may be expected for the entire fiscal
year ending September 30, 2002.

2.  EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
<CAPTION>

                                            THREE MONTHS ENDED MARCH 31     SIX MONTHS ENDED MARCH 31,
                                                2002           2001           2002           2001
                                             -----------    -----------    -----------    -----------
<S>                                          <C>            <C>            <C>            <C>
Numerator:
----------
    Loss from continuing operations ......   $(2,139,534)   $  (179,172)   $(2,739,913)   $   (95,222)
                                             ===========    ===========    ===========    ===========

Denominator:
------------
Denominator for basic earnings per share
   Weighted-average shares outstanding ...     5,041,219      4,843,624      4,977,803      4,801,635

Effect of dilutive securities:
Employee stock options ...................            --             --             --             --
                                             -----------    -----------    -----------    -----------

Denominator for diluted earnings per share     5,041,219      4,843,624      4,977,803      4,801,635
                                             ===========    ===========    ===========    ===========

Basic and diluted earnings per share .....   $     (0.42)   $     (0.04)   $     (0.55)   $     (0.02)
                                             ===========    ===========    ===========    ===========
</TABLE>

                                       7
<PAGE>


3.  NOTES PAYABLE - RELATED PARTY

On August 31, 2001, the Company purchased assets constituting the repair
business of Broadband Services, Inc. for $8 million cash, subject to
post-closing adjustments, and the assumption of certain related liabilities. To
fund the acquisition the Company used existing cash and a $4.97 million secured
bridge loan from an affiliate of its indirect parent, A Novo SA , with interest
at 2% over EURIBOR (not to exceed 6%). Accrued interest on the obligation was
approximately $152,000 at March 31, 2002. The bridge loan is convertible into
shares of the Company's common stock at $1.40 per share (a maximum of 3,659,807
shares as of March 31, 2002 based on a bridge loan balance of $5,123,730
as of that date). Maturity of the bridge loan has been extended to the closing
date of the Company's proposed new credit facility, at which time it is expected
that the entire bridge loan balance will be converted into shares of common
stock. The Company's working capital deficit at March 31, 2002, reflects the
outstanding bridge loan balance as a short-term liability.

In the first six months of fiscal 2002, the Company received working capital
advances totaling $3,000,574 from A Novo SA. Initially advances bore interest at
rates charged by A Novo SA to its other affiliates, 2% over EURIBOR, not to
exceed 6% per year. On March 15, 2002, in light of the Company's need for
additional funding to meet its working capital requirements and its inability to
increase or renew its existing bank line of credit, which matured on April 2,
2002, and its delay in obtaining a new line of credit, A Novo SA advanced the
Company $2,200,000. In order to induce A Novo SA (a) to advance the additional
funds, (b) to agree to subordinate all of its working capital advances to a new
credit line and (c) to agree to guarantee a new credit line, the terms of such
advances were revised and incorporated into an unsecured demand convertible grid
note of the Company in nominal principal amount of $4 million, due on demand.
From and after March 31, 2002, interest on the principal of the note accrues at
an annual rate equal to 2% plus prime, adjusted monthly. The principal of the
note may be converted into shares of the Company's common stock at prices based
on the average closing price per share for the 10 trading days immediately
following the time of the related advance. The average conversion price is $1.41
per share. Based on a balance of $3,000,574 outstanding as of March 31, 2002,
the note was convertible into a maximum of 2,133,520 shares of Common Stock. The
Company's working capital deficit at March 31, 2002, reflects the outstanding
working capital advances as a short-term liability. Subsequent to March 31,
2002, A Novo SA advanced the Company an additional $500,000 under the demand
note.

4.  NOTES PAYABLE - BANK

The Company obtained a $1,500,000 revolving credit line with a bank during
fiscal 2001. The credit line is secured by substantially all assets of the
Company. Interest is charged at prime plus 1% (5.75% at March 31, 2002). The
line matured on April 2, 2002 and, as of May 20, 2002, had not been repaid or
further extended. The lender has taken no action to enforce repayment of the
loan, pending the Company's completion of a proposed new line of credit from
another bank. As of May 20, 2002, the Company had received a term sheet and loan
documentation from another bank for a new secured line of credit of up to
$3,000,000, from which it expects to satisfy the existing line prior to May 31,
2002. Outstanding borrowings under the existing line were $1,500,000 and
$500,000 at March 31, 2002 and September 30, 2001, respectively.

5.  STOCK TRANSACTIONS

On January 4, 2002, the Company entered into agreements with its Chief
Development Officer pursuant to which he exercised options to purchase 129,700
shares of Common Stock at an aggregate purchase price of $138,387. Upon the
exercise of the options, the Chief Development Officer waived his rights to
tandem stock appreciation rights under his 475,080 remaining outstanding
options. Payment of the stock's purchase price was made entirely from proceeds
of the Company's loan to the Chief Development Officer's affiliate, secured by
the pledge of 129,700 of shares of Common Stock issued on the exercise of the
options. The loan is with full recourse to the Chief Development Officer as to
the stated interest of 6% per year, is non-recourse as to the principal, and is
payable in three installments of $44,637 plus interest on January 24, 2005 and
$46,875 plus interest on both January 4, 2006 and 2007. The loan is accounted
for as a stock subscription receivable and accordingly the receivable portion is
shown in the equity section of the consolidated balance sheet.  The Company also
loaned the Chief Development Officer $6,508 to cover the payroll tax liability
associated with this transaction. The payroll tax loan accrues interest at a
stated rate of 4.49% and is payable in full on January 4, 2007.

                                       8
<PAGE>

6.  INCOME TAXES

Management has elected to record a valuation allowance against any further
increases to the deferred tax asset recorded on the consolidated financial
statements to reflect the future benefit of net operating loss carry forwards.
The valuation allowance at March 31, 2002 was approximately $820,000.

7.  SUBSEQUENT EVENTS

Following the curtailment of operations at the Company's Montreal facility in
February of 2002, the Company undertook to sell the related assets. On May 8,
2002, the Company completed a sale of these assets to a former employee for
$262,000 in cash and the assumption of certain liabilities. As a result of the
sale, the Company expects to recognize a third quarter loss estimated at $2.7
million, including the write-down of approximately $2.5 million of goodwill
related to its acquisition of the operations in September 2000. During the first
six months of 2002, the operations of the Canadian facility resulted in an
operating loss that the Company estimates at $338,000.

8.  RECENT ACCOUNTING PRONOUNCEMENTS

In March 2002, the Accounting Standards Executive Committee issued Statement of
Position (SOP) 01-6 "Accounting by Certain Entities (Including Entities with
Trade Receivables) That Lend to or Finance the Activities of Others." This SOP
clarifies certain disclosures of companies' accounting policies concerning trade
receivables and other lending activities, which will be required for fiscal
years beginning after December 15, 2001. The Company anticipates that the
adoption of this standard will not have any significant impact to its financial
statements and will adopt this SOP on October 1, 2002.

In August 2001, the Financial Accounting Standards Board (FASB) issued SFAS No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets." This new
standard supersedes both SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets and for the Long-Lived Assets to be Disposed of," and sections
of the Accounting Principles Board Opinion No. 30," providing one accounting
model with which to review for asset impairment. The statement retains much of
the recognition and measurement provisions of SFAS No. 121, but removes goodwill
from its scope. It also alters the criteria of classifying long-lived assets to
be disposed of by sale and changes the method for accounting for the disposal of
long-lived assets if other than through sale. Finally, while this statement
retains the basic presentation provisions for the disposal of a segment of a
business or discontinued operations, it broadens the definition of a
discontinued operation to include a component of an entity. Management is
currently determining what effect, if any, the adoption of this standard will
have on its financial statements. The adoption of this statement is required for
fiscal years beginning after December 15, 2001. The Company will adopt this
statement on October 1, 2002.

In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations." The objective of this statement is to provide accounting guidance
for legal obligations associated with the retirement of long-lived assets by
requiring the fair value of a liability for the asset retirement obligation to
be recognized in the period in which it is incurred. When the liability is
initially recognized, the asset retirement costs should also be capitalized by
increasing the carrying amount of the related long-lived asset. The liability is
depreciated over the useful life of the associated asset. The Company is
currently assessing its legal obligations. Management anticipates that the
adoption of this standard will not have any significant impact to its financial
statements. This statement is effective for fiscal years beginning after June
15, 2002. The Company will adopt this standard on October 1, 2002.


                                       9

<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements and Notes thereto included in the Company's
Report on Form 10-KSB for the fiscal year ended September 30, 2001. Quarterly
operating results have varied significantly in the past and can be expected to
vary in the future. Results of operations for any particular quarter are not
necessarily indicative of results of operations for a full year. Unless
otherwise indicated, all references to years or quarters in this discussion are
to fiscal years or quarters.

OVERVIEW

         A Novo Broadband, Inc. ("we" or the "Company") is engaged primarily in
the industrial scale repair and servicing of broadband equipment for equipment
manufacturers and operators of cable and other broadband systems in North
America. Formerly known as Cable Link, Inc., we changed our name in February
2001, to reflect a fundamental change in our business and our association with a
group of affiliated companies, operating throughout Europe and in North and
South America as the "A Novo Group". Beginning in September 2000, we began
adapting and expanding our operations to enable us to offer a range of equipment
repair and maintenance services at regional service centers strategically
located in proximity to national and regional broadband system operators. We
took this step to meet anticipated repair service opportunities stemming from
the ongoing consumer-driven shift of broadband signal delivery in the United
States and Canada from analog to digital format.

         Since the end of fiscal 2001, we have suffered from a shortage of
working capital. This shortage is attributable in part to the depletion of our
cash resources to complete the acquisition of the Broadband Services repair
business in August 2001, purchase new equipment to enable us to service Motorola
and Scientific Atlanta digital equipment, and pay employee severance costs in
connection with work-force reductions. Additionally, demand at certain of our
facilities and for certain of our non-core services has developed more slowly
than we anticipated. To deal with our liquidity requirements, we have taken
affirmative measures to conserve cash and focus our resources on the development
of our core service functions. Pending the development of positive cash flow and
an increased banking facility, we have relied on significant working capital
advances from our parent and its affiliates.

         The effect of our sharpened focus on repair services is already
discernable in our production figures. Most of the increase in revenue was
attributable to in-warranty repair of Motorola set-top boxes stemming from our
acquisition of the Broadband Services repair business. Actual production
increased substantially from the levels achieved by Broadband Services prior to
the acquisition.

         During the first quarter of fiscal 2002, we were authorized by
Scientific Atlanta to perform in-warranty repairs on their digital set-top boxes
in North America. We have been ramping up production under this authorization
since mid-way during the first quarter. We expect production under the
Scientific Atlanta authorization to continue to increase significantly over the
remainder of the fiscal year.

         Our services afford our customers opportunities to achieve significant
economies and efficiencies by outsourcing their repair functions. We perform
these functions utilizing high volume processing techniques that have been
implemented successfully in Europe and are available to us through our
relationship with the A Novo Group. In Europe, A Novo Group has been servicing
the broadband equipment industry for more than five years, providing digital
equipment screening and testing, calibration, repair, upgrade and maintenance
both in and out of warranty. In the U.S., we have been providing a variety of
equipment-related services to system operators and equipment manufacturers since
1987. We believe that the resources and experience of A Novo Group in
combination with our management team, existing skilled labor force, technical
knowledge base and industry relationships position us to capture a significant
share of an expanding North American market for digital broadband repair and
related services.
                                       10
<PAGE>

         A critical component of our strategy is to obtain designation as an
authorized in-warranty service provider for the principal manufacturers of
digital broadband equipment. With each such designation, we gain access to the
proprietary and technical information that is essential for performance of the
required warranty services for the manufacturer's sophisticated digital
equipment and, in turn, enables us to perform out-of- warranty repair and
maintenance work for both the manufacturer and the system operators that use its
equipment. Without each specific manufacturer's authorization and proprietary
information, there is no practical way to access the service market for its
digital equipment. During fiscal 2001 and the first quarter of fiscal 2002, we
became an authorized in-warranty service provider for digital broadband
equipment manufactured by Motorola, Scientific Atlanta, and Pace Micro
Technology.

         Another critical component of our strategy has been the establishment
of regional service centers to meet opportunities stemming from the ongoing
trend to consolidation of system operators. Our service centers are located in
proximity to many of the multiple system operators that now dominate our
industry, facilitating quick response and delivery times. We currently conduct
service operations at facilities in Hollywood, Florida, Chatsworth, California,
Columbus, Ohio, and New Castle, Delaware. As a result of slower than anticipated
demand, we recently discontinued service operations at our Montreal service
center and completed the sale of most of the assets related to that facility.

         Our business model is to enter into comprehensive repair and servicing
arrangements with broadband equipment manufacturers and system operators. These
arrangements are based on a core menu of services consisting of:

         o        calibration, repair, upgrade and maintenance of equipment as
                  an authorized warranty servicer for manufacturers and under
                  post-warranty arrangements for system operators, and

         o        logistics functions, including tracking of customer inventory
                  (by monitoring the warranty and upgrade status of individual
                  units of equipment on a real time basis), and receiving,
                  storing, packing and shipping new and used customer assets to
                  multiple locations.

         To induce manufacturers and system operators to retain us, we offer
them:

         o        a single relationship for all digital equipment service
                  requirements;

         o        top quality technical support and reliable repair and related
                  capabilities, using our proprietary production processes and
                  tracking and quality control systems;

         o        a system of strong regional presences which enables us to
                  respond quickly to local needs and provide fast turn-around;

         o        a real-time tracking system to monitor location of their
                  assets in our possession and the progress of these assets
                  through any process we manage; and

         o        convenient logistics services and warehousing.

RESULTS OF OPERATIONS

         The following table sets forth certain information, expressed as a
percentage of net sales, reflected in the Company's consolidated statements of
income for the three and six months ended March 31, 2002 and 2001:
<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED          SIX MONTHS ENDED MARCH 31,
                                                                    MARCH 31,

                                                               2002            2001             2002             2001
                                                              -----            -----            -----            -----
<S>                                                           <C>              <C>              <C>              <C>
Revenues ........................................             100.0            100.0            100.0            100.0

Cost of revenues ................................              94.0             72.7             84.6             72.2
                                                              -----            -----            -----            -----
Gross profit ....................................               6.0             27.3             15.4             27.8

Selling, general & administrative expenses ......              46.7             35.8             43.1             31.5
                                                              -----            -----            -----            -----
Loss from operations ............................             (40.7)            (8.5)           (27.7)            (3.7)

Interest expense ................................              (2.9)            (0.4)            (2.7)              .2

Interest income .................................               0.1              2.1              0.3              2.3
                                                              -----            -----            -----            -----

Net loss before tax .............................             (43.5)            (6.8)           (30.1)            (1.6)

Benefit from income tax .........................               1.0              2.3              3.7              0.5
                                                              -----            -----            -----            -----

Net loss ........................................             (42.5)            (4.5)           (26.4)            (1.1)
                                                              =====            =====            =====            =====
</TABLE>
                                       11

THREE MONTHS ENDED MARCH 31, 2002 RESULTS COMPARED TO THREE MONTHS ENDED
MARCH 31, 2001

SALES

         Our ongoing sales consist of revenues from the repair of set top boxes,
linegear, and power supplies and the provision of asset management, warehousing,
and logistics services for cable equipment. During the second quarter of fiscal
2002, we continued to generate revenues from the sale of refurbished line gear
and power supplies and for a portion of the quarter, from brokerage services and
sales of refurbished cable equipment. During the quarter, we elected to
discontinue all remaining brokerage and distribution activities, in order to
further concentrate on meeting demand in our growing repair activities.

         Our sales for the second quarter of 2002 increased 25% to $5.0 million,
as compared to $4.0 million for the second quarter of 2001. As we focused our
business more on the repair of set top boxes, our repair revenue increased 600%
to $3.5 million, as compared to $500,000 for the second quarter of 2001. We have
also increased our efforts to provide logistics services to our customers, and
our revenue from this source increased to $722,000, as compared to $100,000 in
the corresponding quarter of 2001.

         Sales from our now-discontinued international and domestic distribution
activities decreased 50% to $710,000, as compared to $1.4 million in 2001, due
to both decreased demand and the termination of these activities mid-way through
the quarter. For similar reasons, brokerage sales decreased to $53,000 during
the quarter, as compared to $1.5 million in 2001. Finally, also for these
reasons, sales of refurbished products decreased 96% to $20,000, as compared to
$554,000 in 2001. As we have now discontinued our brokerage and distribution
activities, we expect no further revenues from these sources.

         Our business plan is now sharply focused on increasing repair and
logistics revenues. We expect these will continue to be generated by our
relationships with manufacturers of equipment for the broadband market and the
system operators that use them. We continue to target service and repair
opportunities for digital set top boxes for the cable industry, cable modems,
and digital subscriber line modems. The acquisition in August 2001, of the
assets constituting the repair business of Broadband Services, which provided us
in-warranty repair authorization for Motorola products, and our subsequent
designation as an authorized in-warranty repair provider for Scientific Atlanta
products, are the primary causes for the increase in our repair revenues during
this year.

         Our exposure to manufacturers and system operators as a result of the
repair services we provide them positions us to afford them logistics and
warehousing services as well. These equipment storage and distribution functions
are typically based on short term arrangements and enable us to make productive
use of our substantial vertical storage capacities.

COST OF GOODS SOLD

         Cost of goods sold was 94% of sales in the second quarter of fiscal
2002, compared to 73% in the 2001 quarter. The overall cost of goods sold
increased as a percentage of revenues as a result of the overall reduction in
combined revenues from brokerage and distribution services, and the low margins
resulting from liquidation of the associated inventory of brokerage and
distribution services and refurbished equipment ($290,000) . We also continued
to incur increased labor expense (recognized in cost of goods sold) associated
with increases in repair capacity which was not fully utilized during the
current period.

                                       12
<PAGE>

         We expect margins to increase during the remainder of the current
fiscal year as utilization of our expanded capacity improves and the effects of
certain cost-cutting measures are realized, including the discontinuance of
lower margin sectors. Margins at our repair facilities which have adapted to
performing Motorola repair operations and are fully operational were more than
30% during the second quarter of 2002. We anticipate that margins for all our
repair operations will approach these levels as our other facilities become
fully operational.

OPERATING EXPENSES

         Operating expenses increased 64% in the second quarter of 2002 to $2.3
million, as compared to $1.4 million in the second quarter of the prior year.
The increase reflected certain non-recurring items. These consisted of
professional fees and certain costs associated with the termination of our
brokerage and distribution activities, including severance payments to former
employees and the establishment of reserves against $ 70,000 of receivables from
offshore customers. Additional operating costs were also attributable to the
operation of two repair facilities acquired from Broadband Services in August
2001.

         In February 2002, we curtailed our operations in Canada and sought a
sale of the related assets, which we completed in May of this fiscal year. As a
result of the sale, we expect to recognize a third quarter loss estimated at
$2.7 million, including the write-down of approximately $2.5 million of goodwill
related to our acquisition of the facility in September 2000. For the second
quarter of fiscal 2002, our Canadian facility incurred an operating loss that we
estimate at $219,000.

         During the second quarter of 2002, in order to focus on our core repair
service activities, we ceased our brokerage and distribution activities
(including the related refurbishment activities) and liquidated the related
inventories. This resulted in operating losses in the second quarter of fiscal
2002 that we estimate at $442,000.

INCOME TAX PROVISION

         The effective tax benefit rate on continuing operations was 2% for the
second quarter of 2002, as compared to 34% in 2001. This reflects the
recognition of a valuation allowance against our deferred tax assets due to
management's uncertainty whether we will realize profits in the near term that
will fully utilize our net operating losses.

DISCONTINUED OPERATIONS

         In February 2000, we decided to close our subsidiary, Auro Computer
Services, Inc. ("Auro").The operations of Auro were discontinued on February 21,
2000. As of December 31, 1999, we recorded a charge for the expected loss on the
disposition of Auro's assets, net of a tax effect. The assets were written down
to their estimated net realizable values. We recognized a gain of $180,230, net
of income tax, during the second quarter of 2001, due to the settlement of
Auro's obligations. There was no activity relating to Auro during the second
quarter of 2002. Adjustment will be made for Auro's remaining obligations as and
when they are settled with Auro's creditors. We do not anticipate any further
adverse impact on our financial position or results of operations relating to
Auro.

SIX MONTHS ENDED MARCH 31, 2002 RESULTS COMPARED TO SIX MONTHS ENDED
MARCH 31, 2001

SALES

         Our revenues for the six months ended March 31, 2002 increased 19% to
$10.4 million, as compared to $8.7 million for the same period for 2001. As we
focused our business more on the repair of set top boxes, our repair revenue
increased 556% to $6.3 million, as compared to $961,000 from last year. We have
also increased our efforts to provide logistics services to our customers, and
our revenue from this source increased to $1.3 million, as compared to $100,000
in 2001.

                                       13
<PAGE>

         Sales from international and domestic distribution remained constant at
$2.2 million for the six months ended March 31, 2002 and 2001. Brokerage sales
decreased to $296,000 during the six month period, as compared to $3.8 million
in 2001, consistent with our reduced efforts and decreased demand in this
service sector. Finally, sales of refurbished products decreased 77% to
$371,000, as compared to $1.6 million in 2001. As we subsequently discontinued
our brokerage and distribution services activities, we expect little revenue
from these activities during the remainder of fiscal year 2002.

COST OF GOODS SOLD

         Cost of goods sold for the six months of this year was 85% compared to
72% last year. The overall cost of goods sold increased as a percentage of
revenues as a result of the overall reduction in combined revenues from
brokerage and distribution services and the liquidation of the associated
inventories without a corresponding reduction in certain related fixed costs.
Margins from brokerage and sales of refurbished equipment were also compressed
by the effects of the slowdown in capital expenditures in the cable industry
which put pressure on selling prices. Direct labor expense associated with
increases in repair capacity is recognized in costs of goods sold. In the first
six months of 2002, revenue generated from our brokerage and distribution
services amounted to 24% of our total sales as opposed to 69% during the
previous year. The costs of goods associated with those sales were 97% during
2002 as opposed to 78% for the same period during 2001.

OPERATING EXPENSES

         Operating expenses for the first six months increased $1.7 million or
63% over the previous year. The increase was due to costs associated with two
repair facilities acquired from Broadband Services in August 2001. Also included
in the expenses were severance payments to former employees engaged in our
distribution and brokerages activities.

          In February 2002, we curtailed our operations in Canada and sought a
sale of the related assets, which we completed in May of this fiscal year. As a
result of the sale, we expect to recognize a third quarter loss estimated at
$2.7 million, including the write-down of approximately $2.5 million of goodwill
related to our acquisition of the facility in September 2000. For the first six
months of fiscal 2002, our Canadian facility incurred an operating loss that we
estimate at $338,000.

          During the second quarter of 2002, in order to focus on our core
repair service activities, we ceased our brokerage and distribution activities
(including the related refurbishment activities) and liquidated the related
inventories. This resulted in an operating loss for the first six months of
fiscal 2002 that we estimate at $540,000.

INCOME TAX PROVISION

         The effective tax benefit rate on continuing operations was 12% for the
first six months of 2002, as compared to 33% in 2001. This reflects the
valuation allowance being recognized against our deferred tax assets, due to
management's uncertainty whether we will realize profits in the near term that
will fully utilize our net operating losses.

DISCONTINUED OPERATIONS

         In February 2000, we decided to close our subsidiary, Auro Computer
Services, Inc. ("Auro").The operations of Auro were discontinued on February 21,
2000. As of December 31, 1999, we recorded a charge for the expected loss on the
disposition of Auro's assets, net of a tax effect. The assets were written down
to their estimated net realizable values. We recognized a gain of $180,230, net
of income tax, during the second quarter of 2001, due to the settlement of
Auro's obligations. There was no activity relating to Auro during the second
quarter of 2002. Adjustment will be made for Auro's remaining obligations as and
when they are settled with Auro's creditors. We do not anticipate any further
adverse impact on our financial position or results of operations relating to
Auro.

                                       14
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

         For the first six months of fiscal 2002, we had significant cash needs
which we satisfied with working capital advances totaling $3.0 million from our
French parent, A Novo SA. Initially advances bore interest at rates charged by A
Novo SA to its other affiliates, 2% over EURIBOR, not to exceed 6% per year. On
March 15, 2002, in light of our immediate needs for additional funding to meet
our working capital requirements and our inability to increase or renew our
existing bank line of credit, which matured on April 2, 2002, and our delay in
obtaining a new line of credit, A Novo SA advanced us $2,200,000. In order to
induce A Novo SA (a) to advance the additional funds, (b) to agree to
subordinate all of its working capital advances to a new credit line and (c) to
agree to guarantee a new credit line, the terms of such advances were revised
and incorporated into an unsecured demand convertible grid note of us in nominal
principal amount of $4 million, due on demand. From and after March 31, 2002,
interest on the principal of the note accrues at an annual rate equal to 2% plus
prime, adjusted monthly. The principal of the note may be converted into shares
of the our common stock at prices based on the average closing price per share
for the 10 trading days immediately following the time of the related advance.
The average conversion price is $1.41 per share. Based on a balance of
$3,000,574 outstanding as of March 31, 2002, the note was convertible into a
maximum of 2,133,520 shares of common stock. We received an additional $500,000
of advances under the demand note during April 2002. As of May 1, 2002, none of
the working capital advances from A Novo SA had been repaid.

         We expect that all amounts owing for working capital advances from A
Novo SA and its affiliates will be subordinated to our proposed new bank credit
facility.

         In addition to funding operating expenses, during the first six months
of fiscal 2002, we used cash to purchase capital equipment to enable us to
service Motorola and Scientific Atlanta and to pay severance costs attributable
to work force reductions.

         Our existing bank credit facility provides for advances of up to $1.5
million. Balances under the facility totaling approximately $1.518 million were
due, and the facility expired on April 2, 2002. The lender has taken no action
to enforce repayment of the loan, pending the Company's completion of a proposed
new line of credit from another bank but has not granted a formal extension of
the loan. As of May 20, 2002, we had received a term sheet and loan
documentation from another bank for a new secured line of credit of up to
$3,000,000, from which we expect to satisfy the existing facility prior to May
31, 2002. The existing facility was fully drawn as of March 31, 2002 and May 1,
2002. The terms of the new credit facility provides for interest at 2% over the
lending bank's prime rate and a one-year maturity.

         We believe that as a result of measures taken during the second quarter
to contain costs, conserve cash and our expectations of increasing revenues from
our core repair service functions, we will be able to meet our working capital
and capital expenditure requirements for the foreseeable future out of cash flow
from operations and incremental funds available under our proposed new credit
facility. Nevertheless, if the proposed new facility is not funded, we will have
immediate need for other sources of funds to satisfy our bank debt and provide
working capital. We have no assurance that our parent will continue to supply
working capital or other funds to meet our needs. Failure to obtain additional
working capital and to meet our obligations to our bank lender would have a
material adverse effect on our business.

         An important element of our business strategy has been the acquisition
of similar businesses and the integration of such businesses into our existing
operations. Any such acquisitions in the foreseeable future would probably
require that we obtain additional financing through the public or private
issuance of additional debt or equity securities. No such acquisitions are
currently pending or planned.

         To fund a portion of the purchase price of the Broadband Services
repair assets we acquired in August 2001, we obtained a $4.97 million bridge
loan from an affiliate of A Novo SA, with interest at 2% over EURIBOR, not to
exceed 6%. Accrued interest on the bridge loan was approximately $152,000 at
March 31, 2002. The bridge loan is convertible into shares of our common stock
at $1.40 per share (a maximum of 3,659,807 shares as of March 31, 2002 based on
a bridge loan balance of $5,123,730 at March 31, 2002.). Maturity of the bridge
loan has been extended to the closing date of our proposed new credit facility,
at which time we expect that the entire bridge loan balance will be converted
into shares of common stock.

                                       15
<PAGE>

CONTINGENCIES

         We are a party from time to time to ordinary litigation incidental to
our business, none of which is expected to have a material adverse effect on our
results of operations, financial position or liquidity.

FORWARD LOOKING STATEMENTS

         Certain statements in this report are forward-looking statements
regarding future events or our future financial performance. Forward-looking
statements can be identified by the use of words such as "estimates,"
"projects", "anticipates," " expects," "intends," " believes" or the negative
thereof or other variations thereon or by discussions of strategy that involve
risks and uncertainties. These statements are subject to a number of risks and
other factors, including those set forth in our Annual Report on Form 10-KSB for
our year ended September 30, 2001, as filed with the Securities and Exchange
Commission. Such risks include the immediate availability of additional working
capital, industry developments (including the rate at which digital broadband
services are introduced in our markets), our relations with broadband equipment
suppliers, competition (including direct competition by equipment suppliers and
broadband system operators), technological developments which may render our
services obsolete or unnecessary, and our likely increasing dependence on new
information systems. Forward-looking statements are necessarily based upon
assumptions, estimates and data that are uncertain. No assurance can be given
that the anticipated results will be achieved, and future results may in fact
differ materially from those anticipated.




                                       16

<PAGE>

                             A NOVO BROADBAND, INC.
                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities; Use of Proceeds

         None.

Item 3. Defaults Upon Senior Securities.


         The Company has defaulted in payment of its existing bank credit
facility that provides for advances of up to $1.5 million. Balances under the
facility were due, and the facility expired on, April 2, 2002. The lender has
taken no action to enforce repayment of the loan, pending the Company's
completion of a proposed new $3 million line of credit from another bank but has
not granted a formal extension of the loan. Total arrearages as of May 20, 2002
were approximately $1.518 million. The Company expects to pay the defaulted
facility prior to May 31, 2002 with proceeds of the proposed new line of credit.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K


         3.6      Demand  Convertible  Grid Note of the issuer dated
                  March 31, 2002 in nominal  principal amount of
                  $4 million, payable to A Novo SA.


                                       17
<PAGE>

                             A NOVO BROADBAND, INC.
                                   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.


                                          A Novo Broadband, Inc.



Date:  May 20, 2002              By:      /s/ William Kelly
                                     --------------------------------
                                          William Kelly
                                          President and Chief Executive Officer

 Date:  May 20, 2002             By:      /s/ Steven J. Easterday
                                     ----------------------------------------
                                          Steven J. Easterday
                                          Principal Financial Officer



                                      S-1
<PAGE>