UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

     [X]  QUARTERLY  REPORT  UNDER  SECTION 13 AND 15(d) OF THE  SECURITIES  AND
EXCHANGE ACT OF 1934

               FOR THE QUARTERLY PERIOD ENDED: September 30, 1998

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

            For the transition period from ____________ to __________


                          Commission File Number 0-3825

                               MPEL HOLDINGS CORP.
                  (Formerly Computer Transceiver Systems, Inc.)
         (Exact name of registrant as specified in its current charter)

          NEW YORK                                       22-1842747
(State or other jurisdiction                          (I.R.S. Employer
of incorporation or organization)                    Identification No.)

                    25 MELVILLE PARK ROAD, MELVILLE, NY 11747
                    (Address of principal executive offices)

                                 (516) 364-2700
              (Registrant's telephone number, including area code)



                 6851 JERICHO TURNPIKE, SYOSSET, NEW YORK 11791
         (Former Name and former Address, if Changed Since Last Report)

     Indicated  by check mark whether the  registrant  (1) has filed all reports
required to be filed by section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the  preceding 12 months(or for such shorter  period the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X . No .

                                       ---


     As of September 30, 1998, the registrant had 9,408,462  shares  outstanding
of common stock,  $.01 par value.  The shares of common stock represent the only
class of common stock of the registrant.

<PAGE>

                       MPEL HOLDINGS CORP. AND SUBSIDIARY


                                      Index


                                     PART I
                              FINANCIAL INFORMATION

                                                                      
Item 1. FINANCIAL STATEMENTS

        Condensed Consolidated Balance Sheets at
        September 30, 1998 (Unaudited) and December 31, 1997

        Condensed Consolidated Statements of Operations for the
        Three and Nine Months Ended September 30, 1998 and 1997
        (Unaudited)

        Condensed Consolidated Statements of Cash Flows for the
        Nine Months Ended September 30, 1998 and 1997 (Unaudited)

        Notes to Condensed Consolidated Financial Statements
        (Unaudited)

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


                                     PART II
                                OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Changes in Securities

Item 3.  Defaults upon Senior Securities

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

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K


<PAGE>


                          PART 1. FINANCIAL INFORMATION


Item 1. Financial Statements

<TABLE>
<CAPTION>

                       MPEL HOLDINGS CORP. AND SUBSIDIARY
                     CONDENSED CONSOLIDATED BALANCE SHEETS




                                                                                    September 30,        December 31,
                                                                                        1998                 1997
                                                                                  ------------------   ------------------
                                                                                     (Unaudited)     
<S>                                                                            <C>                    <C>
ASSETS


     Cash and cash equivalents                                                 $            713,145   $          377,709
     Mortgage loans held for sale                                                         6,974,887            6,300,764
     Due from investors                                                                   5,743,418            6,959,131
     Other receivables and other assets                                                   1,160,919            1,684,676
     Due from stockholders                                                                  283,646              263,646
     Deferred offering costs                                                                      0              122,283
     Property and equipment-net                                                             670,681              508,624
                                                                                  ==================   ==================
                                                                               $         15,546,696   $       16,216,833
                                                                                  ==================   ==================




LIABILITIES & STOCKHOLDERS' EQUITY

LIABILITIES
     Warehouse line of credit                                                  $         10,987,157   $       10,532,994
     Loans closed to be disbursed                                                         1,529,550            1,989,264
     Notes Payable                                                                          891,899            1,241,652
     Subordinated debt                                                                      378,000              878,000
     Obligation under capital lease                                                         124,651              193,184
     Accounts payable and accrued expenses                                                1,175,525              786,158
                                                                                  ------------------   ------------------
                                                                                         15,086,782           15,621,252
STOCKHOLDERS' EQUITY
     Common stock-$.01 par value; authorized
       15,000,000; issued and outstanding
       9,368,462 and 9,408,462 shares at September
       30, 1998 and December 31, 1997, respectively,                                         94,085               80,560
     Additional paid-in capital                                                           2,941,089              591,723
     Accumulated deficit                                                                (2,575,260)             (76,702)
                                                                                  ------------------   ------------------
                                                                                            459,914              595,581
                                                                                  ------------------   ------------------
                                                                                  ==================   ==================
                                                                               $         15,546,696   $       16,216,833
                                                                                  ==================   ==================

</TABLE>

<PAGE>


<TABLE>
<CAPTION>


                                                                
                       MPEL HOLDINGS CORP. AND SUBSIDIARY
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                   (Unaudited)


                                                            Three Months Ended                           Nine Months Ended
                                                               September 30,                                September 30,
                                                       1998                 1997                    1998                 1997
                                                ------------------   ------------------      ------------------   ------------------

<S>                                             <C>                  <C>                     <C>                  <C>
REVENUE:

     Mortgage origination, net                  $   2,199,956         $   1,653,554          $   6,644,409        $   5,291,388
     Interest earned                                  281,906               249,062                853,026              692,951
                                                ------------------   ------------------      ------------------   ------------------
TOTAL REVENUE                                       2,481,862             1,902,616              7,497,435            5,984,339
                                                ------------------   ------------------      ------------------   ------------------

EXPENSES:
     Commissions, wages and benefits                2,262,126             1,808,681              6,076,087            4,116,969
     Selling and administrative                       734,064               637,974              2,628,010            1,832,935
     Interest expense                                 433,803               274,079              1,291,896              712,484
                                                ------------------   ------------------      ------------------   ------------------
TOTAL EXPENSES                                      3,429,993             2,720,734              9,995,993            6,662,388
                                                ------------------   ------------------      ------------------   ------------------
OPERATING LOSS                                       (948,131)             (818,118)            (2,498,558)            (678,049)
Other income                                                0             1,000,000                      0            1,000,000
                                                ==================   ===================     ==================   ==================
NET GAIN (LOSS)                                   $  (948,131)           $  181,882           $ (2,498,558)         $   321,951
                                                ==================   =====================   ==================   ==================


     BASIC AND DILUTED GAIN (LOSS) PER SHARE        $   (0.10)             $   0.02                $ (0.29)            $   0.04
                                                ==================   ==================      ==================   ==================

     WEIGHTED AVERAGE NUMBER OF COMMON
       SHARES OUTSTANDING                           9,214,969             8,000,000              8,591,486            8,000,000
                                                ==================   ==================      ==================   ==================

</TABLE>
                                                                

<PAGE>
<TABLE>
<CAPTION>

                       MPEL HOLDINGS CORP. AND SUBSIDIARY
                  CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
                                   (Unaudited)



                                                                                             Nine Months Ended
                                                                                               September 30,
                                                                                        1998                 1997
                                                                                  ------------------   ------------------

<S>                                                                            <C>                      <C> 
CASH FLOW FROM OPERATING ACTIVITIES
            
     Net gain (loss)                                                           $        (2,498,558)     $        321,951

     Adjustments to reconcile net loss
     to net cash used in operating activities
       Shares issued in payment of interest expense                                               0               56,000
       Depreciation                                                                          91,283               79,773
       Compensation charge for stock purchase                                               341,232                    0
       Amortization of notes payable discount
         regarding warrants issued                                                          271,132                    0
       Net changes in:
         Due from investors                                                               1,215,713                    0
         Other receivables and other assets                                                 526,809          (1,159,176)
         Mortgage loans held for sale                                                     (674,123)          (1,597,570)
         Accounts payable and accrued liabilities                                           103,488            (162,191)
                                                                                  ---------------------------------------
NET CASH USED BY OPERATING ACTIVITIES                                                     (623,024)          (2,461,213)

CASH FLOW USED IN INVESTING ACTIVITIES
         Purchase of fixed assets                                                         (253,340)            (267,167)
                                                                                  ------------------   ------------------

CASH FLOW FROM FINANCING ACTIVITIES
     Net change in warehouse line of credit                                                 454,163              836,608
     Net change in loans closed to be disbursed                                           (459,714)                    0
     Bank overdraft included in accounts payable                                            285,878                    0
     Advances from related parties                                                         (20,000)            (263,646)
     Repayments of obligation under capital lease                                          (68,532)                    0
     Changes in notes payable                                                             (620,885)            1,448,815
     Change in deferred offering costs                                                      122,283            (122,283)
     Net proceeds from sale of stock                                                      2,018,607                    0
     Change in subordinated debt                                                          (500,000)              878,000
                                                                                  ------------------   ------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                                 1,211,800            2,777,494
                                                                                  ------------------   ------------------

INCREASE IN CASH AND CASH EQUIVALENTS                                                       335,436               49,114

Cash and cash equivalents at beginning of period                                            377,709              328,897
                                                                                  ------------------   ------------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                     $            713,145     $        378,011
                                                                                  ==================   ==================


</TABLE>

<PAGE>
<TABLE>
<CAPTION>

 
                       MPEL HOLDINGS CORP. AND SUBSIDIARY
                  CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
                                   (Unaudited)


                                                                                            Nine Months Ended
                                                                                              September 30,
                                                                                        1998                 1997
                                                                                  ------------------   ------------------


<S>                                                                            <C>                  <C>     
SUPPLEMENTAL DISCLOSURES:

            
     Cash paid for interest                                                    $            914,366     $         681,760
                                                                                  ==================   ==================
</TABLE>
<PAGE>

                       MPEL HOLDINGS CORP. AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


BASIS OF PRESENTATION

     The accompanying  Condensed  Consolidated  Financial Statements include the
accounts of MPEL Holdings Corp. and its wholly-owned  subsidiary,  Mortgage Plus
Equity and Loan Corp., a full service retail mortgage banker.

INTERIM FINANCIAL STATEMENTS

     The results of the interim period are not necessarily indicative of results
to be expected for the entire fiscal year. The figures contained in this interim
report are unaudited and may be subject to year-end adjustments.  In the opinion
of management,  all adjustments  necessary for a fair  presentation of financial
position and results of operations  have been included,  such as normal accruals
and  elimination  of  significant  intercompany  balances and  transactions,  in
consolidation.  It is  suggested  that  these  financial  statements  be read in
conjunction  with  financial  statements  and  notes  thereto  included  in  the
Company's Post-Effective Amendment No. 1 to Form SB-2, filed with Securities and
Exchange Commission on June 10, 1998.

COMMON STOCK OFFERING

     The Company  filed  Registration  Statement  SB-2 with The  Securities  and
Exchange  Commission  on March 17, 1998,  for the purpose of offering  1,300,000
shares of common stock at $2.50 per share (the  "Offering").  The effective date
of the Offering was May 15, 1998. To date,  the Company has received  $2,395,800
in net proceeds from the sale of these shares. The Company expects to receive an
additional  $854,200 from the net sale  proceeds in the fourth  quarter and will
utilize substantially all of the net proceeds for working capital, expansion and
debt repayment.

EARNINGS PER SHARE

     In 1997, the Financial Accounting Standards Board issued Statement No. 128,
Earnings per Share.  Statement No. 128 replaced the  calculation  of primary and
fully  diluted  earnings  per share with basic and diluted  earnings  per share.
Unlike  primary  earnings  per  share,  basic  earnings  per share  calculations
excludes any dilutive effects of options,  warrants and convertible  securities.
Diluted  earnings per share is very  similar to the  previously  reported  fully
diluted  earnings per share.  Earnings per share have been  computed by dividing
income available to common stockholders by the weighted average number of common
shares outstanding during the period

STOCKHOLDERS' EQUITY

     On May 1, 1998, the estate of a deceased stockholder sold 420,220 shares to
the Company's  principal  stockholders (who are the officers of the Company) for
total  consideration of $551,646.  As a result of this transaction,  the Company
has recognized a one time  compensation  charge and credit to additional paid in
capital  of  $341,232  representing  the  excess of the fair value of the shares
(estimated at $2.50 per share) acquire by the officers over the purchase price.

INTEREST EXPENSE

     Interest expense includes $271,123, representing the amortization of a note
payable  discount,  which  resulted  from the  issuance  of warrants to purchase
888,888 shares of common stock.  The Company valued the warrants at $328,889 and
reduced the note payable by the $328,889 discount, which is being amortized over
the life of the note.
<PAGE>

NEW ACCOUNTING PRONOUNCEMENTS

     On June 15, 1998, the Financial  Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards No. 133, Accounting for Derivative
Instruments and Hedging  Activities ("FAS 133"). FAS 133 is effective for fiscal
years  beginning  after June 15,  1999.  FAS 133  requires  that all  derivative
instruments be recorded on the balance sheet at their fair value. Changes in the
fair value of  derivatives  are  recorded  each period in current  earning or in
other comprehensive  income,  depending on whether the derivative is designed as
part of a hedge  transaction  and,  if it is,  the  type of  hedge  transaction.
Management of the Company anticipates that the adoption of FAS 133 will not have
a material  effect on the  Company's  results  of  operations  or its  financial
position.

IMPACT OF YEAR 2000

     Like most  corporations,  the Company is reliant upon technology to run its
business.  Many computer  systems process dates using two digits to identify the
year, and some systems are unable to properly  process dates  beginning with the
year 2000. The Company is currently  assessing and  addressing  this "Year 2000"
issue and does not believe the costs  connected with this assessment will have a
material adverse effect on the Company's  results of operations.  Non-compliance
with the year 2000 issue by third  parties  with whom the Company has a relation
will not have a material effect on the Company's  business,  financial condition
and results of operations.

FORWARD-LOOKING STATEMENTS

     This Form 10-QSB contains forward-looking  statements within the meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange Act of 1934. Forward-looking statements are inherently subject to risks
and  uncertainties,  many of which cannot be predicted with accuracy and some of
which might not even be anticipated. Future events and actual results, financial
and otherwise,  could differ  materially from those set forth in or contemplated
by the forward-looking statements contained herein. Important factors that could
contribute  to  such  differences  are:  increased   competition;   increase  in
unemployment or other changes in domestic  economic  conditions  which adversely
effect the sale on new and used  homes;  changes in interest  rates;  changes in
government  regulations  effecting  consumer  credit  and  other  risks  factors
identified in the Company's filings with the Securities and Exchange Commission,
including  under the  caption  "Risk  Factors"  on page 8 of the  Post-Effective
Amendment No. 1 to Form SB-2 filed on June 10, 1998.


<PAGE>



                       MPEL HOLDINGS CORP. AND SUBSIDIARY


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

OVERVIEW

     The Company, through its wholly owned subsidiary,  Mortgage Plus, is a full
service retail mortgage  banking company  providing a broad range of residential
mortgage products, since 1987, (including first mortgages,  second mortgages and
home  equity  loans) to (i) prime,  or "A"  credit,  borrowers  who  qualify for
conventional  mortgages  (including  loans  which  conform to the  standards  of
certain institutional  investors,  such as Federal National Mortgage Association
("FNMA") and Federal Home Loan Mortgage Corporation  ("FHLMC")),  (ii) borrowers
who are classified as sub-prime,  or B/C credit  borrowers,  and (iii) borrowers
who qualify for mortgages insured by the Federal Housing  Administration ("FHA")
or guaranteed by the Veterans Administration ("VA").

     The  following  is   management's   discussion   and  analysis  of  certain
significant  factors which have effected the  Company's  financial  position and
operating  results  during the period  included  in the  accompanying  condensed
consolidated financial statements.

RESULTS OF OPERATIONS

     The  three-month   period  ended  September  30,  1998,   compared  to  the
three-month period ended September 30, 1997

     MORTGAGE  ORIGINATION.  The Company increased its mortgage loan origination
volume to $45.0 million  during the three month period ended  September 30, 1998
from $33.3  million  during the  corresponding  period of 1997,  an  increase of
35.1%.  This increase in mortgage loan  origination  volume was primarily due to
origination volume at new branches and increased  origination volume at existing
branches,  resulting from expanded  marketing  campaign which included increased
telemarketing, television exposure and loan officers.

     REVENUE. Mortgage origination, net, increased $546,402 or 33.0% to $2,200.0
million.  The  increase  was  due to  increased  volume  of  operations  and the
expansion program.  Interest income increased $32,844, or 13.2% to $281,906. The
increase was due to increased  volume of  operations  and higher  percentage  of
"B/C" credit-rated mortgage loans.

     EXPENSES.  Commissions,  wages and benefits increased $453,445, or 25.1% to
$2,262.1 million. The increase in commissions,  wages and benefits was primarily
due to an  increase  in sales  staff and  administrative  personnel  required to
process  the  increased  volume of  mortgage  loan  originations  and new branch
start-up  expenses.  As of September 30, 1998,  the Company had 153 employees as
compared to 118 employees as of September 30, 1997.  Selling and  administrative
expenses,  which consist of marketing,  occupancy,  supplies,  selling and other
expenses  increased  $96,090,  or 15.1% to $734,064.  This  increases was due to
increased  volume of operations and start up expenses of new branches.  Interest
expense  increased  $159,724,  or 58.3% to  $433,803.  This  increase was due to
increased  volume of  operations  and  amortization  of notes  payable  discount
regarding warrants issued.

     The nine-month period ended September 30, 1998,  compared to the nine-month
period ended September 30, 1997

     MORTGAGE  ORIGINATION.  The Company increased its mortgage loan origination
volume to $143.8 million during the nine-month  period ended  September 30, 1998
from $100.1  million  during the  corresponding  period of 1997,  an increase of
43.7%.  This increase in mortgage loan  origination  volume was primarily due to
increased  origination volume at existing branches and origination volume of new
branches.
<PAGE>

     REVENUE. Mortgage origination, net, increased $1,353.0 million, or 25.6% to
$6,644,409.  The  increase  was due to increased  volume of  operations  and the
expansion program. Interest income increased $160,075, or 23.1% to $853,026. The
increase was due to increased  volume of  operations  and higher  percentage  of
"B/C" credit-rated mortgage loans.

     EXPENSES.  Commissions,  wages and benefits increased $1,959.1 million,  or
47.6% to $6,076.1 million.  The increase in commissions,  wages and benefits was
primarily  due to an  increase  in  sales  staff  and  administrative  personnel
required to process the increased  volume of mortgage loan  originations and new
branches start up expenses.  Selling and administrative  expenses, which consist
of occupancy, marketing supplies, selling and other expenses increased $795,075,
or 43.4% to $2,628.0  million.  This  increase  was due to  increased  volume of
operations  and start up expenses of new branches.  Interest  expense  increased
$579,412,  or 81.3% to $1,291.9  million.  This  increase  was due to  increased
volume of  operations  and  amortization  of notes  payable  discount  regarding
warrants issued.

     Under the expansion  program,  the Company expanded  existing  branches and
opened several new branch offices in Puerto Rico, Arkansas,  Missouri,  Ohio and
Illinois.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's principal sources of liquidity are cash flow from operations,
warehouse  credit  facility and stock  offering.  The cash flow from  operations
consists of fees received from its borrowers for mortgage originations, the sale
of mortgage loan in the secondary  market and interest  income on loans held for
sale. The Company's primary  operating cash requirements  include the funding or
payment of: (i) loan originations;  (ii) interest expense incurred on borrowings
under its warehouse  facility;  (iii) capital  expenditures;  (iv) personnel and
commission costs; and (v) other operating and administrative expenses.

     Management   expects  to  increase  its   production   of  mortgage   loans
originations,  through, among other things, increased advertising and promotion,
expanded  telemarketing  capabilities and continued  expansion into new markets.
This expected increase in mortgage loan originations is expected to be funded by
cash flow from operations and increased  borrowings under warehouse  facilities.
To the extent that additional borrowings under the warehouse facilities or other
arrangements  are not available on satisfactory  terms, the Company will explore
alternative  means of financing,  including  raising capital through  additional
offerings of securities.

     In August 1998,  the Company  entered into a $10,000,000  warehouse  credit
facility with Green Shield Limited, L.L.C. ("Green Shield") for a one year term.
The  facility,  a revolving  credit  facility,  permits the Company to borrow to
originate  mortgage  loans,  repay  and  borrow  again to  originate  additional
mortgage  loans.  Interest is charged on the  outstanding  principal  balance at
prime plus 1.5%.  The term of the  facility  may be  extended by the Company and
Green Shield.


<PAGE>



                           PART II. OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

     MPEL is involved as a party to certain legal proceedings  incidental to its
business.  MPEL  believes that the outcome of such  proceedings  will not have a
material effect upon its business or financial condition.

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.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

a)  Exhibits

          27               Financial Data Schedule


b)  Reports

    None.


<PAGE>



                                   SIGNATURES

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





Dated:  November 13, 1998    By:    /s/ STEVEN M. LATESSA
                                -----------------------------------
                                STEVEN M. LATESSA - President,
                                Principal Executive Officer



Dated:  November 13, 1998    By:    /s/ CARY WOLEN
                                ------------------------------------
                                CARY WOLEN - Chief Operating Officer,
                                Treasurer and Principal Financial Officer