SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q


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

          For the quarterly period ended March 31, 2003

     [ ]  TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934 (No Fee Required)

                           Commission File No. 0-27210


                                     Zunicom, Inc.
              ----------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


                Texas                                   75-2408297
     -------------------------------              --------------------------
     (State or other jurisdiction of                  (I.R.S. Employer
      incorporation of organization)                 Identification No.)

                  4300 Wiley Post Road, Addison, Texas 75001
        ----------------------------------------------------------------
                   (Address of principal executive office)


                                 (972) 851-5600
                          ----------------------------
                           (Issuer's telephone number)

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

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act). Yes    No  X
                                               ----   ----

As of March 31, 2003, 8,403,390 shares of Common Stock were outstanding.









                                        1


<PAGE>
                                  Zunicom, Inc.
                                      INDEX

                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheets at March 31, 2003 (unaudited)
and December 31, 2002. . . . . . . . . . . . . . . . . . . . . . . .   3

Consolidated Statements of Operations for the three
months ended March 31, 2003 and 2002 (unaudited) . . . . . . . . . .   5

Consolidated Statements of Cash Flows for the three
months ended March 31, 2003 and 2002 (unaudited) . . . . . . . . . .   7

Notes to Consolidated Financial Statements . . . . . . . . . . . . .   8

Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . . .  11

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.  14

Item 4.  Controls and Procedures. . . . . . . . . . . . . . . . . .   15


PART II - Other Information. . . . . . . . . . . . . . . . . . . . .  15

Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . . .  15

Item 2.  Changes in Securities . . . . . . . . . . . . . . . . . . .  15

Item 3.  Defaults Upon Senior Securities . . . . . . . . . . . . . .  15

Item 4.  Submission of Matters to a Vote of Securities Holders . . .  15

Item 5.  Other Information . . . . . . . . . . . . . . . . . . . . .  15

Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .  15

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17

Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . .  18

Exhibits Index . . . . . . . . . . . . . . . . . . . . . . . . . . .  24










                                        2

<PAGE>
PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements

                         ZUNICOM, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

                                               (Unaudited)
                                                March 31,     December 31,
                                                  2003           2002
                                               -----------   -------------
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . .   $    649,093   $     648,415
  Accounts receivable trade, net of
    allowance for doubtful accounts
    of $218,336 (unaudited) and
    $182,235  . . . . . . . . . . . . . . .      6,514,341       6,755,059
    Other . . . . . . . . . . . . . . . . .        122,794         190,611
  Inventories - finished goods, net of
    allowance for obsolescence of
    $480,710 (unaudited) and $422,710 . . .      8,134,679       8,013,727
  Prepaid expenses and other current assets        542,560         525,839
                                              ------------   -------------

      Total current assets. . . . . . . . .     15,963,467      16,133,651
                                              ------------   -------------
PROPERTY AND EQUIPMENT
  Facsimile and business center equipment        3,284,727       3,348,297
  Machinery and equipment . . . . . . . . .        679,682         668,213
  Computer equipment. . . . . . . . . . . .        229,592         227,117
  Furniture and fixtures  . . . . . . . . .        310,572         310,572
  Leasehold improvements. . . . . . . . . .        195,998         195,352
  Vehicles. . . . . . . . . . . . . . . . .        119,432         119,432
                                              ------------   -------------
                                                 4,820,003       4,868,983
  Less accumulated depreciation and
    amortization. . . . . . . . . . . . . .     (2,378,718)     (2,252,382)
                                              ------------   -------------
      Net property and equipment. . . . . .      2,441,285       2,616,601
                                              ------------   -------------

OTHER ASSETS. . . . . . . . . . . . . . . .         92,369          78,228
                                              ------------   -------------
TOTAL ASSETS. . . . . . . . . . . . . . . .   $ 18,497,121   $  18,828,480
                                              ============   =============


            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                   -Continued-

                                        3


<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                              (Unaudited)
                                               March 31,     December 31,
                                                 2003            2002
                                            -------------   -------------
CURRENT LIABILITIES
  Line of credit . . . . . . . . . . . .    $   5,494,870   $   5,536,750
  Current portion of long-term debt  . .        1,793,572         516,503
  Accounts payable . . . . . . . . . . .        5,033,593       5,397,510
  Accrued liabilities  . . . . . . . . .          992,073         942,971
  Other current liabilities  . . . . . .            9,200           9,200
                                            -------------   -------------
      Total current liabilities. . . . .       13,323,308      12,402,934
                                            -------------   -------------
LONG-TERM DEBT, less current portion . .           38,158       1,518,366
                                            -------------   -------------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Preferred stock - $1.00 par value;
    1,000,000 shares authorized; 115,088
    Class A shares issued and outstanding;
    liquidation preference of $604,212 .          115,088         115,088
  Common stock - $0.01 par value;
    50,000,000 shares authorized; 8,403,390
    shares issued and outstanding. . . .           84,034          84,034
  Additional paid-in capital . . . . . .       14,442,920      14,454,141
  Accumulated deficit  . . . . . . . . .       (9,506,387)     (9,746,083)
                                            -------------   -------------
      Total stockholders' equity . . . .        5,135,655       4,907,180
                                            -------------   -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  18,497,121   $  18,828,480
                                            =============   =============















            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        4

<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
               For the Three Months Ended March 31, 2003 and 2002
                                   (Unaudited)

                                                         2003          2002
                                                    -------------  -----------
REVENUES
  Battery and fulfillment revenues . . . . . . .    $ 12,985,031   $ 6,116,697
  Service revenue. . . . . . . . . . . . . . . .         673,756     1,020,041
                                                    ------------  ------------
                                                      13,658,787     7,136,738
COST OF REVENUES
  Cost of battery and fulfillment revenues . . .      11,018,591     4,803,030
  Direct servicing costs . . . . . . . . . . . .         149,929       183,782
                                                    ------------  ------------
                                                      11,168,520     4,986,812
                                                    ------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . . .       2,490,267     2,149,926

OPERATING EXPENSES
  Selling, general and administrative. . . . . .       1,845,232     1,594,482
  Depreciation and amortization of property
    and equipment. . . . . . . . . . . . . . . .         236,115       124,075
                                                     -----------  ------------
                                                       2,081,347     1,718,557
                                                     -----------  ------------
INCOME FROM OPERATIONS . . . . . . . . . . . . .         408,920       431,369

OTHER INCOME (EXPENSES)
  Interest income  . . . . . . . . . . . . . . .              -            864
  Interest expense . . . . . . . . . . . . . . .        (164,968)     (184,863)
  Other, net . . . . . . . . . . . . . . . . . .          (4,256)     (125,292)
                                                     -----------  ------------
                                                        (169,224)     (309,291)
                                                     -----------  ------------
INCOME BEFORE PROVISION FOR INCOME TAXES                 239,696       122,078

PROVISION FOR INCOME TAXES . . . . . . . . . . .              -             -
                                                     -----------  ------------
NET INCOME . . . . . . . . . . . . . . . . . . .     $   239,696  $    122,078
                                                     ===========  ============








            The accompanying footnotes are an integral part of these
                       consolidated financial statements.

                                  - Continued -

                                        5

<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
               For the Three Months Ended March 31, 2003 and 2002
                                   (Unaudited)


                                                         2003          2002
                                                    ------------   ------------

Net income attributable to common
  stockholders . . . . . . . . . . . . . . . . . .  $    228,475   $    110,857
                                                    ============   ============

Basic and diluted net profit per share
  attributable to common stockholders. . . . . . .  $       0.03   $       0.01
                                                    ============   ============

Number of weighted-average shares of common
  stock outstanding (basic and diluted). . . . . .     8,403,390      8,403,390
                                                    ============   ============






























            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        6



<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               For The Three Months Ended March 31, 2003 and 2002
                                   (Unaudited)


                                                         2003            2002
CASH FLOWS FROM OPERATING ACTIVITIES                -------------   -----------
Net income . . . . . . . . . . . . . . . . . . . .  $     239,696   $   122,078
Adjustments  to  reconcile  net  income
   to net cash  provided by operating
   activities:
    Depreciation of property and equipment . . . .        236,115       124,075
    Provision for bad debts. . . . . . . . . . . .         60,949         6,503
    Provision for obsolete inventory . . . . . . .         58,000         3,000
    Loss on disposal of equipment. . . . . . . . .             -         65,359
    Change in operating assets and liabilities
      Accounts receivable - trade. . . . . . . . .        179,769       (90,673)
      Accounts receivable - other. . . . . . . . .         67,817         3,934
      Inventories. . . . . . . . . . . . . . . . .       (178,952)      438,800
      Prepaid expenses and other current assets. .        (16,721)     (203,963)
      Other assets . . . . . . . . . . . . . . . .        (14,141)       (6,725)
      Accounts payable . . . . . . . . . . . . . .       (363,917)     (485,550)
      Accrued liabilities. . . . . . . . . . . . .         49,102       130,384
                                                    -------------  ------------
Net cash provided by operating activities. . . . .        317,717       107,222
                                                    -------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and equipment. . . . . . .        (60,799)     (133,454)
  Purchase of certificate of deposit . . . . . . .             -           (859)
                                                    -------------  ------------
Net cash used by investing activities. . . . . . .        (60,799)     (134,313)
                                                    -------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net activity on line of credit . . . . . . . . .        (41,880)     (458,679)
  Repayment of long-term debt. . . . . . . . . . .       (203,139)      (26,733)
  Payment of preferred stock dividends . . . . . .        (11,221)      (11,221)
                                                    -------------  ------------
Net cash used in financing activities. . . . . . .       (256,240)     (496,633)
                                                    -------------  ------------
NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS . . . . . . . . . . . . . . . .            678      (523,724)

Cash and cash equivalents at beginning of period .        648,415     1,355,153
                                                    -------------  ------------
Cash and cash equivalents at end of period . . . .  $     649,093  $    831,429
                                                    =============  ============



            The accompanying footnotes are an integral part of these
                       consolidated financial statements.


                                        7



<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and in  accordance  with  the  instructions  to  Form  10-Q  and  Article  10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the three month  period  ended March 31,  2003.  The results for the three month
period ended March 31, 2003 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 2003. The consolidated financial
statements  included  in this  filing  should  be read in  conjunction  with the
Company's  consolidated  financial  statements and notes thereto included in the
Company's annual report on form 10-KSB for the year ended December 31, 2002.

NOTE B - ORGANIZATION

Zunicom,  Inc.,  formerly  Tech  Electro  Industries,  Inc.,  ("Zunicom"  or the
"Company")  was formed on January  10,  1992 as a Texas  corporation.  Effective
October 17, 2002,  Tech Electro  Industries,  Inc.  changed its name to Zunicom,
Inc. Zunicom's subsidiary,  Universal Battery Corporation ("Universal") formerly
known as Computer  Components  Corporation,  has,  since its  inception in 1968,
evolved from a distributor  of  electronic  components  into a battery,  battery
powered products and security products  distributor and supplier,  a third-party
fulfillment   provider,   and  a  custom  battery  assembler.   Zunicom's  other
subsidiary,  Alphanet  Hospitality Systems Inc.  ("Alphanet"),  provides in-room
facsimile and business  center services to the hotel industry for their business
travelers through licensing  agreements.  Alphanet  generates  revenues from its
product  line  which  includes  InnFax(R)  and The  Office(TM).  InnFax(R)  is a
patented  in-room  facsimile  service which offers  guests a personal  facsimile
number and e-mail address to send and receive correspondence during the duration
of their stay,  as well as  facsimile,  printing and copying  capabilities.  The
Office(TM),  is a full  service,  credit  card  activated  business  center  for
business travelers staying at hotels.

NOTE C - STOCK BASED COMPENSATION

The Company  accounts for  stock-based  employee  compensation  arrangements  in
accordance  with provisions of Accounting  Principles  Board ("APB") Opinion No.
25,  "Accounting  for Stock  Issued to  Employees."  Under APB  Opinion  No. 25,
compensation  expense for employees is based on the excess,  if any, on the date
of grant, between the fair value of the Company's stock over the exercise price.
The Company did not record compensation expense related to the issuance of stock
options  during the three months ended March 31, 2003 and 2002.  Had the Company
determined  compensation based on the fair value at the grant date for its stock
options  under SFAS No.  123,  "Accounting  for  Stock-Based  Compensation,"  as
amended by SFAS No. 148, "Accounting for Stock-Based Compensation-Transition and
Disclosure-an  amendment of FASB  Statement  No. 123," net income and income per
share would not have significantly differed from reported net income.


                                        8
<PAGE>
NOTE C - STOCK BASED COMPENSATION (continued)

The  Company  accounts  for  equity   instruments  issued  to  non-employees  in
accordance  with the  provisions  of SFAS No. 123 as amended by SFAS No. 148 and
Emerging  Issues Task Force  ("EITF")  Issue No. 96-18,  "Accounting  for Equity
Instruments  That Are  Issued  to Other  Than  Employees  for  Acquiring,  or in
Conjunction with Selling, Goods or Services." All transactions in which goods or
services are the consideration  received for the issuance of equity  instruments
are accounted for based on the fair value of the  consideration  received or the
fair  value  of  the  equity  instrument  issued,  whichever  is  more  reliably
measurable.  The  measurement  date of the fair value of the  equity  instrument
issued is the  earlier of the date on which the  counterparty's  performance  is
complete or the date on which it is probable that performance will occur.

NOTE D - NET INCOME PER SHARE

Basic net income per share is computed by dividing net income,  decreased by the
preferred  stock  dividends of $11,221 for the three month periods  ending March
31, 2003 and 2002, by the weighted  average number of common shares  outstanding
for the period.  Diluted net income per share is computed by dividing net income
decreased by the preferred  stock  dividends by the weighted  average  number of
common shares and common stock equivalents  outstanding for the period. At March
31, 2003 and 2002,  all  outstanding  stock  options and warrants  have exercise
prices  greater  than  the  current  fair  value  of the  underlying  stock  and
therefore, have no effect on the diluted income per share computation.

NOTE E - LINE OF CREDIT

On March 27,  2002,  Universal  obtained  a  $12,000,000  line of credit  with a
financing  company,  payable on demand,  with interest  payable monthly at prime
plus  1.25%,  maturing  March  2005.  The line of credit is secured by  accounts
receivable,  inventories and equipment of Universal.  The line's availability is
based  on a  borrowing  formula  which  allows  for  borrowings  equal to 85% of
Universal's  eligible accounts  receivable and percentage of eligible inventory.
On March 31,  2003,  $5,494,870  of the line of credit  was  outstanding,  while
$390,916 remained available for borrowings under the line of credit.

NOTE F - NOTES PAYABLE - RELATED PARTY

Alphanet has two notes payable to related party financing companies. One note in
the original  principal  amount of $1,525,000  is payable to Appel  Investments,
Inc. of which Kim Yeow Tan, William Tan's brother,  is an officer,  director and
shareholder.  As of March 31, 2003,  Alphanet owes $986,308 in principal on this
note. The second note in the original  principal amount of $1,000,000 is payable
to AHS Funding LLC of which  Jenny  Jechart,  a  shareholder,  is the  principal
shareholder.  As of March 31, 2003,  Alphanet owes $440,400 in principal on this
note.  These notes,  which have interest rates of 20.5%,  originally  matured on
October  21,  2001 and have been  extended  to March 27,  2004.  These notes are
secured by a first lien on all Alphanet assets and a second lien on all Alphanet
stock owned by Zunicom.

Zunicom has a note payable to a related party  financing  company.  The original
principal  amount of $500,000 is payable to Caspic  International,  Inc. William
Tan,  the  President,  CEO and a  significant  shareholder  of Zunicom is also a
director and  shareholder  of Caspic  International,  Inc. As of March 31, 2003,
Zunicom owes $350,000 in principal on this note.  This note has an interest rate

                                       9
<PAGE>
NOTE F - NOTES PAYABLE - RELATED PARTY (continued)

of 12%,  originally  matured on May 25, 2000 and have been extended to September
10, 2003. The loan is secured by a pledge of all outstanding  shares of Alphanet
stock owned by Zunicom.

NOTE G - SEGMENTS

The battery and fulfillment segment represents the operations of Universal.  The
facsimile and business  center  segment  represents  the operations of AlphaNet.
These segments were  identified  based on the different  nature of the services,
location, and, in general, the type of customers.


A summary of the segment financial  information  reported to the chief operating
decision maker is as follows:
<TABLE>
<S>                              <C>             <C>         <C>        <C>
                                 ---------------------------------------------------
                                          Three Months Ended March 31, 2003
                                 ---------------------------------------------------
                                  Facsimile and  Battery and
                                 Business Center Fulfillment Adjustment Consolidated
                                 --------------- ----------- ---------- ------------
Revenue                          $   673,756     $12,985,031 $        - $ 13,658,787
Depreciation and amortization        207,267          27,320      1,528      236,115
Segment profit (loss)               (260,656)        301,027    199,325      239,696
Segment assets                     2,827,091      15,611,489     58,541   18,497,121
Capital expenditures by segment       49,329          11,470          -       60,799
</TABLE>

<TABLE>
<S>                              <C>             <C>         <C>        <C>
                                 ---------------------------------------------------
                                          Three Months Ended March 31, 2002
                                 ---------------------------------------------------
                                  Facsimile and  Battery and
                                 Business Center Fulfillment Adjustment Consolidated
                                 --------------- ----------- ---------- ------------
Revenue                          $ 1,018,696     $ 6,116,697 $   1,345  $  7,136,738
Depreciation and amortization         97,462          24,972     1,641       124,075
Segment profit (loss)                (36,623)        167,573    (8,872)      122,078
Segment assets                     3,784,841       7,553,063   115,447    11,453,351
Capital expenditures by segment       68,875          64,579         -       133,454
</TABLE>
The adjustments  represent  depreciation and  amortization  related to corporate
assets,  corporate  expenses,  and corporate  capital  expenditures to reconcile
segment balances to consolidated balances.

NOTE H - CONCENTRATIONS

Through March 31, 2003, a significant  portion of Universal's  business was with
one major customer, which represented  approximately 50%, of the Company's first
quarter  2003  revenue.  At March 31, 2003,  Universal  had  aggregate  accounts
receivable from this customer in the amount of $2,693,537. Through May 15, 2003,
substantially all of this amount has been collected.

                                       10
<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
Zunicom's Consolidated Financial Statements and notes thereto included elsewhere
in this Form 10-Q. Except for the historical  information  contained herein, the
discussion in this Form 10-Q contains  certain forward  looking  statements that
involve  risks  and  uncertainties,  such  as  statements  of  Zunicom's  plans,
objectives,  expectations and intentions. The cautionary statements made in this
Form 10-Q  should be read as being  applicable  to all  related  forward-looking
statements  wherever they appear in this Form 10-Q.  These  statements  include,
without limitation,  statements  concerning the potential operations and results
of the Company described below. Zunicom's actual results could differ materially
from these  discussed  here.  Factors  that could  cause or  contribute  to such
differences include,  without limitation,  those factors discussed herein and in
Zunicom's Annual Report on Form 10-KSB for the year ended December 31, 2002.

RECENT DEVELOPMENTS

On March 5, 2003 the  maturity  date of  Zunicom's  $500,000  note  payable to a
related  party was  extended to  September  10,  2003.  At April 30,  2003,  the
principal balance of this note is $329,200. Additionally, on March 27, 2003, the
maturity  dates  on  Alphanet's   notes  payable  to  related  parties  totaling
$1,475,854  at  December  31,  2002  were  extended  to March  27,  2004 with an
outstanding balance of $1,426,708 at March 31, 2003.

RESULTS OF OPERATIONS

Currently, the operations of Zunicom are conducted through its two subsidiaries,
Universal and Alphanet.

REVENUES

For the three month  period  ended  March 31,  2003,  Zunicom  had  consolidated
revenues of  $13,658,787  compared to $7,136,738 for the similar period in 2002,
an increase of $6,522,049 or 91%.

Universal,  Alphanet,  and Zunicom had revenues of $12,985,031,  $673,756 and $0
for the three month  period  ended  March 31,  2003,  respectively,  compared to
revenues of  $6,116,697,  $1,018,696  and $1,345 for the similar period in 2002,
respectively.

The $6,868,334  increase in Universal's  revenues is primarily  attributable  to
revenues  from  a  third  party  fulfillment  customer,  Brinks  Home  Security,
Universal's  largest  customer,  while  sales of  battery,  battery  related and
battery powered products remained  consistent in the primary markets serviced by
Universal.  Specifically,  Brinks Home Security sales totaled $6,764,275 for the
three month  period  ended March 31, 2003 and were $0 for the three month period
ended March 31, 2002.

Alphanet's  decrease in revenues of $344,940 is  attributable  to the  continued
decline in facsimile  usage by hotel guests,  service fees charged to hotels for
renewal of  expired  contracts,  as well as  declining  installations  of InnFax
machines.  However,  Alphanet's  decrease in facsimile revenues of approximately
$407,000 has been partially  offset by the increase usage and  installations  of
"The Office" product in hotels of $62,000.

                                       11
<PAGE>
COST OF REVENUES

For the three month period ended March 31, 2003, Zunicom's  consolidated cost of
revenues increased to $11,168,520 compared to cost of revenues of $4,986,812 for
the similar period in 2002, an increase of $6,181,708 or 124%.

Universal's and Alphanet's cost of revenues totaled $11,018,591 and $149,929 for
the  three  month  period  ended  March  31,  2003,  respectively,  compared  to
$4,803,030 and $183,782 during the similar period in 2002, respectively.

Increased  revenues at  Universal  during the three month period ended March 31,
2003  compared  to the  similar  period in 2002,  resulted in an increase in the
related  cost of revenues  during the three month  period  ended March 31, 2003,
compared to the similar  period in 2002.  Cost of  revenues as a  percentage  of
revenues for Universal  increased to 85% compared to 79% for the similar  period
in 2002. This increase is mainly attributable to the low margins earned on third
party  fulfillment  services to Brinks Home Security.  Our gross margins for the
three month  period  ended March 31, 2003 from  fulfillment  services for Brinks
Home  Security were  approximately  10% compared to average gross margins of 20%
from sales to other customers.

Alphanet's direct servicing costs as a percentage of service revenues  increased
to 22% for the three month period  ending March 31, 2003 compared to 18% for the
same period in 2002. The increase is primarily  attributable to the fewer number
of facsimile  machines  installed at hotels,  a decrease in recurring  facsimile
services,  and increased  reserves for facsimile  inventories as a result of the
continuing decline in service revenues.

OPERATING EXPENSES

For the  three  month  period  ended  March  31,  2003,  Zunicom's  consolidated
operating expenses,  consisting of selling,  general and administrative expenses
as well as depreciation and amortization of property and equipment  increased to
$2,081,347 compared to $1,718,557 for the similar period in 2002, an increase of
$362,790 or 21%.

The selling,  general and administrative  expenses of Universal,  Alphanet,  and
Zunicom  totaled  $1,440,140,  $322,766 and $82,326  respectively  for the three
month period ended March 31, 2003,  compared to $979,433,  $511,506 and $103,543
for the similar period in 2002, respectively.

The increase in Universal's selling, general and administrative expenses in 2003
is primarily due to increases in consulting fees of $36,000, personnel,  payroll
taxes,  group  health  insurance  costs of $310,499,  and rent and  utilities of
$59,669 associated with Universal's contract with Brinks Home Security.

The  decrease in  Alphanet's  selling,  general and  administrative  expenses is
primarily  attributable  to  decreased  personnel  costs and  sales  commissions
related to the reduction in sales,  marketing and customer support  employees as
well as continued cost-cutting efforts in other sales and marketing expenses.

The  decrease  in  Zunicom's  selling,  general and  administrative  expenses is
primarily  due to decreased  personnel  costs for the three month period  ending
March 31, 2003 compared to the same period in 2002.



                                       12
<PAGE>
For the  three  month  period  ended  March  31,  2003,  Zunicom's  consolidated
depreciation expense was $236,115 compared to $124,075 for the similar period in
2002,  an increase of  $112,040.  The  increase is  primarily  due to  increased
property and equipment at March 31, 2003 compared to March 31, 2002.

INTEREST EXPENSE

Zunicom's  consolidated interest expense was $164,968 for the three month period
ended March 31, 2003  compared to  $184,863  for the similar  period in 2002,  a
decrease of $19,895.  The decrease in interest  expense is  attributable  to the
decreased  interest  rate under the  Universal  line of credit  during the three
months  ended  March 31,  2003  compared  to the same  period in 2002 as well as
principal  payments  made by  Alphanet  on  outstanding  debt.  The  decrease in
Alphanet  notes  payable  at  interest  rates of 20.5% is  partially  offset  by
increased borrowings on the Universal line of credit, which has an interest rate
of prime plus 1.25% (5.5% at March 31, 2003).

LIQUIDITY

Zunicom,  on a consolidated basis, had cash and cash equivalents of $649,093 and
$831,492 at March 31, 2003 and 2002, respectively.

Net cash  provided by  operations  was $317,717 for the three month period ended
March 31, 2003  compared to $107,222  for the similar  period in 2002.  The cash
provided by operating  activities in 2003 was primarily related to net income of
$239,696,  depreciation of property and equipment of $236,115,  increases in the
provisions  for bad  debts  and  obsolete  inventory  of  $60,949  and  $58,000,
respectively, and a decrease in accounts receivable of $247,586, offset by a net
decrease in accounts payable and accrued liabilities of $314,815 and an increase
in inventory of $178,952.  The cash provided by operating activities in 2002 was
primarily  related  to net  income of  $122,078,  a  decrease  in  inventory  of
$438,800,  offset by a decrease in accounts  payable and accrued  liabilities of
$355,166.

Net cash used by investing activities for the three month period ended March 31,
2003,  was  $60,799  compared to $134,313  for the similar  period in 2002.  The
majority of the cash used in both 2003 and 2002 was  related to the  purchase of
property and equipment.

Net cash used in financing activities for the three month period ended March 31,
2002 was $256,240  compared to $496,633 for the similar  period in 2002. The net
cash used by financing  activities for both three month periods was comprised of
payments  on the  Universal  line of  credit,  repayment  of long  term debt and
payment of preferred stock dividends.

Universal has a $12,000,000 line of credit with a financing company,  payable on
demand, with interest payable monthly at prime plus 1.25%,  maturing March 2005.
The line of credit is secured by accounts receivable,  inventories and equipment
of  Universal.  The line's  availability  is based on a borrowing  formula which
allows for borrowings equal to 85% of Universal's  eligible accounts  receivable
and percentage of eligible inventory.  On March 31, 2003, $5,494,870 of the line
of credit was  outstanding,  while  $390,916  remained  available for borrowings
under the line of credit.

Alphanet has two notes payable to related party financing companies. One note in
the original  principal  amount of $1,525,000  is payable to Appel  Investments,

                                       13
<PAGE>
Inc. of which Kim Yeow Tan, William Tan's brother,  is an officer,  director and
shareholder.  As of March 31, 2003,  Alphanet owes $986,308 in principal on this
note. The second note in the original  principal amount of $1,000,000 is payable
to AHS Funding LLC of which  Jenny  Jechart,  a  shareholder,  is the  principal
shareholder.  As of March 31, 2003,  Alphanet owes $440,400 in principal on this
note.  These notes,  which have interest rates of 20.5%,  originally  matured on
October 21, 2001 and were extended to March 27, 2004. These notes are secured by
a first lien on all  Alphanet  assets and a second  lien on all  Alphanet  stock
owned by Zunicom.

As provided  for in the  Universal  line of credit  agreement  discussed  in the
preceding paragraph,  Universal may, under certain conditions,  borrow under the
line to  upstream  funds to its parent,  Zunicom,  to pay this  indebtedness  of
Alphanet.  Assuming  borrowing  availability  and certain fixed charge  coverage
ratio tests are met,  Universal may borrow for this purpose up to 50% of its net
income  for (i)  calendar  year 2001 and (ii)  quarterly  thereafter  until such
Alphanet  indebtedness  is paid. The loan agreements  between  Alphanet and said
financing  companies  have been amended to extend the maturity date of the notes
to March 27, 2004 in consideration  of Zunicom's  agreement to pay this Alphanet
indebtedness with available funds from the Universal line of credit.

Zunicom has a note payable to a related party  financing  company.  The original
principal  amount of $500,000 is payable to Caspic  International,  Inc. William
Tan,  the  President,  CEO and a  significant  shareholder  of Zunicom is also a
director and  shareholder of Caspic  International,  Inc. At April 30, 2003, the
principal  balance of this note is $329,200.  This note has an interest  rate of
12%,  originally matured on May 25, 2000 and was extended to September 10, 2003.
The loan is secured by a pledge of the shares of capital stock of Alphanet.

Zunicom is seeking alternative sources of financing to repay the said Appel, AHS
Funding and Caspic notes. Zunicom has attempted to obtain loans from traditional
lenders,  but to date,  Zunicom has been unable to secure loans with  acceptable
terms.  To date,  Zunicom  has been  unsuccessful  in securing  any  alternative
financing.

Zunicom  believes that cash provided by its operations and cash available  under
the Universal line of credit will be sufficient to meets its  operational  needs
over the next year. However, it will not be sufficient to retire the said Appel,
AHS Funding and Caspic indebtedness.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk due to changes in U.S.  interest  rates. We do not
engage in financial  transactions for trading or speculative purposes. We have a
$12  million  line of credit.  Amounts  borrowed  under the line of credit  bear
interest based on prime rate plus 1.25%.  Borrowings  under this credit facility
were $5.5 million as of March 31, 2003.  An increase in the interest rate on our
line of credit of 10% would have no material effect on our operating results. We
do not manage the risk through the use of derivative instruments.

Since the majority of goods that Universal purchases are from Asia, and Alphanet
conducts business in Canada, we have market risk arising from changes in foreign
currency exchange rates. At this time, we do not manage the risk through the use
of derivative  instruments.  A 10% adverse  exchange-rate  fluctuation would not
have a significant impact on our results of operations or financial position.


                                       14
<PAGE>
ITEM 4. CONTROLS AND PROCEDURES

Within 90 days prior to the date of this report,  we carried out an  evaluation,
under the  supervision  and with the  participation  of our principal  executive
officer and principal  financial officer, of the effectiveness of the design and
operation of our disclosure  controls and procedures.  Based on this evaluation,
our principal  executive officer and principal  financial officer concluded that
our disclosure  controls and procedures are effective in timely alerting them to
material  information  required to be included in our periodic  SEC reports.  It
should be noted that the design of any system of  controls is based in part upon
certain  assumptions about the likelihood of future events,  and there can be no
assurance  that any design will succeed in achieving  its stated goals under all
potential future conditions, regardless of how remote.

In addition,  there have been no significant changes in our internal controls or
in other factors that could  significantly  affect those controls  subsequent to
the date of their last evaluation.


PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

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

None.

Item 5. Other Information.

None.

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

a.      The following exhibits are filed as part of this report or incorporated
        herein as indicated.

        Exhibit 3    Amendment to Articles of Incorporation, amending the
        corporation name to Zunicom, Inc.

        Exhibit 99.1 Certification  Pursuant to 18 U.S.C.  Section 1350, as
        Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

        Exhibit 99.2 Certification  Pursuant to 18 U.S.C.  Section 1350, as
        Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



                                       15
<PAGE>
b.      The following reports on Form 8-K were filed or required to be filed for
        the last quarter.

        On March 7,  2003 the  Company  filed a Report  on Form 8-K to  report a
        change in  accountants  due to a merger of accounting  firms.  Effective
        March 1, 2003,  King Griffin & Adamson P.C.  merged with BDA&K  Business
        Services,  Inc. and formed a new entity,  KBA Group LLP.  The  personnel
        that the  Registrant  has dealt with at King  Griffin & Adamson P.C. are
        now employees of KBA Group LLP. As a result of this merger,  on March 1,
        2003, King Griffin & Adamson P.C. resigned to allow its successor entity
        KBA  Group  LLP to be  engaged  as the  Registrants  independent  public
        accountants.













































                                      16

<PAGE>
                                    Signature
                                    ---------

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, as amended, the registrant caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                       Zunicom, Inc.
                                       -----------------------------


Date:  May 15, 2003                    /s/ Julie Sansom-Reese
                                       --------------------------------
                                       Julie Sansom-Reese
                                       Chief Financial Officer







































                                       17


<PAGE>
                                 Certifications
                                 --------------

I, William Tan, certify that:

1.  I  have  reviewed  this  quarterly  report on Form 10-Q of Zunicom, Inc. and
Subsidiaries;

2.  Based on my  knowledge,  this quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

(a)      designed  such   disclosure   controls  and  procedures  to ensure that
         material   information   relating  to  the  registrant,  including  its
         consolidated  subsidiaries,  is  made  known  to  us by  others  within
         those  entities,  particularly  during   the   period  in  which   this
         quarterly report is being prepared;

(b)      evaluated the effectiveness of the registrant's disclosure controls and
         procedures as of a date within 90 days prior to the filing date of this
         quarterly report (the "Evaluation Date"); and

(c)      presented   in   this   quarterly  report  our  conclusions  about  the
         effectiveness  of the disclosure  controls and procedures based  on our
         evaluation as of the Evaluation Date;

5.  The  registrant's  other  certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of  registrant's  board  of  directors  (or  persons  performing  the equivalent
function):

(a)      all  significant  deficiencies  in the design or  operation of internal
         controls  which  could  adversely  affect the  registrant's  ability to
         record,   process,   summarize  and  report  financial  data  and  have
         identified  for the  registrant's  auditors any material  weaknesses in
         internal controls; and

(b)      any  fraud,  whether  or not  material,  that  involves  management  or
         other  employees  who  have  a  significant  role  in  the registrant's
         internal controls; and



                                       18



<PAGE>
6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:   May 15, 2003

                                         /s/ William Tan
                                         -------------------------------------
                                         William Tan
                                         President and Chief Executive Officer







































                                       19






<PAGE>
I, Julie Sansom-Reese, certify that:

1. I  have  reviewed  this quarterly  report  on Form 10-Q of Zunicom,  Inc. and
Subsidiaries;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

(a)      designed  such  disclosure  controls  and  procedures  to  ensure  that
         material  information   relating  to  the  registrant,   including  its
         consolidated  subsidiaries,  is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

(b)      evaluated the effectiveness of the registrant's disclosure controls and
         procedures as of a date within 90 days prior to the filing date of this
         quarterly report (the "Evaluation Date"); and

(c)      presented   in   this  quarterly  report  our  conclusions   about  the
         effectiveness  of the disclosure  controls and procedures based  on our
         evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

(a)      all  significant  deficiencies  in the design or  operation of internal
         controls  which  could  adversely  affect the  registrant's  ability to
         record,   process,   summarize  and  report  financial  data  and  have
         identified  for the  registrant's  auditors any material  weaknesses in
         internal controls; and

(b)      any  fraud,  whether  or not  material,  that  involves  management  or
         other  employees  who  have  a  significant  role  in  the registrant's
         internal controls; and










                                       20
<PAGE>
6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  May 15, 2003
                                                     /s/ Julie Sansom-Reese
                                                     -------------------------
                                                     Julie Sansom-Reese
                                                     Chief Financial Officer














































                                       21
<PAGE>


                                  Exhibit Index



Exhibit No.       Description of Exhibits

3                 Amendment to the Articles of Incorporation  for the purpose of
                  changing the name of the Corporation to "Zunicom, Inc."

99.1              Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

99.2              Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.









































                                       24