SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


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

         For the quarterly period ended June 30, 2001

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

                           Commission File No. 0-27210


                          Tech Electro Industries, Inc.
              ----------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


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

           275 N Franklin Turnpike, Ste 230, Ramsey, New Jersey 07446
        ----------------------------------------------------------------
                     (Address of principal executive office


                                 (201) 760-9900
                          ----------------------------
                           (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 [ ]

     As of June 30, 2001, 8,282,432 shares of Common Stock were outstanding.















                                        1


<PAGE>




                                      INDEX



                                                                      Page
PART I - Financial Information

Item 1.  Financial Statements

   Consolidated Balance Sheets at June 30, 2001 (unaudited)
   and December 31, 2000................................................3

   Consolidated Statements of Operations for the periods
   ended June 30, 2001 and 2000 (unaudited).............................5

   Consolidated Statements of Cash Flows for the periods ended
   June 30, 2001 and 2000 (unaudited)...................................7

   Notes to Consolidated Financial Statements...........................9

Item 2.  Management's Discussion and Analysis or Plan of Operation.....11

PART II - Other Information............................................16

   Item 1.  Legal Proceedings..........................................16

   Item 2.  Changes in Securities......................................16

   Item 3.  Defaults Upon Senior Securities............................16

   Item 4.  Submission of Matters to a Vote of Securities Holders......16

   Item 5.  Other Information..........................................16

   Item 6.  Exhibits and Reports on Form 8-K...........................16

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













                                        2


<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                                  (Unaudited)      December 31,
                                                 June 30, 2001        2000
                                                 -------------    -------------
CURRENT ASSETS
     Cash and cash equivalents....................$    410,440    $    839,060
     Certificate of deposit.......................     157,561         153,519
     Accounts receivable trade, net of allowance
        for doubtful accounts of $ 163,202
        (unaudited) and $218,763..................   3,570,601       4,390,700
        Other.....................................      37,457          40,280
     Inventories, net of allowance for
        obsolescence of $341,274(unaudited) and
        $335,274..................................   3,077,901       3,303,541
     Prepaid expenses and other current assets....     952,483         814,864
                                                   -----------     -----------

           Total current assets...................   8,206,443       9,541,964
                                                   -----------     -----------
PROPERTY AND EQUIPMENT
     Facsimile and business center equipment......   3,957,516       4,252,306
     Machinery and equipment .....................     557,868         526,628
     Furniture and fixtures.......................     244,483         241,388
     Computer equipment ..........................     214,138         210,706
     Vehicles.....................................      46,262          46,262
     Leasehold improvements.......................     181,276         181,276
                                                   -----------     -----------
                                                     5,201,543       5,458,566
     Less accumulated depreciation and
        amortization..............................  (1,976,871)     (1,866,068)
                                                   -----------     -----------
           Net property and equipment.............   3,224,672       3,592,498
                                                   -----------     -----------

OTHER ASSETS
     Deferred financing costs, net................     126,718         274,231
     Other........................................       6,628          18,436
                                                   -----------     -----------
           Total other assets.....................     133,346         292,667
                                                   ----------      -----------
TOTAL ASSETS......................................$ 11,564,461    $ 13,427,129
                                                   ==========      ===========

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

                                  - Continued -

                                        3
<PAGE>


                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                   (Unaudited)     December 31,
                                                  June 30, 2001        2000
                                                  -------------    ------------
CURRENT LIABILITIES
     Line of credit...............................$  1,575,613     $ 2,617,720
     Current portion of long-term debt............   2,865,614       2,894,990
     Accounts payable.............................   2,111,057       2,426,417
     Accrued liabilities..........................     541,297         629,276
     Other current liabilities....................       9,200           9,200
                                                    ----------      ----------
            Total current liabilities.............   7,102,781       8,577,603
                                                    ----------      ----------

LONG-TERM DEBT, less current portion..............      30,142          89,666
                                                     ---------      ----------
            Total liabilities.....................   7,132,923       8,667,269

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
     Preferred stock - $1.00 par value; 1,000,000
        shares authorized; 120,588 Class A issued
        and outstanding; liquidation preference
        of $633,087...............................     120,588         120,588
     Common stock - $0.01 par value; 50,000,000
        shares authorized; 8,282,432(unaudited)and
        8,198,197 shares issued and outstanding
        at June 30, 2001 and December 31, 2000,
        respectively..............................      82,824          81,982
     Additional paid-in capital...................  14,468,674      14,457,207
     Accumulated deficit.......................... (10,240,548)     (9,899,917)
                                                    ----------      ----------
            Total stockholders' equity............   4,431,538       4,759,860
                                                    ----------      ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........$ 11,564,461     $13,427,129
                                                    ==========      ==========








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

                                        4


<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  For the Periods Ended June 30, 2001 and 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                           Three Months Ended June 30,     Six Months Ended June 30,
                                            ------------------------       ------------------------
                                               2001           2000            2001          2000
<S>                                         <C>            <C>             <C>           <C>
REVENUES                                    ---------      ---------       ----------    ----------
     Sales.................................$4,542,533     $3,398,409      $10,017,322   $ 7,087,963
     Service revenue....................... 1,262,890      2,334,492        2,657,508     4,286,997
                                            ---------      ---------       ----------    ----------
                                            5,805,423      5,732,901       12,674,830    11,374,960

COST OF REVENUES
     Cost of goods sold.................... 3,692,347      2,726,311        8,123,080     5,618,912
     Direct servicing costs................   233,696        767,377          600,379     1,173,839
                                            ---------      ---------       ----------    ----------
                                            3,926,043      3,493,688        8,723,459     6,792,751
                                            ---------      ---------       ----------    ----------
GROSS PROFIT............................... 1,879,380      2,239,213        3,951,371     4,582,209

OPERATING EXPENSES
     Selling, general and administrative... 1,553,464      2,041,991        3,214,283     3,814,699
     Depreciation and amortization of
         property and equipment............   209,667        154,382          422,552       414,905
                                            ---------      ---------        ---------    ----------
                                            1,763,131      2,196,373        3,636,835     4,229,604
                                            ---------      ---------        ---------    ----------
INCOME FROM OPERATIONS                        116,249         42,840          314,536       352,605

OTHER INCOME (EXPENSES)
     Interest income.......................     1,978          3,753            5,628        11,721
     Interest expense......................  (232,729)      (150,706)        (481,981)     (434,687)
     Amortization of deferred financing
        costs..............................   (73,756)      (205,143)        (147,513)     (278,899)
     Lawsuit settlement....................         -              -                -      (400,086)
     Other.................................    (7,119)        86,997           (8,992)       96,207
                                            ---------      ---------        ----------    ---------
                                             (311,626)      (265,099)        (632,858)   (1,005,744)
                                            ---------      ---------        ----------    ---------
LOSS BEFORE PROVISION FOR INCOME TAXES
    AND EXTRAORDINARY GAIN.................  (195,377)      (222,259)        (318,322)     (653,139)

PROVISION FOR INCOME TAXES.................         -             -                -               -
                                            ---------      ---------        ---------     ---------
LOSS BEFORE EXTRAORDINARY GAIN.............  (195,377)      (222,259)        (318,322)     (653,139)
</TABLE>


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

                                   -Continued-

                                        5


<PAGE>


                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
                  For the Periods Ended June 30, 2001 and 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                           Three Months Ended June 30,     Six Months Ended June 30,
                                            ------------------------       ------------------------
                                               2001           2000            2001          2000
<S>                                         <C>            <C>             <C>           <C>
                                            ---------      ---------       ----------    ----------
EXTRAORDINARY GAIN.........................         -              -                -       568,750
                                            ---------      ---------       ----------    ----------
NET LOSS...................................$ (195,377)    $ (222,259)     $  (318,322)  $   (84,389)
                                            =========      =========       ==========    ==========
Net loss attributable to common
     Stockholders..........................$ (208,280)    $ (233,527)        (340,631)  $  (108,092)
                                            =========      =========       ==========    ==========
Basic and diluted net loss before
     extraordinary gain per share
     attributable to common shareholders...$    (0.03)    $    (0.03)     $     (0.04)  $     (0.08)

Basic and diluted extraordinary gain per
     share attributable to common
     shareholders..........................         -              -                -          0.07
                                            ---------      ---------       ----------    ----------
Basic and diluted net loss
     per share attributable to common
     shareholders..........................$    (0.03)    $    (0.03)     $     (0.04)  $     (0.01)
                                            =========      =========       ==========    ==========
Number of weighted-average shares of
     common stock outstanding (basic
     and diluted).......................... 8,248,024      7,694,004        8,226,511     7,904,323
                                            =========      =========       ==========    ==========
</TABLE>















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


                                        6
<PAGE>


                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF CASH FLOWS For The Six Month
                      Periods Ended June 30, 2001 and 2000
                                   (Unaudited)

                                                             2001        2000
CASH FLOWS FROM OPERATING ACTIVITIES                     ----------- -----------
Net loss                                                 $ (318,322) $  (84,389)
Adjustments to reconcile net loss to net
   cash provided by (used by) operating activities:
     Common stock issued for compensation...............          -     (45,000)
     Common stock returned recorded as other income.....    (10,000)          -
     Depreciation and amortization of property
        and equipment...................................    422,552     414,905
     Provision for bad debts............................    (55,561)    (16,170)
     Provision for obsolete inventory...................      6,000       6,000
     Extraordinary gain on note retirement..............          -    (568,750)
     Amortization of debt discount......................     32,622      32,622
     Amortization of deferred financing costs...........    147,513     278,899
     Change in operating assets and liabilities
           Accounts receivable - trade..................    875,660     250,065
           Accounts receivable - other..................      2,823      40,956
           Inventories..................................    219,640    (125,242)
           Prepaid expenses and other current assets....   (137,619)   (199,099)
           Other assets.................................     11,808       9,661
           Accounts payable.............................   (315,360)   (395,040)
           Accrued liabilities..........................    (87,979)   (111,435)
                                                         -----------  ----------
Net cash provided by (used by) operating activities.....    793,777    (512,017)
                                                         -----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of property and equipment..................    (54,726)   (300,021)
   Proceeds on sale of property and equipment...........          -      76,031
   Payments received on notes receivable................          -     101,562
   Write-off of notes receivable........................          -      80,146
   Increase in certificate of deposit...................     (4,042)     (5,292)
                                                         -----------  ----------
Net cash used by investing activities...................    (58,768)    (47,574)
                                                         -----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net activity on line of credit....................... (1,042,107)    682,980
   Repayment of long-term debt..........................   (121,522)   (670,017)
   Proceeds from long-term debt.........................          -     500,000
                                                         -----------  ----------
Net cash provided by (used by) financing activities....  (1,163,629)     512,963
                                                         -----------  ----------

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

                                   -Continued-
                                        7


<PAGE>


                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
              For The Six Month Periods Ended June 30, 2001 and 2000
                                   (Unaudited)

                                                          2001          2000
                                                       ----------    ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS..........      (428,620)      (46,628)

Cash and cash equivalents at beginning
     of period   ..................................       839,060       894,261
                                                       ----------    ----------
Cash and cash equivalents at end of period.........   $   410,440    $  847,633
                                                       ==========    ==========
SUPPLEMENTAL SCHEDULE OF NONCASH
     INVESTING AND FINANCING ACTIVITIES

     Issuance of common stock for
        settlement of note payable.................   $         -    $1,031,250
                                                       ==========    ==========
     Dividends paid through issuance
        of common stock............................   $    22,309    $   23,703
                                                       ==========    ==========
     Issuance of warrants recorded as
        deferred financing costs...................   $         -    $  163,553
                                                       ==========    ==========

     Acquisition of property and equipment
        through capital lease......................   $         -    $   17,288
                                                       ==========    ==========






















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

                                        8


<PAGE>

                 TECH ELECTRO INDUSTRIES, 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  per Item  310(b) of  Regulation  SB.
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 six month period  ended June 30, 2001.  The results for the six month period
ended June 30, 2001 are not  necessarily  indicative  of the results that may be
expected for the year ended December 31, 2001.

NOTE B - ORGANIZATION

Tech Electro Industries,  Inc. ("TEI") was formed on January 10, 1992 as a Texas
corporation.  TEI's subsidiary,  Computer Components  Corporation ("CCC"), doing
business as Universal  Battery ("UBC"),  stocks and sells electronic  components
and batteries.  Within the battery sales  activity,  there is significant  value
added to the batteries in the assembly of batteries into "packs".  UBC's battery
and electronic  components sales are generated by in-house sales staff and sales
representatives  to customers  throughout the United States.  TEI's  subsidiary,
AlphaNet  Hospitality  Systems,  Inc.  ("AHS"),  provides in-room  facsimile and
business center services to the hotel industry through licensing agreements. AHS
generates  revenues from its product line which includes  InnFax(R),  The Office
TM)and InnPhone.  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.  InnPhone is
a private labeled product line  featuring digital and analog phones  distributed
by AHS to the hospitality industry.

NOTE C - NET LOSS PER SHARE

Basic  net loss per  share is  computed  by  dividing  net  loss,  decreased  or
increased by the  preferred  stock  dividends of $22,309 and $23,703 for the six
month  periods  ending  June 30,  2001 and 2000,  respectively  by the  weighted
average number of common shares outstanding for the period. Diluted net loss per
share is computed by dividing net loss adjusted for preferred stock dividends by
the  weighted  average  number of common  shares  and common  stock  equivalents
outstanding for the period.  TEI's common stock  equivalents are not included in
the  diluted  loss per share for the six month  periods  ended June 30, 2001 and
2000 as they are antidilutive.

NOTE D - RECLASSIFICATIONS

Certain 2000 amounts have been reclassified to conform with 2001 presentation.


                                        9
<PAGE>


NOTE E - SEGMENTS

The battery and electronic sales segment represents the operations of UBC, which
includes  the  stocking  and sales of battery  and  electronic  components.  The
hospitality  service  operations of AHS provides  private in-room  facsimile and
office  business center for business  travelers.  These segments were identified
based on the different nature of the services,  location,  and, in general,  the
type of customers for those services.

A summary of the segment financial  information  reported to the chief operating
decision maker is as follows:

<TABLE>
<CAPTION>
                                                 Six Months Ended June 30, 2001
                                     -------------------------------------------------------
                                                      Battery and
                                      Facsimile &      Electronic
                                     Business Center     Sales      Adjustment  Consolidated
                                     ---------------  ------------  ----------  ------------
<S>                                  <C>              <C>           <C>         <C>
Revenue                              $ 2,657,508      $ 10,017,322  $       -   $ 12,674,830
Depreciation and amortization            372,708            47,300      2,544        422,552
Segment profit (loss)                   (565,958)          244,515      3,121       (318,322)
Segment assets                         4,466,139         7,012,288     86,034     11,564,461
Capital expenditures by segment           39,162            15,564          -         54,726
</TABLE>

<TABLE>
<CAPTION>
                                                 Six Months Ended June 30, 2000
                                     -------------------------------------------------------
                                                      Battery and
                                      Facsimile &      Electronic
                                     Business Center     Sales      Adjustment  Consolidated
                                     ---------------  ------------  ----------  ------------
<S>                                  <C>              <C>           <C>         <C>
Revenue                              $ 4,286,997      $  7,087,963  $       -   $ 11,374,960
Depreciation and amortization            372,284            40,167      2,454        414,905
Segment profit (loss)                   (113,621)         (284,128)   313,360        (84,389)
Segment assets                         5,849,326         5,277,918     18,590     11,145,834
Capital expenditures by segment          244,588            55,433          -        300,021
</TABLE>

The adjustments  represent  depreciation and  amortization  related to corporate
assets,  corporate  expenses,  and corporate  capital  expenditures to reconcile
segment balances to consolidated amounts.




                                       10

<PAGE>
        ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following  discussion and analysis should be read in conjunction  with TEI's
Consolidated  Financial  Statements and notes thereto included elsewhere in this
Form  10-QSB.  Except  for the  historical  information  contained  herein,  the
discussion in this Form 10-QSB contains certain forward looking  statements that
involve risks and uncertainties,  such as statements of TEI's plans, objectives,
expectations and intentions.  The cautionary statements made in this Form 10-QSB
should be read as being  applicable  to all related  forward-looking  statements
wherever  they appear in this Form 10-QSB.  These  statements  include,  without
limitation,  statements  concerning the potential  operations and results of the
Company described below. TEI'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 TEI's Annual
Report on Form 10-KSB for the year ended December 31, 2000.

BACKGROUND AND RECENT DEVELOPMENTS

On April 18,  2001,  we launched a new  business  through  our new wholly  owned
subsidiary,  DomainGorilla.com,  Inc., a New Jersey  corporation.  We will offer
".com",  ".net" and ".org" top-level domain name  registration  services with an
emphasis on bulk  renewals,  transfers and  registrations.  We are accredited to
offer this service by The Internet  Corporation  for Assigned Names and Numbers,
a.k.a.  ICANN. This a new venture for us. We have no experience in this business
and we cannot assure any investor in our stock that we will be successful. As of
the date of this filing, we have had no revenues from this business.

On April 25, 2001,  AHS signed a License  Agreement with Trety Ltd. of Hong Kong
to market and sell The Office (TM)  through its wholly  owned  subsidiary  Trety
Hospitality UK Ltd. The License  Agreement  provides for royalty payments to AHS
on sales from Trety  Hospitality  UK Ltd. The markets  covered by this agreement
include  continental  Europe,  United Kingdom and The Republic of Ireland. As of
the date of this  filing,  we have  recognized  no  revenues  from this  License
Agreement.

RESULTS OF OPERATIONS

Currently,  Tech Electro  Industries,  Inc.'s  ("TEI")  operations are conducted
through its two  wholly-owned  subsidiaries,  Computer  Components  Corporation,
doing  business  as  Universal  Battery   Corporation   ("UBC"),   and  AlphaNet
Hospitality Systems Inc. ("AHS").

THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THREE MONTHS ENDED JUNE 30, 2000.

Revenues

For the three month  period ended June 30, 2001,  Tech  Electro  Industries  had
consolidated  revenues  of  $5,805,423  compared to  $5,732,901  for the similar
period ended June 30, 2000, an increase of $72,522 (1.3%).

Universal Battery and AlphaNet had revenues of $4,542,533 and $1,262,890 for the
three month period ended June 30,  2001,  respectively,  compared to revenues of
$3,398,409  and $2,334,492  for the similar  period in 2000,  respectively.  The
$1,144,124 in increased  Universal  Battery revenues is largely  attributable to
the  increase in sales of battery and  battery  related  products to the primary
markets  serviced by Universal  Battery.  Specifically,  direct  shipping  sales

                                       11
<PAGE>
accounted for approximately $436,193 or 38.1% of the increase. Batteries sold to
the  medical  industry  represented  $456,802  or  39.9%  of  Universal  Battery
increased  revenues and $251,129 or 22.0% related to new business growth in both
industrial and consumer batteries. AlphaNet's decrease in revenues of $1,071,602
is largely  attributable  to the continued  decline in facsimile  usage by hotel
guests which  represents  $518,920 of the  decrease,  as well as, the  declining
installation base of InnFax machines in North America. Additionally, $380,928 of
the decrease is  attributable  to a decrease of new  installations  and hardware
revenues from 2000.  Revenues  generated from  AlphaNet's The Office product for
the three months ended June 30, 2001  remained  flat in  comparison  to the same
period in 2000.  However,  sales of AlphaNet's InnPhone product increased by 96%
to  $67,691  during  the  second  quarter  of 2001 in  comparison  to $34,600 in
revenues during the same period in 2000.

Cost Of Revenues

For the three  month  period  ended  June 30,  2001,  Tech  Electro  Industries'
consolidated  cost of  revenues  increased  to  $3,926,043  compared  to cost of
revenues of $3,493,688  for the similar  period in 2000, an increase of $432,355
(12.4%).

Universal  Battery's and  AlphaNet's  cost of revenues  totaled  $3,692,347  and
$233,696 for the three month period ended June 30, 2001,  compared to $2,726,311
and $767,377 for the similar period in 2000, respectively. Increased revenues at
Universal  Battery during the three month period ended June 30, 2001 compared to
the  similar  period in 2000  resulted  in an  increase  in the cost of revenues
during the three month period ended June 30, 2001 compared to the similar period
in 2000.  Cost of revenues as a  percentage  of revenues for  Universal  Battery
increased  to 81.3%  compared  to 80.2% for the  similar  period  in 2000.  This
increase  is  mainly  attributable  to  lowering  the  prices  of goods  sold to
Universal Battery's largest account Schumacher Electric,  which is a high volume
and direct  shipping  customer.  Cost of  Revenues  as a  percentage  of service
revenues for AlphaNet  decreased to 18.5%  compared to 32.9% for the three month
period  ending June 30,  2001 and 2000,  respectively.  The  decrease in cost of
revenues  is  primarily  a result of a fewer  number of  new  installations  and
resulting  hardware  costs,  which  represents  70% of the  decrease in costs of
revenues.  The remaining  decrease in cost of revenues is due to the decrease in
direct  service  related costs.  These costs are relatively  fixed in nature and
thus have not decreased significantly as revenue has decreased.

Operating Expenses

For the three  month  period  ended  June 30,  2001,  Tech  Electro  Industries'
consolidated   operating   expenses,   consisting   of   selling,   general  and
administrative   and  depreciation  and  amortization   expenses   decreased  to
$1,763,131  compared to $2,196,373 for the similar period in 2000, a decrease of
$433,242 (19.7%).

Universal Battery's,  AlphaNet's,  and Tech Electro Industries' selling, general
and   administrative   expenses   totaled   $693,498,   $715,859  and  $144,107,
respectively  for the three  month  period  ended  June 30,  2001,  compared  to
$659,150,  $1,211,623 and $171,218 for the similar period in 2000, respectively.
The increase in Universal Battery's selling, general and administrative expenses
in 2001 is due to increases in advertising and wages. The decrease in AlphaNet's
selling,  general and  administrative  expenses is largely  attributable  to the
decrease in  personnel,  which  decreased  wages and  bonuses.  A  reduction  in

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recruiting  expenses also contributed to the decrease.  Tech Electro Industries'
selling,  general and administrative  expenses  decreased in legal,  accounting,
consulting and printing costs.

For the three  month  period  ended  June 30,  2001,  Tech  Electro  Industries'
consolidated  depreciation  expense was  $209,667  compared to $154,382  for the
similar period in 2000, an increase of $55,285.

Interest Expense

For the three month period ended June 30, 2001,  Tech Electro  Industries,  on a
consolidated  basis,  incurred $232,729 in interest expense compared to $150,706
for the similar period in 2000, an increase of $82,023 (54.4%). This increase is
due to the increased borrowings under the Universal Battery line of credit.

SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO SIX MONTHS ENDED JUNE 30, 2000.

Revenues

For the six month period ended June 30,  2001,  TEI had revenues of  $12,674,830
compared  to  $11,374,960  for the  similar  period  in  2000,  an  increase  of
$1,299,870 (11.4%).

The increase in revenues is largely  attributable to an increase in sales of UBC
to  $10,017,322  and AHS to  $2,657,508  for the six months  ended June 30, 2001
compared to revenues of  $7,087,963  and  $4,286,997  for the similar  period in
2000,  respectively.  The $2,929,359 in increased  Universal Battery revenues is
largely  attributable  to the  increase in sales of battery and battery  related
products to the primary  markets  serviced by Universal  Battery.  Specifically,
direct  shipping sales  accounted for  approximately  $1,346,477 or 46.0% of the
increase.  Batteries sold to the medical industry represented $775,585 or 26.5%,
while the remaining  $807,297 or 27.6%  represents  new business  growth in both
industrial and consumer batteries. AlphaNet's decrease of $1,629,489 in revenues
is attributable to the decline in InnFax usage by hotel guests which  represents
$1,142,258  of the decrease and the decrease of new  installations  and hardware
sales of $366,520  from 2000.  Revenues  generated  for the year ending June 30,
2001,  $232,108 was generated form the Office  product  compared to $255,425 for
the same period in 2000. Also,  $179,324 was generated from the InnPhone for the
six month period June 30, 2001 compared to $109,565 for the same period in 2000,
which represents a 64% increase.

Cost of Revenues

For the six month period ended June 30, 2001,  TEI's cost of revenues  increased
to $8,723,459 compared to $6,792,751 for the similar period in 2000, an increase
of $1,930,708 (28.4%).

Universal  Battery's and  AlphaNet's  cost of revenues  totaled  $8,123,080  and
$600,379 for the six month period  ended June 30, 2001,  compared to  $5,618,912
and $1,173,839 the similar period in 2000,  respectively.  Increased revenues at
Universal  Battery  during the six month period ended June 30, 2001  compared to
the  similar  period in 2000,  resulted  in an  increase in the cost of revenues
during the six month period ended June 30, 2001  compared to the similar  period
in 2000.  Cost of revenues as a  percentage  of revenues for  Universal  Battery
increased  to 81.1%  compared  to 79.3% for the  similar  period  in 2000.  This

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<PAGE>
increase is attributable mainly to lowering prices to Schumacher Electric, which
is Universal  Battery's  largest  account and a high volume and direct  shipping
customer.  Cost of Revenues as a  percentage  of service  revenues  for AlphaNet
decreased to 22.6%  compared to 27.4% for the six month  period  ending June 30,
2001 and 2000,  respectively.  The  decrease in cost of revenues is  primarily a
result of a fewer number of new  installations  and  resulting  hardware  costs,
which represents 60% of the decrease in cost of revenues. The remaining decrease
in cost of revenues  is due to the  decrease in direct  service  related  costs.
These  costs  are  relatively  fixed  in  nature  and thus  have  not  decreased
significantly as revenue has decreased.

Operating Expenses

For the six  month  period  ended  June  30,  2001,  TEI's  operating  expenses,
consisting  mainly of selling,  general  and  administrative,  depreciation  and
amortization  expenses  decreased to $3,636,835  compared to $4,229,604  for the
similar period in 2000, a decrease of $592,769 (14.0%).

Universal Battery's,  AlphaNet's,  and Tech Electro Industries' selling, general
and  administrative  expenses  totaled  $1,365,189,   $1,564,430  and  $284,664,
respectively  for the six  month  period  ending  June  30,  2001,  compared  to
$1,280,251,   $2,218,695   and  $315,753   for  the  similar   period  in  2000,
respectively.   The  increase  in  Universal  Battery's  selling,   general  and
administrative  expenses in 2001 is due to increases in advertising,  travel and
wages. The decrease in AlphaNet's selling,  general and administrative  expenses
is largely attributable to the decrease in personnel,  which decreased wages and
bonuses.  A reduction  in  recruiting  expenses  and  temporary  personnel  also
contributed  to the  decrease.  Tech Electro  Industries'  selling,  general and
administrative expenses decreased slightly in legal, accounting,  consulting and
printing costs.

For the six  month  period  ended  June  30,  2001,  TEI  incurred  $422,552  in
depreciation  and  amortization  expense  compared to  $414,905  for the similar
period in 2000, an increase of $7,647 (1.8%).

Interest Expense

For the six month  period  June 30,  2001,  TEI  incurred  $481,981  in interest
expense  compared to $434,687  during the similar period in 2000, an increase of
$47,294  (10.9%).  This  increase is due to the increased  borrowings  under the
Universal Battery line of credit.

Liquidity

Tech Electro Industries had cash and cash equivalents on a consolidated basis of
$410,440 and $847,633 at June 30, 2001 and 2000, respectively.

Net cash provided by operations was $793,777 for the six month period ended June
30, 2001 compared to cash used of $512,017 for the similar  period in 2000.  The
majority  of the cash  provided  during  2001  related to a decrease in accounts
receivable of $875,660 and a decrease in inventory of $219,640 offset by the net
loss of $318,322 and a decrease in accounts  payable and accrued  liabilities of
$403,339.  The 2000 cash used by operating  activities results from the net loss
of $84,389,  the extraordinary gain on note retirement of $568,750,  an increase
in  inventory  of  $125,242,  an increase in prepaid  expense and other  current
assets of $199,099 and a decrease in accounts payable and accrued liabilities of
$506,475 offset by a decrease in accounts receivable of $250,065.

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<PAGE>
Net cash used by  investing  activities  for the six month period ended June 30,
2001,  was  $58,768  compared to $47,574  for the  similar  period in 2000.  The
majority of this amount resulted from purchases of property and equipment during
the six month period ended June 30, 2001.  This amount  primarily  resulted from
net purchases of property and  equipment of $223,990 less payments  received and
write-offs of notes  receivables  of $181,708  during the six month period ended
June 30,2000.

Net cash used by  financing  activities  for the six month period ended June 30,
2001 was $1,163,629 compared to cash provided of $512,963 for the similar period
in 2000. The net cash used by financing activities for the six months ended June
30, 2001  comprised of net payments of $1,042,107 on the Universal  Battery line
of credit and repayments of long-term debt of $121,522. The net cash provided by
financing  activities  for the six months ended June 30, 2000 was net borrowings
on the line of credit of $682,980,  repayment of long-term  debt of $670,017 and
proceeds of $500,000 received on the Caspic loan.

Universal Battery has a $3,000,000 line of credit with a financial  institution,
payable on demand,  with  interest  payable  monthly at prime plus 2%,  maturing
August 2002. The line of credit is secured by accounts  receivable,  inventories
and  equipment  of  Universal  Battery.  The line's  availability  is based on a
borrowing  formula  which  allows  for  borrowings  equal  to 85%  of  Universal
Battery's eligible accounts  receivable and 50% of eligible  inventory.  On June
30, 2001,  $1,575,613 of the line of credit was  outstanding,  while  $1,207,323
remained available for borrowings under the line of credit.

As of June 30, 2001,  AlphaNet has notes  payable to  financing  companies  with
balances of $2,183,451,  net of unamortized discount of $21,749. 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 June 30, we owe $1,343,800 in principal on this note. Accrued
interest is paid through June 30, 2001. The other note in the original principal
amount of  $1,000,000  is payable to AHS Funding LLC of which Jenny  Jechart,  a
shareholder of Tech Electro Industries, is the principal shareholder. As of June
30,  2001,  we owe  $861,400  in  principal  on this note.  These  notes have an
interest  rate of 20.5%,  mature on October  21, 2001 and are secured by a first
lien on all  AlphaNet  assets and a second lien on all  AlphaNet  stock owned by
Tech Electro Industries.

Tech  Electro  Industries  currently  has a  $500,000  note at a 12%  per  annum
interest  rate payable on September  10, 2001 to Caspic  International,  Inc. of
which William Tan is an officer, director and shareholder.  As of June 30, 2001,
we owe  $500,000 in  principal.  As of June 30,  2001,  we owe  $20,000  accrued
interest on this note. As of July 31, 2001 the accrued interest has been paid in
full.

We are seeking  alternative  sources of financing  to repay the said Appel,  AHS
Funding and Caspic notes.  These  lenders have not  indicated  whether they will
refinance these loans. We have applied for loans from traditional  lenders,  but
to date have been unable to secure  acceptable loan terms or terms with which we
can comply.  To date,  we have been  unsuccessful  in securing  any  alternative
financing.




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Tech Electro  Industries  believes that cash provided by its operations and cash
available under the Universal Battery 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.

INFLATION

TEI has not been materially effected by inflation. While TEI does not anticipate
inflation  affecting  TEI's  operations,  increases in labor and supplies  could
impact TEI's ability to compete.

INTERNATIONAL CURRENCY FLUCTUATION

Since the  majority  of goods  that UBC  purchases  are from  Asia,  it has been
subject, like its competitors,  to international  currency fluctuation since the
Company's inception. The management of UBC does not believe that the fluctuation
in currency presents a serious threat to its operations.

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.

None.













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                                    Signature
                                    ---------

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


                                       Tech Electro Industries, Inc.
                                       -----------------------------


Date: August 13, 2001                  /s/  Julie Sansom-Reese
                                       --------------------------------
                                       Chief Financial Officer























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