SECURITIES & EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

For the quarterly period ended September 30, 1997

[ ]  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 or organization                              Identification No.

4300 Wiley Post Rd., Dallas, Texas                                 75244-2131
Address of principal executive office                                Zip Code

Issuer's telephone number:  (972) 239-7151

Check  whether  the issuer has (1) filed all  reports  required by Section 13 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 September 30, 1997, 2,446,875 shares of Common Stock were outstanding.




 
                                                       

<PAGE>



         THIS DOCUMENT IS PREPARED AND FILED UNDER THE REQUIREMENTS
         OF REGULATION S-B OF THE SECURITIES AND EXCHANGE COMMISSION,
         EFFECTIVE JULY 31, 1992.

                                      Index
Item                                                                        Page

Part I - Financial Statements

         Item 1 - Financial Statements (unaudited)

                       Condensed Consolidated Balance Sheet at
                       September 30, 1997 and 1996.............................3

                       Condensed Consolidated Statement of Income for
                       the Periods Ended September 30, 1997 and
                       and 1996................................................5

                       Condensed Consolidated Statements of Cash Flows
                       for the Periods Ended September 30, 1997 and
                       1996....................................................6

                       Notes to Condensed Consolidated Financial
                       Statements..............................................7

         Item 2  -  Management's Discussions and
                       Analysis of Financial Condition and
                       Results of Operations...................................9

Part II - Other Information

         Item 1 - Legal Proceedings...........................................12

         Item 2.  Changes in Securities.......................................12

         Item 3.  Defaults Upon Senior Securities.............................12

         Item 4.  Submission of Matters to a
                    Vote of Securities Holders................................12

         Item 5.  Other Information...........................................13

         Item 6.  Exhibits and Reports on Form 8-K............................13

Signatures....................................................................14

 
                                       -2-

<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.



                   Tech Electro Industries, Inc. Consolidated
                      Condensed Consolidated Balance Sheet
                                   (Unaudited)
         For the Periods Ended September 30, 1997 and December 31, 1996

                                             ASSETS
                                                        1997        1996
                                                     ---------   ---------
CURRENT ASSETS
   Cash and cash equivalents                           137,316     261,973
   Certificates of deposit                             706,005     214,336
   Marketable securities                               109,375     937,500
   Accounts and notes receivable
     Accounts receivable trade                         782,641     357,674
     Notes                                             335,000      15,000
     Other                                             305,345      22,209
     Income taxes                                        8,382           0
   Inventory                                         1,852,378   1,493,132
   Prepaid expenses                                    282,013      80,943
                                                     ---------   ---------
TOTAL CURRENT ASSETS                                 4,518,455   3,382,767
                                                     ---------   ---------

NET PROPERTY & EQUIPMENT                               282,000     192,152
                                                     ---------   ---------

OTHER ASSETS
   Notes receivable                                     86,452     113,538
   Other assets                                          2,360       2,428
                                                     ---------   ---------
TOTAL OTHER ASSETS                                      88,812     115,966
                                                     ---------   ---------
TOTAL ASSETS                                         4,889,267   3,690,885
                                                     =========   =========















            See Notes to Condensed Consolidated Financial Statements



                                       -3-

<PAGE>



                   Tech Electro Industries, Inc. Consolidated
                      Condensed Consolidated Balance Sheet
                                   (Unaudited)
         For the Periods Ended September 30, 1997 and December 31, 1996

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                              1997          1996
                                        ----------    ----------
Current liabilities:
   Accounts payable trade                  285,293       267,125
   Accounts payable - other                    273             0
   Accrued liabilities                     103,760        21,466
   Notes payable - banks                   275,000       347,772
   Notes payable - affiliates                    0       245,000
   Dividends payable                        52,196        13,459
                                        ----------    ----------
     Total current liabilities             716,522       894,822

MINORITY INTEREST IN SUBSIDIARY             47,392        76,933

STOCKHOLDERS' EQUITY:
   Preferred stock, $1.00 par              365,000       365,000
         value; 1,000,000 shares
         authorized,65,000 Class B
         issued and outstanding,
         liquidation preference
     of $341,250; 280,700 Class A
     issued and outstanding,
     liquidation preference
     of $1,473,675
   Common stock, $.01 par value;            24,083        13,083
        10,000,000 shares authorized,
        2,446,875 shares issued and
        outstanding on September 30,
        1997 and 1,308,275 shares 
        issued and  outstanding on 
        December 31, 1996. 
   Additional paid in capital            4,209,909     2,350,202
   Unrealized Gains (Losses)                39,937       (75,204)
   Retained Earnings (Deficit)            (513,576)       66,049
                                        ----------    ----------
 Total stockholders' equity              4,125,353     2,719,130
                                        ----------    ----------
 TOTAL LIABILITIES &
 STOCKHOLDERS' EQUITY                    4,889,267     3,690,885
                                        ==========    ==========

            See Notes to Condensed Consolidated Financial Statements


 
                                       -4-

<PAGE>


<TABLE>
<CAPTION>

                   Tech Electro Industries, Inc. Consolidated
                   Condensed Consolidated Statement of Income
                                   (Unaudited)
               For the 9 Months Ended September 30, 1997 and 1996

<S>                                                                             <C>         <C>     

                                                     Qtr           Qtr           YTD           YTD
                                                     1997          1996          1997          1996
                                                  ----------    ----------    ----------    ----------
Sales                                              2,184,170     1,106,225     4,753,654     2,950,617
Cost of goods sold                                 1,587,858       774,390     3,474,045     2,091,294
                                                  ----------    ----------    ----------    ----------
Gross profit                                         596,312       331,835     1,279,609       859,323

General and administrative
expenses                                             705,230       346,530     1,827,790       897,129
                                                  ----------    ----------    ----------    ----------
Income (loss) from
operations                                          (108,918)      (14,695)     (548,181)      (37,806)

Other income (expense):
   Interest income                                    18,044        21,450        69,702        62,372
   Interest expense                                   (7,197)      (13,645)      (24,680)      (40,326)
                                                  ----------    ----------    ----------    ----------
                                                                                            
Total other income
(expense)                                             10,847         7,805        45,022        22,046

Minority share of
subsidiary loss                                       13,316             0        29,541             0
                                                  ----------    ----------    ----------    ----------
Income before provision
for taxes                                            (84,755)       (6,890)     (473,618)      (15,760)

Income tax expense (benefit):
   Current                                                 0             0         7,455             0
   Deferred                                                0        (7,437)            0        (9,416)
                                                  ----------    ----------    ----------    ----------
Total income tax
expense (benefit)                                          0        (7,437)        7,455        (9,416)
                                                  ----------    ----------    ----------    ----------
NET INCOME (LOSS)                                    (84,755)          547      (481,073)       (6,344)
                                                  ==========    ==========    ==========    ==========

Income (Loss) attributable
to Common Stockholders                              (117,605)      (55,387)     (579,623)     (117,024)

EARNINGS (LOSS) PER SHARE                               (.09)         (.04)         (.44)         (.09)

</TABLE>


            See Notes to Condensed Consolidated Financial Statements

 
                                       -5-

<PAGE>



                   Tech Electro Industries, Inc. Consolidated
                 Condensed Consolidated Statement of Cash Flows
                                   (unaudited)
            For the 9 Month Period Ending September 30, 1997 and 1996

                                                     1997          1996
                                                -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                            $  (481,073)  $   (29,426)
   Adjustments to reconcile net income
         (loss) to cash provided (used)
         by operations
         Depreciation adjustment                     22,462        21,300
         Provision for obsolete inventory            56,117        12,600
         Minority interest share of subsidiary      (29,541)          -0-
         Deferred taxes                                 -0-        (9,416)
   Changes in operating assets and liabilities
      (Increase) decrease in:
         Marketable securities                          -0-       (45,000)
                 Accounts receivable - trade       (424,967)      (67,583
         Other receivables                         (611,518)       (4,206)
         Advance to employee                            -0-       (84,000)
         Inventory                                 (415,363)     (296,107)
         Prepaid expenses                          (201,070)      (14,024)
         Interest earned on certificates
            of deposit                                  -0-        (7,821)
     Increase (decrease) in:
         Accounts payable                            21,379      (224,634)
         Accrued liabilities                         82,294        40,642
                                                -----------   -----------
NET CASH PROVIDED (USED) BY OPERATING
         ACTIVITIES                              (1,981,280)     (707,675)
                                                -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Additions to property and equipment             (112,670)      (58,822)
   Additions to certificates of deposit            (491,669)          -0-
   Advances on note receivable                       27,086       (33,061
   Repayments on note receivable                        -0-         5,000
   Marketable securities                            943,677      (885,150)
                                                -----------   -----------
NET CASH USED BY INVESTING ACTIVITIES               366,424      (972,033)
                                                -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from short-term debt                        -0-       191,301
   Payments of short-term debt                      (72,772)     (193,227)
   Proceeds from long-term debt                    (247,939)          -0-
   Proceeds from sale of preferred,
   common, warrants                               1,870,707     2,103,891
   Dividends paid                                   (59,945)      (76,650)
                                                -----------   -----------
 NET CASH PROVIDED (USED) BY
FINANCING ACTIVITIES                              1,490,051     2,025,315
                                                -----------   -----------
 NET INCREASE (DECREASE) IN CASH                   (124,805)      345,607
 CASH AT BEGINNING OF PERIOD                        261,973       141,433
                                                -----------   -----------
 CASH AT END OF PERIOD                          $   137,168   $   487,040
                                                ===========   ===========

            See Notes to Condensed Consolidated Financial Statements

 
                                       -6-

<PAGE>



                 Tech Electro Industries, Inc. and Subsidiaries
              Notes to Condensed 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.
Operating  results for the nine month  period ended  September  30, 1997 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 1997.

Note B - Organization

Tech Electro  Industries,  Inc.  (TEI) was formed on January 10, 1992 as a Texas
organization.  On January 31, 1992, TEI acquired 100% of the outstanding  common
stock of Computer Components  Corporation (CCC). In February,  1996, TEI filed a
Form  SB-2  Registration  Statement  and  completed  a public  offering  the net
proceeds of which amounted to $2,043,891 including warrants.

On June 1, 1996,  pursuant to a Stock Exchange  Agreement,  TEI acquired 100% of
the outstanding shares of Vary Brite Technologies,  Inc. (VBT) by issuing 50,000
shares of its common stock. The business combination was accounted for using the
pooling method.  The historical  consolidated  statements of operations prior to
the date of the combination  have not been adjusted to include the operations of
VBT as these  operations  are immaterial to the  consolidated  operations of the
Company.  Accordingly,  the accompanying  consolidated  statements of operations
include,  the  operations  of VBT from  June 1, 1996  forward.  The  assets  and
liabilities  acquired were also immaterial to the consolidated balance sheets of
the Company.

On October 29, 1996, TEI incorporated  Universal Battery  Corporation (UBC) as a
67% owned subsidiary.

Effective  February 10, 1997,  pursuant to  Regulations  as  promulgated  by the
Securities  and Exchange  Commission,  TEI sold  1,100,000  shares of its common
stock and options to acquire 1,000,000 shares of common stock for $1,870,000,  a
combined  price of $1.70 net to the Company.  The options have an exercise price
of $2.15 per share and expire thirteen months from the date of issuance.


 
                                       -7-

<PAGE>



Note C - Dividends

Dividends are accrued  monthly on 300,000 shares of Class A Preferred  Stock and
65,000 shares of Class B Preferred  Stock at $.030625 per share.  Dividends paid
during the quarters  ended  September  30, 1997 and 1996 were 24,454 and $32,850
respectively, and dividends payable at September 30, 1997 were $52,196.

Note D - Notes Receivable
<TABLE>
<S>                                                                                     <C>     

Notes Receivable consisted of the following at September 30, 1997:

                  Note  receivable from a minority  shareholder,  $30,000 due at
                  maturity in August 1999 and $65,616 due in February, 2000. The
                  notes are being liquidated by monthly payments of $3,500 which
                  are applied  against  interest due at six percent per annum on
                  both said notes and the balance applied in reduction of the
                  principal of the note due in February, 2000.                           86,452


                  Note  receivable,  each in the sum of $7,500 from two minority
                  shareholders bearing interest at six percent per annum and are
                  due on December 1, 1999.  Interest  for the period from May 1,
                  1997  through  October  31, 1997 in the sum of $225 is due and
                  payable on each said  notes in  November  1, 1997.  Commencing
                  December 1, 1997 and  continuing  on the 1st day of each month
                  thereafter the principal of each note shall be due and payable
                  in 48 equal  monthly  installments  in the  amount of  $156.25
                  each.  In  addition to the  payment of monthly  principal  the
                  maker  of each  note  shall  pay  interest  at the rate of six
                  percent  per annum  monthly  on the unpaid  principal  balance
                  simultaneously with
                  the payment of the principal.                                          15,000

                  Note  receivable  to  minority  shareholder  in the  amount of
                  $310,000  with interest at ten and one half percent to be paid
                  quarterly  beginning  October  1, 1997 and  thereafter  on the
                  first day of  January,  April  and July  until  principal  and
                  interest  is paid in full at maturity  on  September  5, 1998.
                  Secured by 65,000 shares of Class B Preferred Stock of TIE and
                  40,000 shares of common stock of
                  Electric and Gas Technology, Inc.                                      320,000
                                                                                         -------
                  Total notes receivable                                                 421,452

                  Less current maturities                                                357,688
                                                                                         -------
                  Long-term portion                                                       63,764
</TABLE>

Note E - Bank Debt

Bank debt as of September 30, 1997 consists of the following:

                  $750,000  line of credit with Texas  Central  Bank  payable on
                  demand with interest at prime plus one half percent,  maturing
                  June 30, 1998, and secured by `accounts receivable,  inventory
                  and machinery and equipment.

 
                                       -8-

<PAGE>


<TABLE>
<S>                                                                                      <C>     

                           Currently outstanding                                         $275,000

                  $139,991 term note to Bank One, Texas with $6,666
                  principal plus interest at base rate
                  plus 1% due monthly, fully paid in July, 1996                               -0-
                                                                                              ---

                                                                                          275,000
                  Less current maturities                                                 275,000
                                                                                          -------
                  Long term portion                                                          -0-
</TABLE>

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

     The following  discussion and analysis  should be read in conjunction  with
the Company'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 the
Company'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. The
Company's  actual results could differ  materially  from those  discussed  here.
Factors that could cause or  contribute  to such  differences  include,  without
limitation, those factors discussed herein and in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 1996.

     Currently,  the Company's operations are conducted through its wholly-owned
subsidiaries,  Computer Components Corporation ("CCC"), Very Brite Technologies,
Inc. ("VBT") and Universal Battery Corporation ("UBC").

Three-months Ended September 30, 1997 Compared to Three-months Ended September
30, 1996

         Results of Operations

     The  Company's  results  for  operations  for the  third  quarter  of 1997,
compared  to the third  quarter  of 1996,  were  significantly  impacted  by the
operations of VBT and UBC, which were acquired and formed,  respectively,  after
the second quarter of 1996, and for which there are no comparable results in the
first quarter of 1996.

     Revenues. For the three month period ending September 30, 1997, the Company
had sales of  $2,184,170,  an increase of  approximately  106.48%  from sales of
$1,106,235 for the three month period ending September 30, 1996.

     The Company  recognized  a loss from  operations  of $108,918 for the three
month period ending September 30, 1997, compared to a loss of $14,965 during the
same  period in the prior  year.  The  Company's  loss was  primarily  due to an
increase in general and

 
                                       -9-

<PAGE>



administrative  expenses to $705,230 in the third  quarter of 1997 from $346,530
in the third quarter of 1996, an increase of 103.54%.

     Cost of Goods Sold. The Company's cost of goods sold,  consisting primarily
of inventory,  rose to $1,587,858 during the third quarter of 1997,  compared to
$774,390 during the third quarter of 1996, an increase of 105.05%, and increased
as a percentage  of sales from 70.00% in the three months  ending  September 30,
1996 to 72.69% in the three months ending September 30, 1997.

     General   and   Administrative   Expenses.   The   Company's   general  and
administrative  expenses,  consisting  primarily of wages,  benefits and related
expenses,  rose to  $705,230  in the third  three  months of 1997,  compared  to
$346,530  in the third  three  months of 1996,  an  increase  of an  increase of
103.54%.

     Interest  Expense.  The Company  incurred $7,197 in interest expense in the
third three months of 1997, compared to $13,645 during the third three months of
1996, a decrease of 47.25%.  The  reduction  in interest  expense was due to the
repayment by the Company of substantially all outstanding  indebtedness in March
1997.

Nine Months Ended September 30, 1997 Compared to Nine Months Ended September 30,
1996

         Results of Operations

     Revenues.  For the nine month period ending September 30, 1997, the Company
had sales of $4,753,654,  an increase of 61.11% from sales of $2,950,617 for the
period ending September 30, 1996.

     The Company  recognized  a loss from  operations  of $548,181  for the nine
month period ending September 30, 1997, compared to a loss of $37,806 during the
same  period of the prior  year.  The  Company's  loss was  primarily  due to an
increase in general and administrative  expenses to $1,827,790 in the first nine
months of 1997 from $897,129 in the same period in 1996, an increase of 103.74%.
The increase in general and administrative expenses, in turn, resulted primarily
from an increase in wages at CCC, the support of expanded  operations at UBC and
VBT, and increased legal and professional expenses. A substantial portion of the
increase in wages paid at CCC, in turn,  was due to signing  bonuses paid to the
President of CCC and to a key employee of CCC.

     During the first nine months of 1997,  the Company  recognized net interest
income of  $45,022,  an  increase  of 104.22%  from  interest  income of $22,046
recorded in the first nine months of 1996.  The increase in net interest  income
reflects a reduction of outstanding borrowings,  while funds held pending use in
operations were invested.

     Cost of Goods Sold. The Company's cost of goods sold,  consisting primarily
of inventory,  rose to $3,474,045 during the first nine months of 1997, compared
to $2,091,294
 
                                      -10-

<PAGE>



during  the first six  months of 1996,  an  increase  of  66.12%,  and rose as a
percentage  of  sales to  73.08%  of sales in the  first  nine  months  of 1997,
compared to 70.87% of sales in the first nine months of 1996.

     General   and   Administrative   Expenses.   The   Company's   general  and
administrative  expenses,  consisting  primarily of wages,  benefits and related
expenses,  rose to  $1,827,790  in the first nine  months of 1997,  compared  to
$897,129 in the first nine months of 1996, an increase of 103.74%. This increase
is attributed to start-up costs associated with the organization of VBT and UBC,
as well as  increased  wages and bonuses paid in the first three months of 1997.
While management believes many of these costs are non-recurring, there can be no
assurance that the Company will not incur similar costs in future periods.

     Interest  Expense.  The Company incurred $24,680 in interest expense in the
first nine months of 1997,  compared to $40,326  during the first nine months of
1996,  a  decrease  of  38.81%.  The  Company  repaid  substantially  all of its
outstanding indebtedness in March 1997.

Liquidity

     In February, 1997 the Company completed an offshore placement of its common
stock  and  warrants   for  which  it  obtained   aggregate   consideration   of
approximately  $1,870,000.  At September 30, 1997, the Company had approximately
$952,696 in cash and cash equivalents, marketable securities and certificates of
deposits.  The Company  expects to use the bulk of these funds to fund expansion
of existing  operations  by CCC, UBC and VBT,  primarily to purchase  additional
inventory and expand those entities' product lines.

     On May 15, 1997,  the Company  announced that it had approved the placement
of an additional  1,000,000 shares of its common stock and options to acquire an
additional 1,000,000 shares of common stock. Subsequently, the Company announced
that it had,  subject to final  documentation,  placed  1,000,000  shares of its
common  stock at a sales  price of $1.60 per  share,  together  with  options to
acquire an additional 1,000,000.  As of the date of this report, the Company has
not yet placed these  shares,  and may reprice or otherwise  revise the terms of
the placement to meet existing  conditions.  The proceeds of a placement,  after
payment of  offering  expenses,  are  expected to be used for  acquisitions  and
diversifications.  There can be no  assurance,  however,  that such funds can be
placed, or if placed, that an acceptable acquisition candidate can be identified
or acquired.

     Management of the Company  believe that its existing  funds,  together with
funds to be raised by the  Company  in the  aforementioned  placement  and other
liquid  assets  available to the Company,  are adequate to provide funds for the
foreseeable future.



 
                                      -11-

<PAGE>



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.

     On July 18, 1997, the  shareholders of the  Corporation  took the following
action at its regular annual meeting of shareholders:

     1. The  Shareholders  voted to elect the following  individuals to serve as
directors of the Corporation:

                  Name                                        Votes in Favor

                  William Kim Wah Tan                           2,661,081

                  Sadasuke Gomi                                  1,967,831

                  Kim Yeow Tan                                   1,967,831

                  Ian Edmonds                                    1,445,691

                  Steven Scott                                   1,446,691


     2. The Shareholders approved the Corporation's 1997 Stock Option Plan.

                  Votes in Favor:                                1,932,380

                  Votes Against                                      3,702

                  Abstaining:                                        5,751      




 
                                      -12-

<PAGE>



     3. The Shareholders  ratified the selection of Deloitte & Touche LLP as the
Corporation's independent auditors for the year ending December 31, 1997.

                  Votes in Favor:                                2,324,946      

                  Votes Against                                         71

                  Abstaining:                                        5,426

Item 5.  Other Information.

                           None.

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

                           (a)      Exhibits.

                                            None.

                           (b)      Reports on Form 8-K.

                                            None.


 
                                      -13-

<PAGE>


                                   Signatures

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


Tech Electro Industries, Inc.


Date: November 19, 1997          /s/ WILLIAM KIM WAH TAN
                                 -----------------------
                                 William Kim Wah Tan
                                 Chairman of the Board, President and Chief
                                 Executive Officer



Date: November 19, 1997          /s/ SADASUKE GOMI
                                 -----------------
                                 Sadasuke Gomi
                                 Acting Chief Financial Officer and Principal
                                 Accounting Officer


                                      -14-