U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

     For  the  quarterly  period  ended  September 30,  1999

     [ ]  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.)

            477 Madison Avenue, 24th Floor, New York, New York 10022
  -----------------------------------------------------------------------------
                      Address of principal executive office


                                 (212) 583-0900
                       ----------------------------------
                            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  September  30,  1999,   5,474,848   shares  of  Common  Stock  were
outstanding.
















                                       1
<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

     Consolidated Balance Sheets at September 30, 1999 (unaudited)
     and December 31, 1998 . . . . . . . . . . . . . . . . . . .      3

     Consolidated Statements of Operations for
     the Periods Ended September 30, 1999 and 1998 (unaudited) .      5

     Consolidated Statements of Cash Flows for the
     Periods Ended September 30, 1999 and 1998 (unaudited) . . .      6 - 7

     Notes to Consolidated Financial Statements (unaudited). . .      8

Item 2 - Management's Discussion and Analysis
           of Plan of Operation   . . . . . . . . . . . . . . . .    13

Part II - Other Information

     Item 1 - Legal Proceedings . . . . . . . . . . . . . . . . .    18

     Item 2 - Changes in Securities . . . . . . . . . . . . . . .    18

     Item 3 - Defaults Upon Senior Securities . . . . . . . . . .    18

     Item 4 - Submission of Matters to a
              Vote of Securities Holders. . . . . . . . . . . . .    18

     Item 5 - Other Information . . . . . . . . . . . . . . . . .    18

     Item 6 - Exhibits and Reports on Form 8-K. . . . . . . . . .    18

Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . .    19














                                       2
<PAGE>

PART  I  -  FINANCIAL  INFORMATION

Item 1.  Financial Statements

                 Tech Electro Industries, Inc. and Subsidiaries
                           Consolidated Balance Sheets

                                     ASSETS
                                     ------

                                                    (Unaudited)
                                                   Sept 30, 1999   Dec 31, 1998
CURRENT ASSETS                                     -------------   ------------
Cash and cash equivalents . . . . . .  . . . . . .       $350,708    $1,399,060
Restricted cash . . . . . . . . . . .  . . . . . .      1,400,000         --
Accounts and notes receivable . . . .  . . . . . .
 Trade, net of allowance for doubtful accounts
 of $23,505 and $305,077 respectively  . . . . . .      2,471,745     2,879,528
 Notes  . . . . . . . . . . . . . . .  . . . . . .        736,887       305,659
Other . . . . . . . . . . . . . . . .  . . . . . .         51,937        13,489
Inventories, net of reserves  . . . .  . . . . . .      1,098,463     3,356,539
Prepaid expenses and other  . . . . .  . . . . . .        321,792       331,893
                                                        ---------     ---------
TOTAL CURRENT ASSETS  . . . . . . . .  . . . . . .      6,431,532     8,286,168
                                                        ---------     ---------
NET PROPERTY AND EQUIPMENT  . . . . .  . . . . . .        282,929       897,824
                                                        ---------     ---------
OTHER ASSETS
Notes receivable    . . . . . . . . .  . . . . . .          7,969         7,031
Contract rights, net  . . . . . . . .  . . . . . .           --       4,608,349
Deferred financing costs  . . . . . .  . . . . . .           --         199,193
Other   . . . . . . . . . . . . . . .  . . . . . .          2,162       182,029
                                                        ---------   -----------
TOTAL OTHER ASSETS  . . . . . . . . .  . . . . . .         10,131     4,996,602
                                                        ---------   -----------
TOTAL ASSETS  . . . . . . . . . . . .  . . . . . .     $6,724,592   $14,180,594
                                                       ==========   ===========









                 See Notes to Consolidated Financial Statements

                                       3
<PAGE>

                 Tech Electro Industries, Inc. and Subsidiaries
                           Consolidated Balance Sheets

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

                                                     (Unaudited)
                                                  Sept 30, 1999    Dec 31, 1998
CURRENT LIABILITIES                               -------------    ------------
Current portion of credit facility obligations . . .   $642,237      $8,198,654
Current portion of long-term debt  . . . . . . . . .       --           215,300
Accounts payable-trade . . . . . . . . . . . . . . .  1,211,668       3,349,682
Accrued liabilities  . . . . . . . . . . . . . . . .    189,644       1,354,335
Deferred service liability . . . . . . . . . . . . .       --         1,646,949
Deferred share subscriptions . . . . . . . . . . . .  1,430,000           --
Deferred receivables . . . . . . . . . . . . . . . .      3,375           --
Other liabilities  . . . . . . . . . . . . . . . . .     97,000         333,975
                                                     ----------      ----------
TOTAL CURRENT LIABILITIES  . . . . . . . . . . . . .  3,573,924      15,098,895

LONG TERM DEBT   . . . . . . . . . . . . . . . . . .       --            53,204
                                                     ----------      ----------
TOTAL LIABILITIES  . . . . . . . . . . . . . . . . .  3,573,924      15,152,099

MINORITY INTEREST IN SUBSIDIARY  . . . . . . . . . .       --         2,054,633

STOCKHOLDERS' EQUITY
Preferred stock, $1.00 par value;  . . . . .  . . .
  1,000,000 shares authorized, 119,588 and 177,488
  Class A issued and outstanding in 1999 and 1998,
  respectively; liquidation preference of $627,837
  and $931,812 in 1999 and 1998 respectively             119,588        177,488
Common stock, $.01 par value;  . . . . . . . . . . .
  10,000,000 shares authorized, 5,474,848 and 4,799,177
  shares issued and outstanding in 1999 and 1998
  respectively                                            54,748         47,992
Additional paid-in capital . . . . . . . . . . . . .  11,356,316      3,165,843
Receivable from shareholder  . . . . . . . . . . . .        --          (25,000)

Accumulated deficit  . . . . . . . . . . . . . . . .  (8,379,984)    (6,392,461)
                                                      -----------    ----------
TOTAL STOCKHOLDERS' EQUITY . . . . . . . . . . . . .   3,150,668     (3,026,138)
                                                      -----------   -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY . . . . . .  $6,724,592    $14,180,594
                                                      ==========    ===========











                 See Notes to Consolidated Financial Statements

                                       4
<PAGE>

                 Tech Electro Industries, Inc. and Subsidiaries
                      Consolidated Statements of Operations
                For the Periods Ended September 30, 1999 and 1998
                                   (Unaudited)
<TABLE>
<S>                                            <C>           <C>              <C>           <C>
                                             Three Months Ended Sept 30     Nine Months Ended Sept 30
                                             --------------------------     -------------------------
                                                 1999           1998           1999            1998

REVENUES
Sales and service revenue                     $4,278,886    $7,033,198       $12,052,017   $17,012,622
Cost of sales and revenue and
  direct service expense                       3,463,920     5,577,262         9,681,974    13,443,753
                                              ----------    ----------        ----------    ----------
Gross profit                                     814,966     1,455,936         2,370,043     3,568,869

OPERATING EXPENSES
Selling, general &
 administrative expenses                       1,046,105     2,313,120         4,210,899     5,467,518
                                              ----------    ----------         ---------     ---------
Loss from operations                            (231,139)     (857,184)       (1,840,856)   (1,898,649)

Other income (expense)
Interest income                                   15,581        21,403            47,574        69,188
Interest expense                                 (11,940)     (218,116)         (152,652)     (398,311)
Other                                                --       (151,663)           (2,170)     (151,663)
                                             -----------    ----------       -----------   -----------
Total other income (expense)                       3,641      (348,376)         (107,248)     (480,786)

Minority share of subsidiary loss                    --            --              --           29,201
                                             -----------    ----------       -----------   -----------
Loss before taxes                               (227,498)   (1,205,560)       (1,948,104)   (2,350,234)

Income tax expense                                  --           4,015             --            7,320
                                             -----------    ----------       -----------   -----------
NET LOSS                                       $(227,498)  $(1,209,575)      $(1,948,104)  $(2,357,554)
                                              ==========  ============      ============  ============
Loss attributable to
common stockholders                            $(238,351)  $(1,226,345)      $(1,987,523)  $(2,423,117)
                                             ===========   ===========       ===========   ===========
Basic and diluted net
loss per share attributable
to common shareholders                        $    (0.04)  $     (0.28)      $     (0.39)  $     (0.60)
                                             ===========  ============       ===========   ===========
Number of weighted average
shares of common stock out-
standing (basic and diluted)                   5,414,026     4,386,239         5,050,140     4,063,940
                                             ===========  ============       ===========   ===========
</TABLE>






                 See Notes to Consolidated Financial Statements

                                       5
<PAGE>

                 Tech Electro Industries, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
                For the Periods Ended September 30, 1999 and 1998
                                   (Unaudited)
                                                      Nine Months Ended
                                                      -----------------
                                               Sept 30, 1999      Sept 30, 1998
CASH FLOW FROM OPERATING ACTIVITIES            -------------      -------------
  Net loss                                       $(1,948,104)      $(2,357,554)
  Adjustments to reconcile net loss to
   Cash used by operations:
     Shares issued for compensation                  404,454                 -
     Depreciation and amortization                   254,483           317,688
     Provision for slow moving inventory             120,142           348,666
     Bad debt reserve                                161,576                 -
     Loss on sale of fixed assets                      2,170                 -
     Minority interest share of subsidiary                 -          (232,741)
     Amortization of deferred financing costs         18,494                 -
     Deferred lease incentive                              -           (71,742)
  Changes in operating assets and liabilities
  (Increase) decrease in:
     Accounts receivable-trade                    (1,155,689)        1,100,225
     Other receivables                               (38,448)         (112,120)
     Inventories                                     648,677          (538,140)
     Contract rights                                       -           271,803
     Other assets                                     10,176           (48,093)
     Deferred expenses                                     -            24,729
     Deferred sales costs                                  -           (42,087)
     Prepaid expenses and other                     (220,413)         (216,748)
  Increase (decrease) in:
     Accounts payable                                787,864         1,113,823
     Accrued liabilities                           1,072,980          (546,062)
     Deferred service liability                     (199,163)           (8,922)
                                                 -----------       -----------
NET CASH USED BY OPERATING ACTIVITIES                (80,801)         (997,275)

CASH FLOWS FROM INVESTING ACTIVITIES
     Additions to property and equipment             (21,287)         (138,874)
     Sale of property and equipment                   21,512                 -
     Advances on note receivable                      39,557           125,395
     Sale of marketable securities                         -            71,439
     Advance to related parties                     (472,397)                -
     Business acquisition, net of cash acquired            -          (415,127)
     Cash in de-consolidated subsidiary             (316,262)                -
     Increase in restricted cash                  (1,400,000)                -
                                                 -----------       -----------
NET CASH USED BY INVESTING ACTIVITIES             (2,148,877)         (357,167)

CASH FLOWS FROM FINANCING ACTIVITIES
     Credit facility obligations                    (255,590)          814,493
     Repayment of long-term debt                     (36,834)         (898,328)
     Proceeds from sale of preferred stock,
      common stock and warrants                       18,750           993,689
     Dividends paid                                        -           (28,432)
     Shareholder receivable                           25,000                 -
     Deferred share subscription                   1,430,000                 -
                                                 -----------       -----------
                                       6
<PAGE>

                 Tech Electro Industries, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows
                For the Periods Ended September 30, 1999 and 1998
                                   (Unaudited)
                                   (Continued)

                                                      Nine Months Ended
                                                      -----------------
                                               Sept 30, 1999      Sept 30, 1998
                                               -------------      -------------


NET CASH PROVIDED BY FINANCING ACTIVITIES          1,181,326           881,422
                                                 -----------       -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS         (1,048,352)         (473,020)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD        1,399,060         1,918,604
                                                 -----------       -----------
CASH AND EQUIVALENTS AT END OF PERIOD             $  350,708        $1,445,584
                                                 ===========       ===========




































                 See Notes to Consolidated Financial Statements

                                       7
<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.  Operating  results for the nine month period ended September 30, 1999
are not necessarily  indicative of the results that may be expected for the year
ending December 31, 1999.

NOTE B - ORGANIZATION

     Tech  Electro  Industries,  Inc.  ("TEI" or the  "Company")  was  formed on
January 10, 1992 as a Texas corporation.  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.

     Effective February 10, 1997, pursuant to Regulation S 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,
for a combined  price of $1.70 net to the Company.  The options were issued with
an exercise price of $2.15 per share and expire thirteen months from the date of
issuance.  In February 1998 the terms on the options were extended to March 1999
and the exercise  price was increased to $2.50 per share.  In February 1999, the
Company agreed to extend the exercise  period to March 2000 at the same exercise
price of $2.50 per share.

     In March 1998, the Company  completed the  acquisition of 51% of the issued
and outstanding common stock of U.S. Computer Group, Inc. ("USCG"). The purchase
consideration  for the interest was $1,000,000 paid in cash. The acquisition was
accounted for as a purchase, and USCG's results of operations have been included
in the Company's  consolidated  operations from acquisition through February 25,
1999.


                                       8
<PAGE>

     On February 25, 1999, Telstar Entertainment ("Telstar"), the second largest
shareholder  of  U.S.  Computer  Group,  Inc.  ("USCG"),  agreed  to  contribute
additional  capital to USCG through the purchase of additional shares as well as
advances under a loan agreement.  The purchase was consummated on March 12, 1999
making Telstar the largest shareholder of USCG.  Effective February 25, 1999 the
Company ceased reporting USCG's financial results in its consolidated  financial
statements, and began using the equity method to account for its 43.04% minority
interest in the subsidiary.

     The Board of Computer  Components  Corporation  (CCC)  decided to merge its
subsidiary companies,  UBC and VBT into CCC due to the similarity of operations.
The State of Texas approved the merger of the subsidiaries on June 21, 1999.

NOTE C - DECONSOLIDATION OF USCG

     Through  February 25, 1999,  the  consolidated  losses of USCG exceeded the
Company's  investment in USCG by  approximately  $3.34 million,  therefore,  the
Company  suspended the equity method of accounting  for its  investment in USCG,
and no  additional  losses have been charged to  operations.  In  addition,  the
de-consolidation  of USCG resulted in a net credit to additional paid-in capital
of $7,631,563.

     Following  is an  unaudited  summary of  financial  position and results of
operations of USCG:
                                                (unaudited)     (unaudited)
                                               Sept 30, 1999   Sept 30, 1998
                                               -------------   -------------
Current assets                                   $4,012,850      $4,825,032
Property, plant and equipment (net)                 433,407         602,639
Other asset (net)                                   671,381         938,459
                                                 ----------      ----------
         Total assets                            $5,117,638      $6,366,130
                                                 ----------      ----------
Current liabilities                              $7,108,942      $5,753,002
Long-term debt                                    6,873,726       7,230,099
Deferred credits                                     -0-             -0-
                                                -----------      ----------
         Total liabilities                      $13,982,668     $12,983,101
                                                -----------     -----------
Stockholders' deficit                           $(8,865,030)    $(6,616,971)
                                               ============    ============


                      Three Months Ended                   Nine Months Ended
                      ------------------                   -----------------
                        (unaudited)                           (unaudited)

                  Sept 30, 1999   Sept 30, 1998   Sept 30, 1999   Sept 30, 1998
                  -------------   -------------   -------------   -------------
Revenue             $3,331,457     $5,315,946       $12,235,604     $13,009,138
Gross Profit         2,733,218      3,773,849         9,293,438       8,751,736

Net loss                99,347        236,307         1,678,084         685,714

                                       9
<PAGE>

NOTE D - PREFERRED STOCK DIVIDENDS

     Dividends  for the three months ended March 31, June 30, and  September 30,
1999 were declared at $0.0975, $0.09, and $0.09 per share,  respectively.  Total
dividends  which  were  issued in common  stock in lieu of cash and had a market
value of $17,983, $10,583, $10,853 respectively totaling $39,419. Dividends paid
for the nine months  ending  September  30, 1998  totaled  $52,881  were paid in
common stock as well.

NOTE E - INVENTORIES

Inventories consist of the following at September 30, 1999:

Batteries, electronic components and
  Assembly materials                                    $1,825,037
Less valuation reserves                                   (726,574)
                                                        ----------
                                                        $1,098,463
                                                        ==========

NOTE F - PROPERTY AND EQUIPMENT

Property and equipment consists of the following at September 30, 1999:

Machinery and equipment                                 $469,662
Furniture and fixtures                                   192,434
Leasehold improvements                                    42,563
Automobiles                                               14,262
                                                       ---------
                                                         718,921
Less accumulated depreciation                           (435,992)
                                                       ---------
Total                                                   $282,929
                                                       =========

NOTE G - CREDIT LINE

     On August 13, 1999, the Company  signed a Loan and Security  Agreement with
Foothill  Capital  Corporation.  The terms of the agreement allow the Company to
borrow up to a maximum of $500,000  secured by eligible  inventory and up to 85%
of  its  eligible   receivables  with  an  overall  revolving  credit  limit  of
$3,000,000  ($1,419,417 = amount available as of September 30, 1999).   Interest
on the loan balance is at two percent over Wells Fargo Bank prime rate plus  .5%
of the  unused  credit  line  per  annum.  The  loan  is  collateralized  by all
receivables,  inventory,  equipment,  general intangibles,  and  other  personal
property.

     Upon  inception,  the  Company  paid in full its prior line of credit  with
Texas Central Bank and that agreement was  terminated.  As of September 30, 1999
the outstanding loan balance with Foothill was $642,237.

NOTE H - LOSS PER SHARE

     Diluted  net loss per share is  computed  by  dividing  net  income  (loss)
adjusted for preferred dividends by the weighted average number of common shares
and common stock  equivalents  outstanding for the period.  The Company's common

                                       10
<PAGE>
stock  equivalents  are not  included in the diluted loss per share for 1999 and
1998 as they are  antidilutive.  Therefore,  diluted and basic loss per share is
identical.  Net loss per  share  for the  three  months  and nine  months  ended
September 30, 1999 and 1998 has been increased for dividends on preferred  stock
totaling $10,853, $39,419 and $16,770, $52,281 respectively.

NOTE I - STOCKHOLDERS' EQUITY, WARRANTS AND STOCK OPTIONS

     During  February 1997, in connection with common stock issued for cash, the
Company entered into an agreement,  which called for the  reorganization  of its
subsidiaries. At June 30, 1999, 1,945,000 warrants subject to the agreement were
outstanding with an exercise price of $3.30 per warrant.  The warrants expire on
January 26, 2000. In addition,  at March 31, 1999,  1,000,000 options subject to
the agreement were also outstanding. The options have an exercise price of $2.50
per share and will  expire on March 10,  2000.  In  December  1997,  the Company
issued additional 1,000,000 options to purchase common stock at $1.75 per share.
These options are not subject to the  reorganization  agreement.  In July, 1999,
the Company  agreed to extend the Class A Warrants until December 1, 2000 at the
same price of $3.30 per share.

     During July 1999,  the Company issued 23,048 shares of common stock in lieu
of cash to  certain  consultants for their services.  Also, during July 1999 the
Company  issued  365,000  shares  of  common   stock  to  certain  employees  as
compensation,  of which William Tan, President of the Company,  received 270,000
shares.

     In August  1999 the  Company  approved  a stock  option  to its  subsidiary
Computer  Components  Corporation  key and long term employees of 344,250 shares
with an  exercisable  price of $1.00 over a period of three  years to be granted
immediately.

NOTE J - RELATED PARTIES

     On January 12, 1999,  Tech  Electro  Industries,  Inc.  agreed to loan USCG
$222,334 for working  capital  requirements.  The loan bears  interest at 8% per
annum and matures  March 12,  2000,  with annual  options to extend for one year
periods  through March 12, 2004.  The Company's  board of directors  unanimously
approved the loan.

     During July 1999 William Tan,  President of the Company,  purchased 108,000
     shares of common stock valued at $81,000.

     On August 26, 1999, Computer Components Corporation loaned USCG $250,000 on
behalf of TEI for working capital requirements.  The loan bears interest rate of
1% above Foothill  Capital  Corporation and the principal will be paid once USCG
receives proceeds of bridge financing.  The loan also includes payment of 2 1/2%
of pre-IPO USCG stock to be issued as  additional  consideration.  The Company's
board of directors unanimously approved the loan.

NOTE K - CONTINGENCIES

     In March of 1999,  Martin  Frank,  a  former  executive  of CCC,  requested
arbitration  in  Texas  against  CCC and TEI  claiming  damages  for  breach  of
contract. In relation to this matter, the Company is vigorously defending itself
and considers the case without  merit.  At this time the Company  cannot predict
the outcome of this matter.  Should this matter be settled  unfavorably it could
materially  affect  the  financial  condition  and  results of operations of the
Company.
                                       11
<PAGE>

NOTE L - NASDAQ DELISTING

     On April 7, 1999,  the Company was  informed by NASDAQ that its  securities
were  de-listed  effective  April 7, 1999,  for failure to file a timely  annual
report  on Form  10-KSB.  The Company timely  filed a Form 12b-25  extension and
filed  its  Form 10-KSB with the Securities and Exchange Commission on April 15,
1999.  The Company has appealed the decision.   The Company is currently trading
on the OTC Bulletin Board of the NASDAQ Stock Market.

NOTE M - SUBSEQUENT EVENTS

     On October 22, 1999, TEI acquired all of the issued and outstanding  shares
of  capital  stock of  AlphaNet  Hospitality  Systems,  Inc.,  (AHS) a  Delaware
corporation,  and  certain  intellectual  property,  copyrights  and  trademarks
utilized in AHS's business from  PricewaterhouseCoopers,  Inc. as ("Trustee") of
the Estate of AlphaNet  Telecom  Inc, a bankrupt  company  for $3.5  million and
assumed   all   liabilities.   AHS   is  the   leading   provider   of   in-room
facsimile/photocopier/printer   and   unattended  business  center  services  in
premium  hotels.  The Company paid the Trustee $1.4 million in cash,  and a $2.1
million  non-interest  bearing  four-month  promissory  note which is payable on
February  21,  2000 and is  secured  by a pledge of the  shares to the  Trustee.
Additionally,  as part of this  transaction,  due to a change  of  control,  TEI
arranged for a $2,525,000 credit facility for AHS to refinance it indebtedness.

     The Company raised the $1.4 million cash from the private placement sale of
2,036,364  shares of common  stock of the  Company  and  five-year  warrants  to
purchase  a like  number of shares of  common  stock,  exercisable  at $0.75 per
shares.  The purchasers of these Company  shares and warrants  include a company
affiliated with William Tan, President of the Company.

     The purchase method of accounting  was  used  for  this acquisition and the
Company  will  include the operations of AHS in its  Consolidated  Statement  of
operations effective October 22, 1999.























                                      12
<PAGE>

ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  AND  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 and the Company's  annual Form 10KSB for the years
ended  December 31, 1998 and 1997.  Except for the historical  information  con-
tained herein, the discussion in this Form 10-QSB contains certain forward look-
ing statements that involve risks and  uncertainties,  such as statements of the
Company's plans, objectives,  expectations and intentions. The cautionary state-
ments 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  and  information  relating to Year 2000
matters,  described below. The Company's actual results could differ  materially
from those  discussed  herein.  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, 1999.

RECENT  DEVELOPMENTS

     On February 25, 1999, Telstar Entertainment ("Telstar"), the second largest
shareholder of USCG, agreed to contribute additional capital to USCG through the
purchase of additional  shares as well as advances under a loan  agreement.  The
purchase  was   consummated  on  March  12,  1999  making  Telstar  the  largest
shareholder of USCG.  Effective  February 25,1999,  the Company ceased reporting
USCG's financial results in its consolidated financial statements,  and used the
equity method to account for its minority interest in the subsidiary.

     On April 7, 1999,  the Company was  informed by NASDAQ that its  securities
will be de-listed  effective  April 7, 1999, for failure to file a timely annual
report  on Form  10-KSB.  The  Company  believes  that it meets or  exceeds  all
requirements for continued  listing on the NASDAQ Stock Market.  The Company has
appealed  the  decision.  The Company is  currently  trading on the OTC Bulletin
Board,  on The NASDAQ Stock Market.  The Company cannot predict what impact,  if
any,  this  action  will  have  on the  Company  or  trading  in  the  Company's
Securities.

     On July 7, 1999, the Company announced that the Board of Directors voted to
extend  Class A  Warrants  until  December  1,  2000  under  the same  terms and
conditions previously in force.

RESULTS  OF  OPERATIONS

     The  financial  results of the  Company for the three  month  period  ended
September 30, 1999 do not include the results of USCG.  As previously discussed,
effective  February 25, 1999,  the Company  ceased  reporting  USCG's  financial
results in its  consolidated  financial  statements,  and began using the equity
method to account for its minority interest in the subsidiary going forward.

     Through  February 25, 1999,  the  consolidated  losses of USCG exceeded the
Company's  investment in USCG by  approximately  $3.34 million,  therefore,  the
Company  suspended the equity method of accounting  for its  investment in USCG,
and no additional losses have been charged to operations.
                                       13
<PAGE>

     THREE-MONTHS  ENDED  SEPTEMBER  30,  1999  COMPARED TO THREE  MONTHS  ENDED
SEPTEMBER 30, 1998.

REVENUES

     For the three  month  period  ended  September  30,  1999,  the Company had
revenues of  $4,278,886  compared to sales and  service  revenues of  $7,033,198
(which  included  the sales and  service  revenues  of USCG)  during the similar
period ending  September 30, 1998, a decrease of $2,754,312  (39.16%).  However,
excluding the sales and service revenues of USCG for the similar period in 1998,
the Company's  revenues rose to $4,278,886 for the three months ended  September
30, 1999 compared to $1,715,127 for the three months ended September 30, 1998 an
increase of $2,563,759 (149.48%).

     Sales revenues at CCC increased  dramatically due to management's  decision
to focus sales efforts on battery and battery  related  products.  The uplift in
sales and profitability is attributable to several factors including: the recent
restructuring  of CCC's management and  administration,  the addition of the new
"Jump Start" battery  product and increased sales of battery and battery related
products.

COST OF GOODS SOLD

     The cost of goods  sold  during  the third  quarter  of 1999  decreased  by
$2,113,342 (37.89%) to $3,463,920 compared to $5,577,262 during the three months
ended September 30, 1998.  The decrease  in cost of goods sold can be attributed
to the de-consolidation of the operations  of USCG and its  subsidiaries,  which
contributed costs of revenues of $5,577,262 for the three months ended September
30,  1998,  with none  during the  current  period  ended  September  30,  1999.
Excluding  USCG,  CCC's cost of goods sold increased to $3,463,920 for the three
months ended September 30, 1999 compared to $1,388,269 during the similar period
in 1998, an increase of $2,075,651 (149.51%).

     Increased  sales at CCC resulted in an increase in the cost of sales during
the  period  ended  September  30,  1999.  Cost of sales for the  Company,  as a
percentage of revenues rose very modestly to 80.95% in the third quarter of 1999
from 79.3% in the third quarter of 1998.

GROSS  PROFIT

     The Company  recorded a gross profit of $814,966 for the three months ended
September 30, 1999  compared to  $1,455,936  during the third quarter of 1998, a
decrease of $640,970 (44.02%). The large decrease in gross profit directly stems
from USCG which  contributed  $1,129,078  during the three  month  period  ended
September  30, 1998 with no  contribution  during the current three month period
ended September 30, 1999.

     Excluding the gross profit contribution by USCG during the third quarter of
1998, the Company's gross profit increased on stronger  revenues to $814,966 for
the three months ended  September  30, 1999 from $326,858 for the same period in
1998, an increase of $488,108 (149.33%).

     Gross  profit as a percentage  of revenues for CCC  decreased to 19.04% for
the three months ended  September  30, 1999 compared to 20.7% during the similar
period in 1998.  Excluding  USCG's  gross profit  contribution  during the three
months ended  September  30, 1998 (with no  contribution  during the three month

                                       14
<PAGE>

ended September 30 1999), gross profit had a marginally decline.  While revenues
increased  substantially  period over period, the decreasing gross profit margin
of CCC is  attributable  to  management's  decision  to focus  sales  efforts on
battery and battery-related  products,  which produce a lower profit margin than
component sales.

OPERATING  EXPENSES

     The  Company's  operating  expenses,  consisting  of  selling,  general and
administrative   expenses  decreased  dramatically  by  $1,267,015  (54.78%)  to
$1,046,105  for the three month  period ended  September  30, 1999 from the same
period in 1998. This dramatic  decrease is due to the  de-consolidating  of USCG
with no expenses in the third quarter of 1999.

     The selling,  general and  administrative  expenses of CCC  contributed  to
$622,080 in the third  quarter of 1999 and  $642,187 in 1998.  This  decrease in
general and administrative expenses was primarily attributable to a reduction in
wages and related expenses when management  restructured its organization.  As a
result CCC is showing a profit for the third quarter of 1999, that is, excluding
expenses at the Tech Electro Industries, Inc. level.

INTEREST  EXPENSE

     The Company  incurred  $11,940 in interest  expense during the three months
ended September 30, 1999, compared to $218,116 during the same period in 1998, a
decrease  of  $206,176.   The  significant   decrease  in  interest  expense  is
attributable to USCG and its  subsidiaries,  which incurred $210,651 in interest
expense during the third quarter of 1998 with no contribution  during the period
ending September 30 1999 due to the de-consolidation.

     NINE-MONTHS   ENDED  SEPTEMBER  30,  1999  COMPARED  TO  NINE-MONTHS  ENDED
SEPTEMBER 30, 1998

REVENUES

     For the nine month  period  ended  September  30,  1999,  the  Company  had
revenues of $12,052,017  compared to $17,012,622 for the nine month period ended
September 30, 1998, a decrease of $4,960,605  (29.16%).  Revenues  declined as a
result of the de-consolidation of USCG which contributed $11,612,765 in revenues
for the nine months ended September 30, 1998 and contributed  $3,220,489  during
the first quarter of 1999 prior to the  de-consolidation.  Excluding the revenue
contribution  by USCG, the Company  recorded  substantial  increases in revenues
which  climbed by $3,456,814  (39.03%) to  $8,856,671  for the nine months ended
September  30, 1999  compared to  $5,399,857  for the same nine month  period in
1998.  The  increase  in top line  growth  is a direct  result  of  management's
decision to focus sales efforts on battery and battery related products at CCC.

COST OF GOODS SOLD

     The  cost of goods  sold  during  the  nine  months  of 1999  decreased  by
$3,761,779 (27.98%) to $9,681,974 compared to $13,443,753 during the nine months
ended September 30, 1998. The decrease in cost of good sold can be attributed to
the  de-consolidation  of the  operations  of USCG and its  subsidiaries,  which
contributed  costs of revenues of $9,090,949 for the nine months ended September
30, 1998, and contributed  $2,863,891  during the first quarter of 1999 prior to
the  de-consolidation.  Excluding  USCG,  CCC's cost of good sold  increased  to

                                       15
<PAGE>

$7,059,062  for the nine months ended  September 30, 1999 compared to $4,352,804
during the similar period in 1998, an increase of $2,706,258 (62.17%).

     Increased  sales at CCC resulted in an increase in the cost of sales during
the  period  ended  September  30,  1999.  Cost of sales for the  Company,  as a
percentage of revenues  decreased  very modestly to 79.70% in the nine months of
1999 from 80.61% in 1998.

GROSS  PROFIT

     The Company recorded a gross profit of $2,370,043 for the nine months ended
September 30, 1999 compared to $3,568,869 during period ending September 1998, a
decrease of $1,198,826  (33.59%).  The large decrease in gross profit stems from
USCG which  contributed  $2,464,885 during the nine month period ended September
30, 1998, and contributed $572,434 during the first quarter of 1999 prior to the
de-consolidation.

     Excluding  the gross  profit  contribution  by USCG  during  the nine month
ending  September  1998, the Company's  gross profit increase is attributable to
management's  decision to focus sales efforts on batteries  and related  battery
products.  CCC's nine  month 1999 gross  profit  increased  to  $1,797,609  from
$1,103,984 for the same period in 1998, an increase of $693,625 (62.83%).

OPERATING EXPENSES

     The  Company's  operating  expenses,  consisting  of  selling,  general and
administrative   expenses  decreased  dramatically  by  $1,256,619  (22.98%)  to
$4,210,899  for the nine month period ended  September 30, 1999 from  $5,467,518
for  the  same  period  in  1998.   This   dramatic   decrease  is  due  to  the
de-consolidating  of USCG with no  expenses  in the second and third  quarter of
1999.

     The selling,  general and  administrative  expenses of CCC  contributed  to
$1,481,973  in the third  quarter of 1999 and  $1,903,008  in 1998 a decrease of
$421,035  (22.12%).  This  decrease in general and  administrative  expenses was
primarily  attributable  to a  reduction  in wages  and  related  expenses  when
management  re-structured its organization.  As a result CCC is showing a profit
for the nine months ending  September 1999, that is,  excluding  expenses at the
Tech Electro Industries, Inc. level.

INTEREST EXPENSE

     The Company incurred $152,652 in interest expense for the nine months ended
September  30,  1999,  compared  to $398,311  during the same period in 1998,  a
decrease  of  $245,659  (61.68%).  The  decrease  in  interest  is  due  to  the
de-consolidation of USCG which contributed $122,468 in the first quarter of 1999
and $307,063 in the nine months ended September 30, 1998.

LIQUIDITY

     As of  September  30,  1999 the Company  had cash and cash  equivalents  of
$350,708  compared to $1,445,584  during the same nine month period in 1998. The
change in the  Company's  position  in cash and cash  equivalents  reflects  the
de-consolidation of USCG and liquidation of certificates of deposits to fund the
cash needs of CCC and the Company.


                                       16
<PAGE>

     The Company used cash from  operations of $80,801 for the nine month period
ended September 30, 1999 compared to cash used by operations of $997,275 for the
same period in 1998.  The cash used from  operations  was used for the  existing
operations of CCC as well as the operational expenses of TEI.

     On February 25, 1999, Telstar Enterainment ("Telstar"),  the second largest
shareholder of USCG, agreed to contribute additional capital to USCG through the
purchase of additional  shares as well as advances under a loan  agreement.  The
purchase was consummated on March 12, 1999 making Telstar the larges shareholder
of USCG.  Effective  February  25, 1999,  the Company  ceased  reporting  USCG's
financial results in its consolidated financial statements,  and began using the
equity  method to account for its 43.04%  minority  interest  in the  subsidiary
going forward. The effects of de-consolidation reduced cash by $316,262.

INFLATION

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

INTERNATIONAL  CURRENCY FLUCTUATION

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

RISKS  RELATING  TO  YEAR  2000:  CCC

     CCC and its subsidiaries  believe that it has addressed the year 2000 issue
in its  entirety and will not face an  operational  problem.  CCC has  completed
upgrading its hardware and has begun conversion to year 2000 compliant software.
CCC and its subsidiaries  anticipates being fully compliant and functional prior
to the year 2000.

     CCC and its  subsidiaries'  business is dependent on its relationship  with
its vendors and  manufacturers.  There is no assurance that CCC's  suppliers and
manufacturers  will be year 2000 compliant.  This may have a materially  adverse
effect  on CCC  unless  CCC is able  to  arrange  for  alternate  suppliers  and
manufacturers if such an event were to occur.
















                                       17
<PAGE>

PART  II  -  OTHER  INFORMATION

Item  1.     Legal  Proceedings.

             In  March  of  1999,  Martin  Frank,  a  former  executive  of CCC,
             requested arbitration in Texas against CCC and TEI claiming damages
             for breach of contract.  In relation to this matter, the Company is
             vigorously  defending  itself and considers the case without merit.
             At this time the Company cannot predict the outcome of this matter,
             which may have an adverse effect on the Company.

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)    Exhibits.

                    27.1  Financial  Data  Schedule

             (b)    Reports  on  Form  8-K


     On March 26,  1999,  the Company  reported  that its  previously  announced
agreement for the sale of approximately 10% of its interest in US Computer Group
had, at the mutual agreement of TEI and the proposed purchaser, been terminated.
The Company also reported that on February 25, 1999, US Computer Group agreed to
sell to Telstar Holdings, a shareholder of US Computer Group,  additional shares
of its  common  stock.  As a  result,  the  Company  is no longer  the  majority
shareholder of US Computer  Group,  and will no longer report USCG operations in
its consolidated financial statements.

     The Company  also  reported  that on March 15,  1999,  Mr. Ian  Edmonds,  a
director  of the  Company,  was  appointed  Vice  President  of the  Company and
concurrently resigned as a member of the Company's Audit Committee of the board.
Mr. Sadasuke Gomi, a director of the Company, was then appointed to serve on the
Company's Audit committee.








                                       18
<PAGE>


                                    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:  November 15, 1999             /s/ Julie Sansom-Reese
                                   -----------------------------
                                        Julie Sansom-Reese
                                        Chief Financial Officer









































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