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  March  31,  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  March  31,  1999,  4,928,209  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.

<TABLE>
<CAPTION>
                           INDEX


Item                                                     Page
<S>                                                      <C>
Part I - Financial Statements

Item 1 - Financial Statements (unaudited)

     Consolidated Balance Sheets at March 31, 1999 and
     December 31, 1998. . . . . . . . . . . . . . . . .     3

     Consolidated Statements of Operations for
     the Periods Ended March 31, 1999 and 1998. . . . .     5

     Consolidated Statements of Cash Flows for the
     Periods Ended March 31, 1999 and 1998. . . . . . .     6

     Notes to Consolidated Financial Statements . . . .     7

Item 2 - Management's Discussions and Analysis
           of and Plan of Operations. . . . . . . . . .    12

Part II - Other Information

     Item 1 - Legal Proceedings . . . . . . . . . . . .    17

     Item 2 - Changes in Securities . . . . . . . . . .    17

     Item 3 - Defaults Upon Senior Securities . . . . .    17

     Item 4 - Submission of Matters to a
              Vote of Securities Holders. . . . . . . .    17

     Item 5 - Other Information . . . . . . . . . . . .    17

     Item 6 - Exhibits and Reports on Form 8-K. . . . .    17

Signatures. . . . . . . . . . . . . . . . . . . . . . .    18
</TABLE>

                                        2
<PAGE>
PART  I  -  FINANCIAL  INFORMATION

Item  1.  Financial  Statements

<TABLE>
<CAPTION>
                 Tech Electro Industries, Inc., and Subsidiaries
                           Consolidated Balance Sheets

                                     ASSETS
                                     ------



                                                  (Unaudited)
                                                 Mar 31, 1999     Dec 31, 1998
                                               -----------------  -------------
<S>                                            <C>                <C>
CURRENT ASSETS
Cash and cash equivalents . . . . . . . . . .  $         454,092  $   1,399,060
Accounts and notes receivable
Trade, net of allowance for doubtful accounts
of $28,600 and $305,077 respectively. . . . .            990,632      2,879,528
Notes . . . . . . . . . . . . . . . . . . . .            263,289        305,659
Related party . . . . . . . . . . . . . . . .            222,344              -
Other . . . . . . . . . . . . . . . . . . . .             16,837         13,489
Inventories, net. . . . . . . . . . . . . . .          1,385,588      3,356,539
Prepaid expenses and other. . . . . . . . . .            122,914        331,893
                                               -----------------  -------------
TOTAL CURRENT ASSETS. . . . . . . . . . . . .          3,455,696      8,286,168
                                               -----------------  -------------

NET PROPERTY AND EQUIPMENT. . . . . . . . . .            315,273        897,824
                                               -----------------  -------------

OTHER ASSETS
Notes receivable. . . . . . . . . . . . . . .              9,844          7,031
Contract rights, net. . . . . . . . . . . . .                  -      4,608,349
Deferred financing costs. . . . . . . . . . .                  -        199,193
Other . . . . . . . . . . . . . . . . . . . .              6,827        182,029
                                               -----------------  -------------
TOTAL OTHER ASSETS. . . . . . . . . . . . . .             16,671      4,996,602
                                               -----------------  -------------
TOTAL ASSETS. . . . . . . . . . . . . . . . .  $       3,787,640  $  14,180,594
                                               =================  =============
</TABLE>


                 See Notes to Consolidated Financial Statements

                                        3
<PAGE>
<TABLE>
<CAPTION>
                     Tech Electro Industries, Inc., and Subsidiaries
                                Consolidated Balance Sheets

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


                                                           (Unaudited)
                                                          Mar 31, 1999      Dec 31, 1998
                                                        -----------------  --------------
<S>                                                     <C>                <C>
CURRENT LIABILITIES:
Current portion of credit facility obligations . . . .  $        300,000   $   8,198,654 
Current portion of long-term debt. . . . . . . . . . .                 -         215,300 
Accounts payable-trade . . . . . . . . . . . . . . . .           467,627       3,349,682 
Accrued liabilities. . . . . . . . . . . . . . . . . .           100,797       1,354,335 
Deferred service liability . . . . . . . . . . . . . .                 -       1,646,949 
Other liabilities. . . . . . . . . . . . . . . . . . .                 -         333,975 
                                                        -----------------  --------------
TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . .           868,424      15,098,895 

LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . .                 -          53,204 
                                                        -----------------  --------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . .           868,424      15,152,099 

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

STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par value;. . . . . . . . . . .           121,588         177,488 
  1,000,000 shares authorized, 121,588 and 177,488
  Class A issued and outstanding in 1999 and 1998,
  respectively; liquidation preference of $638,337 and
  931,812 in 1999 and 1998 respectively
Common stock, $.01 par value;. . . . . . . . . . . . .            49,282          47,992 
  10,000,000 shares authorized, 4,928,209 and 4,799,177
  shares issued and outstanding during 1999 and 1998;
  respectively
Additional paid-in capital . . . . . . . . . . . . . .        10,888,495       3,165,843 
Receivable from shareholder. . . . . . . . . . . . . .                 -         (25,000)
Accumulated Deficit. . . . . . . . . . . . . . . . . .        (8,140,149)     (6,392,461)
                                                        -----------------  --------------
 Total stockholders' equity. . . . . . . . . . . . . .         2,919,216      (3,026,138)
                                                        -----------------  --------------
 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY. . . . . . .  $      3,787,640   $  14,180,594 
                                                        =================  ==============
</TABLE>


                 See Notes to Consolidated Financial Statements

                                        4
<PAGE>
<TABLE>
<CAPTION>
                          Tech Electro Industries, Inc., and Subsidiaries
                                Consolidated Statements of Operations
                        For the Three Months Ended March 31, 1999 and 1998
                                             (Unaudited)
                                                         Three Months Ended
                                                         ------------------
                                                      1999                 1998
                                                ------------------  ------------------
<S>                                             <C>                 <C>
REVENUES
Sales                                           $       2,442,950   $       1,996,589 
Service revenue                                         2,775,147                   -
                                                ------------------  ------------------
                                                        5,218,097           1,996,589 
COST OF REVENUES
Cost of goods sold                                      2,448,011           1,340,421 
Direct servicing expense                                1,586,638                   -
                                                ------------------  ------------------
                                                        4,034,649           1,340,421 
                                                ------------------  ------------------
Gross profit                                            1,183,448             656,168 

OPERATING EXPENSES
Selling, general and administrative expenses            2,606,852             756,086 
Provision for slow moving inventory                       185,430              15,116 
                                                ------------------  ------------------
                                                        2,792,282             771,202 
                                                ------------------  ------------------
Loss from operations                                   (1,608,834)           (115,034)

Other income (expense):
Interest income                                            13,696              25,424 
Interest expense                                         (132,397)             (6,639)
Loss on sale of fixed assets                               (2,170)                  -
                                                ------------------  ------------------
Total other income (expense)                             (120,871)             18,785 

Minority share of subsidiary loss                               -              16,463 
                                                ------------------  ------------------
Loss before provision for taxes                        (1,729,705)            (79,786)

Income tax expense                                              -                   -
                                                ------------------  ------------------
NET LOSS                                         $      (1,729,705)  $        (79,786)
                                                ==================  ==================
Loss attributable to
common stockholders                              $      (1,747,688)  $       (110,980)
                                                ==================  ==================
Basic and diluted net loss per share
attributable to common shareholders              $           (0.37)  $          (0.03)
                                                ==================  ==================
Number of weighted average shares of
common stock outstanding (basic and diluted)             4,808,415          3,638,292 
                                                ==================  ==================
</TABLE>
                 See Notes to Consolidated Financial Statements
                                        5
<PAGE>
<TABLE>
<CAPTION>
                          Tech Electro Industries, Inc. and Subsidiaries
                              Consolidated Statements of Cash Flows
                         For The Three Months Ended March 31, 1999 and 1998
                                           (unaudited)
                                                                   Mar 31, 1999      Mar 31,1998
                                                                 -----------------  -------------
<S>                                                              <C>                <C>
CASH FLOW FROM OPERATING ACTIVITIES
     Net loss                                                    $     (1,729,705)  $    (79,786)
     Adjustments to reconcile net loss to
       cash provided (used) by operations:
          Compensation expense                                             18,496              -
          Depreciation and amortization adjustment                        218,353         14,076 
          Provision for slow moving inventory                             185,430         15,116 
          Bad debt reserve                                                160,600              -
          Loss on sale of fixed assets                                      2,170              -
          Amortization of deferred financing costs                         18,494              -
          Minority interest share of subsidiary                                 -        (16,463)
     Changes in operating assets and liabilities, net of effects of
       assets and liabilities resulting from the de-consolidation of USCG:
          Accounts receivable-trade                                       326,400         31,891 
          Other receivables                                                (3,348)        (9,727)
          Inventory                                                       296,264         90,815 
          Prepaid expenses and other                                      (21,535)       (63,088)
          Other assets                                                     15,694              -
          Accounts payable                                                 43,824         30,686 
          Accrued liabilities                                             980,757       (511,213)
          Deferred service liability                                     (199,163)             -
                                                                 -----------------  -------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                          312,731       (497,693)

CASH FLOWS FROM INVESTING ACTIVITIES
          Additions to property and equipment                             (17,501)       (10,280)
          Sale of property and equipment                                   21,512              -
          Payments on note receivable                                      39,557          9,442 
          Purchase of marketable securities                                     -        (57,361)
          Advance to related party                                       (222,344)             -
          Business acquisition, net of cash acquired                            -       (415,127)
          Cash in de-consolidated subsidiary                             (316,262)             -
                                                                 -----------------  -------------
NET CASH USED BY INVESTING ACTIVITIES                                    (495,038)      (473,326)

CASH FLOWS FROM FINANCING ACTIVITIES
          Credit facility obligations                                    (750,827)             -
          Repayment of short-term debt                                    (36,834)      (250,000)
          Proceeds from sale of preferred stock,
          common stock and warrants                                             -        474,030 
          Dividends paid                                                        -          5,462 
          Shareholder receivable                                           25,000              -
                                                                 -----------------  -------------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES                         (762,661)       229,492 
                                                                 -----------------  -------------
NET DECREASE IN CASH AND CASH EQUIVALENTS                                (944,968)      (741,527)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD                             1,399,060      1,918,754 
                                                                 -----------------  -------------
CASH AND EQUIVALENTS AT END OF PERIOD                            $        454,092   $  1,177,227 
                                                                 =================  =============
</TABLE>
                 See Notes to Consolidated Financial Statements
                                        6
<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  three  month  period  ended March 31, 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.

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 sheet of
the  Company.

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

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.

                                        7
<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 going forward.

NOTE  C  -  DE-CONSOLIDATION  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:

<TABLE>
<CAPTION>
                                       (unaudited)       (unaudited)
                                      March 31, 1999    March 31, 1998
                                     ----------------  ----------------
<S>                                  <C>               <C>
Current assets                       $     3,401,359   $     4,409,761 
Property, plant and equipment (net)          521,470           673,608 
Other assets (net)                           712,010         1,018,456 
                                     ----------------  ----------------

     Total assets                          4,634,839         6,101,825 

Current liabilities                        7,282,002         4,673,242 
Long-term debt                             7,058,592         7,271,747 
Deferred credits                             (14,588)           49,593 
                                     ----------------  ----------------
     Total liabilities                    14,326,006        11,994,582 

Stockholders' equity                      (9,691,167)       (5,892,757)
                                             
                                              Three Months Ended
                                              ------------------
                                       (unaudited)       (unaudited)
                                      March 31, 1999    March 31, 1998
                                     ----------------   ---------------

Revenue                              $     4,705,165     $   5,791,630 
Gross profit                                 916,856           674,365 

Net loss                                  (1,409,361)         (802,793)
</TABLE>


                                       8
<PAGE>
The  following  unaudited  pro  forma  consolidated  results for the three month
periods  ended  March  31,  1999  and  1998 assumes the de-consolidation of USCG
occurred  as  of  January  1,  1998:
<TABLE>
<CAPTION>
                                       Period  Ended
                            ----------------------------------
                             March 31, 1999    March 31, 1998
                            ----------------  ----------------
<S>                         <C>               <C>
Revenues (unaudited)        $     2,030,436   $     1,996,589 
Net loss (unaudited)               (236,293)          (79,786)
Loss per share (unaudited)
(Basic and diluted)         $          (.06)  $          (.03)
</TABLE>

NOTE  D  -  DIVIDENDS

Dividends were declared on March 8, 1999 for  Class A Preferred Stock at $0.0975
per  share.  This  dividend  was paid in the form of common stock at the rate of
 .056  shares of common for each share of preferred.  The dividend was payable on
March  31,  1999  to stockholders of record at the close of business of February
28,  1999.  In addition, dividends paid during the quarters ended March 31, 1999
and  1998  were  $17,983 and $28,432 respectively.  No dividends were payable at
March  31,  1999.

NOTE  E  -  INVENTORIES

Inventories  consist  of  the  following  at  March  31,  1999:

Computer parts, electronic components and
   packing materials                       $2,231,059
Less valuation reserves                       845,471
                                           ----------
                                           $1,385,588
                                           ==========

NOTE  F  -  PROPERTY  AND  EQUIPMENT

Property  and  equipment  consists  of  the  following  at  March  31,  1999:

Machinery and equipment                       $468,126
Leasehold improvements                          40,560
Furniture and fixtures                         192,187
Automobiles                                     14,262
                                              --------
                                               715,135
Less accumulated depreciation & amortization   399,862
                                              --------
                                              $315,273
                                              ========

                                       9
<PAGE>
NOTE  G  -  CREDIT  LINE

The  Company's  $1,000,000  line of credit is payable on demand with interest at
prime  plus  one  half  percent,  maturing June 30, 1999 and secured by accounts
receivable,  inventory,  machinery  and  equipment and a $250,000 certificate of
deposit.  At  March  31,  1999 and 1998 the outstanding balance was $300,000 and
$175,000  respectively.

The Company has been  informed by its lender that it is in  violation of certain
covenants  in the line of credit  agreement  relating to the use of funds.  As a
result,  the  Company  is not  able to be  advanced  funds  above  the  $300,000
currently  outstanding.  The Company is currently seeking alternative sources of
capital.

NOTE  H  -  LOSS  PER  SHARE

The Company adopted SFAS NO. 128, "Earnings Per Share", in 1997, which, requires
the  disclosure  of  basic  and  diluted net income (loss) per share.  Basic net
income  (loss)  per  share  is  computed  by  dividing  net income (loss) by the
weighted  average  number  of common shares outstanding for the period.  Diluted
net  loss  per  share  is computed by dividing net income (loss) by the weighted
average number of common shares and common stock equivalents outstanding for the
period.  The  Company's common 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
ended  March  31,  1999  and  1998 has been increased for dividends on preferred
stock  totaling  $17,983  and  $28,432  respectively.  There  were  no  accrued
dividends  as  of  March  31,  1999.

NOTE  I  -  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 March 31, 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 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 an  additional  1,000,000  options to purchase  common stock at $1.75 per
share.  These options are not subject to the reorganization agreement.

NOTE  J  -  RELATED  PARTIES

On January 12, 1999, Tech Electro Industires,  Inc. agreed to loan USCG $222,344
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 each through
March 12, 2004.  The loan was  unanimously  approved by the  Company's  board of
directors.

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, which may have an adverse effect on the Company.

                                       10
<PAGE>

NOTE L - SUBSEQUENT EVENT

          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 believes that it meets or exceeds all
requirements  for  continued  listing on the Nasdaq  Stock  Market.  The Company
timely  filed a Form  12b-25  extension  and  filed  its  Form  10-KSB  with the
Securities  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.











































                                       11
<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.  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.  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 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,  1999.

RECENT  DEVELOPMENTS

The results of operations for the three months ended March 31, 1999 includes two
months of USCG  operations,  while the  comparative  period of 1998  includes no
operations of USCG.

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  will  cease
reporting USCG's financial results in its consolidated financial statements, and
use 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.

RESULTS  OF  OPERATIONS

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

The  financial results of the Company for the three month period ended March 31,
1999  were  significantly  impacted  by  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 minority
interest  in  the  subsidiary  going  forward.  For the three month period ended
March  31,  1999,  USCG  contributed  losses  of  $1,493,412.



                                       12
<PAGE>

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.

REVENUES

For  the  three  month  period  ended  March 31, 1999, the Company had revenues,
comprised  of  sales  and  service  revenues,  of  $5,218,097,  an  increase  of
$3,221,508  (161.35%)  from sales of $1,996,589 for the three month period ended
March  31,  1998.

USCG  contributed  161.27%,  $3,187,661,  in  sales and service revenues for the
first  quarter  of  1999.  Excluding  revenues  from  USCG,  the Company's other
subsidiaries  ,CCC, UBC and VBT recorded sales of $2,030,436 for the three month
period  ended  March 31, 1999,  compared to $1,996,589 for the same period ended
March  31,  1998,  an  increase  of  $33,847  (1.7%).

CCC had revenues of $819,006  for the three months ended March 31, 1999 compared
to  revenues  of  $1,295,316  during  the  same  period  ended March 31, 1998, a
decrease  of $476,310 (36.77%).  The decrease is directly related to the loss of
Sunbeam  who  moved  operations  overseas.

Sales  revenues  at  UBC  increased dramatically due to management's decision to
focus  sales efforts on battery and battery related products.  During the period
ended  March 31, 1999 UBC began selling several new products including the Exide
Corporation's  line  of sealed lead acid batteries.  Revenues increased $468,795
(71.31%)  to  $1,126,200  for the first quarter of 1999, compared to revenues of
$657,405  for  the  same  period  in  1998.

VBT  reported  revenues for the quarter ended March 31, 1999 of $85,230 compared
to  $43,867  for  the  same  period  in  1998,  an  increase of 41,363 (94.29%).

COST  OF  REVENUES

The  cost  of  revenues  rose  to  $4,034,649  in  first  quarter  of 1999, from
$1,340,421  in  the  same  period during 1998, an increase of $2,694,228 (201%).
The  increase  in cost of revenues can be attributed to the consolidation of the
operations  of USCG and its subsidiaries, which contributed costs of revenues of
$2,496,030  for  the  first  quarter  of  1999, with no contribution in the same
period  in  1998.  Excluding  USCG's  costs  of revenues, cost of goods sold was
$1,538,619  in the first quarter of 1999, compared to $1,340,421, or an increase
of  $198,198  (14.79%)  from  the  first  quarter  of  1998.

Increased  sales at UBC  resulted in an increase in cost of revenues  during the
period ended March 31, 1999.  UBC's cost of revenues increased $384,276 (72.97%)
to  $910,906  for the first  quarter of 1999,  compared  to cost of  revenues of
$526,630 for the same period in 1998.

Cost  of revenues for the Company, as a percentage of revenues rose to 77.32% in
the  first  quarter  of  1999  from  67.14%  in the first quarter of 1998.  This
increase  is attributable to the consolidation of USCG through February 25, 1999
and  increased  costs  of  goods  sold  at  CCC.


                                       13
<PAGE>


GROSS  PROFIT

The  Company  recorded  a  gross profit of $1,183,448 for the three months ended
March  31,  1999  compared  to  $656,168  during  the  first quarter of 1998, an
increase  of  $527,280  (80.36%).

Of  the  $1,183,448  in  gross  profit,  CCC  and  subsidiaries  contributed
$491,817  compared  to $656,168 during the similar period in 1998, a decrease of
$164,351  (25.05%).  USCG and subsidiaries contributed $691,631 during the first
quarter  of  1999  with  no  contribution  made  during the same period in 1998.

Gross profit as a percentage of revenues for CCC and its subsidiaries  decreased
to 24.22% for the three months ended March 31, 1999,  compared to 32.86% for the
same  period in 1998.  The  decreasing  gross  profit  margin of CCC is  largely
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 and a provision for slow moving inventory,  increased to
$2,792,282 for the three month period ended March 31, 1999 from $771,202 for the
same period in 1998, (355.59%).  Selling, general and administrative expenses on
a standalone basis dramatically increased to $2,606,852 from $756,086 (344.78%).
This increase was due primarily to costs  associated with operations of USCG and
its subsidiaries, which contributed selling, general and administrative expenses
of $1,944,840 for the first quarter of 1999,  with no  contribution  in the same

period in 1998.  Excluding the selling,  general and administrative  expenses of
USCG, TEI, CCC and  subsidiaries  contributed  $662,012 in selling,  general and
administrative  expenses in the first  quarter of 1999,  compared to  $756,086,a
decrease  of $94,074  (12.44%).  Selling,  general and  administrative  expenses
decreased  at CCC  because of  management  initiating  cost  reduction  programs
through the fourth  quarter of 1998.  As a result CCC and its  subsidiaries  are
showing a profit for the first quarter of 1999, (that is, excluding  expenses at
the Tech Electro Industries, Inc. level.)

INVENTORY

Inventory  allowance  has been increased to provide reserves for obsolescence of
computer  component  parts.  The  Company  continually  reviews  its  inventory
allowance  procedures  and  policies  and  will  make  adjustments as necessary.
During  the  period  ended  March  31, 1999, the Company set aside $185,430 as a
reserve for inventory allowance, compared to $15,116 in the same period in 1998.

PURCHASE  ORDER  BACKLOG

As  of  March  31,  1999,  CCC  and  subsidiaries'  purchase  order  backlog was
approximately $2,636,411, compared to $1,155,000 during the same period in 1998,
an  increase  of  $1,481,411  (128.26%).  Generally,  the purchase order backlog
represents  orders  received  from  customers  but not shipped, typically at the
request of the customer. The Company monitors its purchase order backlog to help
analyze  sales  trends  and  to  gauge  future  sales  potential.


                                       14
<PAGE>

INTEREST  EXPENSE

The  Company incurred $132,397 in interest expense during the three months ended
March  31,  1999, compared to $6,639 during the same period in 1998, an increase
of  $125,758  (1,894.23%).  The  significant  increase  in  interest  expense is
attributable  to  USCG and its subsidiaries, which incurred $122,526 in interest
expense  during  the  first quarter of 1999 with no contribution during the same
period  in  1998.

LIQUIDITY

As  of March 31, 1999 the Company had cash and cash equivalents of $454,092.  By
comparison,  on  December  31,  1998 the Company had $1,399,060 in cash and cash
equivalents.  The  change in the Company's position in cash and cash equivalents
reflects  the  liquidation of certificates of deposits to fund the cash needs of
CCC,  UBC,  VBT  and  the  Company.

The Company provided cash from operations of $312,731 for the three month period
ended March 31, 1999  compared to cash used by  operations  of $497,693  for the
same period in 1998. The cash provided from operations was used for the existing
operations of CCC, UBC, and VBT as well as the operational expenses of TEI.

The Company has been  informed by its lender that it is in  violation of certain
covenants  in the line of credit  agreement  relating to the use of funds.  As a
result,  the  company  is not  able to be  advanced  funds  above  the  $300,000
currently  outstanding.  The Company is currently seeking alternative sources of
capital and is operating from existing working capital.

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 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.

To assist USCG in streamlining its operations,  the Company advanced $222,344 to
USCG during the period  ended March 31,  1999.  The  Company  will only  support
USCG's operations to the extent that it has the financial resources to do so.

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. The management of CCC does not believe that the fluctuation
in currency presents a serious threat to the Company's operations.

                                       15
<PAGE>


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.









































                                       16
<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.

             The Company has been informed by its lender that it is in violation
             of certain  covenants in its line of credit  agreement  relating to
             the use of funds.  As a result,  the Company is not able to advance
             funds  above the  $300,000  currently  outstanding.  The Company is
             currently seeking  alternative  sources of capital and is operating
             from existing working capital.

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.

                                       17
<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:  May 14, 1999                /s/  Donna  L.  Gilbert
                                   -----------------------------
                                        Donna  L.  Gilbert
                                        Chief  Financial  Officer



















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