SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q


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

          For the quarterly period ended September 30, 2005

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

                           Commission File No. 0-27210


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


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

                  1720 Hayden Drive Carrollton, TX 75006
        ----------------------------------------------------------------
                   (Address of principal executive office)


                                 (469) 892-1200
                          ----------------------------
                           (Issuer's telephone number)

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

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

As of September 30, 2005, 8,542,405 shares of Common Stock were outstanding.













                                       1
<PAGE>
Zunicom, Inc.
                                      INDEX

                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Unaudited Consolidated Balance Sheets at September 30, 2005
and December 31, 2004. . . . . . . . . . . . . . . . . . . . . . . .   3

Unaudited Consolidated Statements of Operations for the three
and nine months ended September 30, 2005 and 2004  . . . . . . . . .   5

Unaudited Consolidated Statements of Cash Flows for the
nine months ended September 30, 2005 and 2004 . . . . . . . . . .. . . 7

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

Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . . .  13

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.  18

Item 4.  Controls and Procedures. . . . . . . . . . . . . . . . . .   18


PART II - Other Information

Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . . .  19

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds  19

Item 3.  Defaults Upon Senior Securities . . . . . . . . . . . . . .  19

Item 4.  Submission of Matters to a Vote of Securities Holders . . .  19

Item 5.  Other Information . . . . . . . . . . . . . . . . . . . . .  20

Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .  20

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21

Certifications . . . . . . . . . . . . . . . . . . . . . . . . . . .  22












                                       2
<PAGE>
PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements

                         ZUNICOM, INC. AND SUBSIDIARIES
                      UNAUDITED CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                                    September 30, December 31,
                                                        2005         2004
                                                    ------------  ------------
CURRENT ASSETS
 Cash and cash equivalents                          $    881,433  $    458,068
 Accounts receivable - trade, net of
  allowance for doubtful accounts of
  $293,447 and $249,447                                9,312,362     7,422,351
 Accounts receivable - other                              25,074       248,768
 Inventories - finished goods, net of
  allowance for obsolescence of
  $274,674  and $263,313                              13,833,777    13,290,974
 Prepaid expenses and other current assets               651,172       480,466
                                                    ------------  ------------
     Total current assets                             24,703,818    21,900,627
                                                    ------------  ------------
PROPERTY AND EQUIPMENT, NET                              684,795       682,748

OTHER ASSETS                                              37,647        37,647
                                                    ------------  ------------
TOTAL ASSETS                                        $ 25,426,260  $ 22,621,022
                                                    ============  ============
























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

                                       3
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                UNAUDITED CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                    September 30, December 31,
                                                        2005         2004
                                                    ------------  ------------
CURRENT LIABILITIES
 Line of credit                                     $  7,937,639  $  8,526,903
 Current portion of notes payable - related party        525,128             -
 Current portion of long-term debt                        20,679        20,977
 Accounts payable                                      5,859,122     5,318,797
 Accrued liabilities                                   3,940,724     2,211,741
 Other current liabilities                                29,211        49,101
                                                    ------------  ------------
    Total current liabilities                         18,312,503    16,127,519
                                                    ------------  ------------

NOTES PAYABLE - RELATED PARTY, less current portion            -       860,128
LONG-TERM DEBT, less current portion                      30,691        46,307
DEFERRED RENT, less current portion                      235,311       221,942

STOCKHOLDERS' EQUITY
 Preferred stock - $1.00 par value,
  1,000,000 shares authorized; 103,888 and
  104,588 Class A Shares issued and out-
  standing; liquidation preference of
  $545,412 as of September 30, 2005                      103,888       104,588
 Common stock - $0.01 par value;
  50,000,000 shares authorized; 8,542,405
  and 8,512,048 shares issued and out-
  standing                                                85,424        85,120
 Additional paid-in capital                           14,550,658    14,521,415
 Accumulated deficit                                  (7,892,215)   (9,345,997)
                                                    ------------  ------------
        Total stockholders' equity                     6,847,755     5,365,126
                                                    ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY          $ 25,426,260  $ 22,621,022
                                                    ============  ============














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

                                       4
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
         For the Three and Nine Months Ended September 30, 2005 and 2004
                                   (Unaudited)
<TABLE>
<S>                                   <C>           <C>           <C>           <C>
                                      For the three months ended  For the nine months ended
                                      --------------------------  -------------------------
                                             September 30,              September 30,
                                             -------------              -------------
                                           2005          2004          2005         2004
                                      ------------  ------------  ------------  ------------
REVENUES
 Sales                                $ 22,111,952  $ 18,196,556  $ 59,960,761  $ 48,440,121
 Service revenue                           455,924       479,782     1,391,429     1,546,179
                                      ------------  ------------  ------------  ------------
                                        22,567,876    18,676,338    61,352,190    49,986,300
COST OF REVENUES
 Cost of goods sold                     19,096,105    15,947,400    52,187,394    42,213,438
 Direct servicing costs                    134,039       118,780       362,345       381,783
                                      ------------  ------------  ------------  ------------
                                        19,230,144    16,066,180    52,549,739    42,595,221
                                      ------------  ------------  ------------  ------------
GROSS PROFIT                             3,337,732     2,610,158     8,802,451     7,391,079

OPERATING EXPENSES
 Selling, general and administrative     2,369,131     2,123,697     6,636,964     6,500,414
 Depreciation and amortization of
    property and equipment                  53,757       128,140       214,339       458,124
 Write off of property and equipment         1,069             -         5,275       507,990
                                      ------------  ------------  ------------  ------------
                                         2,423,957     2,251,837     6,856,578     7,466,528
                                      ------------  ------------  ------------  ------------
INCOME (LOSS) FROM OPERATIONS              913,775       358,321     1,945,873       (75,449)

OTHER EXPENSES
 Interest expense (including
    $27,089, $44,444, $103,318
    and $132,057 to related parties)      (153,578)     (152,059)     (450,049)     (445,224)
 Other, net                                 (3,449)       (3,202)      (13,195)      (16,147)
                                      ------------  ------------  ------------  ------------
                                          (157,027)     (155,261)     (463,244)     (461,371)
                                      ------------  ------------  ------------  ------------
INCOME (LOSS) BEFORE PROVISION
    FOR INCOME TAXES                       756,748       203,060     1,482,629      (536,820)
PROVISION FOR INCOME TAXES                       -        22,229             -        22,229
                                      ------------  ------------  ------------  ------------
NET INCOME (LOSS)                     $    756,748  $    180,831  $  1,482,629  $   (559,049)
                                      ============  ============  ============  ============
Net income (loss) attributable to
   common stockholders                $    747,008  $    170,552  $  1,453,782  $   (590,299)
                                      ============  ============  ============  ============
</TABLE>










            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                       5
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
   For the Three and Nine Months Ended September 30, 2005 and 2004 - Continued
                                   (Unaudited)
<TABLE>
<S>                                   <C>           <C>           <C>           <C>
                                      For the three months ended  For the nine months ended
                                      --------------------------  -------------------------
                                             September 30,              September 30,
                                             -------------              -------------
                                           2005          2004          2005         2004
                                           ----          ----          ----         ----
Net income (loss) per share
   attributable to common stockholders
   Basic                              $       0.09  $       0.02  $       0.17  $      (0.07)
                                      ============  ============  ============  ============
   Diluted                            $       0.07  $       0.02  $       0.15  $      (0.07)
                                      ============  ============  ============  ============
Number of weighted average shares
   of common stock outstanding
   Basic                                 8,538,081     8,466,425     8,527,532     8,451,926
                                      ============  ============  ============  ============
   Diluted                              10,674,298     8,727,024     9,863,787     8,451,926
                                      ============  ============  ============  ============
</TABLE>


































            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                       6
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the Nine Months Ended September 30, 2005 and 2004
                                   (Unaudited)
                                                         2005           2004
CASH FLOWS FROM OPERATING ACTIVITIES                -------------  ------------
Net income (loss)                                   $   1,482,629  $   (559,049)
Adjustments to reconcile net income (loss) to net
 cash provided by (used in)operating activities:
  Depreciation and amortization of property
     and equipment                                        214,339       458,124
  Loss on disposal of property and equipment                    -        19,055
  Provision for bad debts                                 182,259       204,489
  Provision for obsolete inventory                        179,959        98,360
  Write off of property and equipment                       5,275       507,990
  Change in operating assets and liabilities
    Accounts receivable - trade                        (2,072,270)   (1,964,254)
    Accounts receivable - other                           223,694         2,312
    Inventories                                          (722,762)   (1,531,404)
    Prepaid expenses and other current assets            (170,706)     (372,038)
    Other assets                                                -          (669)
    Accounts payable                                      540,317       885,171
    Accrued liabilities                                 1,728,983    (1,305,853)
    Deferred rent                                          11,839             -
                                                    -------------  ------------
Net cash provided by (used in) operating activities     1,603,556    (3,557,766)
                                                    -------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property and equipment                     (240,021)     (169,000)
                                                    -------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net activity on line of credit                         (589,264)    3,765,568
  Proceeds from exercise of stock options                       -        17,970
  Repayment of long-term debt ($335,000
       and $0 to related parties)                        (350,906)      (17,735)
                                                    -------------  ------------
Net cash provided by (used in)financing activities       (940,170)    3,765,803
                                                    -------------  ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS                 423,365        39,037

Cash and cash equivalents at beginning of period          458,068       659,350
                                                    -------------  ------------
Cash and cash equivalents at end of period          $     881,433  $    698,387
                                                    =============  ============
SUPPLEMENTAL CASH FLOW INFORMATION

Interest paid                                       $     450,049  $    445,223
                                                    =============  ============
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
      AND FINANCING ACTIVITIES:

  Preferred stock dividends paid through
      issuance of common  stock                     $      28,847  $     31,250
                                                    =============  ============
  Conversion of preferred stock to common stock     $         700  $          -
                                                    =============  ============
            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                       7
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

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

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
all periods  presented.  The results for the three and nine month  periods ended
September  30, 2005 are not  necessarily  indicative  of the results that may be
expected  for the year ended  December  31,  2005.  The  unaudited  consolidated
financial  statements included in this filing should be read in conjunction with
the  Company's  audited  consolidated  financial  statements  and notes  thereto
included in the Company's annual report on form 10-K for the year ended December
31, 2004.

NOTE B - ORGANIZATION

Zunicom,  Inc., ("Zunicom" or the "Company") was formed on January 10, 1992 as a
Texas corporation.  Zunicom's  subsidiary,  Universal Power Group  ("Universal")
has,  since its  inception in 1968,  evolved from a  distributor  of  electronic
components  into a battery,  battery  powered  products  and  security  products
distributor  and supplier,  a  third-party  fulfillment  provider,  and a retail
distributor.  Zunicom's  other  subsidiary,  AlphaNet  Hospitality  Systems Inc.
("AlphaNet"),  provides  in-room  facsimile and business  center services to the
hotel industry through licensing agreements.

NOTE C - STOCK BASED COMPENSATION

The Company  accounts for  stock-based  employee  compensation  arrangements  in
accordance  with provisions of Accounting  Principles  Board ("APB") Opinion No.
25,  "Accounting  for Stock  Issued to  Employees."  Under APB  Opinion  No. 25,
compensation  expense for stock  options  granted to  employees  is based on the
excess,  if any, on the date of grant,  between the fair values of the Company's
stock over the option exercise price. The Company was not required to record any
compensation  expense  related to the issuance of stock options during the three
and nine month  periods  ended  September  30,  2005 and 2004.  Had the  Company
determined  compensation based on the fair value at the grant date for its stock
options  under SFAS No.  123,  "Accounting  for  Stock-Based  Compensation,"  as
amended by SFAS No. 148, "Accounting for Stock-Based Compensation-Transition and
Disclosure-an  amendment of FASB  Statement  No. 123," net income (loss) and net
income (loss) per share would have decreased/increased as indicated below:









                                       8
<PAGE>
                                  For the three months     For the nine months
                                  --------------------     -------------------
                                   ended September 30,     ended September 30,
                                   ------------------      -------------------
                                     2005       2004         2005         2004
                                     ----       ----         ----         ----
Net income (loss) attributable to
common stockholders as reported   $ 747,008 $  170,552  $1,453,782  $  (590,299)

Add:  Stock-based employee
compensation expense included
in reported net income (loss)             -          -           -            -
Deduct: Stock based employee
compensation expense determined
under fair value based method      (643,207)  (111,031)   (643,207)    (111,031)
                                  --------- ----------  ----------  -----------
Pro-forma net income (loss)
attributable to common
stockholders                      $ 103,801 $   59,521  $  810,575  $  (701,330)
                                  ========= ==========  ==========  ===========
Net income (loss) per share
attributable to common
stockholders as reported

Basic                             $    0.09 $     0.02  $     0.17  $     (0.07)
                                  ========= ==========  ==========  ===========
Diluted                           $    0.07 $     0.02  $     0.15  $     (0.07)
                                  ========= ==========  ==========  ===========
Pro-forma net income
(loss)per share attributable
to common stockholders

Basic                             $    0.01 $     0.01  $     0.10  $     (0.08)
                                  ========= ==========  ==========  ===========
Diluted                           $    0.01 $     0.01  $     0.08  $     (0.08)
                                  ========= ==========  ==========  ===========

Stock-based employee compensation expense is recognized as options vest.

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

NOTE D - RECENT ACCOUNTING PRONOUNCEMENTS

In December 2004, the Financial  Accounting  Standards Board issued SFAS No. 123
(revised 2004), "Share-Based Payment" ("SFAS No. 123R"), which replaces SFAS No.


                                       9
<PAGE>
123 and  supersedes  APB Opinion No. 25. SFAS No 123R  requires all  share-based
payments  to  employees,  including  grants of  employee  stock  options,  to be
recognized in the financial statements based on their fair values. The pro forma
disclosures  previously  permitted  under  SFAS  No.  123 will no  longer  be an
alternative to financial statement  recognition.  For the Company, SFAS No. 123R
is effective January 1, 2006.

The  Company  plans to adopt the new  standard  using the  modified  prospective
method. Under the modified prospective method,  companies are required to record
compensation expense for new and modified awards over the related vesting period
of such awards prospectively and record compensation  expense  prospectively for
the  unvested  portion,  at the  date of  adoption,  of  previously  issued  and
outstanding  awards  over  the  remaining  vesting  period  of such  awards.  No
amendments  to  prior  periods   presented  are  permitted  under  the  modified
prospective method. The future impact of the adoption of SFAS No. 123R cannot be
predicted as this time because it will depend on levels of share-based  payments
granted by the Company in the future.  However, had the Company adopted SFAS No.
123R in prior periods,  the impact of that standard would have  approximated the
impact of SFAS No. 123 as  described in the  disclosure  of pro forma net income
(loss) included in the Stock-Based Compensation footnote.

NOTE E - NET INCOME (LOSS) PER SHARE

Basic net income  (loss) per share is computed by  dividing  net income  (loss),
decreased/increased  by the preferred  stock dividends of $9,740 and $10,279 for
the three month periods ending  September 30, 2005 and 2004,  respectively,  and
$28,847  and $31,250 for the nine  months  ending  September  30, 2005 and 2004,
respectively,  by the weighted  average number of common shares  outstanding for
the period.

Diluted net income per share is computed by dividing net income decreased by the
preferred  stock  dividends by the weighted  average number of common shares and
common  stock  equivalents  outstanding  for the period,  including  the assumed
conversion of the preferred stock, stock options and warrants.

For  periods  with a net loss  attributable  to common  shareholders,  basic and
diluted net loss per common  share are  identical.

For the three month period ending  September 30, 2005,  the aggregate  number of
common  stock  equivalents  that were  excluded  from the diluted net income per
share calculation totaled 19,500 as they are anti-dilutive.  For the three month
period ending September 30, 2005, the dilutive effect of 5,666,581 stock options
and warrants and 207,776  shares  issuable upon  conversion  of the  outstanding
preferred  stock are  included in the diluted net income per share  calculation.
For the nine month period  ending  September 30, 2005,  the aggregate  number of
common  stock  equivalents  that were  excluded  from the diluted net income per
share calculation totaled 309,500 as they are anti-dilutive.  For the nine month
period ending September 30, 2005, the dilutive effect of 5,376,581 stock options
and warrants and 208,134 common shares  issuable upon  conversion of outstanding
preferred  stock are  included in the diluted net income per share  calculation.
For the three month period ended  September 30, 2004,  the  aggregate  number of
common stock  equivalents that were excluded from the diluted net loss per share
calculation totaled 924,817 as they are anti-dilutive. For the nine month period
ended  September  30, 2004,  basic and diluted net loss per share is the same as
the Company incurred a net loss for this period.  The aggregate number of common


                                       10
<PAGE>
stock  equivalents  that  were  excluded  from the  diluted  net loss per  share
calculation for the nine month period ended September 30, 2004 totaled 4,985,757
as they are anti-dilutive.

NOTE F - LINE OF CREDIT

Universal's  current line of credit  agreement  with  Compass Bank  provides for
maximum  borrowings of $12,000,000  with interest payable monthly at LIBOR Index
rate plus 2.5% (6.19% at September  30,  2005) and matures May 5, 2007.  On July
25, 2005,  Universal  entered into an Interest Rate Swap  Agreement with Compass
Bank fixing the interest rate at 6.99% on the first $6,000,000 of borrowings and
LIBOR Index Rate plus 2.5% on the  balance of the  outstanding  borrowing  under
Universal's  line of credit.  The line of credit is due on demand and is secured
by accounts  receivable,  inventories,  and equipment of  Universal.  The line's
availability is based on a borrowing formula,  which allows for borrowings equal
to 85% of Universal's  eligible accounts receivable and a percentage of eligible
inventory.  In addition,  Universal must maintain  certain  financial  covenants
including  ratios on fixed charge  coverage and minimum  tangible net worth,  as
well as,  maximum  debt to tangible  net worth and an interest  coverage  ratio.
Universal's maximum annual capital expenditures  allowable pursuant to the terms
of the line of credit total $100,000.  Through  September 30, 2005,  Universal's
capital  expenditures of $120,972  exceeds the allowable  amount,  and therefore
Universal is in violation of this covenant.   Universal has obtained a waiver as
of September 30, 2005 for this violation.  At September 30, 2005, $7,937,639 was
outstanding  under  the  line  of credit and $4,062,361  remained  available for
borrowings under the line of credit based on the borrowing formula.

NOTE G - NOTES PAYABLE - RELATED PARTY

AlphaNet has two notes payable to related party financing companies. One note in
the original  principal  amount of $1,525,000  is payable to Appel  Investments,
Inc. of which Kim Yeow Tan, William Tan's brother,  is an officer,  director and
shareholder.  As of September  30, 2005,  AlphaNet owes $335,912 in principal on
this note.  The second note in the original  principal  amount of  $1,000,000 is
payable to AHS Funding LLC of which Jenny Jechart, a shareholder of the Company,
is the principal  shareholder.  As of September 30, 2005, AlphaNet owes $189,216
in principal on this note.  These notes,  which have interest rates of 20.5% are
payable monthly,  originally  matured on October 21, 2001 and have been extended
to March 27,  2006.  These  notes are  secured by a first  lien on all  AlphaNet
assets  and a  second  lien on all  AlphaNet  stock  owned  by  Zunicom  and are
guaranteed by Zunicom.

NOTE H - SEGMENTS

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

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






                                       11
<PAGE>
                                     Nine months ended September 30, 2005
                                     ------------------------------------
                                            Facsimile
                                            and
                                Battery and Business
                                Fulfillment Center      Adjustment Consolidated
                                ----------- ----------- ---------- ------------
Revenue                         $59,960,761 $1,391,429  $       -  $61,352,190
Depreciation and amortization        83,281    129,662      1,396      214,339
Segment income (loss)             1,890,782   (100,888)  (307,265)   1,482,629
Segment assets                   24,399,302    419,020    607,938   25,426,260
Capital expenditures by segment     120,972    119,049          -      240,021

                                     Nine months ended September 30, 2004
                                     ------------------------------------
                                            Facsimile
                                            and
                                Battery and Business
                                Fulfillment Center      Adjustment Consolidated
                                ----------- ----------- ---------- ------------
Revenue                         $48,440,121 $1,546,179  $       -  $49,986,300
Depreciation and amortization        90,125    366,603      1,396      458,124
Segment income (loss)               695,038   (834,254)  (419,833)    (559,049)
Segment assets                   22,215,227    605,375    201,941   23,022,543
Capital expenditures by segment     107,379     61,621          -      169,000

The adjustments  represent  corporate  assets and corporate  expenses  including
depreciation and amortization  related to corporate assets to reconcile  segment
balances to consolidated balances.

NOTE I - CONCENTRATIONS

A  significant  portion  of  Universal's  business  is with one major  customer,
Brink's Home Security,  which represented  approximately 64% of Universal's year
to date 2005 revenue and 62% of Zunicom's  consolidated year to date revenue. At
September  30, 2005,  Universal  had  aggregate  accounts  receivable  from this
customer  in the  amount  of  $4,297,740.  Through  the  date  of  this  report,
substantially all of this amount has been collected.

NOTE J - SHAREHOLDERS' EQUITY

During the nine months ended  September 30, 2005,  the Company paid dividends of
$28,847 on the Series A Preferred Stock through the issuance of 28,957 shares of
the Company's common stock and 700 shares of preferred stock were converted into
1,400 shares of the Company's common stock.

NOTE K - CONTINGENCIES

From time to time, the Company may be subject to legal claims  incidental to the
Company's business. The Company may suffer an unfavorable outcome as a result of
one or more claims.  Management  does not expect the final  resolution  of these
claims to have a material  adverse effect on the Company's  financial  position,
individually or in the aggregate. However, depending on the amount and timing of
unfavorable  resolutions  of  claims  against  the  Company,  or  the  costs  of
settlement or  litigation,  the Company's  future  results of operations or cash
flows could be materially adversely affected.

                                       12
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The  following  discussion  and  analysis  should  be read in  conjunction  with
Zunicom's Unaudited  Consolidated Interim Financial Statements and notes thereto
included  elsewhere  in this Form 10-Q.  Except for the  historical  information
contained  herein,  the  discussion in this Form 10-Q contains  certain  forward
looking statements that involve risks and  uncertainties,  such as statements of
Zunicom's  plans,  objectives,   expectations  and  intentions.  The  cautionary
statements  made in this Form 10-Q  should  be read as being  applicable  to all
related forward-looking statements wherever they appear in this Form 10-Q. These
statements  include,  without  limitation,  statements  concerning the potential
operations and results of the Company described below.  Zunicom's actual results
could differ  materially from these discussed here.  Factors that could cause or
contribute  to such  differences  include,  without  limitation,  those  factors
discussed  herein and in Zunicom's Annual Report on Form 10-K for the year ended
December 31, 2004.

RESULTS OF OPERATIONS

The operations of Zunicom are conducted through its two subsidiaries,  Universal
and AlphaNet.

REVENUES

THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO SEPTEMBER 30, 2004

For the three month period ended  September 30, 2005,  Zunicom had  consolidated
revenues of $22,567,876  compared to $18,676,338 for the similar period in 2004,
an increase of $3,891,538 or 21%.

Universal  had  revenues  of  $22,111,952,  for the  three  month  period  ended
September 30, 2005,  compared to revenues of $18,196,556  for the similar period
in 2004, or an increase of 22%.  AlphaNet had revenues of $455,924 for the three
month period ended  September  30, 2005 compared to revenues of $479,782 for the
similar period in 2004, or a decrease of 5%.

The $3,915,396  increase in Universal's  revenues is primarily  attributable  to
increased revenues from sales to Brinks.  Specifically,  sales to Brinks totaled
$13,810,548  for the three month period ended September 30, 2005 and $10,427,294
for the three month  period ended  September  30,  2004.  Universal  anticipates
continued growth in Brinks revenue due to Brinks growing inventory requirements.
In addition,  sales of battery,  battery  related and battery  powered  products
increased $532,142 over the previous year due to new customers, increased volume
on existing accounts and diversification  into new products compared to the same
period  last  year.  Universal  anticipates  continued  sales  increases  in the
battery, battery powered product line and new products.

AlphaNet's  decrease  in  revenues  of $23,858 is  primarily  attributable  to a
decline in customer  usage of its InnFax  product as well as hotels not renewing
InnFax  contracts.  AlphaNet  will  continue to see a decline in revenues on the
Innfax  product  as a result  of the  de-installations  of InnFax  product  from
customer  sites that  occurred in 2004.  The decrease was and is being offset by
increased  revenues from new  installations of The Office product for the  three
month period ending September 30, 2005 compared to the similar period in 2004.


                                       13
<PAGE>
COST OF REVENUES

For the three month period ended September 30, 2005, Zunicom's consolidated cost
of revenues increased to $19,230,144 compared to cost of revenues of $16,066,180
for the similar  period in 2004, an increase of  $3,163,964 or 20%.  Universal's
cost of revenues totaled  $19,096,105 for the three month period ended September
30, 2005,  compared to $15,947,400 in the similar period in 2004, or an increase
of $3,148,705 or 20%. AlphaNet's cost of revenues totaled $134,039 for the three
month period ended  September 30, 2005  compared to $118,780  during the similar
period last year, an increase of $15,259 or 13%.

Cost of revenues as a  percentage  of revenues  for  Universal  decreased to 86%
compared to 88% for the similar  period in 2004.  The gross margin for the three
month period ended  September 30, 2005 from  fulfillment  and  distribution  for
Brinks was  approximately 11% compared to average gross margin of 18% from sales
to other customers.  Universal  continues to monitor customer and vendor pricing
due to raw material  cost  increases  which are expected to continue in the near
future.

AlphaNet's direct servicing costs as a percentage of service revenues  increased
to 29% for the three month period ending  September 30, 2005 compared to 25% for
the same period in 2004. The increase in cost is associated to additional  costs
incurred in installing The Office in the these three months.

OPERATING EXPENSES

For the three month period ended  September  30,  2005,  Zunicom's  consolidated
operating expenses,  consisting of selling,  general and administrative expenses
as well as  depreciation  and  amortization  and the write off of  property  and
equipment  increased  slightly  to  $2,423,957  compared to  $2,251,837  for the
similar period in 2004, an increase of $172,120 or 8%.

The  operating  expenses of  Universal  totaled  $2,020,692  for the three month
period ended  September 30, 2005,  compared to operating  expenses of $1,710,908
for the  similar  period  in 2004,  an  increase  of 18%.  For the same  periods
AlphaNet's  operating expenses were $307,269 compared to $412,452, a decrease of
26% and  Zunicom's  operating  expenses  were $95,996  compared to  $128,477,  a
decrease of 25%.

The increase in Universal's  operating expenses is primarily due to increases in
bonus  expense of $298,000 and wages of $54,370  associated  with the  Company's
improved performance,  insurance of $49,972, contract labor of $28,195 and trade
shows,  travel  and  entertainment  of  $17,699.  Additionally,  Universal  made
donations  of battery  products  and cash of $31,638 for  Hurricane  Katrina and
other  organizations.  These costs were partially  offset by reductions in rent,
utilities  and  property  taxes  of  $57,196  due to the 2004  consolidation  of
facilities,  legal fees of $55,193, catalogs and package design costs of $49,173
and accounting fees of $10,301.

The decrease in AlphaNet's  operating expenses is attributable to the write down
of certain  InnFax and "The Office"  assets of $56,048 that occurred  during the
nine months ended  September 30, 2004.  Write downs during the similar period in
2005 totaled $1,069. In addition, AlphaNet reduced property taxes of $11,400 due
to Innfax  de-installations,  accounting fees of $11,257,  legal fees of $9,453,
employment  costs of $7,500 and  consulting  fees of $6,467 for the three  month
period ending September 30, 2005 compared to the similar period in 2004.

                                       14
<PAGE>
The decrease in Zunicom's  operating expenses of $32,481 is primarily due to the
discontinuation  of investor  relation  services of $30,750,  office supplies of
$10,108  and  printing  costs of $3,700  which were  offset by the  increase  in
franchise taxes of $11,300 for the three month period ending September 30, 2005.

INTEREST EXPENSE

Zunicom's  consolidated interest expense was $153,578 for the three month period
ended September 30, 2005 compared to $152,059 for the similar period in 2004, an
increase of $1,519.

NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO SEPTEMBER 30, 2004

For the nine month period ended  September  30, 2005,  Zunicom had  consolidated
revenues of $61,352,190  compared to $49,986,300 for the similar period in 2004,
an increase of $11,365,890 or 23%.

Universal had revenues of $59,960,761  for the nine month period ended September
30, 2005  compared to revenues of  $48,440,121  for the similar  period in 2004.
AlphaNet had revenues of  $1,391,429  for the nine month period ended  September
30, 2005, compared to revenues of $1,546,179 for the similar period in 2004.

The   $11,520,640  or  24%  increase  in   Universal's   revenues  is  primarily
attributable to revenues from increased sales to Brinks. Specifically,  sales to
Brinks totaled  $38,093,941  for the nine month period ended  September 30, 2005
compared to  $28,735,652  for the nine month  period ended  September  30, 2004.
Universal  anticipates  continued growth in Brinks revenue due to Brinks growing
inventory  requirements.  In  addition,  sales of battery,  battery  related and
battery powered  products  increased by $2,162,351 over the previous year due to
new customers,  increased volume on existing accounts and  diversification  into
new product lines compared to the same period last year.

AlphaNet's  decrease  in revenues  of  $154,250  or 10% is  attributable  to the
continued  decline  in  revenue  on the  Innfax  product  as a result  of Innfax
de-installations  that occurred in 2004, and  non-renewals in InnFax  contracts.
The decrease  is  offset  by increased  revenues from new  installations  of The
Office  product for the nine month period ending  September 30, 2005 compared to
the similar period in 2004.

COST OF REVENUES

For the nine month period ended September 30, 2005, Zunicom's  consolidated cost
of revenues increased to $52,549,739 compared to cost of revenues of $42,595,221
for the similar period in 2004, an increase of $9,954,518 or 23%.

Universal's cost of revenues totaled $52,187,394 for the nine month period ended
September 30, 2005,  compared to $42,213,438  during the similar period in 2004.
AlphaNet's  cost of revenues  totaled  $362,345  for the nine month period ended
September 30, 2005 compared to $381,783 during the similar period in 2004.

Cost of revenues as a percentage of revenues for Universal  remained  consistent
at 87% for the nine month  period  ending  September  30,  2005  compared to the
similar period in 2004. The gross margins from  fulfillment and distribution for
Brinks for the nine month period ended September 30, 2005 were approximately 10%
compared  to  average  gross  margins  of 17% from  sales  to  other  customers.


                                       15
<PAGE>
Universal is  monitoring  customer and vendor  pricing due to raw material  cost
increases which are expected to continue in the near future.

AlphaNet's direct servicing costs as a percentage of service revenues  increased
to 26% for the nine month  period  ending June 30, 2005  compared to 25% for the
same period in 2004.

OPERATING EXPENSES

For the nine month  period ended  September  30,  2005,  Zunicom's  consolidated
operating expenses,  consisting of selling, general and administrative expenses,
depreciation  and  amortization  and the write  off of  property  and  equipment
decreased to $6,856,578 compared to $7,466,528 for the similar period in 2004, a
decrease of $609,950 or 8%.

The operating expenses of Universal totaled $5,537,549 for the nine month period
ended September 30, 2005, compared to $5,229,199 for the similar period in 2004,
or an  increase  of 6%.  For the same  periods,  AlphaNet's  operating  expenses
totaled  $1,010,320  compared  to  $1,848,625  or a decrease  of 45%.  Zunicom's
operating expenses totaled $308,709 compared to $388,704 or a decrease of 21%.

The increase in Universal's  operating expenses is primarily due to increases in
bonus expense of $328,000 and wages of $32,136 based on the  performance  of the
Company, insurance of $107,080, contract labor of $67,776, and bad debt expenses
of $24,949. Additionally,  Universal made donations of battery products and cash
of $38,766 for Hurricane Katrina and other  organizations.  These increases were
offset by  reductions  in legal costs of  $146,754,  catalog and package  design
costs of $88,148 and the  reductions in rent,  utilities  and property  taxes of
$52,790 due to the 2004 consolidation of facilities.

The decrease in AlphaNet's  operating expenses is primarily  attributable to the
$564,154  write down of certain  assets that were  de-installed  during the nine
months ended  September  30,  2004 along with the  decrease in  depreciation  of
$183,083.  Write downs during the similar period in 2005 totaled  $4,313.  There
were additional decreases in other employee costs of $44,000,  property taxes of
$28,000 and legal cost of $23,000 for the nine month period ending September 30,
2005 compared to the similar period in 2004.

The  decrease  in  Zunicom's   operating   expenses  is  primarily  due  to  the
discontinuation  of an investor  relations  service provider which contributed a
$90,750  decrease,  decreased  office  supplies  of $14,000,  consulting  fee of
$10,400 and  franchise  taxes of $6,600.  These  costs were offset by  increased
bonus  expense of $41,000 for the nine month period  ending  September  30, 2005
compared to the same period in 2004.

INTEREST EXPENSE

Zunicom's  consolidated  interest expense was $450,049 for the nine month period
ended September 30, 2005 compared to $445,224 for the similar period in 2004, an
increase of $4,826.

LIQUIDITY

Zunicom,  on a consolidated basis, had cash and cash equivalents of $881,433 and
$698,387 at September 30, 2005 and 2004, respectively.


                                       16
<PAGE>
Net cash  provided by operating  activities  was  $1,603,556  for the nine month
period  ended  September  30,  2005  compared  to  cash  used in  operations  of
$3,557,766  for the  similar  period in 2004.  The cash  provided  by  operating
activities in 2005 is primarily  related to net income of $1,482,629,  increases
in accrued liabilities of $1,728,983 and accounts payable of $540,317, provision
of obsolete  inventory  and bad debts of $179,959  and  $182,259,  respectively,
depreciation  of property  and  equipment  of  $214,339,  write off property and
equipment  of $5,275,  and a decrease in accounts  receivable  other of $223,694
offset  partially by increases in inventories of $722,762,  accounts  receivable
trade of $2,072,270 and prepaid expenses of $170,70.

The cash used in operating activities in 2004 is primarily related to net losses
of $559,049,  a decrease in accrued  liabilities  of $1,305,853 and increases in
accounts receivable - trade of $1,964,254,  inventory of $1,531,404, and prepaid
expenses of  $372,038,  partially  offset by an increase in accounts  payable of
$885,171,  depreciation  and amortization of property and equipment of $458,124,
the provisions  for bad debts of $204,489 and obsolete  inventory of $98,360 and
the write off of property and equipment totaling $507,990.

Net cash used by investing  activities for the nine month period ended September
30, 2005, was $240,021  compared to $169,000 for the similar period in 2004. The
cash  used in 2005  and  2004  was  related  to the  purchase  of  property  and
equipment. Net cash used in financing activities for the nine month period ended
September  30,  2005 was  $940,170  compared to the cash  provided by  financing
activities of $3,765,803  for the similar  period in 2004.  The net cash used in
financing  activities  for 2005 was related to repayments  of Universal  line of
credit totaling  $589,264 and long-term debt of $350,906.  The net cash provided
by financing  activities  for 2004 was primarily  comprised of net borrowings on
the Universal line of credit of $3,765,568.

AlphaNet has two notes payable to related party financing companies. One note in
the original  principal  amount of $1,525,000  is payable to Appel  Investments,
Inc. of which Kim Yeow Tan, William Tan's brother,  is an officer,  director and
shareholder.  As of September  30, 2005,  AlphaNet owes $335,912 in principal on
this note.  The second note in the original  principal  amount of  $1,000,000 is
payable  to AHS  Funding  LLC of which  Jenny  Jechart,  a  shareholder,  is the
principal  shareholder.  As of September  30, 2005,  AlphaNet  owes  $189,216 in
principal  on this note.  These  notes  have  interest  rates of 20.5%,  payable
monthly,  originally matured on October 21, 2001 and have been extended to March
27, 2006.  These notes are secured by a first lien on all AlphaNet  assets and a
second  lien on all  AlphaNet  stock  owned by  Zunicom  and are  guaranteed  by
Zunicom.

As provided for in the Universal line of credit agreement discussed in Note F in
the interim unaudited  consolidated financial statements found elsewhere in this
report,  Universal  may,  under  certain  conditions,  borrow  under the line to
upstream funds to Zunicom,  to pay Alphanet's  indebtedness  assuming  borrowing
availability  and certain fixed charge  coverage ratio tests are met.  Universal
may borrow for this  purpose  up to 50% of its net  income  quarterly  until the
notes are retired. For the nine month period ending September 30, 2005 Universal
borrowed $335,000 which Zunicom used to pay down the AlphaNet loans.

Zunicom  believes that cash provided by its operations and cash available  under
the Universal  line of credit will be sufficient to meet its  operational  needs
over the next year.


                                       17
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange

Our customers are primarily located in the U.S.  However,  many of our suppliers
are located  outside the U.S.  and our  financial  results  could be impacted by
foreign  currency  exchange rates and market  conditions  abroad.  However,  the
aggregate impact of any likely exchange rate fluctuations would be immaterial as
most payments are made in U.S. dollars. We have not used derivative  instruments
to hedge our foreign exchange risks though we may choose to do so in the future.

Our  international  business  is  subject to risks  typical of an  international
business, including, but not limited to: differing economic conditions,  changes
in  political   climate,   differing  tax  structures,   other  regulations  and
restrictions  and foreign  exchange  rate  volatility.  Accordingly,  our future
results  could be  materially  adversely  affected  by changes in these or other
factors.  The effect of foreign exchange rate fluctuations on us during 2005 has
not been material.

Interest Rates

Our exposure to market rate risk for changes in interest rates relates primarily
to  Universal's  line of credit.  The line of credit,  maturing May 2007,  bears
interest at LIBOR plus 2.5%. A change in the LIBOR would have a material  effect
on interest  expense.  The  Company's  existing  long-term  debt owed to related
parties has fixed interest rates;  however,  future borrowings may bear interest
at variable rates and,  accordingly,  the Company's  exposure to market risk for
changes in interest  rates may change in the future.  At September 30, 2005, the
Company's  long term debt owed to related  parties is $525,128.  This debt bears
interest at a fixed rate of 20.5% and is due in full on March 27, 2006.

On July 25, 2005,  Universal  entered into an Interest Rate Swap  Agreement with
Compass  Bank  fixing  the  interest  rate at 6.99% on the first  $6,000,000  of
borrowings and the remaining  outstanding  borrowing balance interest is paid at
the LIBOR Index Rate plus 2.5% under Universal's line of credit.

ITEM 4. CONTROLS AND PROCEDURES

We  have  carried  out  an  evaluation,  under  the  supervision  and  with  the
participation  of  our  principal  executive  officer  and  principal  financial
officer,  of the  effectiveness  of the design and  operation of our  disclosure
controls and  procedures  as of September 30, 2005,  pursuant to Rule  13a-15(b)
under the  Exchange  Act.  Based on this  evaluation,  our  principal  executive
officer and principal  financial officer concluded that our disclosure  controls
and  procedures  are  effective  in  ensuring  that  information  required to be
disclosed is recorded, processed, summarized and reported in a timely manner.

We  have  carried  out  an  evaluation,  under  the  supervision  and  with  the
participation  of  our  principal  executive  officer  and  principal  financial
officer,  of any changes in our internal controls over financial  reporting that
have occurred  during the three month period ended  September 30, 2005,  and our
principal  executive officer and principal financial officer have concluded that
there was no change  during the three months ended  September  30, 2005 that has
materially  affected or is reasonably expected to materially affect our internal
control over financial reporting.


                                       18
<PAGE>
PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

In re Certain Zero-Mercury-Added  Alkaline Batteries, Parts Thereof and Products
Containing   Same,   Investigation   No.   337-TA-493,   in  the  United  States
International  Trade  Commission.  This  is an  action  initiated  by  Energizer
Holdings,  Inc. and Eveready Battery  Company,  Inc.  (collectively  "Eveready")
against the Company and over 20 other  respondents  relating to the manufacture,
importation  and sale of certain  alkaline  batteries  alleged to infringe  U.S.
Patent No. 5,464,709. Eveready is seeking a general exclusion order with respect
to future  importation of these batteries.  The Company has denied  infringement
and  has  been  vigorously   defending  this  action.  The  International  Trade
commission has ruled against Eveready and the matter is currently being appealed
to the United States Court of Appeals for the Federal Circuit.

In September of 2005, A.J.  Gilson, a former sales  representative  of Universal
filed in the  District  Court of Dallas  County,  Texas  against  Universal  and
Zunicom  claiming  damages for breach of contract in the amount of $430,722  and
all  reasonable  and necessary  attorney  fees. In relation to this matter,  the
Company is defending  itself and considers the claim without  merit.  Management
does not expect the final  resolution  of this claim to have a material  adverse
effect on our financial position. However, depending on the amount and timing of
an  unfavorable  resolution  of  claim  against  the  Company,  or the  costs of
settlement or  litigation,  the Company's  future  results of operations or cash
flows could be materially adversely affected.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults upon Senior Securities.

None.

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

The annual meeting of shareholders of Zunicom,  Inc. (the "Company") was held at
The Crowne Plaza,  Addison,  at 10:00a.m.  on August 31, 2005. Items put to vote
were  the  election  of  directors  and  ratification  of KBA  Group  LLP as the
Company's auditors.

a.   Proposal 1.  Election of directors,  William Tan and Ian Edmonds,  to serve
     until the next annual meeting of  shareholders  and until their  successors
     are elected  and  qualify.  The  incumbent  directors,  William Tan and Ian
     Edmonds, were  re-elected  and were  the  only  nominees  for  election  as
     directors.  Mr. Tan received  7,239,040  "for" votes and 26,693 "against or
     withheld"  votes.  Mr. Edmonds  received  7,241,728  "for" votes and 25,005
     "against or withheld" votes.

b.   Proposal  2.  Ratification  of KBA  Group  LLP as the  Company's  auditors.
     Shareholders  ratified  the  selection  of KBA Group  LLP as the  Company's
     auditors. There were 6,866,733 votes "for" ratification and 18,696 votes
     "against or withheld" ratification.



                                       19
<PAGE>
Item 5. Other Information.

None.

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

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

     31.1 Certification related to Quarterly Report Form 10-Q disclosures.

     31.2 Certification related to Quarterly Report Form 10-Q disclosures

     32.1  Certification  pursuant to Rule  13a-14(b) of the Exchange Act and 18
     U.S.C.   Section  1350,   as  enacted   pursuant  to  Section  906  of  the
     Sarbanes-Oxley Act of 2002.

     32.2  Certification  pursuant to Rule  13a-14(b) of the Exchange Act and 18
     U.S.C.   Section  1350,   as  enacted   pursuant  to  Section  906  of  the
     Sarbanes-Oxley Act of 2002.

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

     None.
































                                       20
<PAGE>
                                    Signature
                                    ---------

     In accordance with Section 13 or 15(d) of the Securities  Exchange Act, the
Company has caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.



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


Date:  November 14, 2005           /s/ Julie Sansom-Reese
                                   --------------------------------
                                   Julie Sansom-Reese
                                   Chief Financial Officer
                                   (Principal financial and accounting officer)







































                                       21