SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


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

         For the quarterly period ended September 30, 2002

         [ ]  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.
              ----------------------------------------------------
                 (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.)

                   4300 Wiley Post Road, Addison, Texas 75001
        ----------------------------------------------------------------
                     (Address of principal executive office


                                 (972) 851 5600
                          ----------------------------
                           (Issuer's telephone number)


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

     As  of  September  30,  2002,  8,403,390,   shares  of  Common  Stock  were
outstanding.










                                        1

<PAGE>






                                      INDEX


                                                                      Page

PART I - Financial Information

Item 1.  Financial Statements

   Consolidated Balance Sheets at September 30, 2002 (unaudited)
   and December 31, 2001................................................3

   Consolidated Statements of Operations for the three and nine month
   periods ended September 30, 2002 and 2001 (unaudited)................5

   Consolidated Statements of Cash Flows for the nine month periods
   ended September 30, 2002 and 2001 (unaudited)........................7

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

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

Item 3.  Controls and Procedures.......................................17

PART II - Other Information............................................18

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

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

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

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

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

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

Signature..............................................................19












                                        2

<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                                   (Unaudited)
                                                  September 30,    December 31,
                                                      2002             2001
                                                  -------------   -------------
CURRENT ASSETS
     Cash and cash equivalents....................$   974,713     $  1,355,153
     Certificate of deposit.......................          -          160,563
     Accounts receivable trade, net of allowance
        for doubtful accounts of $111,788
        (unaudited) and $130,218..................  7,606,699        3,426,120
        Other.....................................    184,404           30,088
     Inventories, net of allowance for
        obsolescence of $184,741(unaudited) and
        $175,741..................................  8,645,733        3,433,871
     Prepaid expenses and other current assets....    934,938          905,017
                                                   ----------      -----------

           Total current assets................... 18,346,487        9,310,812
                                                   ----------      -----------
PROPERTY AND EQUIPMENT
     Facsimile and business center equipment......  3,605,943        3,423,261
     Machinery and equipment .....................    688,428          561,152
     Furniture and fixtures.......................    312,105          246,733
     Computer equipment ..........................    215,889          215,208
     Vehicles.....................................     74,762           46,262
     Leasehold improvements.......................    195,351          181,276
                                                   ----------      -----------
                                                    5,092,478        4,673,892
     Less accumulated depreciation and
        amortization.............................. (2,287,840)      (1,806,558)
                                                   ----------      -----------
           Net property and equipment.............  2,804,638        2,867,334
                                                   ----------      -----------

OTHER ASSETS......................................    104,258            4,926
                                                   ----------      -----------

TOTAL ASSETS......................................$21,255,383      $12,183,072
                                                  ===========      ===========

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

                                  - Continued -

                                        3
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                     CONSOLIDATED BALANCE SHEETS - Continued


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                   (Unaudited)
                                                  September 30,    December 31,
                                                      2002             2001
                                                  -------------    ------------
CURRENT LIABILITIES
     Line of credit...............................$  4,777,976     $ 2,107,362
     Current portion of long-term debt............   2,242,455         643,856
     Accounts payable.............................   7,591,985       2,447,573
     Accrued liabilities..........................   1,467,492         440,984
     Other current liabilities....................       9,200          12,244
                                                    ----------      ----------
            Total current liabilities.............  16,089,108       5,652,019
                                                    ----------      ----------

LONG-TERM DEBT, less current portion..............      29,063       2,215,121



COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
     Preferred stock - $1.00 par value; 1,000,000
     shares  authorized;  115,088 Class A issued
     and outstanding; liquidation preference
     of $633,087..................................     115,088         115,088
     Common stock - $0.01 par value; 50,000,000
        shares authorized; 8,403,390 shares issued
        and outstanding ..........................      84,034          84,034
     Additional paid-in capital...................  14,464,503      14,496,437
     Accumulated deficit..........................  (9,526,413)    (10,379,627)
                                                    ----------      ----------
            Total stockholders' equity............   5,137,212       4,315,932
                                                    ----------      ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........ $21,255,383     $12,183,072
                                                   ===========     ===========











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

                                        4

<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                For the Periods Ended September 30, 2002 and 2001
                                   (Unaudited)
<TABLE>
<S>                                        <C>            <C>             <C>           <C>
                                               Three Months Ended             Nine Months Ended
                                                 September 30,                   September 30,
                                            ------------------------       ------------------------
                                               2002           2001            2002          2001
                                            ---------      ---------       ----------    ----------
REVENUES
     Sales.................................$14,521,748    $8,572,789      $29,385,211   $18,590,111
     Service revenue.......................  1,003,892       973,453        3,032,641     3,630,962
                                            ----------     ---------       ----------    ----------
                                            15,525,640     9,546,242       32,417,852    22,221,073
COST OF REVENUES
     Cost of goods sold.................... 12,464,228     7,052,155       24,570,753    15,175,235
     Direct servicing costs................    239,110       181,412          644,527       781,790
                                            ----------     ---------       ----------    ----------
                                            12,703,338     7,233,567       25,215,280    15,957,025
                                            ----------     ---------       ----------    ----------
GROSS PROFIT...............................  2,822,302     2,312,675        7,202,572     6,264,048

OPERATING EXPENSES
     Selling, general and administrative...  1,826,919     1,626,551        5,199,204     4,840,834
     Depreciation and amortization of
         property and equipment............    185,351       206,037          552,278       628,587
                                            ----------     ---------        ---------    ----------
                                             2,012,270     1,832,588        5,751,482     5,469,421
                                            ----------     ---------        ---------    ----------
INCOME FROM OPERATIONS                         810,032       480,087        1,451,090       794,627

OTHER INCOME (EXPENSES)
     Interest income.......................        197         1,964            1,758         7,592
     Interest expense......................   (180,965)     (222,543)        (549,318)     (704,524)
     Amortization of deferred financing
        costs..............................          -       (73,756)               -      (221,269)
     Other, net............................    (21,648)       (4,627)         (50,316)      (13,621)
                                            ----------     ---------        ---------     ---------
                                              (202,416)     (298,962)        (597,876)     (931,822)
                                            ----------     ---------        ---------     ---------
INCOME (LOSS) BEFORE PROVISION FOR INCOME
    TAXES .................................    607,616       181,125          853,214      (137,195)

PROVISION FOR INCOME TAXES.................          -             -                -             -
                                            ----------     ---------        ---------     ---------
</TABLE>









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

                                  -Continued-

                                        5
<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
                For the Periods Ended September 30, 2002 and 2001
                                   (Unaudited)
<TABLE>
<S>                                        <C>            <C>             <C>           <C>
                                               Three Months Ended             Nine Months Ended
                                                 September 30,                   September 30,
                                            ------------------------       ------------------------
                                               2002           2001            2002          2001
                                            ---------      ---------       ----------    ----------
NET INCOME (LOSS).......................... $  607,616   $   181,125      $   853,214   $  (137,195)
                                             =========      ========        =========     =========
Net income (loss) attributable to common
     shareholders.......................... $  597,263   $   168,011      $   821,280   $  (172,618)
                                             =========      ========        =========     =========
Basic and diluted net income (loss)
    per share attributable to common
    shareholders........................... $     0.07   $      0.02      $      0.10   $     (0.02)
                                             =========      ========        =========     =========
Number of weighted-average shares of
     common stock outstanding (basic
     and diluted)..........................  8,403,390     8,297,506        8,403,390     8,250,238
                                             =========     =========        =========     =========
</TABLE>






























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

                                        6

<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                               For The Nine Month
                    Periods Ended September 30, 2002 and 2001
                                   (Unaudited)

                                                             2002        2001
CASH FLOWS FROM OPERATING ACTIVITIES                     ----------- -----------
Net income (loss)                                        $  853,214  $ (137,195)
Adjustments to reconcile net income (loss)to net
   cash provided by (used by) operating activities:
     Common stock returned recorded as other income.....          -     (10,000)
     Depreciation of property and equipment.............    552,278     628,587
     Provision for bad debts............................    143,757     253,616
     Provision for obsolete inventory...................      9,000       9,000
     Amortization of debt discount......................          -      48,933
     Amortization of deferred financing costs...........          -     221,269
     Loss on disposal of equipment......................     23,759           -
     Change in operating assets and liabilities
           Accounts receivable - trade.................. (4,324,336)   (315,289)
           Accounts receivable - other..................   (154,316)      6,457
           Inventories.................................. (5,220,862)     54,541
           Prepaid expenses and other current assets....    (29,921)   (134,431)
           Other assets.................................    (99,332)     13,485
           Accounts payable.............................  5,144,412      34,031
           Accrued liabilities..........................  1,023,464     328,542
                                                         ----------  ----------
Net cash (used by) operating activities................. (2,078,883)  1,001,546
                                                         ----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of property and equipment..................   (480,969)    (69,624)
   (Increase) decrease in certificate of deposit........    160,563      (5,971)
                                                         ----------  ----------
Net cash used by investing activities ..................   (320,406)    (75,595)
                                                         ----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net activity on line of credit.......................  2,670,614    (877,209)
   Repayment of long-term debt..........................   (619,831)   (148,780)
   Payment of preferred stock dividends.................    (31,934)          -
                                                         ----------  ----------
Net cash provided by (used by) financing activities....   2,018,849  (1,025,989)
                                                         ----------  ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS............... $ (380,440) $ (100,038)

Cash and cash equivalents at beginning
   of period............................................  1,355,153     839,060
                                                         ----------  ----------
Cash and cash equivalents at end of period.............. $  974,713  $  739,022
                                                         ==========  ==========


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

                                   -Continued-

                                        7

<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
                               For The Nine Month
                    Periods Ended September 30, 2002 and 2001
                                   (Unaudited)

                                                             2002        2001
                                                         ----------- -----------
SUPPLEMENTAL SCHEDULE OF NONCASH
     INVESTING AND FINANCING ACTIVITIES

     Dividends paid through issuance
        of common stock................................... $      -   $  35,423
                                                           ========   =========
      Acquisition of property and equipment
        through capital lease............................. $ 32,372   $       -
                                                           ========   =========




































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

                                        8

<PAGE>
                         ZUNICOM, INC. AND SUBSIDIARIES
            (FORMERLY TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and in  accordance  with the  instructions  per Item  310(b) of  Regulation  SB.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting principles for complete financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the nine month period ended  September 30, 2002.  The results for the nine month
period ended  September 30, 2002 are not  necessarily  indicative of the results
that may be expected for the year ended December 31, 2002.

NOTE B - ORGANIZATION

Zunicom,  Inc.,  formerly  Tech  Electro  Industries,  Inc.,  ("Zunicom"  or the
"Company")  was formed on January  10,  1992 as a Texas  corporation.  Effective
October 17, 2002,  Tech Electro  Industries,  Inc.  changed its name to Zunicom,
Inc.  Zunicom's  subsidiary,  Computer  Components  Corporation  ("CCC"),  doing
business as Universal Battery Corporation  ("UBC"),  stocks and sells batteries,
battery  related  products,  battery  powered  products  and passive  electronic
components.  Within the  battery  sales  activity,  there is value  added to the
batteries  through the assembly of batteries  into  "packs".  UBC's  battery and
electronic  components  sales are  generated  by in-house  sales staff and sales
representatives to customers throughout the United States. Zunicom's subsidiary,
Alphanet  Hospitality  Systems Inc.  ("AHS"),  provides  in-room  facsimile  and
business center services to the hotel industry through licensing agreements. AHS
generates  revenues  from its  product  line which  includes  InnFax(R)  and The
Office(TM).  InnFax(R)  is a patented  in-room  facsimile  service  which offers
guests a  personal  facsimile  number and  e-mail  address  to send and  receive
correspondence during the duration of their stay, as well as facsimile, printing
and  copying  capabilities.  The  Office(TM),  is a full  service,  credit  card
activated business center for business travelers staying at hotels.

NOTE C - NET INCOME (LOSS) PER SHARE

Basic net income  (loss) per share is computed by  dividing  net income  (loss),
decreased or increased by the preferred  stock  dividends of $31,934 and $35,423
for the nine month periods ending September 30, 2002 and 2001, respectively, and
$10,353 and $13,114 for the three month  periods  ending  September 30, 2002 and
2001, respectively,  by the weighted average number of common shares outstanding
for the period.  Diluted net income (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.  Zunicom's common stock equivalents are
not  included  in the  diluted  loss per share for the nine month  period  ended
September 30, 2001 as they are antidilutive. At September 30, 2002 and 2001, all
outstanding  stock options and warrants have  exercise  prices  greater than the
current fair value of the underlying stock and therefore,  have no affect on the
income per share computation.


                                        9
<PAGE>
NOTE D - LINE OF CREDIT

On March 27,  2002,  UBC  obtained a  $12,000,000  line of credit with a finance
company,  payable on demand,  with interest  payable monthly at prime plus 1.25%
maturing  March  2005.  The line of credit is  secured by  accounts  receivable,
inventories  and  equipment  of UBC.  The  line's  availability  is  based  on a
borrowing  formula,  which allows for borrowings  equal to 85% of UBC's eligible
accounts  receivable  and a percentage of eligible  inventory.  On September 30,
2002, $4,777,976 of the line of credit was outstanding,  while $246,747 remained
available for borrowings under the line of credit.

NOTE E - NOTES PAYABLE

AHS 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., a
company in which Kim Yeow Tan, William Tan's (the Company's  President and Chief
Executive  Officer)  brother,  is an officer,  director and  shareholder.  As of
September 30, 2002,  AHS owes  $1,287,037 in principal on this note.  The second
note in the original  principal  amount of  $1,000,000 is payable to AHS Funding
LLC, a company in which Jenny  Jechart,  a  shareholder  of the Company,  is the
principal shareholder.  As of September 30, 2002, AHS owes $440,400 in principal
on this note.  These  notes,  which  have  interest  rates of 20.5%,  originally
matured on October 21, 2001 and were extended to March 27, 2003.  Both notes are
secured by a first  lien on all AHS  assets  and a second  lien on all AHS stock
owned by Zunicom.

Zunicom  also has a note payable to a related  party  financing  company.  As of
September 30, 2002,  the original and current  outstanding  principal  amount of
$500,000 is payable to Caspic  International,  Inc., a company in which  William
Tan is a  shareholder  and  director.  This  note has an  interest  rate of 12%,
originally  matured on June 10, 2002 and was extended to December 10, 2002.  The
loan is secured by a pledge of the shares of capital stock of AHS.

NOTE F - CONCENTRATIONS

Through  September 30, 2002, a significant  portion,  of UBC's business was with
one major customer,  which represented  approximately 48% and 32%, respectively,
of the Company's revenue for the three and nine months ended September 30, 2002.
At September 30, 2002 UBC had aggregate  accounts  receivable from this customer
in the amount of $2,954,185.  Through  November 13, 2002,  substantially  all of
this amount has been collected.

NOTE G - SEGMENTS

The battery and electronic sales segment represents the operations of UBC, which
includes the stocking and sales of battery,  battery related  products,  battery
powered products and passive  electronic  components.  The hospitality  services
operations of AHS provides private in-room facsimile and office business centers
for business  travelers.  These segments were identified  based on the different
nature of 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:




                                       10

<PAGE>
<TABLE>
<S>                           <C>                 <C>           <C>         <C>
                                         Nine Months Ended September 30, 2002
                              -----------------------------------------------------------
                                                   Battery and
                                Facsimile &        Electronic
                              Business Center        Sales      Adjustment   Consolidated
                              ---------------     ------------  ----------   ------------
Revenue                           $3,032,641      $29,385,211   $        -    $32,417,852
Depreciation and amortization        459,414           87,704        5,160        552,278
Segment profit (loss)               (397,885)         784,270      466,829        853,214
Segment assets                     3,620,077       17,508,721      126,585     21,255,383
Capital expenditures by segment      285,064          224,010        4,267        513,341
</TABLE>
<TABLE>
<S>                           <C>                <C>           <C>          <C>
                                         Nine Months Ended September 30, 2001
                              -----------------------------------------------------------
                                                   Battery and
                                Facsimile &        Electronic
                              Business Center         Sales     Adjustment   Consolidated
                              ---------------     ------------  ----------   ------------
Revenue                           $3,630,962      $18,590,111   $        -    $22,221,073
Depreciation and amortization        553,131           71,640        3,816        628,587
Segment profit (loss)               (882,274)         690,247       54,832      (137,195)
Segment assets                     4,105,926        8,774,991     (215,466)    12,665,451
Capital expenditures by segment       50,046           19,578            -         69,624
</TABLE>

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



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

The  following  discussion  and  analysis  should  be read in  conjunction  with
Zunicom'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  Zunicom's  plans,
objectives,  expectations and intentions. The cautionary statements made in this
Form 10-QSB should be read as being  applicable  to all related  forward-looking
statements  wherever they appear in this Form 10-QSB.  These statements include,
without limitation,  statements  concerning the potential operations and results
of the Company described below. 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-KSB for the year ended December 31, 2001.

BACKGROUND AND RECENT DEVELOPMENTS

On March 7, 2002, UBC signed an agreement with Brink's Home Security,  Inc., the
security division of the Pittston Brinks Group, to procure and assemble security
components for both  residential  and commercial  alarm systems.  This agreement
became  effective May 1, 2002 and will  continue for a two year period.  For the
period ended  September 30, 2002,  this contract  provided  approximately  $10.3
million in revenue.  The Company believes that this  agreement will continue to


                                       11

<PAGE>
provide increased revenues in the future. However, sales to Brinks Home Security
have low margins.

On March 27, 2002, UBC entered into a $12,000,000  revolving line of credit with
General  Electric Capital  Corporation,  payable on demand with interest payable
monthly at prime plus  1.25%,  maturing  March 27,  2005.  The line of credit is
secured by the accounts receivable, inventories and equipment of UBC. The line's
availability is based on a borrowing  formula which allows for borrowings  equal
to 85% of UBC's eligible  accounts  receivable  plus the lesser of $3,000,000 or
85% of the net orderly  liquidation value of UBC's eligible inventory and 55% of
the lower of cost or market of UBC's eligible inventory.  This line of credit is
guaranteed by Zunicom.  On September 30, 2002,  $4,777,976 of the line of credit
was outstanding, while $246,747 remained available for borrowings under the line
of credit.

On March 28, 2002,  the maturity  dates on AHS notes payable to related  parties
totaling $2,205,200 were extended to March 27, 2003. Additionally,  on September
10, 2002 the maturity date of Zunicom's $500,000 note payable to a related party
was extended to December 10, 2002.

On July 1, 2002 Zunicom  relocated its headquarters to Addison,  Texas, a suburb
of Dallas, to further consolidate operations and reduce overhead.

On  October  17,  2002,  the  Company's  name  was  changed  from  Tech  Electro
Industries,  Inc. to Zunicom,  Inc.  Management  believes  that the name Zunicom
better  encompasses  Zunicom's  current  operations  through  UBC and  AHS.  The
Company's business has evolved from electro-magnetic components to predominantly
battery and battery  related  sales to multiple  industries,  and  communication
services to the  hospitality  industry.  Zunicom's  new ticker symbol on the OTC
Bulletin Board is ZNCM.


RESULTS OF OPERATIONS

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


THREE MONTHS ENDED  SEPTEMBER 30, 2002 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 2001.

Revenues

For  the  three  month  period  ended  September  30,  2002,  Zunicom  generated
consolidated  revenues of  $15,525,640  compared to  $9,546,242  for the similar
period ended September 30, 2001, an increase of $5,979,398 (62.6%).

UBC and AHS generated revenues of $14,521,748 and $1,003,892 for the three month
period  ended  September  30,  2002,  respectively,   compared  to  revenues  of
$8,572,789  and  $973,453  for the  similar  period in 2001,  respectively.  The
$5,948,959  in  increased  UBC  revenues  is  largely  attributable  to one  new
customer,  Brinks Home  Security,  while sales of battery,  battery  related and
battery powered products remained  consistent in the primary markets serviced by
UBC.  Specifically,  Brinks Home Security sales totaled $7,471,912 for the three
month period  ended  September  30, 2002.  Direct  shipment  sales  decreased by

                                       12

<PAGE>
$1,474,781 or 39.5% compared to the same three month period ending September 30,
2001. The decrease in direct  shipment sales is mainly  attributable  to a large
customer of UBC's  whose end  customers  had lower  sales which in turn  reduced
direct  shipment orders to UBC. UBC does not believe that this decline in direct
shipment sales will continue but that direct shipment sales will increase in the
next year as UBC increases its product range to this customer.  AHS' increase in
revenues of $30,439 is  attributable  to increased  usage of The Office product,
which accounted for increased revenue of $149,163 compared to the same period in
2001.  However,  AHS continues to see decline in facsimile  usage,  service fees
charged  to hotels  for  renewal of  expired  contracts,  as well as,  declining
installations of InnFax machines in North America,  which represents $118,724 of
the decrease.

Cost Of Revenues

For the three month period ended September 30, 2002, Zunicom's consolidated cost
of revenues increased to $12,703,338  compared to cost of revenues of $7,233,567
for the similar period in 2001, an increase of $5,469,771.

UBC's and AHS's cost of revenues totaled  $12,464,228 and $239,110 for the three
month period ended  September 30, 2002,  compared to $7,052,155 and $181,412 for
the similar period in 2001,  respectively.  Increased revenues at UBC during the
three month period ended  September 30, 2002  compared to the similar  period in
2001  directly  resulted in an increase in the cost of revenues  during the same
three  month  period in 2002  compared to the  similar  period in 2001.  Cost of
revenues as a  percentage  of revenues for UBC  increased  to 85.8%  compared to
82.3% for the similar period in 2001.  This increase is mainly  attributable  to
the low margin on sales to Brinks Home  Security,  a high volume  customer.  Our
gross  margin  in sales to  Brinks  was 9.3% for the three  month  period  ended
September  2002.  Cost of revenues as a percentage  of service  revenues for AHS
increased to 23.8% in the current  period  compared to 18.6% for the three month
period ending  September 30, 2001. The increase in cost of revenues is primarily
a result of fewer new installations while fixed costs have remained constant.

Operating Expenses

For the three month period ended  September  30,  2002,  Zunicom's  consolidated
operating  expenses,  consisting  of  selling,  general and  administrative  and
depreciation  and  amortization  expenses  increased to  $2,012,270  compared to
$1,832,588 for the similar period in 2001, an increase of $179,682.

UBC's, AHS's, and Zunicom's selling, general and administrative expenses totaled
$1,325,144,  $410,639 and $91,136, respectively for the three month period ended
September 30, 2002,  compared to $900,539,  $592,926 and $133,086,  respectively
for the  similar  period in 2001.  The  increase in UBC's  selling,  general and
administrative  expenses in 2002 is  primarily  due to  increases in payroll and
related expenses of $247,539,  rent of $64,868,  bank charges of $28,046,  legal
charges of $6,483,  commissions of $60,546 and travel,  meals and  entertainment
expenses of $37,557  compared to the same period in 2001.  These  increases  are
primarily  related to additional  expenses  associated with the Brinks contract.
The decrease in AHS's selling,  general and  administrative  expenses is largely
attributable to decreased wages and commissions of $145,053 due to the reduction
in sales,  marketing and customer support  employees.  The decrease in Zunicom's
selling,  general and administrative expenses is attributable to decreased wages
of $59,737, offset by moving costs associated with Zunicom's relocation to Texas
of $22,288.

                                       13

<PAGE>
For the three month period ended  September  30,  2002,  Zunicom's  consolidated
depreciation expense was $185,351 compared to $206,037 for the similar period in
2001, a decrease of $20,686 primarily due to AHS's disposal of certain assets in
2002.

Interest Expense

For the three month period ended September 30, 2002,  Zunicom, on a consolidated
basis,  incurred  $180,965 in  interest  expense  compared  to $222,543  for the
similar period in 2001, a decrease of $41,578. This decrease is primarily due to
the  decrease  in  notes  payable  as  AHS  has  made  significant  payments  on
outstanding  loans during the nine months ended September 30, 2002. The decrease
in AHS notes payable at interest rates of 20.5% is partially offset by increased
borrowings  on the UBC line of credit,  which has an interest rate of prime plus
1.25% (6.0% during 2002).

NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2001.

Revenues

For the nine month period ended September 30, 2002,  Zunicom generated  revenues
of  $32,417,852  compared  to  $22,221,073  for the similar  period in 2001,  an
increase of $10,196,779 (45.9%)

UBC and AHS generated  revenues of $29,385,211 and $3,032,641,  respectively for
the nine months ended September 30, 2002 compared to revenues of $18,590,111 and
$3,630,962,  respectively,  for the  similar  period  in 2001.  The  $10,795,100
increase in UBC revenues is largely attributable to the increase in sales to one
new customer,  Brinks Home  Security,  which  accounted for  $10,344,565  of the
increase in revenues,  and an increase in sales of battery  related  products to
the primary markets serviced by UBC. Revenues from direct shipments decreased in
the nine month period ending  September  2002 by $2,613,059 or 41.2% compared to
the same nine month period in the prior year.  The  decrease in direct  shipment
sales is mainly  attributable  to a large  customer of UBC's whose end customers
had lower sales which in turn reduced  direct  shipment  orders to UBC. UBC does
not believe that this decline in direct  shipment  sales will  continue but that
direct  shipment  sales  will  increase  in the next year as UBC  increases  its
product range to this customer.  Additionally, the increase in sales and battery
sales to the medical  industry  contributed  $836,104  to the  increase in UBC's
sales  and  increased   revenues  in  both  industrial  and  consumer  batteries
contributed  $1,776,955 to the increase in UBC's sales. The increases are due to
the addition of new customers during the nine months ended September 30, 2002 as
well as to continued growth in sales to UBC's existing  customers.  The decrease
of $598,321 in AHS  revenues is  attributable  to the decline in InnFax usage by
hotel guests which  decreased to $970,340 as compared to  $1,605,163 in 2001, as
well as the decrease of new  installations and hardware sales offset by a slight
increase in sales of the Office product  during the nine months ended  September
20, 2002 compared to the same nine months in the prior year.

Cost of Revenues

For the nine month period ended  September 30, 2002,  Zunicom's cost of revenues
increased to $25,215,280 compared to $15,957,025 for the similar period in 2001,
an increase of $9,258,255.

                                       14

<PAGE>
UBC's and AHS's cost of revenues  totaled  $24,570,753 and $644,527 for the nine
month period ended September 30, 2002,  compared to $15,175,235 and $781,790 for
the similar period in 2001,  respectively.  Increased revenues at UBC during the
nine month period ended  September  30, 2002  compared to the similar  period in
2001,  directly  resulted in an increase in the cost of revenues during the same
nine month period  compared to the similar period in 2001. Cost of revenues as a
percentage  of revenues  for UBC  increased  to 83.6%  compared to 81.6% for the
similar period in 2001. This slight increase is attributable mainly to the lower
margins  on the high  volume  sales  to  UBC's  largest  customer,  Brinks  Home
Security. Our gross margin on sales to Brinks was 8.9% for the nine month period
ended September  2002. Cost of revenues as a percentage of service  revenues for
AHS have  remained  fairly  consistent  at 21.3%  compared to 21.5% for the nine
month period ending September 30, 2002 and 2001, respectively.

Operating Expenses

For the  nine  month  period  ended  September  30,  2002,  Zunicom's  operating
expenses, consisting of selling, general and administrative and depreciation and
amortization  expenses  increased to $5,751,482  compared to $5,469,421  for the
similar period in 2002, an increase of $282,061.

UBC's, AHS', and Zunicom's selling,  general and administrative expenses totaled
$3,450,487,  $1,439,261  and  $309,456,  respectively  for the nine month period
ending  September 30, 2002,  compared to  $2,265,730,  $2,156,957  and $418,147,
respectively  for the similar  period in 2001.  The  increase in UBC's  selling,
general and  administrative  expenses in 2002 is due to increases in payroll and
related expenses of $547,646, rent of $107,836,  travel, meals and entertainment
of $72,794, bank charges of $82,350, and legal fees of $38,371.  These increases
are  primarily  related  to  additional  expenses  associated  with  the  Brinks
contract. The decrease in AHS' selling,  general and administrative  expenses is
largely  attributable  to decreased  marketing  expenses of $121,719,  decreased
wages and sales  commissions  of  $352,686,  and  legal and  consulting  fees of
$121,933 as compared to the same nine months in 2001 attributed to the reduction
of  sales,  marketing,  and  customer  support  employees  as well as  continued
cost-cutting efforts in other sales and marketing expenses.  Zunicom experienced
decreases in wages of $95,337, and legal and accounting costs of $38,015 for the
nine  months  ended  September  30,  2002,  offset  by moving  costs of  $35,560
associated with Zunicom's relocation to Texas.

For the nine month period ended September 30, 2002, Zunicom incurred $552,278 in
depreciation  and  amortization  expense  compared to  $628,587  for the similar
period in 2001,  a  decrease  of  $76,309  due  primarily  to AHS's  significant
disposal of assets in 2002.

Interest Expense

For the nine month period  September  30,  2002,  Zunicom  incurred  $549,318 in
interest  expense  compared to $704,524  during the  similar  period in 2001,  a
decrease of $155,206.  This decrease is due to the decreased interest rate under
the UBC line of credit as well as principal  payments  made on AHS'  outstanding
notes payable  during the nine months ended  September 30, 2002. The decrease in
AHS notes  payable at interest  rates of 20.5% is partially  offset by increased
borrowings  on the UBC line of credit,  which has an interest rate of prime plus
1.25% (6.0% during 2002).



                                       15
<PAGE>
Liquidity

Zunicom had cash and cash  equivalents on a  consolidated  basis of $974,713 and
$739,022 at September 30, 2002 and 2001, respectively.

Net cash used by  operations  was  $2,078,883  for the nine month  period  ended
September 30, 2002 compared to cash provided by operations of $1,001,546 for the
similar  period  in 2001.  The cash  used by  operating  activities  in 2002 was
primarily  related  to  increases  in  accounts   receivable  and  inventory  of
$4,324,336 and $5,220,862,  respectively,  offset by net income of $853,214,  an
increase  in  accounts  payable and accrued  liabilities  of  $6,167,876.  These
changes were directly  related to our new agreement  with Brinks Home  Security.
The cash provided by operating  activities  during 2001 related to a net loss of
$137,195,  an  increase in accounts  receivable  of $315,289  and an increase in
prepaid  expenses and other current assets of $134,431  offset by an increase in
accounts  payable  and  accrued   liabilities  of  $362,573,   depreciation  and
amortization of $898,798 and the provision for bad debts of $253,616.

Net cash used by investing  activities for the nine month period ended September
30, 2002,  was $320,406  compared to $75,595 for the similar period in 2001. The
increase  resulted from  purchases of property and equipment of $480,969  during
the nine month  period  ended  September  30, 2002 offset by the decrease in the
certificate of deposit of $160,563.

Net cash  provided  by  financing  activities  for the nine month  period  ended
September 30, 2002 was  $2,018,849  compared to cash used of $1,025,989  for the
similar  period in 2001.  The net cash provided by financing  activities for the
nine months ended  September 30, 2002 was comprised of net borrowings on the UBC
line of credit  of  $2,670,614  offset by the  repayment  of  long-term  debt of
$619,831 and payment of preferred stock dividends of $31,934.  The net cash used
by  financing  activities  for the nine  months  ended  September  30,  2001 was
comprised of net  payments of $877,209 on the UBC line of credit and  repayments
of long-term debt of $148,780.

UBC has a $12,000,000  revolving line of credit with a finance company,  payable
on demand with interest payable monthly at prime plus 1.25%,  maturing March 27,
2005. The line of credit is secured by the accounts receivable,  inventories and
equipment of UBC. The line's  availability is based on a borrowing formula which
allows for borrowings  equal to 85% of UBC's eligible  accounts  receivable plus
the lesser of  $3,000,000 or 85% of the net orderly  liquidation  value of UBC's
eligible  inventory  and 55% of the lower of cost or  market  of UBC's  eligible
inventory.  This line of credit is guaranteed by Zunicom. On September 30, 2002,
$4,777,976  of the line of  credit  was  outstanding,  while  $246,747  remained
available for borrowing under the line of credit.

At  September  30,  2002,  AHS had notes  payable to  financing  companies  with
balances of $1,727,437.  One note in the original principal amount of $1,525,000
is payable to Appel Investments,  Inc., a company in which Kim Yeow Tan, William
Tan's  brother,  is an officer,  director and  shareholder.  As of September 30,
2002,  AHS owes  $1,287,037  in  principal  on this note.  The other note in the
original principal amount of $1,000,000 is payable to AHS Funding LLC, a company
in  which  Jenny  Jechart,  a  shareholder,  is the  principal  shareholder  and
director. As of September 30, 2002, AHS owes $440,400 in principal on this note.
These notes,  which have interest rates of 20.5%,  originally matured on October
21, 2001 and were extended to March 27, 2003. These notes are secured by a first
lien on all AHS assets and a second lien on all AHS stock  owned by Zunicom.  As

                                       16
<PAGE>
provided  for in the UBC line of credit  agreement  discussed  in the  preceding
paragraph,  UBC may, under certain conditions,  borrow under the line to advance
funds  to its  parent,  Zunicom,  to pay  this  indebtedness  of  AHS.  Assuming
borrowing  availability  and certain fixed charge  coverage ratio tests are met,
UBC may  borrow for this  purpose  up to 50% of its net income for (i)  calendar
year 2001 and (ii) quarterly thereafter until such AHS indebtedness is paid. The
loan  agreements  between AHS and said financing  companies have been amended to
extend the maturity dates of the notes to March 27, 2003 in consideration of the
repayment provisions discussed above.

Zunicom currently has a note payable to related party financing  companies.  The
note  in the  original  principal  amount  of  $500,000  is  payable  to  Caspic
International,  Inc.,  a  company  in which  William  Tan is a  shareholder  and
director.  As of September 30, 2002,  Zunicom owes $500,000 in principal.  As of
September 30, 2002,  Zunicom owes $152,797  accrued interest on this note. As of
October  8, 2002 a  portion  of the  accrued  interest  has been paid  leaving a
balance due of $52,797.  This note has an  interest  rate of 12% and  originally
matured on June 10,  2002.  The note has been  extended  to December  10,  2002.
Zunicom  believes  that the note will be extended  another 3 months to March 10,
2003.

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

Zunicom  believes that cash provided by its operations and cash available  under
the UBC line of credit will be  sufficient to meets its  operational  needs over
the next year.  However, it will not be sufficient to retire the said Appel, AHS
Funding and Caspic indebtedness.

INTERNATIONAL CURRENCY FLUCTUATION

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

ITEM 3. CONTROLS AND PROCEDURES

Within 90 days prior to the date of this report,  we 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.  Based on this evaluation,
our principal  executive officer and principal  financial officer concluded that
our disclosure  controls and procedures are effective in timely alerting them to
material  information  required to be included in our periodic  SEC reports.  It
should be noted that the design of any system of  controls is based in part upon
certain  assumptions about the likelihood of future events,  and there can be no
assurance  that any design will succeed in achieving  its stated goals under all
potential future conditions, regardless of how remote.

In addition,  there have been no significant changes in our internal controls or
in other factors that could  significantly  affect those controls  subsequent to
the date of their last evaluation.

                                       17
<PAGE>
PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

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

None.

Item 5. Other Information.

None.

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

a.       Exhibits.

     Exhibit 99.1 Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
     Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

     Exhibit 99.2 Certification  Pursuant to 18 U.S.C.  Section 1350, as Adopted
     Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

b.       Reports on Form 8-K.

     None.






















                                       18

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

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, as amended, the registrant caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


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


Date: November 13, 2002                /s/ Julie Sansom-Reese
                                       --------------------------------
                                       Julie Sansom-Reese
                                       Chief Financial Officer









































                                       19
<PAGE>
                                 Certifications
                                 --------------



I, William Tan, certify that:

1.  I have reviewed  this quarterly  report on Form 10-QSB of Zunicom,  Inc. and
Subsidiaries;

2.  Based on my knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

(a)      designed  such  disclosure  controls  and  procedures  to  ensure  that
         material  information   relating  to  the  registrant,   including  its
         consolidated  subsidiaries,  is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

(b)      evaluated the  effectiveness of  the registrant's  disclosure  controls
         and procedures as of a date within 90 days prior to the filing  date of
         this quarterly report (the "Evaluation Date"); and

(c)      presented   in   this   quarterly  report  our  conclusions  about  the
         effectiveness  of the disclosure  controls and procedures based  on our
         evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

(a)      all  significant  deficiencies  in the design or  operation of internal
         controls  which  could  adversely  affect the  registrant's  ability to
         record,   process,   summarize  and  report  financial  data  and  have
         identified  for the  registrant's  auditors any material  weaknesses in
         internal controls; and

(b)      any  fraud,  whether  or not  material,  that  involves  management  or
         other  employees  who  have  a  significant  role  in  the registrant's
         internal controls; and





                                       20
<PAGE>
6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  November 13, 2002


                                         /s/ William Tan
                                         -------------------------------------
                                         William Tan
                                         President and Chief Executive Officer












































                                       21
<PAGE>
I, Julie Sansom-Reese, certify that:

1.  I have reviewed  this quarterly  report on Form 10-QSB of Zunicom,  Inc. and
Subsidiaries;

2.  Based on my knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

(a)      designed  such  disclosure  controls  and  procedures  to  ensure  that
         material  information   relating  to  the  registrant,   including  its
         consolidated  subsidiaries,  is made known to us by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

(b)      evaluated the  effectiveness  of the registrant's  disclosure  controls
         and procedures as of a date within 90 days prior to the  filing date of
         this quarterly report (the "Evaluation Date"); and

(c)      presented   in   this  quarterly  report  our  conclusions   about  the
         effectiveness  of the disclosure  controls and procedures based  on our
         evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

(a)      all  significant  deficiencies  in the design or  operation of internal
         controls  which  could  adversely  affect the  registrant's  ability to
         record,   process,   summarize  and  report  financial  data  and  have
         identified  for the  registrant's  auditors any material  weaknesses in
         internal controls; and

(b)      any  fraud,  whether  or not  material,  that  involves  management  or
         other  employees  who  have  a  significant  role  in  the registrant's
         internal controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  November 13, 2002
                                                     /s/ Julie Sansom-Reese
                                                     -------------------------
                                                     Julie Sansom-Reese
                                                     Chief Financial Officer
                                       22