SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB/A
                               AMENDMENT NUMBER 2


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

     For the quarterly period ended  March 31, 2001

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

                           Commission File No. 0-27210


                          Tech Electro Industries, Inc.
              ----------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


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

            275 N Franklin Turnpike Suite #230  Ramsey, NJ  07446
        ----------------------------------------------------------------
                     (Address of principal executive office


                                 (201) 760-9900
                          ----------------------------
                           (Issuer's telephone number)

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

As of March 31, 2001, 8,235,820 shares of Common Stock were outstanding.












                                        1


<PAGE>



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


                                      INDEX

                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Consolidated Balance Sheets at March 31, 2001 (unaudited)
and December 31, 2000. . . . . . . . . . . . . . . . . . . . . . . .   F-3

Consolidated Statements of Operations for the three
months ended March 31, 2001 and 2000 (unaudited) . . . . . . . . . .   F-5

Consolidated Statements of Cash Flows for the three
months ended March 31, 2001 and 2000 (unaudited) . . . . . . . . . .   F-7

Notes to Consolidated Financial Statements . . . . . . . . . . . . .   F-9

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

PART II - Other Information. . . . . . . . . . . . . . . . . . . . .  F-14

Item 1.  Legal Proceedings.. . . . . . . . . . . . . . . . . . . . .  F-14

Item 2.  Changes in Securities.. . . . . . . . . . . . . . . . . . .  F-14

Item 3.  Defaults Upon Senior Securities.. . . . . . . . . . . . . .  F-15

Item 4.  Submission of Matters to a Vote of Securities Holders.. . .  F-15

Item 5.  Other Information.. . . . . . . . . . . . . . . . . . . . .  F-15

Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .  F-15

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  F-15












                                        2

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

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
             AS OF MARCH 31, 2001 (UNAUDITED) AND DECEMBER 31, 2000

                                  ASSETS
                                                March 31,     December 31,
                                                  2001            2000
                                              (Unaudited)
                                              ------------   --------------
CURRENT ASSETS
  Cash and cash equivalents . . . . . . . .   $    723,621   $     839,060
  Certificate of deposit. . . . . . . . . .        155,632         153,519
  Accounts and notes receivable
    trade, net of allowance for doubtful
    accounts of $179,538 (unaudited) and
    $218,763  . . . . . . . . . . . . . . .      3,576,763       4,390,700
    Notes . . . . . . . . . . . . . . . . .          3,416               -
    Other . . . . . . . . . . . . . . . . .         33,460          40,280
  Inventories, net of allowance for
    obsolescence of $338,274 (unaudited)
    and $335,274  . . . . . . . . . . . . .      2,754,656       3,303,541
  Prepaid expenses and other current assets        777,873         814,864
                                              ------------   --------------

      Total current assets. . . . . . . . .      8,025,421       9,541,964
                                              ------------   --------------
PROPERTY AND EQUIPMENT
  Facsimile and business center equipment        4,190,900       4,252,306
  Machinery and equipment . . . . . . . . .        536,661         526,628
  Furniture and fixtures  . . . . . . . . .        243,214         241,388
  Computer equipment. . . . . . . . . . . .        210,894         210,706
  Leasehold improvements. . . . . . . . . .        181,276         181,276
  Vehicles. . . . . . . . . . . . . . . . .         46,262          46,262
                                              ------------   --------------
                                                 5,409,207       5,458,566
  Less accumulated depreciation and
    amortization. . . . . . . . . . . . . .     (2,018,318)     (1,866,068)
                                              ------------   --------------
      Net property and equipment. . . . . .      3,390,889       3,592,498
                                              ------------   --------------
OTHER ASSETS
  Deferred financing costs, net . . . . . .        200,475         274,231
  Other . . . . . . . . . . . . . . . . . .          9,146          18,436
                                              ------------   --------------
      Total other assets. . . . . . . . . .        209,621         292,667
                                              ------------   --------------
TOTAL ASSETS. . . . . . . . . . . . . . . .   $ 11,625,931   $  13,427,129
                                              ============   ==============
               The accompanying footnotes are an integral part of
                    these consolidated financial statements.

                                 F-3
<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                               March 31,     December 31,
                                                 2001            2000
                                              (Unaudited)
                                            --------------  --------------
CURRENT LIABILITIES
  Line of credit . . . . . . . . . . . .    $   2,388,477   $   2,617,720
  Current portion of long-term debt  . .        2,845,332       2,894,990
  Accounts payable . . . . . . . . . . .        1,323,846       2,426,417
  Accrued liabilities  . . . . . . . . .          361,733         629,276
  Other current liabilities  . . . . . .            9,200           9,200
                                            --------------  --------------
      Total current liabilities. . . . .        6,928,588       8,577,603
                                            --------------  --------------
LONG-TERM DEBT, less current portion . .           60,428          89,666
                                            --------------  --------------
      Total liabilities. . . . . . . . .        6,989,016       8,667,269

STOCKHOLDERS' EQUITY
  Preferred stock - $1.00 par value;
    1,000,000 shares authorized; 120,588
    Class A issued and outstanding;
    liquidation preference of $633,087 .          120,588         120,588
  Common stock - $0.01 par value;
    50,000,000 shares authorized; 8,235,820
    (unaudited) and 8,198,197 shares
    issued and outstanding at March 31, 2001
    and December 31, 2000, respectively            82,358          81,982
  Additional paid-in capital . . . . . .       14,466,237      14,457,207
  Accumulated deficit  . . . . . . . . .      (10,032,268)     (9,899,917)
                                            --------------  --------------
      Total stockholders' equity . . . .        4,636,915       4,759,860
                                            --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  11,625,931   $  13,427,129
                                            ==============  ==============






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



                                       F-4


<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months
                          Ended March 31, 2001 and 2000
                                   (Unaudited)

                                                          2001          2000
                                                    -------------  ------------
REVENUES
  Sales  . . . . . . . . . . . . . . . . . . . .    $  5,474,789   $ 3,689,554
  Service revenue. . . . . . . . . . . . . . . .       1,394,618     1,952,505
                                                   -------------  ------------
                                                       6,869,407     5,642,059
COST OF REVENUES
  Cost of goods sold . . . . . . . . . . . . . .       4,430,733     2,892,601
  Direct servicing costs . . . . . . . . . . . .         366,683       406,462
                                                   -------------  ------------
                                                       4,797,416     3,299,063
                                                   -------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . . .       2,071,991     2,342,996

OPERATING EXPENSES
  Selling, general and administrative. . . . . .       1,660,819     1,772,708
  Depreciation and amortization of property
     and equipment . . . . . . . . . . . . . . .         212,885       260,523
                                                    ------------  ------------
                                                       1,873,704     2,033,231
                                                    ------------  ------------
INCOME FROM OPERATIONS . . . . . . . . . . . . .         198,287       309,765

OTHER INCOME (EXPENSES)
  Interest income  . . . . . . . . . . . . . . .           3,650         7,968
  Interest expense . . . . . . . . . . . . . . .        (249,253)     (283,981)
  Amortization of deferred financing costs . . .         (73,756)      (73,756)
  Lawsuit settlement . . . . . . . . . . . . . .               -      (400,086)
  Other, net . . . . . . . . . . . . . . . . . .          (1,873)        9,210
                                                   -------------  ------------
                                                        (321,232)     (740,645)
                                                   -------------  ------------
LOSS BEFORE PROVISION FOR INCOME TAXES AND
    EXTRAORDINARY GAIN . . . . . . . . . . . . .        (122,945)     (430,880)

PROVISION FOR INCOME TAXES . . . . . . . . . . .               -             -
                                                   -------------  ------------
LOSS BEFORE EXTRAORDINARY GAIN . . . . . . . . .        (122,945)     (430,880)

EXTRAORDINARY GAIN . . . . . . . . . . . . . . .               -       568,750
                                                   -------------  ------------
NET INCOME (LOSS). . . . . . . . . . . . . . . .    $   (122,945)  $   137,870
                                                   =============  ============

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

                                  - Continued -

                                       F-5

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
               For the Three Months Ended March 31, 2001 and 2000
                                   (Unaudited)

                                                          2001          2000
                                                     ------------   ------------

Net income (loss) attributable to common
  stockholders . . . . . . . . . . . . . . . . . .   $  (132,351)   $   125,435
                                                     ============   ============

Basic and diluted net loss before extraordinary
  gain per share attributable to common
  shareholders . . . . . . . . . . . . . . . . . .   $     (0.02)   $     (0.05)
                                                     ============   ============
Basic and diluted extraordinary gain attributable
   to common shareholders  . . . . . . . . . . . .   $         -    $      0.07
                                                     ============   ============
Basic and diluted net income (loss) per share
  attributable to common shareholders. . . . . . .   $     (0.02)   $      0.02
                                                     ============   ============

Number of weighted-average shares of common
  stock outstanding (basic and diluted). . . . . .     8,210,320      7,688,722
                                                     ============   ============
























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




                                       F-6

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CASH FLOWS For The Three Months
                          Ended March 31, 2001 and 2000
                                   (Unaudited)


                                                         2001            2000
CASH FLOWS FROM OPERATING ACTIVITIES                --------------  ------------
Net income (loss). . . . . . . . . . . . . . . . .  $    (122,945)  $   137,870
Adjustments  to  reconcile  net  income
   (loss) to net cash  provided  (used) by
   operating activities:
    Shares issued for compensation . . . . . . . .              -       (45,000)
    Depreciation of property and equipment . . . .        212,885       260,539
    Provision for bad debts. . . . . . . . . . . .          6,000         4,100
    Provision for obsolete inventory . . . . . . .          3,000         3,000
    Extraordinary gain on note retirement  . . . .              -      (568,750)
    Amortization of debt discount  . . . . . . . .         16,311        83,969
    Amortization of deferred financing costs . . .         73,756        73,756
    Change in operating assets and liabilities
      Accounts receivable - trade. . . . . . . . .        807,937       (75,810)
      Accounts receivable - other. . . . . . . . .          6,820        21,190
      Inventories. . . . . . . . . . . . . . . . .        545,885      (342,861)
      Prepaid expenses and other current assets. .         36,991       185,126
      Other assets . . . . . . . . . . . . . . . .          5,543         2,518
      Trade payable  . . . . . . . . . . . . . . .     (1,102,571)     (167,630)
      Accrued liabilities. . . . . . . . . . . . .       (267,543)      178,305
                                                    --------------  ------------
Net cash provided (used) by operating activities .        222,069      (249,678)
                                                    --------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of property and equipment. . . . . . .        (11,276)     (158,696)
  Proceeds on sale of property and equipment . . .              -        36,938
  Payments received on notes receivable. . . . . .            331           781
  Purchase of certificate of deposit . . . . . . .         (2,113)       (2,646)
                                                    --------------  ------------
Net cash used by investing activities  . . . . . .        (13,058)     (123,623)
                                                    --------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Net activity on line of credit . . . . . . . . .       (229,243)      214,993
  Repayment of long-term debt. . . . . . . . . . .        (95,207)     (540,863)
  Proceeds from long-term debt.. . . . . . . . . .              -       500,000
                                                    --------------  ------------
Net cash (used) provided by financing activities .       (324,450)      174,130
                                                    --------------  ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS. . . . .       (115,439)     (199,171)




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


                                       F-7


<PAGE>
             TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
          For The Three Months Ended March 31, 2001 and 2000
                              (Unaudited)


                                                      2001          2000
                                                 ------------   ------------
Cash and cash equivalents at beginning
  of period. . . . . . . . . . . . . . . . .         839,060        894,261
                                                 ------------   ------------
Cash and cash equivalents at end of period .     $   723,621    $   695,090
                                                 ============   ============
SUPPLEMENTAL SCHEDULE OF NONCASH
  INVESTING AND FINANCING ACTIVITIES

  Issuance of common stock for
    settlement of note payable . . . . . . .     $         -    $ 1,031,250
                                                 ============   ============
  Dividends paid through issuance
    of common stock  . . . . . . . . . . . .     $     9,406    $    12,435
                                                 ============   ============
  Fair value of warrants issued and recorded
    as deferred financing costs  . . . . . .     $         -    $   163,554
                                                 ============   ============

























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


                                       F-8

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

NOTE A - BASIS OF PRESENTATION

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

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the three month  period  ended March 31,  2001.  The results for the three month
period ended March 31, 2001 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 2001.

NOTE B - ORGANIZATION

Tech Electro Industries,  Inc. ("TEI") was formed on January 10, 1992 as a Texas
corporation.  TEI's subsidiary,  Computer Components  Corporation ("CCC"), doing
business as Universal  Battery ("UBC"),  stocks and sells electronic  components
and batteries.  Within the battery sales  activity,  there is significant  value
added to the batteries in 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.  TEI'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),  The Office
(TM) , InnPhone  and  InnPhonePlus.  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.  InnPhone and InnPhonePlus are digital and analog phones  distributed by
AHS to the hospitality industry.

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 $9,406 and $12,435
for the three month periods ending March 31, 2001 and 2000,  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.  TEI's common stock  equivalents are not included in
the diluted  income (loss) per share for the three month periods ended March 31,
2001 and 2000 as they are antidilutive.

NOTE D - RECLASSIFICATIONS

Certain 2000 amounts have been reclassified to conform with 2001 presentation.


                                       F-9


<PAGE>
NOTE E - SEGMENTS

The battery and electronic sales segment represents the operations of UBC, which
includes  the  stocking  and sales of battery  and  electronic  components.  The
hospitality  service  operations of AHS provides  private in-room  facsimile and
office  business center for business  travelers.  These segments were identified
based on the different nature of the services,  location,  and, in general,  the
type of customers for those services.

A summary of the segment financial  information  reported to the chief operating
decision maker is as follows:
<TABLE>
<S>                                  <C>              <C>           <C>         <C>
                                     -------------------------------------------------------
                                                Three Months Ended March 31, 2001
                                     -------------------------------------------------------
                                                       Battery and
                                      Facsimile &      Electronic
                                     Business Center     Sales      Adjustment  Consolidated
                                     ---------------  ------------  ----------  ------------
Revenue                              $ 1,394,618      $ 5,474,789   $       -   $ 6,869,407
Depreciation and amortization            188,445           23,168       1,272       212,885
Segment profit (loss)                   (350,994)         210,111      17,938     (122,945)
Segment assets                         4,752,497        6,854,417      19,017    11,625,931
Capital expenditures by segment            7,817            3,459           -        11,276
</TABLE>
<TABLE>
<S>                                  <C>              <C>           <C>         <C>
                                     -------------------------------------------------------
                                                Three Months Ended March 31, 2000
                                     -------------------------------------------------------
                                                      Battery and
                                       Facsimile &     Electronic
                                     Business Center     Sales      Adjustment  Consolidated
                                     ---------------  ------------  ----------  ------------

Revenue                              $ 1,952,505      $ 3,689,554   $       -   $ 5,642,059
Depreciation and amortization            242,077           17,669         777       260,523
Segment profit (loss)                   (109,218)        (271,784)    518,872       137,870
Segment assets (as restated)           6,091,601        5,262,891     293,794    11,648,286
Capital expenditures by segment          123,761           31,753       3,182       158,696
</TABLE>

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









                                      F-10

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

The following  discussion and analysis should be read in conjunction  with TEI'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 TEI'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. TEI'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 TEI's Annual
Report on Form 10-KSB for the year ended December 31, 2000.

BACKGROUND AND RECENT DEVELOPMENTS

On April 18,  2001,  we launched a new  business  through  our new wholly  owned
subsidiary,  DomainGorilla.com,  Inc., a New Jersey  corporation.  We will offer
".com",  ".net" and ".org" top-level domain name  registration  services with an
emphasis on bulk  renewals,  transfers and  registrations.  We are accredited to
offer this service by The Internet  Corporation  for Assigned Names and Numbers,
a.k.a.  ICANN. This a new venture for us. We have no experience in this business
and we cannot assure any investor in our stock that we will be successful. As of
the date of this filing, we have had no revenues from this business.

On April 25, 2001,  AHS signed a License  Agreement with Trety Ltd. of Hong Kong
to market and sell The Office (TM)  through its wholly  owned  subsidiary  Trety
Hospitality UK Ltd. The License  Agreement  provides for royalty payments to AHS
on sales from Trety  Hospitality  UK Ltd. The markets  covered by this agreement
include continental Europe, United Kingdom and The Republic of Ireland.

RESULTS OF OPERATIONS

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

Revenues

For the three month  period ended March 31, 2001,  Tech Electro  Industries  had
consolidated  revenues  of  $6,869,407  compared to  $5,642,059  for the similar
period ended March 31, 2000, an increase of $1,227,348.

Universal Battery and AlphaNet had revenues of $5,474,789 and $1,394,618 for the
three month period ended March 31, 2001,  respectively,  compared to revenues of
$3,689,554  and $1,952,505  for the similar  period in 2000,  respectively.  The
$1,785,235 in increased  Universal  Battery revenues is largely  attributable to
the  increase in sales of battery and  battery  related  products to the primary
markets  serviced by Universal  Battery.  Specifically,  direct  shipping  sales
accounted for approximately $910,284 or 51.0% of the increase. Batteries sold to
the  medical  industry  represented  $318,783  or  17.86% of  Universal  Battery
increased  revenues.  $556,168 or 31.15% related to new business  growth in both

                                      F-11
<PAGE>
industrial and consumer  batteries.  AlphaNet's decrease in revenues of $557,887
is largely  attributable  to the continued  decline in facsimile  usage by hotel
guests as well as the declining  installation  base of InnFax  machines in North
America.  Revenues  generated  from  AlphaNet's The Office product for the three
months ended March 31, 2001  remained  flat in  comparison to the same period in
2000.  However,  sales of  AlphaNet's  InnPhone  product  increased  by 48.9% to
$111,633  during the first  quarter of 2001 in comparison to $74,965 in revenues
during the same period in 2000.

Cost Of Revenues

For the three  month  period  ended March 31,  2001,  Tech  Electro  Industries'
consolidated  cost of  revenues  increased  to  $4,797,416  compared  to cost of
revenues  of  $3,299,063  for  the  similar  period  in  2000,  an  increase  of
$1,498,353.

Universal  Battery's and  AlphaNet's  cost of revenues  totaled  $4,430,733  and
$366,683 for the three month period ended March 31, 2001, compared to $2,892,601
and $406,462 the similar  period in 2000,  respectively.  Increased  revenues at
Universal Battery during the three month period ended March 31, 2001 compared to
the  similar  period in 2000,  resulted  in an  increase in the cost of revenues
during the three  month  period  ended  March 31,  2001  compared to the similar
period in 2000.  Cost of revenues as a  percentage  of  revenues  for  Universal
Battery  increased to 80.90%  compared to 78.40% for the similar period in 2000.
This increase is attributable mainly to lowering prices to Schumacher  Electric,
which is  Universal  Battery's  largest  account  and a high  volume  and direct
shipping customer. Direct services costs as a percentage of service revenues for
AlphaNet  increased  to 26.29%  compared  to 20.82% for the three  month  period
ending  March  31,  2001  and  2000,  respectively.   The  increase  is  largely
attributable  to the decline in InnFax  usage by hotel  guests.  These costs are
relatively fixed in nature and thus have not decreased  significantly as revenue
has decreased.

Operating Expenses

For the three  month  period  ended March 31,  2001,  Tech  Electro  Industries'
consolidated   operating   expenses,   consisting   of   selling,   general  and
administrative,  depreciation and amortization  expenses decreased to $1,873,704
compared to $2,033,231 for the similar period in 2000, a decrease of $159,527.

Universal Battery's,  AlphaNet's,  and Tech Electro Industries' selling, general
and   administrative   expenses   totaled   $671,691,   $848,571  and  $140,557,
respectively  for the three  month  period  ended  March 31,  2001,  compared to
$621,101,  $1,007,072 and $144,535 for the similar period in 2000, respectively.
The increase in Universal Battery's selling, general and administrative expenses
in 2001 is due to increases in advertising, travel costs and wages. The decrease
in  AlphaNet's   selling,   general  and  administrative   expenses  is  largely
attributable to the decrease in personnel,  which decreased wages and bonuses. A
reduction in recruiting expenses also contributed to the decrease.  Tech Electro
Industries' selling,  general and administrative expenses remained virtually the
same for the three month period ending March 31, 2001 and 2000.

For the three month period ended March 31, 2001, Tech Electro Industries'

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<PAGE>
consolidated  depreciation  expense was  $212,885  compared to $260,523  for the
similar period in 2000, a decrease of $47,638.  The decrease is largely due to a
portion  of  the  AlphaNet   facsimile   equipment  in  hotels   becoming  fully
depreciated.

Interest Expense

For the three month period ended March 31, 2001, Tech Electro  Industries,  on a
consolidated  basis,  incurred $249,253 in interest expense compared to $283,981
for the similar period in 2000, a decrease of $34,728. The decrease is primarily
due to the decrease of $67,658 in the  amortization of deferred  financing costs
for the period ended March 31, 2001 compared to the similar period in 2000. This
decrease is offset by the increased  interest  expense  related to the increased
borrowings under the Universal Battery line of credit.

Liquidity

Tech Electro Industries had cash and cash equivalents on a consolidated basis of
$723,621  and  $695,090 at March 31, 2001 and 2000,  respectively.  On March 31,
2001  Universal  Battery had $46,939  available for borrowing  under its line of
credit.

Net cash  provided by  operations  was $222,069 for the three month period ended
March 31, 2001 compared to cash used of $249,678 for the similar period in 2000.
The majority of the cash provided  during 2001 related to a decrease in accounts
receivable  of $807,937  and a decrease  in  inventory  of $545,885  offset by a
decrease in accounts  payable and accrued  liabilities of  $1,370,114.  The 2000
cash used by  operating  activities  was due to the  extraordinary  gain on note
retirement  of $568,750,  an increase in inventory of $342,861 and a decrease in
accounts  payable of $167,630  offset by an increase in accrued  liabilities  of
$178,305 and a decrease in prepaid expenses of $185,126.

Net cash used by investing activities for the three month period ended March 31,
2001,  was  $13,058  compared to $123,623  for the similar  period in 2000.  The
majority  of the  decrease  was  caused  by the  purchase  of new  property  and
equipment in 2000.

Net cash used by financing activities for the three month period ended March 31,
2001 was $324,450  compared to cash provided of $174,130 for the similar  period
in 2000.  The net cash used by financing  activities  for the three months ended
March 31, 2001 comprised of payments on the Universal Battery line of credit and
long term debt.  The net cash  provided by  financing  activities  for the three
months  ended March 31, 2000 was  activity on the line of credit and proceeds of
$500,000 received on the Caspic loan.

Universal Battery has a $3,000,000 line of credit with a financial  institution,
payable on demand,  with  interest  payable  monthly at prime plus 2%,  maturing
August 2002. The line of credit is secured by accounts  receivable,  inventories
and  equipment  of  Universal  Battery.  The line's  availability  is based on a
borrowing  formula  which  allows  for  borrowings  equal  to 85%  of  Universal
Battery's eligible accounts receivable and 50% of eligible  inventory.  On March
31,  2001,  $2,388,477  of the line of credit  was  outstanding,  while  $46,939
remained available for borrowings under the line of credit.

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<PAGE>
As of March 31, 2001,  AlphaNet has notes  payable to financing  companies  with
balances of $2,167,140,  net of unamortized discount of $38,060. 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 March 31 and May 31, 2001, we owe $1,343,800 in principal on
this note.  Accrued interest is paid through May 31, 2001. The other 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 March 31 and
May 31, 2001,  we owe $861,400 in  principal on this note.  Accrued  interest is
paid through May 31, 2001.  These notes,  which have an interest  rate of 20.5%,
mature on  October  21,  2001.  These  notes are  secured by a first lien on all
AlphaNet  assets and a second lien on all  AlphaNet  stock owned by Tech Electro
Industries.

Tech  Electro  Industries  currently  has a  $500,000  note at a 12%  per  annum
interest  rate payable on September  10, 2001 to Caspic  International,  Inc. of
which William Tan is an officer,  director and  shareholder.  As of March 31 and
May 31, 2001, we owe $500,000 in  principal.  As of May 31, 2001, we owe $15,000
accrued interest on this note.

We are seeking  alternative  sources of financing  to repay the said 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.  To date,  we have been  unsuccessful  in securing  any  alternative
financing.

Tech Electro  Industries  believes that cash provided by its operations and cash
available under the Universal Battery 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.

INFLATION

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

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.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities.

None.


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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.

None.








                                    Signature
                                    ---------

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this Amendment Number 2 to this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                      Tech Electro Industries, Inc.
                                      -----------------------------


Date: August 6, 2001                   /s/  Julie  Sansom-Reese
                                       --------------------------------
                                       Julie  Sansom-Reese
                                       Chief Financial Officer

















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