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, 2000

         [ ]  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, Ste 230, Ramsey, New Jersey 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 October 31, 2000, 8,148,656 shares of Common Stock were  outstanding.














                                       1
<PAGE>



                                      INDEX



                                                                      Page
PART I - Financial Information

Item 1.  Financial Statements

   Consolidated Balance Sheets at September 30, 2000 (unaudited)
   and December 31, 1999................................................3

   Consolidated Statements of Operations for the periods
   ended September 30, 2000 and 1999 (unaudited)........................5

   Consolidated Statements of Cash Flows for the periods
   ended September 30, 2000 and 1999 (unaudited)........................7

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

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

PART II - Other Information............................................17

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

   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..............................................................18















                                       2


<PAGE>
PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                                  (Unaudited)
                                                 September 30,     December 31,
                                                     2000             1999
                                                 -------------    -------------
CURRENT ASSETS
     Cash and cash equivalents....................$    633,509     $   894,261
     Certificate of deposit.......................     151,314         260,294
     Accounts and notes receivable
        Trade, net................................   4,800,833       3,352,887
        Notes.....................................           -         180,146
        Other.....................................      62,426          67,901
     Inventories, net ............................   1,972,225       1,611,358
     Prepaid expenses and other current assets....     706,647         601,257
                                                   -----------      ----------
           Total current assets...................   8,326,954       6,968,104
                                                   -----------      ----------
PROPERTY AND EQUIPMENT
     Facsimile and business center equipment......   7,587,714       8,175,530
     Other equipment..............................   1,051,490         959,814
     Furniture and fixtures.......................     227,944         214,271
     Vehicles.....................................      46,262          14,262
     Leasehold improvements.......................      77,325          51,378
                                                   -----------      ----------
                                                     8,990,735       9,415,255
     Less accumulated depreciation and
        amortization..............................  (1,714,179)     (1,426,888)
                                                   -----------      ----------
           Net property and equipment.............   7,276,556       7,988,367
                                                   -----------      ----------

OTHER ASSETS
     Notes receivable, net of current portion.....       4,269           7,031
     Deferred financing costs, net................     407,062         688,875
     Other........................................      16,517          26,461
                                                    ----------      ----------
           Total other assets.....................     427,848         722,367
                                                    ----------      ----------
TOTAL ASSETS......................................$ 16,031,358     $15,678,838
                                                    ==========     ===========



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




                                       3

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

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                   (Unaudited)
                                                  September 30,    December 31,
                                                      2000             1999
                                                  -------------    ------------
CURRENT LIABILITIES
     Line of credit...............................$  1,717,754     $   389,532
     Current portion of long-term debt............     600,622       2,316,796
     Current portion of capital lease payable.....       3,044               -
     Trade accounts payable.......................   2,356,064       1,846,642
     Accrued liabilities..........................     586,434         948,687
     Other current liabilities....................      44,119          44,119
                                                    ----------      ----------
            Total current liabilities.............   5,308,037       5,545,776
                                                    ----------      ----------

LONG-TERM DEBT, less current portion..............   2,479,362       2,556,174
CAPITAL LEASE PAYABLE, less current portion.......      13,532               -
EXCESS OF NET ASSETS OF COMPANIES ACQUIRED
     OVER COST, NET...............................   3,642,829       4,033,132
                                                    ----------      ----------
            Total liabilities.....................  11,443,760      12,135,082


STOCKHOLDERS' EQUITY
 Preferred stock - $1.00 par value; 1,000,000 shares
  authorized; 120,588 (unaudited)and 119,588 Class A
  issued and  outstanding at September 30, 2000 and
  December 31, 1999, respectively; liquidation
  preference of $633,087 (unaudited) and $627,837 at
  September 30, 2000 and December 31,
  1999, respectively..............................     120,588         119,588
 Common stock - $0.01 par value; 50,000,000
  shares authorized; 8,148,656 (unaudited)
  and 7,034,684 shares issued and
  outstanding at September 30, 2000 and
  December 31, 1999, respectively.................      81,487          70,347
 Additional paid-in capital.......................  14,398,022      13,225,368
 Accumulated deficit.............................. (10,012,499)     (9,871,547)
                                                    ----------      ----------
            Total stockholders' equity............   4,587,598       3,543,756
                                                    ----------      ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY........$ 16,031,358     $15,678,838
                                                    ==========      ==========



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

                                       4


<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<S>                                        <C>            <C>             <C>            <C>
                                               Three Months Ended             Nine Months Ended
                                                  September 30,                 September 30,
                                            ------------------------       -------------------------
                                               2000          1999             2000           1999
REVENUES                                    ---------      ---------       ----------     ----------
     Revenues..............................$6,993,580     $4,272,788      $18,368,540    $ 9,217,203
     Service revenue.......................         -              -                -      2,775,147
                                            ---------      ---------       ----------     ----------
                                            6,993,580      4,272,788       18,368,540     11,992,350
COST OF REVENUES
     Cost of revenues...................... 4,657,752      3,448,920       11,444,503      7,879,406
     Direct servicing costs................         -              -                -      1,586,638
                                            ---------      ---------       ----------     ----------
                                            4,657,752      3,448,920       11,444,503      9,466,044
                                            ---------      ---------       ----------     ----------
GROSS PROFIT............................... 2,335,828        823,868        6,924,037      2,526,306

OPERATING EXPENSES
     Selling, general and administrative... 1,625,196      1,028,714        5,408,701      3,956,373
     Inventory obsolescence provision......     3,000         15,000            9,000        215,930
     Depreciation and amortization of
        property and equipment.............   345,246         17,391        1,020,353        254,526
     Lawsuit settlement....................   199,000              -          549,086              -
     Amortization of excess of net assets
        of companies acquired over cost....  (130,101)             -         (390,303)             -
                                            ---------      ---------       ----------     ----------
                                            2,042,341      1,061,105        6,596,837      4,426,829
                                            ---------      ---------       ----------     ----------
INCOME (LOSS) FROM OPERATIONS..............   293,487       (237,237)         327,200     (1,900,523)

OTHER INCOME (EXPENSES)
     Interest income.......................     4,456         15,581           16,177         47,574
     Interest expense......................  (246,768)       (11,940)        (648,831)      (152,652)
     Amortization of deferred financing
        costs..............................  (102,649)             -         (445,366)        18,494
     Other.................................    29,902          6,098           76,109         39,003
                                            ---------      ---------       ----------     ----------
                                             (315,059)         9,739       (1,001,911)       (47,581)
                                            ---------      ---------       ----------     ----------
LOSS BEFORE PROVISION FOR
    INCOME TAXES AND EXTRAORDINARY GAIN....   (21,572)      (227,498)        (674,711)    (1,948,104)

PROVISION FOR INCOME TAXES.................         -              -                -              -
                                            ---------      ---------       ----------     ----------
LOSS BEFORE EXTRAORDINARY GAIN.............   (21,572)      (227,498)        (674,711)    (1,948,104)
</TABLE>


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

                                       5

<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS - Continued
                                   (Unaudited)
<TABLE>
<S>                                        <C>            <C>              <C>            <C>
                                               Three Months Ended                Nine Months Ended
                                                  September 30,                    September 30,
                                            -----------------------         -------------------------
                                              2000           1999              2000           1999
                                            ---------      ---------        ---------      ----------
EXTRAORDINARY GAIN........................          -              -          568,750               -
                                            ---------      ---------        ---------      ----------
NET LOSS.................................. $  (21,572)    $ (227,498)      $ (105,961)    $(1,948,104)
                                            =========      =========        =========      ==========
Net loss attributable to
     common stockholders...................$  (32,859)    $ (238,351)      $ (140,952)    $(1,987,523)
                                            =========      =========        =========      ==========
Basic and diluted net loss before
     extraordinary gain per share
     attributable to common shareholders...$     0.00     $    (0.04)      $    (0.09)    $     (0.39)

Basic and diluted extraordinary gain
     attributable to common shareholders...$        -     $        -       $      .07     $         -
                                            ---------      ---------        ---------      ----------
Basic and diluted net loss
     per share attributable to common
     shareholders..........................$     0.00     $   (0.04)       $    (0.02)    $     (0.39)
                                            =========      =========        =========      ==========
Number of weighted-average shares of
     common stock outstanding (basic
     and diluted).......................... 8,128,730      5,414,026        7,979,526       5,050,140
                                            =========      =========        =========      ==========
</TABLE>


















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


                                       6


<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          Nine Months Ended
                                                            September 30,
                                                          ------------------
                                                          2000          1999
CASH FLOWS FROM OPERATING ACTIVITIES                   ----------    ----------
Net loss..............................................$  (105,961)  $(1,948,104)
Adjustments to reconcile net loss to net
   cash used by operating activities:
     Common stock issued for compensation.............    (45,000)      404,454
     Depreciation and amortization of property
        and equipment.................................  1,020,353       254,483
     Provision for bad debts..........................    353,976       161,576
     Provision for obsolete inventory.................   (194,549)      120,142
     Write-off of notes receivable....................     80,146             -
     Loss on sale of property and equipment...........          -         2,170
     Extraordinary gain on retirement of note payable.   (568,750)            -
     Amortization of deferred financing costs.........    445,366        18,494
     Amortization of excess of net assets
        of companies acquired over cost...............   (390,303)            -
     Change in operating assets and liabilities
           Accounts receivable - trade................ (1,801,922)   (1,155,689)
           Accounts receivable - other................      5,475       (38,448)
           Inventories................................   (166,318)      648,677
           Prepaid expenses and other current assets..   (105,390)     (220,413)
           Other assets...............................      9,944        10,176
           Trade accounts payable.....................    509,422       787,864
           Accrued liabilities........................   (362,253)    1,072,980
           Deferred service liability.................          -      (199,163)
                                                       ----------    ----------
Net cash used by operating activities................. (1,315,764)      (80,801)
                                                       ----------    ----------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of property and equipment................   (367,285)      (21,287)
   Proceeds from sale of property and equipment.......     76,031        21,512
   Payments received on notes receivable..............    102,762        39,557
   Advance to related party ..........................          -      (472,397)
   Proceeds from sale of certificate of deposit.......    108,980             -
   Cash in de-consolidation of subsidiary.............          -      (316,262)
   Increase in restricted cash........................          -    (1,400,000)
                                                       ----------    ----------
Net cash used by investing activities.................    (79,512)   (2,148,877)
                                                       ----------    ----------






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

                                       7


<PAGE>
                 TECH ELECTRO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          Nine Months Ended
                                                            September 30,
                                                          ------------------
                                                          2000          1999
CASH FLOWS FROM FINANCING ACTIVITIES                    ----------    ---------
   Payments on capital lease..........................       (712)            -
   Net activity on line of credit.....................  1,328,222      (255,590)
   Repayment of long-term debt........................   (692,986)      (36,834)
   Proceeds from long-term debt.......................    500,000             -
   Cash received on shareholder receivable............          -        25,000
   Proceeds from sale of preferred stock, common
      stock and warrants..............................          -        18,750
   Deferred share subscription........................          -     1,430,000
                                                       ----------    ----------
Net cash provided by financing activities.............  1,134,524     1,181,326
                                                       ----------    ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS.............   (260,752)   (1,048,352)

Cash and cash equivalents at beginning
     of period........................................    894,261     1,399,060
                                                       ----------    ----------
Cash and cash equivalents at end of period............$   633,509   $   350,708
                                                       ==========    ==========
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...............................$    34,991   $    36,111
                                                       ==========    ==========
     Issuance of common stock for financing costs.....$   163,553   $         -
                                                       ==========    ==========
     Acquisition of property and equipment
        through capital lease.........................$    17,288   $         -
                                                       ==========    ==========












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

                                       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 nine month period ended September 30, 2000. The results for the
nine month period ended September 30, 2000 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2000.

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, 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".  CCC's  electronic
components sales are generated by in-house sales staff and sales representatives
to customers throughout the United States.

     On October 22, 1999, TEI acquired 100% of the  outstanding  common stock of
AlphaNet Hospitality Systems, Inc. ("AHS"). The acquisition was accounted for as
a purchase and the  operations  of AHS are included in the results of operations
of TEI from the acquisition  date. AHS provides  in-room  facsimile and business
center  services  to  the  hotel  industry  through  licensing  agreements.  AHS
generates  revenues from its InnFax  product  line, a patented  in-room send and
receive  facsimile service and The Office,  full service business  centers,  for
business travelers staying at hotels.

NOTE C - ACQUISITION OF AHS

     TEI acquired AHS in October 1999, and accordingly  AHS's operations are not
reflected in TEI's nine month  period  ended  September,  1999  financials.  The
following unaudited proforma  consolidated  results for the three and nine month
period ended  September 30, 1999 assumes the  acquisition  of AHS occurred as of
January 1, 1999.

                                             (unaudited)         (unaudited)
                                         Three Months Ended   Nine Months Ended
                                            September 30,         September 30,
                                                1999                   1999
                                            ------------          -------------
Revenues.................................  $ 6,361,018          $  18,528,835
Net loss.................................     (978,438)            (3,729,112)
Basic and diluted loss per share
   attributable to common shareholders.... $     (0.18)         $       (0.74)



                                        9
<PAGE>
NOTE D - LOSS PER SHARE

     Basic net loss per share is computed by dividing net loss, increased by the
preferred  stock  dividends  of $11,287 and $10,853 for the three month  periods
ending  September  30,  2000 and 1999 and $34,991 and $39,419 for the nine month
periods ending September 30, 2000 and 1999, respectively by the weighted average
number of common shares  outstanding for the period.  Diluted net loss per share
is computed by dividing net 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 loss per share for the three and
nine month periods ended September 30, 2000 and 1999 as they are antidilutive.

NOTE E - WARRANTS AND STOCK OPTIONS

     On February 16,  2000,  TEI agreed to extend to March 10, 2002 the exercise
date of options to purchase  1,000,000 shares,  originally granted in connection
with an equity offering, exercisable at $2.50 per share.

     On  February  24,  2000,  TEI issued  Caspic  International,  Inc.  250,000
warrants for providing a $500,000  loan.  The warrants are  exercisable at $0.73
per share with an  expiration  date of February  25,  2005.  The  warrants  were
recorded at fair value using the Black-Scholes model as deferred financing fees,
totaling  $163,554.  The warrants were amortized over three months,  the initial
maturity period of the loan. (See Note G)

     On June 24, 2000, the Board of Directors  adopted the 2000 Incentive  Stock
Option Plan (the "2000 ISOP").  At September 30, 2000, there are 52,000  options
issued and  outstanding  under the 2000 ISOP.  These options are  exercisable at
$0.7188 per share with an  expiration  date three  years from date of  issuance.
There are an  additional  1,948,000  shares  available  for grant under the 2000
ISOP.  All the  shares  under  the  2000  ISOP  have  been  registered  with the
Securities and Exchange Commission on Form S-8.

     On October 12, 2000 TEI announced the extension of the  expiration  date of
all Class A Warrants  from  December 1, 2000 to November 30, 2001.  Each warrant
has an  exercise  price of $3.30 per share and  entitles  the holder to purchase
1.06 shares of the common  stock.  Thus, a warrant  holder would  surrender  the
warrant agreement and remit $3.498 for 1.06 shares. In respect to any fractional
shares,  TEI shall  pay to the  warrant  holder  an amount in cash  equal to the
fraction multiplied by the fair market value of the fractional share.

NOTE F - EXTRAORDINARY GAIN

     TEI  recognized an  extraordinary  gain of $568,750 in connection  with the
retirement of a $2,100,000  note  payable.  The note was paid with $500,000 cash
and 1,100,000  common shares of TEI on February 25, 2000. The shares and related
debt  settlement  were  recorded at the trading price of the common stock on the
payment date, which was $0.9375 per share.

NOTE G - RELATED PARTIES

     In  connection  with the  purchase of AHS, TEI incurred  certain  debt.  On
February 24, 2000, TEI renegotiated  and paid in full its $2,100,000  promissory
note that composed part of the purchase  price of the  acquisition of AHS by the
payment of $500,000 cash and the issuance of 1,100,000 shares of common stock.


                                       10
<PAGE>
     The  $500,000  cash was raised by a loan from  Caspic  International,  Inc.
William Tan Kim Wah, the President,  CEO and a significant shareholder of TEI is
also a director and shareholder of Caspic International, Inc. The loan is due on
November 25, 2000,  bears an interest rate of 12% per annum payable  monthly and
is  secured by a pledge of the shares of  capital  stock of AHS.  As  additional
consideration  for the loan, TEI also issued warrants to purchase 250,000 shares
of common stock at $0.73 per share, exercisable immediately,  with an expiration
date of  February 23, 2005.  TEI  is  currently  negotiating an extension of the
maturity date with Caspic International, Inc. (See Note E)

NOTE H - LITIGATION

     In March 1998, TEI completed the  acquisition of a controlling  interest in
US Computer Group, ("USCG") a company that provided a broad range of information
technology  services and products.  On February 25, 1999, Telstar  Entertainment
("Telstar"),  the second  largest  shareholder of USCG,  contributed  additional
capital to USCG through the purchase of additional  shares,  making  Telstar the
largest  shareholder of USCG.  Effective February 25, 1999, TEI ceased reporting
USCG's  financial  results in its  consolidated  financial  statements and began
using the equity  method to account for its  minority  interest.  In March 2000,
Coast Business Credit, Inc., ("Coast"), USCG's senior bank creditor,  foreclosed
on all of USCG's assets,  effectively terminating all of USCG's operations.  TEI
guaranteed a portion of the USCG bank indebtedness.  On June 7, 2000, Coast sued
TEI in the US District Court for the Central  District of  California,  Case No.
CV-00-06115  NM (RZx),  to collect  $361,740  plus  interest,  attorney fees and
costs. TEI settled this lawsuit on September 20, 2000 by paying Coast $199,000.


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, 1999.

BACKGROUND AND RECENT DEVELOPMENTS

     The results of operations  for the nine months ended  September 30, 2000 do
not include US Computer Group ("USCG") operations,  while the comparative period
of 1999  includes  two  months  of USCG  operations.  As AHS was  acquired  as a
purchase in October  1999,  the financial  statements  for the nine months ended
September 30, 2000 include nine months of AHS activity with no operations of AHS
for the comparative 1999 nine month period.

     As  previously  discussed,  TEI was  advised  on March 22,  2000 that Coast
Business  Credit, Inc. ("Coast"), has declared  that USCG  defaulted  on certain


                                       11
<PAGE>
loans from Coast and has demanded  full payment by USCG for all such loans.  TEI
was advised  verbally by Coast's attorney that it had foreclosed and sold all of
USCG's  assets that were  pledged to secure loans from Coast.  TEI  guaranteed a
portion of those loans. On June 7, 2000, Coast sued TEI in the US District Court
for the Central  District  of  California,  Case No.  CV-00-06115  NM (RZx),  to
collect $361,740 plus interest,  attorney fees and costs. On September 20, 2000,
TEI settled this lawsuit with Coast by paying $199,000.

     On  April  28,  2000,  the  American  Arbitration  Association  awarded  an
ex-employee of CCC's $375,865 due to breach of his employment  agreement.  As of
September 30, 2000 this settlement had been paid in full.

     In August 2000, CCC launched its first retail branch known as Battery World
in Oklahoma City, Oklahoma.  While the main focus of Battery World is industrial
accounts,  the  operation  will also service the higher  margin  retail  market.
Oklahoma City will serve as the primary  distribution  hub for Battery World and
will service  Oklahoma,  Kansas and the Texas  panhandle.  This 3200 square foot
facility has approximately 1200 square feet of retail space and 2000 square feet
of warehouse  space.  CCC projects that Battery World will generate  $500,000 in
revenues  for fiscal year 2001 which will  increase  to  $750,000  in 2002.  CCC
management  believes  that gross  margins at Battery World should meet or exceed
current margins on its existing sales.

     On October 12, 2000, TEI announced the extension of the expiration  date of
the Class A Warrants  from  December 1, 2000 to November 30, 2001.  Each warrant
has an  exercise  price of $3.30 per share and  entitles  the holder to purchase
1.06 shares of the Tech Electro  Industries Common Stock. Thus, a warrant holder
would  surrender  the warrant  agreement  and remit $3.498 for 1.06  shares.  In
respect to any fractional  shares, TEI shall pay to the warrant holder an amount
in cash  equal  to the  fraction  multiplied  by the  fair  market  value of the
fractional share.

     On October 23, 2000,  AlphaNet  Hospitality  Systems Inc. announced that it
has selected the full line of Marquis Series  telephones by TeleMatrix  Inc. for
sale to hotels  worldwide.  This  alliance  builds  upon an  existing  agreement
through which AlphaNet marketed  TeleMatrix's Cordless phones under the InnPhone
brand name. The new agreement is part of a larger strategic alliance between the
companies,  whereby  AlphaNet will become a premier  distributor for TeleMatrix.
The TeleMatrix  phones will be marketed globally as InnPhonePlus to hotel chains
and  independents,  not just properties  where AlphaNet  currently  provides its
other  products and  services.  AlphaNet will sell  TeleMatrix's  entire line of
guestroom telephones.

RESULTS OF OPERATIONS

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

THREE MONTHS ENDED  SEPTEMBER 30, 2000 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 1999.

REVENUES

     For the three month period ended  September  30, 2000,  TEI had revenues of
$6,993,580  compared to $4,272,788  for the similar  period ended  September 30,
1999, an increase of $2,720,792 (63.7%).
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<PAGE>
     CCC and AHS had revenues of $5,400,148  and  $1,593,432 for the three month
period  ended  September  30,  2000,  respectively,   compared  to  revenues  of
$4,272,788 and none for the similar period in 1999, respectively. CCC's increase
in revenues is  attributable  to a number of factors.  CCC's battery and related
product sales continue to grow due to CCC's entrance into other battery markets,
including consumer,  medical and security.  In addition,  CCC has started to use
direct  shipping for larger  volume orders which has enabled CCC to compete with
the larger market items.  Also,  during the third quarter of 2000, CCC's largest
customer, Schumacher Electric Corp., added a new product to its existing product
lineup,  resulting in CCC's customer significantly increasing its purchase order
volume.

COST OF REVENUES

     For the three month period ended September 30, 2000, TEI's cost of revenues
increased  to  $4,657,752  compared to cost of revenues  of  $3,448,920  for the
similar period in 1999, an increase of $1,208,832 (35.0%).

     CCC's and AHS's cost of revenues  totaled  $4,324,867  and $332,885 for the
three month period ended September 30, 2000, compared to $3,448,920 and none for
the similar period in 1999,  respectively.  Increased revenues at CCC during the
three month period ended  September 30, 2000  compared to the similar  period in
1999,  resulted in an  increase  in the cost of revenues  during the three month
period ended  September 30, 2000 compared to the similar period in 1999. Cost of
revenues  as a  percentage  of  revenues  for CCC  decreased  slightly to 80.08%
compared to 80.72% for the similar  period in 1999.  This  decrease  was largely
attributable to the increased volume of direct shipments from CCC's suppliers to
their customers.

GROSS PROFIT

     For the three month period ended  September 30, 2000,  TEI recorded a gross
profit of  $2,335,828  compared to $823,868 for the similar  period in 1999,  an
increase of $1,511,960 (183.52%).

     CCC's and AHS's gross profit  totaled  $1,075,281  and  $1,260,547  for the
three month period ended  September 30, 2000,  compared to $823,868 and none for
the similar period in 1999, respectively.

     Gross  profit as a  percentage  of revenue for the three month period ended
September 30, 2000 for CCC increased  slightly to 19.91%  compared to 19.28% for
the similar  period in 1999.  The  increase  was largely  attributable  to lower
overhead costs associated with the direct shipments to their customers.

OPERATING EXPENSES

     For the three month  period  ended  September  30,  2000,  TEI's  operating
expenses, consisting mainly of selling, general and administrative, depreciation
and amortization expenses increased to $2,042,341 compared to $1,061,105 for the
similar period in 1999, an increase of $981,236 (92.47%).

     CCC's,  AHS's,  and TEI's  selling,  general  and  administrative  expenses
totaled $729,611, $760,604 and $134,981, respectively for the three month period
ended  September  30,  2000,  compared to $525,411,  none,  and $503,303 for the
similar period in 1999, respectively. The increase in CCC's selling, general and
administrative  expenses  was largely  attributable  to  increases in legal fees
(including  settlements),  advertising  and  travel costs. The decrease in TEI's
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<PAGE>
selling,  general  and  administrative  expenses  was  largely  attributable  to
a decrease in consulting fees.

     For the three month period ended September 30, 2000, TEI's depreciation and
amortization  expense was $345,246 compared to $17,391 for the similar period in
1999, an increase of $327,855  (1885.20%).  The increase is largely attributable
to AHS's depreciation of assets of $321,446.

     Amortization  of excess of net  assets of  companies  acquired  over  costs
relates to the acquisition of AHS.

INTEREST EXPENSE AND FINANCING FEES

     For the three month period ended September 30, 2000, TEI incurred  $246,768
in interest  expense  compared to $11,940  for the  similar  period in 1999,  an
increase  of $234,828  (1,966.74%).  The  majority  of the  increase in interest
expense is attributable to the $2,525,000 loan which was obtained to acquire AHS
in  October 1999.  AHS  paid  $188,673 in interest on this loan during the three
month period ended September 30, 2000.

     Deferred  financing costs are amortized on a  straight-line  basis over the
original  term of the  financing  agreement.  TEI  issued  warrants  to  various
lenders,  which were  recorded  at fair  value  using the  Black-Scholes  model.
Amortization of these deferred  financing costs was $102,649 for the three month
period ended September 30, 2000.

NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1999.

REVENUES

     For the nine month period  ended  September  30, 2000,  TEI had revenues of
$18,368,540  compared to $11,992,350 for the similar period in 1999, an increase
of $6,376,190 (53.17%).

     CCC and AHS had revenues of  $12,488,111  and $5,880,429 for the nine month
period  ended  September  30,  2000,  respectively,   compared  to  revenues  of
$8,856,671  and none for the  similar  period  in 1999,  respectively.  USCG had
revenues of  $3,135,679  for the nine months  ended  September  30,1999 and none
during the same period for 2000, due to its de-consolidation.  CCC's increase in
revenues  is  attributable  to a number of  factors.  CCC's  battery and related
products product sales continue to grow due to CCC's entrance into other battery
markets,  including consumer, medical and security. In addition, CCC has started
to use direct shipping for larger volume orders which has enabled CCC to compete
with the larger market  items.  Also,  during the third  quarter of 2000,  CCC's
largest customer, Schumacher Electric Corp., added a new product to its existing
product lineup,resulting in CCC's customer significantly increasing its purchase
order volume.

COST OF REVENUES

     For the nine month period ended September 30, 2000,  TEI's cost of revenues
increased to $11,444,503  compared to $9,466,044 for the similar period in 1999,
an increase of $1,978,459 (20.90%).

     CCC and AHS's cost of revenues  totaled  $9,937,779  and $1,506,724 for the
nine  month  period  ended  September 30, 2000,  compared to $7,063,062 and none
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<PAGE>
for  the similar period in 1999, respectively.  Prior to the de-consolidation of
USCG,  USCG  contributed  $2,402,982 to the costs of revenues for the nine month
period  ended  September  30,  1999 (none for 2000).  Increased  revenues at CCC
during the nine month period ended  September  30, 2000  compared to the similar
period in  1999,resulted  in an increase in the cost of revenues during the nine
month period ended  September 30, 2000  compared to the similar  period in 1999.
Cost of  revenues as a  percentage  of revenues  for CCC  decreased  slightly to
79.58%  compared to 79.70% for the similar  period in 1999.  This  decrease  was
largely  attributable  to the increased  volume of direct  shipments  from CCC's
suppliers to their customers.

GROSS PROFIT

     For the nine month period ended  September  30, 2000,  TEI recorded a gross
profit of $6,924,037  compared to $2,526,306  for the similar period in 1999, an
increase of $4,397,731 (174.08%).

     CCC and AHS's gross profit  totaled  $2,550,332 and $4,373,705 for the nine
month period ended  September 30, 2000,  compared to $1,797,609 and none for the
similar period in 1999,  respectively.  USCG's gross profit totaled $728,697 for
the period ended September 30, 1999 (none for 2000).

     Gross  profit as a  percentage  of revenue  for CCC  increased  slightly to
20.42%  compared  to 20.30% for the similar  period in 1999.  The  increase  was
largely  attributable  to lower  overhead  costs  associated  with CCC's  direct
shipments  to their  customers  and the  focus on  battery  and  battery-related
products, which produce a higher profit margin than component sales.

OPERATING EXPENSES

     For the nine  month  period  ended  September  30,  2000,  TEI's  operating
expenses,  consisting  mainly of  selling,  general  and  administrative,  legal
settlement,  depreciation  and  amortization  expenses  increased to  $6,596,837
compared  to  $4,426,829  for  the  similar  period  in  1999,  an  increase  of
$2,170,008(49.02%).

     CCC's,  AHS's,  and TEI's  selling,  general  and  administrative  expenses
totaled $2,009,862,  $2,979,299,  and $419,540,  respectively for the nine month
period  ended  September  30, 2000,  compared to  $1,348,955,  none,  $2,607,418
(includes  USCG) for the similar period in 1999,  respectively.  The increase in
CCC's selling,  general and administrative  expenses was largely attributable to
increases in legal fees (including settlements),  advertising,  travel costs and
the writing off of a note receivable. The decrease in TEI's selling, general and
administrative  expenses was largely  attributable  to the  decrease  consulting
fees.

     For the nine month period ended September 30, 2000, TEI's  depreciation and
amortization  expense was $1,020,353 compared to $254,526 for the similar period
in 1999, an increase of $765,827 (300.88%). The increase is largely attributable
to AHS's  depreciation  of assets of $953,932  for the nine month  period  ended
September 30, 2000 and USCG  incurring  $181,803 in  amortization  costs for the
first half of 1999, none in 2000.

     Amortization  of excess of net  assets of  companies  acquired  over  costs
relates to the acquisition of AHS.


                                       15
<PAGE>
 INTEREST EXPENSE AND FINANCING FEES

     During the nine  month  period  ended  September  30,  2000,  TEI  incurred
$648,831 in interest  expense  compared  to $152,652  for the similar  period in
1999,  an increase of $496,179  (325.04%).  The increase in interest  expense is
attributable  to a $2,525,000  loan which was obtained to acquire AHS in October
1999.  AHS paid  $511,291 in interest on this loan during the nine month  period
ended September 30, 2000.

     Deferred  financing costs are amortized on a  straight-line  basis over the
original  term of the  financing  agreement.  TEI  issued  warrants  to  various
lenders,  which were  recorded  at fair  value  using the  Black-Scholes  model.
Amortization  of these deferred  financing costs was $445,366 for the nine month
period  ended  September  30, 2000,  compared to none for the similar  period in
1999.

EXTRAORDINARY GAIN

     TEI recognized an extraordinary gain of $568,750 from the retirement of the
PricewaterhouseCoopers,  Inc.  note  of  $2,100,000  that  composed  part of the
purchase price of the AHS acquisition.  The note was paid with $500,000 cash and
the issuance of 1,100,000 common shares in February 2000.

INVENTORY

     TEI continually reviews its inventory allowance procedures and policies and
will make adjustments as necessary.  During the period ended September 30, 2000,
TEI recorded $9,000 as a reserve for inventory  allowance,  compared to $215,930
for the  similar  period in 1999.  For the nine months of 1999,  CCC  recorded a
$95,750 inventory reserve for slow moving passive components and USCG recorded a
$120,000 reserve prior to the de-consolidation.

LIQUIDITY

     TEI had cash and cash equivalents of $633,509 and $350,708 at September 30,
2000 and 1999, respectively.

     Net cash used cash by operations  was  $1,315,764 for the nine month period
ended September 30, 2000 compared to $80,801 for the similar period in 1999. The
majority  of the cash used  during  2000  related  to an  increase  in  accounts
receivable of $1,801,922  which was offset by an increase in accounts payable of
$509,422. The 1999 cash used by operating activities was due to larger increases
in accounts receivable than accounts payable.

     Net cash used by  investing  activities  for the  nine-month  period  ended
September 30, 2000, was $79,512 compared to $2,148,877 for the similar period in
1999.  The majority of the cash was used to purchase new property and  equipment
in 2000,  offset  by  proceeds  from  the  sale of  property  and  equipment,  a
certificate of deposit and payments  received on a note  receivable.  During the
nine month ended  September  30, 1999 cash was used  primarily for advances to a
related party of $472,397 and cash in the  de-consolidating of USCG of $316,262,
and the increases in restricted cash of $1,400,000.

     Net cash provided by financing  activities for the nine-month  period ended
September 30, 2000, was $1,134,524 compared to $1,181,326 for the similar period


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<PAGE>
in 1999. The net cash provided by financing activities for the nine months ended
September 30, 2000  comprised of payments on capital  leases,  the net change in
activity  on the line of credit,  and  proceeds of  $500,000  received  from its
long-term  debt  offset by  repayments  of  $692,986.  The net cash  provided by
financing  activities  for the nine months ended  September  30, 1999 was mainly
attributable to cash received from deferred common stock subscriptions.

     CCC 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 2000.
At September 30, 2000,  $1,717,754 of the line of credit was outstanding,  while
$1,129,658 remained available for borrowings under the line of credit.

     TEI has a $500,000  note  payable due on  November  25, 2000 with a 12% per
annum interest  rate. TEI is currently  negotiating an extension of the maturity
date with Caspic  International, Inc.

     AHS has a $2,375,000 note payable due on October 2001 with a 20.5% interest
rate with a maturity date of October 2001. AHS is currently seeking  alternative
financing.

     TEI  believes  that cash flows  provided by its  operations  and cash flows
available  under the line of credit will be  sufficient to meet its needs in the
foreseeable future.

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

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

      On June 7, 2000,  Coast sued TEI in the US  District Court for the Central
District of California,  Case No. CV-00-06115 NM (RZx), to collect $361,740 plus
interest, attorney fees and other related legal costs. Coast claimed that TEI is
liable to Coast on  certain  TEI  guarantees  of loans  from  Coast to USCG.  On
September 20, 2000, TEI settled this lawsuit by paying Coast $199,000.










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<PAGE>
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.

     The deadline for  submitting  shareholder  proposals for inclusion in TEI's
proxy  statement  and  form of proxy for TEI's May 30,  2001  annual  meeting of
shareholders is November 30, 2000.

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

None.


                                    Signature

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


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


Date:   November 13, 2000

                                              /s/ Julie Sansom-Reese
                                              -----------------------------
                                              Chief Financial Officer

















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