UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB


[X]  QUARTERLY  REPORT  UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF  1934  FOR  THE  QUARTERLY  PERIOD  ENDED  SEPTEMBER  30,  2001.

[ ]  TRANSITION  REPORT  UNDER  SECTION  13  OR  15(d)  OF  THE SECURITIES AND
     EXCHANGE ACT OF 1934.

          FOR THE TRANSITION PERIOD FROM ____________ TO _____________


                         Commission File Number 0-21931

                                 AMPLIDYNE, INC.
                                 ---------------
        (Exact name of small business issuer as specified in its charter)

     DELAWARE                                      22-3440510
     --------                                      ----------
(State  or  other  jurisdiction  of             (I.R.S. Employer
  incorporation  or  organization)             Identification  No.)


                               59 LaGrange Street
                           Raritan, New Jersey  08869
                           --------------------------
                    (Address of principal executive offices)

                                 (908) 253-6870
                                 --------------
                           (Issuer's telephone number)


     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or  15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and  (2) has been subject to such filing requirements for the past 90
days.

                                Yes  X   No ___


The number of shares outstanding of the Issuer's Common Stock, $.0001 Par Value,
as  of  October  31,  2001  was  7,892,661.

<PAGE>

                                 AMPLIDYNE, INC.
                                   FORM 10-QSB
                      NINE MONTHS ENDED SEPTEMBER 30, 2001


                                TABLE OF CONTENTS
                                -----------------


PART  1  -  FINANCIAL  INFORMATION
            ----------------------

Item  1        Financial  Statements  (Unaudited):
               ---------------------

               Balance  Sheets                                        1-2

               Statements  of  Operations                             3

               Statement  of  Cash  Flows                             4

               Statement  of  Changes  in  Stockholder's  Equity      5

               Notes  to  Financial  Statements                       6-12

Item  2        Management's Discussion and Analysis of Financial
                Condition  and  Results  of  Operations               13-14

PART  II  -  OTHER  INFORMATION
           --------------------

Item  1.  Legal  Proceedings                                          15

Item  2.  Change  in  Securities                                      15

Signatures                                                            16

<PAGE>

                         PART 1 - FINANCIAL INFORMATION

Item  1.  Financial  Statements

                                 AMPLIDYNE, INC.
                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                      ASSETS
                                      ------

                                                         September 30,  December 31,
                                                              2001         2000
                                                           (Unaudited)

<S>                                                            <C>          <C>
CURRENT ASSETS
  Cash and cash equivalents                                 $1,148,168  $1,966,142
  Accounts receivable, net of allowance
    for doubtful accounts of $359,000 and $291,000 at
    September 30, 2001 and December 30, 2000, respectively     557,449     318,345
  Inventories, principally raw materials                     1,053,857     597,953
  Loan receivable-officer                                       46,892      33,667
  Prepaid expenses and other                                    22,122     101,957
                                                            ----------  ----------

  Total current assets                                       2,828,488   3,018,064
                                                            ----------  ----------

PROPERTY AND EQUIPMENT - AT COST
  Machinery and equipment                                      723,664     720,818
  Furniture and fixtures                                        43,750      43,750
  Autos and trucks                                              66,185      66,183
  Leasehold improvements                                         8,138       8,141
                                                            ----------  ----------
  Total                                                        841,737     838,892
  Less:  Accumulated depreciation and amoritization            687,260     588,845
                                                            ----------  ----------
    Net property and equipment                                 154,477     250,047
                                                            ----------  ----------

OTHER ASSETS
  Security Deposits and other non-current assets                57,518      72,354
                                                            ----------  ----------

TOTAL ASSETS                                                $3,040,483  $3,340,465
                                                            ==========  ==========
</TABLE>

    The accompanying notes are an integral part of these financial statements

                                      -1-

<PAGE>
                                 AMPLIDYNE, INC.
                                 BALANCE SHEETS
<TABLE>
<CAPTION>

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

                                                                   September 30,     December 31,
                                                                        2001            2000
                                                                    (Unaudited)
<S>                                                                      <C>             <C>
CURRENT LIABILITIES
  Current maturities of lease obligations                         $      11,312   $      11,385
  Accounts payables                                                     342,966         242,289
  Accrued expenses                                                      162,543         258,875
  Settlement of litigation                                              180,000         150,000
                                                                  --------------  --------------

    Total current liabilities                                           696,821         662,549

LONG-TERM LIABILITIES
  Lease obligations, less current maturities                                  -           9,785

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Convertible Preferred stock - authorized 100,000 shares
    of $.0001 par value; 20,000 shares issued and outstanding
    at September 30, 2001 (liquidation preference of $200,000
    at September 30, 2001)                                                    2               -
  Common stock - authorized, 25,000,000 shares
    Of $.0001 par value; shares 7,892,661, and 7,463,841 shares
     issued and outstanding at September 30, 2001 and
     December 31, 2000, respectively.                                       790             747
Additional paid-in-capital                                           21,610,099      20,212,154
Accumulated deficit                                                 (19,267,229)    (17,544,770)
                                                                  --------------  --------------

  Total stockholders' equity                                          2,343,662       2,668,131
                                                                  --------------  --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $   3,040,483   $   3,340,465
                                                                  ==============  ==============
</TABLE>

    The accompanying notes are an integral part of these financial statements

                                      -2-
<PAGE>

                                 AMPLIDYNE, INC.
                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                     Three            Three             Nine              Nine
                                                     Months           Months           Months             Months
                                                     Ended            Ended             Ended             Ended
                                                 September  30,    September  30,   September  30,     September  30,

                                                      2001             2000              2001              2000
                                                ---------------  ---------------  ----------------  -----------------
<S>                                                     <C>              <C>              <C>               <C>
Net Sales                                       $      663,899   $      474,128   $     1,838,519   $      1,902,204

Cost of goods sold                                     409,384          564,949         1,158,698          1,734,631
                                                ---------------  ---------------  ----------------  -----------------

  Gross profit                                         254,515          (90,821)          679,821            167,573

Operating expenses
  Selling, general & administrative                    449,697          454,606         1,315,607          1,407,292
  Research, engineering and
    development                                        138,480          133,799           439,671            380,638
  Equity-based compensation charge                           -                -           140,000            100,000
                                                ---------------  ---------------  ----------------  -----------------

  Operating loss                                      (333,662)        (679,226)       (1,215,457)        (1,720,357)

Other non operating income (expenses)
  Interest income                                        7,495           39,085            47,462             69,887
  Interest expense                                      (3,600)             179            (4,464)              (550)
  Cost of litigation settlement                              -                -          (550,000)                 -
                                                ---------------  ---------------  ----------------  -----------------

NET LOSS                                        $     (329,767)  $     (639,962)  $    (1,722,459)  $     (1,651,020)
                                                ===============  ===============  ================  =================

Net loss per share - basic and diluted          $         (.04)  $         (.09)  $          (.23)  $           (.23)
                                                ===============  ===============  ================  =================


Weighted average number of shares outstanding        7,883,672        7,430,448         7,609,173          7,211,546
                                                ===============  ===============  ================  =================

</TABLE>
    The accompanying notes are an integral part of these financial statements

                                      -3-
<PAGE>
                                 AMPLIDYNE, INC.
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                           Nine             Nine
                                                          Months           Months
                                                           Ended            Ended
                                                      Sept. 30, 2001    Sept. 30, 2000
                                                    ----------------  ----------------
<S>                                                         <C>               <C>
Cash flows from operating activities:
Net Loss                                            $    (1,722,459)  $    (1,651,020)

Adjustments to reconcile net loss to net cash
used in operating activities
    Depreciation and amortization                            98,415            99,152
    Stock compensation charge                                     -           100,000
    Changes in assets and liabilities
      Accounts receivable                                  (239,104)           (9,381)
      Inventories                                          (455,904)          201,606
      Prepaid expenses and other assets                      94,671           (25,209)
      Accounts payable and accrued expenses                  34,345          (247,115)
                                                    ----------------  ----------------
           Total adjustments                               (467,577)          119,053
                                                    ----------------  ----------------
           Net cash used for operating activities        (2,190,036)       (1,531,967)
                                                    ----------------  ----------------

Cash flows from investing activities:
  Loan receivable - officer                                 (13,225)                -
  Purchase of property and equipment                         (2,845)           (6,692)
                                                    ----------------  ----------------
          Net cash used for investing activities            (16,070)           (6,692)
                                                    ----------------  ----------------

Cash flows from financing activities:
  Payment of lease obligations                               (9,858)          (13,910)
  Proceeds from issuance of stock and exercise of
    options and warrants, net of costs                    1,397,990         2,469,266
                                                    ----------------  ----------------
         Net cash provided by financing activities        1,388,132         2,455,356
                                                    ----------------  ----------------

      NET INCREASE (DECREASE) IN CASH                      (817,974)          916,697

Cash at beginning of period                               1,966,142         1,445,055
                                                    ----------------  ----------------

Cash and cash equivalents at end of period          $     1,148,168   $     2,361,752
                                                    ================  ================

Supplemental disclosures of cash flow information
  Cash paid for:  Interest                          $         4,464   $           729
                  Income taxes                                    -             2,700

</TABLE>

    The accompanying notes are an integral part of these financial statements
                                       -4-
<PAGE>

<TABLE>
<CAPTION>
                                                       AMPLIDYNE, INC.
                                        STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
                                            FOR THE YEAR ENDED DECEMBER 31, 2000
                                          AND NINE MONTHS ENDED SEPTEMBER 30, 2001



                                     Preferred  Stock         Common  Stock
                                     ----------------         -------------
                                                                                   Additional       Accumulated
                                    Shares    Par  Value    Shares     Par  Value  Paid-In-Capital   (Deficit)        Total
                                   --------  ----------  ----------  ------------  ------------   -------------  -------------
<S>                                   <C>       <C>         <C>         <C>           <C>          <C>          <C>
Balance at
December 31, 1999                             $    -       6,924,970      $  692    $17,618,398  $(15,104,725)   $ 2,514,365

Net loss for the year ended
 December 31, 2000                                                 -           -              -    (2,440,045)    (2,440,045)
Issuance of common stock
net of costs                                                 319,000          32      1,594,968             -      1,595,000
Exercise of warrants                                         177,121          19        713,248             -        713,267
Financing and
 compensation costs related
 to options and warrants
 issued                                                            -           -        114,545             -        114,545
Exercise of stock options
 into shares of common
 stock                                                        42,750           4        170,995             -        170,999
                                    --------  ----------  ----------  ------------  ------------   -------------  -------------

Balance at Dec. 31, 2000                   -           -   7,463,841          747    20,212,154    (17,544,770)    2,668,131
Unaudited:
Cost of
    litigation to be
    settled by the issuance
    of common stock                                                                     500,000                      500,000
Financing cost associated
    with warrants extended
    and shares issued                                          1,820                    140,000                      140,000
Issuance of common stock
    net of costs                                             415,000           42       559,708                      559,750
Issuance of Preferred Stock
    net of costs                     20,000           2                                 179,998                      180,000
Beneficial Conversion
    cost relating to
    convertible Preferred
    Stock                                                                                 3,600                        3,600
Issuance of Common Stock
    for services rendered by
    third party                                               12,000           1         14,639                       14,640
Net loss for nine months
 ended September 30, 2001                                                                           (1,722,459)   (1,722,459)
                                    --------  ----------  ----------  ------------  ------------   -------------  -------------

Balance at Sept. 30, 2001             20,000  $        2   7,892,661  $       790   $ 21,610,099   $(19,267,229)  $2,343,662
                                    ========  ==========  ==========  ============  =============  =============  =============
</TABLE>

    The accompanying notes are an integral part of these financial statements

                                      -5-
<PAGE>

                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  A  -  ADJUSTMENTS

In  the  opinion  of  management,  all  adjustments,  consisting  only of normal
recurring  adjustments  necessary  for  a  fair  statement  of  (a)  results  of
operations  for  the  three and  nine month periods ended September 30, 2001 and
September  30,  2000  (b)  the  financial position at September 30, 2001 (c) the
statements  of cash flows for the nine-month period ended September 30, 2001 and
September  30,  2000,  and  (d)  the  changes  in  stockholders'  equity for the
nine-month  period  ended  September  30,  2001  have  been made. The results of
operations  for  the  nine  months  ended September 30, 2001 are not necessarily
indicative  of  the  results  to  be  expected  for  the  full  year.


NOTE  B  -  UNAUDITED  INTERIM  FINANCIAL  INFORMATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
Accordingly,  they  do not include all the information and footnotes required by
generally  accepted accounting principles for financial statements.  For further
information, refer to the audited financial statements and notes thereto for the
year  ended  December 31, 2000, included in the Company's Form 10-KSB filed with
the  Securities  and  Exchange  Commission  on  April  16,  2001.

NOTE  C  -  PUBLIC  OFFERING  AND  PRIVATE  PLACEMENTS

Public  Offering

A  registration  statement covering an underwritten public offering of 1,610,000
units  at  a  price  of  $5.10 per unit, prior to underwriters' commissions, was
declared  effective  by  the  Securities  and Exchange Commission on January 21,
1997.  Each  unit  consisted  of one share of common stock, par value $.0001 per
share  and  one redeemable common stock purchase warrant.  Each warrant entitles
the  holder  to  purchase one share for $6.00 during the four-year period ending
January  21,  2001.  The  Company  provided  notice on May 1, 2000 to reduce the
exercise  price  of  the  warrants  to  $5.00 per share.  The Company previously
provided  notice in April 2000 to redeem the warrants on May 17, 2000 unless the
warrants were previously exercised.  Through May 16, 2000, 124,871 warrants were
exercised  for  proceeds  of $650,454.  The remaining 1,485,129 were redeemed at
$.01  per  warrant  on  May  17,  2000.


                                       -6-

<PAGE>
                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  C  -  PUBLIC  OFFERING  AND  PRIVATE  PLACEMENTS-(CONTINUED)

Private  Placements

At  September  30, 2001, the following 792,500 warrants remain outstanding:  (1)
67,500  exercisable at $2.50 originally through January 20, 2001 but extended to
December  31,  2001, (2) 145,000 exercisable at $4.00 originally through January
20,  2001  but  extended  to  December 31, 2001, (3) 20,000 exercisable at $1.00
through  May  2010,  (4)  20,000 exercisable at $7.00 through December 2004, (5)
30,000  exercisable  at  $6.00  through November 2004, (6) 50,000 exercisable at
$2.00 through December 2004 and (7) 50,000 exercisable at $4.00 through December
2004, (8) 141,000 exercisable at $1.75 (16,000 of which expire December 2004 and
125,000  of which expire December 2002), (9) 41,500 exercisable at $1.80 through
July  31, 2004, (10) 207,500 exercisable at $3.00 through July 31, 2004 and (11)
20,000  exercisable at $1.20 through September 30, 2004.  At September 30, 2001,
the  Company  had employee stock options outstanding to acquire 2,136,000 shares
of  common  stock  at  exercise  prices  of  $1.25  to  $4.00.

During the second quarter ended June 30, 2001, the Company issued 390,000 shares
of  common stock at $1.50 per share, to accredited investors, resulting in gross
proceeds of $585,000. The Company paid cash commissions of $58,500 in connection
with  such  private  placement.


During  the  third  quarter  ended September 30, 2001, the Company issued 25,000
shares of common stock at $1.50 per share, to accredited investors, resulting in
gross  proceeds  of  $37,500.  The  Company  paid  cash commissions of $3,750 in
connection  with  such  private  placement.

In  September 2001, the Company issued 20,000 shares of Series B Preferred Stock
to  accredited  investors  pursuant  to Rule 506 of Regulation D of the Act. The
Company  sold  such  shares  at  $10.00  per  share,  received gross proceeds of
$200,000 and paid brokerage commissions of $20,000 (resulting in net proceeds of
$180,000). The Preferred Stock: (i) are entitled to dividends at the annual rate
of  10%, payable semi-annually, in cash or in shares of Common Stock; (ii) has a
liquidation  preference of $10.00 per share, (iii) is convertible into shares of
Common Stock at the lesser of (A) 100% of the average closing sales price of the
Common  Stock  on  the  five  trading  days  prior to issuance or (B) 85% of the
average  closing  sale price of the Common Stock for the five trading days prior
to  conversion,  in  each case not less than $.75 per share; (iv) is non-voting,
(v) is subject to redemption (at the option of the Company) at a rate of 110% of
the  original  issuance  price  and (vi) shall automatically convert into Common
Stock  on  September  30,  2004 (if not previously converted). The Company shall
also  have  the  right,  at  its  option,  to  convert the Preferred Stock (at a
conversion rate of $1.00 per share) if the average closing sales price per share
of  Common  Stock, for a consecutive 20 trading day period, is $3.00 or greater.




                                       -7-
<PAGE>
                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  C  -  PUBLIC  OFFERING  AND  PRIVATE  PLACEMENTS-(CONTINUED)

During  the  third  quarter  ended September 30, 2001, the Company issued 12,000
shares  of  Common  Stock  to  an  investor  relations  firm. An expense
amounting to $14,600 was charged to operations as a result of the stock issue.

NOTE  D  -  LOSS  PER  SHARE

The Company complies with the requirements of the Financial Accounting Standards
Board  issued Statement of Financial Accounting Standards No. 128, "Earnings per
Share"  ("SFAS  No. 128").  SFAS No. 128 specifies the compilation, presentation
and  disclosure  requirements  for earnings per share for entities with publicly
held  common stock or potential common stock.  Net loss per common share - basic
and  diluted  is  determined  by  dividing  the net loss by the weighted average
number  of  common  stock  outstanding.

Net  loss  per  common  share - diluted does not include potential common shares
derived  from  stock  options  and  warrants  (see  Note  C)  because  they  are
antidilutive.

NOTE  E  -  LITIGATION

From  time  to  time,  the  Company  is  party  to  what it believes are routine
litigation and proceedings that may be considered as part of the ordinary course
of  its  business.  Except  for  the proceedings noted below, the Company is not
aware of any pending litigation or proceedings that could have a material effect
on  the  Company's  results  of  operations  or  financial  condition.

The  Company  is  involved  in  the  following  matters:

1.     AIRNET  COMMUNICATIONS  CORPORATION  VS  AMPLIDYNE,  INC.
       ---------------------------------------------------------
AirNet  filed  a  complaint  in  the  Circuit  Court  of the Eighteenth Judicial
District  of  the  State  of  Florida  on  January  23,  1997 alleging breach of
contract.  During  2000,  the Company settled with AirNet at a cost of $175,000;
$25,000  is  to be paid quarterly over the next two years.  The Company has made
partial  payments  of  the  required  quarterly  amount.  At September 30, 2001,
$95,000  remained  unpaid.



                                       -8-
<PAGE>

                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  E  -  LITIGATION-(CONTINUED)

2.     ENS  ENGINEERING  VS  AMPLIDYNE,  INC.
       --------------------------------------
The  Company  is  also  a  defendant  in  a complaint filed in the United States
District  Court  for  the District of New Jersey on May 13, 1998.  The complaint
alleges breach of contract of a representative agreement between the Company and
ENS  Engineering of South Korea.  The Company reached oral settlement terms and,
based  upon  such  oral  settlement,  the  court dismissed the case in the first
quarter of 2000.  The terms of the oral settlement called for the Company to pay
$85,000  in twelve equal monthly installments, none of which has been paid as of
September 30, 2001.  The Company has not received any required documents and
Releases from  ENS.

3.     CLASS  ACTION  LITIGATION
       -------------------------
The  Company was served with class action complaints on behalf of all purchasers
of  the  Company's  common  stock  and  warrants  between  September 9, 1999 and
September  14,  1999.  By  orders  of the District Court for the District of New
Jersey,  the actions were consolidated and lead plaintiffs were appointed. On or
about  March  24,  2000,  the Company was served with a consolidated and amended
class action complaint on behalf of purchasers of the Company's common stock and
warrants  between  September  9,  1999  and  September  17, 1999. That complaint
alleged  that  the Company and other individuals violated the federal securities
laws  by,  among  other  things, the issuance of a press release on September 9,
1999.  Although  the  Company  believed  that  the  complaint  had  no merit and
vigorously  contested  it, the Company and the other parties to the class action
reached  a  settlement  on May 2, 2001, which was approved by the District Court
for  the  District  of  New Jersey on August 14, 2001 (which became effective on
September  14,  2001)  Pursuant  to  the settlement agreement, a settlement fund
consisting  of  $750,000  in  cash  ($50,000  of  which was paid directly by the
Company)  was  established for the benefit of members of the class. In addition,
the  Company  is obligated to issue 324,486 freely tradable shares of its common
stock  (which  was  valued at $500,000 as of May 2, 2001) on behalf of the class
members.  As  of September 30, 2001, the Company had not been given instructions
regarding  the issuance of such shares. The Company has recorded the cost of the
litigation,  including  a credit to Additional Paid-In Capital for the value
of  the settlement that has been settled by the issuance of common stock.



                                       -9-

<PAGE>
                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  F  -  LIQUIDITY

The  Company  has  incurred  a  loss  of  $1,722,459  for  the nine months ended
September  30,  2001. The Company funded operations during this period primarily
from  the proceeds from privately placed common and preferred stock and exercise
of  warrants  and  options  during  the fiscal years ended December 31, 2000 and
2001.  The  Company  has  also  historically  funded  certain operating expenses
through  borrowings  (in  the form of deferring salaries and cash advances) from
officers  and  principal  shareholders.  The  Company has in the past issued its
stock  in  lieu  of  cash  payments  for  compensation,  sales  commissions  and
consulting  fees,  wherever  possible.


Management's  plans  for  dealing  with  the  foregoing  matters  include:

-    Increasing  sales  of its high speed internet connectivity products through
     both  individual  customers  and strategic alliances, which are expected to
     yield  higher  profit  margins;

-    Decreasing  the  dependency  on  certain  major  customers  by aggressively
     seeking  other  customers  in  the  multicarrier  amplifier  markets;

-    Partnering  with  significant  companies  to  jointly  develop  innovative
     products,  which  has  yielded orders with multinational companies to date,
     and  which  are  expected  to  further  expand  such  relationships;

-    Investigate  potential revenue - sharing partnership in other markets, such
     as  the  hospitality  industry  and  multi-tenant  buildings;

-    Reducing  costs  through  a  more streamlined operations by using automated
     machinery  to  produce  components  for  our  products;

-    Funding  operations  in 2001 with the remaining cash that was received from
     the  2000  and  2001  private  placements, possible additional 2001 private
     placements,  and the deferral of payments of officers' salaries, as needed;

-    Selling  remaining  net  operating  losses  applicable  to the State of New
     Jersey,  pursuant to a special government high-technology incentive program
     in  order  to  provide  working  capital,  if  possible;

-    Reducing  overhead  costs  and  general  expenditures  if  necessary.


                                      -10-
<PAGE>
                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  G  -  SEGMENT  INFORMATION

The Company does not measure its business activities by segment. Information
on the Company's product lines are as follows:


                                           Nine Months Ended  September  30,

                                                                  Year  Ended
       Sales-external                 2001        2000         December 31, 2000
                                      ----        ----         -----------------

        Amplifier               $  1,564,512    $ 1,579,153       $  2,139,590
        Internet business            274,007        323,051            455,500
                                ------------    -----------    -----------------

                                $  1,838,519    $ 1,902,204       $  2,595,090
                                ============    ===========     ================


                                                   September 30,   December 31,
        Inventory:                                      2001           2000
                                                        ----           ----

         Amplifier                                $    714,953     $  439,953
         Internet business                             338,904        158,000
                                                    ----------      ---------

                                                  $  1,053,857     $  597,953
                                                     =========       =========

NOTE  H  -  RECENT  ACCOUNTING  PRONOUNCEMENTS

On  July  20,  2001,  the  Financial  Accounting  Standards  Board (FASB) issued
Statement  of  Financial Accounting Standards (SFAS) 141, Business Combinations,
and  SFAS  142,  Goodwill  and Intangible Assets.  SFAS 141 is effective for all
business  combinations completed after June 30, 2001.  SFAS 142 is effective for
fiscal  years  beginning after December 15, 2001; however, certain provisions of
this  Statement  apply  to goodwill and other intangible assets acquired between
July  1,  2001  and  the  effective  date of SFAS 142. Major provisions of these
Statements  and  their  effective  dates  for  the  Company  are  as  follows:

-    all  business  combinations  initiated  after  June  30,  2001 must use the
     purchase method of accounting. The pooling of interest method of accounting
     is  prohibited  except  for  transactions  initiated  before  July 1, 2001.


                                      -11-

<PAGE>
                                 AMPLIDYNE, INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2001

NOTE  H  -  RECENT  ACCOUNTING  PRONOUNCEMENTS  (CONTINUED)

-    intangible  assets  acquired  in  a  business  combination must be recorded
     separately  from  goodwill  if  they  arise from contractual or other legal
     rights  or  are  separable  from  the  acquired  entity  and  can  be sold,
     transferred,  licensed, rented or exchanged, either individually or as part
     of  a  related  contract,  asset  or  liability


-    goodwill,  as  well  as  intangible  assets with indefinite lives, acquired
     after  June 30, 2001, will not be amortized. Effective January 1, 2002, all
     previously  recognized goodwill and intangible assets with indefinite lives
     will  no  longer  be  subject  to  amortization.


-    effective  January  1,  2002 goodwill and intangible assets with indefinite
     lives  will  be  tested  for  impairment  annually and whenever there is an
     impairment  indicator

-    all  acquired  goodwill must be assigned to reporting units for purposes of
     impairment  testing  and  segment  reporting.


Although  it is still reviewing the provisions of these Statements, management's
preliminary  assessment is that these Statements will not have a material impact
on  the  Company's  financial  position  or  results  of  operations.







                                      -12-

<PAGE>
                         PART I - FINANCIAL INFORMATION

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

RESULTS  OF  OPERATIONS

RESULTS  OF  OPERATIONS-THREE  MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THREE
MONTHS  ENDED  SEPTEMBER  30,  2000.

Net  sales  for  the  three  month period ended September 30, 2001 were $663,899
while  net  sales  for  the  three  month  period  ended September 30, 2000 were
$474,128.  Sales increased in both the Company's amplifier and wireless internet
products.  In  addition,  the period reflected continued deliveries of orders to
Harris  Corporation  and  other  large  OEM's.

Gross  profit for the three months ended September 30, 2001 amounted to $254,515
(38%  of sales) compared to ($90,281) (-19% of sales) for the three months ended
September 30, 2001 and 2000, respectively. Gross profit improved in 2001, due to
higher  profit  margins  on  amplifier  products  and  improvements  in  the
manufacturing  process. The wireless internet products also produced some of the
gross  profit,  however,  the set-up time to develop manufacturing processes and
small  order  quantities  decreased the overall gross profit margin. Further, in
the  third  quarter  of  2000,  the  sales  volume  was particularly low thereby
reducing  the  opportunity  to  recover  fixed  manufacturing  costs.


Selling,  general and administrative expenses were $449,697 and $454,606 for the
three months ended September 30, 2001 and 2000, respectively.  Overall the costs
have  remained  relatively  unchanged.

Research,  engineering,  and  development costs remained relatively constant for
the  three  months  ended  September 30, 2001 from the corresponding three month
period  of  2000.

The  interest  income  decreased  for  the three months ended September 30, 2001
compared  to  the  corresponding  period  of  2000. The decrease is due to funds
available  for  short term investment.

As  a  result of the foregoing, the Company incurred net losses of ($329,767) or
($.04) per share  and ($639,962) or ($.09) per share for the three months ended
September  30,  2001  and  2000,  respectively.


RESULTS  OF  OPERATIONS-NINE  MONTHS  ENDED  SEPTEMBER 30, 2001 COMPARED TO NINE
MONTHS  ENDED  SEPTEMBER  30,  2000.

Net  sales  for  the  nine month period ended September 30, 2001 were $1,838,519
while sales for the nine months ended September 30, 2000 were $1,902,204.  Sales
decreased  due  to  the  Company's  decline  in  the  wireless internet products
marketplace  caused  in part by difficulties incurred by customers and potential
customers  in  obtaining  funding to build their telecommunications network.  In
addition,  the  period  reflects  continued  deliveries of amplifier products to
Harris  Corporation  and  other  large  OEM's.


                                      -13-

<PAGE>
RESULTS  OF  OPERATIONS-NINE  MONTHS  ENDED  SEPTEMBER 30, 2001 COMPARED TO NINE
MONTHS  ENDED  SEPTEMBER  30,  2000  -  (CONTINUED)

Gross  profit  for the nine months ended September 30, 2001 amounted to $679,821
(37%  of  sales),  compared  to  gross  profit of $167,573 (9% of sales) for the
corresponding nine months of 2000.  Gross profit improved in 2001, especially in
the  second and third quarters of 2001 due to higher profit margins on amplifier
products  and  improvements in the manufacturing process.  The wireless internet
products  also  produced  some  of the gross profit, however, the set-up time to
develop manufacturing processes and small order quantities decreased the overall
gross  profit  margin.

Selling,  general and administrative expenses were $1,315,607 and $1,407,292 for
the  nine  months  ended September 30, 2001 and 2000, respectively.  Overall the
costs  have  remained  relatively  unchanged.

Research,  engineering, and development costs increased by $59,033 for the first
nine  months  of  2001  from  the corresponding nine month period of 2000.  This
increase  was primarily due to increased costs of testing and development of new
products.

Stock  compensation  charges  of  $140,000  recorded in 2001 related to the
extension of certain outstanding warrants and stock issued  to  consultants.

The  interest income decreased for the first nine months of 2001 compared to the
corresponding  period  of  2000.  The  decrease  is  due to a reduction of funds
available  for  short  term  investment  as funds have been used for operations.

A $550,000 charge was  allocated  to  the  class  action  lawsuit  settlement in
May 2001.

As a result of the foregoing, the Company incurred net losses of ($1,722,459) or
($.23)  per  share  for the nine months ended September 30, 2001 compared to net
losses  of  ($1,651,020)  or  ($.23)  per  share  for  the  same period in 2000.

LIQUIDITY  AND  CAPITAL  RESOURCES

At  September  30, 2001, the Company had cash and cash equivalents of $1,148,168
principally  due  to  the  injection  of private placement funds and exercise of
warrants  in  1999, 2000, and 2001.  The Company issued its common stock in lieu
of  cash  payments  for  compensation,  commissions,  and  consulting fees where
possible during 2000 and 2001.  This trend is expected to continue in the fourth
quarter  of  2001.

The  Company  believes that the net proceeds of the Company's private placements
will  meet  its  working capital obligations and fund further development of its
business  for  the next twelve months. However, in order to execute our business
plans  to expand product offerings and revenue generating opportunities, we will
likely  require  additional  working capital. There can be no assurance that any
additional financing will be available to the Company on acceptable terms, or at
all.  See  also  Note  F  regarding  liquidity  matters.


                                      -14-
<PAGE>

                           PART II - OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

Although the Company believed that the class action complaint (See Part I - Note
E)  had  no merit and vigorously contested it, the Company and the other parties
to  the  class action reached a settlement on May 2, 2001, which was approved by
the  District  Court  for  the  District of New Jersey on August 14, 2001 (which
became effective on September 14, 2001). Pursuant to the settlement agreement, a
settlement  fund  consisting  of  $750,000  in  cash  ($50,000 of which was paid
directly  by  the  Company)  was  established  for the benefit of members of the
class.  In  addition,  the Company is obligated to issue 324,486 freely tradable
shares  of  its common stock (which was valued at $500,000 as of May 2, 2001) on
behalf  of the class members. As of September 30, 2001, the Company had not been
given  instructions  regarding  the  issuance  of  such  shares.

ITEM  2.  CHANGE  IN  SECURITIES

In  July  2001,  the  Company issued 25,000 shares of Common Stock, at $1.50 per
share (resulting in gross proceeds of $37,500), to accredited investors pursuant
to  Rule  506  of  Regulation  D  of the Securities Act of 1933, as amended (the
"Act).  In  connection  with  such  private  offering, the investors were issued
12,500  warrants  (one  warrant  for  each  two  shares  purchased),  which  are
exercisable  at  $3.00  per  share  and  expire  July 31, 2004. The Company paid
commissions  to  NASD  broker-dealers in the amount of $3,750 and issued to such
persons 2,500 warrants, which are exercisable at $1.80 per share and expire July
31,  2004.

In  September 2001, the Company issued 20,000 shares of Series B Preferred Stock
to  accredited  investors  pursuant to Rule 506 of Regulation D of the Act.  The
Company  sold  such  shares  at  $10.00  per  share,  received gross proceeds of
$200,000 and paid brokerage commissions of $20,000 (resulting in net proceeds of
$180,000).  See  Part  I  -  Note  C.

During  the  third  quarter  ended September 30, 2001, the Company issued 12,000
shares  of  Common  Stock  to  an investor relations firm.  The sale was made in
reliance  on  Section  4(2)  of  the  Act.





                                      -15-

<PAGE>
                                   SIGNATURES
                                   ----------


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


                                     AMPLIDYNE,  INC.

Dated:  November  14, 2001
                                     By: /s/  Devendar  S.  Bains
                                         ------------------------
                                   Name:  Devendar S.  Bains
                                  Title:  Chief  Executive  Officer,
                                          Treasurer, Principal  Accounting
                                          Officer  and  Director










                                      -16-


<PAGE>