================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                   FORM 10-QSB

                Quarterly Report Pursuant to Section 13 or 15(d)
                     of The Securities Exchange Act of 1934

                For the Quarterly Period Ended December 31, 2003

                         Commission File Number 0-18515



                            SPECTRASOURCE CORPORATION
--------------------------------------------------------------------------------
             (Exact Name of Registrant as specified in its charter)


                 NEVADA                                93-0960302
   ---------------------------------          ------------------------------
    (State or other jurisdiction of         (IRS Employer Identification Number)
     incorporation or organization)


                       14900 Westheimer Houston, TX 77082
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)


         Company's telephone number, including area code: (713) 783-0443


Indicate by check mark whether the Company: (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the Company was required to
file such reports); and (2) has been subject to such filing requirements for the
past ninety (90) days; Yes (X) No ()

As of December 31, 2003, there were 7,184,872 shares of ($0.001) par value
Common Stock (the Company's only class of voting stock) outstanding.


================================================================================
<PAGE>
                         ==============================

                                   FORM 10-QSB

                            SPECTRASOURCE CORPORATION

                                TABLE OF CONTENTS



PART I      Financial Information

Item  1.    Financial Statements (Unaudited)

            a)    Consolidated Balance Sheets at December 31, 2003 and September
                  30, 2002

            b)    Consolidated Statements of Income for the three months ended
                  December 31, 2003 and December 31, 2002

            c)    Consolidated Statements of Cash Flows for the three months
                  ended December 31, 2003 and December 31, 2002

            d)    Notes to Consolidated Financial Statements

            e)    Accountant's Review Report



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




Part II     Other Information

Item 6      (31)  Section 302 Certifications

                  31.1 Section 302 Certification.

                  31.2 Section 302 Certification.


            (32)  Section 906 Certification

                  32.1 Section 906 Certification.




SIGNATURES






                        ==============================
<PAGE>
PART I      FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS (UNAUDITED)


                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET

<TABLE><CAPTION>
                                                          DECEMBER 31,      SEPTEMBER 30,
                                                              2003              2003
                                                          ------------      ------------
                                                           (UNAUDITED)
<S>                                                       <C>               <C>
Assets
     Current Assets
        Cash                                              $    201,137      $    142,256
        Accounts Receivable, less reserve of
          $118,482 and $125,235, respectively                1,445,294         1,303,293
        Prepaid Expenses                                             0                 0
        Inventory                                            1,016,557         1,229,860
                                                          ------------      ------------
     Total Current Assets                                    2,662,989         2,675,409
                                                          ------------      ------------

        Fixed Assets,net of Accumulated Depreciation
          of $502,350 and $495,715, respectively               392,773           417,787
        Goodwill, net of $0 impairment                         399,097           400,766
        Other Assets and Investments                            23,441            38,069
        Deferred Tax Asset                                     357,654           376,489
                                                          ------------      ------------
Total Assets                                              $  3,835,953      $  3,908,520
                                                          ============      ============


Liabilities and Stockholders' Equity
     Current Liabilities
        Accounts payable and accrued expenses             $    749,223      $    760,134
        Short Term Debt                                        626,844           598,600
        Current Maturities of Long Term Debt                   142,000           179,597
        Notes Payable Shareholders                              42,499            55,999
                                                          ------------      ------------
     Total Current Liabilities                               1,560,566         1,594,330
                                                          ------------      ------------

     Long Term Debt
        Notes Payable, Banks                                   174,300           173,814
        Notes Payable, Shareholders                          1,364,707         1,474,107
        Due to Affiliates                                      197,000           198,010
                                                          ------------      ------------
     Total Long Term debt                                    1,736,007         1,845,931
                                                          ------------      ------------

     Stockholders' Equity (Deficit)

        Common stock, $.001 par value, 10,000,000
          shares authorized, with 7,184,872 shares
          issued and outstanding at December 31, 2003
          and September 30, 2003, respectively                  17,356            17,356
        Capital in excess of par value                       3,530,704         3,530,704
        Accumulated Deficit                                 (3,008,680)       (3,079,801)
                                                          ------------      ------------
     Total Stockholders' Equity                                539,380           468,259
                                                          ------------      ------------
Total Liabilities and Stockholders' Equity                $  3,835,953      $  3,908,520
                                                          ============      ============
</TABLE>



        See Notes to Financial Statements and Accountant's Review Report
<PAGE>
                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF INCOME (LOSS)


<TABLE><CAPTION>
                                                      THREE MONTHS ENDED   THREE MONTHS ENDED
                                                         DECEMBER 31,         DECEMBER 31,
                                                             2003                 2002
                                                         ------------         ------------
<S>                                                      <C>                  <C>
Sales                                                    $  2,283,756         $  1,838,257
Cost of Sales                                               1,448,896            1,004,409
                                                         ------------         ------------
     Gross Profit                                             834,860              833,848
                                                         ------------         ------------

Costs of Products Sold
     Selling and administrative expenses                       29,503               17,356
     Depreciation and amortization                             22,602               29,056
     Other costs and operating expenses                       694,099              681,652
                                                         ------------         ------------
Total Costs of Products Sold                                  746,204              728,064
                                                         ------------         ------------

Income (Loss) from operations                                  88,656              105,784

Other Income:
     Interest Income                                                0
     Miscellaneous Other Income (Expense)                       1,300                6,069
                                                         ------------         ------------
Total Other Income                                              1,300                6,069
                                                         ------------         ------------

Income before taxes                                            89,956              111,853

Provision for income taxes                                     18,835               38,030
                                                         ------------         ------------

Net Income or (Loss)                                     $     71,121         $     73,823
                                                         ============         ============


Basic and diluted EPS:                                           0.01                 0.01

Weighted average number of common shares                    7,184,872            7,184,872

certain items reclassed for more accurate comparison
</TABLE>


        See Notes to Financial Statements and Accountant's Review Report
<PAGE>
                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED STATEMENT OF CASH FLOW



<TABLE><CAPTION>
                                                    THREE MONTHS ENDED   THREE MONTHS ENDED
                                                       DECEMBER 31,         DECEMBER 31,
                                                           2003                 2002
                                                       ------------         ------------
<S>                                                    <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income From Operations                             $     71,121         $     73,903
Adjustments to reconcile net income:
     Depreciation                                            22,602               23,776
     Allowance for bad debt                                     611                4,403
     Deferred Taxes                                          18,835               31,672
     (Increase) Decrease in Accounts Receivable            (142,612)              45,832
     Due from related parties
     (Increase) Decrease in Inventory                       213,303             (128,023)
     (Increase) Decrease in Prepaid                          14,628              (53,033)
     Increase (Decrease) in Accounts Payable                (10,911)             173,165
                                                       ------------         ------------

Net cash provided from (used in) operations                 187,577              171,695
                                                       ------------         ------------

CASH FLOW FROM INVESTING ACTIVITIES
     LT Asset (Purchases) Dispositions                        4,081               (3,639)
     Decrease in LT Deposits
                                                       ------------         ------------

Net cash from investing activities                            4,081               (3,639)
                                                       ------------         ------------

CASH FLOW FROM FINANCING ACTIVITIES
     Issuance of Common Stock
     Increase (Decrease) in ST debt                          28,244              (97,967)
     Proceeds (Payment) of LT debt                         (146,511)             (46,728)
     (Increase) Decrease in LT Investments
     Increase (Decrease) in due to related parties          (14,510)              16,098
                                                       ------------         ------------

Net cash provided by financing activities                  (132,777)            (128,597)
                                                       ------------         ------------

Net Increase (Decrease) in cash and equivalents              58,881               39,459
Cash and equivalents, beginning of period                   142,256              165,414
                                                       ------------         ------------
Cash and equivalents, end of period                    $    201,137         $    204,873
                                                       ============         ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

     Cash paid for interest                            $     15,306         $     14,035
</TABLE>


        See Notes to Financial Statements and Accountant's Review Report
<PAGE>
                            SPECTRASOURCE CORPORATION
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    BASIS OF PRESENTATION
The accompanying interim financial statements have been prepared by the Company,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. These consolidated financial statements should be read in
conjunction with the financial statements and the notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended September 30, 2003.

In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations, and cash flows as of December 31, 2003 and for the three
months ended December 31, 2003 and December 31, 2002, have been made. Certain
accounts have been reclassified for clearer reporting. The results of operations
for the period ended December 31, 2003 are not necessarily indicative of the
operating results for the full year.

    PRINCIPLES OF CONSOLIDATIONS
The consolidated financial statements include the accounts of the Company and
its subsidiaries after elimination of all significant inter-company
Transactions.

    USE OF ESTIMATES
The preparation of these financial statements requires the use of certain
estimates by management in determining the Company's' consolidated assets,
liabilities, revenues and expenses. Actual results could differ from those
estimates.

    CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of highly liquid investments that are readily
convertible into cash and have a maturity of three months or less.

    REVENUE RECOGNITION
Revenue from product sales is recognized as risk and title to the product
transfer to the customer, which usually occurs when shipment, delivery, or
installation, whichever is applicable, is made. The Company accrues for
allowances for doubtful accounts based on its experience.

    INVENTORIES
Inventories are carried at the lower of cost or market, using average cost.
Materials and supplies are valued using the average cost method.

    PROPERTY AND EQUIPMENT
Property and equipment is stated at cost less accumulated depreciation. Property
and equipment is depreciated on the straight-line method over their estimated
useful lives, which in the opinion of management is adequate to allocate the
cost of the property and equipment over their estimated useful lives.
Expenditures for renewals, replacements, and betterments are capitalized.
Maintenance and repairs are charged to operating expenses as incurred. Upon sale
or other disposition, the applicable amounts of asset cost and accumulated
depreciation are removed from the accounts and the net amount, less proceeds
from disposal, is charged against or credited to income.
<PAGE>
    GOODWILL
Goodwill represents the excess of purchase price paid over the value assigned to
the net tangible and identifiable intangible assets of a business acquired. As
described below under Recent Accounting Standards, no amortization of goodwill
has been recorded; instead, goodwill will be reviewed for impairment based on
fair values.

    DEFERRED SOFTWARE COSTS
Costs to purchase and to develop software for internal use are deferred and
amortized on a straight-line basis over 5 years.

    INCOME TAXES
The Company follows the asset and liability approach to account for deferred
income taxes. Under this method, deferred taxes are recognized for temporary
differences between the book and tax basis of assets and liabilities. These
temporary differences are measured using the applicable enacted tax rates and
provisions of the enacted tax laws. Valuation allowances are provided against
deferred tax assets when it is more likely than not that some portion or all of
the deferred tax asset will not be realized.

    COMPREHENSIVE INCOME
Financial Accounting Standards Board ("FASB") Statement No. 130, "Reporting
Comprehensive Income", became effective for fiscal years beginning after
December 15, 1997, and establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses)
in a full set of general-purpose financial statements. This Statement requires
that all items that are required to be recognized under accounting standards as
components of comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements. The Company
had no comprehensive income other than net income during the periods included in
the accompanying financial statements.

    EARNINGS PER COMMON SHARE
Earnings per common share is computed by dividing net income by the weighted
average number of common shares outstanding during the year.

    RECENT ACCOUNTING PRONOUNCEMENTS
In October, 2003, the FASB issued SFAS No. 147, ACQUISITIONS OF CERTAIN
FINANCIAL INSTITUTIONS--AN AMENDMENT OF FASB STATEMENTS NO. 72 AND 144 AND FASB
INTERPRETATION NO. 9, relating to required methods of accounting applicable in
the acquisition of financial institutions. This statement has no impact on the
Company.

In December 2002, the FASB issued Statement No. 148, "ACCOUNTING FOR STOCK-BASED
COMPENSATION-TRANSITION AND DISCLOSURE." This statement amends Statement No.
123, Accounting for Stock-Based Compensation, to provide alternative methods of
transition for an entity that voluntarily changes to the fair value method of
accounting for stock-based employee compensation. It also amends the disclosure
provisions of Statement No. 123 to require prominent disclosure about the
effects on reported net income of an entity's accounting policy decisions with
respect to stock-based employee compensation. Statement No. 148 also requires
<PAGE>
disclosure about those effects in interim financial information. The Company
adopted the disclosure requirements of Statement No. 148 in the accompanying
financial statements.

In April 2003, the FASB issued Statement No. 149, AMENDMENT OF STATEMENT 133 ON
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This Statement amends and
clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts
(collectively referred to as derivatives) and for hedging activities under FASB
Statement No. 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES.
This Statement is effective for contracts entered into or modified after June
30, 2003. The Company does not expect adoption of SFAS No. 149 to have a
material impact on its consolidated financial statements.

In May 2003 the FASB issued SFAS No. 150, "ACCOUNTING FOR CERTAIN FINANCIAL
INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABILITIES AND EQUITY", which requires
that certain financial instruments be presented as liabilities that were
previously presented as equity or as temporary equity. Such instruments include
mandatory redeemable preferred and common stock, and certain options and
warrants. SFAS 150 is effective for financial instruments entered into or
modified after May 31, 2003, and is generally effective at the beginning of the
first interim period beginning after June 15, 2003. This standard has been
adopted and has had no impact on the Company.

NOTE 2. SEGMENT INFORMATION

The Company identifies its segments based on differences in products and
services, as follows:

Gulf Coast Fan & Light, Inc. - ceiling fans systems for the residential and
commercial building market.

Connect Source Communications, Inc. -cabling, wiring, and network systems for
the residential and commercial building market. Security monitoring.

Builders Lighting & Hardware, Inc. - residential and commercial lighting and
hardware fixtures.

The segments are managed as one business unit, utilizing the same sales force,
customer service force, operations management, and headquarter support staff.

<TABLE><CAPTION>
                                                             BUILDER'S
                                               CONNECT       LIGHTING &
                             GULF COAST        SOURCE         HARDWARE        ALL OTHER        TOTALS
                            ------------    ------------    ------------    ------------    ------------
<S>                         <C>             <C>             <C>             <C>             <C>
Revenues - External              801,152         650,120         832,484                       2,283,756
Intersegment revenue              75,000                                                          75,000
Cost of Goods Sold               444,543         471,890         532,463                       1,448,896
Depreciation                      10,519           8,013                           4,070          22,602
Interest Expense                     117            7645           5,928           1,616          15,306
Segment profit                    43,745          18,221          14,835          (5,680)         71,121
Segment Assets                 1,058,850       1,022,007       1,360,720         394,376       3,835,953
Asset Expenditure                      0               0               0               0               0
</TABLE>
<PAGE>
<TABLE><CAPTION>
<S>                         <C>
Reconciliation
--------------
Revenues
Revenues - Segments            2,358,741
Intersegment                     (75,000)
                            ------------
Consolidated revenue           2,283,756
                            ============

Profit or Loss
--------------
Profit - Segments                 76,801
Loss - Other                      (5,680)
                            ------------
Consolidated Net Income           71,121
                            ============

Assets
------
Assets - Segments              3,441,577
Assets - Other                   394,376
                            ------------
Consolidated Assets            3,835,953
                            ============

Asset Expenditure
-----------------
Segment                                0
Other                                  0
                            ------------
                                       0
                            ============
</TABLE>



Interest revenue is an immaterial item. "Other Losses" in the amount of $5,680
consists of deferred tax expense in the amount of $18,835 and various
headquarter expense reimbursements, neither of which was allocated down to the
segments. "Other Assets" in the amount of $394,376 consists of deferred tax
asset in the amount of $357,654, which is not allocated to the segments, and
leasehold improvements and capitalized software at the headquarter level.
<PAGE>

ACCOUNTANT'S REPORT

To The Board of Directors and Stockholders of
SpectraSource Corporation

We have reviewed the accompanying balance sheet of SpectraSource Corporation, a
Nevada corporation, as of December 31, 2002, and the related statements of
income, retained earnings, and cash flows for the quarter then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountant's. All
information included in these financial statements is the representation of the
management of SpectraSource Corporation.

A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with generally accepted accounting principles.



/s/ Eric C. Yartz, C.P.A.

Houston, Texas
February 10, 2004
<PAGE>
ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS.

Certain statements contained in this Quarterly Report on Form 10-QSB, including,
without limitation, statements containing the words "believes", "anticipates",
"estimates", "expects", "projections", and words of similar import, constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned not to put undue reliance
on forward-looking statements. All forward-looking statements are made as of the
date hereof and are based on information available to the parties as of such
date. The Company does not undertake any obligation to update any
forward-looking statements to reflect events or circumstances after the date of
this Form 10-QSB. It is important to note that actual outcome and the actual
results could differ materially from those in such forward-looking statements.
Factors that could cause actual results to differ materially include risks and
uncertainties such as future economic conditions, corporate and marketplace
changes, all as more fully described in the Company's Report on Form 10-KSB for
the period ended September 30, 2003 under Management's Discussion and Analysis
of Financial Conditions and Results of Operations "Assumptions Underlying
Certain Forward-Looking Statements and Factors that May Affect Future Results"
and elsewhere from time to time in the Company's other SEC reports.

Plan of Operations
------------------

The Company is a leading provider of ceiling fans, lighting and electrical
components, structured cabling and wiring, and hardware to the Texas and Gulf
Coast residential and commercial construction markets. Its customers are largely
residential and multi-family developers and builders who purchase ceiling fans,
lighting fixtures, entry hardware, structured wiring, and the installation of
these products from the Company during the construction of the dwellings. The
Company also provides security monitoring services.


The Company's is focusing on several business objectives over the next several
quarters that leverage off of the Company's existing infrastructure, customer
base, and vendor relationships. If successful, the initiatives are anticipated
to increase net income without significant capital expenditure or start-up
expenses. First, the Company continues to increase its market share in the
structured wiring segment. During the quarter ended December 31, 2003, the
Company received a commitment to be the sole source provider of structured
wiring, and the corollary security monitoring services, for a 3,000 home planned
development. As is industry practice, such commitment is non-binding.
Optimization of this opportunity depends on the successful development and
marketing of the planned development, a factor over which the Company has no
control, and the Company's ability to perform to the continuing satisfaction of
the developer and ultimate homeowner. Potentially, this opportunity could
generate $3,000,000 of gross revenue for the structured wiring segment over the
next four years, and, further, generate in excess of $400,000 of net cash flow
per year from residential security monitoring. Second, the Company intends to
replicate, in the lighting division, the customer service process improvements
successfully implemented in the hardware division. The improved customer
satisfaction gained from the process improvements, and resulting repeat orders
from these customers, was the significant factor in the hardware division
increasing its gross revenue from $1.2 million in fiscal year ended September
<PAGE>
30, 2002 to $1.8 million in fiscal year ended September 30, 2003, and to
$518,000 for the quarter ended December 31, 2003. The Company hopes to achieve
similar results in the lighting division. Third, during the quarter ended
December 31, 2003, the Company engaged a contract manufacturer to produce a
significant percentage of the wire and cabling used in the Company's structured
cabling segment. This arrangement is expected to reduce the cost of these
materials by 33%. The Company intends to optimize this arrangement by
wholesaling wire and cabling to other wholesalers and end users.

The Company continues its efforts to leverage the customer base of its various
segments to maximize cross selling opportunities of bundled packages of
lighting, fans, hardware, and structured cabling to residential developer
customers of the Company's segments.

The Company does not anticipate the need to raise additional funds in the next
twelve months.

The Company anticipates no substantial performance of product research and
development, purchases of significant equipment, or significant changes in the
number of employees over the next twelve months.

Financial Results
-----------------

Gross revenues for the quarter ended December 31, 2003 were $2,283,756 compared
to $1,838,257 for the quarter ended December 31, 2002. The increase in revenue
is related to continuing growth in the structured wiring and cabling segment.
Cost of Sales was $1,448,896 for the quarter ended December 31, 2003 compared to
$1,004,409 for the quarter ended December 31, 2002. Gross profit, as a
percentage of Sales, was 36.5% for the quarter ended December 31, 2003 compared
to 45% for the quarter ended December 31, 2002. The decrease in gross profit
percentage is due to higher than anticipated costs in the structured wiring
segment relating to the expense of providing warranty work and to materials
cost. Cost reduction initiatives related to both of these issues undertaken by
the Company during the quarter ended December 31, 2003 is expected to generate
higher gross profit margins in the structured wiring segment starting in the
second quarter. Costs related to selling and general and administrative remained
relatively flat at $746,204 for the quarter ended December 31, 2003 compared to
$728,064 for the quarter ended December 31, 2002.

For the quarter ended December 31, 2003, the Company reported net income of
$71,121 compared to net income of 73,823 for the quarter ended December 31,
2002. Net income before tax for the hardware division increased to $72,899 for
the quarter ended December 31, 2003 compared to a loss of ($11,816) for the
quarter ended December 31, 2002, reflecting improvements in the Company's
customer service processes. Net income for the fan segment decreased to $45,968
for the quarter ended December 31, 2003 compared to $163,892 for the quarter
ended December 31, 2002, reflecting tightened profitability conditions in the
multi-family residential market. The remaining segments experienced relatively
stable results. Net cash flow for the quarter ended December 31, 2003 was
$58,881 compared to $16,909 for the quarter ended December 31, 2002. Net cash
provided by operations in the amount of $187,577 was used substantially to pay
scheduled retirements of long-term debt in the amount of $146,511. Long term
debt relates to purchase notes on the Company's service truck fleet and purchase
notes for the acquisition of Home Structure Sound.
<PAGE>
PART II. OTHER INFORMATION

Item 6.  Exhibits

         31.1   Certification of CEO pursuant to Section 302 of Sarbanes
                Oxley Act.

         31.2   Certification of CFO pursuant to Section 302 of Sarbanes
                Oxley Act.

         32.1   Certification of CEO and CFO pursuant to Section 906 of
                Sarbanes Oxley Act.





SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report on Form 10-QSB to be signed on its behalf by the undersigned,
thereunto duly authorized.


SPECTRASOURCE CORPORATION

By: /s/ CHARLES SHEFFIELD
    ---------------------------------------------------------------
        Charles Sheffield, Chief Executive Officer,
        President and Director