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

                       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 March 31, 2004


                         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
 incorporation or organization)                           Identification Number)




                       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 March 31, 2004, 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 March 31, 2004 and
              September 30, 2003

          b)  Consolidated Statements of Income for the three and six
              month periods ended March 31, 2004 and March 31, 2003;

          c)  Consolidated Statements of Cash Flows for the six months
              ended March 31, 2004 and March 31, 2003

          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>
                                                            MARCH 31,       SEPTEMBER 30,
                                                              2004              2003
                                                          ------------      ------------
                                                           (UNAUDITED)
<S>                                                       <C>               <C>
ASSETS
------
Current Assets
   Cash                                                   $     72,929      $    142,256
   Accounts Receivable, less reserve of
     $118,482 and $125,235, respectively                     1,269,229         1,303,293
   Prepaid Expenses                                             51,963                 0
   Inventory                                                 1,096,802         1,229,860
                                                          ------------      ------------
Total Current Assets                                         2,490,924         2,675,409
                                                          ------------      ------------

   Fixed Assets,net of Accumulated Depreciation
     of $490,682 and $495,715, respectively                    444,087           417,787
   Goodwill, net of $0 impairment                              400,766           400,766
   Other Assets and Investments                                 39,161            38,069
   Deferred Tax Asset                                          369,673           376,489
                                                          ------------      ------------

Total Assets                                              $  3,744,609      $  3,908,520
                                                          ============      ============


LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
   Accounts payable and accrued expenses                  $    709,544      $    760,134
   Short Term Debt                                             681,244           598,600
   Current Maturities of Long Term Debt                        149,708           179,597
   Notes Payable Shareholders                                   56,997            55,999
                                                          ------------      ------------
Total Current Liabilities                                    1,597,493         1,594,330
                                                          ------------      ------------

Long Term Debt
   Notes Payable, Banks                                        180,525           173,814
   Notes Payable Shareholders                                1,337,709         1,474,107
   Due to Affiliates                                           122,000           198,010
                                                          ------------      ------------
Total Long Term debt                                         1,640,234         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 March 31, 2004
      and September 30, 2003, respectively                      17,356            17,356
   Capital in excess of par value                            3,530,704         3,530,704
   Accumulated Deficit                                      (3,041,178)       (3,079,801)
                                                          ------------      ------------
Total Stockholders' Equity                                     506,882           468,259
                                                          ------------      ------------

Total Liabilities and Stockholders' Equity                $  3,744,609      $  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       SIX MONTHS      THREE MONTHS
                                                 ENDED             ENDED            ENDED       SIX MONTHS ENDED
                                            MARCH 31, 2004    MARCH 31, 2004   MARCH 31, 2003    MARCH 31, 2003
                                             ------------      ------------     ------------      ------------
                                              (UNAUDITED)       (UNAUDITED)      (UNAUDITED)       (UNAUDITED)
<S>                                          <C>               <C>              <C>               <C>
Sales                                        $  2,077,320      $  4,361,076     $  1,720,995      $  3,559,252
Cost of Sales                                   1,375,221         2,824,117        1,218,965         2,223,374
                                             ------------      ------------     ------------      ------------
   Gross Profit                                   702,099         1,536,959          502,030         1,335,878
                                             ------------      ------------     ------------      ------------
Costs of Products Sold
   Selling and administrative
   expenses                                        23,443            52,946           50,645            68,001
   Depreciation and amortization                   22,224            44,826           15,802            44,858
   Other costs and operating expenses             703,398         1,397,497          532,540         1,214,192
                                             ------------      ------------     ------------      ------------
Total Costs of Products Sold                      749,065         1,495,269          598,987         1,327,051
                                             ------------      ------------     ------------      ------------

Income (Loss) from operations                     (46,966)           41,690          (96,957)            8,827
Other Income:
   Interest Income
   Miscellaneous Other Income
   (Expense)                                        2,450             3,750            4,444            10,513
                                             ------------      ------------     ------------      ------------
Total Other Income                                  2,450             3,750            4,444            10,513
                                             ------------      ------------     ------------      ------------

Income before taxes                               (44,516)           45,440          (92,513)           19,340

Provision for income taxes                        (12,019)            6,816          (31,454)            6,576
                                             ------------      ------------     ------------      ------------

Net Income or (Loss)                         $    (32,497)     $     38,624     $    (61,059)     $     12,764
                                             ============      ============     ============      ============

Basic and diluted EPS:                              (0.00)             0.01            (0.01)             0.00

Weighted average number of common shares        7,184,872         7,184,872        7,184,872         7,184,872
</TABLE>

certain items reclassed for more accurate comparison


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


<TABLE><CAPTION>
                                                     SIX MONTHS ENDED  SIX MONTHS ENDED
                                                      MARCH 31, 2004    MARCH 31, 2003
                                                       ------------      ------------
                                                        (UNAUDITED)       (UNAUDITED)
<S>                                                    <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income From Operations                             $     38,623      $     12,764
Adjustments to reconcile net income:
     Depreciation                                            44,826            44,858
     Allowance for bad debt                                     611                 0
     Deferred Taxes                                           6,816           (29,287)
     (Increase) Decrease in Accounts Receivable              33,453           123,233
     Due from related parties
     (Increase) Decrease in Inventory                       133,058          (190,887)
     (Increase) Decrease in Prepaid                         (53,055)          115,060
     Increase (Decrease) in Accounts Payable                (50,590)         (192,850)
                                                       ------------      ------------

Net cash provided from (used in) operations                 153,742          (117,109)
                                                       ------------      ------------

CASH FLOW FROM INVESTING ACTIVITIES
     LT Asset (Purchases) Dispositions                      (71,125)          (12,548)
     Decrease in LT Deposits
                                                       ------------      ------------

Net cash from investing activities                          (71,125)          (12,548)
                                                       ------------      ------------

CASH FLOW FROM FINANCING ACTIVITIES
     Issuance of Common Stock
     Increase (Decrease) in ST debt                          82,644           (71,000)
     Proceeds (Payment) of LT debt                         (159,576)         (124,864)
     (Increase) Decrease in LT Investments
     Increase (Decrease) in due to related parties          (75,012)          295,814
                                                       ------------      ------------

Net cash provided by financing activities                  (151,944)           99,950
                                                       ------------      ------------

Net Increase (Decrease) in cash and equivalents             (69,327)          (29,707)
Cash and equivalents, beginning of period                   142,256           156,350
                                                       ------------      ------------
Cash and equivalents, end of period                    $     72,929      $    126,643
                                                       ============      ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Cash paid for interest                            $     25,378      $     27,137
</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 March 31, 2004 and for the six
months ended March 31, 2004 and March 31, 2003, have been made. Certain accounts
have been reclassified for clearer reporting. The results of operations for the
period ended March 31, 2004 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

<PAGE>

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.

    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.
Segment information for the six months ended March 31, 2004 is:


                                                Builder's
                                     Connect    Lighting &
                       Gulf Coast    Source     Hardware    All Other    Totals
                       ---------------------------------------------------------

Revenues - External     1,527,410   1,338,037   1,495,629              4,361,076
Intersegment revenue       75,000                                         75,000
Cost of Goods Sold      1,010,319     884,704     929,094              2,824,117
Depreciation               21,461      14,263                  9,102      44,826
Interest Expense              238      11,414       9,646      4,080      25,378
Segment profit            -20,850      37,595      11,496     10,383      38,624
Segment Assets            909,646   1,014,237   1,325,629    495,097   3,744,609
Asset Expenditure          23,408      27,967      19,750          0      71,125

<PAGE>

Reconciliation

Revenues
Revenues - Segments         4,436,076
Intersegment                  -75,000
                           ----------
Consolidated revenue        4,361,076
                           ==========

Profit or Loss
Profit - Segments              28,241
Profit - Other                 10,383
                           ----------
Consolidated Net Income        38,624
                           ==========

Assets
Assets - Segments           3,249,512
Assets- Other                 495,097
                           ----------
Consolidated Assets         3,744,609
                           ==========

Asset Expenditure
Segment                        71,125
Other                               0
                           ----------
                               71,125
                           ==========

Interest revenue is an immaterial item. "Profit-Other" in the amount of $10,383
consists of deferred tax expense in the amount of $6,816 and various headquarter
expense reimbursements, neither of which was allocated down to the segments.
"Other Assets" in the amount of $495,097 consists of deferred tax asset in the
amount of $369,673, 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 March 31, 2004, 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
May 12, 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.

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.
During the quarter ended March 31, 2004, the Company's Connect Source division
increased the number of residential dwellings for which it provides security
monitoring services by 17% compared to the previous quarter. Gross revenue from
monitoring services remains an immaterial item to the Company's financial
results as a whole; however, management is reasonably optimistic that monitoring
services will provide a profitable growth opportunity in the future.

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 began receiving its first shipments of the cabling during the
quarter ended March 31, 2004.

<PAGE>

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 three and six month periods ended March 31, 2004 were
$2,077,320 and $4,361,076, respectively compared to $1,720,995 and $3,559,252,
respectively, for the three and six month periods ended March 31, 2003. The
increase in revenue is attributable to the Connect Source division, whose
revenues were $1,338,037 for the six months ended March 31, 2004, compared to
$565,120 for the six months ended March 31, 2003. Cost of Sales for the three
and six month periods ended March 31, 2004 were $1,375,221 and 2,824,117,
respectively, compared to $1,218,965 and 2,223,375, respectively, for the three
and six month periods ended March 31, 2003. Gross profit, as a percentage of
Sales, for the three and six month periods ended March 31, 2004 was 33.8% and
35.2%, respectively, compared to 29% and 37.53%, respectively, for the three and
six month periods ended March 31, 2003. Costs related to selling and general and
administrative increased to $749,065 for the quarter ended March 31, 2004
compared to $598,987 for the quarter ended March 31, 2003. Virtually all of the
growth in general and administrative expenses is attributable to the growth of
the Connect Source division.

For the quarter ended March 31,2004, the Company reported a net loss of
($32,497) compared to a net loss of ($61,059) for the quarter ended March 31,
2003. The Company's second fiscal quarter, spanning the winter months when
construction activity experiences a seasonal lull, historically produces poorer
financial results compared to the Company's remaining fiscal quarters. The Gulf
Coast fan division continues to face competitive pressures in the multi-family
housing market. The Company continues to pursue legal action against one of its
ceiling fan competitors alleging illegal use of the Company's trade secrets,
trademarks, and copyrights. Net cash flow for the six months ended March 31,
2004 was ($69,327) compared to ($29,707) for the six months ended March 31,
2003.