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                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549



                                   FORM 10-QSB



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


                  FOR THE QUARTERLY PERIOD ENDED MARCH 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
 incorporation or organization)                       Identification Number)


                            14900 WESTHEIMER, SUITE X
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)



         Company's telephone number, including area code: (281) 558-3032



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

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

                                   FORM 10-QSB

                            SPECTRASOURCE CORPORATION

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



                                TABLE OF CONTENTS



PART I      FINANCIAL INFORMATION

Item  1.    Financial Statements

            a)    Consolidated Balance Sheets at March 31, 2003 (Unaudited) and
                  September 30, 2002

            b)    Consolidated Statements of Income for the three and six month
                  periods ended March 31, 2003 (Unaudited), and March 31, 2002.

            c)    Consolidated Statements of Cash Flows for the six months ended
                  March 31, 2003 and March 31, 2002 (Unaudited).

            d)    Notes to Consolidated Financial Statements


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



PART II     OTHER INFORMATION

Item  1.    Legal Proceedings

Item  6.    Exhibits

            (a)   99.1  Certification of Periodic Financial Reports

            (b)   99.2  Certification of Chief Executive Officer

            (c)   99.3  Certification of Chief Financial Officer



SIGNATURES



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



                                        2
<PAGE>
PART I      FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS (UNAUDITED)

                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET



<TABLE><CAPTION>
                                                                       March 31,       September 30,
                                                                         2003              2002
                                                                     ------------      ------------
                                                                      (UNAUDITED)
<S>                                                                  <C>               <C>
ASSETS

   Current Assets
      Cash .....................................................     $    126,643      $    156,350
      Accounts Receivable, less reserve of $125,235 and $125,235          933,989         1,057,222
      Prepaid Expenses .........................................           18,341           115,954
      Inventory ................................................        1,325,129         1,134,242
                                                                     ------------      ------------
   Total Current Assets ........................................        2,404,102         2,463,768
                                                                     ------------      ------------
      Fixed Assets, net of Accum. Dep. of $436,762 and $399,878.          418,758           451,069
      Goodwill, net of $0 impairment ...........................          400,767           400,767
      Other Assets and Investments .............................           13,369            30,816
      Deferred Tax Asset .......................................          371,530           342,243
                                                                     ------------      ------------
Total Assets ...................................................     $  3,608,526      $  3,688,663
                                                                     ============      ============

LIABILITIES AND STOCKHOLDERS' EQUITY

   Current Liabilities
      Accounts payable and accrued expenses ....................     $    399,354      $    592,204
      Short Term Debt ..........................................          735,600           806,600
      Current Maturities of Long Term Debt .....................          154,981           141,017
      Due To Affiliates ........................................          452,243           156,430
                                                                     ------------      ------------
   Total Current Liabilities ...................................        1,742,178         1,696,251
                                                                     ------------      ------------

   Long Term Debt
      Notes Payable, Banks .....................................           38,361            12,207
      Notes Payable, Related Parties ...........................        1,357,566         1,522,548
      Commitments and Contingencies ............................               --                --
                                                                     ------------      ------------
   Total Long Term debt ........................................        1,395,927         1,534,755
                                                                     ------------      ------------

   Stockholders' Equity (Deficit)

      Common stock, $.001 par value, 10,000,000 shares
         authorized, and 7,184,872 shares issued and
         outstanding at March 31, 2003 and September 30,
         2002, respectively ....................................           17,356            17,356
      Capital in excess of par value ...........................        3,530,704         3,530,704
      Accumulated Deficit ......................................       (3,077,639)       (3,090,403)
                                                                     ------------      ------------
   Total Stockholders' Equity ..................................          470,421           457,657
                                                                     ------------      ------------
Total Liabilities and Stockholders' Equity .....................     $  3,608,526      $  3,688,663
                                                                     ============      ============
</TABLE>

                 See Notes to Consolidated Financial Statements

                                        3
<PAGE>
                   SPECTRASOURCE CORPORATION AND SUBSIDIARIES
                             CONSOLIDATED INCOME SHEET



<TABLE><CAPTION>
                                               THREE MONTHS       SIX MONTHS       THREE MONTHS       SIX MONTHS
                                                  ENDED             ENDED             ENDED             ENDED
                                              MARCH 31, 2003    MARCH 31, 2003    MARCH 31, 2002    MARCH 31, 2002
                                               ------------      ------------      ------------      ------------
<S>                                            <C>               <C>               <C>               <C>
Sales .....................................    $  1,720,995      $  3,559,252      $  1,485,527      $  3,176,530
Cost of Sales .............................       1,218,965         2,223,374           668,048         1,800,009
                                               ------------      ------------      ------------      ------------
      Gross Profit ........................         502,030         1,335,878           817,479         1,376,521
                                               ------------      ------------      ------------      ------------

Costs of Products Sold
      Selling and administrative expenses..          50,645            68,001            14,208            37,070
      Depreciation and amortization .......          15,802            44,858            20,138            43,914
      Other costs and operating expenses...         532,540         1,214,192           766,486         1,174,692
                                               ------------      ------------      ------------      ------------
Total Costs of Products Sold ..............         598,987         1,327,051           800,832         1,255,676
                                               ------------      ------------      ------------      ------------

Income (Loss) from operations .............         (96,957)            8,827            16,647           120,845
Other Income:
      Interest Income .....................               0                 0                 0                45
      Miscellaneous Other Income (Expense).           4,444            10,513                 0             1,331
                                               ------------      ------------      ------------      ------------
Total Other Income ........................           4,444            10,513                 0             1,376
                                               ------------      ------------      ------------      ------------

Income before taxes .......................         (92,513)           19,340            16,647           122,221

Provision for income taxes ................         (31,454)            6,576             5,361            37,033
                                               ------------      ------------      ------------      ------------

Net Income or (Loss) ......................    $    (61,059)     $     12,764      $     11,286      $     85,188
                                               ============      ============      ============      ============

Basic earnings (loss) per common share: ...           (0.01)             0.00              0.00              0.01

Weighted average number of common shares...       7,184,872         7,184,872         6,015,850         6,015,850
</TABLE>

                      See Notes to Consolidated Statements

                                        4
<PAGE>
                            SPECTRASOURCE CORPORATION
                       CONSOLIDATED STATEMENT OF CASH FLOW



<TABLE><CAPTION>
                                                      SIX MONTHS        SIX MONTHS
                                                        ENDED             ENDED
                                                    March 31, 2003    March 31, 2002
                                                     ------------      ------------
                                                      (UNAUDITED)       (UNAUDITED)
<S>                                                  <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income From Operations .....................     $     12,764      $     85,188
Adjustments to reconcile net income:
    Depreciation ...............................           44,858            43,914
    Allowance for bad debt .....................                0             4,403
    Deferred Taxes .............................          (29,287)           37,033
    Decrease in Accounts Receivable ............          123,233           101,428
    Due from related parties (Increase) in
       Inventory ...............................         (190,887)         (268,941)
    (Increase) Decrease in Prepaid .............          115,060           (36,193)
    Increase (Decrease) in Accounts Payable ....         (192,850)          142,050
                                                     ------------      ------------
Net cash provided from (used in) operations ....         (117,109)          108,882
                                                     ------------      ------------

CASH FLOW FROM INVESTING ACTIVITIES
    Equipment purchases ........................          (12,548)          (55,862)

Net cash from investing activities .............          (12,548)          (55,862)
                                                     ------------      ------------

CASH FLOW FROM FINANCING ACTIVITIES
    Payments on Short Term debt ................          (71,000)          (82,103)
    Payments on Long Term debt .................         (124,864)          (14,033)
    Increase in Due to Affiliates ..............          295,814            14,098
                                                     ------------      ------------
Net cash provided by financing activities ......           99,950           (82,038)
                                                     ------------      ------------

Net (Decrease) in cash and equivalents .........          (29,707)          (29,018)
Cash and equivalents, beginning of period ......          156,350           165,414
                                                     ------------      ------------
Cash and equivalents, end of period ............     $    126,643      $    136,385
                                                     ============      ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
    Cash paid for interest .....................     $     27,137      $     30,737
</TABLE>



                 See Notes to Consolidated Financial Statements.

                                        5
<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-K for the year ended September 30, 2002.

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, 2003 and for the six
months ended March 31, 2003 and March 31, 2002, have been made. The results of
operations for the period ended March 31, 2003 are not necessarily indicative of
the operating results for the full year.

        PRINCIPLES OF CONSOLIDATION
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
The Company recognizes revenue at the time of sale. The Company reserves
allowances for doubtful accounts based on its collections experience.

        INVENTORIES
Inventories are carried at the lower of cost, on a first-in first-out basis, or
market.

        PROPERTY AND EQUIPMENT
Property and equipment is stated at cost less accumulated depreciation. Property
and equipment is depreciated on an accelerated depreciation 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.

                                        6
<PAGE>
        INCOME TAXES
The Company follows the asset and liability approach to account for 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.

        COMPREHENSIVE INCOME
Financial Accounting Standards Board ("FASB") Statement No. 130, "Reporting
Comprehensive Income", became effective for fiscal years beginning after March
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 June 1998, the FASB issued Statement of Financial Accounting Standards No.
133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133").
SFAS 133, as amended, establishes accounting and reporting standards for
derivative instruments and hedging activities. It requires an entity to
recognize all derivatives as either assets or liabilities on the balance sheet
and measure those instruments at fair value. Management does not expect the
pronouncement to have a material effect on the Company's financial statements in
the near future.

In June 2001, the Financial Accounting Standards Board ("FASB") issued SFAS No.
141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible
Assets, effective January 1, 2002. SFAS No. 141 is effective for business
combinations initiated after June 30, 2001 and has no effect on the Company.
SFAS No. 142 prescribes discontinuance of the amortization of goodwill as well
as annual review of goodwill for impairment. The Company does not expect the
implementation of SFAS No. 142 to result in any impairment of goodwill.

In June 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations. In October 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets. Adoption of SFAS No. 143 and SFAS
No. 144 is not expected to have a material effect on the consolidated financial
statements of the Company.

In April 2002, the FASB issued SFAS No. 145, RESCISSION OF FASB STATEMENTS NO.
4, 44, AND 64, AMENDMENT OF FASB STATEMENT NO. 13, AND TECHNICAL CORRECTIONS.
Application of the statement will be required in 2003. The Company does not
expect the implementation of SFAS No. 145 to have a material effect on the
financial statements of the Company.

In July 2002, the FASB issued SFAS No. 146, ACCOUNTING FOR EXIT OR DISPOSAL
ACTIVITIES. SFAS No. 146 addresses the recognition, measurement, and reporting
of costs associated with exit and disposal activities, including restructuring
activities and facility closings. SFAS No. 146 will be effective for activities
initiated after December 31, 2002. The Company does not expect adoption of SFAS
No. 146 to have a material impact on its consolidated financial statements

                                        7
<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, 2002 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 reseller and installer of lighting components, premium
ceiling fans, advanced wiring, home networks, and hardware to the residential
and commercial construction markets. Over the next twelve months, the Company
expects to focus on its nationwide expansion program by leveraging the customer
base of its long established Texas divisions. These divisions currently sell to
most of the major builders in its market, many of whom have national operations.

With the possible exception of raising funds for expansion purposes, 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
-----------------

For the three and six month periods ended March 31, 2003, the Company reported
net income (loss) of ($61,059) and $12,764, respectively, compared to net income
of $11,286 and $85,188 for the respective three and six month periods ended
March 31, 2002. The second quarter time period covers the seasonal slowdown in
the residential construction industry and is historically the Company's most
challenging quarter, financially. The net loss for the quarter ended March 31,
2003 is generally attributable to a slowdown in multi-family residential
construction and to reduced demand for high-end lighting components, a result of
the generally soft economy. In addition, during the quarter ended March 31,
2003, the Company incurred approximately $80,000 relating to advertising and to
the hiring and training of new employees in the structured wire and cabling
division to meet the growth needs of this line of business. The demand for the
Company's ceiling fan products remains strong, although profit margins have been
slightly impacted by increased competition in the market. The Company's
structured wire and cabling division continues to meet its revenue growth
targets, accounting for approximately 16% of the Company's revenue for both the
three and six-month periods ending March 31, 2003, compared to 1% for the
respective periods of the prior year.

                                        8
<PAGE>
Gross revenues for the quarter ended March 31, 2003 increased 15.8% to
$1,720,995 compared to $1,485,527 for the quarter ended March 31, 2002. Stable
quarterly revenues from the Company's Gulf Coast Fan subsidiary and growth in
the Connect Source subsidiary's structured cabling business counteracted
recessionary pressures on the Company's lighting and home hardware businesses.

Gross Profit for the quarter ended March 31, 2003 decreased to $502,030 compared
to $817,479 for the quarter ended March 31, 2002, reflecting recessionary
pressures in the lighting and home hardware business.

Cost of Products sold for the quarter ended March 31, 2003 decreased to $598,987
compared to $800,832 for the quarter ended March 31, 2002 due to a decrease in
general and administrative costs as a result of the consolidation of subsidiary
functions into one physical facility.

Net cash flow for the six-month period ended March 31, 2003 was ($29,707)
compared to ($29,018) for the six-month period ended March 31, 2002. Negative
cash flow for the current six-month period is mainly attributable to economic
pressures in the lighting and home hardware divisions and to start-up type
expenditures, mentioned above, in the structured wire and cabling division.
Inventories increased $190,887, of which approximately $160,000 is due to a
planned increase in home hardware inventory in order to benefit from volume
purchase discounts.

Liquidity and Capital resources
-------------------------------

Cash and cash equivalents at March 31, 2003 totaled $126,643, representing 3.4%
of total assets. Cash flows from operating activities for the six months ended
March 31, 2003 totaled ($117,109) compared to $108,881 during the same period of
2002. Negative cash flow from operations can be traced to increases in inventory
of $190,887 and a decrease in Accounts Payable in the amount of $192,850 for the
six months ended March 31, 2003. Decreases in Prepaid assets in the amount of
$97,613 are mainly attributable to prepayment of a container of ceiling fans in
route at September 30, 2002 and received during the six-months ended March 31,
2003.

Current Assets totaled $2,404,102 at March 31, 2003. The Company has working
capital of approximately $781,000 and a current ratio of 1.48:1.

Net cash provided by financing activities totaled $99,950 for the six months
ended March 31, 2003. Payments of short-term debt during this period totaling
$71,000 consist of principal payments of bank loans for the purchase of service
and installation vehicles and principal payments on the $184,000 acquisition
debt of Home Structure Sound. Increases in amounts due to Affiliates in the
amount of $295,814 consist of net increases in advances by the Principal
shareholder to fund working capital.

Short-term working capital lines of credit from banks totaled $735,600 at March
31, 2003. The Principal shareholder personally guarantees the lines of credit.

Notes payable to Related Parties in the amount of $1,357,566 consists of long
term notes outstanding to the Principal Shareholder in exchange for the
contribution of the operating subsidiaries to SpectraSource in April, 2000. The
Principal Shareholder is currently foregoing repayment of interest and principal
on these notes.

                                        9
<PAGE>
PART II.     OTHER INFORMATION

Item 1.      Legal Proceedings

SPECTRASOURCE CORPORATION V. PROJECT LIGHTING COMPANY, INC., STEVEN SEIFERT,
WILLIAM SCOTT MEADOR AND DIANE SHAW, Case # 200319659 District Court of Harris
County, Texas, filed April 15, 2003. SpectraSource is seeking injunctive relief
and monetary damages against three former employees and their current employer,
Project Lighting, alleging tortious interference, breach of fiduciary duty,
breach of confidentiality agreement, and misrepresentation. The Company alleges
that these former employees misappropriated product images, valuable trade
secrets, customer lists and pricing information, supplying their current
employer with this information in order to actively harm the business of the
Company.


Item 6.      Exhibits
             --------
               99.1       Certification of Periodic Financial Reports
               99.2       Certification of Chief Executive Officer
               99.3       Certification of Chief Financial Officer



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 E. SHEFFIELD                                   May 14, 2003
     ----------------------------                               ------------
     Charles E. Sheffield,                                          Date
     Chief Executive Officer,
     President and Director







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