U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549

FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

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

Commission file number 0 - 26013

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

COLORADO 84-1334687
- ------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)

4704 HARLAN ST, SUITE 420, DENVER, COLORADO 80212
-------------------------------------------------
(Address of principal executive offices)

(303) 831 1977
---------------------------
(Issuer's telephone number)

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of
equity, as of the latest practicable date:

CLASS OUTSTANDING AUG 14, 2001
- -------------------------- ------------------------
Common Stock, No par value 4,364,310 shares

Transitional Small Business Disclosure format: Yes [ ] No [X]

INDEX

MULTI-LINK TELECOMMUNICATIONS, INC. AND SUBSIDIARIES

PART I - FINANCIAL INFORMATION

PAGE

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

Consolidated Balance Sheet June 30, 2001. 3

Consolidated Statements of Operations and Comprehensive Income - 4
Three Months ended June 30, 2001 and 2000 and Nine Months ended
June 30, 2001 and 2000.

Consolidated Statement of Cash Flows - Nine Months ended June 30, 5
2001 and 2000.

Notes to Consolidated Financial Statements. 6

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 9

PART II - OTHER INFORMATION

Item 1. Legal Proceedings 17
Item 2. Changes in Securities 17
Item 3. Defaults on Senior Securities 18
Item 4. Submission of Matters to a Vote of Security Holders 18
Item 5. Other Information 18
Item 6. Exhibits and Reports on Form 8-K. 18
</Table>

2
3

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MULTI-LINK TELECOMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEET

<Table>
<Caption>
JUNE 30,
2001
------------

ASSETS

CURRENT ASSETS
Cash & Cash Equivalents $ 459,112
Accounts Receivable, net of allowance for doubtful accounts of $660,631 919,688
Inventory 42,747
Prepaid Expenses 323,883
------------
Total Current Assets 1,745,430

PROPERTY & EQUIPMENT NET 5,444,408

OTHER ASSETS
Note Receivable 377,677
Prepaid Equipment 43,039
Deferred Financing Costs and Other Assets 89,682

Intangible Assets, net of amortization of $2,532,474 4,844,640
------------
TOTAL ASSETS $ 12,544,876
============

LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts Payable $ 681,424
Accrued Expenses 838,213
Accrued Lease Costs 304,603
Customer Deposits 103,340
Deferred Revenue 146,047
Notes Payable and Current Portion of Long -Term Debt 3,084,971
------------
Total Current Liabilities 5,158,598

LONG-TERM DEBT, NET OF CURRENT PORTION 2,268,694
LONG-TERM ACCRUED LEASE COSTS 578,955

STOCKHOLDERS' EQUITY
Preferred Stock, $.01 par value: 5,000,000 shares authorized: none issued 0
Common Stock no par value: 20,000,000 shares authorized, 4,232,310
shares issued and outstanding 12,508,254

Accumulated Deficit (7,969,625)
------------
Total Stockholders' Equity 4,538,629
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,544,876
============
</Table>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

3
4

MULTI-LINK TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2001 2000 2001 2000
------------ ------------ ------------ ------------

NET REVENUES $ 2,857,754 $ 3,113,638 $ 8,671,805 $ 8,262,473

COST OF SERVICES AND PRODUCTS 636,538 687,715 2,167,451 1,747,237
------------ ------------ ------------ ------------

GROSS MARGIN 2,221,216 2,425,923 6,504,354 6,515,236

EXPENSES
Sales & Advertising Expenses 158,988 368,540 1,897,235 998,708
General & Administrative Expenses 1,551,246 1,754,433 6,309,666 4,267,955
Write off of deferred equity costs 0 0 472,839 0
Write off of goodwill due to permanent impairment 0 0 1,761,171 0
Depreciation 189,291 129,135 554,397 295,788
Amortization 553,972 290,375 1,178,472 697,608
------------ ------------ ------------ ------------

Total Expenses 2,453,497 2,542,483 12,173,780 6,260,059

INCOME FROM OPERATIONS (232,280) (116,560) (5,669,426) 255,177

INTEREST INCOME (EXPENSE) NET (172,178) (90,434) (487,754) (200,220)
------------ ------------ ------------ ------------
NET INCOME BEFORE TAXATION (404,458) (206,994) (6,157,180) 54,957

PROVISION FOR INCOME TAXES 52,343 (6,536) 34,342 (11,252)
------------ ------------ ------------ ------------
NET INCOME $ (352,115) $ (213,530) $ (6,122,838) $ 43,705

UNREALIZED LOSS ON INVESTMENTS AVAILABLE FOR SALE 0 5,522 0 1,633
------------ ------------ ------------ ------------
$ (352,115) $ (208,008) $ (6,122,838) $ 45,338
------------ ------------ ------------ ------------

NET INCOME PER COMMON SHARE
Basic $ (0.08) $ (0.05) $ (1.49) $ 0.01
Diluted $ (0.08) $ (0.05) $ (1.49) $ 0.01

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 4,167,955 3,956,301 4,112,887 3,824,375
Diluted 4,167,955 3,956,301 4,112,887 4,011,660
</Table>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

4
5

MULTI-LINK TELECOMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

<Table>
<Caption>
NINE MONTHS ENDED
JUNE 30 JUNE 30
2001 2000
------------ ------------

CASH FLOW FROM OPERATING ACTIVITIES

NET INCOME (LOSS) $ (6,122,837) $ 43,706

ADJUSTMENTS TO RECONCILE NET PROFIT TO NET CASH GENERATED FROM (USED IN)
OPERATING ACTIVITIES.
Depreciation and Amortization 1,732,869 993,396
Write off Goodwill for Permanent Impairment 1,761,171 0
Write off Deferred Financing Costs 230,615 1,038
Amortization of Debt Discount and Issuance Costs 13,629 21,876
Bad Debt Expense 510,157 190,683
Issue of Stock for Services 357,023 0

CHANGES IN OPERATING ASSETS & LIABILITIES
(Increase)/Decrease in Accounts Receivable (203,754) (877,918)
(Increase)/Decrease in Inventory 9,258 (8,235)
(Increase)/Decrease in Prepayments 65,802 (186,191)
Increase/(Decrease) in Accounts Payable (98,255) 317,998
Increase/(Decrease) in Accrued Expenses 946,989 (1,130,704)
Increase/(Decrease) in Deferred Revenue 39,960 0
------------ ------------
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES (757,373) (634,351)

CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Subscriber Accounts (204,408) (334,674)
Purchase of Fixed Assets (254,963) (1,578,082)
Advance on Note Receivable (46,070) (322,118)
Sale of Marketable Securities 795,765 3,196,899
Purchase of Cashtel Subscriber Accounts 0 (258,320)
Purchase of Amerivoice Subscriber Accounts (80,000) 0
Purchase of N'Orbit Subscriber Accounts (40,720) 0
Purchase of Hellyer Communications' Business and Assets 0 (1,419,936)
Purchase of One Touch Communications' Business and Assets 0 (1,152,060)
------------ ------------
Total Cash Flow (used in) Investing Activities 169,604 (1,868,291)

CASH FLOW FROM FINANCING ACTIVITIES
Payment of Related Party Notes Payable 0 (17,569)
Advances under Notes Payable 1,568,160 3,591,863
Payments of Notes Payable (1,173,798) (1,211,126)
Proceeds from Issuance of Common Stock 0 105,172
Customer Deposits (9,194) 128,635
Net effect of pooling VoiceLink 0 10,726
Cost of Equity Raising 0 (62,719)
------------ ------------
Total Cash Flow provided by Financing Activities 385,168 2,544,982

INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS $ (202,601) $ 42,340
============ ============

Cash and Cash Equivalents at the beginning of the period $ 661,713 $ 572,260
============ ============
Cash and Cash Equivalents at the end of the period $ 459,112 $ 614,600
============ ============

SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION

Cash Paid for Interest $ 474,125 $ 200,937
------------ ------------
Taxation paid $ 40,881 $ 0
------------ ------------
Consultancy and non-compete agreements acquired for equity $ 0 $ 956,624
------------ ------------
Business and assets of One Touch acquired for equity $ 0 $ 2,020,000
------------ ------------
Capital Stock of VoiceLink Florida, Inc acquired for equity $ 0 $ 132,000
------------ ------------
Unrealized loss on marketable securities $ 669 $ 1,633
------------ ------------
Subscriber accounts acquired for equity $ 252,000 $ 20,535
------------ ------------
Fixed assets purchased through debt $ 0 $ 1,105,472
------------ ------------
Fixed assets purchased through prepaid equipment costs $ 763,223 $ 0
------------ ------------
Net liabilities assumed in business combination accounted for as a purchase $ 0 $ 769,022
------------ ------------
Capital stock issued on June 30, 2000, proceeds received after quarter end $ 0 $ 1,000,000
------------ ------------
</Table>

5
6

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited financial statements of Multi-Link
Telecommunications, Inc. have been prepared in accordance with generally
accepted accounting principles for interim financial information and with the
instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In our opinion
the financial statements include all adjustments (consisting of normal recurring
accruals) necessary in order to make the financial statements not misleading.
Operating results for the three and nine month periods ended June 30, 2001 are
not necessarily indicative of the results that may be expected for the year
ended September 30, 2001. These statements should be read in conjunction with
the financial statements and related notes contained in our latest Form 10-KSB
which includes audited financial statements for the years ended September 30,
2000 and 1999.

NOTE 2 BASIS OF CONSOLIDATION

On November 19, 1999, Multi-Link Telecommunications, Inc., through its
newly formed subsidiary, Hellyer Communications Services, Inc., acquired the
business and substantially all the assets of Hellyer Communications, Inc.
(Hellyer) for a combination of cash, assumption of certain liabilities and
common stock valued at $4.7 million. Hellyer has been a provider of messaging
services since 1969, and had over 40,000 subscribers in Indianapolis, Chicago
and Detroit at the time of acquisition. The transaction was accounted for using
the purchase method of accounting and resulted in $2.8 million of goodwill
representing the excess of the purchase price over the fair value of net assets
acquired. Effective March 31, 2001, $2.6 million of goodwill was reclassified as
subscriber accounts to reflect the carrying value of subscriber accounts
acquired in the Hellyer acquisition. The purchase price was $1.1 million in cash
and the assumption of approximately $2.9 million in liabilities. Restricted
common stock (150,000 shares) with a market value at the date of issuance of
$956,000 was issued with a two-year vesting schedule with respect to non-compete
and consulting agreements with Jerry L. Hellyer, the sole shareholder of
Hellyer. The results of the Hellyer Communications business have been
consolidated with those of Multi-Link Telecommunications, Inc. effective
November 17, 1999. During the course of fiscal 2000, the Hellyer business was
transferred into a newly formed limited liability company, Hellyer
Communications Services, LLC, which was subsequently renamed Multi-Link
Communications, LLC.

On November 29, 1999, Hellyer Communications Services, Inc., acquired
9,416 residential voice-messaging accounts from B.F.G. of Illinois Inc., doing
business as Cashtel, Inc., in Chicago. The purchase price was $258,320 in cash
and common stock (2,220 shares) with a market value at the date of issuance of
$20,535. The revenues and expenses of these accounts have been consolidated with
those of Multi-Link Telecommunications, Inc., effective November 29, 1999.

On January 6, 2000, Multi-Link Telecommunications, Inc., through its
newly formed subsidiary, One Touch Communications, Inc., acquired the business
and substantially all the assets of One Touch Communications, Inc., a provider
of advanced voice messaging services to businesses in Raleigh, North Carolina.
The transaction was accounted for using the purchase method of accounting and
resulted in $2.84 million of goodwill representing the excess of the purchase
price over the fair market value of net assets acquired. Effective March 31,
2001, $1.76 million of goodwill was written off due to impairment in carrying
value. The estimated future undiscounted cash flow associated with the One Touch
business was estimated to be less than the carrying value of goodwill and
accordingly the goodwill arising on the acquisition of One Touch was written
down to the value of its estimated discounted future cash flow. In addition,
$640,000 of goodwill was reclassified as subscriber accounts to reflect the
carrying value of subscriber accounts acquired in the One Touch acquisition. The
purchase price was $3.19 million, $1.17 million in cash and restricted common
stock (246,718 shares)

6
7

with a market value at date of issuance of $2.02 million. The results of the One
Touch business have been consolidated with those of Multi-Link
Telecommunications, Inc. effective January 6, 2000.

On March 31, 2000, Multi-Link Telecommunications, Inc., acquired 100%
of the outstanding capital stock of VoiceLink Inc., a provider of advanced voice
messaging services to businesses in Atlanta, Georgia. The purchase price was
$4.88 million paid through the issue of restricted common stock (406,488 shares)
at a price of $12.00 per share. The acquisition was accounted for as a pooling
of interests, and the results of the VoiceLink business have been consolidated
with those of Multi-Link Telecommunications, as if the two businesses had been
merged throughout the periods presented.

Effective May 1, 2000, Multi-Link Telecommunications, Inc., acquired
50% of the outstanding capital stock of VoiceLink of Florida, Inc., a provider
of advanced voice messaging services to businesses in Ft. Lauderdale, Florida.
VoiceLink, Inc., a wholly owned subsidiary of Multi-Link Telecommunications,
Inc., had previously owned 50% of the outstanding share capital of VoiceLink of
Florida, Inc. and VoiceLink of Florida, Inc. had been accounted for under the
equity method of accounting. The equity income (loss) of VoiceLink of Florida,
Inc. was not significant to Multi-Link Telecommunications, Inc. and has been
included in interest income (expense) net and other within the consolidated
statements of operation and comprehensive income. The purchase price for the
remaining 50% of outstanding share capital of VoiceLink of Florida, Inc. was
acquired for restricted common stock (12,000) with a market value at date of
issuance of $132,000. The acquisition was accounted for as a purchase, and, as a
result, the results of VoiceLink of Florida, Inc. have been consolidated with
those of Multi-Link Telecommunications, Inc., effective May 1, 2000. Effective
March 31, 2001, $87,000 previously classified as goodwill arising on the
acquisition of VoiceLink of Florida, Inc. was reclassified as subscriber
accounts to reflect the carrying value of subscriber accounts acquired on the
VoiceLink of Florida acquisition.

On July 31, 2000, the Company entered into an agreement to acquire part
of the Chicago base of residential voicemail customers of Amerivoice, Inc. As no
subscribers had been transferred by Amerivoice to the Company before September
30, 2000, this acquisition had no impact on the results for fiscal 2000.
Subsequent to September 30, 2000 approximately 3,800 subscribers have been
transferred to the Company. During the nine months ended June 30, 2001, an
interim payment of $75,000 was paid to Amerivoice in respect of the subscriber
accounts that had been transferred. The total acquisition cost is not expected
to exceed $100,000.

In January 2001, the Company entered into an agreement to acquire the
telephone answering services customers of N'Orbit in Indianapolis at a total
cost of approximately $40,000, $30,000 of which had been paid as at June 30,
2001 and a further $10,000 is due over the next quarter. Annual revenues from
these customers are expected to be approximately $50,000.

Effective March 1, 2001 the Company entered into a further agreement to
acquire additional Chicago residential customers and the base of business voice
mail customers of Amerivoice, Inc. in Milwaukee, Wisconsin. The Company also
acquired certain fixed assets and voice messaging equipment in Milwaukee and
Chicago. Approximately 9,700 residential customers and 420 business customers
were transferred to the Company. The purchase price was $252,000 paid through
the issue of restricted common stock (60,000 shares) with a fair market value of
$4.20 per share as of the date of issuance.

NOTE 3 NOTES PAYABLE

During the nine months ended June 30, 2001, Multi-Link
Telecommunications, Inc. drew $540,000 under its five-year term loan with
Westburg Media Capital for working capital.

In addition, Multi-Link Telecommunications, Inc., through its wholly
owned businesses Multi-Link Communications Services LLC., and VoiceLink, Inc.
(now renamed Multi-Link Communications, Inc.), also entered into four equipment
financing facilities with terms of 48 months, at interest rates of

7
8

between 8.5% and 11% per annum for a total of $1,028,000. These funds generated
through refinancing fixed assets were used for working capital and to repay loan
obligations.

The Company repaid $584,000 under its securities margin facility with
PaineWebber, Inc. from the liquidation of its portfolio of marketable securities

As of June 30, 2001, we were current on our obligations to all lenders
and were in compliance with debt covenants on our $2.1 million term loan from
Westburg during the June quarter. However, we were not in compliance with the
debt covenants on the Westburg loan during the six-month period ended March 31,
2001. As a result of the past covenant defaults, our borrowings with Westburg
have been classified as short-term. Although our negotiations to obtain a waiver
of the covenant defaults from Westburg have so far been unsuccessful and we can
give no assurance regarding any action Westburg may take in the future, we do
not expect Westburg to take any action that would accelerate the loan at this
time and commence collection of the loan.

NOTE 4 ACCRUED LEASE COSTS

Effective March 9, 2001, the Company terminated the operations of its
centralized residential telemarketing center in Indianapolis. As a result of
terminating these operations, the Company holds approximately 17,000 square feet
of redundant office space on a lease with four years outstanding. Accordingly,
the Company has accrued in full for its best estimate of the likely costs
totaling $983,000 that it will incur under the lease taking into consideration
its ability to sublease the office space in current economic conditions.

NOTE 5 STOCKHOLDERS' EQUITY

In the quarter ended December 2000, 360 shares of common stock were
issued for $151 under the terms of our stock option plan.

In the quarter ended March 2001, 75,000 shares of common stock valued
at $346,875 were issued for marketing and corporate finance services.

In the quarter ended June 30, 2001 72,300 shares of common stock valued
at $304,000 were issued for the acquisition of subscriber accounts, banking fees
and corporate finance services.

NOTE 6 LIQUIDITY

We anticipate that our existing cash balances, funds on deposit with
Glenayre, positive earnings before interest, taxation, depreciation and
amortization, together with our ability to further reduce costs to increase
funds generated from operations will be sufficient to meet our presently
projected operating and debt service requirements for the next 12 months.
However, it is our intention to continue to pursue additional capital raising
activities over the coming 12 months to improve our liquidity position.

8
9

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

The following discussion should be read in conjunction with the
consolidated financial statements included in this report. This discussion
contains forward-looking statements that involve risks and uncertainties. Our
actual results could differ materially from those anticipated in these forward
looking statements as a result of any number of factors, including but not
limited to, the availability, cost and success of future acquisitions, the
availability of connections to public telephone networks, our ability to add
charges to customers' local Bell telephone bills, the implementation and success
of unified messaging, the effects of unexpected chargebacks from our third-party
billers and whether we are able to achieve and maintain compliance with our loan
covenants.

OVERVIEW

We provide basic voice mail, call routing, advanced integrated voice
and fax messaging, and live answering services to small businesses in several
major urban markets. These services enable businesses to improve the handling of
incoming calls and facilitate more efficient communication between employees,
customers, suppliers and other key relationships. We also provide basic voice
mail and paging services to consumers.

Our strategy is to offer a total messaging solution that is custom designed
to meet the specific needs of each customer. Our customers can begin with basic
voice mail services, and then upgrade to more advanced services as their needs
change, or as they become willing to consider more advanced and higher-priced
messaging solutions. These messaging services comprise approximately 95% of our
revenue and include:

o basic automated voice mail services;

o call routing services;

o live operator answering services; and

o automated messaging services that integrate voice and fax messages.

Beyond these core messaging services, we expect to expand our product line
in 2001 with voice activated service access and unified messaging. "Unified
messaging" is an electronic mailbox that can gather and store messages from
home, office, and mobile devices. It can store voice messages, fax messages and
Internet based e-mail messages. The mailbox can then replay these stored
messages to different electronic devices including land line telephones, mobile
phones and other mobile devices, computers and fax machines. We installed our
first unified messaging servers in Atlanta in April 2001.

In addition to messaging services, we also sell other services and products
that link into our messaging services. In some cases, we act as agents for other
telecommunications companies and receive sales commissions, and in other cases
we purchase services and resell them to our customers. These products and
services account for approximately 5% of our revenues. These services include:

o pagers and paging services;

o mobile telephones and mobile telephone services;

o local dial tone services;

o long distance telephone service; and

o telephone systems.

9
10

Our revenues are primarily derived from receiving fixed monthly service fees
for voice mail and sales of ancillary telecommunications services such as
paging. We recognize revenues as we deliver services. Annual prepayments by
subscribers are recognized over the period covered by the prepayment on a
straight-line basis.

Our primary costs of delivering our voice messaging services to our
subscribers are our voice messaging systems, maintenance costs and the costs of
interconnection to the public switched telephone network. Most of our general
and administrative expenses are incurred in the processing and servicing of new
subscriber accounts.

We currently sell a small portion of our services through independent sales
agents and the majority through our internal sales force. All salaries and
commissions associated with our in-house sales force are expensed as incurred.
All commissions paid to independent sales agents for procuring subscribers are
capitalized and amortized. We amortize these subscriber account acquisition
costs over the estimated economic life of subscriber accounts or 36 months,
whichever is less.

We plan to continue to increase revenues by increasing the number of sales
agents and our internal sales force that offer our voice messaging services, by
increasing the range of telecommunications services we offer to our customers,
and by acquiring companies in the voice messaging industry. After completing an
acquisition, we plan to convert the operations of the acquired company to
conform to our current business model, where economically feasible.

From inception through September 1998, we financed our operations and net
losses through factoring of customer contracts and working capital loans
provided by CS Capital Corp. at implied interest rates of up to 52% per annum.
In September 1998, we refinanced most of our indebtedness to CS Capital Corp.
with a five-year term loan from Westburg Media Capital LP. The Westburg loan has
an interest rate of 3% over prime rate per annum. In May 1999, we repaid all but
$10,000 of the Westburg loan from the proceeds of our initial public offering
and, as a result, experienced significantly lower net interest expense in fiscal
1999 than in prior years. Subsequently we have drawn down a further $2.1 million
under this facility to finance our program of acquisitions and for working
capital.

Closure of Residential Telesales Center in March 2001.

In March 2001, we discontinued all new sales activity related to our
residential messaging business in Indianapolis, Indiana, which we acquired from
Hellyer Communications, Inc. ("Hellyer") in November 1999. This resulted in the
termination of 37 employees which, together with savings in other infrastructure
and telephony costs, reduced ongoing expenses.

Introduction of Unified Messaging.

Glenayre Technologies, Inc. (the supplier of our messaging equipment)
installed our first unified messaging servers in Atlanta in April 2001. We
believe that this new service set will provide us with a significant competitive
advantage and that our monthly sales to new and existing customers will
increase. The successful introduction of Unified Messaging is critical to our
future success. Unified Messaging allows the subscriber to manage voice, fax and
email messages in one mailbox, and to retrieve any type of message through any
device including, for example, reading email over the telephone through a text
to voice translator and retrieving, playing back and storing voice mail for the
long term on a laptop or desk-top computer.

We are currently working with Glenayre to resolve certain technical issues
and to develop internal sales, marketing and provisioning standards before a
planned launch of these services in Atlanta in Summer/Fall 2001. It is our
intention to offer Unified Messaging in several other markets by the end of
calendar 2001.

10
11

ACQUISITIONS

On November 17, 1999, we acquired substantially all of the business and
assets and certain liabilities of Hellyer Communications, Inc., a provider of
basic voice messaging services in Indianapolis, Detroit and Chicago. The
acquisition was accounted for as a purchase and as a result, our financial
statements include the revenues and expenses of Hellyer since the date of
acquisition.

On January 6, 2000, we acquired substantially all of the business and assets
and certain liabilities of One Touch Communications, Inc., a provider of voice
messaging services in Raleigh, North Carolina. The acquisition was accounted for
as a purchase and as a result, our financial statements include the revenues and
expenses of One Touch since the date of acquisition.

On March 31, 2000, we acquired all of the outstanding capital stock of
VoiceLink, Inc., a provider of advanced voice messaging services to businesses
in Atlanta, Georgia. The acquisition was accounted for as a pooling of interests
and as a result, the results of the VoiceLink business have been consolidated
with ours, as if the two businesses had been merged throughout the periods
presented. One of the assets of VoiceLink was 50% of the outstanding capital
stock of VoiceLink of Florida, Inc.

On May 1, 2000, we acquired the remaining 50% of the outstanding capital
stock of VoiceLink of Florida, Inc., a provider of advanced voice messaging
services to businesses in Ft. Lauderdale, Florida. The equity income (loss) of
VoiceLink of Florida, Inc. was not significant to us and has been included in
interest income (expense), net within the consolidated statements of operation
and comprehensive income. The acquisition of the remaining 50% of the capital
stock of VoiceLink of Florida, Inc. was accounted for as a purchase and as a
result, the results of VoiceLink of Florida, Inc. have been included with ours,
effective May 1, 2000.

Once we have established a presence in any local market, we plan to make
further acquisitions of basic voice messaging subscriber bases. In all cases, we
will transfer the acquired customers to our Glenayre messaging systems and close
the offices of the acquired business. To date we have completed three of these
acquisitions.

RESULTS OF OPERATIONS

QUARTER ENDED JUNE 30, 2001 COMPARED TO QUARTER ENDED JUNE 30, 2000.

The results for the quarter ended June 30, 2001 and June 30, 2000 include the
results for all the acquisitions described above.

NET REVENUES. Net revenues for the quarter ended June 30, 2001 were
$2,858,000 compared to $3,114,000 for the fiscal quarter ended June 30, 2000, a
decrease of $256,000 or 8%. The Company has experienced increased customer
attrition during the past year largely from our residential customer base, which
was not offset by new sales.

COST OF SERVICES AND PRODUCTS. Cost of services and products for the
fiscal quarter ended June 30, 2001 was $637,000, compared to $688,000 for the
fiscal quarter ended June 30, 2000, a decrease of $51,000 or 7%. This decrease
arose due to reduced sales in the current quarter as compared to the prior year.

GROSS PROFIT MARGIN. Gross margin for the fiscal quarter ended June 30,
2001 was $2,221,000 compared to $2,426,000 for the fiscal quarter ended June 30,
2000, a decrease of $205,000 or 8% due to the factors described above.

GROSS PROFIT MARGIN PERCENTAGE. The overall gross profit margin
percentage remained constant at 78% for both the three months ended June 31,
2000 and the three months ended June 30, 2001.

11
12

SALES AND ADVERTISING EXPENSE. Sales and advertising expenses for the
three months ended June 30, 2001, were $159,000 compared to $369,000 for the
three months ended June 30, 2000, a decrease of $210,000 or 57%. This decrease
relates to decreased sales costs at Hellyer due to the closure of the
centralized B2B and residential telemarketing facilities.

GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative
expenses for the three months ended June 30, 2001, were $1,551,000 compared to
$1,754,000 for the three months ended June 30, 2000, a decrease of $203,000 or
11%. This decrease relates to reduced overhead expenses at Hellyer following the
termination of the centralized B2B and residential telemarketing facilities.

EBITDA - EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AND AMORTIZATION.
EBITDA for the three months ended June 30, 2001 was $511,000 compared to
$303,000 for the three months ended June 30, 2000, an increase of $208,000 or
69%. This increase was caused by the factors outlined above.

"EBITDA" reflects net income or loss plus depreciation, amortization
and interest expense, income taxes and other non-cash charges. EBITDA is a
measure used by analysts and investors as an indicator of operating cash flow
because it excludes the impact of movements in working capital items, non-cash
charges and financing costs. However, EBITDA is not a measure of financial
performance under generally accepted accounting principles and should not be
considered a substitute for other financial measures of performance.

DEPRECIATION EXPENSE. Depreciation expense for three months ended June
30, 2001, was $189,000 compared to $129,000 for the three months ended June 30,
2000, an increase of $60,000 or 46%. This increase was the result of additional
capital equipment purchased during the year.

AMORTIZATION EXPENSE. Amortization for the three months ended June 30,
2001, was $554,000 compared to $290,000 for the three months ended June 30,
2000, an increase of $264,000 or 91%. The increase was due to the acquisition of
the various subscriber accounts described above and the resulting increase in
amortization.

INCOME (LOSS) FROM OPERATIONS. Loss from operations was $(232,000) for
the three months ended June 30, 2001, compared to a loss from operations of
$(117,000) for the three months ended June 30, 2000, an increase in losses of
$115,000 or 98% due to the increases in depreciation and amortization expenses
described above.

NET INTEREST EXPENSE. Net interest expense for the three months ended
June 30, 2001, was $172,000 compared to $90,000 for the three months ended June
30, 2000, an increase of $82,000 or 91% due to our increased level of debt.

PROVISION FOR INCOME TAXES. The provision for income taxes for the
three months ended June 30, 2001 was a credit of $(52,000) compared to expense
of $7,000 for the three months ended June 30, 2000, a decrease of $59,000. This
decrease is due to the reversal of an accrual for state income taxes by Hellyer
and a refund of prior year state and federal tax for VoiceLink.

NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS). We incurred a net
loss of $(352,000) for the three months ended June 30, 2001, compared to a net
loss of $(214,000) for the three months ended June 30, 2000, an increase in
losses of $(138,000) or 64% due to the factors outlined above.

The comprehensive loss for the three months ended June 30, 2001 was the
same as the net loss of $(352,000). The comprehensive loss for the three months
ended June 30, 2000 was

12
13

$(209,000), $5,000 less than the net loss of $(214,000). The difference of
$5,000 was due to an increase in the unrealized gains on our portfolio of
marketable securities, which were held as available for sale investments. During
the three months ended June 30, 2001 we did not own any marketable securities,
which were held as available for sale investments.

NINE MONTHS ENDED JUNE 30, 2001 COMPARED TO NINE MONTHS ENDED JUNE 30, 2000.

The results for the nine months ended June 30, 2001 include the results
for all the acquisitions described above. The results for the nine months ended
June 30, 2000 include the results of Hellyer Communications from November 17,
1999 and One Touch Communications from January 6, 2000, their respective dates
of acquisition.

NET REVENUES. Net revenues for the nine months ended June 30, 2001 were
$8,672,000 compared to $8,262,000 for the nine months ended June 30, 2000, an
increase of $410,000 or 4%. The acquisitions completed in fiscal 2000 generated
additional revenue of $1,062,000. Revenue from existing businesses declined by
$652,000 or 8%. $130,000 of this decrease relates to a provision against sales
for sales taxes arising on an assessment received in respect of the period 1996
- - 1999. Neither we nor our tax advisers believe that this liability is payable
and we are appealing against the assessment. Nevertheless, we have decided to
make a provision in respect of this potential liability pending the outcome of
our appeal. The balance of the decrease of $522,000 or 6% arose due to increased
customer attrition largely form our residential customer base during the past
year, which was not offset by new sales.

COST OF SERVICES AND PRODUCTS. Cost of services and products for the
nine months ended June 30, 2001 was $2,167,000, compared to $1,747,000 for the
nine months ended June 30, 2000, an increase of $420,000 or 24%. Of the
increase, $325,000 or 19% was attributable to the acquisitions made in fiscal
2000 and $95,000 or 5% to the cost of increased sales of pager hardware and
telephone systems in the current nine-month period as compared to the prior
year.

GROSS PROFIT MARGIN. Gross profit margin for the nine months ended June
30, 2001 was $6,504,000 compared to $6,515,000 for the nine months ended June
30, 2000, a decrease of $9,000 due to the factors described above.

GROSS PROFIT MARGIN PERCENTAGE. The overall gross profit margin
percentage declined from 78% for the nine months ended June 30, 2000 to 75% for
the nine months ended June 30, 2001. The decline was due to the factors
described above.

SALES AND ADVERTISING EXPENSE. Sales and advertising expenses for the
nine months ended June 30, 2001, were $1,897,000 compared to $999,000 for the
nine months ended June 30, 2000, an increase of $898,000 or 89%. Of this
increase $342,000 or 34% was due to the inclusion of sales and advertising
expenses from the acquisitions completed in fiscal 2000, $350,000 or 35% relates
to marketing expenditures incurred in preparation for the launch of unified
messaging and $307,000 or 31% relates to increased sales costs in our existing
businesses primarily at Hellyer prior to the closure of the centralized B2B and
residential telemarketing facilities.

GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative
expenses for the nine months ended June 30, 2001, were $6,310,000 compared to
$4,268,000 for the nine months ended June 30, 2000, an increase of $2,042,000 or
47%. Of this increase $524,000 or 12% was attributable to the inclusion of
general and administrative expenses from the acquisitions completed in fiscal
2000, $983,000 or 23% relates to a provision made in respect of redundant office
space at Hellyer following the termination of the centralized B2B and
residential telemarketing facilities, $408,000 or 10% to the increased costs of
the Hellyer operations prior to their cut back, $90,000 to the costs of
standardizing the Company's product range, sales methodologies and materials
throughout the group and $37,000 to other miscellaneous overhead expenses.

13
14

CAPITALIZED OFFERING COSTS WRITTEN OFF. In the nine months ended June
30, 2001, we wrote off $473,000 of deferred offering costs because in the
current economic and stock market environment we are unable to forecast when we
will be able to complete a successful stock offering. No such write-offs were
recognized in the nine months ended June 30, 2000.

EBITDA - EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AND AMORTIZATION.
EBITDA for the nine months ended June 30, 2001 was a loss of $(1,703,000)
compared to earnings of $1,249,000 for the nine months ended June 30, 2000, a
decrease of $(2,952,000). This decrease was caused primarily by the factors
outlined above.

DEPRECIATION EXPENSE. Depreciation expense for the nine months ended
June 30, 2001, was $554,000 compared to $296,000 for the nine months ended June
30, 2000, an increase of $258,000 or 87%. This was the result of additional
capital expenditures incurred during the year.

AMORTIZATION EXPENSE. Amortization for the nine months ended June 30,
2001, was $1,178,000 compared to $698,000 for the nine months ended June 30,
2000, an increase of $480,000 or 68%. This increase arose from the acquisitions,
both business and subscriber base, described above and the resulting increased
amortization.

WRITE OFF GOODWILL DUE TO PERMANENT IMPAIRMENT. In the nine months
ended June 30, 2001 we wrote off $1,761,000 of goodwill to recognize the
permanent impairment in value of our investment in One Touch Communications. No
such write-offs were recognized in the nine months ended June 30, 2000.

INCOME (LOSS) FROM OPERATIONS. Loss from operations was $(5,669,000)
for the nine months ended June 30, 2001, compared to income from operations of
$255,000 for the nine months ended June 30, 2000, a decrease of $5,924,000 due
to the factors described above.

NET INTEREST EXPENSE. Net interest expense for the nine months ended
June 30, 2001, was $488,000 compared to $200,000 for the nine months ended June
30, 2000, an increase of $288,000 or 144% due to our increased level of debt.

PROVISION FOR INCOME TAXES. The provision for income taxes for the nine
months ended June 30, 2001 was a credit of $(34,000) compared to an expense of
$11,000 for the nine months ended June 30, 2000, a decrease of $45,000 due to
the reversal of an accrual for state income taxes by Hellyer and a refund of
prior years state and federal tax for VoiceLink.

NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS). We incurred a net
loss of $(6,123,000) for the nine months ended June 30, 2001, compared to a net
profit of $44,000 for the nine months ended June 30, 2000, a decrease of
$6,167,000 due to the factors outlined above.

The comprehensive loss for the nine months ended June 30, 2001 was
$(6,123,000), the same as the net loss. The comprehensive profit for the nine
months ended June 30, 2000 was $46,000, $2,000 greater than the net income of
$44,000. The difference of $2,000 was due to an increase in the unrealized gains
on our portfolio of marketable securities, which were held as available for sale
investments.

14
15

LIQUIDITY AND CAPITAL RESOURCES

We continue to meet our capital and operating requirements through our
existing cash resources, a $2.1 million line of credit provided by Westburg and
various long-term equipment-leasing facilities. As of June 30, 2001 we had
available cash of $459,000 and $43,000 on deposit with Glenayre to be used as
partial payment for the future equipment purchase obligations described below.

As of June 30, 2001, we were current on our obligations to all lenders and
were in compliance with debt covenants on our $2.1 million term loan from
Westburg during the June quarter. However, we were not in compliance with the
debt covenants on the Westburg loan during the six-month period ended March 31,
2001. As a result of the past covenant defaults, our borrowings with Westburg
have been reclassified from long-term to short term. Although our negotiations
to obtain a waiver of the covenant defaults from Westburg have been unsuccessful
and we can give no assurance regarding any action Westburg may take in the
future, we do not expect Westburg to take any action that would accelerate the
loan at this time and commence collection of the loan.

For nine months ended June 30, 2001 net cash used in operations was
approximately $757,000 compared to $634,000 for nine months ended June 30, 2000.
This variance of $123,000 arose due to a decrease in profits adjusted for
non-cash items of $2,768,000 offset by a decrease of $2,645,000 in funds
invested in operating assets and liabilities primarily relating to the movement
of accrued expenses.

Net cash generated from investing activities was $170,000 for the nine
months ended June 30, 2001 compared to $(1,868,000) used in the prior year, an
increase of $2,038,000. This variance was primarily due to the fact that we did
not make any major business or fixed asset acquisitions in the current year
while in the prior year we purchased Hellyer Communications ($1,420,000), One
Touch ($1,152,000) and $(1,578,000) of fixed assets. During the nine months
ended June 30, 2001, we sold $796,000 of marketable securities largely to repay
the Paine Webber margin facility and for working capital. We also purchased
$325,000 of subscriber accounts and $255,000 of fixed assets.

Cash flow from financing activities was $385,000 for the nine months ended
June 30, 2001 compared to $2,545,000 for the same quarter in the prior year.
This reduction of $2,160,000 was largely due to a reduction in net debt finance
raised in the current period.

On June 30, 2000, we entered into a volume purchase agreement with Glenayre.
The volume purchase agreement provides that we will purchase $2.5 million of
voice messaging equipment from Glenayre by June 30, 2003. As of June 30, 2001,
we had purchased $757,000 of equipment from Glenayre under this agreement.

On September 1, 2000 we filed a registration statement on Form SB-2 with the
Securities and Exchange Commission for an underwritten follow-on public offering
intended to result in gross proceeds of $16,650,000. Due to adverse market
conditions and a significant decline in the price of our common stock since
filing the registration statement, the offering was not completed. On February
2, 2001 we amended the filing to reflect a smaller offering of approximately
$5,000,000, which we plan to complete sometime during 2001. However, there can
be no assurance that market conditions or our operating results will improve
enough to enable the proposed offering to be successfully completed.

15
16

On July 13, 2001 a registration statement on Form S-3 was declared effective
by the Securities and Exchange Commission over 1,555,335 common shares,
including 272,160 shares underlying our Series A and Series B Warrants that are
exercisable at prices between $4.17 and $5.00 per share. In the event that these
warrants are fully exercised by the holders, the Company would receive net
proceeds of approximately $1.1 million, which would be used for equipment
purchases, working capital, debt reduction, and general corporate purposes.
However, there can be no assurance that the holders of warrants will exercise
their rights.

We plan to continue to acquire more companies involved in the messaging
industry. We intend to seek additional debt and equity financing to support our
acquisition programs in the future.

ACCOUNTING PRONOUNCEMENTS

SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities,
was issued in June 1998. This statement establishes accounting and reporting
standards for derivative instruments and for hedging activities. It requires
that an entity recognize all derivatives as either assets or liabilities in the
statement of financial position and measure those instruments at fair value.
This statement is effective for our financial statement for the fiscal year
ended September 30, 2001, and the adoption of this standard is not expected to
have a material effect on our financial statements.

On June 30, 2001, the FASB approved the issuance of SFAS No. 141, Business
Combinations and SFAS No. 142, Goodwill and Other Intangible Assets. SFAS 141
states that all business combinations should be accounted for using the purchase
method of accounting; use of the pooling-of-interest method is prohibited.
Accounting for the excess of the fair value of net assets over cost (negative
goodwill), will be allocated to certain assets first with any remaining excess
recognized as an extraordinary gain. The purchase price must be allocated to
tangible assets and identifiable intangible assets first, with any excess
purchase price recorded as goodwill. SFAS 141 is effective for business for
business combinations completed after June 30, 2001. SFAS 142 addresses the
accounting for all purchased intangible assets but not the accounting for
internally developed intangible assets. Acquired assets (other than goodwill)
will be amortized over their useful economic life and reviewed for impairment in
accordance with SFAS No. 121. Goodwill will no longer be amortized and will be
reviewed for impairment in accordance with SFAS No. 142. Goodwill will be tested
annually and on an interim basis if an event or circumstance occurs between the
annual tests that might reduce the fair value of the reporting unit below its
carrying value. SFAS No. 142 is effective for fiscal years beginning after
December 31, 2001 for acquisitions prior to July 1, 2001, with early adoption
permitted. Therefore, amortization of goodwill acquired prior to July 1, 2001
will cease when the Company adopts SFAS No. 142. Goodwill and intangible assets
acquired in a transaction completed after June 30, 2001 will be accounted for in
accordance with SFAS No. 142 immediately.

EFFECTS OF INFLATION

Although we cannot accurately anticipate the effect of inflation on our
operations, we do not believe that inflation has had, or is likely in the future
to have, a material effect on our operating results or financial condition.

SUBSEQUENT EVENTS

On July 13, 2001 a registration statement on Form S-3 was declared
effective by the Securities and Exchange Commission over 1,555,335 common
shares.

16
17

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to any legal proceedings.

ITEM 2. CHANGES IN SECURITIES.

Recent Sales of Unregistered Securities

In May 2001, we issued 2,300 shares of our restricted
common stock to Westburg Media Capital LP. as consideration
for a covenant waiver on our working capital loan. We issued
the shares in reliance upon the exemption from registration
provided by Section 4(2) of the 1933 Act. No underwriters were
engaged in connection with such issuances. No agreement has so
far been reached for the waiver and the shares will be
cancelled if no agreement can be reached.

In June 2001, we issued 60,000 shares of our
restricted common stock to Amerivoice Communications, Inc. as
consideration for the acquisition of voice mail accounts in
Chicago and Milwaukee. We issued the shares in reliance upon
the exemption from registration provided by Section 4(2) of
the 1933 Act. No underwriters were engaged in connection with
such issuances.

In June 2001, we issued 4,000 shares of our
restricted common stock to Century America Promotions, Inc. in
settlement of fees due in respect of work completed in
connection with the proposed exercise of Series A Warrants. We
issued the shares in reliance upon the exemption from
registration provided by Section 4(2) of the 1933 Act. No
underwriters were engaged in connection with such issuances.

In June 2001, we issued 6,000 shares of our
restricted common stock to Small Cap Solutions, Inc. in
settlement of fees due in respect of work completed in
connection with the proposed exercise of Series A Warrants. We
issued the shares in reliance upon the exemption from
registration provided by Section 4(2) of the 1933 Act. No
underwriters were engaged in connection with such issuances.

In July 2001, we issued 125,000 shares of our
restricted common stock to Boss, Inc. as partial consideration
for the purchase of an integrated accounting and customer
relationship management software package. We issued the shares
in reliance upon the exemption from registration provided by
Section 4(2) of the 1933 Act. No underwriters were engaged in
connection with such issuances.

In July 2001, we issued 5,000 shares of our
restricted common stock to Corporate Finance Group, Inc. in
settlement of fees due in respect of work completed in
connection with the proposed exercise of Series A Warrants. We
issued the shares in reliance upon the exemption from
registration provided by Section 4(2) of the 1933 Act. No
underwriters were engaged in connection with such issuances.

In July 2001, we issued 2,000 shares of our
restricted common stock to Mr. Randall Lewis in settlement of
fees due in respect of work completed in connection with the
proposed exercise of Series A Warrants. We issued the shares
in reliance upon the exemption from registration provided by
Section 4(2) of the 1933 Act. No underwriters were engaged in
connection with such issuances.

17
18

Registration Statement Declared Effective by Securities and
Exchange Commission

On July 13, 2001 a registration statement on Form S-3
was declared effective by the Securities and Exchange
Commission over 1,555,335 common shares.

Change of Expiration Date of Series A Warrants

In November 1998 we issued 114,720 Series A warrants
to purchase shares of common stock at an exercise price of
$4.17 per share in connection with a private placement. The
original expiration date of the Warrants was May 14, 2001. The
Company has agreed to extend the expiration date of the
Warrants to August 30, 2001 to allow the holders a reasonable
period to exercise the Warrants after the S-3 registration
statement was declared effective on July 13, 2001.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION.

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

a. EXHIBITS.

None

b. REPORTS ON FORM 8-K.

On June 18, 2001 we filed a form 8-K to report the resignation
of Mr. Keith Holder from our Board of Directors. Mr. Holder
resigned for personal reasons. It is our intention to seek a
suitable replacement for Mr. Holder within the next 30-60
days.

18
19

SIGNATURES

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

MULTI-LINK TELECOMMUNICATIONS, INC.
(REGISTRANT)

DATE: AUGUST 14, 2001 /s/ NIGEL V. ALEXANDER
- --------------------- ------------------------
NIGEL V. ALEXANDER,
CHIEF EXECUTIVE OFFICER.

DATE: AUGUST 14, 2001 /s/ SHAWN B. STICKLE
- --------------------- ------------------------
SHAWN B. STICKLE,
PRESIDENT

DATE: AUGUST 14, 2001 /s/ DAVID J. C. CUTLER
- --------------------- ------------------------
DAVID J.C. CUTLER,
CHIEF FINANCIAL OFFICER.