<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-Q

              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                      FOR THE QUARTER ENDED JUNE 30, 1999

                         COMMISSION FILE NUMBER 0-21202

                          FIRSTWAVE TECHNOLOGIES, INC.

<TABLE>
   <S>                         <C>                            <C>
             7372                      GEORGIA                 58-1588291
   (Primary Std. Ind.          (State of incorporation)       (IRS Employer
    Classification Code #)                                     Identification #)
</TABLE>

                       2859 PACES FERRY ROAD, SUITE 1000
                             ATLANTA, GEORGIA 30339
                    (Address of principal executive offices)



                                 (770-431-1200)
                        (Telephone number of registrant)


Indicate by check mark whether the registrant (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 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 [ ]


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

            Outstanding as of  August 10, 1999:

            Common Stock, no par value                    5,674,968 Shares



<PAGE>   2

                          FIRSTWAVE TECHNOLOGIES, INC.

                                   FORM 10-Q

                      FOR THE QUARTER ENDED JUNE 30, 1999




                                     INDEX
                                 --------------


<TABLE>
<CAPTION>
                                                                               Page No.
                                                                               --------
<S>                                                                            <C>
Part I.  Financial Information

Item 1.  Financial Statements

    Consolidated Balance Sheet - December 31, 1998 and June 30, 1999               3

    Consolidated Statement of Operations - For the Three and Six Months ended
        June 30, 1998 and June 30, 1999                                            4

    Consolidated Statement of Changes in Shareholders' Equity -
        For the Six Months Ended June 30, 1999                                     5

    Consolidated Statement of Cash Flows - For the Six Months Ended
        June 30, 1998 and June 30, 1999                                            6

    Notes to Financial Statements                                                  7



Item 2   Management's Discussion and Analysis of                                   8
         Financial Condition and Results of Operations


Part II  Other Information                                                         12
</TABLE>



                                       2
<PAGE>   3
PART I.  FINANCIAL INFORMATION

Item 1.    Financial Statements



                          FIRSTWAVE TECHNOLOGIES, INC.
                           CONSOLIDATED BALANCE SHEET
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>


                                                          DEC 31,       JUN 30,
                                                            1998         1999
                                                          -------    -----------
                                                                     (unaudited)
<S>                                                       <C>        <C>

                                ASSETS

Current assets:
  Cash and cash equivalents                               $ 2,245     $ 3,435
  Accounts receivable, less allowance for
    doubtful accounts of $425 and $662, respectively        3,146       1,600
  Other assets                                                395         440
                                                          -------     -------
                Total current assets                        5,786       5,475

  Property and equipment, net                               1,501       1,044
  Deferred income tax benefit                               2,621       2,621
  Software development costs, net                             770       1,305
  Intangible asset                                            644         549
                                                          -------     -------
                                                          $11,322     $10,994
                                                          =======     =======



                LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                        $ 1,354     $   972
  Deferred revenue                                          1,581       1,109
  Accrued employee compensation
    and benefits                                              284         214
  Other accrued liabilities                                   343         205
                                                          -------     -------
                Total current liabilities                   3,562       2,500

Shareholders' equity                                        7,760       8,494
                                                          -------     -------
                                                          $11,322     $10,994
                                                          =======     =======
</TABLE>




  The accompanying notes are an integral part of these financial statements.




                                       3
<PAGE>   4


                          FIRSTWAVE TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (unaudited)


<TABLE>
<CAPTION>

                                      FOR THE THREE MONTHS ENDED     FOR THE SIX MONTHS ENDED
                                      ---------------------------    ------------------------
                                       JUNE 30,       JUNE 30,       JUNE 30,       JUNE 30,
                                         1998           1999           1998           1999
                                       --------       --------       --------       --------
<S>                                   <C>             <C>            <C>            <C>
Net Revenues
  Software                              $   868        $   365        $ 2,187        $ 1,536
  Services                                1,376            950          2,265          1,909
  Maintenance                             1,301          1,288          2,604          2,521
  Other                                     193             97            292            196
                                        -------        -------        -------        -------
                                          3,738          2,700          7,348          6,162
                                        -------        -------        -------        -------
Cost and Expenses
  Cost of revenues
    Software                                173            191            340            396
    Services                              1,001            599          1,720          1,232
    Maintenance                             431            353            827            654
    Other                                   181             84            280            179
  Sales and marketing                     1,322            821          3,021          2,200
  Product development                       564            392          1,089          1,016
  General and administrative                791            657          1,406          1,736
                                        -------        -------        -------        -------
                                          4,463          3,097          8,683          7,413
                                        -------        -------        -------        -------

    Operating loss                         (725)          (397)        (1,335)        (1,251)

Interest income                              61             27            115             45
                                        -------        -------        -------        -------
Loss before income taxes                   (664)          (370)        (1,220)        (1,206)
Income tax                                  (53)           (26)           (70)           (30)
                                        -------        -------        -------        -------
Net loss                                $(  717)       $(  396)       $(1,290)       $(1,236)
                                        =======        =======        =======        =======

Dividends on preferred stock                  0            (30)             0            (30)
                                        -------        -------        -------        -------

Net loss applicable to common
 shareholders                           $(  717)       $(  426)       $(1,290)       $(1,266)
                                        =======        =======        =======        =======

Basic and diluted
 net loss per share                     $( 0.14)       $( 0.08)       $( 0.25)       $( 0.24)
                                        =======        =======        =======        =======

Weighted average number of common
  and common share equivalents            5,129          5,160          5,110          5,160
                                        =======        =======        =======        =======
</TABLE>


   The accompanying notes are an integral part of these financial statements.




                                       4
<PAGE>   5




                          FIRSTWAVE TECHNOLOGIES, INC.
           CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                       (IN THOUSANDS, EXCEPT SHARE DATA)
                                  (unaudited)

<TABLE>
<CAPTION>


                                                                       FOR THE SIX MONTHS ENDED JUNE 30, 1999



                                                        COMMON STOCK         PREFERRED STOCK
                                            -----------------------------------------------------     ADD'L        COMPRE-
                                                                                                      PAID-IN      HENSIVE
                                              SHARES        AMOUNT         SHARES        AMOUNT       CAPITAL       LOSS
                                            -----------   ----------    -----------   -----------    ----------   ----------


<S>                                          <C>          <C>           <C>           <C>             <C>         <C>
Balance at December 31, 1998                 5,151,322    $      10             0     $        0      $19,813       $     0

Series A convertible preferred stock                                       20,000          2,000

Issuance of stock                                                                                            9

Employee stock plan purchases                    3,497                                                       7

Comprehensive loss:
Net loss                                                                                                             (1,236)
Foreign currency translation adjustment                                                                                 (46)
                                                                                                                    --------
Accumulated comprehensive loss                                                                                       (1,282)
                                                                                                                    --------

                                            ----------    -----------------------     ----------      -------

Balance at June 30, 1999                     5,154,819    $      10        20,000     $    2,000      $19,829
                                            ==========    =========    ==========     ==========      =======

<CAPTION>


                                             ACCUMULATED
                                                OTHER
                                           COMPREHENSIVE      ACCUMULATED
                                            INCOME/(LOSS)       DEFICIT         TOTAL
                                          -----------------   -----------   -------------


<S>                                        <C>                 <C>           <C>
Balance at December 31, 1998               $       34          $(12,097)     $    7,760

Series A convertible preferred stock                                              2,000

Issuance of stock                                                                     9

Employee stock plan purchases                                                         7

Comprehensive loss:
Net loss                                                         (1,236)         (1,236)
Foreign currency translation adjustment           (46)                              (46)

Accumulated comprehensive loss



                                           ----------        ----------      ----------

Balance at June 30, 1999                   $      (12)       $  (13,333)     $    8,494
                                           ==========        ==========      ===========
</TABLE>




   The accompanying notes are an integral part of these financial statements.



                                       5

<PAGE>   6

                          FIRSTWAVE TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                 (IN THOUSANDS)
                                  (unaudited)


<TABLE>
<CAPTION>

                                                                       FOR THE SIX MONTHS ENDED
                                                            ---------------------------------------------
                                                             JUNE 30, 1998                JUNE 30, 1999
                                                            ---------------               ---------------

<S>                                                         <C>                           <C>
Cash flows provided by/(used in) operating activities       $          (861)              $           104

Cash flows from investing activities
  Acquisition of Co-cam UK                                             (246)                            0
  Software development costs                                              0                          (820)
  Purchases of property and equipment                                  (356)                          (64)
                                                            ---------------               ---------------
       Net cash used in investing activities                           (602)                         (884)
                                                            ---------------               ---------------

Cash flows from financing activities
  Proceeds from employee stock purchase plan                             11                             7
  Proceeds from issuance of preferred stock                               0                         2,000
  Issuance of stock warrants                                              0                             9
  Exercise of common stock options                                      110                             0
                                                            ---------------               ---------------
       Net cash provided by financing activities                        121                         2,016
                                                            ---------------               ---------------


                                                            ---------------               ---------------
Foreign currency translation adjustment                                  21                           (46)
                                                            ---------------               ---------------

Increase/(decrease) in cash                                          (1,321)                        1,190
Cash and cash equivalents, beginning of period                        4,969                         2,245
                                                            ---------------               ---------------
Cash and cash equivalents, end of period                    $         3,648               $         3,435
                                                            ===============               ===============

Supplemental disclosure of cash flow information
                                                            ---------------               ---------------
  Cash paid during the period for income taxes              $            58               $            26
                                                            ===============               ===============
</TABLE>



   The accompanying notes are an integral part of these financial statements.


                                       6
<PAGE>   7



                          FIRSTWAVE TECHNOLOGIES, INC.
                         NOTES TO FINANCIAL STATEMENTS
                                 JUNE 30, 1999


A.       BASIS OF PRESENTATION

         The accompanying unaudited financial statements have been prepared in
         accordance with the instructions to Form 10-Q and do not include all
         of the information and footnotes required by generally accepted
         accounting principles for complete financial statements. In the
         opinion of management, all adjustments (consisting only of normal
         occurring accruals) considered necessary for a fair presentation have
         been included.


B.       ACCOUNTING POLICIES

         BASIC AND DILUTED NET LOSS PER COMMON SHARE
         Basic net loss per common share is based on the weighted average
         number of shares of common stock outstanding during the period. Stock
         options and convertible preferred stock would have been included in
         the diluted earnings per share calculation had they not been
         antidilutive.

         FOREIGN CURRENCIES
         Assets and liabilities recorded in foreign currencies are translated
         at the exchange rate on the balance sheet date and the effects of
         foreign currency translation adjustments are included as a component
         of shareholders' equity.


C.       PREFERRED STOCK

         The Company issued 20,000 shares of Preferred Stock during the second
         quarter of 1999 to two officers for an aggregate of $2 million. There
         are no shares that are authorized but unissued. The Preferred Stock
         accumulate dividends at a rate of 9% that are payable annually when
         declared by the Board of Directors. The Preferred Stock is convertible
         (after a period of one year from issue) into common stock at the
         option of the holder based on a 20% premium over the weighted average
         of the closing prices for the Common Stock for the last 20 trading
         days prior to the subscription for Preferred Stock.



                                       7
<PAGE>   8


ITEM 2.

                          FIRSTWAVE TECHNOLOGIES, INC.
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS


OVERVIEW

Firstwave Technologies, Inc. (the "Company") is a provider of web-based
Customer Relationship Management (eCRM) applications. The Company has evolved
from a single solution, independent Internet technologies company to a provider
of integrated web-based solutions utilizing a partnership model prevalent in
today's technology industry. On June 30, 1999 the Company released Netgain(TM)
Sales 3.0 which included the Netgain Internet Business Center(TM) (IBC), new
customization tools, the ability to automatically upgrade customizations to
subsequent releases, and integration with Microsoft(R) Outlook. During the
quarter the Company also introduced the Netgain Customer Interaction Center
(CIC), a web-based customer contact management application including
telemarketing, marketing and customer support modules. Netgain CIC is scheduled
for general release later in the year. The Company continues to sell, service
and support its client/server products, TakeControl(R), TakeControl Today, and
Firstwave for Unix, which include Sales, Marketing, and Customer Support
modules.


RESULTS OF OPERATIONS

Total revenues decreased 27.8% from $3,738,000 in the second quarter of 1998 to
$2,700,000 in the second quarter of 1999 and year to date total revenues
decreased 16.1% from $7,348,000 in 1998 to $6,162,000 in 1999 primarily due to
decreases in license fees and professional services. Software revenues
decreased 57.9% from $868,000 in the second quarter of 1998 to $365,000 in the
second quarter of 1999, and year to date decreased 29.8% from $2,187,000 in
1998 to $1,536,000 in 1999. The lower license revenues are attributed to the
slower than expected ramp-up of revenues from the first component of the new
product line suite, Netgain Sales, and lower revenues from the TakeControl
product line. The Company's quarter-to-quarter revenues are also significantly
dependent upon the timing of the closing of license agreements.

Revenues from international license revenues decreased 55.5% from $550,000 in
the second quarter of 1998 to $245,000 in the corresponding quarter of 1999.
Year to date, revenues from international licenses decreased 41.9% from
$1,760,000 in 1998 to $1,023,000 in 1999. As a percentage of total revenues,
international license revenues decreased from 14.7% in the second quarter of
1998 to 9.1% in second quarter of 1999, and year to date decreased as a
percentage of total revenues from 24.0% in 1998 to 16.6% in 1999. These
decreases are the result of lower sales by international distributors. During
the second quarter of 1999 total revenues generated from sales in the United
Kingdom were 40.3% of total revenue.

                                       8
<PAGE>   9

Services revenues decreased 31.0% from $1,376,000 in the second quarter of 1998
to $950,000 in the second quarter of 1999, and year to date decreased 15.7%
from $2,265,000 in 1998 to $1,909,000 in 1999. The decreases in services
revenues are consistent with the decreases in software license revenues as the
Company typically provides separate implementation and training services at the
time of software sales.

Maintenance revenues remained fairly consistent with $1,301,000 in the second
quarter of 1998 and $1,288,000 in the second quarter of 1999, and year to date,
at $2,604,000 for the first six months of 1998 compared to $2,521,000 for the
first six months of 1999. Maintenance revenues are the result of renewal
agreements from previous software license sales. These annual agreements
demonstrate the long term value of the Company's products.

Cost of software revenues increased 10.4% from $173,000 in the second quarter
of 1998 to $191,000 in the second quarter of 1999. Year to date, cost of
software revenues increased 16.5% from $340,000 in 1998 to $396,000 in 1999.
These increases are a result of an increase in third party software costs
associated with the Netgain Enterprise product line and an increase in
amortization of capitalized software associated with the development of Netgain
Enterprise. Cost of software revenues include costs of third party software,
amortization of capitalized software costs and costs of packaging and
documentation materials and related media costs.

Cost of revenues for services decreased 40.2% from $1,001,000 in the second
quarter of 1998 to $599,000 in the second quarter of 1999 and year to date,
decreased 28.4% from $1,720,000 in 1998 to $1,232,000 in 1999 due to decreases
in the number of service personnel and related costs. The decrease in personnel
and associated costs is due to changes implemented by management and reflect
the impact of lower services and license revenues. Cost of revenues for
maintenance decreased 18.1% from $431,000 in the second quarter of 1998 to
$353,000 in the second quarter of 1999. Year to date, cost of revenues for
maintenance decreased 20.9% from $827,000 in 1998 to $654,000 in 1999. These
decreases in cost of maintenance are primarily due to a decrease in
international maintenance costs from the acquisition of Firstwave UK.
Previously, while operating as a distributor, a portion of the maintenance
revenue was retained by the distributor and recorded as a cost of maintenance
by the Company. Now as a wholly owned subsidiary, the Company retains the full
amount of the maintenance revenue. There were also decreases in payroll and
related costs in this area.

Sales and marketing expense decreased 37.9% from $1,322,000 in the second
quarter of 1998 to $821,000 in the second quarter of 1999. Year to date, sales
and marketing expense decreased 27.2% from $3,021,000 in 1998 to $2,200,000 in
1999. The decreases were due to decreases in commissions associated with the
decrease in software license revenues, decreases in marketing expenses
associated with a more focused marketing plan, and decreases in payroll and
related costs.

The Company's product innovation and development expenditures increased 53.9%
from $564,000 in the second quarter of 1998 to $868,000 in the second quarter
of 1999.


                                       9
<PAGE>   10

Year to date, product innovation and development expenditures increased 68.6%
from $1,089,000 in 1998 to $1,836,000 in 1999. These increases are related to
increased development efforts on the Netgain Enterprise and TakeControl Today
products. Software development costs capitalized during the three months and
six months ended June 30, 1999 were $476,000 and $820,000 respectively. No
capitalization occurred during the comparative periods of 1998.

General and administrative expenses decreased 16.9% from $791,000 in the second
quarter of 1998 to $657,000 in the second quarter of 1999. Year to date,
general and administrative expenses increased 23.5% from $1,406,000 in 1998 to
$1,736,000 in 1999. The quarterly decrease is due to decreases in bad debt
expense, lower administrative expenses related to overall reduced staff levels,
and a decrease in professional fees. The year to date increase is associated
with the April 30, 1998 acquisition of Co-cam UK (now Firstwave UK) and the
costs associated with maintaining the London office.

Interest income decreased 55.7% from $61,000 in the second quarter of 1998 to
$27,000 in the second quarter of 1999 and year to date decreased 60.9% from
$115,000 in 1998 to $45,000 in 1999. These decreases are due to fluctuations in
invested cash balances.

The above factors combined to result in a 44.8% decrease in the net loss from
$717,000 in the second quarter of 1998 to a net loss of $396,000 in the second
quarter of 1999, and a net loss per share of $.14 for the second quarter of
1998 compared to a net loss per share of $.08 for the second quarter of 1999.
Year to date, net loss decreased 4.2% from $1,290,000 in 1998 compared to
$1,236,000 in 1999. Year to date, net loss per share decreased 4.0% from $0.25
per share in 1998 compared to $0.24 per share in 1999. The net loss per share
amount for the quarter ended June 30, 1999 also includes dividends of $30,000
accrued on preferred stock.


BALANCE SHEET

Net accounts receivable decreased 49.1% from $3,146,000 at December 31, 1998 to
$1,600,000 at June 30, 1999 due to collection of outstanding receivables and
decreased revenues. Property and equipment decreased 30.4% from $1,501,000 at
December 31, 1998 to $1,044,000 at June 30, 1999, due to year to date
depreciation and write-offs of obsolete computer equipment. Capitalized
software increased 69.5% from $770,000 at December 31, 1998 to $1,305,000 at
June 30, 1999 due to additional capitalization of $820,000 in development costs
during the first six months of 1999 net of $285,000 of amortization. Accounts
payable decreased 28.2% from $1,354,000 at December 31, 1998 to $972,000 at
June 30, 1999 consistent with the decrease in operating expenses during the
first six months of 1999. Deferred revenue decreased 29.9% from $1,581,000 at
December 31, 1998 to $1,109,000 at June 30, 1999 primarily due to the
recognition of six months of maintenance revenues related to annual contracts
billed in advance at year end. Other accrued liabilities decreased 40.2% from
$343,000 at December 31, 1998 to $205,000 at June 30, 1999 due to lower sales
and VAT tax payable consistent with lower revenues during the first six months
of 1999.


                                      10
<PAGE>   11

LIQUIDITY AND CAPITAL RESOURCES

The Company issued to two officers an aggregate of 20,000 shares of Series A
Preferred Stock for $2 million during the second quarter of 1999. As a result,
at June 30, 1999, the Company had cash and cash equivalents of $3,435,000
compared to $2,245,000 at December 31, 1998. Management believes that its
present liquidity position, recent equity infusions and the available line of
credit are sufficient to finance the Company's operations during 1999 and
beyond. The Company's primary non-operating use of cash during the six-month
period ending June 30, 1999 consisted of $820,000 for the continued development
of its software products. During the first quarter of 1999, the Company renewed
its $3,000,000 line of credit for another one-year term, which now expires
March 14, 2000. The line of credit bears interest at the prime rate and is
secured by the assets of the Company. As of June 30, 1999 there were no
borrowings against the line of credit.


YEAR 2000

The Company's current product lines are year 2000 compliant. However, some of
the Company's customers are running older product versions that are not year
2000 compliant. All of the Company's customers have been notified of the
availability of a year 2000 compliant version of the Company's product they are
running and the Company has been encouraging its customers to migrate to
current product versions. Although the Company has designed and tested the most
current versions of its products to be year 2000 compliant, there can be no
assurance that they do not contain undetected errors or other defects
associated with year 2000 date functions.

 A year 2000 evaluation was completed during 1998 to assess the Company's year
2000 readiness related to its internal systems. As of June 30, 1999 all
critical systems are now compliant and the Company is 98% complete in bringing
the balance of internal systems into compliance. Although the cost associated
with completing year 2000 readiness for the Company's internal systems has been
determined to be immaterial, there can be no assurance that the Company will
not experience unanticipated consequences caused by undetected errors or
defects in the technology used in its internal systems, which are composed of
third party software and hardware. The Company is in the process of
implementing contingency plans and business resumption plans that will be
completed during the remainder of fiscal 1999.


SUBSEQUENT EVENT

On August 6, 1999 a venture capital firm invested $1,500,000 in a private
placement of 500,000 shares of unregistered common stock of the Company.





                                      11
<PAGE>   12



PART II.  OTHER INFORMATION


Item 1.    Legal Proceedings

         Not Applicable

Item 2.    Changes in Securities

         During the second quarter of 1999 the Company raised $2,000,000
         through the sale of Series A Convertible Preferred Stock in a private
         placement to accredited investors pursuant to Section 4(2) and Rule
         506 under the Securities Act of 1933. The Company received $1,000,000
         in March 1999 and $1,000,000 in April 1999 related to this offering.
         The Preferred Stock is convertible into Common Stock of the Company at
         anytime after April 26, 2000, at a conversion rate of $2.06 per share
         of Common Stock.


Item 3.    Defaults Upon Senior Securities

         Not applicable


Item 4.    Submission of Matters to a Vote of Security Holders

         Not applicable


Item 5.    Other Information

         Not applicable


Item 6.    Exhibits and Reports on form 8-K

         Exhibit 27 - Financial Data Schedule (for SEC purposes only)




                                      12


<PAGE>   13
                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    FIRSTWAVE TECHNOLOGIES, INC.


DATE:   August 10, 1999             /s/ Judith A. Vitale
                                    -------------------------------------------
                                    Judith A. Vitale
                                    Vice President of Finance and Administration






                                      13