<PAGE>   1



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

(Mark One)

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended                 September 30, 1999
                               ------------------------------------------------

                                       or

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ________________ to ____________________

Commission File Number:               001-8988
                       ---------------------------------------------------------


                             ECC International Corp.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                                         <C>
                           Delaware                                                     23-1714658
---------------------------------------------------------------------------------------------------------------
(State or other jurisdiction of incorporation or organization)              (I.R.S. Employer Identification No.)


2001 West Oak Ridge Road, Orlando, FL                                                   32809-3803
---------------------------------------------------------------------------------------------------------------
(Address of principal executive offices)                                                (Zip Code)
</TABLE>


                                 (407) 859-7410
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


                                 Not Applicable
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


     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 twelve 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.

                                                 [ X ] Yes     [   ] No

     As of September 30, 1999, there were 8,423,805 shares of the Registrant's
Common Stock, $.10 par value per share, issued and outstanding.


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

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

<PAGE>   2


                          PART I. FINANCIAL STATEMENTS
                          ITEM 1. FINANCIAL STATEMENTS

                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                      (In Thousands Except Per Share Data)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                       Three Months          Three Months
                                                                           Ended                 Ended
                                                                          9/30/99               9/30/98
                                                                       ------------          ------------
<S>                                                                      <C>                <C>
Net Sales                                                                $ 10,188           $  10,411

Cost of Sales                                                               7,225               7,987
                                                                         --------           ---------

Gross Profit                                                                2,963               2,424
                                                                         --------           ---------

Expenses:
   Selling, General & Administrative                                        2,024               3,061
   Independent Research and Development                                        41                 520
   Non-Recurring Expenses                                                      --               1,166
                                                                         --------           ---------
      Total Expenses                                                        2,065               4,747
                                                                         --------           ---------

Operating Income/(Loss)                                                       898              (2,323)
                                                                         --------           ---------

Other Income/(Expense):
   Interest Income                                                             12                  75
   Interest Expense                                                          (209)               (244)
   Other - Net                                                               (128)                104
                                                                         ---------          ---------

      Total Other Expense                                                    (325)                (65)
                                                                         --------           ---------

Income/(Loss) Before Income Taxes                                             573              (2,388)

Benefit for Income Taxes                                                       --                (604)
                                                                         --------           ---------

Net Income/(Loss)                                                        $    573           $  (1,784)
                                                                         ========           =========

Income/(Loss) Per Common Share - Basic and
   Assuming Dilution:

Net Income/(Loss) Per Common Share-Basic                                 $   0.07           $   (0.21)
                                                                         =========          =========

Net Income/(Loss) Per Common Share-Dilutive                              $   0.07           $   (0.21)
                                                                         =========          =========
</TABLE>

        See accompanying notes to the consolidated financial statements.


                                       2
<PAGE>   3

                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                      Three Months         Three Months
                                                         Ended                Ended
                                                        9/30/99              9/30/98
                                                      ------------         ------------
<S>                                                    <C>                  <C>
Net Income/(Loss)                                      $     573            $  (1,784)
Other Comprehensive Expense:
   Foreign Currency Translation Adjustments                   --                 (125)
                                                       ---------            ---------

      Total Comprehensive Income/(Loss)                $     573            $  (1,909)
                                                       =========            =========
</TABLE>



         See accompanying notes to the consolidated financial statements



                                       3
<PAGE>   4


                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)

<TABLE>
<CAPTION>
                                                    (Unaudited)       (Audited)
                                                      9/30/99          6/30/99
                                                    -----------       ---------
<S>                                                   <C>             <C>
ASSETS

Current Assets:
   Cash                                               $     --        $  1,485
   Accounts Receivable                                   5,271           4,738
   Cost and Estimated Earnings in Excess
      of Billings on Uncompleted Contracts              18,298          18,494
   Inventories                                           4,588           4,311
   Prepaid Expenses and Other                              644             755
                                                      --------        --------

      Total Current Assets                              28,801          29,783

Property, Plant and Equipment - Net                     17,998          18,273

Other Assets                                               791             657
                                                      --------        --------

      Total Assets                                    $ 47,590        $ 48,713
                                                      ========        ========
</TABLE>






                                                                    Continued...


                                       4
<PAGE>   5


                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (Continued)
                 (In Thousands Except Share and Per Share Data)

<TABLE>
<CAPTION>
                                                                        (Unaudited)      (Audited)
                                                                          9/30/99         6/30/99
                                                                        -----------      ---------
<S>                                                                      <C>              <C>
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
     Current Portion of Long-Term Debt                                   $  6,791         $  6,424
      Accounts Payable                                                      2,099            2,917
      Accrued Expenses and Other                                            6,550            7,379
                                                                         --------         --------
         Total Current Liabilities                                         15,440           16,720

Deferred Income Taxes                                                         507              507
Other Long-Term Liabilities                                                   950            1,399

COMMITMENTS AND CONTINGENCIES

Stockholders' Equity:
     Preferred Stock, $.10 par; 1,000,000
        shares authorized; none issued and
        outstanding at 9/30/99 and 6/30/99
     Common Stock, $.10 par; 20,000,000                                        --               --
        shares authorized; issued and outstanding,
        8,423,805 shares at 9/30/99 and
        8,412,165 at 6/30/99                                                  842              841

Note Receivable from Stockholder                                             (146)            (146)
Capital in Excess of Par                                                   25,037           25,005
Retained Earnings                                                           4,960            4,387
                                                                         --------         --------

      Total Stockholders' Equity                                           30,693           30,087
                                                                         --------         --------

      Total Liabilities & Stockholders' Equity                           $ 47,590         $ 48,713
                                                                         ========         ========
</TABLE>


        See accompanying notes to the consolidated financial statements.



                                       5
<PAGE>   6

                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                           FOR THE THREE MONTHS ENDED
                           SEPTEMBER 30, 1999 AND 1998
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               Three Months    Three Months
                                                                  Ended           Ended
                                                                 9/30/99         9/30/98
                                                               ------------    ------------
<S>                                                              <C>             <C>
Cash Flows From Operating Activities:

Net Income/(Loss)                                                $    573        $(1,784)
Items Not Requiring Cash:
   Depreciation                                                       972          1,014
   Amortization                                                        66             --
Changes in Certain Assets and Liabilities:
   Accounts Receivable                                               (533)         1,407
   Costs and Estimated Earnings in Excess
      of Billings on Uncompleted Contracts                            196            (78)
   Inventories                                                       (277)          (207)
   Prepaid Expenses and Other                                          (2)          (570)
   Accounts Payable                                                  (818)          (866)
   Advances on Long-Term Contracts                                     --           (476)
   Accrued Expenses and Other Long-Term Liabilities                (1,534)           873
                                                                 --------        -------

Net Cash Used In Operating Activities                              (1,357)          (687)
                                                                 --------        -------

Cash Flows From Investing Activities:
   Additions to Property, Plant and Equipment                        (413)          (749)
   Other                                                               --            348
                                                                 --------        -------

Net Cash Used In Investing Activities                                (413)          (401)
                                                                 --------        -------

Cash Flows From Financing Activities:
   Proceeds From Issuance of Common Stock and
      Options Exercised                                                 5             --
   Financing Charges Incurred on Revolving Credit Facility            (87)
   Repayments Under Revolving Credit Facility                     (10,807)            --
   Borrowings Under Revolving Credit Facility                      11,174             --
                                                                 --------        -------

Net Cash Provided by Financing Activities                             285             --
                                                                 --------        -------

Net Decrease in Cash                                               (1,485)        (1,088)

Cash at Beginning of the Period                                     1,485          4,830
                                                                 --------        -------

Cash at End of the Period                                        $     --        $ 3,742
                                                                 ========        =======
</TABLE>
                                                                 Continued ...
                                       6

<PAGE>   7


                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                           FOR THE THREE MONTHS ENDED
                     SEPTEMBER 30, 1999 AND 1998 (Continued)
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                       Three Months      Three Months
                                                                           Ended             Ended
                                                                          9/30/99           9/30/98
                                                                       ------------      ------------
<S>                                                                          <C>              <C>
Supplemental Disclosure of Cash Flow Information:
Cash Paid During the Year For:
   Interest                                                                  $143             $248

Supplemental Schedule of Non Cash Financing Activities:
   Issuance of Director Equity Compensation                                  $ 28             $ 23
   Purchase of Fixed Assets Through Capital Leases                           $284             $ --
</TABLE>




        See accompanying notes to the consolidated financial statements.



                                       7
<PAGE>   8


                    ECC INTERNATIONAL CORP. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

1.   The accompanying financial statements are unaudited and have been prepared
     by ECC International Corp. (the "Company") pursuant to the rules and
     regulations of the Securities and Exchange Commission. The June 30, 1999
     consolidated balance sheet was derived from audited financial statements
     but does not include all disclosures required by generally accepted
     accounting principles. In the opinion of management the accompanying
     unaudited consolidated financial statements contain all adjustments,
     consisting of only normal recurring adjustments, necessary to present
     fairly the consolidated financial position, results of operations,
     comprehensive income and cash flows for the interim period presented. These
     unaudited consolidated financial statements should be read in conjunction
     with the consolidated financial statements and footnotes thereto in the
     Company's Annual Report on Form 10-K for the fiscal year ended June 30,
     1999.

2.   The new revolving credit facility requires all cash receipts to be applied
     directly to the debt resulting in a zero cash balance at September 30,
     1999.

3.   Inventories

<TABLE>
<CAPTION>
                                                     (in Thousands)
                                                9/30/99          6/30/99
                                                -------          -------
<S>                                             <C>              <C>
     Work in Process                            $1,670           $1,180
     Raw Materials                               2,918            3,131
                                                ------           ------

        Total                                   $4,588           $4,311
                                                ======           ======
</TABLE>

     Work in process inventory is valued using the specific identification cost
     method, but not in excess of net realizable value. Raw materials are valued
     at the lower of average cost or market.

4.   Debt

     On June 24, 1999, the Company entered into a revolving credit facility with
     a bank totaling $12.5 million and expiring on June 24, 2003. Available
     borrowings, which are based on a formula to receivables and property, as
     defined in the revolving credit facility, were approximately $2.2 million
     at September 30, 1999.

     The revolving credit facility includes a subjective acceleration clause as
     well as a lockbox requirement under the control of the lender, whereby all
     collections of trade receivables are used to immediately reduce the balance
     of the revolving credit facility. As such, the outstanding balance of
     approximately $6.8 million at September 30, 1999 is included in the Current
     Portion of Long-Term Debt on the Consolidated Balance Sheet.

5.   Non-Recurring Expenses

     During fiscal year 1999, the Company implemented various cost reduction
     initiatives and changes in management including the relocation of the
     corporate headquarters and


                                       8

<PAGE>   9

     Instructional System Development Group from Wayne, Pennsylvania to the
     Company's principal System Design and Production Center in Orlando,
     Florida. The relocation was completed in September 1998. In addition, as a
     result of recurring net losses in the UK operations, the Board of Directors
     announced, during the first quarter of fiscal year 1999, the approval of a
     plan to wind-down and discontinue the UK operations, which was completed in
     May 1999. These initiatives resulted in non-recurring charges of
     approximately $1.2 million during the three-month period ended September
     30, 1998. There were no additional charges during the first quarter of
     fiscal year 2000.

     The following table sets forth the details and the cumulative activity in
     the various accruals associated with the wind-down of the UK operations and
     relocation of the Wayne Office in the Consolidated Balance Sheet at June
     30, 1999 and September 30, 1999.

<TABLE>
<CAPTION>
                                                                         (in Thousands)
                                                               Cash Reduction          Non-Cash
                                                     6/30/99       Payments            Activity          9/30/99
                                                     -------       --------            --------          -------

<S>                                                  <C>            <C>                 <C>               <C>
       Severance                                     $  36          $ (36)              $  --             $  --
       Facility Lease Obligations                      567           (283)                 25               309
       Other                                            16            (16)                 --                --
                                                     -----          -----               -----              ----

          Total                                      $ 619          $(335)              $  25             $ 309
                                                     =====          =====               =====             =====
</TABLE>


     The accrual for non-recurring expenses is included in/or classified as
     follows on the Consolidated Balance Sheet.

     Accrued Expenses and Other           $206
     Other Long-Term Liabilities          $103

6.   Business Segment Information

     The Company operates in one segment-training. This segment includes the
     design and manufacture of training simulators.

<TABLE>
<CAPTION>
     Sales by Class of Customer
                                                                (In Thousands)
                                                             9/30/99       9/30/98
                                                             -------       -------
<S>                                                          <C>           <C>
       U.S. Department of Defense
          Direct                                             $ 2,002       $   521
          Subcontract                                          8,186         7,504
                                                             -------       -------
             Total U.S. Department of Defense                 10,188         8,025
                                                             -------       -------
       Foreign Governments                                        --         1,736
       Foreign Commercial                                         --           650
                                                             -------       -------
             Total Foreign                                        --         2,386
                                                             -------       -------

             Total Sales                                     $10,188       $10,411
                                                             =======       =======
</TABLE>


                                       9
<PAGE>   10


     Export Sales from the U.S. were not material for the quarter ended
     September 30, 1999 as compared to $2,386,000 for the quarter ended
     September 30, 1998. Export sales do not include Foreign Military Sales
     through U.S. Government agencies and prime contractors of $197,000 and
     $453,000 in the quarters ended September 30, 1999 and 1998, respectively.

     Since a substantial portion of the Company's revenues are attributable to
     long-term contracts with various government agencies, any factor affecting
     procurement of long-term government contracts such as changes in government
     spending, cancellation of weapons programs and delays in contract awards
     could have a material impact on the Company's financial condition and
     results of operations.

     Sales by Geographic Area
<TABLE>
<CAPTION>
                                                 (In Thousands)
                                        United     Europe and
                                        States     Middle East    Consolidated
                                        ------     -----------    ------------
<S>                                    <C>          <C>              <C>
     Revenues
     9/30/99                           $10,188      $   --           $10,188
     9/30/98                             8,025       2,386            10,411
     Operating (Loss)/Income
     9/30/99                               898          --               898
     9/30/98                            (1,712)       (611)           (2,323)
     Long-Lived Assets
     9/30/99                            17,998          --            17,998
     6/30/99                            18,273          --            18,273
</TABLE>

7.   Earnings Per Share

     Basic earnings/(loss) per common share is computed by dividing net
     earnings/(loss) available to common shareholders by the weighted-average
     number of common shares outstanding during the period. Diluted
     earnings/(loss) per share is computed by dividing net earnings/(loss)
     available to common shareholders by the weighted-average number of common
     shares outstanding during the period adjusted for the number of shares that
     would have been outstanding if the dilutive potential common shares had
     been issued. The diluted earnings/(loss) per share does not assume the
     exercise of options that would have an antidilutive effect on
     earnings/(loss) per share.

     The weighted-average number of common shares outstanding for each period
     presented is as follows:

<TABLE>
<CAPTION>
                                          Three-Month Ended
                                  9/30/99                   9/30/98
                                  -------                   -------
<S>                              <C>                        <C>
     Basic                       8,412,602                  8,329,589
     Dilutive                    8,465,197                  8,329,589
</TABLE>


                                       10

<PAGE>   11

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

     OVERVIEW

     This Quarterly Report on Form 10-Q contains forward-looking statements
     within the meaning of Section 21E of the Securities Exchange Act of 1934,
     as amended, and Section 27A of the Securities Act if 1933, as amended. For
     this purpose, any statements contained herein that are not statements of
     historical fact may be deemed to be forward-looking statements. Without
     limiting the foregoing, the words "believes," "anticipates," "plans,"
     "expects," and similar expressions are intended to identify forward-looking
     statements. There are a number of factors that could cause the Company's
     actual results to differ materially from those indicated by such
     forward-looking statements. These factors include, without limitation,
     those set forth below under the caption "Certain Factors That May Affect
     Future Operating Results."

a)   MATERIAL CHANGES IN FINANCIAL CONDITION

     During the three-month period ended September 30, 1999, the Company's
     principal sources of cash were borrowings under the revolving credit
     facility and collections on accounts receivable, which are applied directly
     toward the revolving credit facility balance. (See Note 2 to the
     Consolidated Financial Statements.) The principal uses of these funds were
     to make vendor and payroll payments, lease termination and contract
     novation payments, as well as investments in capital assets.

     The cash balance decreased due to the new revolving credit facility
     arrangement where all cash receipts are applied directly to pay down the
     outstanding loan balance. (See Note 2 to the Consolidated Financial
     Statements.)

     Accounts Receivable increased primarily due to billings on the Company's
     domestic training contracts including the CCTT LRIP, Javelin multi-year and
     EST programs.

     Prepaid Expenses and Other decreased primarily due to the amortization of
     annual group insurance premiums.

     Other Assets increased primarily as a result of deferred charges recorded
     for the revolving credit facility during the three-month period ended
     September 30, 1999.

     Accounts Payable decreased primarily due to improvement in payment cycles
     supported by the revolving credit facility.

     Accrued expenses decreased primarily as a result of lease termination
     payments made associated with the wind down of the UK division. (See Note 5
     to the Consolidated Financial Statements).

     Other Long-Term Liabilities decreased due to payments on UK contract
     novations and lease terminations associated with the wind down of the UK
     operations.


                                       11

<PAGE>   12

     During the remainder of fiscal year 2000, the Company anticipates spending
     approximately $800,000 for new machinery and equipment and to continue to
     refurbish the Orlando facility.

     Other than as stated above, the Company currently has no other material
     commitments for capital expenditures. Management believes that with the
     funds available under its new revolving credit facility and its projected
     cash flow, the Company will have sufficient resources to meet planned
     operating commitments for the foreseeable future.

b.)  MATERIAL CHANGES IN RESULTS OF OPERATIONS

     Net sales did not change significantly for the three-month period ended
     September 30, 1999 as compared to the same period ended September 30, 1998,
     however, the UK sales volume declined by $2.4 million as a result of the UK
     operations wind-down while domestic volume increased by $2.2 million.

     Overall gross profit as a percentage of net sales increased to 29 percent
     for the three-month period ended September 30, 1999 as compared to 23
     percent for the same period ended September 30, 1998. The increase is
     primarily a result of improved levels of gross margin on ongoing programs
     including Javelin, CCTT and AGTS. In addition, the Company's cost reduction
     initiatives during fiscal year 1999 and the first quarter of fiscal year
     2000 have reduced overhead costs, thus improving gross margins.

     Selling, general and administrative expense decreased 34 percent during the
     three-month period ended September 30, 1999 as compared to the same period
     ended September 30, 1998. This decrease is primarily as a result of cost
     cutting initiatives during fiscal year 1999, particularly in the areas of
     executive salaries, legal fees and outside marketing representatives.

     Independent Research and Development expense decreased 92 percent during
     the three-month period ended September 30, 1999 as compared to the same
     period ended September 30, 1998 due to the timing of planned developments
     in fiscal year 2000.

     Non-Recurring Expenses decreased 100 percent during the three-month period
     ended September 30, 1999 as compared to the same period ended September 30,
     1998. This decrease is primarily the result of the wind down of the UK
     operations and the relocation of the corporate headquarters, both of which
     were completed in fiscal year 1999. No additional charges are anticipated
     in fiscal year 2000. (See note 5 to the Consolidated Financial statements.)

     Other-Net decreased primarily as a result of translation losses on foreign
     exchange transactions.

     The Company did not record a tax provision during the first quarter of
     fiscal year 2000 as Net Operating Loss Carryforwards will be utilized for
     current income.



                                       12
<PAGE>   13

c)   CERTAIN FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS

     The following important factors, among others, could cause actual results
     to differ materially from those indicated by forward-looking statements
     made in this Quarterly Report on Form 10-Q and presented elsewhere by
     management from time to time. All forward-looking statements included in
     this document are based on information available to the Company on the date
     hereof, and the Company assumes no obligation to update any such
     forward-looking statements.

     A number of uncertainties exist that could affect the Company's future
     operating results, including, without limitation, general economic
     conditions, changes in government spending, cancellation of weapons
     programs, delays in contract awards, delays in the acceptance process of
     contract deliverables, the Company's continued ability to develop and
     introduce products, the introduction of new products by competitors,
     pricing practices of competitors, the cost and availability of parts and
     the Company's ability to control costs.

     To date, a substantial portion of the Company's revenues have been
     attributable to long-term contracts with various government agencies. As a
     result, any factor adversely affecting procurement of long-term government
     contracts could have a material adverse effect on the Company's financial
     condition and results of operations.

     Because of these and other factors, past financial performance should not
     be considered an indication of future performance. The Company's future
     quarterly operating results may vary significantly. Investors should not
     use historical trends to anticipate future results and should be aware that
     the trading price of the Company's Common Stock may be subject to wide
     fluctuations in response to quarterly variations in operating results and
     other factors, including those discussed above.

     YEAR 2000 ISSUE

     The "Year 2000" problem relates to computer systems that have time and
     date-sensitive programs that were designed to read years beginning with
     "19", but may not properly recognize the year 2000. If a computer system or
     software application used by the Company or a third party dealing with the
     Company fails because of the inability of the system or application to
     properly read the year "2000" the results could conceivably have a material
     adverse effect on the Company if not adequately remedied by the Company,
     its suppliers and customers on a timely basis.

     The Company has formally addressed the Year 2000 Issue since November 1997
     when a Year 2000 Compliance Program was initiated. A complete evaluation
     was made on all internal systems, including voice mail, automated badge
     entry, e-mail, payroll, accounting, facilities and products. In addition,
     the Company is working with its prime contractors to identify year 2000
     problems that may affect the integration of the Company's product with
     those of the prime contractors. The Company will work with its prime
     contractors to remediate any problems as they are identified.


                                       13

<PAGE>   14


     For its information technology, the Company currently utilizes a network of
     Unix and Windows NT platforms, which provide company-wide access to all of
     the Company's business application programs. Employees access the network
     application software through individual PC's (approximately 400), all of
     which are compliant. All Company network operating systems and
     substantially all operating systems on individual workstations have been
     updated to comply with Year 2000 requirements. Periodically, new
     application programs and updated versions of existing programs are added to
     the system. The Company has a policy to accept only Year 2000 compliant
     software and has instituted an ongoing program to confirm that all new
     software programs are compliant with Year 2000 requirements. The Company is
     currently performing a final re-verification test of all systems as part of
     that ongoing program. Further, the Company has recently replaced all
     central core components of its network and all satellite switching cabinets
     with Year 2000 compliant Lucent Technologies Cajun 550 series switch
     routers. Although there can be no assurance that the Company will identify
     and correct every Year 2000 problem found in its computer applications, the
     Company believes that it has in place a comprehensive program to identify
     and correct such problems.

     The Company has reviewed its building and utility systems (heat, light,
     phones, etc.) for the impact of Year 2000. All of the internal systems in
     this area are Year 2000 ready. While the Company has no reason to believe
     that its utility suppliers will not meet their required Year 2000
     compliance targets, there can be no assurance that these suppliers will in
     fact meet the Company's requirements. The failure of any such supplier to
     fully remediate its systems for Year 2000 compliance could cause a partial
     shutdown of the Company's plant, which could impact the Company's ability
     to meet its obligations to supply products to its customers.

     The Company is satisfied that its customer base is aware of the Year 2000
     issue and is proactively working to ensure that there are no problems
     associated with the Year 2000. The Company is aware of this because all
     major customers have asked the Company for its Year 2000 status. In the
     process, they have revealed their Year 2000 plans and stated that they are
     actively engaged in solving any problems.

     The Company also previously commenced a program to determine the Year 2000
     compliance efforts of its equipment and material suppliers. The Company has
     sent requests to all of its significant suppliers regarding their Year 2000
     compliance, requesting that they warrant their ability to provide services
     and supplies in the Year 2000. More than half of the suppliers have
     warranted their ability to provide supplies in the Year 2000, and the
     remainder have presented a plan to have their company compliant by the end
     of calendar year 1999. This program will be ongoing and the Company's
     efforts with respect to specific problems identified will depend in part
     upon its assessment of the risk that any such problems may cause the
     shutdown of a supplier's plant or its operations. Unfortunately, the
     Company cannot fully control the conduct of its suppliers, and there can be
     no guarantee that Year 2000 problems, originating with a supplier, will not
     occur. The Company has developed contingency plans in the event of a Year
     2000 failure caused by a supplier or third party. In some cases, especially
     with respect to its utility vendors, alternative suppliers may not be
     available. The Company has made arrangements to have key personnel
     continuously on-site during the transition from 1999 to 2000 to react
     immediately to any unforeseen failure.


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<PAGE>   15

     The Company believes the cost of Year 2000 compliance for its information
     and productions systems has not and will not exceed $25,000 and, therefore,
     is not material to its consolidated results of operations and financial
     position.

     If the Company does not become Year 2000 compliant in a timely manner, the
     Year 2000 issue could have a material impact on the business, financial
     condition and results of operations. Delays in Year 2000 compliance could
     also adversely affect the Company's reputation and competitive position and
     impair its ability to process customer transactions and orders and payments
     of supplier merchandise. The most reasonably likely worst case scenarios
     would include (1) corruption of data contained in the Company's internal
     information systems, (2) hardware failure and (3) the failure of
     infrastructure services provided by third parties (e.g. electricity, phone
     service, etc.). The Company has completed its contingency plan for high,
     medium, and low risk areas. The plans include, among other things, manual
     "work-arounds" for software and hardware failures, as well as substitutions
     of systems, if necessary.

     The foregoing shall be considered a Year 2000 readiness disclosure to the
     maximum extent allowed under the Year 2000 Information and Readiness
     Disclosure Act.


     ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Not Applicable.




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<PAGE>   16


                           PART II. OTHER INFORMATION

                             ECC INTERNATIONAL CORP.



Item 6.   EXHIBITS AND REPORTS ON FORM 8-K

          a.   Exhibits

               Exhibit 10.1 - Agreement dated September 16, 1999 by and between
               the Company, Steel Partners II, L.P. and Warren G. Lichtenstein.

               Exhibit 10.2 - Amendment No. 1 to Employment Agreement dated
               August 9, 1999 by and between the Company and James C. Garrett.

               Exhibit 10.3 - Amendment and Restated Non-Competition and
               Non-Solicitation Agreement dated August 9, 1999 by and between
               the Company and James C. Garrett.

               Exhibit 10.4 - Employment Agreement dated August 9, 1999 by and
               between the Company and Glenn Andrew.

               Exhibit 10.5 - Non-Competition and Non-Solicitation Agreement
               dated August 9, 1999 by and between the Company and Glenn Andrew.

               Exhibit 10.6 - Employment Agreement dated August 9, 1999 by and
               between the Company and Melissa Van Valkenburgh.

               Exhibit 10.7 - Non-Competition and Non-Solicitation Agreement
               dated August 9, 1999 by and between the Company and Melissa Van
               Valkenburgh

               Exhibit 27.1 - Financial Data Schedule for the three-month period
               ended September 30, 1999.

          b.   REPORTS ON FORM 8-K

               Not applicable



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<PAGE>   17


                                   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.




                                          ECC INTERNATIONAL CORP.




Date     November 10, 1999                /s/ Melissa Van Valkenburgh
    -----------------------------         -------------------------------------
                                          Melissa Van Valkenburgh
                                          Chief Financial Officer




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