Exhibit 13.1

                             Message To Shareholders

                                                                   April 1, 2000

Dear Fellow Shareholders:

1999 was a "stumbling  block"  after four prior years of growth in revenues.  As
announced  early  in  1999,  our  business  in  data  acquisition  circuits  for
geophysical exploration with Chesapeake Sciences Corp. came to an abrupt halt in
mid-February  of 1999 and has become a much  smaller  component  of our business
since that time. While we anticipate  additional future business in this market,
there  is  currently  no  reliable   indication  as  to  when  this  may  occur.
Accordingly,  our efforts  during  1999 have been  focused on  capturing  repeat
business   from  other   existing   customers   and   developing   new  customer
opportunities.

Financial Performance
---------------------

For the fourth quarter of 1999, Hytek reported a net loss of $137,000,  or $0.05
per  share,  on  revenues  of $1.2  million.  This  compares  with a net loss of
$169,000, or $0.06 per diluted share, on revenues of $2.2 million for the fourth
quarter of fiscal 1998.

For the year ended January 1, 2000,  net losses were $1.1 million,  or $0.37 per
share,  on revenues of $5.2 million,  as compared to net income of $2.1 million,
or $0.66 per diluted  share,  on  revenues  of $12.5  million for the prior year
ended  January  2, 1999.  Revenues  attributable  to  Chesapeake  Sciences  were
slightly  over  one-half  million  dollars in fiscal 1999 as compared to over $8
million in fiscal 1998.

Markets and Applications
------------------------

During 1999,  approximately  63% of Company revenues were derived from military,
aerospace or government  funded  programs.  Applications  within this market are
many  and  varied.   Examples  of  "mil-aero"   applications  include  cryogenic
controllers,  circuits for inertial  guidance  systems,  control and  monitoring
circuits  for  underwater  re-breathing  apparatus,  video  circuits  and  power
regulation  and  control  circuits in  satellite  systems.  We believe  that the
military and aerospace market will remain stable for the foreseeable  future and
are committed to maintaining an active and aggressive position in the market.

In the  commercial  arena,  during 1999,  the Company  began  production  volume
shipments  to a major  medical  device  manufacturer.  We  anticipate  increased
activity and additional customer opportunities in this market in the future.

1999  showed  significant  growth  in  the  Company's  Opto-Electronic  standard
products,  which include  Thermo-Electric  Cooler Controllers (TECC's) and Laser
Diode Drivers.  Applications  for these products  include fiber optic  networks,
"free space" data transmission and certain "detector"  product markets.  We feel
there is  significant  opportunity  for growth in this area and intend to pursue
development of additional new products and customers.  Overall, during 1999, the
Company's standard products,  which also include digital delay-lines,  accounted
for  approximately  15% of total 1999 revenues,  a significant  increase in both
percentage and real dollars over the prior year.

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Processes and Technology
------------------------

The Company's traditional  technology has utilized thick-film ceramic substrates
combined with "chip and wire"  assembly  processes  and hermetic  sealing of the
packaged  circuits.  In 1998, we expanded our  technology  base by utilizing Low
Temperature Co-fired Ceramic (LTCC) substrates in certain applications requiring
higher circuit density. As new market and customer opportunities evolve, new and
expanded  process  and  technology  approaches  will be  required  to meet these
opportunities.  The Company will continue to expand its processes and technology
base  through   investment  in  personnel  and  equipment  in  situations  where
additional market expansion and a positive return to shareholders can result.

Going Forward
-------------

1999 is behind us, and while we have  emerged  with some scars and  bruises,  we
believe  that the  worst is over.  We begin  the year  2000  with a strong  cash
position,  a  contractual  agreement in place to recover our  investment  in the
Chesapeake program and a positive outlook for growth in both custom and standard
products.  Hytek's  management  and  staff  are  committed  to  growth  over the
long-term and increasing shareholder value as we progress.


We deeply appreciate the loyalty and support of our shareholders,  customers and
employees and look forward to a positive return for all in the future.


                                           Sincerely yours,


                                           Charles S. (Chuck) Byrne
                                           President and Chief Executive Officer