<PAGE>   1

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

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

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

                                    FORM 10-Q

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

                 For the Quarterly Period Ended March 31, 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 0-18511

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


                                  MOSAIX, INC.
             (Exact name of registrant as specified in its charter)

          WASHINGTON                                  91-1273645
 (State or other jurisdiction              (IRS Employer Identification No.)
      of incorporation or
         organization)


          6464 185TH AVE. N.E.
          REDMOND, WASHINGTON                                     98052
(Address of principal executive offices)                        (Zip Code)

                                 (425) 881-7544
               (Registrant's telephone number including area code)

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 [ ]


Common stock, par value $0.01 per share: 10,542,797 shares outstanding as of
April 30, 1999.


                    Page 1 of 15 sequentially numbered pages.

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

<PAGE>   2


                          MOSAIX, INC. AND SUBSIDIARIES

                                    FORM 10-Q

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999

                                TABLE OF CONTENTS

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


<TABLE>
<CAPTION>
PART I: FINANCIAL INFORMATION                                             PAGE NO.
<S>       <C>                                                             <C>

Item 1.   Financial Statements                                               3

Item 2.   Management's Discussion and Analysis
          of Results of Operations and Financial Condition                   9

Item 3.   Quantitative and Qualitative Disclosure about Market Risk         13


PART II: OTHER INFORMATION

Item 1.   Legal Proceedings                                                 14

Item 4.   Submission of Matters to a Vote of Security Holders               14

Item 6.   Exhibits and Reports on Form 8-K                                  14

          Signature                                                         15

</TABLE>



<PAGE>   3




PART I:  FINANCIAL INFORMATION

ITEM 1.        FINANCIAL STATEMENTS

MOSAIX, INC. AND SUBSIDIARIES


 CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
(IN THOUSANDS)                                                  MARCH 31,       DEC. 31,
                                                                 1999             1998
                                                                -------         -------
                                                              (UNAUDITED)
<S>                                                             <C>             <C>    

ASSETS
Current assets:
      Cash, cash equivalents and short-term investments         $28,229         $28,554
      Trade accounts receivable, net                             29,503          30,837
      Inventories                                                   866             591
      Other current assets                                        6,412           5,665
                                                                -------         -------
           Total current assets                                  65,010          65,647

Furniture, equipment and leasehold improvements, net              7,740           7,672
Other assets                                                        575             739
                                                                -------         -------

      Total assets                                              $73,325         $74,058
                                                                =======         =======


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
      Accounts payable                                          $ 5,446         $ 5,301
      Accrued compensation                                        6,516           7,617
      Other accrued expenses                                      7,716           6,940
      Customer deposits and unearned revenue                      7,258           6,332
                                                                -------         -------
           Total current liabilities                             26,936          26,190

Shareholders' equity                                             46,389          47,868
                                                                -------         -------

      Total liabilities and shareholders' equity                $73,325         $74,058
                                                                =======         =======

</TABLE>


   See accompanying notes to the condensed consolidated financial statements.




                                     Page 3
<PAGE>   4
MOSAIX, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
AND COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
(IN THOUSANDS, EXCEPT PER SHARE DATA)                 THREE MONTHS ENDED MARCH 31,
-------------------------------------                 ----------------------------
                                                        1999            1998
                                                      --------          --------
                                                            (UNAUDITED)
<S>                                                   <C>               <C>     
Revenues:
     Systems sales                                    $ 13,189          $ 11,658
     Software licenses                                   3,804             7,375
     Services and other                                 10,169            11,321
                                                      --------          --------
         Total revenue                                  27,162            30,354
                                                      --------          --------
Cost of revenues:
      Systems sales                                      4,368             4,645
      Software licenses                                    468               548
      Services and other                                 5,651             6,777
                                                      --------          --------
           Total cost of revenue                        10,487            11,970
                                                      --------          --------

Gross profit                                            16,675            18,384
                                                      --------          --------

Operating expenses:
     Selling, general and administrative                11,305            12,197
     Research and development                            3,545             3,779
                                                      --------          --------
         Total operating expenses                       14,850            15,976
                                                      --------          --------

Operating income                                         1,825             2,408

Interest and other income, net                             329               586
                                                      --------          --------

Income before income taxes                               2,154             2,994

Income tax expense                                         431               898
                                                      --------          --------

         Net income                                   $  1,723          $  2,096
                                                      ========          ========

Net income per share:
     Basic                                            $   0.16          $   0.17
     Diluted                                          $   0.16          $   0.17

Weighted average common shares outstanding:
     Basic                                              10,650            12,200
     Diluted                                            10,889            12,482

Comprehensive income:
     Net income                                       $  1,723          $  2,096
     Foreign currency translation gain (loss)             (246)               45
                                                      --------          --------
Comprehensive income                                  $  1,477          $  2,141
                                                      ========          ========

</TABLE>

See accompanying notes to the condensed consolidated financial statements.


                                     Page 4
<PAGE>   5



MOSAIX, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
 (IN THOUSANDS)                                                            THREE MONTHS ENDED MARCH 31,
 --------------                                                            ----------------------------
                                                                              1999             1998
                                                                            --------          --------
                                                                                   (UNAUDITED)
<S>                                                                         <C>               <C>     

CASH FLOWS FROM OPERATING ACTIVITIES:
       Net income                                                           $  1,723          $  2,096
       Depreciation and amortization                                           1,160             1,469
       Trade and other receivables                                             1,334            (4,001)
       Other assets                                                             (856)              948
       Accounts payable and accrued liabilities                                 (201)              365
       Customer deposits and unearned revenue                                    926             4,099
                                                                            --------          --------
           Net cash provided by operating activities                           4,086             4,976
                                                                            --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchase of short-term investments                                         --            (8,010)
       Proceeds from maturities of short-term investments                      3,000             7,400
       Purchases of furniture, equipment and leasehold improvements             (961)           (1,778)
       Other                                                                    (220)              216
                                                                                                  
                                                                            --------          --------
           Net cash provided by (used in) investing activities                 1,819            (2,172)
                                                                            --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Repayment of long-term obligations                                         --              (205)
       Common stock repurchased                                               (2,967)           (2,407)
       Proceeds from issuance of common stock                                     42               442
                                                                            --------          --------
           Net cash used in financing activities                              (2,925)           (2,170)
                                                                            --------          --------

Effect of exchange rate changes on cash                                         (246)               45
                                                                            --------          --------

Increase in cash and cash equivalents                                          2,734               679
Cash and cash equivalents, beginning of period                                 5,423             5,532
                                                                            --------          --------

Cash and cash equivalents, end of period                                       8,157             6,211

Short-term investments                                                        20,072            31,159
                                                                            --------          --------
Cash, cash equivalents and short-term investments                           $ 28,229          $ 37,370
                                                                            ========          ========

</TABLE>


See accompanying notes to the condensed consolidated financial statements.


                                     Page 5
<PAGE>   6


                          MOSAIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.       BASIS OF PRESENTATION

         The accompanying condensed consolidated financial statements include
         the accounts of Mosaix, Inc. and its wholly owned subsidiaries,
         collectively referred to as the "Company". The unaudited interim
         condensed consolidated financial statements and related notes thereto
         have been prepared pursuant to the rules and regulations of the
         Securities and Exchange Commission. Accordingly, certain information
         and footnote disclosures normally included in financial statements
         prepared in accordance with generally accepted accounting principles
         have been omitted pursuant to such rules and regulations. The
         accompanying interim condensed consolidated financial statements and
         related notes thereto should be read in conjunction with the audited
         consolidated financial statements and notes thereto included in the
         Company's annual report on Form 10-K for the year ended December 31,
         1998.

         The information furnished reflects, in the opinion of management, all
         adjustments, consisting of only normal recurring items, necessary for a
         fair presentation of the results for the interim periods presented.
         Interim results are not necessarily indicative of results for a full
         year.

2.       NET INCOME PER SHARE

         Basic net income per share is computed using the weighted average
         number of common shares outstanding. Diluted net income per share is
         computed using the weighted average number of common shares plus
         dilutive common share equivalents outstanding during the period using
         the treasury stock method. Common share equivalents consist of employee
         stock options.

         The following table reconciles the numerator and the denominator of the
         basic and diluted per share computations for net income per share:

<TABLE>
<CAPTION>
                                                          Weighted
                                          Net Income    Average Shares   Net Income
(In thousands, except per share data)     (Numerator)   (Denominator)    Per Share
-------------------------------------     -----------   -------------    ---------

<S>                                         <C>            <C>            <C>     
Three months ended March 31, 1999:
   Basic earnings per share                 $1,723         10,650         $   0.16
   Effect of dilutive stock options             --            239
                                            ------         ------
   Diluted earnings per share               $1,723         10,889         $   0.16
                                            ======         ======

Three months ended March 31, 1998:
   Basic earnings per share                 $2,096         12,200         $   0.17
   Effect of dilutive stock options             --            282
                                            ------         ------
   Diluted earnings per share               $2,096         12,482         $   0.17
                                            ======         ======
</TABLE>


                                     Page 6
<PAGE>   7


         Options to purchase shares of common stock where the exercise price
         exceeded the average market price were excluded from the computations
         because they would be anti-dilutive. The related shares of stock
         excluded from the computations are as follows:

<TABLE>
<CAPTION>
                                                    Shares
                                                    Excluded              Exercise
                                                   (in 000's)              Price
                                                -----------------     ---------------
<S>                                             <C>                   <C>

         Three months ended March 31, 1999           1,237            $ 8.38 - $19.75

         Three months ended March 31, 1998             652            $10.25 - $19.75
</TABLE>

3.       BUSINESS SEGMENT INFORMATION

         The operating business segments reported below are the segments of the
         Company for which separate financial information is available and for
         which operating profit and loss amounts are evaluated and used by the
         chief operating decision maker for making operating decisions,
         assessing performance and deciding on how to effectively allocate
         resources. Mosaix has two principal businesses and, therefore, two
         reportable business segments: Call Management Systems (CMS) and
         Customer Relationship Management (CRM) applications. Included in
         "Reconciling Items" are all operating costs associated with the
         Company's international sales force and European subsidiary, as well as
         general corporate expenses and non-recurring charges. These costs are
         generally not allocated to either segment, as the chief operating
         decision maker does not consider these costs in the evaluation of the
         performance of the individual reportable segments. The operating
         segment information for 1999 and 1998 has been reported in accordance
         with the provisions of SFAS No. 131, "Disclosures about Segments of an
         Enterprise and Related Information."


<TABLE>
<CAPTION>
                                                                                Reconciling
         (In thousands)                                 CMS           CRM          Items          Consolidated
         --------------                               -------        ------     ------------      ------------
<S>                                                   <C>            <C>        <C>               <C>    
         Three months ended March 31, 1999
         Net revenue                                  $20,715       $ 6,447       $      -            $27,162
         Depreciation and amortization                    850           250             60              1,160
         Operating income (loss)                        6,438          (190)        (4,423)             1,825
         Capital expenditures                             817            96             48                961
         Identifiable assets                            6,082           706         66,537             73,325


         Three months ended March 31, 1998
         Net revenue                                  $18,066       $12,288       $      -            $30,354
         Depreciation and amortization                  1,174           233             62              1,469
         Operating income (loss)                        4,698         2,740         (5,030)             2,408
         Capital expenditures                           1,571           151             56              1,778
         Identifiable assets                            6,035           841         82,104             88,980

</TABLE>



                                     Page 7
<PAGE>   8

4.       NEW ACCOUNTING STANDARDS

         In June 1998, the Financial Accounting Standards Board issued SFAS No.
         133, "Accounting for Derivative Instruments and Hedging Activities."
         SFAS 133 establishes accounting and reporting standards for derivative
         instruments embedded in other contracts, and for hedging activities.
         The Statement requires that entities recognize all derivatives as
         either assets or liabilities on the balance sheet and measure these
         derivatives at fair value. SFAS 133 also specifies a new method of
         accounting for hedging transactions, prescribes the type of items and
         transactions that may be hedged, and specifies detailed criteria to be
         met to qualify for hedge accounting. This Statement is effective for
         financial statements for years beginning after June 15, 1999. The
         Company does not expect the adoption of this Statement to have a
         material impact on the consolidated financial statements.

5.       MERGER WITH LUCENT TECHNOLOGIES INC.

         On April 2, 1999, the Company entered into an Agreement and Plan of
         Merger (the "Merger Agreement") with Lucent Technologies Inc., a
         Delaware corporation ("Lucent"). Pursuant to the Merger Agreement, at
         the effective time of the Merger, each outstanding share of Mosaix,
         Inc. common stock will be canceled and converted automatically into the
         right to receive 0.19273 shares of Lucent common stock. The Merger is
         expected to be accounted for as a pooling-of-interests and to qualify
         as a tax-free reorganization.

         The Merger is subject to the customary closing conditions, including
         shareholder approval by Mosaix, to be considered at a special meeting
         anticipated to occur on or before June 30, 1999 and legal and
         regulatory approvals. The Merger will be effective promptly following
         shareholder approval, assuming satisfaction of the other conditions of
         the Merger.



                                     Page 8
<PAGE>   9




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

         RESULTS OF OPERATIONS

         Overview

         For the first quarter of 1999, revenue was $27.2 million compared with
         $30.4 million in the first quarter of 1998. The Company had first
         quarter 1999 net income of $1.7 million, or $0.16 diluted earnings per
         share, compared with $2.1 million, or $0.17 diluted earnings per share
         in the first quarter of 1998.

         Revenue

         Revenue of $27.2 million for the first quarter of 1999 represents an
         11% decrease from the first quarter of 1998. System sales increased
         $1.5 million, or 13%, to $13.2 million from $11.7 million in 1998. The
         increase in system sales was primarily due to increased sales of
         domestic call center systems and system upgrades as compared to the
         same period in the prior year. During the first quarter of 1999, the
         Company released a higher capacity dialer platform that contributed to
         the increase in system upgrade sales.

         Software licenses revenue was $3.8 million in 1999 compared to $7.4
         million in 1998. The decrease was due to reduced sales of the Company's
         Customer Relationship Management ("CRM") software solution. In
         addition, during the first quarter of 1998, the Company had two
         significant CRM license sales.

         Services and other revenue was $10.2 million in 1999 compared to $11.3
         million in 1998. The decrease was primarily due to lower professional
         services revenues, partially offset by increased customer service
         revenues.

         International revenue was 30% of total revenue in the first quarter of
         1999 compared to 31% of total revenue in the comparable quarter for
         1998. The decrease was primarily due to lower Canadian software license
         revenues.

         As discussed in the Company's 1998 Annual Report on Form 10-K, the
         Company may from time to time experience quarterly fluctuations in
         revenue due to the relatively few number of transactions in any single
         quarter, no material backlog, changes in customer budgets and general
         economic conditions.

         Gross Margin

         Total gross margin remained consistent with the comparable quarter of
         1998 at approximately 61% of revenue. System sales gross margin
         increased to 67% in the first quarter of 1999 compared to 60% in the
         comparable period of the prior year. The increase was primarily the
         result of the sales mix of a higher proportion of system upgrades,
         which generally have higher margins than full call center systems. In
         addition, the absence of capitalized software amortization costs, which
         ended during the fourth quarter of 1998, contributed to improved
         systems margins in the first quarter of 1999. Software licenses gross
         margins, however, decreased to 88% from 93% a year ago, due to a higher
         proportion of third party software product sales which generally have
         lower margins than Mosaix internally developed products. Services and
         other gross margin increased to 44% in the first quarter of 1999 from
         40% in the comparable period of the prior year, due to not performing
         non-billable consulting services for a certain customer, as was done in
         1998, and a shift in the revenue mix to higher margin customer services
         revenues.



                                     Page 9
<PAGE>   10

         Selling, General and Administrative

         Selling, general and administrative expenses were $11.3 million in the
         first quarter of 1999, compared to $12.2 million in the comparable
         period of the prior year. The decrease, in absolute dollars, is due to
         cost containment initiatives undertaken during the second half of 1998
         and continued into 1999.

         Research and Development

         Research and development expense was $3.5 million or 13% of revenue in
         the first quarter of 1999, compared to $3.8 million or 12% of revenue
         in the comparable quarter of the prior year. These spending levels are
         consistent with the Company's historical levels. The Company remains
         committed to the ongoing development of new products and improvements
         to existing products as a key source of future revenue.

         Interest and Other Income, Net

         Interest and other income, net was $0.3 million in the first quarter of
         1999 compared with $0.6 million for the same period of 1998. The
         decrease is primarily due to lower interest income on the Company's
         investment portfolio, which has decreased due to stock repurchases, and
         the absence of non-recurring other income items during the first
         quarter of 1999.

         Income Taxes

         The effective tax rate for the first quarter of 1999 was 20% compared
         to the statutory rate of 34%. The lower rate is due mainly to the
         Company's use of net operating loss carryforwards to reduce taxable
         income. The utilization of net operating loss carryforwards and excess
         credit carryforwards are restricted by the Internal Revenue Code. The
         Company therefore, is limited in the amount of net operating loss
         carryforwards that may be utilized.

         FINANCIAL CONDITION

         Liquidity and Capital Resources

         The Company's combined cash and cash equivalents and short-term
         investments were $28.2 million at March 31, 1999 versus $28.6 million
         at December 31, 1998. The short-term investment portfolio is invested
         in commercial paper and corporate debt securities with maturities of
         one year or less. The portfolio is diversified among security types and
         issuers and does not include any derivative products. At March 31,
         1999, the Company's working capital was $38.1 million compared to $39.5
         million at December 31, 1998.

         During the first quarter of 1999, the Company generated $4.1 million in
         cash from operations compared to $5.0 million in the comparable quarter
         of 1998. Customer deposits and unearned revenue were $7.3 million at
         March 31, 1999 versus $6.3 million at December 31, 1998. The increase
         is primarily due to annual customer service and maintenance fees being
         renewed during the first quarter of 1999. These fees will be amortized
         to services and other revenue over the remainder of the year.

         In addition to its cash and short-term investment balances, the Company
         has available a $10.0 million domestic line of credit to meet cash flow
         needs. The line of credit expires on May 31, 1999, and management
         intends to extend the line of credit through August 31, 1999.
         Management believes that existing cash and short-term investments and
         cash flow from operations, together with its available credit line,
         will continue to be sufficient to meet ongoing operating requirements
         as well as the Company's planned future investments in capital
         additions and research and development activities

         In July 1997, the Company's Board of Directors authorized, subject to
         certain terms and conditions, the repurchase of up to 1,700,000 shares
         of the Company's common stock. In February 1998, the 



                                    Page 10
<PAGE>   11

         Board of Directors authorized the repurchase of an additional 1,000,000
         shares of the Company's common stock. During the first quarter of 1999,
         the Company repurchased 332,100 shares for approximately $3.0 million.
         As of March 31, 1999, the Company had repurchased 3,561,600 shares at a
         total cost of $31.7 million. In connection with the April 1999
         announcement of the proposed merger with Lucent, the Company's
         repurchase program was cancelled in order to satisfy certain conditions
         of the pooling-of-interests accounting method.

         The Company does not currently hedge against changes in foreign
         currency exchange rates. The majority of the Company's sales are
         denominated in US dollars with customers assuming foreign currency
         exchange rate risks. The Company's United Kingdom subsidiary's sales
         are generally denominated in British Pounds, which is the functional
         currency of the UK subsidiary. As of March 31, 1999 outstanding
         receivables at the UK subsidiary totaled $5.7 million or 19% of total
         accounts receivable. Because the Company invoices certain of its
         foreign sales in local currency and does not hedge these transactions,
         fluctuations in exchange rates could adversely affect the Company's
         revenues and costs and could create significant foreign currency
         losses.

         FORWARD LOOKING STATEMENTS-RISK FACTORS REGARDING FUTURE PERFORMANCE

         Certain statements in this Form 10-Q contain "forward-looking"
         information (as defined in the Private Securities Litigation Reform Act
         of 1995) that involve risks and uncertainties, which may cause the
         actual results, performance or achievements of the Company or industry
         to be significantly different from any future results, performance or
         achievements expressed or implied by such forward-looking information
         or otherwise expected or anticipated. These risks and uncertainties
         include among other things: uncertainty arising from the prospective
         merger with Lucent; uncertainty regarding market acceptance of the
         Company's products, including market acceptance of underlying
         technologies, such as the Internet and the Microsoft NT operating
         system, and the nature of the emerging CRM market; market uncertainties
         arising from Year 2000 issues, including particularly customer
         decisions to delay or forgo purchasing or upgrading products; quarterly
         fluctuations resulting from variations in product mix, the timing of
         customer orders and the fact that relatively few, large orders can
         affect performance in any one quarter; the Company's ability to develop
         and effectively introduce new products on a timely basis, the Company's
         ability to develop products on new technology platforms that may be
         introduced or are now gaining acceptance in the marketplace; the
         Company's ability to establish effective channels of distribution of
         its products and related marketing relationships, including
         uncertainties arising from international economic conditions;
         introduction of products and technologies by the Company's competitors;
         and competitive pricing pressures. As a result of the foregoing and
         other factors, the Company may experience material fluctuations in
         future operating results on a quarterly or annual basis, which could
         materially and adversely affect the Company's business operations,
         financial condition, operating results, and stock price. Reference is
         made to the Company's Annual Report on Form 10-K for the year ended
         December 31, 1998 filed with the SEC on March 12, 1999, and Form 8-K
         filed on April 16, 1999 for a more detailed description of these risks
         and uncertainties.


         Year 2000

         The Company is aware of the issues associated with the programming code
         in existing computer systems as the millennium (year 2000) approaches.
         The "year 2000" problem is pervasive and complex, and virtually every
         computer operation will be affected in some way by the rollover of the
         two digit year value to 00. The issue is whether computer systems will
         properly recognize date sensitive information when the year changes to
         2000. Systems that do not properly recognize such information could
         generate erroneous data or cause system failures.

         The Company has tested and believes all of the Company's currently
         shipping products are year 2000 compliant. In addition, whenever
         possible, the Company has made software and hardware upgrades available
         to existing customers that will enable their systems to be year 2000
         compliant. It is possible 



                                    Page 11
<PAGE>   12

         that the Company's current products contain undetected errors related
         to year 2000 that may result in material additional costs or
         liabilities, which could have a material adverse effect on the Company.

         The Company does have some customers who have purchased call management
         systems in the past for which hardware upgrades are not available to
         allow the customer to become year 2000 compliant. The Company has and
         will continue to encourage such customers to migrate to current product
         versions. It is possible that the Company will incur additional
         expenses in addressing these migration issues. In addition, a
         significant number of existing customers, who are currently paying
         maintenance fees, have not yet upgraded to the latest year 2000
         compliant products. The demand for upgrade services by these customers
         will be significant, and may exceed the Company's resources of skilled
         technical personnel dedicated to providing year 2000 upgrade services,
         thus resulting in customers with non-compliant systems at January 1,
         2000. Because of these issues, the Company may be subject to litigation
         seeking damages relating to non-year 2000 compliant products sold in
         the past, and for business interruptions caused by the Company's
         inability to upgrade all customers to a year 2000 compliant system. It
         is also possible that support fee revenues may be adversely and
         materially affected if customers choose not to upgrade or otherwise to
         discontinue use of Mosaix products. The Company's international
         distributors, who support their end user customers directly, may
         encounter similar issues, which may, in turn, affect adversely their
         demand for Mosaix products in the coming quarters.

         Year 2000 issues may negatively affect the Company's revenues in future
         quarters in ways beyond non-renewal of maintenance service or support
         fees. Some customers or prospects may decline to purchase new systems
         or products from the Company until all of their internal systems have
         been upgraded to year 2000 compliant versions. The market for the
         Company's products may be materially adversely affected by this
         internal focus of resources and available budgets on resolving year
         2000 problems. The potential for distraction from normal customer
         purchasing cycles and activities will exist throughout fiscal year
         1999, and possibly into the fiscal year 2000.

         With regard to the Company's internal processing and operational
         systems, the Company has substantially completed installation of an
         enterprise-wide financial and operational system from a major vendor
         that is year 2000 compliant. The Company anticipates that all critical
         components of this system will be operational by mid-1999. Significant
         portions of this system are currently operational. The Company has
         capitalized the price of this system and third party consulting costs
         incurred to date and will continue to do so as the system is completed.
         With regard to other systems, the Company is identifying, reprogramming
         and testing all systems for year 2000 compliance. Although the Company
         is not aware of any additional material operational issues or costs
         associated with preparing the internal systems for the year 2000, it is
         possible the Company will experience material adverse effects from
         undetected errors or the failure of such systems to be year 2000
         compliant.

         The Company has further attempted to ascertain the year 2000 readiness
         status of its primary vendors of goods and services to assess and
         minimize the risk of interruptions of delivery of such goods and
         services. Although the Company is not currently aware of any material
         vendor year 2000 performance issues, it is possible that unknown or
         unforeseen vendor operational problems, stemming from year 2000
         problems, will materially adversely impact the Company's financial
         performance.

         While the Company continues to develop and implement readiness and
         contingency plans intended to minimize the impacts of foreseeable year
         2000 problems (the Company currently does not have a contingency plan
         to address areas of potential failure, but anticipates developing
         contingency plans prior to December 31, 1999 with regard to specific
         areas of risk where the Company has not been able to gain reasonable
         assurance of year 2000 compliance), it is possible the full and
         complete impact of the year 2000 on the future results of the Company
         will be material and adverse. This risk is difficult to fully determine
         at present, and should be considered in evaluating the financial
         prospects and future growth of the Company. The Company does not
         believe that the expenses incurred to date, or to be incurred in the
         future, in connection with currently planned year 2000 remediation
         efforts, has had, or will have, a material adverse effect on the
         Company.


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<PAGE>   13

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         Mosaix does not use derivative financial instruments in its investment
         portfolio. Its financial instruments consist of cash and cash
         equivalents, short-term investments, trade accounts receivable,
         accounts payable, and long-term obligations. All of Mosaix's cash
         equivalents and short-term investments, principally commercial paper
         and debt securities, are classified as held-to-maturity as of March 31,
         1999. The Company's exposure to market risk for changes in interest
         rates relates primarily to its short-term investments and short-term
         obligations, thus, fluctuations in interest rates would not have a
         material impact on the fair value of these securities.



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<PAGE>   14



PART II: OTHER INFORMATION


ITEM 1.           LEGAL PROCEEDINGS

                  Mosaix is subject to various legal proceedings that arise in
                  the ordinary course of its business. While the outcome of
                  these proceedings cannot be predicted with certainty, the
                  Company believes that none of such proceedings, individually
                  or in the aggregate will have a material adverse effect on the
                  Company's business or financial condition.


ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                  No matters have been submitted to a vote of Mosaix's
                  shareholders since the Company's last annual meeting of
                  shareholders in April 1998.


ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K


                  (a)     Exhibits

                  Exhibit 27.  Financial Data Schedule


                  (b)     Reports on Form 8-K

                  A Form 8-K dated April 2, 1999 was filed by the Company
                  reporting the Company has entered into an Agreement and Plan
                  of Merger with Lucent Technologies, Inc.




                                    Page 14
<PAGE>   15




                                   SIGNATURE

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.

                                   MOSAIX, INC.
                                   (Registrant)


DATE:  May 10, 1999                BY:   /s/John J Flavio
                                         --------------------------------
                                         John J. Flavio
                                         Chief Financial Officer
                                         (Principal Financial Officer)


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