<PAGE>

                          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, 1998 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  0-19975

                              BIOCIRCUITS CORPORATION
             (Exact name of registrant as specified in its charter)

                     DELAWARE                               94-3088884
          (State or other jurisdiction of                (I.R.S. Employer
          incorporation or organization)                Identification No.)

            1324 CHESAPEAKE TERRACE
             SUNNYVALE, CALIFORNIA                             94089
     (Address of principal executive offices)               (Zip Code)


                                  (408) 745-1961
               (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
                                       -----   ----




At April 30, 1998, Registrant had 6,984,548 shares of Common Stock issued and 
outstanding.

<PAGE>

                          BIOCIRCUITS CORPORATION


                                  INDEX
<TABLE>
<S>                                                                                 <C>
PART I:  FINANCIAL INFORMATION

ITEM 1.   Financial Statements and Notes

          Condensed balance sheets (unaudited) - March 31, 1998 and 
            December 31, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . .    3

          Condensed statements of operations (unaudited) - three months ended
            March 31, 1998 and 1997 . . . . . . . . . . . . . . . . . . . . . . .    4

          Condensed statements of cash flows (unaudited) - three months ended
            March 31, 1998 and 1997 . . . . . . . . . . . . . . . . . . . . . . .    5

          Notes to Condensed Financial Statements (unaudited) . . . . . . . . . .    6

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



PART II:  OTHER INFORMATION

ITEM 5.   Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . .   10

ITEM 6.   Exhibits and Reports on Form 8-K  . . . . . . . . . . . . . . . . . . .   10

Signatures  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   11
</TABLE>


                                      2
<PAGE>


PART I:  FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

                               BIOCIRCUITS CORPORATION


                              CONDENSED BALANCE SHEETS
                 (IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)
                                     (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                          March 31, 1998      December 31, 1997
                                                                                          --------------      -----------------
                                        ASSETS                                                                     (Note)
<S>                                                                                         <C>                   <C>
Current assets:
     Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    303              $ 1,421
     Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       264                  312
     Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       715                1,048
     Prepaid inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       482                  496
     Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . .       137                  181
     Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       125                  113
                                                                                            --------              -------
Total Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,026                3,571

Property and equipment, net of accumulated depreciation and
     amortization of $1,880 ($2,092 in 1997) . . . . . . . . . . . . . . . . . . . . . . .     1,111                1,208

Restricted cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       138                  263
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        39                   39
                                                                                            --------              -------
                                                                                            $  3,314              $ 5,081
                                                                                            --------              -------
                                                                                            --------              -------

                            LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    636             $    512
     Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        90                   84
     Accrued compensation and related expenses . . . . . . . . . . . . . . . . . . . . . .        61                   81
     Current portion of capital lease obligations. . . . . . . . . . . . . . . . . . . . .        38                   51
                                                                                            --------             --------
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       825                  728

Long-term portion of capital lease obligations . . . . . . . . . . . . . . . . . . . . . .        13                   21

Stockholders' equity:
     Preferred stock, $0.001 par value, 40,000,000 shares authorized, issuable
        in series:  Series A convertible, 30,000,000 shares designated,
        11,216,829 shares issued and outstanding (11,226,829 shares
        outstanding at December 31, 1997), aggregate liquidation preference
        of $.55 per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     9,313                9,313
     Common stock, $0.001 par value, 70,000,000 shares authorized,
        6,984,548 shares issued and outstanding (6,983,548 shares issued
        and outstanding at December 31, 1997). . . . . . . . . . . . . . . . . . . . . . .    55,594               55,620
     Accumulated Deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (62,390)             (60,555)
     Deferred compensation and other . . . . . . . . . . . . . . . . . . . . . . . . . . .       (41)                 (46)
                                                                                            --------             --------
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,476                4,332
                                                                                            --------             --------
                                                                                            $  3,314             $  5,081
                                                                                            --------             --------
                                                                                            --------             --------
</TABLE>
Note:  Derived from the audited balance sheet at December 31, 1997.


                               See accompanying notes


                                         3
<PAGE>

                               BIOCIRCUITS CORPORATION


                          CONDENSED STATEMENTS OF OPERATIONS
                 (IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA)
                                     (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                Three Months Ended
                                                                                                    March 31,
                                                                                             ------------------------
                                                                                               1998            1997
                                                                                             ----------   ------------
<S>                                                                                         <C>             <C>
REVENUES:
     Product Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    354        $   234

OPERATING COSTS AND EXPENSES:
     Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       615          1,034
     Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,022          1,480
     Sales, general and administrative . . . . . . . . . . . . . . . . . . . . . . . . . .       566          1,316
                                                                                            --------        -------
                                                                                               2,203          3,830

Loss from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (1,849)        (3,596)

Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        17             64
Interest and other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        (3)           (16)
                                                                                            --------        -------

Net loss   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (1,835)       $(3,548)
                                                                                            --------        -------
                                                                                            --------        -------

Basic and diluted net loss per share . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  (0.26)       $ (1.03)
                                                                                            --------        -------
                                                                                            --------        -------

Shares used in computing basic and
      diluted net loss per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     6,984          3,437
                                                                                            --------        -------
                                                                                            --------        -------
</TABLE>

                                See accompanying notes.


                                          4
<PAGE>

                               BIOCIRCUITS CORPORATION


                          CONDENSED STATEMENTS OF CASH FLOW
                                    (IN THOUSANDS)
                                     (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                Three Months Ended
                                                                                                    March 31,
                                                                                             ------------------------
                                                                                               1998            1997
                                                                                             ----------   ------------
<S>                                                                                         <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (1,835)    $  (3,548)
     Adjustments to reconcile net loss to net cash used
        in operating activities:
        Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . . . .      (207)           95
        Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      -              122
     Changes in:
        Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        48           (56)
        Prepaid Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        14           112
        Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       333          (297)
        Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        44           158
        Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . .       110          (150)
                                                                                            --------     ---------
            Net cash used in operating activities. . . . . . . . . . . . . . . . . . . . .    (1,493)       (3,564)
                                                                                            --------     ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       308          (133)
     Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       113           (598)
                                                                                            --------     ---------
         Net cash provided by (used in) investing activities.. . . . . . . . . . . . . . .       421           (731)
                                                                                            --------     ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Issuance of common stock, net of issuance costs . . . . . . . . . . . . . . . . . . .       (26)         -   
     Payments on long-term obligations . . . . . . . . . . . . . . . . . . . . . . . . . .       (20)          (56)
                                                                                            --------     ---------
         Net cash provided by (used in) financing activities.. . . . . . . . . . . . . . .       (46)          (56)
                                                                                            --------     ---------
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . .    (1,118)       (4,351)
Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . . . . . . . . .     1,421         4,944
                                                                                            --------     ---------
Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . . . . . . .  $    303     $     593
                                                                                            --------     ---------
                                                                                            --------     ---------
</TABLE>


                               See accompanying notes


                                         5
<PAGE>

                               BIOCIRCUITS CORPORATION


                       NOTES TO CONDENSED FINANCIAL STATEMENTS 
                                    MARCH 31, 1998
                                     (UNAUDITED)

1.   NATURE OF BUSINESS AND FINANCING

          Effective May 18, 1998, the Company terminated all employees and 
          ceased all ordinary business operations.  The Company intends to 
          immediately proceed with the orderly liquidation and/or sale of its 
          assets for the benefit of its creditors and shareholders.

          Biocircuits Corporation (the "Company") was incorporated in 
          Delaware on March 7, 1989.  Through May 18, 1998, the Company was 
          engaged in developing and commercializing new immunodiagnostic 
          testing systems.

          The Company's first sale and shipment of its IOS system occurred in 
          March 1996. The Company has incurred a loss in each period since 
          its inception.  At March 31, 1998, the Company's accumulated 
          deficit was $62.4 million. 

          At the end of April 1998, the Company had consumed all available 
          funds and continued operations into mid May 1998 upon the receipt 
          of a $125,000 short term bridge financing secured by the Company's 
          assets.  Such funds were available from a potential partner and 
          were provided to keep the Company operating while negotiations with 
          the potential partner were in process.  Upon the failure of these 
          negotiations on May 18, 1998, the Company announced that it had 
          been unable to secure additional financing or to arrange a sale or 
          merger and had insufficient funds to continue operations as a going 
          concern.  

2.   BASIS OF PRESENTATION

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

3.   EARNINGS PER SHARE 

          Due to the Company's net loss in all periods presented, net loss 
          per share includes only weighted average shares outstanding. All 
          earnings per share amounts for all periods have been presented in 
          accordance with FASB 128 requirements.

          If the Company had been in a net income position, diluted earnings 
          per share would have been presented separately and would have 
          included the effect of outstanding stock options and warrants, 
          calculated using the treasury stock method, and outstanding 
          preferred stock, on an as-if converted basis.

          The following is supplemental basic and diluted pro forma earnings 
          per share, calculated giving 


                                          6
<PAGE>

          effect to the conversion of the outstanding convertible preferred 
          stock on an as if converted basis.  Such shares are excluded from 
          earnings per share as reported, as they are anti-dilutive (in 
          thousands, except share and per share data):

<TABLE>
<CAPTION>
                                                                                    Three Months Ended
                                                                                        March 31,
                                                                                 ------------------------
                                                                                    1998          1997
                                                                                 ----------    ----------
<S>                                                                               <C>           <C>
Net loss to common shareholders as reported. . . . . . . . . . . . . . . . . .    $(1,835)      $(3,548)
                                                                                  -------       -------
                                                                                  -------       -------
Shares used in computing basic and diluted net loss
     per share as reported.. . . . . . . . . . . . . . . . . . . . . . . . . .      6,984         3,437

Adjustment to include outstanding convertible preferred
     stock previously excluded as it is anti-dilutive. . . . . . . . . . . . .      1,121         1,245
                                                                                  -------       -------
Shares used in computing pro forma basic and
     diluted net loss per share. . . . . . . . . . . . . . . . . . . . . . . .      8,105         4,682
                                                                                  -------       -------
                                                                                  -------       -------
Pro forma basic and diluted net loss per share.. . . . . . . . . . . . . . . .    $ (0.23)      $ (0.76)
                                                                                  -------       -------
                                                                                  -------       -------
</TABLE>


                                          7
<PAGE>


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


OVERVIEW

On May 19, 1998,  Biocircuits-Registered Trademark- Corporation announced 
that the Company had been unable to secure additional financing or to arrange 
a sale or merger and had insufficient funds to continue operations as a going 
concern.  Effective May 18, 1998, the Company terminated all employees and 
ceased all ordinary business operations.  The Company intends to immediately 
proceed with the orderly liquidation and/or sale of its assets for the 
benefit of its creditors and shareholders.

Biocircuits was founded in 1989 to develop new immunodiagnostic testing 
systems. Immunodiagnostic tests, or "assays," are performed on samples of 
bodily fluids to diagnose a variety of infectious diseases and other 
conditions, such as endocrine dysfunctions, and to conduct therapeutic drug 
monitoring.  Immunodiagnostic tests utilize biological reagents, such as 
antibodies, and an instrument to detect the presence of a substance of 
interest, or "analyte," such as a virus or hormone.  

The Company has incurred a loss in each period since its inception.  At March 
31, 1998, the Company's accumulated deficit was $62.4 million.  The Company 
expects that currently available funds will be used primarily for the costs 
of terminating its business operations.

RESULTS OF OPERATIONS - THREE MONTH PERIODS ENDING MARCH 31, 1998 AND 
     MARCH 31, 1997

Revenue in the first quarter of 1998 totaled $354,000, an increase of 
$120,000 or 51% from the $234,000 reported in the first quarter of 1997.

Total operating costs and expenses decreased from $3,830,000 in the first 
quarter of 1997 to $2,203,000 in the first quarter of 1998, a decrease of 
$1,627,000 or 42%.

Cost of sales expenses decreased from $1,034,000 in the first quarter of 1997 
to $615,000 in the first quarter of 1998, a decrease $419,000 or 41%.  The 
decrease in cost of sales results primarily from a reduction in force, which 
occurred in early April 1997, and in the first quarter 1997, the Company 
recorded a $124,000 one-time charge relating to the issuance of warrants to 
an instrument supplier.

Research and development expenses decreased from $1,480,000 in the first 
quarter of 1997 to $1,022,000 in the first quarter of 1998, a decrease of 
$458,000 or 31%.  This decrease was due primarily to a reduction in force, 
which occurred in early April 1997.

Sales, general and administrative expenses decreased from $1,316,000 in the 
first quarter of 1997 to $566,000 in the first quarter of 1998, a decrease of 
$750,000 or 57%.  This decrease was due primarily to the reduction in force 
which occurred in early April 1997 and the termination of sales and marketing 
efforts resulting from the Becton Agreement.

Interest income decreased from $64,000 in the first quarter of 1997 to 
$17,000 in the first quarter of 1998, a decrease of $47,000 or 73%.  The 
decrease was due to decreased cash balances from ongoing operating losses and 
funding of working capital.  Interest and other expense decreased from 
$16,000 in the first quarter of 1997 to $3,000 in the first quarter of 1998, 
a decrease of $13,000 or 81%.  Interest expense is incurred on the Company's 
capital leases related to its property and equipment.

Net loss decreased from $3,548,000 or $1.03 per share in the first quarter of 
1997 to $1,835,000 or 


                                          8
<PAGE>

$0.26 per share in the first quarter of 1998, a decrease of $1,713,000 or 48%.

LIQUIDITY AND CAPITAL RESOURCES

At the end of April 1998, the Company had consumed all available funds and 
continued operations into mid May 1998 upon the receipt of a $125,000 short 
term bridge financing secured by the Company's assets.  Such funds were 
available from a potential partner and were provided to keep the Company 
operating while negotiations with the potential partner were in process.  
Upon the failure of these negotiations on May 18, 1998, the Company announced 
that it had been unable to secure additional financing or to arrange a sale 
or merger and had insufficient funds to continue operations as a going 
concern.  Effective May 18, 1998, the Company terminated all employees and 
ceased all ordinary business operations.  The Company intends to immediately 
proceed with the orderly liquidation and/or sale of its assets for the 
benefit of its creditors and shareholders.

The Company historically had financed its operations primarily through sales 
of common and preferred stock, interest income on the cash balances available 
after such financings, long term debt and capital asset lease financings. 
Since its inception through March 31, 1998, the Company raised a total of 
approximately $64.1 million in the sale of common and preferred stock. 

The Company's cash and cash equivalents and short-term investments were $0.3 
million as of March 31, 1998, compared to $1.4 million at the end of 1997. 
The decrease was due primarily to operating losses in the first quarter 1998. 

The Company failed to meet the Nasdaq net tangible assets listing 
requirements at the end of the first quarter of 1998.  Due to the Company's 
failure of raising additional equity funds or to arrange a sale or merger, 
the Company will not be in compliance with the Nasdaq listing requirements on 
a pro forma basis and Nasdaq has initiated delisting procedures for the 
Company's common stock. 


                                         9
<PAGE>

                               BIOCIRCUITS CORPORATION


PART II:  OTHER INFORMATION



ITEM 6.   Exhibits and Reports on Form 8-K.

          a)   Exhibits

               27.1 Financial Data Schedule

          b)   Reports on Form 8-K

               Form 8-K filed May 20, 1998.


                                         10
<PAGE>


                               BIOCIRCUITS CORPORATION
                                      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.

                              BIOCIRCUITS CORPORATION



Date:     May 20, 1998

                              By: /s/ John Kaiser
                                  ---------------------------
                                  John Kaiser
                                  President and Chief Executive Officer


                              By: /s/ James Welch
                                  ---------------------------
                                  James Welch
                                  Vice President and Chief Financial Officer


                                          11