UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


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

                           For the quarterly period ended March 31, 1999

(   )                   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES AND EXCHANGE ACT OF 1934

                        For the transition period from __________  to __________

                        Commission file number:  0-18271


                            MAGELLAN TECHNOLOGY, INC.
                    -----------------------------------------
             (Exact name of registrant as specified in its charter)


                  Utah                                  87-0467614
---------------------------------           -----------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or Organization)

13526 South 110 West
Draper, Utah                                                          84020
---------------------------------------                                -----
(Address of principal executive offices)                            (Zip Code)


Registrant's telephone number, including area code:   (801) 495-2211
                                                   ----------------------
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  and  Exchange Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X No _____

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

                                                               Outstanding at
           Class                                               March 31, 1998
           -----                                             ------------------
Common Stock, $.0002 par value                               23,444,360 shares


<PAGE>


                                   FORM 10-QSB

                       Financial Statements and Schedules
                            Magellan Technology, Inc.

                      For the Quarter Ended March 31, 1998

The  following  financial  statements  and schedules of the  registrant  and its
consolidated subsidiaries are submitted herewith:


                                            PART I - FINANCIAL INFORMATION
                                            ------------------------------
Item 1.           Financial Statements

                  Condensed consolidated balance sheet for March 31, 1999
                  and year-end for December 31, 1998                          3

                  Condensed consolidated statement of operations for the 
                  three months ended March 31, 1999 and 1998                  4

                  Condensed statement of cash flows for the three months 
                  ended March 31, 1999 and 1998                               5

                  Notes to condensed consolidated financial statements        7

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


                                             PART II - OTHER INFORMATION
                                             ---------------------------
Item 1.           Legal Proceedings                                          12

Item 2.           Changes in Securities                                      12

Item 3.           Defaults upon Senior Securities                            12

Item 4.           Submission of Matters to a Vote of Security Holders        12

Item 5.           Other information                                          12

Item 6(a)         Exhibits                                                   12

Item 6(b)         Reports on Form 8-K                                        12

<PAGE>


<TABLE>
<S>                                                                                 <C>                   <C>    

                             MAGELLAN TECHNOLOGY, INC.
                                 AND SUBSIDIARIES

                       Condensed Consolidated Balance Sheets


                                                                                      Mar 31, 1999         Dec 31, 1998
                                      ASSETS                                          (Unaudited)           (Audited)
                                                                                    -------------        -------------
Current Assets:
 Cash                                                                                  $ 66,298            $ 159,108
 Accounts Receivable                                                                    701,235              314,643
 Inventories                                                                            916,817              938,999
 Other Current Assets                                                                   209,608              172,230
                                                                                    -------------        -------------
   Current Assets                                                                     1,893,958            1,584,980
                                                                                    -------------        -------------

 Property and Equipment, net                                                            910,902              938,351
 Licenses & Technology, net                                                           1,348,047            1,283,594
 Goodwill, net                                                                          251,298              269,248
                                                                                    -------------        -------------
   Total Assets                                                                     $ 4,404,204          $ 4,076,173
                                                                                    =============        =============
                                    LIABILITIES

Current Liabilities:
 Accounts Payable                                                                   $ 1,188,454          $ 1,131,037
 Accrued Liabilities                                                                    428,645              309,424
 Accrued Interest Payable                                                               109,539               61,565
 Line of Credit                                                                       2,996,158            2,996,158
 Related Party Notes Payable                                                            740,000            1,840,000
 Current Portion of long-term debt                                                      690,270              667,227
                                                                                    -------------        -------------
   Current Liabilities                                                                6,153,066            7,005,410

 Long-Term Debt                                                                         567,381              617,142
                                                                                    -------------        -------------
   Total Liabilities                                                                  6,720,447            7,622,553
                                                                                    -------------        -------------
                               STOCKHOLDERS' EQUITY

 Common Stock, par value $.0002 per share;
 50,000,000 shares authorized, 23,444,360 shares
 issued and outstanding as of March 31, 1999.                                             4,689                3,545

 Additional Paid-in Capital                                                           11,944,789            9,890,575
 Unearned Compensation                                                                  (115,748)            (130,868)
 Accumulated Deficit                                                                 (13,309,632)          (8,380,223)
 Current Earnings/(Loss)                                                                (840,341)          (4,929,409)
                                                                                    -------------        -------------
   Total Stockholders' equity                                                         (2,316,243)          (3,546,380)
                                                                                    -------------        -------------
     Total Liabilities and Stockholders' Equity                                      $ 4,404,204          $ 4,076,173
                                                                                    =============        =============
</TABLE>
<PAGE>

                             MAGELLAN TECHNOLOGY, INC.
                                 AND SUBSIDIARIES

                  Condensed Consolidated Statements of Operations
                                    (Unaudited)


<TABLE>
<S>                                                                                <C>                 <C>    
                                                                                     Three Months         Three Months
                                                                                        Ended                Ended
                                                                                     Mar 31, 1999         Mar 31, 1998
                                                                                    -------------        -------------
 Sales                                                                               $ 1,417,997              242,617
 Cost of Sales                                                                           327,500               46,719
                                                                                    -------------        -------------
   Gross Margin                                                                        1,090,497              195,898

Operating Expenses:
 Selling & Marketing                                                                     906,834              279,416
 General & Administrative                                                                347,625              287,931
 Training & Customer Support                                                             183,848
 R&D & Engineering                                                                       173,721              320,657
 Depreciation Expense                                                                     48,967               18,692
 Amortization of Licenses & Goodwill                                                      94,122               17,950
 Compensation Expense - Stock Options                                                     15,120               26,283
                                                                                    -------------        -------------
    Total Operating Expenses                                                           1,770,236              950,929
                                                                                    -------------        -------------
 Income/(Loss) from Operations:                                                         (679,740)            (755,031)

Other (Income)/Expense:
 Other Income                                                                               (330)
 Interest Expense                                                                        160,932               93,145
 Loss from Discontinued Operations                                                                                198
 (Gain)/Loss on Sale of Assets                                                                 -
 Equity in Earnings - SkyHook                                                                  -
 Equity in Earnings - BioMeridian                                                              -
                                                                                    -------------        -------------
    Net Income/(Loss)                                                                 $ (840,341)          $ (848,374)
                                                                                    =============        =============

    Net Income/(Loss) per share                                                            (0.05)               (0.06)
                                                                                    =============        =============

 Weighted average shares outstanding                                                  17,755,773           14,434,203
                                                                                    =============        =============

</TABLE>
<PAGE>



                             MAGELLAN TECHNOLOGY, INC.
                                 AND SUBSIDIARIES

                  Condensed Consolidated Statements of Cash Flows
                                    (Unaudited)
<TABLE>
<S>                                                                                <C>                 <C>  

                                                                                     Three Months         Three Months
                                                                                         Ended                Ended
                                                                                     Mar 31, 1999         Mar 31, 1998
Cash Flows from Operating Activities:                                               -------------        -------------
 Net Income/(Loss)                                                                    $ (840,341)            (848,374)
 Adjustments to Reconcile Net Income/(Loss)
   to Net Cash used in Operating Activities:
     Depreciation Expense                                                                 48,967               18,692
     Amortization of Licenses & Goodwill                                                  94,122               17,950
     Stock Compensation                                                                   15,120               26,283
     Loss from Discontinued Operations                                                                            198
     (Gain) on Sale of Assets
 (Increase)/Decrease in:
   Accounts Receivable                                                                  (386,592)             (12,950)
   Inventory                                                                              22,183
   Prepaid Expenses                                                                      (37,379)
   Other Current Assets                                                                                      (253,592)

 Increase/(Decrease) in:
   Accounts Payable                                                                       57,418              (70,802)
   Accrued Liabilities                                                                   119,221              (25,003)
   Accrued Interest Payable                                                               59,007
                                                                                    -------------        -------------
 Net Cash Used in Operating Activities                                                  (848,275)          (1,147,598)
                                                                                    -------------        -------------
Cash Flows from Investing Activities:
 Purchase of Property & Equipment                                                        (21,518)            (136,717)
 Acquisition of Digital Health                                                                 -
 Sale of Investment in Subsidiary                                                              -
                                                                                    -------------        -------------
 Net Cash Provided by/(Used in) Investing Activities                                     (21,518)            (136,717)
                                                                                    -------------        -------------
Cash Flows from Financing Activities:
 Issuance of Common Stock                                                                  3,700            1,196,551
 Proceeds from Related Party Notes                                                     1,125,000              509,000
 Principal Payments on Related Party Notes                                              (325,000)
 Proceeds from Line of Credit
 Principal Payments on Line of Credit
 Proceeds from Long-term Debt                                                             18,798
 Principal Payments on Long-term Debt                                                    (45,516)            (391,173)
                                                                                    -------------        -------------
 Net Cash Provided by/(Used in) Financing Activities:                                    776,982            1,314,378
                                                                                    -------------        -------------
 Net Decrease in cash                                                                    (92,811)              30,063

 Cash, Beginning of Period                                                               159,108              111,402
                                                                                    -------------        -------------
 Cash, End of Period                                                                    $ 66,298            $ 141,465
                                                                                    =============        =============
</TABLE>
<PAGE>



                             MAGELLAN TECHNOLOGY, INC.
                                 AND SUBSIDIARIES

                  Condensed Consolidated Statements of Cash Flows
                                    (Unaudited)

<TABLE>
<S>                                                                                <C>                  <C>   

                                                                                     Three Months         Three Months
                                                                                         Ended                Ended
                                                                                     Mar 31, 1999         Mar 31, 1998
Cash paid during the period for:                                                    -------------        -------------

 Interest                                                                             $ 101,924               59,497
                                                                                    =============        =============

 Income Taxes                                                                               $ -                  500
                                                                                    =============        =============
</TABLE>
Non-cash Financing and Investing Activities:

   During the quarter ended March 31, 1999, the Company converted  $1,900,000 of
 notes payable and $11,033 of accrued interest payable into common stock.

   During the quarter ended March 31, 1999, the Company issued 250,000 shares of
 common  stock in  exchange  for the rights of certain  technology  known as the
 P.I.C.E. Technology. The value of this transaction was $140,625.

<PAGE>

                           MAGELLAN TECHNOLOGY, INC.
                                AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

(1)           The unaudited condensed  consolidated financial statements include
              the accounts of Magellan  Technology,  Inc.  (The Company) and its
              wholly owned subsidiaries, BioMeridian Corporation [formerly known
              as  ProHealth,  Inc.  and prior to that known as  Satellite  Image
              Systems,  Inc. (SIS,  Inc.) and SIS Jamaica,  LTD (SIS  Jamaica)],
              SkyHook Technologies,  Inc. (SkyHook),  which the Company acquired
              effective  October 15, 1996, and BioMeridian  International,  Inc.
              (BioMeridian)  (formerly  known  as  BioSource,  Inc.)  which  the
              Company  acquired  effective  October 15, 1997. The acquisition of
              SkyHook  included  the  issuance of  4,874,936  shares of Magellan
              common stock and cash for all of the outstanding shares of SkyHook
              common  stock.  The  transaction  was  accounted for as a purchase
              transaction. The acquisition of BioSource included the issuance of
              225,000  shares of Magellan  common  stock and cash for all of the
              outstanding  shares of BioSource common stock. The transaction was
              accounted for as a purchase  transaction.  The Company  recognized
              goodwill of $358,997 in connection with the BioSource transaction.
              On August 1, 1996 the  Company  transferred  its  interest  in the
              assets,  liabilities,  and  operations  of SIS,  Inc. to Satellite
              Image Systems,  LLC (SIS,  LLC), a joint venture.  On May 12, 1998
              the Company  sold its 46.5%  interest in SIS,  LLC. In  connection
              with the sale the company  recognized a gain of $180,023.  On June
              15,  1998,  the  Company  completed  the  acquisition  of  certain
              licenses and  technology  of Digital  Health,  LLC in exchange for
              1,375,000  shares of common  stock and $250,000 in cash payable in
              monthly installments of $15,000. On February 16, 1999, the Company
              acquired  certain assets known as the P.I.C.E.  technology from an
              individual in exchange for 250,000 shares of common stock.

(2)           The unaudited condensed  consolidated financial statements include
              all adjustments,  consisting of normal recurring items, which are,
              in the  opinion of  management,  necessary  to present  fairly the
              financial  position  of the  company as of March 31,  1999 and the
              results of  operations  for the three  months ended March 31, 1999
              and 1998 and cash flows for the three  months ended March 31, 1999
              and 1998.  The results of  operations  for the three  months ended
              March 31, 1999 are not necessarily indicative of quarterly results
              to be expected for the remainder of the year.

(3)            The  amount of the loss per share is based on the  weighted  
               average  number of shares  outstanding  at March 31, 1999 and 
               1998, respectively.

(4)           Effective  May 12, 1998 the Company  entered  into an agreement to
              sell its  46.5%  interest  in SIS,  LLC.  Terms  of the  agreement
              include an initial  payment of $1,500,000 and additional  payments
              not to exceed  $1,000,000  that  will be  earned  over the next 27
              months based upon the operating results of SIS, LLC. $1,200,000 of
              the funds received were used to retire a  non-revolving  term line
              of credit.  The balance of the funds was used for working  capital
              purposes.

(5)           On May 19, 1998 the company  entered into a  $3,000,000  revolving
              line of credit agreement. Obligations under prior separate line of
              credit  agreements  for $750,000  and  $745,000  were retired with
              proceeds from the new revolving  line of credit.  During the three
              months  ended  March  31,  1999  the  Company  made no  additional
              borrowings  under this  revolving  line of credit.  This revolving
              line of  credit  matures  on May 19,  1999 and is  secured  by the
              Company's inventory and receivables and by the personal guarantees
              of the Company's Chief Executive Officer, a Director,  and a major
              shareholder.  As of March 31, 1999 the Company had an  outstanding
              balance of $2,996,158 under this revolving line of credit.

(6)           During the three months ended March 31, 1999 the Company  borrowed
              a net  amount  of  $200,000  from the  Company's  Chief  Executive
              Officer, or from entities controlled by this individual, under two
              separate $100,000  unsecured notes payable  agreements.  Each note
              payable  bears  interest at 12% and is payable  upon  demand.  The
              Company also borrowed $350,000 and $250,000 from unrelated parties
              under  separate   convertible   note  payable   agreements.   Each
              convertible  note  payable  bears  interest at 12% and  contains a
              provision for the  conversion  of the  principal  amount to common
              stock at a specified  price. On March 31, 1999,  both  convertible
              note payable agreements were converted to common stock at $.35 per
              common  share.  The funds  from  these  transactions  were used to
              finance operations.

(7)            Effective  March 31, 1999,  $1,300,000 of related party notes 
               payable were converted to common stock of the Company.  In 
               addition,  accrued  interest  payable on the related party notes
               payable of $11,033 was used by the related parties to exercise 
               warrants to purchase common stock.

(8)           Effective  March 16, 1999,  the Company has issued a formal letter
              of intent to acquire Biological Technologies  International,  Inc.
              (BTI) in a stock for stock exchange.  This transaction is intended
              to be accounted for as a "pooling of interests"  transaction  and,
              as of the date of this filing, is still pending.


<PAGE>


                         PART I - FINANCIAL INFORMATION


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

Three-month period ended March 31, 1999 compared to the three-month period ended
March 31, 1998.

Results of BioMeridian

BioMeridian  International,  Inc. (BioMeridian)  manufactures and sells the BEST
system to healthcare practitioners.  This equipment is used to assess stress and
assist  healthcare  practitioners  in the  analysis  and  treatment  of  certain
conditions.  If stress or  imbalance  is  detected,  the BEST  system is used to
recommend a course of treatment or therapy to alleviate the stress or to restore
balance to the body's  meridian  systems.  BioMeridian  also  provides  training
classes and support services for health care practitioners that utilize the BEST
system.   The  BEST  system  is   registered   with  the  U.S.   Food  and  Drug
Administration.

For the three months ended March 31, 1999 BioMeridian achieved sales revenues of
$1,401,497  which resulted in an operating loss of $430,461  compared with sales
revenues of $242,617  which  resulted in an  operating  loss of $132,864 for the
three  months  ended March 31, 1998.  The  significant  increase in sales is the
result of the synergies of the acquired  assets and  technology of BioSource and
Digital  Health and the expanded user base along with the increase in the number
of independent sales  representatives to approximately  thirty  nationwide.  The
increased operating loss is primarily due to unusually high selling expenses due
to training of direct and indirect sales  representatives and the elevated level
of overhead  within the operation of BioMeridian.  The increased  overhead costs
are the result of improved  marketing  strategies and improved customer training
and support personnel.

Although  BioMeridian  has experienced  operating  losses during the three-month
period ended March 31, 1999,  the Company  believes  that after an investment of
approximately $1.6 million during the past eighteen months,  BioMeridian has now
reached a  sustainable  revenue  level in excess  of  $500,000  per month and is
poised to achieve  breakeven  operations  in the second or third quarter of 1999
and profitable operations for the following fourth quarter in 1999.


Results of SkyHook

Since its formation in February 1995, SkyHook  Technologies,  Inc. (SkyHook) has
been  engaged  in  the  development  of  computer-controlled   multi-hook  cargo
transport  devices that SkyHook  believes will improve the efficiency and safety
of  helicopter  missions by enabling the  selective  delivery  and  retrieval of
multiple external  payloads during a single mission.  SkyHook also believes that
its  devices  will allow an aircrew to more fully  utilize a  helicopter's  load
capacity while minimizing flight time.

SkyHook's patented products include the SkyHook External Cargo Management System
(SkyHook ECMS) and the SkyHook Light Ariel Delivery System  (SkyHook LADS).  The
SkyHook  LADS is a lower cost system  designed  to carry three or four  separate
loads with total  system  load  capacity  of 12,000  pounds.  The  SkyHook  LADS
complements  the SkyHook  ECMS that is  designed to carry three or six  separate
loads with a total system  capacity of 36,000 pounds.  With the  introduction of
the LADS system to complement the ECMS product, the company can effectively meet
the varying  needs of its  potential  customers.  SkyHook has invested over $6.8
million in the development,  testing and marketing of its unique  products.  The
Company continues an aggressive marketing campaign with the U.S. Military as its
primary potential customer.

SkyHook  has made  significant  progress in its  marketing  effort with the U.S.
Military and other government agencies.  Subsequent to March 31, 1999, the State
of Kansas  National Guard issued a purchase order for one Light Aerial  Delivery
System  (LADS).  The LADS system was delivered to the Kansas  National  Guard in
late  April  1999.  SkyHook  anticipates  additional  revenues  from the sale of
SkyHook products near the end of 1999. However,  currently the Company must rely
on its lines of credit  and its  ability  to raise  additional  debt and  equity
financing  in  order  to  finance  continued  product  development,   sales  and
marketing, and all operating activities related to the SkyHook and its products.
On-going  operations  of SkyHook are expected to consume  approximately  $30,000
each month.

SkyHook was  recently  awarded a contract  with  Envirofoam  Technologies,  Inc.
(Envirofoam)  that  provides  for the  marketing  and contract  management  of a
patented fire suppression device that is targeted for sale to the U.S. Military.
During the three  months  ended March 31, 1999  SkyHook  recognized  revenues of
$16,500 under this contract with Envirofoam.

Liquidity and Capital Resources

On May 19, 1998 the company  entered into a $3,000,000  revolving line of credit
agreement.  Obligations  under  prior  separate  line of credit  agreements  for
$750,000 and $745,000 were retired with proceeds from the new revolving  line of
credit.  During  the three  months  ended  March 31,  1999 the  Company  made no
additional  borrowings under this revolving line of credit.  This revolving line
of credit matures on May 19, 1999 and is secured by the Company's  inventory and
receivables  and by the personal  guarantees  of the Company's  Chief  Executive
Officer, a Director,  and a major shareholder.  As of March 31, 1999 the Company
had an outstanding balance of $2,996,158 under this revolving line of credit.

During the three months  ended March 31, 1999 the Company  borrowed a net amount
of  $200,000  from the  Company's  Chief  Executive  Officer,  or from  entities
controlled  by this  individual,  under two  separate  $100,000  unsecured  note
payable agreements.  Each note payable bears interest at 12% and is payable upon
demand.  The Company also borrowed  $350,000 and $250,000 from unrelated parties
under  separate  convertible  note payable  agreements.  Each  convertible  note
payable bears interest at 12% and contains a provision for the conversion of the
principal  amount to common stock at a specified  price. On March 31, 1999, each
convertible note payable was converted to common stock at $.35 per common share.
The funds from these transactions were used to finance operations.

Effective  March 31,  1999,  $1,300,000  of related  party  notes  payable  were
converted to common stock of the Company. In addition,  accrued interest payable
on the related party notes payable of $11,033 was used by the related parties to
exercise warrants to purchase common stock.

The Company has made significant  investment and effort over the last five years
into the establishment of a sound framework for operating entities that are well
positioned  in  their  perspective  marketplaces.  Management  feels  that  both
BioMeridian  and  SkyHook  are now poised  for  success  and  future  profitable
operations.  However, there can be no assurance that the Company will be able to
achieve  profitable  operations  or obtain  the  needed  debt or equity  capital
required on terms  favorable to the  Company.  If the Company is unable to raise
additional  capital,  the  ability  of the  Company to  successfully  market and
distribute its products and services through its operating  subsidiaries and its
financial condition would be materially adversely affected.




                           PART II - OTHER INFORMATION

Item 1.           Legal proceedings:

                  The  Company is party to one  proceeding  that is not
                  product related and is considered by Management to be
                  routine litigation incidental to the business.

Item 2.           Changes in Securities:    None.

Item 3.           Defaults upon Senior Securities:   None.

Item 4.           Submission of Matters to a Vote of Security Holders: None.

Item 5.           Other information:  None.

Item 6.           Exhibits and Reports on Form 8-K:   None.

<PAGE>


SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                            MAGELLAN TECHNOLOGY, INC.
                            -------------------------
                                  (Registrant)



\s\Douglas M. Angus                                              May 14, 1998
------------------------                                      -----------------
Douglas M. Angus                                                      Date
Vice President - Finance