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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-Q

(Mark one)

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

For the quarterly period ended April 2, 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 No. 0-4466

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

                                   FLORIDA
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        (State or other jurisdiction of incorporation or organization)

                                  59-1205269
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                     (I.R.S. Employer Identification No.)


7900 Glades Road, Suite 500, Boca Raton, Florida                   33434
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      (Address of principal executive offices)                  (Zip Code)


Registrant's telephone number, including area code  (561) 451-1000
--------------------------------------------------  --------------


                                NOT APPLICABLE
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      Former name, address and fiscal year if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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

The number of shares of Common Stock,  $.01 par value, of the Registrant  issued
and outstanding as of April 30, 1999 was 36,946,009 shares.

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


<PAGE>


                          ARTESYN TECHNOLOGIES, INC.

                              INDEX TO FORM 10-Q

                                                                      Page
                                                                     Number
                                                                     ------

PART I.           FINANCIAL INFORMATION

Item 1.           Condensed Consolidated Financial Statements:

                  Statements of Operations - For the Thirteen
                  Weeks Ended April 2, 1999 and
                  April 3, 1998                                         3

                  Statements of Financial Condition - April 2, 1999
                  and January 1, 1999                                   4

                  Statements of Cash Flows - For the
                  Thirteen Weeks Ended April 2, 1999 and

                  April 3, 1998                                         5

                  Statement of Shareholders' Equity and
                  Comprehensive Income- For the
                  Thirteen Weeks Ended April 2, 1999                    6

                  Notes to Condensed Consolidated Financial
                  Statements                                          7-11

Item 2.           Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                12-16

Item 3.           Quantitative and Qualitative Disclosures
                  About Market Risk                                     16

PART II.          OTHER INFORMATION

Item 4.           Submission of Matters to a Vote of
                  Security Holders                                      16

Item 6.           Exhibits and Reports on Form 8-K                      17

                  Exhibit No. 27

SIGNATURES


<PAGE>
                        PART I. FINANCIAL INFORMATION
                         Item 1. Financial Statements

                          ARTESYN TECHNOLOGIES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Dollars in Thousands Except Per Share Data)
                                 (Unaudited)

                                                 Thirteen Weeks Ended
                                                 April 2,      April 3,
                                                   1999          1998
                                                 --------     ---------

Sales                                            $135,116     $147,178
Cost of Sales                                     101,575      111,368
                                                  --------     --------
Gross Profit                                       33,541       35,810
                                                  --------     --------
Expenses
  Selling, general & administrative                13,574       14,352
  Research & development                            8,867        8,959
  Restructuring charge                                  -        7,189
                                                  --------     --------
                                                   22,441       30,500
                                                  -------      --------
Operating Income                                   11,100        5,310
                                                  --------     --------
Other Income (Expense)
  Interest expense                                   (690)      (1,087)
  Interest income                                     341          680
                                                  --------     --------   
                                                     (349)        (407)
                                                  --------     --------
Income before Income Taxes                         10,751        4,903

Provision for Income Taxes                          3,440        1,667
                                                  --------    ---------       
Net Income                                        $ 7,311      $ 3,236 
                                                  ========     ========
Earnings per Share
  Basic                                           $  0.20      $  0.08   
                                                  ========     ========

  Diluted                                         $  0.19      $  0.08
                                                  ========     ========
                                                  
Common and Common Equivalent Shares Outstanding

  Basic                                            37,481       38,461
  Diluted                                          39,056       41,468


The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>



                          ARTESYN TECHNOLOGIES, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                   (Amounts in Thousands Except Share Data)
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                                       APRIL 2,         JANUARY 1,
                                                                         1999             1999
                                                                     ------------      -----------
ASSETS
CURRENT ASSETS
<S>                                                                  <C>                <C>     
  Cash and equivalents                                               $  34,788          $ 41,525
  Accounts receivable, net                                              80,393            88,828
  Inventories                                                           65,992            62,460
  Prepaid expenses and other                                             4,998             4,832
  Deferred income taxes, net                                             7,685             7,685
                                                                     ------------      ----------
    TOTAL CURRENT ASSETS                                               193,856           205,330
                                                                     ------------      ----------
PROPERTY, PLANT & EQUIPMENT, NET                                        78,005            75,032
                                                                     ------------      ----------
OTHER ASSETS
  Goodwill, net                                                         35,156            40,039
  Deferred income taxes, net                                             2,682             2,682
  Other assets                                                           2,565             2,309
                                                                     ------------      -----------
    TOTAL OTHER ASSETS                                                  40,403            45,030
                                                                     ------------      -----------
                                                                      $312,264          $325,392
                                                                     ============      ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Current maturities of long-term debt                                $  2,504          $  2,707
   Accounts payable and accrued liabilities                             84,016            81,653
                                                                     ------------      -----------
    TOTAL CURRENT LIABILITIES                                           86,520            84,360

LONG-TERM DEBT                                                          47,511            50,283
OTHER LONG-TERM LIABILITIES                                              9,666             9,661
                                                                     ------------      -----------
    TOTAL LIABILITIES                                                  143,697           144,304
                                                                     ------------      -----------
SHAREHOLDERS' EQUITY

  Preferred stock, par value $.01; 1,000,000 shares authorized;
    none issued                                                              -                 -
  Common stock, par value $.01; 80,000,000 shares authorized;
    36,900,739 issued and outstanding at April 2, 1999
     (37,882,248 shares at January 1, 1999)                                369               379
  Additional paid-in capital                                            83,480            85,018
  Retained earnings                                                     91,137            99,128
  Foreign currency translation adjustment                               (6,419)           (3,437)
                                                                     ------------      -----------                          
    TOTAL SHAREHOLDERS' EQUITY                                         168,567           181,088
                                                                     ------------      -----------
                                                                      $312,264          $325,392
                                                                     ============      ===========
</TABLE>


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>

                          ARTESYN TECHNOLOGIES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                        (Amounts in Thousands)
                                 (Unaudited)

<TABLE>
<CAPTION>
                                                                        THIRTEEN WEEKS ENDED
                                                                      APRIL 2,         APRIL 3,
                                                                       1999              1998
                                                                     ---------        ---------
OPERATING ACTIVITIES
<S>                                                                  <C>              <C>     
  Net income                                                         $  7,311         $  3,236
  Adjustments  to  reconcile  net  income  to net  
   cash  provided  by  operating activities:
    Depreciation and amortization                                       4,674            4,086
    Provision for restructuring charge                                      -            7,189
    Other non-cash charges                                              2,459            2,787
  Changes in operating assets and liabilities:
    (Increase) decrease in accounts receivable                          6,170           (1,817)
    Increase in inventories and prepaid expenses and other             (7,090)          (6,361)
    Increase in accounts payable and accrued liabilities                4,582            1,975
                                                                     ---------        ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES                              18,106           11,095
                                                                     ---------        ---------
INVESTING ACTIVITIES
  Purchases of property, plant and equipment                           (8,393)          (4,854)
  (Increase) decrease in other assets                                   2,878             (434)
                                                                     ---------        ---------
NET CASH USED IN INVESTING ACTIVITIES                                  (5,515)          (5,288)
                                                                     ---------        ---------
FINANCING ACTIVITIES
  Principal payments on debt and capital leases                       (18,765)         (11,206)
  Proceeds from revolving credit loans, net of costs                   17,557                -
  Repurchases of common stock                                         (17,916)               -
  Proceeds from exercises of stock options                                730            1,089
                                                                     ---------        ---------
NET CASH USED IN FINANCING ACTIVITIES                                 (18,394)         (10,117)
                                                                     ---------        ---------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND EQUIVALENTS                  (934)            (430)
                                                                     ---------        ---------
DECREASE IN CASH AND EQUIVALENTS                                       (6,737)          (4,740)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                              41,525           55,392
                                                                     ---------        ---------
CASH AND EQUIVALENTS, END OF PERIOD                                   $34,788          $50,652
                                                                     =========        =========

</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


<PAGE>


  ARTESYN TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS'
                        EQUITY AND COMPREHENSIVE INCOME
                   For the Thirteen Weeks Ended April 2, 1999
                             (Amounts in Thousands)
                                  (UNAUDITED)
      
<TABLE>
<CAPTION>

                                                                                           Foreign
                                                                Additional                 Currency
                                            Common Stock         Paid-in      Retained   Translation  Comprehensive
                                         Shares      Amount      Capital      Earnings    Adjustment      Income
                                         --------    -------    ----------    ---------   ----------   -----------
<S>                                     <C>            <C>        <C>         <C>         <C>           <C>
Balance, January 1, 1999                 37,882         $379       $85,018     $99,128      $(3,437)
  Issuance of common  stock under stock
   option plans                             165            1           729           -            -
  Tax benefit  from  exercises of stock      
   options                                    -            -           336           -            -
  Repurchases and retirement of            
   common stock                          (1,146)         (11)       (2,603)    (15,302)           -
  Net income                                  -            -             -       7,311            -       $7,311
  Other comprehensive income - foreign
   currency translation adjustment, net
   of tax benefit of $1,403                   -            -             -           -       (2,982)      (2,982)
                                                                                                       -----------
  Comprehensive income                                                                                    $4,329
                                        ---------    -------    ----------    ---------   ----------   ===========                 
Balance, April 2, 1999                   36,901         $369      $83,480      $91,137      $(6,419)
                                        =========    =======    ==========    =========   ========== 
  
</TABLE>


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


<PAGE>

                          ARTESYN TECHNOLOGIES, INC.
             NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                (Unaudited)
                                April 2, 1999

1.    BASIS OF PRESENTATION

The accompanying unaudited Condensed Consolidated Financial Statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  reporting  and with the  instructions  to Form 10-Q and Article 10 of
Regulation  S-X.  Certain  information  and  footnote  disclosures  required  by
generally accepted accounting  principles for complete financial statements have
been condensed or omitted.

In the opinion of management, the accompanying consolidated financial statements
include all adjustments  (consisting of normal  recurring  accruals)  considered
necessary to present  fairly the financial  position,  results of operations and
cash  flows of  Artesyn  Technologies,  Inc.  (the  "Company").  The  results of
operations  for the  thirteen  weeks  ended  April 2,  1999 are not  necessarily
indicative  of the results that may be expected for the entire fiscal year 1999.
In addition, these Condensed Consolidated Financial Statements should be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's 1998 Annual Report to Shareholders.

Certain prior year amounts have been reclassified to conform with current year's
presentation.

2.    INVENTORIES

The components of inventory are as follows ($000s):

                                          April 2,     January 1,
                                            1999         1999
                                         ---------    ----------
 
      Raw materials                       $31,756        $30,737
      Work in process                      10,928         10,097
      Finished goods                       23,308         21,626
                                          ---------    ----------
                                          $65,992        $62,460
                                          =========    ==========


3.    PROPERTY PLANT & EQUIPMENT, NET

Related  accumulated  depreciation  was  $71,787,000 and $69,779,000 at April 2,
1999 and January 1, 1999, respectively.


4.     ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The  components  of  accounts  payable and  accrued  liabilities  are as follows
($000s):

                                            April 2,      January 1,
                                              1999           1999
                                           ----------     ----------

      Accounts payable                     $41,734          $42,025
      Accrued liabilities:
        Compensation and benefits           12,952           13,543
        Income taxes payable                10,874            8,296
        Warranty reserve                     4,821            4,897
        Restructuring reserve                2,068            2,795
        Other                               11,567           10,097
                                          ----------      ----------
                                           $84,016          $81,653
                                          ==========      ==========

5.    INCOME TAXES

The provision for income taxes reflects  federal,  state, and foreign taxes. The
effective  income tax rate on pretax earnings  differs from that computed at the
United States federal statutory rate for the following reasons:

                                           Thirteen Weeks Ended
                                           April 2,     April 3,
                                            1999          1998
                                          -------       -------

      Provision computed at United States
        federal statutory rate              35.0%         35.0%
      Amortization of goodwill               0.3           0.2
      Change in the valuation allowance      -            (2.0)
      Foreign tax effects                   (6.1)         (2.0)
      Effect of state income taxes           2.8           2.6
      Other                                  -             0.2
                                           -------       -------
      Effective tax rate                    32.0%         34.0%
                                           =======       =======

6.    RESTRUCTURING

During  the first  quarter  of fiscal  year 1998,  the  Company  recorded a $9.6
million  pre-tax  charge in  connection  with the Company's  restructuring  plan
following its merger with Zytec Corporation ("Zytec"). This amount was allocated
in the  accompanying  Consolidated  Statements of  Operations  as follows:  $7.2
million to Restructuring charge and $2.4 million to Cost of Sales, the latter of
which  related   principally  to  inventory   write-offs  of  duplicate  product
development  programs  which were underway at the Company and Zytec prior to the
merger. The following table summarizes  activity for the first quarter of fiscal
year 1999 and the remaining  restructuring reserve balance of approximately $2.1
million which is included in accrued liabilities as of April 2, 1999 ($000s):

                                              Employee
                                            Termination     Facility
                                              Benefits      Closures
                                            -----------    ---------- 
Reserve balance at January 1, 1999             $1,150        $1,645
Cash payments                                    (295)         (432)
                                            -----------    ----------
Reserve balance at April 2, 1999               $  855        $1,213
                                            ===========    ==========

As of April 2, 1999,  the  remaining  employee  termination  benefits  represent
severance  pay  and  fringe  benefits  associated  with  the  elimination  of 68
positions.

The provision for the facility closures includes leasehold termination payments,
service contracts  obligations,  and other exit costs associated with facilities
closed in Europe as further  described  in the  financial  statements  and notes
included in the Company's 1998 Annual Report to Shareholders.

With the exception of certain lease-related cash requirements (which are payable
through the first quarter of 2001),  the remaining  anticipated cash payments of
approximately  $1.8  million are  expected to be paid  during the  remainder  of
fiscal year 1999.

7.    COMPREHENSIVE INCOME

The components of the Company's comprehensive income are as follows ($000s):
  
                                                    Thirteen Weeks Ended
                                                   April 2,         April 3,
                                                    1999             1998
                                                 ------------    -------------

      Net income                                    $7,311          $3,236

        Foreign currency translation adjustment     (4,385)         (2,071)
        Tax benefit                                  1,403             704
                                                 ------------    -------------
                                                    (2,982)         (1,367)
                                                 ------------    -------------
      Comprehensive income                          $4,329          $1,869
                                                 ============    =============

8.    EARNINGS PER SHARE

The following data show the amounts used in computing earnings per share ("EPS")
and the effects on income and the weighted-average number of shares of potential
dilutive common stock.  The  reconciliation  of the numerator and denominator of
the EPS calculation is presented below ($000s except per share data):

                                             Thirteen Weeks Ended
                                            April 2,        April 3,
                                              1999            1998
                                          -----------     -----------
BASIC EPS
 Net income                                  $7,311        $  3,236
                                          -----------     -----------

  Weighted average shares                    37,481          38,461
                                          -----------     -----------

  Per share - Basic                           $0.20           $0.08
                                          ===========     ===========
DILUTED EPS
 Net income                                  $7,311          $3,236
                                          -----------     -----------

  Weighted average shares                    37,481          38,461
  
  Effect of dilutive items-Stock options      1,575           3,007
                                          -----------     -----------
                                             39,056          41,468
                                          -----------     -----------

  Per share- Diluted                          $0.19           $0.08
                                          ===========     ===========
 
Antidilutive weighted options                 2,451             265
                                          ===========     ===========

The above antidilutive  weighted options to purchase shares of common stock were
not included in computing  diluted  earnings per share because  their  inclusion
would be antidilutive for the respective periods.

9.    SHAREHOLDERS' EQUITY

As  part  of  the  previously  announced  three-year,  up to 4.0  million  share
repurchase program implemented in 1998, the Company repurchased 1,146,200 shares
of its common stock for a total of $17.9  million,  during the first  quarter of
1999. To date, the Company has repurchased 2,357,700 of the approved 4.0 million
shares for a total of  approximately  $37.3  million  which was funded with cash
from operations. The excess of the cost of shares repurchased over par value was
allocated to  additional  paid-in  capital based on the pro rata share amount of
additional  paid-in  capital  for all  outstanding  shares  with the  difference
charged to retained earnings.

10.   DERIVATIVE FINANCIAL INSTRUMENTS

The Company utilizes derivative financial instruments to reduce financial market
risks.  These instruments are used to hedge foreign currency market exposures of
underlying assets and liabilities. The Company does not use derivative financial
instruments  for  speculative  or trading  purposes.  The  Company's  accounting
policies for these  instruments  are based on the Company's  designation of such
instruments  as  hedging  transactions.   The  criteria  the  Company  uses  for
designating an instrument as a hedge include the  instrument's  effectiveness in
risk reduction and one-to-one  matching of derivative  instruments to underlying
transactions. Gains and losses on currency forward contracts that are designated
and effective as hedges of anticipated transactions, for which a firm commitment
has been attained, are deferred and recognized in income in the same period that
the underlying  transactions  are settled.  Gains and losses on currency forward
contracts that are  designated and effective as hedges of existing  transactions
are  recognized  in  income  in the  same  period  as  losses  and  gains on the
underlying transactions are recognized and generally offset. Gains and losses on
any  instruments not meeting the above criteria would be recognized in income in
the current period.

The Company transacts  business in various foreign  currencies,  primarily Irish
Punts,  Deutsche Marks, Japanese Yen and other European  currencies. The Company
has established  balance sheet hedging programs to protect against reductions in
value and volatility of future cash flows caused by changes in foreign  exchange
rates. At April 2, 1999, the Company's  outstanding notional amount for currency
forward contracts was  approximately  $14.6 million maturing in three months. At
January 1, 1999, the Company's  outstanding notional amount for currency forward
contracts was  approximately  $12.8  million.  The amount of any gain or loss on
these  contracts  during the period was not material.  Deferred  gains or losses
attributable to the foreign currency instruments are not material.


<PAGE>


                        PART I - FINANCIAL INFORMATION
               Item 2. Management's Discussion And Analysis Of
                Financial Condition And Results Of Operations

RESULTS OF OPERATIONS

Sales for the first quarter of fiscal year 1999 were $135.1 million  compared to
$147.2 million for the comparable  quarter in fiscal year 1998, which,  although
less than  last  year's  comparable  quarter,  exceeded  the  Company's  earlier
estimates  for the  quarter.  Greater than  expected  demand for a number of new
products  contributed  to this  higher  than  anticipated  revenue.  While  this
increased  demand  may be  mainly  attributable  to a few major  customers,  the
Company believes it is an overall  encouraging growth indicator in the Company's
markets.

Gross margin for the first  quarter of 1999 was 24.8%  compared to 26.0% for the
first  quarter of 1998  (excluding  the $2.4  million  charge for  write-off  of
inventory  in  1998  in  connection  with  the  Company's  1998   merger-related
restructuring plan) as savings from cost of materials and plant rationalizations
were more than offset by new product  start-up costs.  Gross margins continue to
be  impacted  by  the  shift  in  sales  mix to the  Company's  high-volume  but
lower-margin  Original Equipment  Manufacturer  ("OEM")  customers.  The Company
believes  that its gross  margins  are  expected to  modestly  increase  for the
remainder of 1999 due to more favorable  sales and product mix and improved cost
of purchased materials.

Selling,  general and  administrative  expenses  were $13.6 million in the first
quarter of 1999, or approximately $0.8 million lower than the corresponding 1998
quarter. The decrease reflects  efficiencies gained from the merger of Zytec and
the Company,  partially offset by expenses  associated with Year 2000 compliance
and the  implementation  of the Company's  Enterprise  Resource  Planning  (ERP)
information system.

The Company  maintained its  significant  investment in research and development
which  totaled  $8.9  million,  or 6.6% of sales,  in the first  quarter of 1999
compared to $9.0 million,  or 6.1% of sales,  for the first quarter of 1998. The
Company believes that the timely  introduction of new technology and products is
an  important  component of its  competitive  strategy  and  anticipates  future
research  and  development  spending  will  not  significantly  differ  from the
historical trend as a percentage of sales of approximately 6-8%.

Net income for the first quarter of 1999 was $7.3 million,  or $0.19 per diluted
share,  compared to $3.2 million, or $0.08 per diluted share, for the comparable
year-ago quarter.  However,  net income for the first quarter of 1998 would have
been $9.6 million, or $0.23 per diluted share, excluding a one-time $9.6 million
pre-tax  restructuring and inventory charge associated with the Company's merger
with Zytec.


LIQUIDITY AND CAPITAL RESOURCES

At April 2, 1999, the Company's cash and equivalents  decreased to $34.8 million
from $41.5  million on January 1, 1999  primarily due to $17.9 million spent for
repurchases  of  the  Company's  common  stock  and  $8.4  million  for  capital
expenditures  partially  offset by income  for the  period  and other  favorable
working capital  changes.  These  activities were funded with cash on hand, cash
from operations and $0.7 million proceeds from exercises of stock options.

Accounts  receivable  decreased  to $80.4  million  at April 2, 1999 from  $88.8
million at January 1, 1999  partially due to lower sales volume  compared to the
fourth quarter of 1998 but also due to significant collection efforts.

The increase in inventory  levels from $62.5 million at January 1, 1999 to $66.0
million at April 2, 1999 was primarily  attributable  to production  planning to
meet manufacturing  lead times,  expansion of inventory depots to better service
customers, and anticipated demand for new product introductions.

Capital  expenditures  for the  first  quarter  of  1999  totaled  $8.4  million
primarily for the continued  maintenance  of facilities and equipment in support
of the Company's current operating  activities including $2.8 million related to
the  implementation  of  the  new   enterprise-wide  ERP  system.  Such  capital
expenditures were financed with cash on hand and cash generated from operations.
The Company's  current  overall  commitment to fully implement the ERP system is
approximately  $25  million,  which the  Company  anticipates  incurring  over a
three-year  period,  of  which  approximately  $22  million  is  expected  to be
capitalized  and  amortized  and  approximately  $3  million is  expected  to be
expensed as incurred.

Cash  provided by operations  increased to $18.1 million for the thirteen  weeks
ended  April 2, 1999 from $11.1  million for the  thirteen  weeks ended April 3,
1998  primarily due to decreases in accounts  receivable  and increased  accrued
liabilities.

Net cash used in financing  activities of $18.4  million for the thirteen  weeks
ended April 2, 1999 reflects  mainly the  repurchase and retirement of 1,146,200
shares of the Company's common stock for $17.9 million, partially offset by $0.7
million in proceeds  from stock  option  exercises.  Net cash used in  financing
activities of $10.1 million for the thirteen  weeks ended April 3, 1998 reflects
mainly  long-term  debt  principal  repayments,  including  $2.2  million on the
Company's  seven-year term loan and approximately  $7.0 million on the Company's
Austrian subsidiary's revolving loan and notes payable.

Effective  December  31,  1998,  the Company  entered  into a  revolving  credit
agreement  with  a  syndicate  of  banks  which   provides  a  new   three-year,
multi-currency $200 million credit facility.  The new revolving facility,  which
expires on December 31, 2001, replaced the Company's previous $20 million credit
line. The agreement  provides for various  interest rate options on the facility
based on London  Interbank  Offering Rates plus .625% and includes a fee of .20%
on the unused balance,  both payable  quarterly.  The agreement contains certain
negative  covenants,  which are typical of an agreement of this size and nature,
that,  among other  things,  require the Company to maintain  certain  financial
ratios and limit the purchase, transfer or distribution of the Company's assets.
Borrowings  are to be used for the repayment of the  Company's  $46.4 million of
term  loans  outstanding  on  January  1, 1999 and for other  general  corporate
purposes.  On  January 8,  1999,  the  existing  term  loans  were  repaid  from
borrowings  under the new revolving  credit  facility.  Any amounts  outstanding
under the  facility  are due on  December  31,  2001.  As of April 2, 1999,  the
Company  was in  compliance  in  all  material  respects  with  the  agreement's
covenants.

Based on current plans and business  conditions,  the Company  believes that its
cash and  equivalents,  its  available  credit  facility,  cash  generated  from
operations,  and other financing  activities are expected to be adequate to meet
capital  expenditures,  working  capital  requirements,  debt and capital  lease
obligations and operating lease commitments through 1999.


YEAR 2000 INITIATIVES AND EFFECTS

The Company  has formed an  internal  Year 2000  project  team to  evaluate  its
internal  facilities,  engineering  and  manufacturing  processes,  and business
information systems with respect to Year 2000 readiness and compliance. Included
in this evaluation are the Company's  products and systems and potential  impact
of the  Company's  significant  suppliers and  customers.  The Company is in the
process of communicating with its significant  suppliers to determine the extent
to which the Company  might be vulnerable  to those third  parties'  failures to
remedy their Year 2000 issues. The Company does not believe that it has material
exposure related to the Year 2000 issue for the products it has sold.

There are five phases that describe the Company's  process in becoming Year 2000
compliant.  Phase 1, the awareness  phase,  encompasses  developing a budget and
project plan. Phase 2, the assessment phase, identifies mission-critical systems
to check for  compliance.  Phase 3, the remediation  phase,  includes the actual
corrective activities for non-compliant systems and processes.  The inventory is
complete  with final risk  assessment  and  contingency  planning  scheduled for
completion  by June 1999.  The  Company is  currently  involved  in some phase 3
remediation activities.  The remaining two phases, validation and implementation
are ongoing  based on  contingency  and  remediation  planning.  Compliance  for
critical systems is scheduled for completion in September of 1999.

The Company's current primary business  information  systems, in both the United
States and its foreign locations,  are known to be non-compliant with Year 2000.
Upgrades for the Company's  Asia-Pacific  locations are scheduled for completion
by June 1999.  Systems at the  Company's  European  locations  are scheduled for
maintenance upgrade by July of 1999. In addition, the Company is proceeding with
a phased  installation  of a new Year 2000  compliant  ERP system to replace its
existing  systems.  The  Company's  goal is to complete  the ERP  implementation
within all North  American  Artesyn  facilities by September of 1999. In case of
unexpected delays in the implementation of the ERP systems in North America, the
Company's   contingency  plan  include  the  upgrade  of  its  current  business
information systems to be Year 2000 compliant. The Company believes that it will
have  sufficient  time  to  upgrade  these  systems  in  case  of  such a  delay
anticipating  remediation  efforts to start no later than  October of 1999.  The
cost to upgrade these systems is not expected to be material. The implementation
of the ERP system for the  Company's  European  and  Asia-Pacific  locations  is
scheduled for completion by mid-year 2000. The  implementation  and installation
of the new ERP system was a planned  system  change  following  the merger  with
Zytec to integrate the merged companies,  and such  implementation is not deemed
undertaken principally for the Company to become Year 2000 compliant.

The Company has not completed  its  assessment of the total costs to address and
remedy  Year 2000  issues.  The  Company  anticipates  that it will  complete  a
detailed  breakdown of estimated costs shortly after completion of the Company's
risk  assessment  and  contingency  planning.  These costs will include time and
effort  of  internal  staff  and  consultants  for  renovation,  validation  and
implementation, and computer and embedded technology systems enhancements and/or
replacements.  The total costs, excluding the implementation of the ERP systems,
for achieving Year 2000  compliance is currently  estimated at $3.5 million,  of
which  approximately  $700,000  has  been  incurred  in 1998  and  approximately
$400,000  in  the  first  quarter  of  1999.  Of  the  total  estimated  amount,
approximately  $2.5 million is expected to be capitalized and approximately $1.0
million is  expected to be expensed as  incurred.  The total  estimated  cost to
implement the new ERP systems is approximately $25 million to be incurred over a
three-year  period  of  which  approximately  $22  million  is  expected  to  be
capitalized  and  amortized  and  approximately  $3  million is  expected  to be
expensed as incurred.  ERP system costs  incurred in 1998 totaled  approximately
$7.9 million,  of which $7.7 million was  capitalized and $200,000 was expensed.
ERP system costs incurred to date in 1999 totaled approximately $3.0 million, of
which $2.8  million was  capitalized  and  $200,000  was  expensed.  The Company
expects  these  expenditures  to be  financed  through  operating  cash flows or
borrowings, at the Company's discretion.

While the Company believes that its Year 2000 remediation plan is sufficient and
that the Year 2000 will not pose significant  operational problems,  the Company
has  identified  the  following  potential  Year  2000  risks at this  time:  1)
suppliers and/or  customers may not be Year 2000 compliant;  2) ERP installation
may not be completed on time;  and 3) new  systems/upgrades  have  incomplete or
inadequate  testing.   The  risk  posed  by  suppliers  to  the  Company  is  an
interruption  of material  flow,  which would  impact  shipments  and  resultant
revenue.  The risk posed by  customers is a  cancellation  or delay in orders of
products by customers  who are not Year 2000 ready or whose costs to remedy Year
2000 issues are so significant that they cancel or delay orders. The risk of ERP
installation  not being  complete  is  mitigated  by the  Company's  anticipated
ability to be able to upgrade  current  business  information  systems with Year
2000  upgrades,  as  applicable,  for an amount not deemed by the  Company to be
material.  In addition,  Year 2000 issues would have a significant impact on the
Company's  operations  and its  financial  results  if  modifications  cannot be
completed on a timely basis,  unforeseen  needs or problems arise, or if systems
operated by third parties are not Year 2000 compliant.

The Company has not been  required to, and does not  anticipate,  deferring  any
projects as a result of its Year 2000 preparation.

The estimates and  conclusions  set forth herein  regarding Year 2000 compliance
contain  forward-looking  statements and are based on management's  estimates of
future  events  and  information  provided  by third  parties.  There  can be no
assurance that such estimates and information  will prove to be accurate.  Risks
to completing the Year 2000 project include the  availability of resources,  the
Company's  ability to discover and correct  potential Year 2000 problems and the
ability of  suppliers,  customers and other third parties to bring their systems
into Year 2000 compliance.


ITEM 3.  QUANTITATIVE AND QUALITATIVE  DISCLOSURES ABOUT MARKET RISK

The  Company is  exposed to the impact of  interest  rate  changes  and  foreign
currency  fluctuations.  In the normal course of business,  the Company  employs
established  policies  and  procedures  to manage  its  exposure  to  changes in
interest  rates and  fluctuations  in the value of  foreign  currencies  using a
variety of derivative  financial  instruments.  The Company manages its interest
rate risk on its variable  rate debt  instruments  through use of interest  rate
swaps  pursuant  to which the  Company  exchanges  its  floating  rate  interest
obligations  for fixed  rates.  The fixing of the  interest  rates  offsets  the
Company's exposure to the uncertainty of floating interest rates during the term
of the loans.

The Company has  significant  assets and operations in Europe and Asia and, as a
result, its financial performance could be affected by significant  fluctuations
in foreign exchange rates. To mitigate  potential adverse trends,  the Company's
operating  strategy  takes into  account  changes in  exchange  rates over time.
Accordingly,  the Company enters into various  forward  contracts that change in
value as foreign  exchange  rates  change to protect  the value of its  existing
foreign  currency  assets,  liabilities,  commitments  and  anticipated  foreign
currency  revenues.  The principal  currencies  hedged are the Japanese yen, the
Deutsche mark, and the Irish punt.

It is the  Company's  policy to enter into foreign  currency  and interest  rate
transactions only to the extent  considered  necessary to meet its objectives as
stated above.  The Company does not enter into foreign currency or interest rate
transactions for speculative purposes.

FORWARD LOOKING STATEMENTS

Certain  statements in this Form 10-Q  constitute  "forward-looking  statements"
within the meaning of the Private  Securities  Litigation Reform Act of 1995 and
are based on the Company's  current  expectations  with respect to future sales,
operating  efficiencies,  growth and  working  capital  needs.  Such  statements
involve  risks  and  uncertainties  which  may cause  actual  results  to differ
materially  from those set forth in these  forward-looking  statements.  Factors
that might affect such forward-looking statements include, among others, general
economic  conditions,  growth and changes in the power supply and communications
industries,  changes in customer mix, competitive factors and pricing pressures,
changes in product mix, the timely  development  and acceptance of new products,
ability  to  attract  and  retain  customers  including  new OEM  communications
customers,  ability to  attract  and retain  personnel,  inventory  risks due to
shifts in market  demand,  changes  in  absorption  of  manufacturing  overhead,
domestic  and foreign  regulatory  approvals  and other risks  described  in the
Company's various reports filed with the Securities and Exchange Commission.

<PAGE>
                          PART II. OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   EXHIBITS

Exhibit No. 27 -- Financial Data Schedule.

(b)   REPORTS ON FORM 8-K

The Company did not file any reports on Form 8-K during the thirteen-week period
ended April 2, 1999.


<PAGE>



                                  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.

                                            ARTESYN TECHNOLOGIES, INC.
                                            --------------------------
                                                  (Registrant)


DATE:    May 13, 1999                           BY:   Richard J. Thompson
                                                      -------------------
                                                      Richard J. Thompson
                                                      Vice President Finance
                                                      Chief Financial Officer