<PAGE>   1

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

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

                                    FORM 10-Q

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

                        FOR THE QUARTER ENDED MAY 1, 1999


                                       OR

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

                         Commission file number 000-8088

                                  FURON COMPANY
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                     <C>
California                                                       95-1947155
----------------------------                            -------------------
(State or other jurisdiction                               (I.R.S. Employer
of incorporation or                                     Identification No.)
organization)

29982 Ivy Glenn Drive
Laguna Niguel, CA                                                     92677
----------------------------------------                -------------------
(Address of principal executive offices)                         (Zip Code)
</TABLE>


       Registrant's telephone number, including area code: (949) 831-5350

        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 [ ]

   Number of shares of common stock outstanding as of June 9, 1999: 18,444,776



                                        1
<PAGE>   2

                                  FURON COMPANY


                                      INDEX


PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                        PAGE NO.

<S>          <C>                                                        <C>
    Item 1.  Financial Statements

             Condensed Consolidated Balance Sheets
                May 1, 1999 and January 30, 1999                           3

             Condensed Consolidated Statements of Income
                Three months ended May 1, 1999 and
                May 2, 1998                                                5

             Condensed Consolidated Statements of Cash Flows
                Three months ended May 1, 1999 and May 2, 1998             6

             Notes to Condensed Consolidated Financial Statements          7

    Item 2.  Management's Discussion and Analysis of Financial
                Condition and Results of Operations                       13

    Item 3.  Quantitative and Qualitative Disclosures About Market Risk   23



PART II - OTHER INFORMATION                                               24
---------------------------
</TABLE>



                                        2
<PAGE>   3

ITEM 1.  FINANCIAL STATEMENTS

                                  FURON COMPANY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           May 1,      January 30,
In thousands                                                                1999          1999
--------------------------------------------------------------------------------------------------
<S>                                                                     <C>             <C>
ASSETS

Current assets:
      Cash and cash equivalents ..................................      $      --       $   1,358
      Accounts receivable, less allowance for doubtful accounts of
         $2,180 at May 1, 1999 and $2,232 at January 30, 1999 ....         73,897          81,885
      Inventories, net ...........................................         56,052          53,650
      Income taxes recoverable ...................................           --             3,368
      Deferred income taxes ......................................          6,983           6,625
      Prepaid expenses and other current assets ..................          5,288           4,955
                                                                        ---------       ---------
Total current assets .............................................        142,220         151,841
Property, plant & equipment, at cost:
      Land .......................................................          6,709           6,711
      Buildings and leasehold improvements .......................         34,663          33,341
      Machinery and equipment ....................................        173,200         171,986
                                                                        ---------       ---------
                                                                          214,572         212,038
      Less accumulated depreciation and amortization .............       (106,825)       (103,395)
                                                                        ---------       ---------
Net property, plant and equipment ................................        107,747         108,643
Intangible assets, at cost less accumulated amortization of ......         87,804          89,695
   $40,606 at May 1, 1999 and $39,101 at January 30, 1999
Other assets .....................................................         11,595          11,922
                                                                        ---------       ---------
TOTAL ASSETS .....................................................      $ 349,366       $ 362,101
                                                                        =========       =========
</TABLE>


See accompanying notes.


                                        3
<PAGE>   4

                                  FURON COMPANY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                  May 1,      January 30,
In thousands, except share data                                    1999          1999
------------------------------------------------------------------------------------------
<S>                                                              <C>             <C>
LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Cash, less checks outstanding .........................      $      16       $      --
    Accounts payable ......................................         23,973          26,130
    Salaries, wages and related benefits payable ..........         11,190          14,046
    Income taxes payable ..................................            669            --
    Current portion of long-term debt .....................            497             566
    Accrued interest payable ..............................          1,802           4,373
    Facility rationalization and severance ................          5,590           6,554
    Other current liabilities .............................         13,774          14,649
                                                                 ---------       ---------
Total current liabilities .................................         57,511          66,318
Long-term debt ............................................        138,614         144,707
Other long-term liabilities ...............................         25,975          26,091
Deferred income taxes .....................................         19,169          20,378
Commitments and contingencies .............................             --              --

Shareholders' equity:
    Preferred stock without par value, 2,000,000 shares
       authorized, none issued or outstanding .............             --              --
    Common stock without par value, 30,000,000 shares
       authorized, 18,445,030 shares issued and outstanding
       at May 1, 1999 and 18,421,080 at January 30, 1999 ..         43,082          42,806
    Employee Benefit Trust shares .........................         (2,185)         (1,444)
    Accumulated other comprehensive income ................         (3,663)         (1,691)
    Unearned ESOP shares ..................................         (2,560)         (2,560)
    Unearned compensation .................................           (105)           (124)
    Retained earnings .....................................         73,528          67,620
                                                                 ---------       ---------
Total shareholders' equity ................................        108,097         104,607
                                                                 ---------       ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................      $ 349,366       $ 362,101
                                                                 =========       =========
</TABLE>



See accompanying notes.



                                        4
<PAGE>   5

                                  FURON COMPANY
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                       Three months ended
                                                    -----------------------
                                                     May 1,        May 2,
In thousands, except per share amounts                1999          1998
---------------------------------------------------------------------------
<S>                                               <C>             <C>
Net sales .....................................   $ 121,437       $ 119,805
Cost of sales .................................      82,462          82,539
                                                  ---------       ---------
Gross profit ..................................      38,975          37,266
Selling, general and administrative expenses ..      27,982          27,561
Other (income), expense .......................        (573)         (1,138)
Interest expense, net .........................       2,966           2,932
                                                  ---------       ---------
Income before income taxes ....................       8,600           7,911
Provision for income taxes ....................       2,709           2,492
                                                  ---------       ---------
Net Income ....................................   $   5,891       $   5,419
                                                  =========       =========
Basic income per share ........................   $    0.32       $    0.30
                                                  =========       =========
Diluted income per share ......................   $    0.32       $    0.29
                                                  =========       =========
Cash dividends per share ......................   $    0.03       $    0.03
                                                  =========       =========
</TABLE>




See accompanying notes.



                                        5
<PAGE>   6

                                  FURON COMPANY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                           Three months ended
                                                                        -------------------------
                                                                           May 1,         May 2,
In thousands                                                                1999           1998
-------------------------------------------------------------------------------------------------
<S>                                                                     <C>             <C>
OPERATING ACTIVITIES
Net income ..........................................................   $   5,891       $   5,419
Adjustments to reconcile net income to cash provided by
   operating activities:
     Depreciation ...................................................       4,414           4,273
     Amortization ...................................................       1,528           1,528
     Provision for losses on accounts receivable ....................          19              70
     Deferred income taxes ..........................................         220            (369)
     Loss on sale of assets .........................................          32              62
Working capital changes, net of acquisitions and disposals:
     Accounts receivable ............................................       7,969           1,790
     Inventories ....................................................      (2,402)         (3,064)
     Accounts payable and accrued liabilities .......................      (4,998)         (4,413)
     Income taxes payable ...........................................       4,038            (564)
     Other current assets and liabilities, net ......................      (4,328)         (1,277)
Changes in other long-term operating assets and liabilities .........        (244)             88
                                                                        ---------       ---------
          Net cash provided by operating activities .................      12,139           3,543

INVESTING ACTIVITIES
     Acquisition of businesses ......................................          --            (115)
     Cash acquired in purchase of business ..........................          --           3,037
     Purchases of property, plant and equipment .....................      (4,121)         (5,166)
     Proceeds from sale of businesses ...............................           9               5
     Proceeds from sale of equipment ................................          19              40
     Increase in note receivable ....................................        (314)           (606)
                                                                        ---------       ---------
          Net cash used in investing activities .....................      (4,407)         (2,805)

FINANCING ACTIVITIES
     Proceeds from long-term debt ...................................         141         134,194
     Principal payments on long-term debt ...........................      (6,059)       (124,341)
     Deferred debt costs ............................................          --          (3,918)
     Employee benefit trust funding .................................        (342)         (1,300)
     Proceeds, net of cancellations, from issuance of common stock ..         276             137
     Dividends paid on common stock .................................        (553)           (549)
                                                                        ---------       ---------
          Net cash provided by (used in) financing activities .......      (6,537)          4,223

EFFECT OF EXCHANGE RATE CHANGES ON CASH .............................      (2,553)            444
                                                                        ---------       ---------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ....................      (1,358)          5,405

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ....................       1,358              --
                                                                        ---------       ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD ..........................   $      --       $   5,405
                                                                        =========       =========
</TABLE>





See accompanying notes.



                                        6
<PAGE>   7

                                  FURON COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   May 1, 1999
                                   (Unaudited)

1. GENERAL

   The accompanying unaudited consolidated financial statements have been
   condensed in certain respects and should, therefore, be read in conjunction
   with the consolidated financial statements and related notes thereto,
   contained in the Company's Annual Report on Form 10-K for the fiscal year
   ended January 30, 1999. Certain reclassifications have been made to prior
   year amounts in order to be consistent with the current year presentation.

   In the opinion of the Company, the accompanying unaudited condensed
   consolidated financial statements contain all adjustments necessary
   (consisting only of normal recurring adjustments) to present fairly the
   financial position of the Company as of May 1, 1999, and the results of
   operations and cash flows for the three months ended May 1, 1999 and May 2,
   1998. Results of the Company's operations for the three months ended May 1,
   1999 are not necessarily indicative of the results to be expected for the
   full year.

2. INVENTORIES

   Inventories, stated at the lower of cost (first-in, first-out) or market, are
   summarized as follows:

<TABLE>
<CAPTION>
                                       May 1,       January 30,
In thousands                            1999            1999
---------------------------------------------------------------
<S>                                    <C>          <C>
Raw materials and purchased parts ..   $21,445      $21,388
Work-in-process ....................    13,639       12,211
Finished goods .....................    20,968       20,051
                                       -------      -------
                                       $56,052      $53,650
                                       =======      =======
</TABLE>


3. INTANGIBLES

   Intangible assets, primarily acquired in business combinations, net of
   accumulated amortization, are summarized as follows:


<TABLE>
<CAPTION>
                              May 1,    January 30,
In thousands                   1999        1999
---------------------------------------------------
<S>                          <C>          <C>
Goodwill .................   $62,953      $64,297
Other intangible assets ..    24,851       25,398
                             -------      -------
                             $87,804      $89,695
                             =======      =======
</TABLE>



                                        7
<PAGE>   8

                                  FURON COMPANY
                     NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   May 1, 1999
                                   (Unaudited)


4. LONG-TERM DEBT

   Long-term debt is summarized as follows:

<TABLE>
<CAPTION>
                                        May 1,       January 30,
In thousands                             1999            1999
----------------------------------------------------------------
<S>                                     <C>           <C>
Senior Subordinated Notes ........      $125,000      $125,000
Loans under bank credit agreements
    due through fiscal 2002 ......        10,000        16,000
Industrial Revenue Bonds .........         3,600         3,600
Other ............................           511           673
                                        --------      --------
Total long-term debt .............       139,111       145,273
Less current portion .............           497           566
                                        --------      --------
Due after one year ...............      $138,614      $144,707
                                        ========      ========
</TABLE>


   For the three months ended May 1, 1999, the weighted average interest rate on
   the loans under the credit facility agreement was 5.5%.

   Interest paid for the three months ended May 1, 1999 and May 2, 1998 was $5.4
   million and $2.0 million, respectively.

5. INCOME TAXES

   The Company's effective tax rate for the three months ended May 1, 1999 was
   31.5% as compared with 31.5% for the same period in the prior year.

   Income taxes paid for the three months ended May 1, 1999 and May 2, 1998 were
   $0.2 million and $2.1 million, respectively.

6. CONTINGENCIES

   At May 1, 1999, the Company had approximately $3.8 million of foreign
   currency hedge contracts outstanding consisting of over-the-counter forward
   contracts. Net unrealized losses from hedging activities were not material as
   of May 1, 1999.

   At May 1, 1999, the Company is obligated under irrevocable letters of credit
   totaling $5.9 million.

   The Company is currently involved in various litigation. While no assurance
   can be given, management of the Company is of the opinion that the ultimate
   resolution of such litigation should not have a material adverse effect on
   the Company's consolidated financial position or results of operations.



                                        8
<PAGE>   9

                                 FURON COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  May 1, 1999
                                  (Unaudited)

6. CONTINGENCIES (CONTINUED)

   Compliance with environmental laws and regulations designed to regulate the
   discharge of materials into the environment or otherwise protect the
   environment requires continuing management effort and expenditures by the
   Company. While no assurance can be given, the Company does not believe that
   the operating costs incurred in the ordinary course of business to satisfy
   air and other permit requirements, properly dispose of hazardous wastes and
   otherwise comply with these laws and regulations form or are reasonably
   likely to form a material component of its operating costs or have or are
   reasonably likely to have a material adverse effect on its competitive or
   consolidated financial positions.

   As of May 1, 1999, the Company's reserves for environmental matters totaled
   approximately $1.5 million. The Company or one or more of its subsidiaries is
   currently involved in environmental investigation or remediation directly or
   as an EPA-named potentially responsible party or private cost
   recovery/contribution action defendant at various sites, including certain
   "superfund" waste disposal sites. While neither the timing nor the amount of
   the ultimate costs associated with these matters can be determined with
   certainty, based on information currently available to the Company, including
   investigations to determine the nature of the potential liability, the
   estimated amount of investigation and remedial costs expected to be incurred
   and other factors, the Company presently believes that its current
   environmental reserves should be sufficient to cover most, if not all, of the
   Company's aggregate liability for these matters and, while no assurance can
   be given, it does not expect them to have a material adverse effect on its
   consolidated financial position or results of operations. The actual costs to
   be incurred by the Company at each site will depend on a number of factors,
   including one or more of the following: the final delineation of
   contamination; the final determination of the remedial action required;
   negotiations with governmental agencies with respect to cleanup levels;
   changes in regulatory requirements; innovations in investigatory and remedial
   technology; effectiveness of remedial technologies employed; and the ultimate
   ability to pay of any other responsible parties.



                                        9
<PAGE>   10

                                  FURON COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   May 1, 1999
                                   (Unaudited)

7. SHAREHOLDERS' EQUITY

   Earnings Per Share


   The calculation of earnings per share is presented below:

<TABLE>
<CAPTION>
                                                           Three Months Ended
                                                   ----------------------------------
                                                      May 1,                May 2,
In thousands, except share and per share amounts       1999                  1998
-------------------------------------------------------------------------------------
<S>                                                <C>                    <C>
Net income ............................            $     5,891            $     5,419
                                                   ===========            ===========
Weighted average shares outstanding for
    basic income per share ............             18,142,416             18,032,374
                                                   -----------            -----------
Effect of dilutive securities:
Employee stock options and awards .....                373,194                669,146
                                                   -----------            -----------
Weighted average shares outstanding for
   diluted income per share ...........             18,515,610             18,701,520
                                                   -----------            -----------
Basic income per share ................            $      0.32            $      0.30
                                                   ===========            ===========
Diluted income per share ..............            $      0.32            $      0.29
                                                   ===========            ===========
</TABLE>


   Employee Benefits Trust

   On March 24, 1998, the Company entered into an Employee Benefits Trust (the
   "Trust") with Wachovia Bank, N.A., Trustee. The Trust was established to
   provide a source of funds to assist the Company in meeting obligations under
   various employee benefit plans. During the three months ended May 1, 1999,
   the Company contributed approximately $0.3 million to the Trust to purchase
   shares of the Company's common stock on the open market. During the first
   three months of fiscal year 2000, the Trust purchased 25,932 shares of common
   stock at an average cost of $13.34 per share (122,016 shares held at May 1,
   1999). Also, during the first quarter of fiscal year 2000, the Trust released
   14,219 shares of common stock to plan participants in connection with the
   annual incentive plan awards.



                                       10
<PAGE>   11

                                  FURON COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   May 1, 1999
                                   (Unaudited)

7. SHAREHOLDERS' EQUITY (CONTINUED)

   For financial reporting purposes, the Trust is consolidated with the Company.
   The shares are accounted for by the treasury stock method. The fair market
   value of the shares held by the Trust is shown as a reduction to
   shareholders' equity in the Company's consolidated balance sheet. Any
   dividend transactions between the Company and the Trust are eliminated.
   Shares will be released from the Trust as granted to participants in
   connection with various benefit plans. Common stock held in the Trust is not
   considered outstanding for earnings per share calculations until they are
   granted to participants. The Trustee is responsible for voting the shares of
   common stock held in the Trust.

8. COMPREHENSIVE INCOME

   As of February 1, 1998, the Company adopted Statement of Financial Accounting
   Standards ("SFAS") No. 130, "Reporting Comprehensive Income". SFAS No. 130
   establishes new rules for the reporting and display of comprehensive income
   and its components; however, the adoption of this Statement had no impact on
   the Company's net income or shareholders' equity. SFAS No. 130 requires the
   change in the minimum pension liability and the foreign currency translation
   adjustments, which prior to adoption were reported separately in
   shareholders' equity, to be included in other comprehensive income. Prior
   years' financial statements have been reclassified to conform to these
   requirements.

   The components of comprehensive income, net of related tax, are as follows:

<TABLE>
<CAPTION>
                                                Three Months Ended
                                              -----------------------
                                               May 1,          May 2,
In thousands                                    1999            1998
---------------------------------------------------------------------
<S>                                           <C>           <C>
Net income .............................      $ 5,891       $ 5,419
Foreign currency translation
  adjustments ..........................       (1,972)          766
                                              -------       -------
Comprehensive income ...................      $ 3,919       $ 6,185
                                              =======       =======
</TABLE>



                                       11
<PAGE>   12

                                  FURON COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   May 1, 1999
                                   (Unaudited)

9. SEGMENT INFORMATION

   The Company operates in two business segments: Commercial Products, including
   highly engineered seals and bearings, fluid handling components, tapes, films
   and coated fabrics, hose and tubing, wire and cable, and plastic formed
   components; and Medical Device Products, including critical care products and
   infusion systems for medical and surgical applications.

   The factors impacting the Company's basis for reportable segments include
   separate management teams, infrastructures, and discrete financial
   information about each. Additionally, the long-term financial performance of
   the Medical Device Products segment is affected by an environment governed by
   regulatory standards.

   Sales, operating profit, interest expense, net and identifiable assets are
   set forth in the following table:


<TABLE>
<CAPTION>
                                           Commercial        Medical
In thousands                                Products      Device Products       Adjustments     Consolidated
------------------------------------------------------------------------------------------------------------
<S>                                         <C>           <C>                   <C>             <C>
Three months ended May 1, 1999
---------------------------------
Sales to unaffiliated customers ..          $ 93,375          $ 28,062                            $121,437
Operating profit .................             7,972             3,021                              10,993
Interest expense, net ............                --                --          $  2,966             2,966
Identifiable assets ..............           202,385           146,981                             349,366

Three months ended May 2, 1998
---------------------------------
Sales to unaffiliated customers ..          $ 97,974          $ 21,831                            $119,805
Operating profit .................             9,593               112                               9,705
Interest expense, net ............              --                --            $  2,932             2,932
Identifiable assets ..............           220,117           155,296                             375,413
</TABLE>



                                       12
<PAGE>   13

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

RESULTS OF OPERATIONS

The following discussion and analysis is based upon and should be read in
conjunction with the historical consolidated financial statements of the Company
and related notes thereto. The Company's fiscal 2000 first quarter ended May 1,
1999 and fiscal 1999 first quarter ended May 2, 1998. The fiscal 2000 and 1999
quarters each consisted of 13 weeks.

RESULTS OF OPERATIONS

THREE MONTHS ENDED MAY 1, 1999 COMPARED WITH THREE MONTHS ENDED MAY 2, 1998

Net Sales. Consolidated net sales of $121.4 million for the three months ended
May 1, 1999 ("FY 2000 Period") increased $1.6 million, from $119.8 million for
the three months ended May 2, 1998 ("FY 1999 Period"). The increase in net sales
was the result of increased sales of medical device products, more than
offsetting lower commercial product sales.

Gross Profit. Gross profit of $39.0 million in the FY 2000 Period increased $1.7
million, or 4.6%, from $37.3 million in the FY 1999 Period. The gross profit
margin increased to 32.1% in the FY 2000 Period from 31.1% in the FY 1999
Period. The increase was due to higher volume in the medical device products
segment more than offsetting the impact of lower volumes in the commercial
products segment.

Selling, General and Administrative Expenses. Selling, general and
administrative ("SG&A") expenses of $28.0 million in the FY 2000 Period
increased $0.4 million, or 1.5%, from $27.6 million in the FY 1999 Period. SG&A
expenses as a percentage of net sales was 23.0% in the FY 2000 Period, unchanged
from 23.0% in the FY 1999 Period. The general and administrative dollar increase
was mainly the result of higher costs incurred in general insurance, relocation
and the full quarter impact of the April 1998 acquisition of Corotec GmbH,
partially offset by decreased legal and bad debt expenses. Slightly lower
selling and product development costs were also recorded.

Other Income. Other income of $0.6 million in the FY 2000 Period decreased $0.5
million, from $1.1 million in the FY 1999 Period. The decrease was primarily the
net result from the absence of gains realized in the prior year, and reduced
licensee fees.

Interest Expense, Net. Interest expense, net of $3.0 million for the FY 2000
Period remained relatively flat compared to $2.9 million in the FY 1999 Period.
This was the result of the Company's reduction in overall debt offset by a
higher interest rate associated with the Company's subordinated debt, as
compared to its previous financing source.



                                       13
<PAGE>   14

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

RESULTS OF OPERATIONS (CONTINUED)

Income Before Income Taxes. Income before income taxes of $8.6 million in the FY
2000 Period increased $0.7 million, or 8.7%, from $7.9 million in the FY 1999
Period. This improvement was generally the result of higher volumes and improved
margin, somewhat offset by slightly higher operating expenses and lower other
income, net from the Medical Device segment.

Provision for Income Taxes. The Company's effective tax rate for both the FY
2000 and FY 1999 Period was 31.5%.

SEGMENT RESULTS

The Company operates in two business segments: Commercial Products, including
highly engineered seals and bearings, fluid handling components, tapes, films
and coated fabrics, hose and tubing, wire and cable, and plastic formed
components; and Medical Device Products, including critical care products,
infusion systems for medical and surgical applications. For additional financial
information about industry segments see Note 9 of the "Notes to Condensed
Consolidated Financial Statements" contained herein.

Commercial Products

<TABLE>
<CAPTION>
                       May 1,        May 2,
In thousands            1999          1998
-------------------------------------------
<S>                   <C>          <C>
Sales .............   $93,376      $97,974
Operating profit ..     7,972        9,593
</TABLE>

Net Sales. Commercial Products net sales for the FY 2000 Period decreased $4.6
million, or 4.7% from the FY 1999 Period. Domestically, net sales were strong in
several of the markets the Company serves including the truck,
telecommunications, coatings and industrial machinery markets. Improved demand
is beginning to be realized in the semiconductor market with double-digit growth
over the same period for the prior year. General softness in industrial
processing, commercial aircraft and material technology contributed to lower
shipments of products. Over the same period of the prior year, European sales
were down 11.8%, primarily from transportation and beverage hose markets.
Currency fluctuation was not a factor in this deterioration.

Gross Profit. The gross profit margin for the FY 2000 Period was 29.5%, a
decrease from 29.7% in the FY 1999 Period. This was the net result of lower
material costs, more than offset by fixed overhead increases of 0.6% of sales;
although in terms of dollars actual spending was reduced slightly. Categories
impacted in fixed overhead spending were increased depreciation, salaries, and
relocation expense, partially offset by reductions in workers compensation, and
general insurance expense.



                                       14
<PAGE>   15

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

RESULTS OF OPERATIONS (CONTINUED)

Selling, General and Administrative Expenses. SG&A expenses as a percentage of
net sales increased 1.0% to 21.0% for the FY 2000 Period, from the FY 1999
Period. This was principally the result of lower sales volumes. Actual expenses
increased less than $0.1 million, due to higher general and administrative
expenses in performance based incentive compensation, benefits, insurance and
relocation, somewhat offset by lower legal and bad debt expense. Additionally,
slightly lower selling and research and development costs were recorded.

Operating Profit. Operating profit decreased 16.9% to $8.0 million for the FY
2000 Period, from $9.6 million in the FY 1999 Period. The reduction in
profitability reflects lower net sales volumes and associated margins, and
slightly higher operating expenses.

Medical Device Products

<TABLE>
<CAPTION>
                        May 1,        May 2,
In thousands             1999          1998
---------------------------------------------
<S>                     <C>          <C>
Sales .............     $28,062      $21,831
Operating profit ..       3,021          112
</TABLE>


Net Sales. Net sales for the FY 2000 Period increased $6.2 million or 28.5% over
the FY 1999 Period. Domestically, contributing factors included increased demand
in the pressure monitoring and fluid and drug product lines, somewhat offset by
softness in infusion systems and vascular access volume. Improved demand in
Europe across most product lines, along with the impact of the Corotec GmbH
acquisition resulted in a 47.1% increase in sales (a 46.1% increase after
removing the effect of foreign currency exchange rate changes) over the same
period the prior year.

Gross Profit. The gross profit margin for the FY 2000 Period was 40.6% compared
to 37.2% in the FY 1999 Period. The improvement in margin was the net result of
higher volume and spending controls in variable and fixed overhead, partially
offset by product mix. In addition, start up costs incurred in the FY 1999
Period, in connection with the move of two production facilities from California
to Ohio, were not repeated in the FY 2000 Period.

Selling, General and Administrative Expenses. SG&A expenses as a percentage of
net sales for the FY 2000 and FY 1999 Periods, was 29.8% and 36.7%,
respectively. Actual expenses for the FY 2000 Period were up slightly over the
FY 1999 Period. The increase in general and administrative expense is the net
result of the full quarter effect of the Corotec GmbH acquisition. Additionally,
slightly lower selling and research and development costs were recorded.



                                       15
<PAGE>   16

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

RESULTS OF OPERATIONS (CONTINUED)

Operating Profit. Operating profit increased over 25 fold to $3.0 million for
the FY 2000 Period, from $0.1 million in the FY 1999 Period. This increase
reflects significantly higher net sales volumes and margins, slightly offset by
increased operating expenses.

LIQUIDITY AND CAPITAL RESOURCES

The Company's financial condition remained strong at May 1, 1999. The ratio of
current assets to current liabilities was 2.5 to 1.0, an increase from 2.3 to
1.0 at January 30, 1999. Net working capital of $84.7 million decreased by $0.8
million from January 30, 1999.

Cash Provided by Operating Activities. Cash provided by operating activities for
the FY 2000 Period increased to $12.1 million from $3.5 million the same period
prior year. This increase was primarily due to an increase in collections of
accounts receivable of $6.2 million, an increase of $4.6 million in income taxes
payable due to the ability of the Company to defer payments for the current
fiscal year to subsequent quarters, and net changes in working capital and other
long-term assets and liabilities.

Cash Used in Investing Activities. Cash used in investing activities for the FY
2000 Period of $4.4 million increased $1.6 million from the same period of the
prior year. This change was due primarily to the acquisition of Corotec GmbH
during the FY 1999 Period. Cash used in investing activities for the FY 1999
Period included cash balances of $3.0 million obtained in the acquisition.
During the FY 2000 Period, the Company invested $4.1 million in renovation of
existing facilities, leasehold improvements and the replacement of existing
equipment. Capital expenditures for the FY 2000 Period decreased $1.1 million
from $5.2 million in the FY 1999 Period.

The Company believes that it generates sufficient cash flow from its operations
to finance near and long-term internal growth and capital expenditures and to
make principal and interest payments on its loans payable to banks and the
senior subordinated notes. The Company continually evaluates its employment of
capital resources, including asset management and other sources of financing.

YEAR 2000 READINESS DISCLOSURE

        THE STATEMENTS SET FORTH BELOW ARE "YEAR 2000 READINESS DISCLOSURES"
WITHIN THE MEANING OF THE YEAR 2000 INFORMATION AND DISCLOSURE ACT AND INCLUDE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED, AND ARE EXPRESSLY QUALIFIED AS DESCRIBED BELOW UNDER "STATEMENT
REGARDING FORWARD LOOKING DISCLOSURE."



                                       16
<PAGE>   17

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

YEAR 2000 READINESS DISCLOSURE (CONTINUED)

        THE YEAR 2000 PROBLEM

        The so-called "Year 2000 (or Y2K) Problem" arises from information and
non-information technology systems, equipment and products that process
date/time data and concerns their ability to do so accurately, including
calculating, comparing and sequencing data from, into and between the twentieth
and twenty-first centuries, the years 1999 and 2000, and leap years. A system,
equipment or product that processes date/time data will be considered "Year 2000
(or Y2K) compliant" if it is able to accurately process the date/time data in
all material respects. Similarly, a third party upon which the Company depends
will be considered Y2K compliant if its relevant internal and external systems,
equipment, products and services are Y2K compliant. The failure of the Company's
date/time dependent systems, equipment or products, or those of a third party
upon which it depends, to be Y2K compliant could affect the Company's ability to
conduct its business in the ordinary course which, in turn, could have a
material adverse effect on the Company's business, financial condition or
results of operations.

        OVERVIEW OF THE COMPANY'S Y2K READINESS PROGRAM

        The Company first began addressing the Y2K Problem in 1994 in connection
with a reorganization of its operations. Since then, to implement the new
organization and assimilate subsequent acquisitions and other changes, the
Company has replaced substantially all of its information technology systems and
equipment with new items that are Y2K compliant. In 1997, the Company formed a
cross-functional Year 2000 Compliance Team which began to develop and implement
its current Y2K Readiness Program covering all of the areas described below.
Today, all of the Company's business functions are involved in a comprehensive
effort to minimize, if not in some cases eliminate, the Year 2000 Problem as it
impacts their internal and external customers.

        The Company has generally divided its Program into three phases to
address the Year 2000 Problem, with a particular emphasis given to "mission
critical" systems, equipment, and suppliers and other third parties. The Company
defines a "mission critical" system or equipment as one which must be working
properly to enable the Company to meet commitments to customers or other third
parties in a timely manner and without having to materially increase costs. A
"mission critical" supplier or other third party is one where it is reasonably
likely that if they fail to supply their products or services timely and
completely due to their Y2K problems or those of a third party upon which they
depend, it would materially delay the Company's product/service delivery
schedule, materially increase the Company's costs or otherwise have a material
adverse effect on the Company. The three phases of the Company's Y2K Readiness
Program generally are:



                                       17
<PAGE>   18

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

YEAR 2000 READINESS DISCLOSURE (CONTINUED)

        o Inventory and Assessment. Identify all of the Company's systems,
          equipment, products, suppliers and other relevant third parties
          potentially impacted by the Y2K Problem, determine which of them are
          mission critical and determine the likely nature and extent that
          mission critical items and entities and selected others will be
          impacted.

        o Remediation and Validation. Make the necessary changes to make mission
          critical and selected other items Y2K compliant. For the Company's
          mission critical systems and equipment, perform systems testing to
          ensure they are Y2K compliant and for selected mission critical
          suppliers and other relevant third parties, independently audit their
          relevant operations to confirm Y2K compliance.

        o Contingency Planning. Determine the need for a contingency plan for
          mission critical items and develop a plan for those that are selected.

        PRODUCTS

        The products currently offered for sale by the Company either are not
designed to process date/time data or are not functionally dependent on that
data and, thus, there are no material Y2K Problems with respect to the
performance of any of them. Similarly, the Company believes that there are no
material Y2K Problems with respect to the performance of any of its past
products that are likely to still be in use.

        INFORMATION TECHNOLOGY SYSTEMS AND EQUIPMENT

        The status of the Company's Program with respect to its "Information
Technology Systems and Equipment" (i.e., all of its (1) business information
systems (applications, utility, systems management tools and operating system
software programs; middleware; firmware; hardware (including mid-range, mini-
and personal computers, servers and related BIOS, other chips and microcode))
and (2) technical infrastructure (network, intranet- and internet-related, and
telecommunications equipment and related software programs)) is as follows:

        o Inventory and Assessment. Completed.

        o Remediation and Validation. Completed.

        o Contingency Planning. In progress; scheduled to be completed by June
          30, 1999. The plan is expected to include provisions for (1) redundant
          U.S. system backups on December 31, 1999 at two separate locations,
          (2) manual systems that do not rely on computers and (3) "swat" teams
          which starting Saturday, January 1, 2000, will be either at each site
          or on standby and who will be selectively re-testing mission critical
          items. The Company also has designated Monday, January 3, 2000, as one
          of its New Year's holidays to provide additional time for the swat
          teams to remediate potential Y2K failures.



                                       18
<PAGE>   19

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

YEAR 2000 READINESS DISCLOSURE (CONTINUED)

        NON-INFORMATION TECHNOLOGY SYSTEMS AND EQUIPMENT

        The status of the Company's Program with respect to its "Non-Information
Technology Systems and Equipment" (i.e., all of its systems and equipment which
are not "Information Technology Systems and Equipment, including: machinery and
equipment used in the research, development, testing, servicing or production of
its products; elevators; plant heating, cooling and other non-IT systems;
emissions and other pollution control systems; fire; security systems; etc.) is
as follows:

        o Inventory and Assessment. Completed.

        o Remediation and Validation. Over 95% complete with remainder to be
          completed by June 30, 1999.

        o Contingency Planning. In progress; scheduled to be completed by the
          beginning of September 1999. The plan is expected to include
          provisions similar to those for the Information Technology Systems and
          Equipment.

        SUPPLIERS

        The status of the Company's Program with respect to its "Suppliers"
(i.e., all third party raw material and other suppliers, vendors, utilities
(electric, water, trash, gas, etc.), telecommunication providers, transportation
services, and other non-governmental third parties upon whose products or
services the Company depends to conduct its business (excluding distributors and
independent sales representatives which are discussed below)) is as follows:

        o Inventory and Assessment. The Company has identified all of its
          mission critical Suppliers and requested Y2K compliance assurances
          from each of them. Over 75% have stated they expect to be Y2K
          compliant at varying times prior to January 1, 2000, with almost half
          of those indicating they are currently compliant. The Company is
          following up with all of those who have not responded or indicated an
          expected compliance date.

        o Remediation and Validation. So far, none of the Company's mission
          critical Suppliers have stated they will not be Y2K compliant. The
          Company is in the process of performing a subjective risk assessment
          of its mission critical Suppliers (excluding utilities and
          telecommunication providers) who are sole or limited source, are
          thinly capitalized, have indicated a stated Y2K compliance date later
          than June 30, 1999, or have not stated they will be Y2K compliant by
          December 31, 1999. Based on that assessment, the Company will seek to
          selectively audit those that it believes pose the greatest risk and
          depending on the results of the risk assessment and audit, either seek
          to replace them or develop a contingency plan that reduces the risk to
          an acceptable level. The Company expects to complete most of these
          audits by June 30, 1999 and the remainder in July 1999.



                                       19
<PAGE>   20

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

YEAR 2000 READINESS DISCLOSURE (CONTINUED)

        o Contingency Planning. The Company intends to develop a written
          contingency plan for each mission critical Supplier which it believes
          poses a significant risk. The Company expects to complete preliminary
          contingency plans for most of these Suppliers by June 30, 1999 and the
          remainder in July 1999 and then refine and finalize them over the
          balance of the year. For those who are raw material Suppliers, the
          contingency plans are expected to involve principally the stockpiling
          in the months before January 1, 2000 of varying levels of the raw
          material depending on the degree of perceived risk. Depending on the
          circumstances, other raw material and service Supplier contingencies
          may include using other compliant Suppliers or raw materials/services
          which are already qualified as secondary sources or qualifying new
          material/services from existing or new compliant Suppliers. The
          Company also intends to develop contingency plans for isolated Y2K
          failures of its utilities or telecommunication providers, which in
          addition to the items described above for the Company's systems and
          equipment, are primarily expected to involve identifying alternative
          sources, if possible. However, the Company does not intend to develop
          or implement further contingency plans for extended or widespread
          local, regional or national utility or telecommunication provider
          failures. The Company believes that even if it is possible to develop
          effective plans for those risks, they would require significant
          expenditures that, in the Company's view, are not warranted in light
          of the perceived risk and potential benefits.

        DISTRIBUTORS AND INDEPENDENT SALES REPRESENTATIVES

        The Company is in the process of surveying its authorized distributors
and independent sales representatives to determine their state of Y2K readiness.
The Company expects to complete this assessment by December 31, 1999. In the
event a distributor or independent sales representative is not Y2K compliant
and, as a result, is materially unable to perform services for the Company in
the ordinary course, the Company may replace them or seek to sell direct.

        CUSTOMERS

        The Company is in the processing of determining the state of Y2K
readiness of customers representing over half of its annual net sales for each
of its segments. For those that are public companies, the Company is reviewing
their public filings to determine their state of readiness. The Company also
intends to survey certain of its key customers directly to determine their state
of Y2K readiness. The Company expects to complete this assessment by December
31, 1999. For the year ended January 30, 1999, no single customer accounted for
more than 4% or 8%, respectively, of the Company's net sales of Commercial and
Medical Device products.



                                       20
<PAGE>   21

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

YEAR 2000 READINESS DISCLOSURE (CONTINUED)

        COSTS

        The Company estimates that to date it has directly incurred the
following costs to address the Y2K Problem: (1) approximately $200,000 of
capital expenditures and other out-of-pockets costs; (2) an undetermined amount
for internal time; and (3) miscellaneous communications (postage, fax, etc.) and
other immaterial costs. In addition, the Company expended approximately $9
million between 1994 and 1998 replacing Information Technology Systems and
Equipment with systems and equipment that are Y2K compliant and has expended
approximately $1.7 million, and expects to have recurring operating costs of
approximately $1.1 million per year, to lease upgraded personal computers.
However, these latter expenditures and operating costs were scheduled to occur
without regard to the Y2K Problem or the Company's Program.

        RISKS

        The Company believes that the most significant Y2K-related risks it
faces include (1) unanticipated Supplier failures, especially involving
breakdowns of utilities or transportation or telecommunications services, (2)
foreign or domestic customs failures, (3) other foreign or domestic government
failures, (4) failures of foreign or domestic banking or financial systems, (5)
any other failures beyond our reasonable control and (6) unanticipated failures
on our part to address Y2K-related issues. The most reasonably likely worst case
scenario in light of these risks would involve a potential loss in sales
resulting from production and shipping delays caused by Y2K-related disruptions
and the potential costs of related legal proceedings. The degree of sales loss
and associated costs would likely depend on the severity of the disruption, the
time required to correct it, whether the sales loss was temporary or permanent,
and the degree to which our primary competitors were also impacted by the
disruption. However, subject to the risks and other cautionary statements noted
above and elsewhere in this document, at this time the Company does not
anticipate that the Y2K Problem will have a material adverse effect on the
Company's business, financial condition or results of operation, although no
assurance to that effect can be given.

EURO CONVERSION

Eleven of the fifteen member countries of the European Monetary Union agreed to
adopt the euro as their common legal currency commencing January 1, 1999. Fixed
conversion rates between these participating countries' present currencies, or
"legacy currencies", and the euro were established as of January 1, 1999. The
legacy currencies are scheduled to remain legal tender in the participating
countries as denominations of the euro until January 1, 2002. Beginning January
1, 2002, the participating countries will issue new euro-denominated bills and
coins. No later than July 1, 2002, the participating countries will withdraw all
bills and coins denominated in their legacy currencies.



                                       21
<PAGE>   22

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

EURO CONVERSION (CONTINUED)

Transition to the euro creates a number of issues for the Company. Business
issues that must be addressed include product pricing policies and ensuring the
continuity of business and financial contracts. The increased price transparency
resulting from the use of a single currency may affect the ability of the
Company to price its products differently in the various European markets. For
the quarter ended May 1, 1999, approximately 16% of the Company's net sales were
made to countries that have agreed to adopt the euro as their currency. Finance
and accounting issues include the conversion of accounting systems, statutory
records, tax books and payroll systems to the euro, as well as conversion of
bank accounts and other treasury and cash management activities.

While the Company is still in the process of assessing potential issues caused
by conversion to the euro and possible ways to resolve those issues, based on
the information currently available to it, the Company does not expect that
conversion to the euro will have a material adverse impact on its results of
operations, financial position or liquidity.

OTHER CONTINGENCIES

For information regarding environmental matters and other contingencies, see
Note 6 of the "Notes to Condensed Consolidated Financial Statements" and the
"Risk Factors" section of the Company's 1999 Annual Report on Form 10-K.

STATEMENT REGARDING FORWARD LOOKING DISCLOSURE

This Quarterly Report on Form 10-Q contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended, including, without
limitation, statements that include the words "believes," "expects,"
"anticipates," or similar expressions and statements relating to anticipated
cost savings, the Company's Year 2000 readiness effort and progress toward that
goal, the Company's Year 2000 Readiness Disclosure, Euro conversion,
Quantitative and Qualitative Disclosures About Market Risk, the Company's
strategic plans, capital expenditures, industry trends and prospects and the
Company's financial position. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual results,
performance or achievements of the Company to differ materially from those
expressed or implied by such forward-looking statements. Although the Company
believes that its plans, intentions and expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
plans, intentions or expectations will be achieved. For a more complete
discussion of risk factors, please refer to the "Risk Factors" section of the
Company's 1999 Annual Report on Form 10-K. All written and oral forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by the cautionary statements contained in
this Form 10-Q and cautionary statements and the "Risk Factors" section in the
Company's 1999 Annual Report on Form 10-K.



                                       22
<PAGE>   23

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        The market risk disclosures set forth in the Company's 1999 Annual
        Report on Form 10-K have not changed significantly through the quarter
        ended May 1, 1999.



                                       23
<PAGE>   24

                           PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS.

        Not applicable.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.

        Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

        Not applicable.

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

        Not applicable.

ITEM 5. OTHER INFORMATION.

        Not applicable.



                                       24
<PAGE>   25

                     PART II - OTHER INFORMATION (CONTINUED)


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

        (a) Exhibits:

        10.3A* Amendments 1999-1 and 1999-2 to Supplemental Executive Retirement
               Plan

        27     Financial Data Schedule.

        (b) Reports on Form 8-K:

            The Company filed a Form 8-K on April 30, 1999 reporting the
            adoption of a new shareholder rights plan that will replace its
            current shareholder rights plan which expires on May 31, 1999.





           * A management contract or compensatory plan or agreement.



                                       25
<PAGE>   26

                               PART II (CONTINUED)




                                   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.



                                  FURON COMPANY

                                   REGISTRANT





<TABLE>
<S>                                         <C>
/s/ MONTY A. HOUDESHELL                     /s/ DAVID L. MASCARIN
---------------------------------------     ------------------------------------
Monty A. Houdeshell                         David L. Mascarin
Vice President, Chief Financial Officer     Controller
</TABLE>




June 9, 1999



<PAGE>   27
                                 EXHIBIT INDEX


        10.3A* Amendments 1999-1 and 1999-2 to Supplemental Executive Retirement
               Plan

        27     Financial Data Schedule.



           * A management contract or compensatory plan or agreement.