<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 10-Q

   X     Quarterly report pursuant to Section 13 or 15(d) of the Securities 
-----    Exchange Act of 1934 for the quarterly period ended MARCH 31, 1998 or


         Transition report pursuant to Section 13 or 15(d) of the Securities 
         Exchange Act of 1934


                         COMMISSION FILE NUMBER 1-10981


                             SBS TECHNOLOGIES, INC.



              New Mexico                               85-0359415
    (State or other jurisdiction of        (IRS Employer Identification Number)
    incorporation or organization)


                             2400 Louisiana Blvd. NE
                            AFC Building 5, Suite 600
                          Albuquerque, New Mexico 87110
                                 (505) 875-0600


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 and (2) has been subject to such filing requirements for
the past 90 days.

                                           YES     X         NO
                                                  ---             ---

             As of April 30, 1998, the Registrant had 5,658,035 shares 
                          of its common stock outstanding.

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------

                               ASSETS                                      March 31, 1998              June 30, 1997
                                                                      --------------------------   ---------------------
<S>                                                                           <C>                           <C>
Current assets:
     Cash and cash equivalents                                            $     21,952,739                   21,661,671
     Receivables, net (note 2)                                                  10,586,868                    9,244,269
     Inventories (note 3)                                                       10,153,737                    7,705,470
     Deferred income taxes                                                       1,440,000                    1,327,000
     Income tax receivable                                                         120,378                            -
     Prepaid expenses                                                              315,065                      232,283
     Other current assets                                                          143,782                      128,560
                                                                           ----------------             ----------------
          Total current assets                                                  44,712,569                   40,299,253
                                                                           ----------------             ----------------

Property and equipment, at cost                                                  7,064,345                    4,729,259
     Less accumulated depreciation                                               2,776,048                    2,247,408
                                                                           ----------------             ----------------
          Net property and equipment                                             4,288,297                    2,481,851
                                                                           ----------------             ----------------

Intangible assets, net                                                          17,212,786                   14,099,254

Deferred income taxes                                                            3,900,000                    4,253,000

Other assets                                                                        51,221                       31,656
                                                                           ----------------             ----------------

          Total assets                                                    $     70,164,873                   61,165,014
                                                                           ----------------             ----------------
                                                                           ----------------             ----------------

                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Current portion of long-term debt (note 5)                           $      2,954,063                       13,316
     Notes payable to related parties (note 5)                                          -                     1,000,000
     Accounts payable                                                            2,629,971                    1,541,846
     Accrued representative commissions                                            349,085                      449,699
     Accrued salaries                                                            1,730,365                    1,868,623
     Accrued compensated absences                                                  685,958                      560,061
     Income taxes                                                                        -                    1,095,162
     Other current liabilities                                                   1,071,174                    1,493,368
                                                                           ----------------             ----------------
          Total current liabilities                                              9,420,616                    8,022,075

Long-term liabilities:
     Notes payable to related parties (note 5)                                           -                    2,816,251
                                                                           ----------------             ----------------
          Total long-term liabilities                                                    -                    2,816,251
                                                                           ----------------             ----------------

          Total liabilities                                                      9,420,616                   10,838,326
                                                                           ----------------             ----------------

Stockholders' equity:
     Common stock, no par value; 100,000,000 shares authorized, 
     5,638,323 issued and outstanding at March 31, 1998 
     5,405,381 issued and outstanding at June 30, 1997                          47,168,488                   43,889,754
     Common stock warrants                                                          79,563                      111,286
     Retained earnings                                                          13,496,206                    6,325,648
                                                                           ----------------             ----------------
          Total stockholders' equity                                            60,744,257                   50,326,688
                                                                           ----------------             ----------------

          Total liabilities and stockholders' equity                      $     70,164,873                   61,165,014
                                                                           ----------------             ----------------
                                                                           ----------------             ----------------
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                     Page 2
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------

                                                        Nine Months Ended March 31                  Three Months Ended March 31
                                                    -----------------------------------         -----------------------------------
                                                         1998                1997                    1998               1997
                                                    ----------------    ---------------         ----------------   ----------------
<S>                                                 <C>                 <C>                     <C>                <C>
Sales                                                   $53,634,931         37,736,431               18,893,283         14,206,062

Cost of sales                                            23,311,661         17,975,657                8,049,751          6,609,181
                                                    ----------------    ---------------         ----------------   ----------------
        Gross Profit                                     30,323,270         19,760,774               10,843,532          7,596,881

Selling, general and administrative expense              11,935,699          7,584,841                4,262,961          2,716,372

Research and development expense                          5,607,995          2,871,852                1,935,026          1,355,886

Acquired in-process research and
     development charge                                           -         11,000,000                        -                  -

Amortization of intangible assets                         1,418,721          1,034,337                  522,243            472,402
                                                    ----------------    ---------------         ----------------   ----------------
        Operating income                                 11,360,855         (2,730,256)               4,123,302          3,052,221
                                                    ----------------    ---------------         ----------------   ----------------

Interest income                                             831,690            280,049                  263,876            176,954

Interest expense                                           (141,387)          (426,996)                 (46,320)          (124,831)
                                                    ----------------    ---------------         ----------------   ----------------
                                                            690,303           (146,947)                 217,556             52,123
                                                    ----------------    ---------------         ----------------   ----------------

Income before income taxes                               12,051,158         (2,877,203)               4,340,858          3,104,344

Income taxes                                              4,880,600         (1,151,500)               1,757,100          1,241,100
                                                    ----------------    ---------------         ----------------   ----------------

Net income (loss)                                       $ 7,170,558         (1,725,703)               2,583,758          1,863,244
                                                    ----------------    ---------------         ----------------   ----------------
                                                    ----------------    ---------------         ----------------   ----------------


Net income (loss) per common share                      $      1.29              (0.41)                    0.46               0.35
                                                               ====              =====                     ====               ====

Net income (loss) per common share -
     assuming dilution                                  $      1.17              (0.41)                    0.42               0.31
                                                               ====              =====                     ====               ====
</TABLE>

    See accompanying notes to condensed consolidated financial statements

                                     Page 3

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------

                                                                                                                         
                                                       Common                                                           Total
                                                        stock                    Common                                 stock-
                                         -----------------------------------      stock            Retained            holders'
                                            Shares           Amount             warrants           earnings             equity
                                         -------------  -----------------   -----------------  -----------------   -----------------
<S>                                        <C>               <C>                    <C>              <C>                 <C>
Balance at June 30, 1997                    5,405,381        $43,889,754            $111,286        $ 6,325,648         $50,326,688

Exercise of stock options
        and warrants                          232,942          1,640,757             (31,723)                 -           1,609,034
Income tax benefit from stock
        options exercised                                      1,637,977                                                  1,637,977
Net income                                          -                  -                   -          7,170,558           7,170,558
                                         -------------     --------------     ---------------     --------------     ---------------

Balance at March 31, 1998                   5,638,323        $47,168,488            $ 79,563        $13,496,206         $60,744,257
                                         -------------     --------------     ---------------     --------------     ---------------
                                         -------------     --------------     ---------------     --------------     ---------------
</TABLE>

    See accompanying notes to condensed consolidated financial statements

                                     Page 4


<PAGE>

                   SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

                                                                                    Nine Months Ended March 31
                                                                               --------------------------------------
                                                                                    1998                  1997
                                                                               ----------------      ----------------
<S>                                                                            <C>                   <C>
Cash flows from operating activities:

     Net income (loss)                                                               $7,170,558           (1,725,703)
                                                                               ----------------      ----------------

     Adjustments to reconcile net income to net cash provided by operating
         activities:

             Depreciation                                                              672,315               432,191
             Amortization of intangible assets                                       1,418,721             1,034,337
             Bad debt expense                                                          225,430               204,503
             Deferred income taxes                                                     240,000            (4,527,000)
             Gain on disposition of assets                                            (232,365)                 (503)
             Imputed interest                                                          137,812                82,327
             Acquired in-process research and development charge                             -            11,000,000
             Changes in assets and liabilities:
                Receivables                                                           (624,112)           (1,141,317)
                Inventories                                                         (1,972,956)             (831,037)
                Prepaids and other assets                                              (96,458)              (12,330)
                Accounts payable                                                       911,388              (224,112)
                Accrued representative commissions                                    (140,854)              127,225
                Accrued salaries                                                      (212,196)              632,379
                Accrued compensated absences                                           115,926                39,074
                Income taxes                                                           368,400             1,083,777
                Other current liabilities                                             (263,408)             (110,476)
                                                                               ----------------      ----------------
                    Net adjustments                                                    547,643             7,789,038
                                                                               ----------------      ----------------

                    Net cash provided by operating activities                        7,718,201             6,063,335
                                                                               ----------------      ----------------

Cash flows from investing activities:
     Cash received from sale of assets                                                  54,200                     -
     Business acquisitions (note 5)                                                 (5,565,603)          (20,511,319)
     Acquisition of property and equipment                                          (2,511,448)             (824,049)
                                                                               ----------------      ----------------

                    Net cash used by investing activities                           (8,022,851)          (21,335,368)
                                                                               ----------------      ----------------
</TABLE>
                                   (Continued)
                                     Page 5
<PAGE>


                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

                                                                                    Nine Months Ended March 31
                                                                               --------------------------------------
                                                                                    1998                  1997
                                                                               ----------------      ----------------
<S>                                                                            <C>                   <C>
Cash flows from financing activities:
     Payments on notes payable to related parties                                   (1,000,000)                    -
     Payments on long-term borrowings and capitalized leases                           (13,316)           (7,067,839)
     Proceeds from exercise of stock options and warrants                            1,609,034             1,749,947
     Net proceeds from sale of common stock                                                 -             35,524,448
                                                                               ----------------      ----------------

                    Net cash provided by financing activities                          595,718            30,206,556
                                                                               ----------------      ----------------

Net increase in cash and cash equivalents                                              291,068            14,934,523

Cash and cash equivalents at beginning of period                                    21,661,671             1,130,030
                                                                               ----------------      ----------------

Cash and cash equivalents at end of period                                          $21,952,739           16,064,553
                                                                               ----------------      ----------------
                                                                               ----------------      ----------------

Supplemental disclosure of cash flow information:

     Interest paid                                                                  $     3,564              274,892
     Income taxes paid                                                                4,272,200            2,285,277

     Noncash financing and investing activities:

     Assets acquired through capital leases                                         $        -                70,733
     Income tax benefit of stock options exercised                                    1,637,977            1,645,740

     Summary of assets, liabilities, and equity acquired through acquisition:

             Cash and cash equivalents                                              $   239,021               23,489
             Receivables                                                                943,917            2,157,225
             Inventories                                                                475,311            2,412,589
             Deferred income tax                                                             -                65,963
             Prepaid expenses                                                            21,111              213,115
             Goodwill                                                                 4,532,254           10,032,643
             Property and equipment                                                      25,817            1,065,180
             Accumulated depreciation                                                        -              (609,322)
             Accounts payable                                                          (176,737)            (441,134)
             Accrued representative commissions                                         (40,240)             (17,240)
             Accrued salaries                                                           (73,938)            (108,099)
             Accrued compensated absences                                                (9,971)            (154,135)
             Debt                                                                            -              (404,277)
             Income taxes                                                               (54,037)               1,552
             Other current liabilities                                                  (77,884)            (278,733)
             Common stock
                                                                                             -               (68,000)
             Retained earnings                                                      $        -              (683,829)
                                                                               ----------------      ----------------
                                                                               ----------------      ----------------
</TABLE>

      See accompanying notes to condensed consolidated financial statements
                                     Page 6
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Unaudited)

1)     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       The accounting policies as set forth in SBS Technologies, Inc.'s (the
       "Company") Annual Report on Form 10-K dated September 26, 1997 have been
       adhered to in preparing the accompanying interim consolidated financial
       statements. These statements are unaudited but include all adjustments,
       consisting of normal recurring adjustments, that the Company considers
       necessary for a fair presentation of the results for such interim period.
       Results for an interim period are not necessarily indicative of results
       for a full year.


2)     RECEIVABLES, NET

       Receivables, net consisted of the following:

<TABLE>
<CAPTION>
                                                                         MARCH 31, 1998          JUNE 30, 1997
                                                                         --------------          -------------
<S>                                                                      <C>                     <C>
                  Accounts receivable                                     $11,036,167              9,545,264
                          Less:  allowance for doubtful accounts             (449,299)              (300,995)
                                                                         ------------          -------------
                                                                          $10,586,868              9,244,269
                                                                         ------------          -------------
                                                                         ------------          -------------
</TABLE>

3)     INVENTORIES

       Inventories are valued at average cost, which does not exceed market.

<TABLE>
<CAPTION>
                                                                         MARCH 31, 1998          JUNE 30, 1997
                                                                         --------------          -------------
<S>                                                                      <C>                     <C>
                  Raw materials                                           $ 4,954,362              3,211,502
                  Work in process                                           3,164,681              2,953,140
                  Finished goods                                            2,034,694              1,540,828
                                                                          -----------             ----------

                                                                         $ 10,153,737              7,705,470
                                                                          -----------             ----------
                                                                          -----------             ----------
</TABLE>

4)     EARNINGS PER SHARE

       Effective with the quarter ended December 31, 1997, the Company adopted
       SFAS No. 128, "Earnings Per Share." In accordance with SFAS No. 128, all
       previously reported earnings (loss) per share amounts have been restated
       to comply with SFAS No. 128. Net income (loss) per share is based on
       weighted average shares outstanding. Net income (loss) per share assuming
       dilution includes the dilutive effects of potential common shares
       outstanding during the period (i.e. options and warrants).

       A reconciliation of the numerator and denominator of the per share and
       per share - assuming dilution calculation follows:


                                     Page 7


<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Continued)

<TABLE>
<CAPTION>
                                                                         NINE MONTHS ENDED MARCH 31
                                                   ------------------------------------------------------------------------
                                                                    1998                               1997
                                                   ------------------------------------ -----------------------------------
                                                      Income       Shares    Per-Share     Loss        Shares    Per-Share
                                                   (Numerator) (Denominator)   Amount     (Numerator) (Denominator)  Amount
                                                   ----------- ------------- ---------- ----------- ------------- ---------
<S>                                                <C>         <C>           <C>        <C>         <C>           <C>
NET INCOME (LOSS) PER COMMON SHARE
Income (Loss) Available to Common Stockholders     $7,170,558   5,557,505      $ 1.29   ($1,725,703) 4,211,660    ($ 0.41)
                                                                               ------                             --------
                                                                               ------                             --------
EFFECT OF DILUTIVE SECURITIES
Dilutive options and warrants                                    585,901
                                                   ----------- -------------            ----------- -------------
NET INCOME (LOSS) PER COMMON SHARE
-ASSUMING DILUTION
Income (Loss) Available to Common Shareholders     $7,170,558   6,143,406      $ 1.17   ($1,725,703) 4,211,660    ($ 0.41)
                                                                               ------                             --------
                                                                               ------                             --------
</TABLE>

<TABLE>
<CAPTION>
                                                                        THREE MONTHS ENDED MARCH 31
                                                   ------------------------------------------------------------------------
                                                                    1998                               1997
                                                   ------------------------------------ -----------------------------------
                                                      Income       Shares     Per-Share     Income        Shares    Per-Share
                                                   (Numerator) (Denominator)    Amount     (Numerator) (Denominator)  Amount
                                                   ----------- ------------- ---------- ----------- ------------- ---------
<S>                                                <C>         <C>           <C>        <C>         <C>           <C>
NET INCOME (LOSS) PER COMMON SHARE
Income (Loss) Available to Common Stockholders     $2,583,758   5,624,928      $ 0.46    $1,863,244  5,349,065    $ 0.35
                                                                               ------                             --------
                                                                               ------                             --------
EFFECT OF DILUTIVE SECURITIES
Dilutive options and warrants                                    555,061                              690,377
                                                   ----------- -------------            ----------- -------------
NET INCOME (LOSS) PER COMMON SHARE
-ASSUMING DILUTION
  Income (Loss) Available to Common Shareholders   $2,583,758   6,179,989      $ 0.42    $1,863,244  6,039,442    $ 0.31
                                                                               ------                             --------
                                                                               ------                             --------
</TABLE>


For the nine and three months ended March 31, 1998 and for the three months
ended March 31, 1997, options to purchase 429,400, 352,934 and 220,510 shares of
common stock, respectively, were outstanding but were not included in the
computation of net income per common share - assuming dilution because the
options' exercise price was greater than the average market price of the common
shares.


5)     BUSINESS ACQUISITIONS

       On November 24, 1997, the Company completed the purchase of Micro
       Alliance, Inc. ("Micro Alliance"), a privately held San Diego
       county-based manufacturer of industrial computer enclosures and systems.
       Micro Alliance specializes in the design and manufacture of
       special-purpose PC-compatible computer systems offering a variety of CPU
       boards and system enclosures, including rack mount, desktop and mobile
       systems. Most systems contain passive backplanes that allow the addition
       of up to 20 ISA and PCI cards. These systems are often customized to meet
       the needs of particular OEM applications. The Company acquired all of the
       outstanding capital stock of Micro Alliance for a total purchase price of
       $5.8 million. The acquisition was accounted for using the purchase method
       of accounting and $4.5 million of goodwill is being amortized over 10
       years. The financial results of Micro Alliance have been included in the
       Company's Consolidated Financial Statements from November 24, 1997.

       The purchase price was paid as follows:

<TABLE>
<CAPTION>

<S>                                                                <C>
           Cash                                                    $5,736,368
           Acquisition costs                                           68,256
                                                                  -----------
                                                                   $5,804,624
</TABLE>

                                     Page 8

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Continued)


       On November 18, 1996, the Company completed the purchase of Bit 3
       Computer Corporation ("Bit 3"), a Minneapolis-based manufacturer of
       computer networking and interconnection hardware. The Company acquired
       all of the outstanding capital stock of Bit 3 for a total purchase price
       of $24.0 million. Of this purchase price, $20.0 million was paid to the
       sellers in cash upon closing of the public stock offering. Of the balance
       of $4.0 million, $1.0 million was paid on July 1, 1997 and the balance of
       $3.0 million will be paid on July 1, 1998. The financial results of Bit 3
       have been included in the Company's Consolidated Financial Statements
       from November 18, 1996. In connection with the acquisition of Bit 3, the
       Company recorded an $11.0 million earnings charge in the quarter ended
       December 31, 1996, based on an assessment by the Company, in conjunction
       with an independent valuation firm, of purchased technology of Bit 3. The
       assessment determined that $11.0 million of Bit 3's purchase price
       represented technology that does not meet the accounting definitions of
       "completed technology," and thus should be charged to earnings under
       generally accepted accounting principles. In addition, as a result of the
       acquisition, the Company recorded $10.0 million of goodwill that is being
       amortized over a ten-year period.

       The following (unaudited) proforma consolidated results of operations
       have been prepared as if the acquisitions of Bit 3 and Micro Alliance had
       occurred at July 1, 1996:

<TABLE>
<CAPTION>
                                                           ($ in millions except per share amounts)
                                                        Nine Months Ended           Three Months Ended
                                                             MARCH 31                    MARCH 31
                                                             --------                    --------
<S>                                                     <C>           <C>           <C>            <C>
                                                        1998          1997          1998           1997
                                                        ----          ----          ----           ----
         Sales                                          55.9          48.1          18.9           15.5
         Net income (loss)                               7.1          (0.4)          2.6            1.9
         Net income (loss) per common share             1.28          (.07)          .46            .36
         Net income (loss) per common share-            
         Assuming dilution                              1.16          (.07)          .42            .32
</TABLE>

       The proforma information is presented for informational purposes only and
       is not necessarily indicative of the results of operations that actually
       would have been achieved had the acquisitions been consummated as of that
       time, nor is it intended to be a projection of future results.

                                     Page 9
<PAGE>

                     SBS TECHNOLOGIES INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1998



THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH THE
COMPANY'S FINANCIAL STATEMENTS AND NOTES THERETO. INFORMATION DISCUSSED HEREIN
MAY INCLUDE FORWARD-LOOKING STATEMENTS REGARDING FUTURE EVENTS OR THE FUTURE
FINANCIAL PERFORMANCE OF THE COMPANY, AND ARE SUBJECT TO A NUMBER OF RISKS AND
OTHER FACTORS WHICH COULD CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE CONTAINED IN ANY FORWARD LOOKING STATEMENTS. AMONG SUCH FACTORS ARE:
GENERAL BUSINESS AND ECONOMIC CONDITIONS; CUSTOMER ACCEPTANCE OF AND DEMAND FOR
THE COMPANY'S PRODUCTS; THE COMPANY'S OVERALL ABILITY TO DESIGN, TEST, AND
INTRODUCE NEW PRODUCTS ON A TIMELY BASIS; THE NATURE OF THE MARKETS ADDRESSED BY
THE COMPANY'S PRODUCTS; AND OTHER RISK FACTORS LISTED FROM TIME TO TIME IN
DOCUMENTS FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.


PUBLIC STOCK OFFERING

On November 18, 1996, the Company consummated a fully underwritten public stock
offering of 1,500,000 shares of the Company's Common Stock at a price of $25.625
per share. In addition, certain selling shareholders sold an additional 300,000
shares in the offering. The proceeds of the sale of the 300,000 additional
shares did not benefit the Company; however, the Company did receive the
exercise price of $4.80 per share from the exercise of warrants covering 100,000
of the shares. The offering was managed by an underwriting group led by Cowen &
Co. and SoundView Financial Group, Inc. The net proceeds to the Company of the
public stock offering were used to fund the acquisition of Bit 3 (see Recent
Acquisition below), to repay long-term debt, and the balance will be used for
general working capital requirements and future business acquisitions.


RECENT ACQUISITIONS

On November 24, 1997, the Company completed the purchase of Micro Alliance, a
privately held San Diego county-based manufacturer of industrial computer
enclosures and systems. Micro Alliance specializes in the design and manufacture
of special-purpose PC-compatible computer systems offering a variety of CPU
boards and system enclosures, including rack mount, desktop and mobile systems.
Most systems contain passive backplanes that allow the addition of up to 20 ISA
and PCI cards. These systems are often customized to meet the needs of
particular OEM applications. Under the terms of the purchase agreement dated
November 24, 1997 (the "Agreement") among the Company, Micro Alliance, a
California corporation, and Jeffery Huston, Edward Larson, and Sherrin W. Larson
(together "Shareholders"), the Company acquired all of the outstanding capital
stock of Micro Alliance for a total purchase price of $5.8 million. Of this
total purchase price, $250,000 in cash was placed in a joint escrow account
until the earlier of resolution of certain tax issues or the end of any
applicable statute of limitations. The financial results of Micro Alliance have
been included in the Company's Consolidated Financial Statements from November
24, 1997. As a result of the acquisition, the Company recorded $4.5 million of
goodwill, which is being amortized over a ten-year period.

On November 18, 1996, the Company completed the purchase of Bit 3. Bit 3 is a
Minneapolis-based manufacturer of computer networking and interconnection
hardware for many of the most widely used computer architecture standards in the
standard bus embedded computer market. Under the terms of the purchase agreement
dated October 8, 1996 (the "Acquisition Agreement") among the Company and the
two shareholders of Bit 3 (the "Sellers"), the Company acquired all of the
outstanding capital stock of Bit 3 for a total purchase price of $24.0 million
paid or to be paid from proceeds from the public stock offering and cash flow
from the Company's operations. Of this total purchase price, $20.0 million was
paid to the sellers in cash upon the closing of the offering. Of the balance of
$4.0 million, $1.0 million was paid to the Sellers on July 1, 1997 and $3.0
million will be paid to the sellers on July 1, 1998, pursuant to secured
promissory notes according to the terms of the Acquisition Agreement. The
financial results of Bit 3 have been included in the Company's Consolidated
Financial Statements

                                     Page 10

<PAGE>

                     SBS TECHNOLOGIES INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1998
                                   (Continued)


from November 18, 1996. In connection with the acquisition of Bit 3, the Company
recorded an $11.0 million earnings charge in the quarter ended December 31,
1996, based on an assessment by the Company, in conjunction with an independent
valuation firm, of purchased technology of Bit 3. The assessment determined that
$11.0 million of Bit 3's purchase price represented technology that does not
meet the accounting definitions of "completed technology," and thus should be
charged to earnings under generally accepted accounting principles. In addition,
as a result of the acquisition, the Company recorded $10.0 million of goodwill,
which is being amortized over a ten-year period.

The following (unaudited) proforma consolidated results of operations have been
prepared as if the acquisitions of Micro Alliance and Bit 3 had occurred at July
1, 1996:

<TABLE>
<CAPTION>
                                                           ($ in millions except per share amounts)
                                                       Nine Months Ended              Three Months Ended
                                                             MARCH 31                     MARCH 31
                                                             --------                     --------
<S>                                                     <C>           <C>           <C>            <C>
                                                        1998          1997          1998           1997
                                                        ----          ----          ----           ----
         Sales                                          55.9          48.1          18.9           15.5
         Net income (loss)                               7.1          (0.4)          2.6            1.9
         Net income (loss) per common share             1.28          (.07)          .46            .36
         Net income (loss) per common share-
         Assuming dilution                              1.16          (.07)          .42            .32
</TABLE>

The proforma information is presented for informational purposes only and is not
necessarily indicative of the results of operations that actually would have
been achieved had the acquisitions been consummated as of that time, nor is it
intended to be a projection of future results.


RESULTS OF OPERATIONS


NINE MONTHS ENDED MARCH 31, 1998 COMPARED TO NINE MONTHS ENDED MARCH 31, 1997

SALES. For the nine-month period ended March 31, 1998, sales 
increased 42.2%, or $15.9 million, from $37.7 million for the nine 
month period ended March 31, 1997, to $53.6 million. Of this 42.2% 
increase, sales contributed by Micro Alliance, which was acquired 
on November 24, 1997, comprised 6.8%, sales contributed by Bit 3, 
which was acquired on November 18, 1996, comprised 18.7%, and 
20.3% was attributable to the Company's other product lines, 
offset by 3.6% due to the sale of the Company's Judgmental Use of 
Force business on June 26, 1997. During the nine month period 
ended March 31, 1998, prices for the Company's products remained 
firm, and unit shipments increased across all product lines. 
Historically, less than 5% of the Company's sales were direct 
sales to Asian based customers. The Company experienced minimal 
direct affect (less than 2% of sales) on its operations due to the 
current Asian currency and economic crisis. Management believes 
that any future direct affect on the Company from the Asian 
currency and economic crisis will remain minimal; however, it is 
difficult for the Company to predict any indirect effect derived 
from sales to U.S. based customers whose products are sold into 
Asia.

                                     Page 11

<PAGE>

                     SBS TECHNOLOGIES INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 1998
                                   (Continued)


GROSS PROFIT. For the nine-month period ended March 31, 1998, gross profit
increased 53.0%, or $10.5 million, from $19.8 million for the nine-month period
ended March 31, 1997, to $30.3 million. For the nine-month period ended March
31, 1998, gross profit as a percentage of sales increased to 56.5% from 52.4%
for the nine-month period ended March 31, 1997. This increase was primarily due
to the acquisition of Micro Alliance and Bit 3, increased sales volume over
fixed costs, material cost improvements, a reduction in independent
representative sales commissions due to the movement from an independent sales
force to a direct sales force, and the sale of the Company's low margin
Judgmental Use of Force business.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. For the nine-month 
period ended March 31, 1998, selling, general and administrative 
(SG&A) expense increased 56.6%, or $4.3 million, from $7.6 million 
for the nine-month period ended March 31, 1997, to $11.9 million, 
resulting from the added expenditures due to the acquisitions of 
Bit 3 and Micro Alliance, and additional salaried sales personnel 
as the Company transitioned from an independent sales force to a 
direct sales force, as well as additional administrative staffing 
and promotional costs commensurate with the growth of the Company. 
For the same reasons, for the nine-month period ended March 31, 
1998, SG&A expense as a percentage of sales increased to 22.3% 
from 20.2% in the nine-month period ended March 31, 1997.

RESEARCH AND DEVELOPMENT EXPENSE. For the nine-month period ended March 31,
1998, research and development expense (R&D) increased 93.1%, or $2.7 million,
from $2.9 million for the nine-month period ended March 31, 1997, to $5.6
million, as a result of the added expenditures due to the acquisitions of Bit 3
and Micro Alliance as well as increased investment in new products in the
Company's other product areas. For the same reasons, for the nine-month period
ended March 31, 1998, R&D expense as a percentage of sales increased to 10.5%
from 7.7% in the nine-month period ended March 31, 1997.

ACQUIRED IN-PROCESS RESEARCH AND DEVELOPMENT CHARGE. For the nine-month period
ended March 31, 1997, in connection with the acquisition of Bit 3 completed on
November 18, 1996, the Company recorded an $11.0 million earnings charge based
on an assessment by the Company, in conjunction with an independent valuation
firm, of purchased technology of Bit 3. The assessment determined that $11.0
million of Bit 3's purchase price represented technology that does not meet the
accounting definitions of completed technology, and thus should be charged to
earnings under generally accepted accounting principles.

AMORTIZATION OF INTANGIBLE ASSETS. For the nine-month period ended March 31,
1998, amortization of intangible assets increased 40.0%, or $400,000, from $1.0
million for the nine-month period ended March 31, 1997, to $1.4 million. This
increase was the result of the amortization of goodwill associated with the
acquisitions of Bit 3 and Micro Alliance.

INTEREST INCOME. For the nine-month period ended March 31, 1998, interest income
increased 197.1%, or $552,000, from $280,000 for the nine-month period ended
March 31, 1997, to $832,000. This increase is due to earnings on surplus cash
from operations as well as earnings on cash received above the Company's
immediate requirements from the public offering consummated on November 18,
1996.

INTEREST EXPENSE. For the nine-month period ended March 31, 1998, interest
expense decreased 67.0%, or $286,000, from $427,000 for the nine-month period
ended March 31, 1997, to $141,000. This decrease is attributable to the
elimination of all bank debt effective November 22, 1996 by application of some
of the proceeds of the public offering . Of the $141,000 of interest expense for
the nine-month period ended March 31, 1998, $138,000 represents the imputed
interest associated with the remaining notes payable to the former owners of Bit
3 which will be completely paid down on July 1, 1998.

                                     Page 12


<PAGE>



                   SBS TECHNOLOGIES INC. AND SUBSIDIARIES
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               MARCH 31, 1998
                                 (Continued)


INCOME TAXES. For the nine-month period ended March 31, 1998 and the nine-month
period ended March 31, 1997, income taxes represented an effective income tax
rate of 40.5% and 40%, respectively. The increase in the effective income tax
rate is due to an increase in the federal tax rate associated with an increase
in the Company's estimated taxable income.

EARNINGS PER SHARE. For the nine-month period ended March 31, 1998, net income
(loss) per common share was $1.29 compared to ($0.41) for the nine-month period
ended March 31, 1997. The loss for the nine-month period ended March 31, 1997
was due to the $11.0 million charge (net of tax) to earnings associated with the
acquisition of Bit 3. For the nine-month period ended March 31, 1997, net income
per common share before the charge to earnings was $1.16. For the nine- month
period ended March 31, 1998, net income (loss) per common share assuming
dilution was $1.17 compared to ($0.41) for the nine-month period ended March 31,
1997. For the nine-month period ended March 31, 1997, net income per common
share assuming dilution before the charge to earnings was $0.96.


THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE MONTHS ENDED MARCH 31, 1997

SALES. For the three-month period ended March 31, 1998, sales increased 
33.1%, or $4.7 million, from $14.2 million for the three-month period ended 
March 31, 1997, to $18.9 million. Of this 33.1% increase, sales contributed 
by Micro Alliance, which was acquired on November 24, 1997, comprised 13.1% 
of this increase and 24.0% of this increase was attributable to the Company's 
other product lines, offset by 4.0% due to the sale of the Company's 
Judgmental Use of Force business on June 26, 1997. During the three month 
period ended March 31, 1998, prices for the Company's products remained firm, 
and unit shipments increased in all product lines, with the exception of the 
Company's telemetry product line, which declined compared to the three-month 
period ended March 31, 1997. Historically, less than 5% of the Company's 
sales were direct sales to Asian based customers. The Company experienced 
minimal direct affect (less than 2% of sales) on its operations due to the 
current Asian currency and economic crisis. Management believes that any 
future direct affect on the Company from the Asian currency and economic 
crisis will remain minimal; however, it is difficult for the Company to 
predict any indirect effect derived from sales to U.S. based customers whose 
products are sold into Asia.

GROSS PROFIT. For the three-month period ended March 31, 1998, gross profit
increased 42.1%, or $3.2 million, from $7.6 million for the three-month period
ended March 31, 1997, to $10.8 million. For the three-month period ended March
31, 1998, gross profit as a percentage of sales increased to 57.4% from 53.5%
for the three-month period ended March 31, 1997. This increase was primarily due
to the acquisition of Micro Alliance, increased sales volume over fixed costs,
material cost improvements, a reduction in independent representative sales
commissions due to the movement from an independent sales force to a direct
sales force, and the sale of the Company's low margin Judgmental Use of Force
business.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. For the three month period ended
March 31, 1998, selling, general and administrative (SG&A) expense increased
59.3%, or $1.6 million, from $2.7 million for the three-month period ended March
31, 1997, to $4.3 million, resulting from the added expenditures due to the
acquisition of Micro Alliance, additional salaried sales personnel as the
Company transitioned from an independent sales force to a direct sales force, as
well as additional administrative staffing and promotional costs commensurate
with the growth of the Company. For the same reasons, for the three-month period
ended March 31, 1998, SG&A expense as a percentage of sales increased to 22.6%
from 19.1% in the three-month period ended March 31, 1997.

                                    Page 13


<PAGE>

                   SBS TECHNOLOGIES INC. AND SUBSIDIARIES
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                              MARCH 31, 1998
                                (Continued)


RESEARCH AND DEVELOPMENT EXPENSE. For the three-month period ended March 31,
1998, research and development expense (R&D) increased 35.7%, or $500,000, from
$1.4 million for the three-month period ended March 31, 1997, to $1.9 million,
as a result of the added expenditures due to the acquisition of Micro Alliance
as well as increased investment in new products in the company's other product
areas. For the same reasons, for the three-month period ended March 31, 1998,
R&D expense as a percentage of sales increased to 10.2% from 9.5% in the
three-month period ended March 31, 1997.

AMORTIZATION OF INTANGIBLE ASSETS. For the three-month period ended March 31,
1998, amortization of intangible assets increased 10.6%, or $50,000, from
$472,000 for the three-month period ended March 31, 1997, to $522,000. This
increase was the result of the amortization of goodwill associated with the
acquisition of Micro Alliance.

INTEREST INCOME. For the three-month period ended March 31, 1998, interest
income increased 49.2%, or $87,000, from $177,000 for the three-month period
ended March 31, 1997, to $264,000. This increase is due to earnings on surplus
cash from operations as well as earnings on cash received above the Company's
immediate requirements from the public offering consummated on November 18,
1996.

INTEREST EXPENSE. For the three-month period ended March 31, 1998, interest
expense decreased 63.2%, or $79,000, from $125,000 for the three-month period
ended March 31, 1997, to $46,000. This decrease is primarily attributable to the
reduction of costs associated with the Company's bank borrowing facility with
NationsBank of Texas, N.A., originally entered into in April 1995 and expired on
October 30, 1997. Of the $46,000 of interest expense for the three-month period
ended March 31, 1998, $44,000 represents imputed interest associated with the
remaining notes payable to the former owners of Bit 3 which will be completely
paid down on July 1, 1998.

INCOME TAXES. For the three-month period ended March 31, 1998 and the
three-month period ended March 31, 1997 income taxes represented an effective
income tax rate of 40.5% and 40%, respectively. The increase in the effective
income tax rate is due to an increase in the federal tax rate associated with an
increase in the Company's estimated taxable income.

EARNINGS PER SHARE. For the three-month period ended March 31, 1998, net income
per common share was $0.46 compared to $0.35 for the three-month period ended
March 31, 1997. For the three-month period ended March 31, 1998, net income per
common share assuming dilution was $0.42 compared to $0.31 for the three-month
period ended March 31, 1997.


LIQUIDITY AND CAPITAL RESOURCES

The Company uses a combination of the sale of equity securities, internally
generated funds, and bank borrowings to finance its acquisitions, working
capital requirements, capital expenditures, and operations.

Cash totaled $22.0 million at March 31, 1998, an increase of $300,000 from June
30, 1997. This increase is a result of cash flow from operations of $7.7 million
and $1.6 million received from the exercise of stock options and warrants,
reduced by $5.6 million for the purchase of Micro Alliance, net of cash
received, $2.5 million for the purchase of property and equipment, and $1.0
million for the payments to the former owners of Bit 3, in conjunction with its
acquisition. The Company's growth during the nine-month period ended March 31,
1998 caused the Company to increase accounts receivable and inventories.
Liabilities were in line with the current level of business. The exercise of
stock options related to Company stock option plans reduced the Company's tax
liability.

                                    Page 14

<PAGE>



                   SBS TECHNOLOGIES INC. AND SUBSIDIARIES
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               MARCH 31, 1998
                                 (Continued)


On April 26, 1996 and November 15, 1996, the Company amended its bank financing
agreement with NationsBank of Texas, N.A. ("NationsBank"), originally entered
into in April 1995, to provide the Company with a $6.8 million term loan and a
$2.5 million revolving line of credit. The term loan was completely paid down in
November 1996 with a portion of the proceeds from the public stock offering. For
the entire nine-month period ended March 31, 1998, there were no borrowings
drawn on the revolving line of credit, which expired on October 30, 1997. Based
on the Company's current cash position, management believes there is no
immediate requirement to put in place additional bank borrowing facilities.

Management believes that financial resources, including its internally generated
funds, debt capacity, and the remaining net proceeds from the public offering,
will be sufficient to finance the Company's current operations and capital
expenditures, excluding acquisitions, for the next twelve months.

For the nine-month period ended March 31, 1998, there was no material impact
from inflation or changing prices on the Company's sales or income from
operations.


YEAR 2000 ISSUE

The Year 2000 ("Y2K") issue refers to the inability of a date-sensitive 
computer program to recognize a two-digit date field designated as "00" as 
the Year 2000. Mistaking "00" for 1900 could result in a system failure or 
miscalculations causing disruptions to operations, including manufacturing, a 
temporary inability to process transactions, send invoices, or engage in 
other normal business activities. This is a significant issue for most, if 
not all companies, with far reaching implications, some of which cannot be 
anticipated or predicted with any degree of certainty.

The Company has assembled an internal task force, chaired by the CEO, to 
review its products, business and engineering applications for Y2K 
compliance. Management understands the importance of compliance to the 
Company and its customers. The Company is committed to provide as much 
information as possible to ensure a smooth transition through the millennium. 
From a product standpoint, the task force is reviewing current and legacy 
products with respect to how the Company's boards and software use the year 
date field and how this is passed on to the Company's customers in order to 
determine if any compliance issues exist. In addition, products under 
development are also being reviewed to ensure compliance prior to release. 
From an operating standpoint, the task force is currently reviewing all 
internal business/engineering systems as well as conducting reviews of the 
Company's key suppliers to ensure compliance. All product reviews are 
scheduled to be completed by August 1998 and appropriate communication with 
the Company's customers will take place at that time. The review of key 
suppliers will also be completed by August 1998, at which point management 
will decide if any supplier actions are necessary. The Company has already 
been assured that its business information system is Y2K compliant. All other 
internal engineering development applications and systems will be modified, 
if necessary, by the end of calendar 1998 to ensure compliance. Final 
determination regarding the impact and materiality of Y2K issues will be 
determined upon completion of these reviews.

                                     Page 15

<PAGE>

                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities - None

Item 3.  Defaults by the Company upon its Senior Securities - None

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

Item 5.  Other Information

         Effective January 1, 1998, the Company appointed Norwest Bank
         Minnesota, N.A. ("Norwest"), Shareowner Services, 161 North Concord
         Exchange Street, South St. Paul, Minnesota 55075-1139, to serve as the
         Company's stock transfer agent. In conjunction with that appointment,
         the Company appointed Norwest as Successor Rights Agent. By the 
         signing of the Agreement to Serve as Successor Rights Agent, which was
         effective as of January 1, 1998, Norwest accepted this appointment and
         agreed to abide by the terms of the Shareholder Rights Agreement dated 
         September 15, 1997.

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

         (a)      Exhibits (exhibit reference numbers refer to Item 601 of 
                  Regulation S-K)

                  03.i    (1)       Articles of Incorporation, as amended.
                  03.ii   (1)       Bylaws, as amended.
                  10.ae             Settlement Agreement and Release between 
                                      SBS Technologies Inc. and Stephen D. 
                                      Cooper
                  27.               Financial Data Schedule
                  27.1              Financial Data Schedule, restated
                                      Fiscal Years End 1997 and 1996
                  27.2              Financial Data Schedule, restated
                                      Quarters 1 and 2 of Fiscal Year End 1998
                  27.3              Financial Data Schedule restated Quarters 
                                      1, 2, and 3 of Fiscal Year End 1997
                  99.1a             Additional Exhibit
                                      Legal Assignment: Agreement to Serve as 
                                      Rights Agent


         (b)      Reports on Form 8-K - None





         (1)      See Exhibit Index on Page 18



                                     Page 16

<PAGE>

                                   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.


                                     SBS TECHNOLOGIES, INC.



Date:  May 15, 1998                  /s/ Christopher J. Amenson
                                     President and Chief Executive Officer




Date:  May 15, 1998                  /s/ James E. Dixon, Jr.
                                     Vice President of Finance & Administration


                                     Page 17


<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                                  EXHIBIT INDEX

<TABLE>
<CAPTION>

EXHIBIT NUMBER       DESCRIPTION                                                   METHOD OF FILING
--------------       -----------                                                   ----------------
<S>                  <C>                                                           <C>
03.i  (1)            Articles of Incorporation, as amended.                             --

03.ii (2)            Bylaws, as amended.                                                --

10.ae                Settlement Agreement and Release between 
                       SBS Technologies Inc. and Stephen D. Cooper.                 Filed herewith electronically

27.                  Financial Data Schedule                                        Filed herewith electronically
                                                                          
27.1                 Financial Data Schedule, restated.                   
                       Fiscal Years End 1997 and 1996                               Filed herewith electronically
                                                                          
27.2                 Financial Data Schedule, restated.                             Filed herewith electronically
                       Quarters 1 and 2 of Fiscal Year End 1998           
                                                                          
27.3                 Financial Data Schedule, restated.                   
                       Quarters 1, 2, and 3 of Fiscal Year End 1997                  Filed herewith electronically
                                                                                   
99.1a                Agreement to Serve as Rights Agent 
                       On January 1, 1998, pursuant to Section 21 of the 
                       Shareholder Rights Agreement dated September 15, 
                       1997, SBS Technologies, Inc. appointed Norwest Bank 
                       Minnesota N.A. as Successor Rights Agent.                     Filed herewith electronically
</TABLE>


(1)  Incorporated by reference to Exhibit 3.i, of the Registrant's Quarterly
     Report on Form 10-Q for the quarter ended December 31, 1997.

(2)  Incorporated by reference to Exhibit 3.ii, of the Registrant's Quarterly
     Report on Form 10-Q for the quarter ended December 31, 1995.



                                     Page 18