<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 DECEMBER 31, 1999
         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 January 31, 2000, the Registrant had 6,282,627 shares of its
common stock outstanding.


<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                               ASSETS                                 December 31, 1999            June 30, 1999
                                                                      ---------------------------  ---------------------------
<S>                                                                      <C>                            <C>
Current assets:
     Cash and cash equivalents                                             $     6,681,294                     3,500,556
     Receivables, net (note 2)                                                  23,431,497                    21,442,108
     Inventories (note 3)                                                       19,207,312                    15,755,379
     Deferred income taxes                                                       2,234,485                     2,179,143
     Income tax receivable                                                         808,025                        31,728
     Prepaid expenses                                                              660,282                       632,798
     Other current assets                                                          220,901                       322,511
                                                                           ----------------             -----------------
          Total current assets                                                  53,243,796                    43,864,223
                                                                           ----------------             -----------------

Property and equipment, net                                                      7,455,689                     7,321,717

Intangible assets, net                                                          33,221,203                    36,228,105

Deferred income taxes                                                            4,489,205                     4,488,059

Other assets                                                                       103,573                       105,751
                                                                           ----------------             -----------------

          Total assets                                                     $     98,513,466                    92,007,855
                                                                           ================             =================

                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Notes payable                                                         $             -                     3,900,000
     Notes payable to related parties                                                    -                     1,391,216
     Accounts payable                                                            5,241,581                     3,319,664
     Accrued representative commissions                                            660,855                       529,765
     Accrued salaries                                                            1,936,331                     2,632,993
     Accrued compensated absences                                                1,103,661                     1,201,653
     Other current liabilities                                                   1,680,890                     1,804,591
                                                                           ----------------             -----------------
          Total current liabilities                                             10,623,318                    14,779,882
                                                                           ----------------             -----------------

          Total liabilities                                                     10,623,318                    14,779,882
                                                                           ----------------             -----------------

Stockholders' equity:
     Common stock, no par value; 100,000,000 shares authorized, 6,275,227
        issued and outstanding at December 31, 1999
        5,837,483 issued and outstanding at June 30, 1999                       54,838,979                    50,554,450
     Common stock warrants                                                               -                        38,425
     Accumulated other comprehensive loss                                       (2,922,687)                   (2,059,126)
     Retained earnings                                                          35,973,856                    28,694,224
                                                                           ----------------             -----------------
          Total stockholders' equity                                            87,890,148                    77,227,973
                                                                           ----------------             -----------------

          Total liabilities and stockholders' equity                       $     98,513,466                    92,007,855
                                                                           ================             =================
</TABLE>


      See accompanying notes to condensed consolidated financial statements
                                     Page 2

<PAGE>


                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                      Six Months Ended December 31               Three Months Ended December 31
                                                  ----------------------------------------    -------------------------------------
                                                          1999               1998                    1999               1998
                                                     ---------------    ----------------        ----------------   ----------------
<S>                                                  <C>                <C>                     <C>                <C>
Sales                                                $   60,452,721          51,494,920              32,429,599         26,942,047

Cost of sales                                            27,750,177          21,176,572              15,297,550         11,529,132
                                                     ---------------    ----------------        ----------------   ----------------
         Gross Profit                                    32,702,544          30,318,348              17,132,049         15,412,915

Selling, general and administrative expense              12,262,174          11,813,429               6,350,859          6,028,262

Research and development expense                          7,538,146           6,855,574               3,869,902          3,698,989

Acquired in-process research and
     development charge                                           -             527,514                       -                  -

Amortization of intangible assets                         2,221,756           1,702,238               1,108,730            882,192
                                                     ---------------    ----------------        ----------------   ----------------
         Operating income                                10,680,468           9,419,593               5,802,558          4,803,472
                                                     ---------------    ----------------        ----------------   ----------------

Interest income, net                                        174,787             153,816                  87,925             40,944

Foreign exchange gains (losses)                             (29,982)             57,266                 (42,122)            57,266
                                                     ---------------    ----------------        ----------------   ----------------
                                                            144,805             211,082                  45,803             98,210
                                                     ---------------    ----------------        ----------------   ----------------

Income before income taxes and minority interest         10,825,273           9,630,675               5,848,361          4,901,682

Income taxes                                              3,750,293           3,659,866               1,907,273          1,843,737
                                                     ---------------    ----------------        ----------------   ----------------

Income before minority interest                           7,074,980           5,970,809               3,941,088          3,057,945

Minority interest                                                 -             444,383                       -            208,702
                                                     ---------------    ----------------        ----------------   ----------------

Net income                                           $    7,074,980           5,526,426               3,941,088          2,849,243
                                                     ===============    ================        ================   ================


Net income per common share                          $        1.18                0.95                    0.64               0.49
                                                              =====               =====                   =====              ====

Net income per common share -
     assuming dilution                               $        1.09                0.90                    0.59               0.47
                                                              =====               =====                   =====              ====
</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                                                Accumulated       Total
                                                 stock                     Common                        Other          stock-
                                               ------------------------     stock        Retained     Comprehensive     holders'
                                                Shares       Amount       warrants       earnings         Loss          equity
                                               ----------- ------------   -----------   ------------- --------------   ------------
<S>                                            <C>         <C>            <C>           <C>            <C>            <C>
BALANCE AT JUNE 30, 1999                        5,837,483  $ 50,554,450    $   38,425   $ 28,694,224   $ (2,059,126)  $ 77,227,973
Exercise of stock options and warrants            262,881      3,050,091      (38,425)            -              -       3,011,666
Stock-based compensation                               -          14,062           -              -              -          14,062
Acquisition of SciTech, Inc.                      174,863            100           -         642,692             -         642,792
Dividends paid to former shareholders
      of SciTech, Inc.                                 -              -            -        (438,040)            -        (438,040)
Income tax benefit from stock
      options exercised                                -       1,220,276           -              -              -       1,220,276
Net income                                             -              -            -       7,074,980             -       7,074,980
Other comprehensive income:
      Foreign currency translation adjustment          -              -            -              -        (863,561)      (863,561)
                                               -----------  -------------   ----------   ------------   ------------   ------------
BALANCE AT DECEMBER 31, 1999                    6,275,227  $  54,838,979   $       -    $ 35,973,856   $ (2,922,687)  $ 87,890,148
                                               ===========  =============   ==========   ============   ============   ============
</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>
                                                                                              Six Months Ended December 31,
                                                                                           -------------------------------------
                                                                                                1999                 1998
                                                                                                ----                 ----
<S>                                                                                        <C>                       <C>
Cash flows from operating activities:

     Net income                                                                            $      7,074,980            5,526,426
                                                                                           ----------------     ----------------

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

             Depreciation                                                                          951,614              813,772
             Amortization of intangible assets                                                   2,221,756            1,702,238
             Bad debt expense                                                                      (17,413)             100,509
             Deferred income taxes                                                                 (71,634)            (261,818)
             Loss on disposition of assets                                                               -               29,469
             Foreign exchange (gains) losses                                                        29,982              (57,266)
             Stock-based compensation                                                               14,062                    -
             Acquired in-process research and development charge                                         -              527,514
             Minority interest                                                                           -              444,383
             Changes in assets and liabilities, net of effects of acquisitions:
                 Receivables                                                                    (1,726,900)          (2,131,023)
                 Inventories                                                                    (3,071,145)          (2,654,339)
                 Prepaids and other assets                                                          56,738              120,003
                 Accounts payable                                                                1,835,433           (1,025,731)
                 Accrued representative commissions                                                131,090              200,534
                 Accrued salaries                                                                 (702,595)          (2,213,024)
                 Accrued compensated absences                                                      (93,272)             129,206
                 Income taxes                                                                     (772,087)          (1,126,568)
                 Other current liabilities                                                         (66,045)              41,411
                                                                                           ----------------     ----------------
                     Net adjustments                                                            (1,280,416)          (5,360,730)
                                                                                           ----------------     ----------------

                     Net cash provided by operating activities                                   5,794,564              165,696
                                                                                           ----------------     ----------------

Cash flows from investing activities:
     Cash received from sale of assets                                                                   -                  201
     Business acquisitions (note 5)                                                                 64,162          (14,353,448)
     Acquisition of property and equipment                                                      (1,085,635)          (1,373,109)
                                                                                           ----------------     ----------------

                     Net cash used by investing activities                                      (1,021,473)         (15,726,356)
                                                                                           ----------------     ----------------


Cash flows from financing activities:
     Payments on long-term borrowings and capital leases                                                 -           (3,000,000)
     Payments on notes payable to related parties                                               (1,391,216)          (1,607,467)
     Payments on notes payable                                                                  (3,975,060)                   -
     Dividends paid to former shareholders of SciTech, Inc.                                       (438,040)                   -
     Proceeds from exercise of stock options and warrants                                        3,011,666            1,111,899
     Repurchase of common stock, net                                                                     -             (181,928)
     Income tax benefit of stock options exercised                                               1,220,276              396,000
                                                                                           ----------------     ----------------

                     Net cash used by financing activities                                      (1,572,374)          (3,281,496)
                                                                                           ----------------     ----------------
</TABLE>
                                                            (Continued)
                                                               Page 5

<PAGE>

                                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                               CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                                                               Six Months Ended December 31
                                                                                           ---------------------------------------
                                                                                                1999                 1998
                                                                                                ----                 ----
<S>                                                                                             <C>                  <C>

Effect of exchange rate changes on cash                                                            (19,979)              99,691
                                                                                           ----------------     ----------------

Net change in cash and cash equivalents                                                          3,180,738          (18,742,465)

Cash and cash equivalents at beginning of period                                                 3,500,556           22,874,754
                                                                                           ----------------     ----------------

Cash and cash equivalents at end of period                                                 $     6,681,294            4,132,289
                                                                                           ================     ================


Supplemental disclosure of cash flow information:
     Interest paid                                                                         $        86,260               12,327
     Income taxes paid                                                                           3,558,088            2,512,390

     Noncash financing and investing activities:

     Accrued acquisition costs                                                                           -              284,344
     Debt issued for exercise of option to purchase minority interest                                    -           10,722,955
     Stock issued for acquisition                                                                        -              713,878

     Summary of assets acquired and liabilities assumed through acquisition:

             Cash and cash equivalents                                                     $        64,162              531,475
             Receivables                                                                           382,065            5,314,703
             Inventories                                                                           480,191            3,378,652
             Deferred income taxes                                                                       -             (105,638)
             Prepaid expenses and other current assets                                                   -              102,512
             Goodwill                                                                                    -           13,120,525
             Covenant not to compete                                                                     -              200,000
             Property and equipment                                                                 80,500              556,258
             Accumulated depreciation                                                              (66,481)                   -
             Note payable - related party                                                                -           (2,865,603)
             Note payable                                                                          (75,060)                   -
             Accounts payable                                                                     (201,061)            (851,903)
             Accrued salaries                                                                      (21,524)          (1,753,948)
             Accrued compensated absences                                                                -              (82,225)
             Income taxes                                                                                -           (1,888,522)
             Other current liabilities                                                                   -             (771,363)
             Common stock                                                                             (100)                   -
             Retained earnings                                                                    (642,692)                   -
                                                                                           ================     ================
</TABLE>


      See accompanying notes to condensed consolidated financial statements
                                     Page 6


<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 1999
                                   (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 23, 1999 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 financial position, results of
       operations, and cash flows for such interim periods. Results for such
       interim periods are not necessarily indicative of results for a full
       year.

2)     RECEIVABLES, NET

       Receivables, net consist of the following:
<TABLE>
<CAPTION>
                                                                      December 31, 1999        June 30, 1999
                                                                      -----------------        -------------
<S>                                                                      <C>                   <C>
                  Accounts receivable                                    $ 24,140,081             22,205,155
                          Less: allowance for doubtful accounts              (708,584)              (763,047)
                                                                         ------------          -------------
                                                                         $ 23,431,497             21,442,108
                                                                         ============          =============
</TABLE>

3)     INVENTORIES

       Inventories consist of the following:
<TABLE>
<CAPTION>
                                                                        December 31, 1999      June 30, 1999
                                                                        -----------------      -------------
<S>                                                                      <C>                   <C>
                  Raw materials                                          $ 11,203,179              7,598,642
                  Work in process                                           3,771,272              4,150,779
                  Finished goods                                            4,232,861              4,005,958
                                                                          -----------             ----------
                                                                         $ 19,207,312             15,755,379
                                                                         ============          =============
</TABLE>

4)     EARNINGS PER SHARE

       Net income per common share is based on weighted average shares
       outstanding. Net income per common share - assuming dilution includes the
       dilutive effects of potential common shares outstanding during the
       period.

       A reconciliation of the numerator and denominator of the per share and
       per share - assuming dilution calculation follows:
<TABLE>
<CAPTION>
                                                                      Six Months Ended December 31
                                               ----------------------------------------------------------------------------
                                                                 1999                                   1998
                                               ----------------------------------------------------------------------------
                                                   Income         Shares     Per-Share   Income         Shares    Per-Share
                                                 (Numerator)   (Denominator)  Amount   (Numerator)   (Denominator) Amount
                                                 ---------- -- ------------ ---------- ---------- -- ----------- ----------
<S>                                              <C>              <C>          <C>     <C>            <C>           <C>
       NET INCOME PER COMMON SHARE
       Net Income                                $7,074,980       5,989,237    $1.18   $5,526,426      5,821,739    $0.95
                                                                               =====                                =====
       EFFECT OF DILUTIVE SECURITIES
       Dilutive options and warrants                  -             528,119                -             356,276
                                                 ----------    ------------            ----------    -----------
       NET INCOME PER COMMON SHARE
       - ASSUMING DILUTION
       Net Income                                $7,074,980       6,517,356    $1.09   $5,526,426      6,178,015    $0.90
                                                                               =====                                =====
</TABLE>
                                     Page 7
<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          DECEMBER 31, 1999 (Continued)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                     Three Months Ended December 31
                                               ----------------------------------------------------------------------------
                                                                  1999                                  1998
                                               ----------------------------------------------------------------------------
                                                   Income         Shares     Per-Share   Income         Shares    Per-Share
                                                 (Numerator)   (Denominator)  Amount   (Numerator)   (Denominator) Amount
                                                 ------------  ------------ ---------- ------------  ------------- --------
<S>                                              <C>              <C>          <C>     <C>             <C>          <C>
       NET INCOME PER COMMON SHARE
       Net Income                                $3,941,088       6,138,571    $0.64   $2,849,243      5,832,058    $0.49
                                                                               =====                                =====
       EFFECT OF DILUTIVE SECURITIES
       Dilutive options and warrants                 -              591,593                -             279,284
                                                 ----------    ------------            ----------    -----------
       NET INCOME PER COMMON SHARE
       - ASSUMING DILUTION
       Net Income                                $3,941,088       6,730,164    $0.59   $2,849,243      6,111,342    $0.47
                                                                               =====                                =====
</TABLE>

       For the six and three months ended December 31, 1999 and 1998, options to
       purchase 527,918 and 891,181 shares and 269,581 and 1,046,703 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 ACQUISITION

       On December 20, 1999, the Company acquired SciTech, Inc., a Madison,
       Wisconsin based designer and manufacturer of communications network I/O
       products based on PMC and PCI form factors. The acquisition qualified as
       a pooling of interests for accounting purposes and constituted a tax free
       reorganization for federal income tax purposes. Under the terms of the
       agreement, SciTech Inc.'s shareholders exchanged all outstanding shares
       of SciTech, Inc. stock for 174,863 shares of the Company's stock.
       SciTech, Inc. was subsequently merged into SBS Technologies, Inc.,
       Communications Products (formerly SBS Technologies, Inc., Embedded PPC
       Products).

       SciTech, Inc.'s historical results do not have a material effect on
       combined financial position or results of operations, and as such, the
       financial position and results of operations of the Company and SciTech,
       Inc. are combined from October 1, 1999.

6)     COMPREHENSIVE INCOME

       Comprehensive income for the six and three months ended December 31, 1999
       was $6.2 million and $3.0 million, respectively. Comprehensive income for
       the six and three months ended December 31, 1998 was $5.8 million and
       $2.7 million, respectively. The difference between comprehensive income
       and net income was related to foreign currency translation adjustments.

7)     SEGMENT FINANCIAL DATA

       The Company operates internationally through three operating segments:
       the Computer Group, the Aerospace Group, and the European Group. These
       segments are based on the markets that are served, the products that are
       provided to those markets, the geographic area from which sales are
       generated, and are managed by three managers who report directly to the
       chief operating decision-maker. In addition, each segment utilizes a
       common sales group.

       The Company measures its segments' results of operations based on income
       before income taxes and minority interest and prior to allocation of
       corporate overhead expenses, substantially all amortization of goodwill
       and intangibles, corporate interest income and expense, and acquired
       in-process research and development charges associated with purchase
       business combinations. The accounting policies used to measure segment
       results of operations are the same as those described in Note 1.

                                     Page 8
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          DECEMBER 31, 1999 (Continued)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                        Corporate
                                            Computer         Aerospace       European     and un-
                                             Group            Group           Group     allocated (1)     Other (2)       Total
                                   ------------------------------------------------------------------------------------------------
<S>                                  <C>   <C>               <C>             <C>           <C>             <C>          <C>
SIX MONTHS ENDED DECEMBER 31

Gross Sales                         1999   $ 39,833,183      15,022,919      7,309,456            --            --      62,165,558

Intersegment sales                             (225,687)       (169,147)    (1,318,003)           --            --      (1,712,837)
                                           ------------    ------------   ------------    ------------   -----------  ------------

    Sales to external customers              39,607,496      14,853,772      5,991,453            --            --      60,452,721

Gross Sales                         1998   $ 29,587,876      16,690,344      6,771,010            --            --      53,049,230
Intersegment sales                             (200,199)        (73,750)    (1,280,361)           --            --      (1,554,310)
                                           ------------    ------------   ------------    ------------   -----------  ------------

    Sales to external customers              29,387,677      16,616,594      5,490,649            --            --      51,494,920

Segment profit (Income
before                              1999      8,562,409       4,377,259      1,880,267      (3,994,662)         --      10,825,273
    taxes and minority interest)    1998      5,694,290       6,125,858      1,907,241      (3,569,200)     (527,514)    9,630,675


THREE MONTHS ENDED DECEMBER 31


Gross Sales                         1999     22,147,079       6,777,898      4,413,903            --            --      33,338,880
Intersegment sales                             (134,813)        (57,693)      (716,775)           --            --        (909,281)
                                           ------------    ------------   ------------    ------------   -----------  ------------
    Sales to external customers              22,012,266       6,720,205      3,697,128            --            --      32,429,599


Gross Sales                         1998     16,661,500       7,528,336      3,956,075            --            --      28,145,911
Intersegment sales                             (200,199)        (73,750)      (929,915)           --            --      (1,203,864)
                                           ------------    ------------   ------------    ------------   -----------  ------------
    Sales to external customers              16,461,301       7,454,586      3,026,160            --            --      26,942,047

Segment profit (Income
before                              1999      5,010,895       1,574,178      1,390,933      (2,127,645)         --       5,848,361
    taxes and minority
    interest)                       1998      3,343,109       2,361,743      1,045,715      (1,848,885)         --       4,901,682

DECEMBER 31

Total assets                        1999     31,871,880      10,707,633      8,083,726      47,850,227          --      98,513,466
                                    1998     22,363,770      12,133,197      8,333,620      50,850,058          --      93,680,645
                                   ------------------------------------------------------------------------------------------------
</TABLE>


(1)  Corporate and unallocated includes corporate overhead, substantially all
     interest expense, interest income, and amortization expense associated with
     goodwill and intangibles not considered in assessing segment profit.
     Corporate assets primarily include cash and cash equivalents, deferred and
     current income tax assets and intangible assets.

(2)  Acquired in-process research and development associated with purchase
     business combinations that management does not consider in assessing
     segment profits.


                                     Page 9

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                DECEMBER 31, 1999

THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH THE
COMPANY'S FINANCIAL STATEMENTS AND NOTES THERETO. INFORMATION DISCUSSED
HEREIN, OTHER THAN STATEMENTS OF HISTORICAL FACT, THAT ADDRESSES ACTIVITIES,
EVENTS OR DEVELOPMENTS THAT THE COMPANY OR MANAGEMENT INTENDS, EXPECTS,
PROJECTS, BELIEVES OR ANTICIPATES WILL OR MAY OCCUR IN THE FUTURE ARE
FORWARD-LOOKING STATEMENTS. THESE STATEMENTS ARE BASED UPON CERTAIN
ASSUMPTIONS AND ASSESSMENTS MADE BY MANAGEMENT OF THE COMPANY IN LIGHT OF ITS
EXPERIENCE AND ITS PERCEPTION OF HISTORICAL TRENDS, CURRENT CONDITIONS,
EXPECTED FUTURE DEVELOPMENTS AND OTHER FACTORS IT BELIEVES TO BE APPROPRIATE.
THE FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-Q ARE ALSO SUBJECT TO
A NUMBER OF RISKS AND UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO ECONOMIC,
COMPETITIVE, GOVERNMENTAL AND TECHNOLOGICAL FACTORS AFFECTING THE COMPANY'S
OPERATIONS, MARKETS, PRODUCTS, SERVICES, PRICES, AND OTHER RISK FACTORS
LISTED IN THE COMPANY'S FORM 10-K FOR THE YEAR ENDED JUNE 30, 1999. THESE
FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND
ACTUAL RESULTS; DEVELOPMENTS AND BUSINESS DECISIONS MAY DIFFER FROM THOSE
EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS.

RESULTS OF OPERATIONS

SIX MONTHS ENDED DECEMBER 31, 1999 COMPARED TO SIX MONTHS ENDED
DECEMBER 31, 1998

SALES. For the six-month period ended December 31, 1999, sales increased
17.4%, or $9.0 million, from $51.5 million for the six-month period ended
December 31, 1998, to $60.5 million. Of this 17.4% increase, sales
contributed by SciTech, Inc. comprised 1.7%, and 15.7% was attributable to
the Company's other product lines. Unit shipments increased within the
Computer Group segment, primarily due to an increase in sales of the Group's
computer processor products and industrial computer systems and enclosures
products, partially offset by pricing pressure, experienced primarily by the
Group's computer processor and industrial computer systems and enclosures
product lines. Unit shipments declined within the Aerospace Group compared to
the six-month period ended December 31, 1998, primarily due to a decrease in
sales of the Company's telemetry products, which have been impacted in recent
months by a decline in large project bookings, and declines in the commercial
satellite and military markets which Telemetry serves. European Group volume
increased compared to the six-month period ended December 31, 1998, but sales
were negatively affected by changes in exchange rates.

GROSS PROFIT. For the six-month period ended December 31, 1999, gross profit
increased 7.9%, or $2.4 million from $30.3 million for the six-month period
ended December 31, 1998, to $32.7 million. As expected, for the six-month
period ended December 31, 1999, gross profit as a percentage of sales
decreased to 54.1% from 58.9% for the six-month period ended December 31,
1998, primarily due to a higher percentage of sales of the Company's Computer
Group products, which generally yield lower margins than the Company's other
products, and lower margins experienced by the Aerospace Group and European
Group. Gross margins as a percentage of sales are expected to continue to
decrease slightly, as the Company's lower margin production and systems
business continues to be a larger portion of total sales mix.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. For the six-month period ended
December 31, 1999, selling, general and administrative (SG&A) expense
increased 3.8%, or $449,000, from $11.8 million for the six-month period
ended December 31, 1998, to $12.3 million. This increase was primarily due to
the acquisition of SciTech, Inc., and to the formation of SBS Technologies
Inc. Europe GmbH, which markets and distributes Computer Group products. For
the six-month period ended December 31, 1999, SG&A expense as a percentage of
sales decreased to 20.3% from 22.9% in the six-month period ended December
31, 1998, as the increase in sales volume more than offset the increase in
expense.

RESEARCH AND DEVELOPMENT EXPENSE. For the six-month period ended December 31,
1999, research and development expense (R&D) increased 10.0%, or $683,000,
from $6.9 million for the six-month period ended December 31, 1998, to $7.5
million. This increase resulted from the acquisition of SciTech, Inc., and
increased investment in product development in the Company's other product
areas. For the six-month period ended December 31, 1999, R&D expense as a
percentage of sales decreased to 12.5% from 13.3% in the six-month period
ended December 31, 1998, as the increase in sales volume more than offset the
increase in expense.

ACQUIRED IN-PROCESS RESEARCH AND DEVELOPMENT CHARGE. For the six-month period
ended December 31, 1998, in connection with the acquisition of the majority
interest in OR Industrial Computers GmbH ("OR") completed on July 1, 1998,
the Company recorded a $0.5 million earnings charge based on an assessment by
the Company, in conjunction with an independent valuation


                                     Page 10
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                DECEMBER 31, 1999
                                   (Continued)


firm, of purchased technology of OR. The assessment determined that $0.5
million of OR's purchase price represented technology that did not meet the
accounting definitions of completed technology, and thus should be charged to
earnings under generally accepted accounting principles. This assessment
analyzed certain VME, CompactPCI, and PC Compact products that were under
development at the time of acquisition. These programs were in various stages
of completion ranging from initial development to 90% of completion, with
estimated completion dates ranging from September 1998 through April 1999.
The fair value of these development programs was determined in accordance
with views expressed by the staff of the Securities and Exchange Commission.

AMORTIZATION OF INTANGIBLE ASSETS. For the six-month period ended December
31, 1999, amortization of intangible assets increased 30.5%, or $520,000,
from $1.7 million for the six-month period ended December 31, 1998, to $2.2
million. This increase was the result of the amortization of goodwill
associated with the acquisition of SBS Technologies, Inc., Communications
Products (formerly SBS Technologies, Inc., Embedded PPC Products) and the
acquisition of the minority interest in OR and ORTEC Electronic Assembly GmbH
("ORTEC") in December of 1998.

INTEREST INCOME, NET OF INTEREST EXPENSE. For the six-month period ended
December 31, 1999, interest income, net of interest expense increased 13.6%,
or $21,000, from $154,000 for the six-month period ended December 31, 1998,
to $175,000. This increase was primarily due to an increase in interest
income associated with amendments of prior years' tax returns for research
and experimental tax credits, offset by an increase in interest expense
associated with borrowings under the Company's line of credit.

FOREIGN EXCHANGE GAINS (LOSSES). For the six-month period ended December 31,
1999, the $30,000 foreign exchange loss was primarily attributable to the
change in exchange rates in the quarter ended December 31, 1999 relating to
interest payable on debt between the Company and its foreign subsidiary. For
the six-month period ended December 31, 1998, the $57,000 foreign exchange
gain was primarily attributable to the change in exchange rates between
December 9, 1998 and December 31, 1998, relating to the note payable entered
into on December 9, 1998 for DM 17.2 million paid on February 28, 1999 for
the remaining interest in OR and ORTEC.

INCOME TAXES. For the six-month period ended December 31, 1999 and the
six-month period ended December 31, 1998, income taxes represented an
effective income tax rate of 34.6% and 38.0%, respectively. The decrease in
the effective income tax rate was due to U.S. tax planning strategies
implemented by the Company, including minimization of the Company's tax
liability related to debt between the Company and its foreign subsidiaries
and increased use of the Company's foreign sales corporation, as well as an
expected increase in the research and experimental tax credit for fiscal 2000.

EARNINGS PER SHARE. For the six-month period ended December 31, 1999, net
income per common share was $1.18 compared to $0.95 for the six-month period
ended December 31, 1998. For the six-month period ended December 31, 1999,
net income per common share assuming dilution was $1.09 compared to $0.90 for
the six-month period ended December 31, 1998.

REVIEW OF BUSINESS SEGMENTS

The Company is managed and operates through three operating segments: the
Computer Group, the Aerospace Group and the European Group. The following is
a discussion of sales to external customers and segment profit for each
reportable segment. The Company does not allocate to these segments costs
associated with its corporate headquarters, substantially all of the
amortization expense associated with acquisitions, substantially all interest
income earned on cash balances, interest expense associated with Company
borrowing facilities, and acquired in-process research and development
charges. This measure of segment profit described above is referred to herein
as "Segment Profit."


                                     Page 11

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                DECEMBER 31, 1999
                                   (Continued)
COMPUTER GROUP

For the six-month period ended December 31, 1999, Computer Group sales to
external customers increased 34.8%, or $10.2 million, from $29.4 million for
the six-month period ended December 31, 1998 to $39.6 million. Of this 34.8%
increase, sales contributed from the acquisition of SciTech, Inc. accounted
for 3.0% of the increase. The balance of the increase, 31.8%, was
attributable to organic growth primarily resulting from an increase in sales
of the Group's computer processor products and industrial computer systems
and enclosures products, partially offset by pricing pressure, experienced
primarily by the Group's computer processor and industrial computer systems
and enclosures product lines.

For the six-month period ended December 31, 1999, Computer Group segment
profit increased 50.4%, or $2.9 million, from $5.7 million for the six-month
period ended December 31, 1998, to $8.6 million, primarily due to the net
margin contribution from the increase in sales from the Group's computer
processor products and industrial computer systems and enclosures products.
Segment profit as a percentage of sales increased from 19.4% for the
six-month period ended December 31, 1998 to 21.6% for the same period in
1999. This increase was primarily due to a decline in SG&A and R&D costs as a
percentage of sales, as the Group's overhead infrastructure was adequate to
handle the increase in sales, partially offset by a shift in sales mix to
lower margin products.

AEROSPACE GROUP

For the six-month period ended December 31, 1999, Aerospace Group sales to
external customers decreased 10.6%, or $1.7 million, from $16.6 million for
the six-month period ended December 31, 1998 to $14.9 million, primarily due
to a decrease in sales of the Group's telemetry products, which have been
impacted in recent months by a decline in large project bookings, and by
declines in the commercial satellite and military markets which Telemetry
serves.

For the six-month period ended December 31, 1999, Aerospace Group segment
profit decreased 28.5%, or $1.7 million, from $6.1 million for the six-month
period ended December 31, 1998 to $4.4 million. This decrease was primarily
due to lower sales of the Group's telemetry products, and a shift in sales
mix to lower margin products across the Group's product lines. For the same
reasons, segment profit as a percentage of sales decreased from 36.9% for the
six-month period ended December 31, 1998 to 29.5% for the same period in 1999.

EUROPEAN GROUP

For the six-month period ended December 31, 1999, European Group sales to
external customers increased 9.1%, or $501,000, from $5.5 million for the
six-month period ended December 31, 1998 to $6.0 million. This increase was
primarily due to increases in European orders outside of Germany, partially
offset by the negative impact of changes in exchange rates on sales.

For the six-month period ended December 31, 1999, European Group segment
profit decreased 1.4%, or $27,000, compared to the six-month period ended
December 31, 1998. The decrease was primarily due to a shift in sales mix to
lower gross margin products in the quarter ended September 30, 1999 and
increases in SG&A costs associated with the growth of the segment.

THREE MONTHS ENDED DECEMBER 31, 1999 COMPARED TO THREE MONTHS ENDED
DECEMBER 31, 1998

SALES. For the three-month period ended December 31, 1999, sales increased
20.4%, or $5.5 million, from $26.9 million for the three-month period ended
December 31, 1998, to $32.4 million. Of this 20.4% increase, sales
contributed by SciTech, Inc. comprised 3.3%, and 17.1% was attributable to
the Company's other product lines. Unit shipments increased within the
Computer Group segment and European Group segment. This increase in volume
was partially offset by pricing pressure, experienced primarily by the
Computer Group's computer processor and industrial computer systems and
enclosures product lines. Unit shipments declined within the Aerospace Group
compared to the three-month period ended December 31, 1998, primarily due to
a decrease in sales of the Company's telemetry products, which have been
impacted in recent months by declines in the commercial satellite and
military markets which Telemetry serves.

                                     Page 12
<PAGE>

                    SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               DECEMBER 31, 1999
                                  (Continued)

GROSS PROFIT. For the three-month period ended December 31, 1999, gross
profit increased 11.2%, or $1.7 million from $15.4 million for the
three-month period ended December 31, 1998, to $17.1 million. As expected,
for the three-month period ended December 31, 1999, gross profit as a
percentage of sales decreased to 52.8% from 57.2% for the three-month period
ended December 31, 1998, primarily due to a higher percentage of sales of the
Company's Computer Group products, which generally yield lower margins than
the Company's other products, and lower margins experienced by the Aerospace
Group. Gross margins as a percentage of sales are expected to continue to
decrease slightly, as the Company's lower margin production and systems
business continues to be a larger portion of total sales mix.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. For the three-month period ended
December 31, 1999, selling, general and administrative (SG&A) expense
increased 5.4%, or $323,000, from $6.0 million for the three-month period
ended December 31, 1998, to $6.4 million. This increase was primarily due to
the acquisition of SciTech, Inc., and to the formation of SBS Technologies
Inc. Europe GmbH, which markets and distributes Computer Group products. For
the three-month period ended December 31, 1999, SG&A expense as a percentage
of sales decreased to 19.6% from 22.4% in the three-month period ended
December 31, 1998, as the increase in sales volume more than offset the
increase in expense.

RESEARCH AND DEVELOPMENT EXPENSE. For the three-month period ended December
31, 1999, research and development expense (R&D) increased 4.6%, or $171,000,
from $3.7 million for the three-month period ended December 31, 1998, to $3.9
million. This increase resulted from the added expenditures due to the
acquisition of SciTech Inc., and increased investment in product development
in the Company's other product areas. For the three-month period ended
December 31, 1999, R&D expense as a percentage of sales decreased to 11.9%
from 13.7% in the three-month period ended December 31, 1998, as the increase
in sales volume more than offset the increase in expense.

AMORTIZATION OF INTANGIBLE ASSETS. For the three-month period ended December
31, 1999, amortization of intangible assets increased 25.7%, or $227,000,
from $882,000 for the three-month period ended December 31, 1998, to $1.1
million. This increase was the result of the acquisition of the minority
interest in OR and ORTEC in December of 1998.

INTEREST INCOME, NET OF INTEREST EXPENSE. For the three-month period ended
December 31, 1999, interest income, net of interest expense increased 114.7%,
or $47,000, from $41,000 for the three-month period ended December 31, 1998,
to $88,000. This increase was primarily due to interest income associated
with amendments to prior years' tax returns for research and experimental tax
credits.

FOREIGN EXCHANGE GAINS (LOSSES). For the three-month period ended December
31, 1999, the $42,000 foreign exchange loss was primarily attributable to the
change in exchange rates in the quarter ended December 31, 1999 relating to
interest payable on debt between the Company and its foreign subsidiary. For
the three-month period ended December 31, 1998, the $57,000 foreign exchange
gain was primarily attributable to the change in exchange rates between
December 9, 1998 and December 31, 1998, relating to the note payable entered
into on December 9, 1998 for DM 17.2 paid on February 28, 1999 for the
remaining interest in OR and ORTEC.

INCOME TAXES. For the three-month period ended December 31, 1999 and the
three-month period ended December 31, 1998, income taxes represented an
effective income tax rate of 32.6% and 37.6%, respectively. The decrease in
the effective income tax rate was due to U.S. tax planning strategies
implemented by the Company, including minimization of the Company's tax
liability related to debt between the Company and its foreign subsidiaries
and increased use of the Company's foreign sales corporation, as well as the
reinstatement through legislation of the research and experimental tax credit
in the quarter ended December 31, 1999, which resulted in a year-to-date tax
rate adjustment in the quarter ended December 31, 1999.

EARNINGS PER SHARE. For the three-month period ended December 31, 1999, net
income per common share was $0.64 compared to $0.49 for the three-month
period ended December 31, 1998. For the three-month period ended December 31,
1999, net income per common share assuming dilution was $0.59 compared to
$0.47 for the three-month period ended December 31, 1998. Included in net
income per common share and net income per common share assuming dilution for
the three-month period ended December 31, 1999 is $0.04 related to the
year-to-date tax rate adjustment resulting from the reinstatement through
legislation of the research and experimental tax credit.


                                    Page 13
<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                DECEMBER 31, 1999
                                   (Continued)
REVIEW OF BUSINESS SEGMENTS

The Company is managed and operates through three operating segments: the
Computer Group, the Aerospace Group and the European Group. The following is
a discussion of sales to external customers and segment profit for each
reportable segment. The Company does not allocate to these segments costs
associated with its corporate headquarters, substantially all of the
amortization expense associated with acquisitions, substantially all interest
income earned on cash balances, interest expense associated with Company
borrowing facilities, and acquired in-process research and development
charges. This measure of segment profit described above is referred to herein
as "Segment Profit."

COMPUTER GROUP

For the three-month period ended December 31, 1999, Computer Group sales to
external customers increased 33.7%, or $5.5 million, from $16.5 million for
the three-month period ended December 31, 1998 to $22.0 million. Of this
33.7% increase, sales contributed by the acquisition of SciTech, Inc.
accounted for 5.4% of the increase. The balance of the increase, 28.3%, was
attributable to organic growth primarily resulting from an increase in sales
of the Group's computer processor products and industrial computer systems
and enclosure products, partially offset by pricing pressure, experienced
primarily by the Group's computer processor products and industrial computer
systems and enclosures products.

For the three-month period ended December 31, 1999, Computer Group segment
profit increased 49.9%, or $1.7 million, from $3.3 million for the
three-month period ended December 31, 1998, to $5.0 million, primarily due to
the net margin contribution from the increase in sales from the Group's
computer processor products and industrial computer systems and enclosure
products and the acquisition of SciTech, Inc. Segment profit as a percentage
of sales increased from 20.3% for the three-month period ended December 31,
1998 to 22.7% for the same period in 1999. This increase was primarily due to
a decline in SG&A and R&D costs as a percentage of sales, as the Group's
overhead infrastructure was adequate to handle the increase in sales,
partially offset by a shift in sales mix to lower margin products.

AEROSPACE GROUP

For the three-month period ended December 31, 1999, Aerospace Group sales to
external customers decreased 9.9%, or $734,000, from $7.5 million for the
three-month period ended December 31, 1998 to $6.7 million, primarily the
result of a decrease in sales of the Group's telemetry products, which have
been impacted by declines in the commercial satellite and military markets
which Telemetry serves.

For the three-month period ended December 31, 1999, Aerospace Group segment
profit decreased 33.3%, or $788,000, from $2.4 million for the three-month
period ended December 31, 1998 to $1.6 million. This decrease was primarily
due to lower sales of the Group's telemetry products, and shift in sales mix
to lower margin products across the Group's product lines. For the same
reasons, segment profit as a percentage of sales decreased from 31.7% for the
three-month period ended December 31, 1998 to 23.4% for the same period in
1999.

EUROPEAN GROUP

For the three-month period ended December 31, 1999, European Group sales to
external customers increased 22.2%, or $671,000, from $3.0 million for the
three-month period ended December 31, 1998 to $3.7 million. This increase was
primarily due to increases in European orders outside of Germany, partially
offset by the negative impact of changes in exchange rates on sales.

For the three-month period ended December 31, 1999, European Group segment
profit increased 33.0%, or $345,000, from $1.0 million for the three-month
period ended December 31, 1998 to $1.4 million. This increase is primarily
due to additional gross margin associated with the increase in sales, offset
by increases in SG&A costs associated with the growth of the segment. For the
same reasons, European Group segment profit as a percentage of sales
increased from 34.6% for the three-month period ended December 31, 1998 to
37.6% for the same period in 1999.

                                     Page 14
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                DECEMBER 31, 1999
                                   (Continued)


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 $6.7 million at December 31, 1999, an increase of $3.2 million
from June 30, 1999. This increase was the result of $5.8 million of cash flow
from operations and $3.0 million from the exercise of stock options and
warrants, offset by $1.1 million of expenditures for capital equipment, $4.0
million of payments on the Company's line of credit, $1.4 million of payments
to the former shareholder of OR, and $0.4 million of dividends paid to the
former shareholders of SciTech, Inc. The Company's growth during the
six-month period ended December 31, 1999 caused the Company to increase
accounts receivable and inventory. Liabilities were in line with the current
level of business. The exercise of stock options reduced the Company's tax
liability.

On December 1, 1998, the Company entered into a $15.0 million Credit
Agreement ("Agreement") with Bank of America, N.A. ("Lender"), formerly
NationsBank, N.A. The Agreement expired on November 30, 1999, but was
modified to extend the expiration date to January 31, 2000. Effective January
31, 2000, the agreement was renewed and modified, allowing for $25.0 million
of borrowings with an expiration date of November 30, 2001. As of December
31, 1999, there were no borrowings drawn on the Agreement and the Company was
in compliance with all of the covenants of the agreement. Management believes
that its financial resources, including its internally generated funds and
debt capacity, will be sufficient to finance the Company's current operations
and capital expenditures, excluding acquisitions, for the next twelve months.
At December 31, 1999, there were no material outstanding commitments for
capital expenditures.

For the six-month period ended December 31, 1999, there was no significant
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 certain date-sensitive
computer chips, software, and systems to recognize a two-digit date field as
belonging to the year 2000 and beyond. Mistaking "00" for 1900 or any other
incorrect year 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 issue could have far-reaching implications, some of which
cannot be anticipated or predicted with any degree of certainty.

The Company has experienced no significant difficulties as a result of the
Y2K issue. Its internal business and engineering purchased software packages
were unaffected by the change from 1999 to 2000. The Company's operations
have not been materially adversely affected by any Y2K problems of its the
major suppliers, who are component parts distributors and contract
manufacturers. None of the Company's seven facilities has experienced any Y2K
related disruptions in electricity, water, sewer, telephone, or other needed
services.

Before the end of 1999, the Company had assessed the capability of all of its
existing and legacy products to handle the year 2000 and had provided
information to its customers about what steps needed to be taken to ensure
Y2K readiness, or the need for replacement of a product. To the Company's
knowledge, none of its customers has experienced any significant Y2K
difficulty with any of the Company's products. The Company's operations have
not been materially affected by the failure of any customer to purchase goods
or services from the Company due to non-Y2K readiness.

To date, the cost of the Company's Y2K assessment, including both incremental
spending and reallocated resources, has not been, and is not expected to be,
material and has been absorbed, or is expected to be absorbed, within the
normal capital equipment and operating expenditures of the Company. To date,
costs incurred and included in the Company's reported financial results were
approximately $385,000 and were limited to the cost of existing employees
assigned to a Y2K task force established by the Company, or outside
consultants hired on a temporary basis. Of this $385,000, $100,000 was
included in the financial results for the six months ended December 31, 1999
and $285,000 was included in prior years' financial results.


                                     Page 15

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                DECEMBER 31, 1999
                                   (Continued)

The Company has not received any claims resulting from the Y2K transition.
However, because there is no uniform definition of "Y2K readiness" and
because all customer situations cannot be anticipated, particularly those
involving third party products, the Company may encounter Y2K transition
claims. These claims, if successful, could have a material adverse impact on
future results.

While the Company has not experienced any material adverse Y2K related
effects, the Y2K issue may still create unforeseen risks to the Company from
its internal computer systems, as well as from computer systems of third
parties with which it deals. Failures of the Company's or third parties'
computer systems could have a material adverse impact on the Company's
ability to conduct its business.

EURO CONVERSION

On January 1, 1999 eleven of the fifteen member countries of the European
Union adopted the euro as their common legal currency and established fixed
conversion rates between their existing sovereign currencies and the euro.
The legacy currencies of the participating European Union members will remain
legal tender in the participating countries for the transition period from
January 1, 1999 to January 1, 2002. Beginning January 1, 2002, the
participating countries will issue new euro-denominated bills and coins for
use in cash transactions. Legacy currencies will no longer be legal tender
for any transactions beginning July 1, 2002, making conversion to the euro
complete. The Company has begun to assess its need to adapt information
technology and other systems to accommodate euro-denominated transactions,
any potential impact on terms and enforceability of legacy denominated
contracts, and potential tax consequences of currency conversion. This
assessment is being conducted to determine whether the euro conversion will
have a material adverse effect on the Company's financial position, results
of operations, or liquidity.

NEW ACCOUNTING STANDARDS

SFAS 133, "Accounting for Derivative Instruments and Hedging Activities", was
issued in June 1998. This statement establishes accounting and reporting
standards for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities. The
provisions of SFAS 133, as amended, are effective for financial statements
for fiscal years beginning after June 15, 2000, although early adoption is
permitted. The Company has not determined the financial impact of adopting
SFAS 133 to date.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the information on this risk that was
provided in the Company's Form 10-K for the year ended June 30, 1999.


                                     Page 16

<PAGE>


PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities

         On December 20, 1999, the Company issued a total of 174,863 shares of
         common stock to two individuals in Exchange for all of the outstanding
         shares of SciTech, Inc., in connection with a pooling of interests
         between SciTech, Inc. and the Company. The shares were issued pursuant
         to Section 4(2) of the Securities Act of 1933 and bear a restrictive
         legend. Both individuals were given copies of the Company's Form 10-K,
         all subsequent filings, and any other information about the Company
         that they requested. Both executed a Subscription and Representation
         Letter acknowledging their ability to assume the risk of the investment
         in the shares, their understanding of the restricted nature of the
         shares, and that they were sophisticated investors.

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

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

         The following items were submitted to a vote and approved at the Annual
         Meeting of Stockholders held on November 11, 1999:
<TABLE>
<CAPTION>
                                                    TABULATION OF VOTES
         ---------------------------------------------------------- ------------- ------------- ---------------------
                                                                                   Against or     Abstentions and
                                Item Voted                              For         Withheld      Broker Non-Votes
         ---------------------------------------------------------- ------------- ------------- ---------------------
<S>                                                                   <C>             <C>                <C>
         Election of Directors:
             Scott A. Alexander                                       5,297,256       1,100              3,075
             Warren W. Andrews                                        5,297,256       1,100              3,075
             Christopher J. Amenson                                   5,297,256       1,100              3,075
             William J. Becker                                        5,297,256       1,100              3,075
             Lawrence A. Bennigson                                    5,297,256       1,100              3,075
             James E. Dixon, Jr.                                      5,297,256       1,100              3,075
             Louis C. Golm                                            5,297,256       1,100              3,075
             Alan F. White                                            5,297,256       1,100              3,075

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

         Ratification of KPMG LLP as the Company's independent
         auditor for fiscal year
         ending June 30, 2000.                                        5,292,880       5,751              2,800

         ---------------------------------------------------------- ------------- ------------- ---------------------
</TABLE>

Item 5.  Other Information - None

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.ap   (1)       Pooling Agreement between SciTech, Inc.,
                                    Robert Scidmore and David Scidmore, and SBS
                                    Technologies, Inc., and its wholly-owned
                                    Subsidiary, SBS Technologies, Inc.,
                                    Communications Products, dated December 20,
                                    1999.


                                     Page 17

<PAGE>

                  10.aq    (1)      Modification of Credit Agreement, Guaranty
                                    Agreements and Related Loan Documents,
                                    between SBS Technologies, Inc., and Bank of
                                    America, N.A., formerly NationsBank, N.A.,
                                    dated January 31, 2000.
                  10.ar    (1)      Amended and Restated Revolving Promissory
                                    Note, between SBS Technologies, Inc., and
                                    Bank of America, N.A., formerly NationsBank,
                                    N.A., dated January 31, 2000.
                  27.               Financial Data Schedule


         (b)      Reports on Form 8-K - None



         (1)      See Exhibit Index on Page 20


                                     Page 18


<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:  February 11, 2000              /s/   Christopher J. Amenson
                                      ----------------------------
                                      Chairman of the Board,
                                      Chief Executive Officer
                                      and President




Date:  February 11, 2000              /s/   James E. Dixon, Jr.
                                      -------------------------
                                      Vice President,
                                      Finance and Administration;
                                      Chief Financial Officer and
                                      Treasurer




                                     Page 19


<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.ap                Pooling Agreement between SciTech, Inc., Robert Scidmore
                     and David Scidmore, and SBS Technologies, Inc., and its
                     wholly-owned subsidiary, SBS Technologies, Inc.,
                     Communications Products, dated December 20, 1999.               Filed herewith electronically

10.aq                Modification of Credit Agreement, Guaranty Agreements and
                     Related Loan Documents, between SBS Technologies, Inc.,
                     and Bank of America, N.A., formerly NationsBank, N.A.,
                     dated January 31, 2000.                                         Filed herewith electronically

10.ar                Amended and Restated Revolving Promissory Note,
                     between SBS Technologies, Inc. and Bank of America, N.A.,
                     dated January 31, 2000.                                         Filed herewith electronically

27.                  Financial Data Schedule                                         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 20