<PAGE>

                    U. S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


(Mark One)

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

            For the quarterly period ended March 31, 1999

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

                         COMMISSION FILE NUMBER: 0-25844


                         TAITRON COMPONENTS INCORPORATED
             (Exact Name of Registrant as Specified in Its Charter)


       CALIFORNIA                                                 95-4249240
(State Or Other Jurisdiction of                               (I.R.S. Employer
 Incorporation Or Organization)                              Identification No.)


                                25202 ANZA DRIVE
                         SANTA CLARITA, CALIFORNIA 91355
                    (Address Of Principal Executive Offices)

                                 (661) 257-6060
              (Registrant's Telephone Number, Including Area Code)

                                      NONE
      (Former Name, Address and Fiscal Year, if Changed Since Last Report)

Check whether the registrant: (1) has filed all reports required to be filed 
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the 
preceding 12 months (or for such shorter period that the registrant was 
required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.

          YES     X             NO          
             ---------             ---------

State the number of shares outstanding of each of the issuer's classes of 
common equity as of the latest practicable date:

Class A Common Stock, $.001 par value, 5,353,996 shares outstanding as of 
April 30, 1998

Class B Common Stock, $.001 par value, 762,612 shares outstanding as of 
April 30, 1998

<PAGE>

PART I. FINANCIAL INFORMATION

       Item 1. Financial Statements

                         TAITRON COMPONENTS INCORPORATED

                            Condensed Balance Sheets
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                                                     MARCH 31,           DECEMBER 31,
                                   ASSETS                                               1999                 1998
                                                                                  -----------------    -----------------
                                                                                    (Unaudited)
<S>                                                                               <C>                  <C>              
Current assets:
    Cash and cash equivalents                                                     $           50       $          364
    Trade accounts receivable, net                                                         3,877                4,528
    Inventory                                                                             33,231               34,868
    Prepaid expenses                                                                         337                  360
     Deferred income taxes and other current assets                                        1,423                1,151
                                                                                  -----------------    -----------------
           Total current assets                                                           38,918               41,271

Property and equipment, net                                                                2,879                2,976
Other assets                                                                                 362                  336
                                                                                  -----------------    -----------------

           Total assets                                                           $       42,159       $       44,583
                                                                                  -----------------    -----------------
                                                                                  -----------------    -----------------

                    LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Current portion of bank revolving line of credit and long term debt                   10,130               10,920
    Trade accounts payable                                                                 2,439                4,407
    Accrued liabilities                                                                      822                  705
                                                                                  -----------------    -----------------
           Total current liabilities                                                      13,391               16,032
                                                                                  -----------------    -----------------

Long-term debt, less current portion                                                       3,450                3,455
                                                                                  -----------------    -----------------

Shareholders' equity:
    Preferred stock, $.001 par value.  Authorized 5,000,000 shares; none
      issued or outstanding.                                                                  --                   --
    Class A common stock, $.001 par value.  Authorized 20,000,000 shares;
      issued and outstanding 5,353,996 and  5,376,096 shares as of March 31,                   5                    5
      1999 and December 31, 1998, respectively.
    Class B common stock, $.001 par value.  Authorized, issued and
      outstanding 762,612, shares as of March 31, 1999 and 1998.                               1                    1
    Additional paid-in capital                                                            12,139               12,179
    Accumulated comprehensive income                                                         (15)                 (13)
    Retained earnings                                                                     13,188               12,924
                                                                                  -----------------    -----------------

           Total shareholders' equity                                                     25,318               25,096
                                                                                  -----------------    -----------------

           Total liabilities and shareholders' equity                             $       42,159       $       44,583
                                                                                  -----------------    -----------------
                                                                                  -----------------    -----------------
</TABLE>


See accompanying notes to financial statements

                                       2
<PAGE>

                         TAITRON COMPONENTS INCORPORATED

                        Condensed Statements of Earnings
                (Dollars in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                                THREE MONTHS ENDED MARCH 31,
                                                          -----------------------------------------
                                                                 1999                  1998
                                                          -------------------    ------------------
                                                             (Unaudited)            (Unaudited)
<S>                                                       <C>                    <C>              
Net sales                                                 $        6,809         $        8,574

Cost of goods sold                                                 4,775                  6,074
                                                          -------------------    ------------------

Gross profit                                                       2,034                  2,500

Selling, general and administrative expenses                       1,389                  1,364
                                                          -------------------    ------------------

         Operating earnings                                          645                  1,136

Interest expense, net                                                219                    290
Other expense (income), net                                          (23)                     8
                                                          -------------------    ------------------

         Earnings before income taxes                                449                    838

Income tax expense                                                   185                    335
                                                          -------------------    ------------------

         Net earnings                                     $          264         $          503
                                                          -------------------    ------------------

Earnings Per Share:
     Basic                                                $          .04         $          .08
                                                          -------------------    ------------------
                                                          -------------------    ------------------
     Diluted                                              $          .04         $          .08
                                                          -------------------    ------------------
                                                          -------------------    ------------------

Weighted average common shares outstanding:
     Basic                                                     6,118,608              6,366,141
                                                          -------------------    ------------------
                                                          -------------------    ------------------
     Diluted                                                   6,118,608              6,393,702
                                                          -------------------    ------------------
                                                          -------------------    ------------------
</TABLE>



See accompanying notes to financial statements

                                       3
<PAGE>

                         TAITRON COMPONENTS INCORPORATED

                       Condensed Statements of Cash Flows
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                                                 THREE MONTHS ENDED MARCH 31
                                                                            ---------------------------------------
                                                                                  1999                 1998
                                                                            ------------------   ------------------
                                                                               (Unaudited)          (Unaudited)
<S>                                                                         <C>                  <C>               
Cash flows from operating activities:
    Net earnings                                                            $          264       $          503
                                                                            ------------------   ------------------

    Adjustments to reconcile net earnings to net cash used in operating
      activities:
    Depreciation and amortization                                                      111                   44
    Deferred income taxes                                                               --                  (33)
    Changes in:
      Trade accounts receivable                                                        651                 (340)
      Inventory                                                                      1,637               (1,785)
      Prepaid expenses                                                                  23                  307
      Other current assets                                                            (272)                  --
      Other assets                                                                     (26)                  (7)
      Trade accounts payable                                                        (1,968)               2,387
      Accrued and other liabilities                                                    117                  276
                                                                            ------------------   ------------------

              Total adjustments                                                        273                  849
                                                                            ------------------   ------------------

              Net cash provided by operating activities                                537                1,352
                                                                            ------------------   ------------------

Cash flows from investing activities -
      Acquisitions of property and equipment                                           (14)                (238)
                                                                            ------------------   ------------------

Cash flows from financing activities:
    Borrowings made on revolving line of credit and long term debt                     600                  600
    Payments made on revolving line of credit and long term debt                    (1,397)              (1,455)
    Repurchase of Class A Common Stock                                                 (40)                (349)
                                                                            ------------------   ------------------

              Net cash used in financing activities                                   (837)              (1,204)
                                                                            ------------------   ------------------

              Net decrease in cash and cash equivalents                               (314)                 (90)

Cash and cash equivalents, beginning of period                                         364                  163
                                                                            ------------------   ------------------

Cash and cash equivalents, end of period                                    $           50       $           73
                                                                            ------------------   ------------------
                                                                            ------------------   ------------------

Supplemental disclosure of cash flow information:
    Cash paid for interest                                                  $          150       $          217
                                                                            ------------------   ------------------
                                                                            ------------------   ------------------

    Cash paid for income taxes                                              $           --       $            8
                                                                            ------------------   ------------------
                                                                            ------------------   ------------------
</TABLE>


See accompanying notes to financial statements

                                       4

<PAGE>

                         TAITRON COMPONENTS INCORPORATED
                          Notes to Financial Statements
                                 March 31, 1999

(1)    BASIS OF PRESENTATION

       The financial information furnished herein is unaudited, and, in the
       opinion of the management, includes all adjustments (all of which are
       normal, recurring adjustments) in conformity with the accounting
       principles reflected in the financial statements included in the Annual
       Report on Form 10-K filed with the Securities and Exchange Commission for
       the year ended December 31, 1998. The results of operations for interim
       periods are not necessarily indicative of results to be achieved for full
       fiscal years.

       The accompanying unaudited financial statements have been prepared in
       accordance with the instructions to Form 10-Q and, therefore, do not
       include all information and footnotes necessary for a fair presentation
       of financial position, results of operations and cash flows in conformity
       with generally accepted accounting principles. The financial statements
       and notes should, therefore, be read in conjunction with the financial
       statements and notes thereto in the Annual Report on Form 10-K for the
       year ended December 31, 1998.


(2)    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       REVENUE RECOGNITION

       Revenue is recognized upon shipment of the merchandise. Reserves for
       sales allowances and customer returns are established based upon
       historical experience and management's estimates as shipments are made.
       Sales returns for the quarters ended March 31, 1999 and 1998 aggregated
       $211,000 and $285,000, respectively.

       ALLOWANCE FOR SALES RETURNS AND DOUBTFUL ACCOUNTS

       The allowance for sales returns and doubtful accounts at March 31, 1999
       and December 31, 1998 aggregated $149,000 and $160,000, respectively.

       INVENTORY

       Inventory, consisting principally of products for resale, is stated at
       the lower of cost or market, using the first-in, first-out method. The
       value presented is net of valuation allowances of $1,200,000 and
       $1,593,000 at March 31, 1999 and December 31, 1998, respectively.

       RECLASSIFICATION

       The 1998 balances have been reclassified to conform with the 1999
       balances where appropriate.

                                       5
<PAGE>

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

RESULTS OF OPERATIONS

The Company distributes a wide variety of transistors, diodes and other
semiconductors, optoelectronic devices and passive components to other
electronic distributors and to original equipment manufacturers.

The following table sets forth, for the periods indicated, certain operating
amounts and ratios as a percentage of net sales.

<TABLE>
<CAPTION>
                                                                             THREE MONTH PERIOD ENDED
                                                                                     MARCH 31,
                                                                         --------------------------------
                                                                             1999               1998
                                                                         --------------     -------------
                                                                              (Dollars in Thousands)
<S>                                                                      <C>                <C>          
Net sales                                                                $       6,809             8,574

Cost of goods sold                                                               4,775             6,074

Gross profit                                                                     2,034             2,500
       % of net sales                                                            29.9%             29.2%

Selling, general and administrative expenses                                     1,389             1,364
       % of net sales                                                            20.4%             15.9%

Operating earnings                                                                 645             1,136
       % of net sales                                                             9.5%             13.2%

Interest expense, net                                                              219               290
       % of net sales                                                             3.2%              3.4%

Net earnings                                                                       264               503
       % of net sales                                                             3.9%              5.9%
</TABLE>

THREE MONTH PERIOD ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTH PERIOD 
ENDED MARCH 31, 1998

         Net sales for the three months ended March 31, 1999 were $6,809,000, 
compared with net sales for the three months ended March 31, 1998 of 
$8,574,000, a decrease of $1,765,000 or 20.6%. This sales decrease was 
attributable principally to a decline in the Company's domestic sales volume 
of approximately $1,368,000. For most of the current quarter, the supply for 
discrete semiconductors was greater than the demand. A decrease in export 
sales of $413,000 also contributed to the decline in net sales. The decline 
in net sales was principally a result of a continued industry wide decline in 
demand for discrete semiconductors.

         Cost of goods sold decreased by $1,299,000 to $4,775,000 for the 
three month period ended March 31, 1999, a decrease of 21.4% from the three 
month period ended March 31, 1998. Cost of goods sold decreased principally 
as a result of the decrease in the number of units sold. Gross profit 
decreased by $466,000 to $2,034,000 for the three months ended March 31, 1999 
from $2,500,000 for the same period in 1998. Cost of goods sold as a 
percentage of net sales was 70.1% in the first three months of 1998, a 
decrease from 70.9% in the first three months of 1998.

                                       6
<PAGE>

         Selling, general and administrative expenses increased by $25,000 or 
1.8% for the three months ended March 31, 1999 compared to the same period of 
1998. As expected, there was no significant change in the Company's operating 
expenses during the current quarter ended March 31, 1999, when compared to 
the same quarter last year.

         Operating earnings decreased by $491,000 or 43.2% between the three 
month period ended March 31, 1999 and 1998, and decreased as a percentage of 
net sales to 9.5% from 13.2%. Operating earnings decreased principally as a 
result of decreased net sales and a small increase in selling, general and 
administrative expenses described above.

         Interest expense, net of interest income for the three months ended 
March 31, 1999 decreased by $71,000 compared to the three months ended March 
31, 1998. The decrease is due to decreased borrowings as smaller purchases of 
inventory were made during the current quarter as compared to the same 
quarter last year.

          Income taxes were $185,000 in the three months ended March 31, 
1999, representing an effective tax rate of 41.2%, compared to $335,000 for 
the same period in 1998, an effective tax rate of 40.0%.

         The Company had net earnings of $264,000 for the three months ended 
March 31, 1999 as compared with net earnings of $503,000 for the three months 
ended March 31, 1998, a decrease of $239,000 or 47.5% for the reasons 
discussed above. Net earnings as a percentage of net sales decreased to 3.9% 
from 5.9%.

SUPPLY AND DEMAND ISSUES

        Beginning in 1996 and continuing through the current quarter ended 
March 31, 1999, the supply of most products distributed by the Company has 
been more than sufficient to meet customer's demand for these products. The 
weak demand left suppliers with large amounts of uncommitted products. When 
the opportunity arises, the Company may consider taking advantage of this 
situation by making opportunistic purchases of suppliers' uncommitted 
capacity at favorable pricing, however, since the later part of 1997, the 
Company also has focused on reducing it's overall inventory on hand. 
Management attempts to structure inventory levels in such a way as to poise 
the Company to take advantage of a recovery in the discrete semiconductor 
market. At the same time, if the market recovery is slow in taking place, 
inventory levels should not impose an unwarranted financial burden on the 
Company's earnings.

         Readers are cautioned that the foregoing statements are forward 
looking and are necessarily speculative. There can be no guarantee that a 
recovery in the discrete semiconductor market will take place. Also, if 
prices of components held in inventory by the Company decline or if new 
technology is developed that displaces products distributed by the Company 
and held in inventory, the Company's business could be materially adversely 
affected. See "-Cautionary Statement Regarding Forward Looking Information".

LIQUIDITY AND CAPITAL RESOURCES

         The Company has satisfied its liquidity requirements principally 
through cash generated from operations and short-term commercial loans. A 
summary of the Company's cash flows resulting from its operating, investing 
and financing activities for the three months ended March 31, 1999 and 1998 
were as follows:

                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED MARCH 31,
                                                                        -------------------------------------
                                                                              1999              1998
                                                                             ------            -------
                                                                               (Dollars in Thousands)
<S>                                                                          <C>               <C>    
           Operating activities..........................................    $ 537             $ 1,352
           Investing activities..........................................      (14)               (238)
           Financing activities..........................................     (837)             (1,204)
</TABLE>


        Cash flows from operating activities decreased to $537,000 from 
$1,352,000 during the three months ended March 31, 1999 and 1998, 
respectively, which is partially due to the over all decline in sales during 
the current quarter as compared to the same quarter last year. Moreover, in 
positioning itself as a "discrete components superstore," the Company has 
been required to carry large inventory levels. However, since 1997, the 
Company has focused on utilizing its current inventory, thereby reducing 
inventory through 1999. As a result, inventory has decreased from $34.9 
million at December 31, 1998 to $33.2 million at March 31, 1999. Cash flows 
generated by the decrease in inventory was offset by a greater decrease in 
accounts payable during the current quarter ended March 31, 1999, compared to 
the same quarter last year.

         The discrete semiconductor products distributed by the Company are 
mature products, used in a wide range of commercial and industrial products 
and industries. As a result, the Company has never experienced any material 
amounts of product obsolescence. The Company also attempts to control its 
inventory risks by matching large customer orders with simultaneous orders to 
suppliers. Nonetheless, the high levels of inventory carried by the Company 
increase the risks of price fluctuations and product obsolescence.

        Cash flows used in investing activities decreased to $14,000 from 
$238,000 during the three months ended March 31, 1999 and 1998, respectively, 
primarily due to fewer purchases of fixed assets during the current quarter 
ended March 31, 1999, as compared to the same period last year. During the 
first quarter of fiscal 1998, the Company began to purchase its Oracle 
Application System, which was fully implemented in the second quarter of 
fiscal 1998. There were no such purchases during the current quarter ended 
March 31, 1999.

        Cash flows used in financing activities decreased to $837,000 from 
$1,204,000 during the three months ended March 31, 1999 and 1998, 
respectively, primarily due to less repurchases of the Company's Class A 
common stock and less payments on the Company's bank revolving lines of 
credit and long term debt during the current quarter ended March 31, 1999, as 
compared to the same quarter ended March 31, 1998.

          The Company believes that funds generated from operations and it's 
bank revolving lines of credit will be sufficient to finance its working 
capital and capital expenditure requirements for the foreseeable future.

         As of the date of this Report, the Company has no commitments for 
other equity or other debt financing or other capital expenditures.

                                       8
<PAGE>

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

         Several of the matters discussed in this document contain forward 
looking statements that involve risks and uncertainties. Such forward looking 
statements are usually denoted by words or phrases such as "believes," 
"expects," "projects," "estimates," "anticipates," "will likely result," or 
similar expressions. The Company wishes to caution readers that all forward 
looking statements are necessarily speculative and not to place undue 
reliance on such forward looking statements, which speak only as of the date 
made, and to advise readers that actual results could vary due to a variety 
of risks and uncertainties. Factors associated with the forward looking 
statements that could cause the forward looking statements to be inaccurate 
and could otherwise impact the Company's future results are set forth in 
detail in the Company's most recent annual report on Form 10-K. In addition 
to the other information contained in this document, readers should carefully 
consider the information contained in the Company's Form 10-K for the year 
ended December 31, 1998 under the heading "Cautionary Statements and Risk 
Factors."

YEAR 2000

        The Company's Year 2000 Project ("Project") is proceeding on 
schedule. The Project is addressing the issue of computer chips being unable 
to distinguish between the year 1900 and the year 2000. The Project consists 
of three elements. First, the Company is evaluating its Year 2000 readiness 
in both information technology ("IT") and non-IT systems. Non-IT systems 
typically include embedded technology in electronic equipment, such as 
microprocessors. Non-IT systems are more difficult to assess and repair than 
IT systems. Second, for both IT and non-IT systems, the Company is planning 
and implementing any necessary changes that the Company believes will make 
the Company ready for the Year 2000. Third, the Company is evaluating the 
effect that third-parties Year 2000 readiness may have on the Company's 
business.

        PROJECT
        In 1997, in order to improve access to business information and to 
prepare the Company for any future growth, the Company began a systems 
replacement project to convert its then existing system to an Oracle based 
system. Oracle was implemented during the third quarter of 1998. Oracle has 
represented that their products used by the Company are Year 2000 fully 
compliant meeting the requirements set out by the British Standards Institute 
in DISC PD-2000-1 A DEFINITION OF YEAR 2000 CONFORMITY REQUIREMENTS. Year 
2000 conformity means that neither performance nor functionality is affected 
by dates prior to, during and after the year 2000. The other material 
computer software programs utilized by the Company are supplied by vendors 
that also publish that their products are Year 2000 compliant. The Company 
believes that its IT systems are approximately 95% Year 2000 compliant now 
and if further evaluation uncovers a problem the software will be replaced 
before December 31, 1999. The Company has begun the evaluation of its non-IT 
systems, but the Project plan is to have the evaluation completed and where 
necessary replacement equipment installed and operational by the end of the 
third quarter of 1999. The Company has also begun the evaluation of 
third-parties Year 2000 readiness. This includes identifying and prioritizing 
critical suppliers, customers and other third-parties by communicating with 
them about their plans and progress in addressing the Year 2000 problem. 
These evaluations will be followed by the development of contingency plans, 
which are scheduled to be developed in the second quarter of 1999.

                                       9

<PAGE>

        COSTS
        The total cost associated with required modifications to become Year 
2000 compliant is not expected to be material to the Company's financial 
position. The estimated total cost of the Year 2000 Project is less than 
$25,000 and consists principally of replacing old IT and Non-IT equipment 
where compliance with Year 2000 is in doubt. The cost of implementing the 
Oracle system and any resulting equipment replacement or upgrades are not 
included in these costs estimates as the Company did not accelerate the 
replacement of its old system due to Year 2000 issues.

        RISKS
        The failure to correct a material Year 2000 problem could result in 
an interruption in, or a failure of, certain normal business activities or 
operations. Such failure could materially and adversely affect the Company's 
results of operations, liquidity and financial condition. Due to the general 
uncertainty inherent in the Year 2000 problem, resulting in part from the 
uncertainty of the Year 2000 readiness of third-party suppliers and 
customers, the Company is unable to determine at this time whether the 
consequences of Year 2000 failures will have a material impact on the 
company's results of operations, liquidity or financial condition. The Year 
2000 Project is expected to significantly reduce the Company's level of 
uncertainty about the Year 2000 problem and, in particular, about the Year 
2000 compliance and readiness of its material external third-parties. The 
Company believes that, with the implementation of new business systems and 
completion of the Project as scheduled, the possibility of significant 
interruptions of normal operations should be reduced.

PART II. OTHER INFORMATION

Item 1. through Item 5.

Not applicable

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits:

                 27   Financial Data Schedule

(b)      Reports on Form 8-K:

                 None

                                      10
<PAGE>

SIGNATURES



                  In accordance with the requirements of the Securities 
Exchange Act of 1934, the registrant caused this report to be signed on its 
behalf by the undersigned, thereunto duly authorized.

                                           TAITRON COMPONENTS INCORPORATED






Date:    May 12, 1999                By:       /s/ Stewart Wang               
                                         -------------------------------------
                                              Stewart Wang
                                              Chief Executive Officer
                                              and Director



Date:    May 12, 1999                By:       /s/ Steven H. Dong             
                                         -------------------------------------
                                              Steven H. Dong
                                              Chief Financial Officer
                                              (Principal Accounting Officer)

                                      11