<PAGE>   1

                                   FORM 10-KSB
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
  (Mark One)
     [X]        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                    For the fiscal year ended March 31, 1999


                                       OR


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

                         Commission file number: 0-20284

                         CITATION COMPUTER SYSTEMS, INC.

               (Exact name of company as specified in its charter)


<TABLE>
<S>                                                      <C>
                    MISSOURI                                43-1174397
         (State or other jurisdiction of                (I.R.S. Employer
         incorporation or organization)                 Identification No.)


    424 SOUTH WOODS MILL ROAD, SUITE 200                      63017
           CHESTERFIELD, MISSOURI                          (Zip Code)
    (Address of principal executive offices)
</TABLE>


        Company's telephone number, including area code: (314) 579-7900


        Securities registered pursuant to Section 12(b) of the Act: NONE


          Securities registered pursuant to Section (12(g) of the Act:
                     COMMON STOCK, PAR VALUE $0.10 PER SHARE


Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the company was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes  X  No
                                                                       ---   ---

Check if disclosure of delinquent filers pursuant to Item 405 of Regulation S-B
is not contained herein, and will not be contained, to the best of Company's
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-KSB or any amendment to this Form 10-K.
                                                                             ---

Company's revenue for the fiscal year ended March 31, 1999, were $16,128,000.


On June 15, 1999, the aggregate market value of the Company's voting stock held
by non-affiliates was $4,774,436.


On June 15, 1999, there were 3,844,211 share of Common Stock outstanding,
exclusive of treasury shares or shares held by subsidiaries of the Company.


Part II incorporates information by reference from the Annual Report to
Shareholders for the fiscal year ended March 31, 1999. Part III incorporates
information by reference from the Proxy Statement for the Company's 1999 Annual
Meeting of Shareholders.

                                                                          Page 1
<PAGE>   2


                                     PART I

ITEM 1.  DESCRIPTION OF BUSINESS

INTRODUCTION

     CITATION Computer Systems, Inc.(R) ("CITATION" or the "Company") designs,
develops, markets and supports patient-centered clinical information systems for
hospitals, clinics, physicians' groups and emerging Integrated Delivery Networks
("IDNs"). The Company offers a comprehensive suite of clinical products using
open client/server architecture that meets a broad range of the information
systems needs of the healthcare industry. These products integrate patient care
processes within the enterprise. The Company's systems are modular, scaleable
and allow clients to leverage their investments in existing systems. Individual
components of the Company's systems can function independently, giving clients
the ability to build their system over time and to integrate existing software
which is meeting their current needs. CITATION's systems are installed in
approximately 300 institutions ranging in size from under 100 beds to over 1,000
beds. CITATION markets its products directly in the United States and Canada, as
well as through distribution partners in Europe, India, Latin America and the
Far East.


THE COMPANY

     CITATION was organized in 1979 as a Missouri corporation. The Company's
principal executive office is located at 424 South Woods Mill Road, Suite 200,
Chesterfield, Missouri 63017 (a suburb of St. Louis) and its telephone number is
(314) 579-7900.

     In June 1998, the Company sold its suite of financial software products to
allow it to focus on its clinical applications. The Description of Business
section excludes these products.


INDUSTRY BACKGROUND

     The United States healthcare industry is undergoing rapid change.
Historically, reimbursement for healthcare services has been based on a
fee-for-service model of payment. With increasing pressure to reduce costs,
managed care organizations and other payors are shifting the economic risk for
the delivery of care to providers through alternative reimbursement models,
including capitation and fixed fees. As a result, healthcare providers such as
hospitals, multi-specialty physician groups, laboratories, pharmacies, home
health services and nursing homes are integrating horizontally and vertically to
create IDNs. IDNs are

                                                                          Page 2
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designed to serve all of the healthcare needs of regional populations while
achieving economies of scale.

     In order to lower healthcare delivery costs while maintaining or improving
the quality of patient care, providers need access to detailed clinical
information to: (i) manage the patient care process throughout the IDN; (ii)
automate patient care documentation; (iii) compare care provider performance and
clinical and cost outcomes both within the organization and to established
norms; (iv) monitor performance under managed care contracts; (v) monitor
practice patterns of care providers; (vi) measure the effectiveness of new
technologies and therapeutics; and (vii) support intra- and inter-facility
communication. A comprehensive clinical healthcare information system must be
able to assist both clinicians and administrators in managing patient
information throughout the continuum of care.

     Certain information-intensive departments of healthcare organizations, such
as laboratories, were early adopters of information systems in order to manage
workflow and clinical data. However, as multiple legacy systems have become
increasingly prominent on an enterprise-wide basis, the integration of these
systems across the enterprise has become more difficult given the different
architectures, platforms and operating systems of these information systems.

     Integration and accessibility to patient information are increasingly
necessary for healthcare providers to operate efficiently and improve the
quality of patient care. As the need for readily accessible information
throughout the healthcare enterprise continues to grow, hospitals, providers and
payors of all sizes are faced with the challenge of implementing healthcare
information systems that are scalable, capable of working with existing
information systems and flexible to adapt to changes in the healthcare
marketplace. Also, such systems must be patient-centered, integrating all
aspects of managing the healthcare process.


THE CITATION SOLUTION

     CITATION designs, develops, markets and supports products that address the
healthcare industry's need for patient-centered, fully integrated clinical
information systems. CITATION's products are designed using a modular,
client/server approach, offering clients the ability to build their systems over
time and to allow existing legacy applications to interoperate with the
Company's products.

                                                                          Page 3
<PAGE>   4

BUSINESS STRATEGY

     CITATION's goal is to leverage its experience of 20 years with
client/server application solutions to become a leading provider of clinical
healthcare information systems. The Company's strategy for achieving this goal
includes the following elements:

     TARGET COMPREHENSIVE CLINICAL SYSTEM SALES. CITATION intends to focus its
sales efforts on selling larger, more comprehensive clinical systems to
hospitals with 400 beds or less and IDNs to address a broad range of needs. The
Company will aggressively promote its clinical suite of products.

     LEVERAGE EXISTING CLIENT BASE. With an installed base of approximately 300
facilities (excluding the financial product suite clients), the Company believes
it has the potential to cross-sell additional products to its existing clients
because many of those clients have not purchased all of the Company's products.
CITATION's products are modular in design and can be added over time as each
client's needs expand and evolve.

     EXPAND PRODUCT PORTFOLIO. The Company plans to expand its product line to
meet the evolving needs of its clients. The Company continually evaluates its
offerings to determine what additional products or enhancements are required by
the healthcare information systems marketplace and the Company develops and
enhances products internally to meet clients' needs. If the Company can purchase
or license proven products at reasonable cost on its chosen technology base it
will do so in order to avoid the time and expense involved in developing
products.

     CAPITALIZE ON INTERNATIONAL MARKETS. CITATION believes that a significant
opportunity exists to expand the sales of its products in international markets.
Healthcare providers in a number of countries have not yet invested in
sophisticated information systems, and increasingly they are seeking to purchase
state-of-the art products, particularly clinical information systems. The
Company believes that its open, client/server architecture and modular, scalable
systems provide a cost-effective solution to these markets. CITATION has entered
several international markets through a combination of direct sales and
distribution arrangements.

     EXPANDED SERVICES. The Company has expanded the range of strategic client
support and data interpretation services it provides in order to strengthen
relationships with clients. The Company has also expanded its services to design
and configure the architecture of a client's systems, including networking,
systems integration and data conversion. Further, the Company provides advice on
data analysis to assist care providers in evaluating their operations.

                                                                          Page 4
<PAGE>   5


PRODUCTS

     CITATION has developed a comprehensive suite of clinical products to manage
information in the healthcare enterprise. A client can purchase a comprehensive
system or can buy modules separately to match a user's individual needs.
CITATION's systems address the information needs of care providers and hospital
administrators by enabling joint access to clinical and cost information,
thereby facilitating cost containment, effective decision making and delivery of
high quality care.

     CITATION's clinical suite of products currently consists of five primary
components, each of which can operate independently or as part of a fully
integrated system.

          C-COM(R) captures and tracks comprehensive patient clinical
     information and routes that information among departments or systems in the
     healthcare organization, enabling providers to evaluate quality of care,
     productivity and cost-effectiveness of services. C-COM(R) accepts orders
     from and displays the resulting information at any networked PC location
     where patient care is being delivered, such as a nursing station or even
     the bedside. C-COM(R) also is Internet-enabled and supports hand-held,
     wireless technology. C-COM(R) is available for DOS, Windows(R) and Windows
     NT(TM).1

          C-LAB(R) provides comprehensive laboratory automation solutions for
     clinics, single and multiple site hospitals and clinical and research
     laboratories. C-LAB(R) automates order entry and dissemination of results
     and interfaces with care providers' financial systems. C-LAB(R) sub-modules
     consist of General Lab, Microbiology, Anatomical Pathology and Blood Bank.
     The Blood Bank submodule is licensed by CITATION for use and implementation
     in C-LAB(R). C-LAB(R) is available in DOS, Windows(R) and Windows NT(TM).

          C-CARE is a patient care management system which is designed to
     increase the productivity of nurses and other clinicians and to assist in
     the creation and management of care plans and clinical pathways. C-CARE
     documents variances against established care plans and clinical pathways,
     enabling care providers to focus on both improving the quality of care and
     controlling costs. This system enables the healthcare enterprise to
     allocate resources and schedule procedures and tests automatically. C-CARE
     must


[FN]
1    This report contains trademarks and trade names of third parties. These
     trademarks remain the property of such third parties.
</FN>

                                                                          Page 5
<PAGE>   6


     be used in conjunction with C-COM(R). C-CARE is currently available for DOS
     under the NuCaMS product name. C-CARE is expected to be available for
     Windows NT(TM) in late 2000.

          C-RIS(R) is a radiology management system providing patient tracking,
     transcription, radiology reporting, auto-fax capabilities, statistical
     reporting, film management and mammography management. C-RIS(R) is
     available in Windows NT(TM).

          C-MAX(R) provides the information necessary to manage managed care
     contracts and transactions with indemnity payors. It also allows users to
     model future expectations of performance. C-MAX is Windows(R) based.


SERVICES

     Client service is an important component of the Company's operations. At
March 31, 1999, the Company employed 35 persons in client services. The client
services team generally provides implementation, application and support,
education and consulting services to the Company's clients and primarily employs
medical technologists and other healthcare professionals in supporting and
implementing healthcare information systems. Instrument interface, network
consulting, operating system and hardware support are provided by experts in
each area. Additional client services are provided through computer-based
training or formal instructor-led, Company-sponsored ongoing educational courses
and seminars.

     In addition, the Company provides comprehensive training for clients at its
headquarters near St. Louis. Before the Company's product becomes operational,
training is also provided at the client's location. The Company provides
additional training at the client's request for a fee. The Company offers a
maintenance program covering hardware replacement, software upgrades, and
telephone consulting service. Depending on the type of system, the Company
offers service contracts for periods of one to five years. Customer support is
available 24 hours a day.

     The Company also offers its services to design and configure the
architecture of a provider's systems, including networking, systems integration
and data conversion. Further, the Company provides advice on data analysis to
assist care providers in evaluating their operations.


                                                                          Page 6
<PAGE>   7




PRODUCT DEVELOPMENT

     CITATION is dedicated to providing state-of-the-art integrated clinical
systems for healthcare. The cornerstone of CITATION's system is its
long-standing commitment to client/server technology. CITATION's multi-tiered
products are modular in nature, using an open architecture that is integratable
with third party systems as well as other CITATION systems.

     CITATION's current product development efforts use object-oriented
programming methodologies. This allows the Company to develop applications based
on reusable libraries of code that the Company believes results in more
cost-effective and rapid product development cycles. The Company is a
Microsoft(R) Solutions Provider and extensively employs Microsoft(R) toolsets
and standards in its product development efforts. The Company believes use of
these standards and tools facilitates interfacing with other systems and
products. The Company also supports other industry standards such as HL/7 and
the Novell Netware Network Operating System.

     The Company plans to expand its clinical product line to meet the evolving
needs of its clients. The Company continually evaluates its offerings to
determine what additional products or enhancements are required by the
healthcare information systems marketplace. The Company develops and enhances
products internally to meet clients' needs, but if the Company can purchase or
license proven products at reasonable costs it will do so in order to avoid the
time and expense involved in developing products. The Company actively seeks out
for acquisition and licensing other companies and products that fit into
CITATION's overall product and technology plan. There is significant competition
for suitable acquisition candidates and there can be no assurance that the
Company will be able to successfully acquire or license additional products.

     During the fiscal years ended March 31, 1999 and 1998, CITATION invested
$3.2 million and $4.3 million, respectively, on research and development. At
March 31, 1999, the Company employed 28 persons in research and development. The
Company expects to continue to make significant investments in research and
development, however, there can be no assurance that the Company's financial and
technological resources will permit it to develop or market new products
successfully or respond effectively to technological changes.


SALES AND MARKETING

     The Company markets its products in the United States and Canada through a
direct sales force under the direction of the Company's Executive Vice

                                                                          Page 7
<PAGE>   8


President of Sales and Marketing. At March 31, 1999, the Company's sales force
consisted of 8 employees. In addition to the Company's sales force employees,
the Company has a 6-person marketing team that promotes the Company's products,
participates in trade shows and demonstrates the Company's products. In
addition, members of the Company's development and client services departments
provide pre-sales support for the Company's direct sales force in making
presentations to and preparing comprehensive proposals for potential customers.

     The Company intends to focus its sales efforts on selling larger, more
comprehensive clinical systems to hospitals with 400 beds or less, and IDNs to
address a broad range of needs. As part of this strategy, the Company
cross-trains its sales force so that each salesperson will have the background
necessary to sell all of the Company's products.

     The Company markets its products internationally through distribution
alliances in India, the Far East and Latin America. For example, Siemens
Information Systems, Ltd of India is marketing certain CITATION products in
India. In addition, the Company has a strategic relationship with Microstate
Separations Pte. Ltd. ("Microstate"), a healthcare information systems
integrator based in Singapore. Microstate has purchased the Company's systems
for the Indonesian, Malaysian, Hong Kong and Singapore markets. In Latin
America, CITATION has a strategic arrangement with Laboratories Para
Laboratorios.


REGULATION

     The Company is subject to the general requirements of the Food and Drug
Administration's regulations for Class I Medical Devices because it produces a
suite of clinical software products. The Company complies with these regulations
and follows Medical Device Reporting (MDR) guidelines as well.

     Additional legislation governing the dissemination of medical record
information has been proposed. The Company is unable to determine at this time
the effect, if any, that these requirements may have on its business.

     In addition, the healthcare industry is subject to changing political,
economic and regulatory influences that may affect the procurement practices and
operations of healthcare providers. Many lawmakers have announced that they
intend to propose programs to reform the United States healthcare system. These
programs may contain proposals to increase governmental involvement in
healthcare, lower reimbursement rates and otherwise change the regulatory
environment in which the Company's clients operate. Healthcare providers may
react to these proposals and the uncertainty surrounding such proposals by
curtailing or deferring investments, including those for the Company's
healthcare

                                                                          Page 8
<PAGE>   9


information systems. Even if healthcare providers do not curtail or defer
investments, they may institute cost containment measures in anticipation of
regulatory reform or for other reasons. These measures may result in greater
selectivity in the allocation of capital funds, which could have a material
adverse effect on the Company's ability to sell its healthcare information
systems and services. The Company cannot predict with any certainty what impact,
if any, such legislative or market-driven reforms might have on its business and
results of operations. There can be no assurance that such proposed changes, if
adopted, would not have a material adverse effect on the Company's business and
results of operations.


FORWARD LOOKING STATEMENTS

     Certain of the statements made herein are "FORWARD LOOKING STATEMENTS," as
such term is used in Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Any forward
looking statements set forth herein are necessarily subject to significant
uncertainties and risks. The words "believes," "anticipates," "expects," and
similar expressions are intended to identify forward looking statements. The
Company cautions readers that actual results could be materially different as a
result of various possibilities and differences between anticipated and actual
developments.

     The uncertainties and risks include, but are not limited to: (i)
fluctuations in quarterly operating results, as the Company has historically
experienced greatly varied results from quarter-to-quarter, and such quarterly
variations can be expected to continue; (ii) technological changes and the
Company's dependence on new product developments -- the healthcare industry is
subject to rapid technological change, and the Company's future success may be
adversely impacted if the Company is not able to adapt to such changes in a
timely and efficient manner; (iii) the historical and planned continued
expenditures of significant resources to migrate its products to the Windows NT
operating system, and a substantial risk of adverse effect if the market does
not show the anticipated acceptance of this strategy; (iv) changes in the
marketing focus of the Company, shifting to becoming a clinical solutions
supplier only and selling larger more comprehensive clinical products than in
the past, which may adversely affect the Company if such changes are not
successful in attracting additional sales; (v) risks associated with foreign
sales, including difficulties in enforcing agreements and collecting
receivables, as well as potential adverse effects due to fluctuating monetary
exchange rates; (vi) the Company's strategy of addressing certain needs within
the range of products it offers through the acquisition of licenses from third
parties or the acquisition of such third parties, however there is no assurance
that such acquisition candidates will be found or that the Company will have the

                                                                          Page 9
<PAGE>   10


resources to make such acquisitions in the future; (vii) competition from a
number of larger and better financed software providers, many of which offer a
fuller range of products than the Company; (viii) regulation of the Company as a
medical device manufacturer and the risk that such regulation will become more
complex and onerous to the Company, subjecting it to adverse effects; (ix)
ongoing healthcare industry reform which is likely to continue to pressure
healthcare providers to become more efficient and engage in less capital
spending, including spending on information systems such as those offered by the
Company; (x) product liability arising out of such issues as confidentiality of
patient records or the failure of the Company's products to provide accurate and
timely disclosure of information; (xi) substantial dependence upon intellectual
property, none of which is patented; (xii) the disposition of the Company's
suite of financial products to another company which has agreed to assume the
Company's obligations under various warranties and service agreements, which
could have a material adverse effect on the Company if the acquirer fails to
adequately satisfy these obligations; (xiii) the Company's and its customers'
ability to address adequately Year 2000 programming requirements with respect to
their own or third party software on which the Company, its customers or their
software is dependent; and (xiv) risks and uncertainties of possible business
combinations with other parties, including the ability to successfully integrate
operations and management.


EMPLOYEES

     At March 31, 1999, the Company employed 102 persons. Of these employees, 28
were involved in product development, 35 in client services, 14 in sales and
marketing and 25 in general administration, clerical and finance. The Company's
employees are not represented by a labor union and the Company's management
believes that its relationships with its employees are good.


BACKLOG

     The Company sells its products on a purchase order basis, with shipments of
"turnkey" systems made shortly after receipt of executed purchase orders. As a
result, the level of backlog at any particular time is not necessarily an
indication of future results.


                                                                         Page 10
<PAGE>   11


ITEM 2.  DESCRIPTION OF PROPERTIES

     The Company's principal facilities consisting of approximately 32,000
square feet are located in Chesterfield, Missouri, a suburb of St. Louis. The
lease expires in May, 2004.

ITEM 3.  LEGAL PROCEEDINGS

     From time to time, the Company is subject to litigation and claims in the
ordinary course of business. The Company currently is not a party to any pending
legal proceedings, other than ordinary routine litigation incidental to its
business.

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

     No such matters were submitted during the fourth quarter of Company's
fiscal year ended March 31, 1999.

ITEM 4A. EXECUTIVE OFFICERS OF THE COMPANY.

     The following persons constitute the executive officers and other key
employees of Company. All executive officers are appointed annually by of the
Company's Board of Directors.


<TABLE>
<CAPTION>
PERSON                 AGE   OFFICE/POSITION HELD
------                 ---   --------------------
<S>                    <C>   <C>

J. Robert Copper       59    Chairman and Chief Executive Officer (since
                             January 1995, prior to that time Mr. Copper was a
                             partner in Hales, Copper & Company which he joined
                             in 1992.)

Richard D. Neece       53    President (since August 1997; prior to that
                             Executive Vice President and Chief Financial
                             Officer since July 1995, from 1991 to 1995, Mr.
                             Neece served as Executive Vice President - Finance
                             and Administration for the Hussmann Corporation.)

Russell L. Fortune     51    Executive Vice President, Sales and Marketing
                             (since April 1999; prior to that Executive Vice
                             President, International Sales since April 1997;
                             prior to that various sales positions since June
                             1991)

Patricia Q. Moore      52    Vice President Human Resources (since October
                             1995, from 1992 to 1995, Ms. Moore was Director
                             of Human Resources for Spencer & Spencer Systems.)
</TABLE>

                                                                         Page 11
<PAGE>   12


<TABLE>
<CAPTION>
PERSON                      AGE       OFFICE/POSITION HELD
------                      ---       --------------------
<S>                         <C>       <C>
John P. Gilmore             57        Vice President,  Controller and Treasurer  (since August
                                      1996;  prior to that  Controller  since June 1995,  from
                                      1991 to 1995, Mr. Gilmore was Director,  Corporate  Planning
                                      and Real Estate  Accounting of the Whitman Corporation.)

Anton F. Flieg              45        Vice President,  Sales  Administration  and C-MAX(R)  Product
                                      Manager (since  July  1998;  prior  to  that  Vice  President
                                      Administrative Products since May 1997;  prior to that Director
                                      of Sales  Operations since March 1992)

Candice J. Barker           43        Vice President  Clinical  Products (since  September  1997,
                                      prior to that Director of Systems  Development  since December
                                      1996;  prior to that Director of Client  Services  since October
                                      1995,  prior to that Senior Development Manager since October 1994.)

John C. Blaile              32        Senior  Development  Manager  (since  September  1997;  prior
                                      to that Senior  Analyst at BJC Health  Systems  from May 1997
                                      to August 1997; prior to that  Project  Manager at Group Health
                                      Plan from May 1995 to April  1997,  prior  to  that  Supervisor,
                                      Computer  Operations  at California Interactive Computing from
                                      June 1991.)

Richard M. Mayer            44        Client  Services  Manager (since October 1997;  prior to that
                                      various positions in Client Services since April 1994)
</TABLE>


                                                                         Page 12


<PAGE>   13


                                     PART II


ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

     The Company hereby incorporates by reference page 8 of the Company's 1999
Annual Report to Shareholders.

ITEM 6.  MANAGEMENT'S DISCUSSION AND  ANALYSIS OR PLAN OF OPERATION

     The Company hereby incorporates by reference pages 1 through 9, inclusive,
of the Company's Financial Information for the Year Ended March 31, 1999 insert
to the 1999 Annual Report to Shareholders.

ITEM 7.  FINANCIAL STATEMENTS

     The Company hereby incorporates by reference pages 10 through 26 inclusive,
of the Company's Financial Information for the Year Ended March 31, 1999 insert
to the 1999 Annual Report to Shareholders.

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

     Not Applicable

                                                                         Page 13


<PAGE>   14


                                    PART III

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
         COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

     The Company hereby incorporates by reference the section captioned "Section
16(a) Beneficial Reporting Compliance" in the Company's definitive Proxy
Statement for its 1999 Annual Meeting of Shareholders to be filed within 120
days of the Company's fiscal year end. Information respecting executive officers
is set forth as Item 4a of this Report.

ITEM 10. EXECUTIVE COMPENSATION

     The Company hereby incorporates by reference the sections captioned
"Compensation of Executive Officers, "Option/SAR Grants in Last Fiscal Year" and
"Aggregated Option/SAR Exercises in Last Fiscal Year" in the Company's
definitive Proxy Statement for its 1999 Annual Meeting of Shareholders to be
filed within 120 days of the Company's fiscal year end.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The Company hereby incorporates by reference the section captioned
"Ownership of Certain Beneficial Owners and Management" in the Company's
definitive Proxy Statement for its 1999 Annual Meeting of Shareholders to be
filed within 120 days of Company's fiscal year end.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The Company hereby incorporates by reference the section captioned "Change
in Control Agreements" in the Company's definitive Proxy Statement for its 1999
Annual Meeting of Shareholders to be filed within 120 days of the Company's
fiscal year end.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

         (A) Those Exhibits required by Item 601 of Regulation S-B and by
         paragraph (a) of Item 13:

<TABLE>
<S>             <C>
        -3(a)   Restated Articles of Incorporation of the Company; incorporated
                by reference to the corresponding Exhibit to the Company's
                Registration Statement on Form S-1 of the Company, Registration
                No. 33-48332
</TABLE>


                                                                         Page 14


<PAGE>   15

<TABLE>
<S>             <C>
        -3(b)   Restated By-laws of the Company; incorporated by reference to
                the corresponding Exhibit to the Company's Registration
                Statement of Form S-1 of the Company, Registration No. 33-48332

        -4(a)   Specimen Common Stock Certificate; incorporated by reference to
                the corresponding Exhibit to the Company's Registration
                Statement on Form S-1 of the Company, Registration No. 33-48332

        -4(b)   Registration Rights Agreement, dated May 29, 1992, between the
                Company and Capital For Business, Inc.; incorporated by
                reference to the corresponding Exhibit to the Company's
                Registration Statement on Form S-1 of the Company, Registration
                No. 33-48332

        -4(c)   Form of Amendment to Registration Rights Agreement, dated
                October 23, 1992, between the Company and Capital For Business,
                Inc.; incorporated by reference to Exhibit 4(n) to the Quarterly
                Report on Form 10-Q for the quarter ended September 30, 1992,
                dated November 13, 1992, as filed by the Company with the
                Commission.

        -10(a)  First Amended Incentive Stock Option Plan; incorporated by
                reference to the corresponding Exhibit to the Company's
                Registration Statement on Form S-1 of the Company, Registration
                No. 33-48332

        -10(b)  Resolution Amending the First Amended Incentive Stock Option
                Plan; incorporated by reference to the corresponding Exhibit to
                the Company's Registration Statement on Form S-1 of the Company,
                Registration No. 33-48332

        -10(c)  Amendment to First Amended Incentive Stock Option Plan;
                incorporated by reference to the corresponding Exhibit to the
                Company's Registration Statement on Form S-1 of the Company,
                Registration No. 33-48332

        -10(d)  1992 Employee Incentive Stock Option Plan; incorporated by
                reference to the corresponding Exhibit to the
</TABLE>

                                                                         Page 15


<PAGE>   16

<TABLE>
<S>             <C>
                Company's Registration Statement on Form S-1 of the Company,
                Registration No. 33-48332

        -13(a)  1999 Annual Report to Shareholders

        -21     List of Subsidiaries of the Registrant

        -23(a)  Consent of PricewaterhouseCoopers LLP

        -23(b)  Report of PricewaterhouseCoopers LLP on Financial Statement
                Schedule

        -27     Financial Data Schedule
</TABLE>


        (B) REPORTS ON FORM 8-K.

             None.


                                                                         Page 16


<PAGE>   17


                                   SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) 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.

                                           CITATION Computer Systems, Inc.


                                           By      /s/ J. Robert Copper
                                               ---------------------------------
                                               J. Robert Copper, Chairman
                                               and Chief Executive Officer


                                           June 25, 1999


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Registrant and in the
capacities and on the dates indicated.


    /s/ J. Robert Copper                        /s/ Fred L. Brown
------------------------------------       -------------------------------------
J. Robert Copper, June 25, 1999            Fred L. Brown, June 25, 1999
Director, Chairman and Chief               Director
Executive Officer


    /s/ Larry D. Marcus                         /s/ James F. O'Donnell
------------------------------------       -------------------------------------
Larry D. Marcus, June 25, 1999             James F. O'Donnell, June 25, 1999
Director                                   Director


    /s/ David T. Pieroni                        /s/ Richard D. Neece
------------------------------------       -------------------------------------
David T. Pieroni, June 25, 1999            Richard D. Neece, June 25, 1999
Director                                   President and Principal Financial
                                           Officer


                                                /s/ John P. Gilmore
                                           -------------------------------------
                                           John P. Gilmore, June 25, 1999
                                           Vice President, Controller, Treasurer
                                           and Principal Accounting Officer


                                                                         Page 17


<PAGE>   18


               INDEX TO FINANCIAL STATEMENT SCHEDULES AND EXHIBITS

<TABLE>
<CAPTION>
SCHEDULE
NUMBER              SCHEDULE
------              --------
<S>                 <C>
VIII                Valuation and Qualifying Accounts
</TABLE>


<TABLE>
<CAPTION>
EXHIBIT
NUMBER              EXHIBIT
------              -------
<S>                 <C>
3(a)                Restated Articles of Incorporation of the Company;
                    incorporated by reference to the corresponding Exhibit to
                    the Company's Registration Statement on Form S-1 of the
                    Company, Registration No. 33-48332

3(b)                Restated By-laws of the Company; incorporated by reference
                    to the corresponding Exhibit to the Company's Registration
                    Statement of Form S-1 of the Company, Registration No.
                    33-48332

4(a)                Specimen Common Stock Certificate; incorporated by reference
                    to the corresponding Exhibit to the Company's Registration
                    Statement on Form S-1 of the Company, Registration No.
                    33-48332

4(b)                Registration Rights Agreement, dated May 29, 1992, between
                    the Company and Capital For Business, Inc.; incorporated by
                    reference to the corresponding Exhibit to the Company's
                    Registration Statement on Form S-1 of the Company,
                    Registration No. 33-48332

4(c)                Form of Amendment to Registration Rights Agreement, dated
                    October 23, 1992, between Company and Capital For Business,
                    Inc.; incorporated by reference to Exhibit 4(n) to the
                    Quarterly Report on Form 10-Q for the quarter ended
                    September 30, 1992, dated November 13, 1992, as filed by the
                    Company with the Commission.
</TABLE>


                                                                         Page 18


<PAGE>   19




<TABLE>
<CAPTION>
EXHIBIT
NUMBER              EXHIBIT
------              -------
<S>                 <C>
10(a)               First Amended Incentive Stock Option Plan; incorporated by
                    reference to the corresponding Exhibit to the Company's
                    Registration Statement on Form S-1 of the Company,
                    Registration No. 33-48332

10(b)               Resolution Amending the First Amended Incentive Stock Option
                    Plan; incorporated by reference to the corresponding Exhibit
                    to the Company's Registration Statement on Form S-1 of the
                    Company, Registration No. 33-48332

10(c)               Amendment to First Amended Incentive Stock Option Plan;
                    incorporated by reference to the corresponding Exhibit to
                    the Company's Registration Statement on Form S-1 of the
                    Company, Registration No. 33-48332

10(d)               1992 Employee Incentive Stock Option Plan; incorporated by
                    reference to the corresponding Exhibit to the Company's
                    Registration Statement on Form S-1 of the Company,
                    Registration No. 33-48332
</TABLE>



                                                                         Page 19


<PAGE>   20

<TABLE>
<CAPTION>
EXHIBIT
NUMBER              EXHIBIT
------              -------
<S>                 <C>
13(a)               1999 Annual Report to Shareholders

21                  List of Subsidiaries of the Registrant

23(a)               Consent of PricewaterhouseCoopers LLP

23(b)               Report of PricewaterhouseCoopers LLP on Financial Statement
                    Schedule

27                  Financial Data Schedule
</TABLE>



                                                                         Page 20