<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) of the
                         Securities Exchange Act of 1934

                For the quarterly period ended September 30, 1999

                         Commission File Number 0-19841

                               i-STAT Corporation
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                                        <C>
         Delaware                                                          22-2542664
         (State or other jurisdiction of                                   (I.R.S. employer
         incorporation or organization)                                    Identification No.)

         104 Windsor Center Drive, East Windsor, NJ                        08520
         (Address of Principal Executive Offices)                          (Zip Code)
</TABLE>



                                 (609) 443-9300
              (Registrant's telephone number, including area code)


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



                  Yes                                  No

                  /X/                                  / /

           The number of shares outstanding of each of the Issuer's classes of
           common stock as of the latest practicable date.

<TABLE>
<CAPTION>
                  Class                                                             November 5, 1999
                  -----                                                             ----------------
<S>                                                                                 <C>
                  Common Stock, $ .15 par value                                     15,711,492
</TABLE>
<PAGE>   2
                               i-STAT CORPORATION

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               PAGE
                                                                                              NUMBER
                                                                                              ------
<S>                                                                                           <C>
PART I     FINANCIAL INFORMATION

           Item 1 - Financial Statements

           Consolidated Condensed Statements of Operations
               for the three months and nine months ended September 30, 1999 and 1998...           3

           Consolidated Condensed Balance Sheets
              as of September 30, 1999 and December 31, 1998............................           4

           Consolidated Condensed Statements of Cash Flows for the nine
              months ended September 30, 1999 and 1998..................................           5

           Notes to Consolidated Condensed Financial Statements.........................       6 - 8

           Item 2 - Management's Discussion and Analysis of Financial
                      Condition and Results of Operations...............................       9 - 15



PART II    OTHER INFORMATION

           Item 1 - Legal Proceedings...................................................          16

           Item 6 - Exhibits and Reports on Form 8-K....................................          17



SIGNATURES .............................................................................          18
</TABLE>


                                        2
<PAGE>   3
                               i-STAT CORPORATION
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

           (IN THOUSANDS OF DOLLARS, EXCEPT SHARE AND PER SHARE DATA)
                                   (unaudited)


<TABLE>
<CAPTION>
                                                  Three Months Ended                       Nine Months Ended
                                                     September 30,                           September 30,
                                           --------------------------------        --------------------------------
                                                1999                1998                1999               1998
                                           ------------        ------------        ------------        ------------
<S>                                        <C>                 <C>                 <C>                 <C>
Net revenues:
     Related party sales ...........       $      8,672        $        419        $     25,581        $      2,543

     Third party sales .............              2,153               8,849               5,806              25,965

     Other related party revenues ..                552                  --               1,753                  --
                                           ------------        ------------        ------------        ------------

         Total net revenues ........             11,377               9,268              33,140              28,508

Cost of sales ......................              8,015               7,079              26,520              23,200
                                           ------------        ------------        ------------        ------------

              Gross profit .........              3,362               2,189               6,620               5,308
                                           ------------        ------------        ------------        ------------

Operating expenses:

     Research and development ......              1,842               1,700               5,780               5,491

     General and administrative ....              1,391               1,605               6,053               5,304

     Consolidation of operations ...                  5                 262                  73                 991

     Sales and marketing ...........              1,960               3,552               6,347              10,054
                                           ------------        ------------        ------------        ------------

         Total operating expenses ..              5,198               7,119              18,253              21,840
                                           ------------        ------------        ------------        ------------

              Operating loss .......             (1,836)             (4,930)            (11,633)            (16,532)
                                           ------------        ------------        ------------        ------------

Other income (expense), net ........                358                 378               1,172               1,132
                                           ------------        ------------        ------------        ------------

Net loss ...........................            ($1,478)            ($4,552)           ($10,461)           ($15,400)
                                           ============        ============        ============        ============

Basic and diluted net loss per share             ($0.08)            ($0.28)              ($0.60)             ($0.99)
                                           ============        ============        ============        ============

Shares used in computing basic and
     diluted net loss per share ....         17,566,063          16,051,784          17,519,352          15,592,304
                                           ============        ============        ============        ============
</TABLE>


The accompanying notes are an integral part of these consolidated condensed
financial statements.


                                       3
<PAGE>   4
                               i-STAT CORPORATION
                      CONSOLIDATED CONDENSED BALANCE SHEETS

           (IN THOUSANDS OF DOLLARS, EXCEPT SHARE AND PER SHARE DATA)
                                   (unaudited)



<TABLE>
<CAPTION>
                                                                            September 30,     December 31,
                                                                                1999             1998
                                                                              ---------        ---------
<S>                                                                         <C>               <C>
         ASSETS
Current assets:
     Cash and cash equivalents ........................................       $  24,855        $  38,390
     Accounts receivable, net .........................................             901            2,849
     Accounts receivable from related parties .........................           6,129            2,843
     Inventories ......................................................           9,227            8,296
     Prepaid expenses and other current assets ........................             937            1,473
                                                                              ---------        ---------
         Total current assets .........................................          42,049           53,851
Plant and equipment, net of accumulated depreciation of
     $23,689 and $19,721 ..............................................          15,880           13,336
Other assets ..........................................................           1,881            1,719
                                                                              ---------        ---------
         Total assets .................................................       $  59,810        $  68,906
                                                                              =========        =========

         LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Accounts payable .................................................       $   1,869        $   2,684
     Accrued expenses .................................................           4,341            6,003
     Deferred revenue, current (inclusive of related party deferred
         revenue of $2,246 and $407) ..................................           2,271              559
                                                                              ---------        ---------
         Total current liabilities ....................................           8,481            9,246
                                                                              ---------        ---------
     Deferred revenue from related party, non-current .................           5,192            5,000
                                                                              ---------        ---------
         Total liabilities ............................................          13,673           14,246
                                                                              ---------        ---------
Stockholders' equity:
     Preferred Stock, $.10 par value, shares authorized 7,000,000:
         Series A Junior Participating Preferred Stock, $.10 par value,
         1,500,000 shares authorized; none issued .....................              --               --
         Series B Preferred Stock, $.10 par value,
         2,138,702 shares authorized, issued and outstanding ..........             214              214
     Common Stock, $.15 par value, shares authorized 25,000,000:
         shares issued and outstanding 15,702,592 at September 30,
         1999 and 15,308,995 at December 31, 1998 .....................           2,355            2,296
     Additional paid-in capital .......................................         234,000          230,328
     Unearned compensation ............................................          (1,778)            (169)
     Loan to officer, net .............................................            (716)              --
     Accumulated deficit ..............................................        (187,129)        (176,668)
     Accumulated other comprehensive loss related to
         foreign currency translation .................................            (809)          (1,341)
                                                                              ---------        ---------
         Total stockholders' equity ...................................          46,137           54,660
                                                                              ---------        ---------
         Total liabilities and stockholders' equity ...................       $  59,810        $  68,906
                                                                              =========        =========
</TABLE>

The accompanying notes are an integral part of these consolidated condensed
financial statements.


                                       4
<PAGE>   5
                               i-STAT CORPORATION
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

                            (IN THOUSANDS OF DOLLARS)
                                   (unaudited)



<TABLE>
<CAPTION>
                                                                             Nine Months Ended
                                                                               September 30,
                                                                           1999            1998
                                                                         --------        --------
<S>                                                                      <C>             <C>
Cash flows from operating activities:
   Net loss ......................................................       ($10,461)       ($15,400)
   Adjustments to reconcile net loss to net cash used in operating
      activities .................................................          2,778           3,239
   Change in assets and liabilities ..............................            136           6,540
                                                                         --------        --------
      Net cash used in operating activities ......................         (7,547)         (5,621)
                                                                         --------        --------
Cash flows from investing activities:
   Purchase of equipment .........................................         (5,335)         (4,799)
   Other .........................................................           (210)           (170)
                                                                         --------        --------
      Net cash used in investing activities ......................         (5,545)         (4,969)
                                                                         --------        --------

Cash flows from financing activities:
   Proceeds from issuance of Common Stock ........................            338             325
   Loan to officer ...............................................           (716)             --
   Net proceeds from private placement of common stock ...........             --          20,701
                                                                         --------        --------
      Net cash provided by (used in) financing activities ........           (378)         21,026
                                                                         --------        --------
Effect of currency exchange rate changes on cash .................            (65)            (28)
                                                                         --------        --------
Net decrease in cash and cash equivalents ........................        (13,535)        (10,408)
Cash and cash equivalents at beginning of period .................         38,390          32,914
                                                                         --------        --------
Cash and cash equivalents at end of period .......................       $ 24,855        $ 43,322
                                                                         ========        ========
</TABLE>

The accompanying notes are an integral part of these consolidated condensed
financial statements.


                                       5
<PAGE>   6
                               i-STAT CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

                                   (unaudited)

1.   GENERAL


     Basis of Presentation

     The information presented as of September 30, 1999 and 1998, and for the
     periods then ended, is unaudited, but includes all adjustments (consisting
     only of normal recurring accruals) which the management of i-STAT
     Corporation (the "Company") believes to be necessary for the fair
     presentation of results for the periods presented. The results for the
     interim periods are not necessarily indicative of results to be expected
     for the year. The year end consolidated condensed balance sheet data was
     derived from the audited financial statements, but does not include all
     disclosures required by generally accepted accounting principles. These
     condensed financial statements should be read in conjunction with the
     Company's audited financial statements for the year ended December 31,
     1998, including the Notes thereto, which were included as part of the
     Company's Annual Report on Form 10-K, File No. 0-19841.


     Basic and Diluted Loss per Share

     Basic and diluted net loss per share is calculated using the weighted
     average number of common shares and preferred shares outstanding for all
     periods presented. Preferred shares have been included in the calculations
     since their date of issuance as they are convertible into common shares on
     a 1:1 basis and have substantially the same characteristics as common
     stock. Basic EPS excludes dilution and is computed by dividing income
     available to common stockholders by the weighted-average number of common
     shares outstanding for the period. Diluted EPS reflects the potential
     dilution that could occur if securities or other contracts to issue common
     stock were exercised or converted into common stock or resulted in the
     issuance of common stock that then shared in the earnings of the entity.
     The Company has not included potential common shares in the diluted
     per-share computation as the result is antidilutive.

     Options to purchase 2,955,712 shares of common stock at $1.50 - $32.58 per
     share, which expire on various dates from February 2000 to August 2009,
     were outstanding at September 30, 1999. These shares were not included in
     the computation of diluted EPS because the effect would be antidilutive
     due to the net loss.

     Comprehensive Income

<TABLE>
<CAPTION>
                                                Three Months Ended              Nine Months Ended
                                                   September 30,                  September 30,
                                                1999           1998           1999            1998
                                                ----           ----           ----            ----
                                                            (In thousands of dollars)
     <S>                                      <C>            <C>            <C>             <C>
     Net loss .........................       ($1,478)       ($4,552)       ($10,461)       ($15,400)
     Other comprehensive income (loss):
         Foreign currency translation .           105              2             532             (10)
                                              -------        -------        --------        --------
     Comprehensive loss ...............       ($1,373)       ($4,550)       ($ 9,929)       ($15,410)
                                              =======        =======        ========        ========
</TABLE>

     Recently Issued Accounting Pronouncements:

     In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
     Instruments and Hedging Activities". SFAS No. 133 is effective for all
     fiscal quarters of all fiscal years beginning after June 15, 2000
     (January 1, 2001 for the Company). SFAS No. 133 requires that all
     derivative instruments be recorded on the balance sheet at their fair
     value. Changes in the fair value of derivatives are recorded each period in
     current earnings or other comprehensive income depending on whether a
     derivative is designated as part of a hedge transaction and, if it is, the
     type of hedge transaction. The Company presently does not have any
     derivative instruments or hedging activities and, consequently, SFAS No.
     133 is not expected to have a material impact on the Company's results of
     operations, financial position or cash flow.

     Reclassification:

     Certain reclassifications have been made to 1998 amounts to conform them
     to the 1999 presentation


                                       6
<PAGE>   7
                               i-STAT CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

                                   (unaudited)

                                   (continued)


2.   INVENTORIES

     Inventories consist of the following:


<TABLE>
<CAPTION>
                                    September 30, 1999       December 31, 1998
                                    ------------------       -----------------
                                            (In thousands of dollars)

     <S>                                  <C>                   <C>
     Raw materials                         $3,535                $2,537
     Work in process                        3,223                 3,206
     Finished goods                         2,469                 2,553
                                            -----                 -----
                                           $9,227                $8,296
                                            ======                ======
</TABLE>

3.   COMMITMENTS AND CONTINGENCIES

     The Company is a defendant in a case entitled Nova Biomedical Corporation,
     Plaintiff v. i-STAT Corporation, Defendant. The Complaint, which was filed
     in the United States District Court for the District of Massachusetts on
     June 27, 1995, alleges infringement by i-STAT of Nova's U.S. Patent No.
     4,686,479. In February 1998, the Court entered summary judgment in
     favor of the Company on the issue of patent infringement, finding that the
     Company did not infringe, either literally or under the patent law
     "doctrine of equivalents", Nova's patent. The plaintiff appealed, and in
     September, 1999 the Federal Circuit Court affirmed the District Court's
     decision on literal infringement, but reversed the District Court on the
     "doctrine of equivalents", ruling that this was a matter for a jury to
     decide. The Company has asked the Circuit Court to reconsider this portion
     of its decision and is awaiting a decision on its petition for
     reconsideration. If the plaintiff should prevail on this issue, a prospect
     which the Company believes to be unlikely, it could have a material impact
     on the financial position, results of operations and cash flows of the
     Company.

     The Company is a defendant in a class action complaint entitled Susan
     Kaufman, on behalf of herself and all others similarly situated,
     Plaintiff, v. i-STAT Corporation, William P. Moffitt, Lionel M.
     Sterling, Imants R. Lauks and Matthias Plum, Jr. The class action was
     brought by Susan Kaufman on her behalf and on behalf of all purchasers of
     the Company's Common Stock between May 9, 1995 and March 19, 1996. The
     complaint, which was filed in the Superior Court of New Jersey in Mercer
     County on June 19, 1996, alleges New Jersey common law fraud and negligent
     misrepresentation, and is predicated on a "fraud on the market" theory in
     connection with certain sales of i-STAT stock by the Company's chief
     executive officer, chief technology officer and two outside directors
     during a nine-month period. The plaintiffs seek unspecified compensatory
     damages, interest and payment of all costs and expenses incurred in
     connection with the class action. The Company believes the complaint is
     without merit and, on April 28, 1998, the Court entered summary judgment
     in favor of all the defendants. Plaintiffs appealed and, on August 10,
     1999, the Appellate Division of the Superior Court filed an opinion
     sustaining the trial court's determination as to the negligent
     misrepresentation claims but reversing as to the common law fraud claims.
     The Court specifically stated that it expressed no opinion concerning the
     evidence required to satisfy the other elements of a common law action for
     securities fraud, the applicability of any defense, class certification or
     the appropriate scope of plaintiff class if there is certification. The
     Company has petitioned the New Jersey Supreme Court for discretionary
     review of this opinion, and is awaiting the decision of the Supreme Court
     whether or not such review will be forthcoming. Should the plaintiffs
     prevail in this matter, it could have a material impact on the financial
     position, results of operations and cash flows of the Company.

     The Company is a defendant in a case entitled Customedix Corporation,
     Plaintiff v. i-STAT Corporation, Defendant. The Complaint, which was filed
     in the United States District Court for the District of Connecticut on
     December 26, 1996, alleges infringement by i-STAT of Customedix's
     U.S. Patent No. 4,342,964. The Plaintiff seeks injunctive relief and an
     accounting for i-STAT's profits and the damages to Customedix from such
     alleged infringement. The Company intends to contest the case vigorously
     and does


                                       7
<PAGE>   8
                               i-STAT CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

                                   (unaudited)

                                   (continued)


     not believe that it has infringed the Customedix patent. The Company
     has obtained an opinion from recognized patent counsel to the effect that
     no infringement has occurred. The court has interpreted the Customedix
     patent in a way favorable to the Company and has denied Customedix's
     motion for reconsideration of that interpretation. The Company has moved
     for summary judgment of non-infringement and the court will schedule
     argument in due course. However, if the plaintiff should prevail in this
     matter, it could have a material impact on the financial position, results
     of operation and cash flows of the Company.


4.   RELATED PARTY TRANSACTIONS

     On January 4, 1999, the Company received from Abbott Laboratories
     ("Abbott") its second installment of prepayments for guaranteed future
     incremental cartridge sales (as defined in the Distribution Agreement with
     Abbott), in the amount of $4 million. This amount is carried on the
     consolidated condensed balance sheet as deferred revenue, current, net of
     amortization of such prepayment to income as incremental cartridge sales
     are generated.

     The Company generated $8,309,000 and $362,000 of net sales from Abbott and
     Hewlett-Packard Company ("HP"), respectively, for the three months ended
     September 30, 1999, and $23,525,000 and $2,056,000 of net sales from
     Abbott and HP, respectively, for the nine months ended September 30, 1999.
     Other related party revenues from Abbott include approximately $552,000
     and $1,753,000 for the three months and nine months ended September 30,
     1999, respectively, to fund certain research and development and marketing
     expenses. At September 30, 1999, the Company had $5,922,000 and $207,000
     of accounts receivable due from Abbott and HP, respectively. In addition,
     the Company had $2,246,000 and $407,000 of deferred revenue, current, and
     $5,192,000 and $5,000,000 of deferred revenue, non-current, from Abbott at
     September 30, 1999, respectively, and December 31, 1998, respectively.


5.   RESTRICTED STOCK

     On February 5, 1999, the board of directors awarded 310,000 shares of
     restricted Common Stock to four executive officers of the Company. The
     restricted Common Stock had a fair value at the date of grant of
     approximately $2,751,250. One executive officer was awarded 250,000 shares
     of restricted Common Stock, 50,000 shares of which immediately vested on
     February 5, 1999, and the remaining 200,000 shares cliff vest on February
     5, 2002. The 60,000 shares awarded to the other three executive officers
     vest over a three year period.

     In connection with the award of 250,000 shares to one executive officer,
     on June 30, 1999, the Company loaned the executive officer approximately
     $716,000 to pay withholding taxes. The promissory note for the withholding
     tax amount carries an interest rate of 5.37%, payable annually, and
     the principal amount of the loan is repayable three years from the date of
     the execution of a second promissory note for the remaining taxes which
     are expected to be loaned in the second quarter of 2000. One third of the
     principal amount of these loans will be forgiven on each anniversary date
     of the loan for the remaining taxes if the executive officer remains in
     the employment of the Company. The Company will also make a "tax gross-up"
     payment to the executive officer in connection with any taxes that may be
     due as result of the forgiveness of these loans.

     Compensation expense in the amount of approximately $288,000 and
     $1,090,000 was recorded in connection with this award, and the reserve for
     the forgiveness of loans and the associated tax gross-up payment
     during the three months and nine months ended September 30, 1999,
     respectively.


                                       8
<PAGE>   9
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


GENERAL

           The Company was incorporated in Delaware in 1983 and develops,
manufactures and markets medical diagnostic products for blood analysis that
provide health care professionals with immediate and accurate critical,
diagnostic information at the point of patient care. The Company's current
products, known as the i-STAT(R) System, consist of portable, hand-held
analyzers and single-use disposable cartridges, each of which simultaneously
performs different combinations of commonly ordered blood tests in approximately
two minutes. The i-STAT System also includes peripheral components that enable
the results of tests to be transmitted by infrared means to both a proprietary
information system for managing the user's point-of-care testing program and to
the user's information systems for billing and archiving.

           The i-STAT System currently performs blood tests for sodium,
potassium, chloride, glucose, creatinine, urea nitrogen, hematocrit, ionized
calcium, arterial blood gases, bicarbonate, and lactate, and to derive certain
other values, such as total carbon dioxide, base excess, anion gap, hemoglobin
and O2 saturation, by calculation from the tests performed. The Company
continues to engage in research and development in order to improve its
existing products and develop new products based on the i-STAT System
technology. The Company currently is developing three tests for the measurement
of coagulation: partial thromboplastin time ("aPTT"), activated clotting time
("ACT") and prothombin time ("PT"). The Company has submitted a Pre-Market
Notification  to the U.S. Food and Drug Administration (the "FDA") in
connection with the ACT test.  The FDA has requested additional information,
and the Company is complying with this request.  The Company's ability to
commercialize its ACT test is subject to FDA clearance and, while the Company
believes that it can meet all of the requirements of the FDA in the near term,
there can be no assurance with respect to the timing of FDA clearance of any
product.  The Company is also studying the development of cardiac marker tests.
The Company also is in the process of developing an analyzer and associated
peripheral equipment which, in addition to having the measurement capabilities
currently possessed by the i-STAT System, will incorporate the glucose
measurement capabilities of an Abbott Laboratories ("Abbott") product.

           Prior to November 1, 1998, the Company marketed and distributed its
products in the United States and Canada principally through its own direct
sales and marketing organization, in Japan through a Japanese marketing partner,
Fuso, Inc. ("Fuso"), in Europe through Hewlett-Packard Company ("HP") and in
Mexico, South America, China, Australia, and certain other Asian and Pacific Rim
countries, through selected distribution channels. On September 2, 1998, the
Company entered into a long-term sales, marketing and research alliance with
Abbott which, among other things, has altered significantly the manner in which
the Company markets and sells its products worldwide. The majority of the
Company's revenues are now derived from Abbott. Please see "Long-Term Sales and
Marketing Alliance with Abbott Laboratories" under Item 7 of the Company's
Annual Report on Form 10-K for the year ended December 31, 1998, for a
description of the Company's agreements with Abbott. Copies of such agreements
were filed with the Commission as exhibits to the Company's Quarterly Report on
Form 10-Q for the quarterly period ended June 30, 1998.

RESULTS OF OPERATIONS


          THREE MONTHS ENDED SEPTEMBER 30, 1999

           The Company generated revenues of approximately $11.4 million and
$9.3 million for the three months ended September 30, 1999 and 1998,
respectively, including international revenues (as a percentage of total
revenues) of $3.0 million (26.1%) and $1.9 million (20.6%), respectively.
Abbott, HP and Fuso accounted for 90.3% of the Company's revenues for the three
months ended September 30, 1999. Revenues from Abbott represented approximately
77.9% and 0% of the Company's worldwide revenues for the three months ended
September 30, 1999 and 1998, respectively. Revenues from HP represented
approximately 3.2% and 4.5% of the Company's worldwide revenues for the three
months ended September 30, 1999 and 1998, respectively. Sales to Fuso
represented approximately 9.2% and 10.7% of the Company's worldwide revenues for
the three months ended September 30, 1999 and 1998, respectively.

           The $2.1 million (22.8%) increase in revenues from the 1998
comparable quarter was primarily due to increased shipment volume of the
Company's cartridges, reflecting higher cartridge consumption by existing
hospital



                                        9
<PAGE>   10
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (continued)

customers and the addition of new hospital customers in the U.S. and
internationally. Worldwide cartridge shipments increased 38.1% to 1,983,665
units in the three months ended September 30, 1999, from 1,436,675 units in the
three months ended September 30, 1998. Revenues from the increased cartridge
shipments were partially offset by lower worldwide average selling prices per
cartridge, which declined from approximately $4.65 to $3.79 per cartridge in the
same periods. Cartridge average selling prices are expected to continue to
decline because of the product transfer pricing arrangements between the Company
and Abbott. The increase in revenues in the 1999 third quarter also includes
approximately $552,000 from Abbott (the "Third Quarter Abbott Reimbursement") to
fund certain research and development and marketing expenses.

           Gross profit (as a percentage of sales) increased by approximately
$1.2 million to $3.4 million (29.6%) in the quarter ended September 30, 1999,
compared with a gross profit of $2.2 million (23.6%) in the quarter ended
September 30, 1998. The improvement in gross profit was primarily due to
increased production volume of the Company's cartridges, which caused fixed
manufacturing costs to be spread over a larger number of product units, to the
Third Quarter Abbott Reimbursement, and to improvements in cartridge production
yields. Gross profit in the third quarter 1999 also was positively impacted by
the need to rebuild inventory losses incurred primarily during the second
quarter 1999, which arose out of a manufacturing process problem with the
Company's oxygen sensor. The increase in gross profit was partially offset by
lower average selling prices per cartridge and lower average selling prices for
analyzers, in each case because of the transfer pricing arrangements between the
Company and Abbott.

           The Company incurred research and development costs (as a percentage
of sales) of approximately $1.8 million (16.2%) and $1.7 million (18.3%) for
the three months ended September 30, 1999 and 1998, respectively, consisting of
costs associated with the personnel, material, equipment and facilities
necessary for conducting new product development. The Company's current
research and development program includes the development of tests for
coagulation. The Company also is studying the development of cardiac marker
tests.  The Company also is in the process of developing an analyzer and
associated peripheral equipment which, in addition to having the measurement
capabilities currently possessed by the i-STAT System, will incorporate the
glucose measurement capabilities of an Abbott product. Some portion of the
Company's future research and development expenses may be funded by Abbott, and
revenues and gross profit in the three months ended September 30, 1999, include
approximately $0.4 million of such funding.

           The Company incurred general and administrative expenses (as a
percentage of sales) of approximately $1.4 million (12.2%) and $1.6 million
(17.3%) for the three months ended September 30, 1999 and 1998, respectively.
General and administrative expenses consisted primarily of salaries and benefits
of personnel, office costs, professional fees and other costs necessary to
support the Company's infrastructure.

           The Company incurred consolidation of operations expenses of
approximately $5,000 and $262,000 for the three months ended September 30, 1999
and 1998, respectively, in connection with the relocation of the Company's
cartridge assembly operations from Plainsboro, New Jersey, to its manufacturing
facility in Ontario, Canada.

           The Company incurred sales and marketing expenses (as a percentage of
sales) of approximately $2.0 million (17.2%) and $3.6 million (38.3%) for the
three months ended September 30, 1999 and 1998, respectively, consisting
primarily of salaries, benefits, travel, and other expenditures for sales
representatives, implementation coordinators, international marketing support,
order entry, distribution, technical services, product literature, market
research, clinical studies and other sales infrastructure costs. A portion of
the costs of the implementation coordinators is reimbursed by Abbott, and
revenues and gross profit in the three months ended September 30, 1999, include
approximately $0.1 million of such reimbursement. The dollar decrease from
period to period is primarily attributable to the reduction in field sales and
sales management personnel following the assumption by Abbott of principal
responsibility for the marketing and sales of the i-STAT System.

           Other income, net, of approximately $0.4 million and $0.4 million for
the three months ended September 30, 1999 and September 30, 1998, respectively,
primarily reflects interest income earned on cash and cash equivalents balances.



                                       10
<PAGE>   11
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                   (continued)

           Net loss for the three months ended September 30, 1999 decreased
67.5% to approximately $1.5 million, or 8 cents per share, compared with a net
loss of approximately $4.6 million, or 28 cents per share, for the third quarter
of 1998. The weighted average number of shares used in computing basic and
diluted net loss per share was approximately 17.566 million and 16.052 million
in the 1999 and 1998 periods, respectively.


          NINE MONTHS ENDED SEPTEMBER 30, 1999

           The Company generated revenues of approximately $33.1 million and
$28.5 million for the nine months ended September 30, 1999 and 1998,
respectively, including international revenues (as a percentage of total
revenues) of $8.1 million (24.5%) and $7.5 million (26.3%), respectively.
Abbott, HP and Fuso accounted for 91.1% of the Company's revenues for the nine
months ended September 30, 1999. Revenues from Abbott represented approximately
76.3% and 0% of the Company's worldwide revenues for the nine months ended
September 30, 1999 and 1998, respectively. Revenues from HP represented
approximately 6.2% and 8.9% of the Company's worldwide revenues for the nine
months ended September 30, 1999 and 1998, respectively. Sales to Fuso
represented approximately 8.7% and 10.8% of the Company's worldwide sales for
the nine months ended September 30, 1999 and 1998, respectively.

           The $4.6 million (16.2%) increase in revenues from the 1998
comparable period was primarily due to increased shipment volume of the
Company's cartridges, reflecting higher cartridge consumption by existing
hospital customers and the addition of new hospital customers in the U.S. and
internationally. Worldwide cartridge shipments increased 29.8% to 5,638,615
units in the nine months ended September 30, 1999, from 4,342,550 units in the
nine months ended September 30, 1998. Revenues from the increased cartridge
shipments were partially offset by lower worldwide average selling prices per
cartridge, which declined from approximately $4.73 to $4.00 per cartridge in the
same periods. Cartridge average selling prices are expected to continue to
decline because of the product transfer pricing arrangements between the Company
and Abbott. The increase in revenues in the 1999 period also includes
approximately $1,753,000 from Abbott (the "YTD Abbott Reimbursements") to fund
certain research and development and marketing expenses.

           Gross profit (as a percentage of sales) increased by approximately
$1.3 million to $6.6 million (20.0%) in the nine months ended September 30,
1999, compared with a gross profit of $5.3 million (18.6%) in the nine months
ended September 30, 1998. The improvement in gross profit was primarily due to
increased production volume of the Company's cartridges, which caused fixed
manufacturing costs to be spread over a larger number of product units, to the
YTD Abbott Reimbursements, and to improvements in production yields experienced
during the third quarter. The increase in gross profit was partially offset by
lower average selling prices per cartridge and lower average selling prices for
analyzers, in each case because of the transfer pricing arrangements between the
Company and Abbott. Additionally, the increase in gross profit was also
partially offset by a charge of approximately $2.1 million resulting from the
inventory losses and accompanying product recall arising out of the
manufacturing process problem with the Company's oxygen sensor during the second
quarter 1999.

           The Company incurred research and development costs (as a percentage
of sales) of approximately $5.8 million (17.4%) and $5.5 million (19.3%) for
the nine months ended September 30, 1999 and 1998, respectively, consisting of
costs associated with the personnel, material, equipment and facilities
necessary for conducting new product development. The Company's current
research and development program includes the development of tests for
coagulation. The Company also is studying the development of cardiac marker
tests.  The Company also is in the process of developing an analyzer and
associated peripheral equipment which, in addition to having the measurement
capabilities currently possessed by the i-STAT System, will incorporate the
glucose measurement capabilities of an Abbott product. Some portion of the
Company's future research and development expenses may be funded by Abbott, and
revenues and gross profit in the nine months ended September 30, 1999, include
approximately $1.3 million of such funding.

           The Company incurred general and administrative expenses (as a
percentage of sales) of approximately $6.1 million (18.3%) and $5.3 million
(18.6%) for the nine months ended September 30, 1999 and 1998, respectively.
General and administrative expenses consisted primarily of salaries and benefits
of personnel, office costs, professional fees and other costs necessary to
support the Company's infrastructure. The dollar increase from year to



                                       11
<PAGE>   12
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                   (continued)


year is primarily attributable to fees for special consulting services to assist
in the development of manufacturing strategies and capacity plans, and to
identify business development opportunities, and a non-cash compensation expense
associated with grants to employees of 310,000 restricted shares of Common Stock
in the nine months ended September 30, 1999.

           The Company incurred consolidation of operations expenses of
approximately $73,000 and $991,000 for the nine months ended September 30, 1999
and 1998, respectively, in connection with the relocation of the Company's
cartridge assembly operations from Plainsboro, New Jersey, to its manufacturing
facility in Ontario, Canada.

           The Company incurred sales and marketing expenses (as a percentage of
sales) of approximately $6.3 million (19.1%) and $10.1 million (35.3%) for the
nine months ended September 30, 1999 and 1998, respectively, consisting
primarily of salaries, benefits, travel, and other expenditures for sales
representatives, implementation coordinators, international marketing support,
order entry, distribution, technical services, product literature, market
research, clinical studies and other sales infrastructure costs. A portion of
the costs of the implementation coordinators is reimbursed by Abbott, and
revenues and gross profit in the nine months ended September 30, 1999, include
approximately $0.5 million of such reimbursement. The dollar decrease from
period to period is primarily attributable to the reduction in field sales and
sales management personnel following the assumption by Abbott of principal
responsibility for the marketing and sales of the i-STAT System.

           Other income, net, of approximately $1.2 million and $1.1 million for
the nine months ended September 30, 1999 and September 30, 1998, respectively,
primarily reflects interest income earned on cash and cash equivalents balances.

           Net loss for the nine months ended September 30, 1999 decreased 32.1%
to approximately $10.5 million, or 60 cents per share, compared with a net loss
of approximately $15.4 million, or 99 cents per share, for the nine months ended
September 30, 1998. The weighted average number of shares used in computing
basic and diluted net loss per share was approximately 17.519 million and 15.592
million in the 1999 and 1998 periods, respectively. The increase in the number
of shares from June 1998 primarily reflects the issuance of 2 million shares of
Common Stock to Abbott in September 1998.


LIQUIDITY AND CAPITAL RESOURCES

           At September 30, 1999, the Company had cash and cash equivalents of
approximately $24.9 million, a decline of approximately $13.5 million from the
December 31, 1998 balance of approximately $38.4 million. The decrease primarily
reflects approximately $7.5 million of cash used in operating activities and
equipment purchases of approximately $5.3 million during the nine months ended
September 30, 1999. Working capital decreased by approximately $11.0 million
from $44.6 million to $33.6 million during the same period, primarily reflecting
the decrease in cash and cash equivalents. Changes in working capital during the
nine months ended September 30, 1999, also reflect a reduction of approximately
$1.7 million in accrued expenses which primarily reflects the payment of accrued
1998 sales commissions and management bonuses, and the payment of accrued
retention bonuses, severance payments and vacation pay in connection with both a
reduction in sales force following assumption by Abbott of principal
responsibility for marketing and sales, and the consolidation of cartridge
assembly operations in the Company's manufacturing facility in Ontario, Canada.
Changes in working capital also include an increase of approximately $1.7
million in deferred revenue, which reflects the receipt of $4.0 million from
Abbott in January 1999, representing the second installment of prepayments for
guaranteed future incremental cartridge sales, partially offset by (i) the
amortization of such prepayments to income as incremental cartridge sales (as
defined in the Distribution Agreement with Abbott) are generated, (ii) the
amortization to income of approximately $0.4 million of deferred research and
development reimbursements from Abbott and (iii) the amortization of deferred
service contract revenues. The Company expects its existing funds from
operations to continue to decline until its revenues are



                                       12
<PAGE>   13
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                   (continued)

sufficient to support its growth, but, together with $16 million in payments due
from Abbott in respect of guaranteed future incremental cartridge sales, to be
sufficient to meet its obligations and its liquidity and capital requirements
for the near term. The Company regularly monitors capital raising alternatives
in order to take advantage of opportunities to supplement its current working
capital upon favorable terms, including joint ventures, strategic corporate
partnerships or other alliances and the sale of equity and/or debt securities.
The Company's need, if any, to raise additional funds to meet its working
capital and capital requirements will depend upon numerous factors, including
the results of Abbott's marketing and sales activities, the Company's new
product development efforts, manufacturing efficiencies and competitive
conditions.

           The impact of inflation on the Company's business has been minimal
and is expected to be minimal for the near-term.




                                       13
<PAGE>   14
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                   (continued)



IMPACT OF YEAR 2000

           The "Year 2000" or "Y2K" issue is the result of computer programs
being written using two digits rather than four to define the applicable year.
Any of the Company's computer programs that have time-sensitive software may
recognize a date using "00" as the year 1900 rather than the year 2000. This
could result in a system failure or miscalculations causing disruptions of
operations, including, among other things, a temporary inability to process
transactions, send invoices, or engage in similar normal business activities.

           The Company has identified its Year 2000 risks in five categories:
internal business operations software, internal manufacturing control software,
software used in computer controlled manufacturing equipment, software used in
computer-controlled products and external noncompliance by suppliers and
customers.

           INTERNAL BUSINESS OPERATIONS SOFTWARE: The Company runs its financial
and inventory operations using a commercially available package supplied by QAD
Inc. running on a UNIX operating system supplied by HP. The Company's computer
networks are controlled by software provided by Microsoft Corporation and
Novell(R) Inc., and applications used for miscellaneous business operations are
supplied by Microsoft Corporation. All the above mentioned products are
certified Year 2000 compliant by these vendors.

           INTERNAL MANUFACTURING CONTROL SOFTWARE: Certain manufacturing
operations are managed by internally developed software tools. Date handling
software operations in most of these tools utilize software routines that are
part of the software "platform" upon which these tools operate. These platforms,
primarily supplied by Microsoft, are certified Y2K compliant. The Company has
identified only a few exceptions but has determined these tools either to be
compliant or not significant to the production process.

           SOFTWARE USED IN COMPUTER CONTROLLED MANUFACTURING EQUIPMENT: The
Company has identified all pieces of computer controlled manufacturing equipment
used in production processes and determined that where date handling functions
are significant to the production process, the functions are Y2K compliant.

           SOFTWARE USED IN COMPUTER CONTROLLED PRODUCTS: Certain products made
by the Company have software components developed and maintained by the Company.
The Company has completed the software changes and testing necessary to certify
substantially all of these products as Y2K compliant. The Company regularly
distributes software updates for these products as part of its normal business
practices. To date, the cost of providing the updated, Y2K compliant software to
customers has been at no incremental cost to the Company.

           EXTERNAL NON COMPLIANCE BY SUPPLIERS AND CUSTOMERS: The Company is
engaged in the process of monitoring the Y2K program status of critical
suppliers. The Company has established appropriate contingency plans for
suppliers that are not able to supply sufficient certification. These
contingency plans may include establishing alternative suppliers and/or
accumulating inventory as appropriate. By the year 2000 the Company's revenues
are expected to be substantially derived from a few authorized distributors,
including Abbott and HP. The Company believes that these companies have adequate
Y2K compliance programs in place. Accordingly, it has no reason to believe that
additional operational risks are presented by the Company's relationship with
its most significant customers.

           The cost of the Company's activities related to the Year 2000 project
have not been, nor are expected to be, material. Where modifications have been
required they have been incremental additions to software upgrades driven by
other business needs. The principal Company resource allocated to the Y2K issue
has been, and is expected to be, management time. Such internal personnel costs
allocated to the Y2K issue are estimated to have been less than $150,000 through
December 31, 1998, and are expected to be less than $50,000 in 1999.



                                       14
<PAGE>   15
                               i-STAT CORPORATION
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                   (continued)


           Despite the Company's activities in regards to the Year 2000 issue,
there can be no assurance that Year 2000 problems will not result in an
interruption in, or failure of, certain normal business activities or operations
including customer ordering patterns, that may have a material adverse effect on
the Company's results of operations, liquidity or financial condition.


RECENT ACCOUNTING PRONOUNCEMENTS

           In June 1998, the FASB issued SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities". SFAS 133 is effective for all
fiscal quarters of all fiscal years beginning after June 15, 2000 (January 1,
2001 for the Company). SFAS 133 requires that all derivative instruments be
recorded on the balance sheet at their fair value. Changes in the fair value of
derivatives are recorded each period in current earnings or other comprehensive
income, depending on whether a derivative is designated as part of a hedge
transaction and, if it is, the type of hedge transaction. The Company presently
does not have any derivative instruments or hedging activities and consequently,
SFAS No. 133 is not expected to have a material impact on the Company's results
of operations, financial position or cash flows.


SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

           CERTAIN STATEMENTS IN THIS "MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS," RELATE TO FUTURE EVENTS AND
EXPECTATIONS AND AS SUCH CONSTITUTE "FORWARD-LOOKING STATEMENTS," WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THE WORDS
"BELIEVES," "ANTICIPATES," "PLANS," "EXPECTS," AND SIMILAR EXPRESSIONS ARE
INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS
INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, AND OTHER FACTORS WHICH MAY
CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE
MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS AND TO VARY
SIGNIFICANTLY FROM REPORTING PERIOD TO REPORTING PERIOD. SUCH FACTORS INCLUDE,
AMONG OTHERS, COMPETITION FROM EXISTING MANUFACTURERS AND MARKETERS OF BLOOD
ANALYSIS PRODUCTS WHO HAVE GREATER RESOURCES THAN THE COMPANY, ECONOMIC
CONDITIONS AFFECTING THE COMPANY'S TARGET MARKETS, THE UNCERTAINTY OF NEW
PRODUCT DEVELOPMENT INITIATIVES, THE ABILITY TO ATTRACT AND RETAIN KEY
SCIENTIFIC, TECHNOLOGICAL AND MANAGEMENT PERSONNEL, DEPENDENCE UPON LIMITED
SOURCES FOR PRODUCT MANUFACTURING COMPONENTS, UPON A SINGLE MANUFACTURING
FACILITY AND UPON INNOVATIVE AND HIGHLY TECHNICAL MANUFACTURING TECHNIQUES,
MARKET RESISTANCE TO NEW PRODUCTS AND POINT OF CARE BLOOD DIAGNOSIS,
INCONSISTENCY IN CUSTOMER ORDER PATTERNS (including those affected by Y2k
issues), DOMESTIC AND INTERNATIONAL REGULATORY CONSTRAINTS, UNCERTAINTIES OF
INTERNATIONAL TRADE, PENDING AND POTENTIAL DISPUTES CONCERNING OWNERSHIP OF
INTELLECTUAL PROPERTY, AVAILABILITY OF CAPITAL UPON FAVORABLE TERMS AND
DEPENDENCE UPON AND CONTRACTUAL RELATIONSHIPS WITH STRATEGIC PARTNERS,
PARTICULARLY ABBOTT LABORATORIES. SEE ADDITIONAL DISCUSSION UNDER "FACTORS THAT
MAY AFFECT FUTURE RESULTS" IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE
YEAR ENDED DECEMBER 31, 1998, AND OTHER FACTORS DETAILED FROM TIME TO TIME IN
THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.


                                       15
<PAGE>   16
                               i-STAT CORPORATION

PART II -- OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

           The Company is a defendant in a case entitled Nova Biomedical
Corporation, Plaintiff v. i-STAT Corporation, Defendant. The Complaint, which
was filed in the United States District Court for the District of Massachusetts
on June 27, 1995, alleges infringement by i-STAT of Nova's U.S. Patent No.
4,686,479. In February 1998, the Court entered summary judgment in favor of the
Company on the issue of patent infringement, finding that the Company did not
infringe, either literally or under the patent law "doctrine of equivalents",
Nova's patent. The plaintiff appealed, and in September, 1999 the Federal
Circuit Court affirmed the District Court's decision on literal infringement,
but reversed the District Court on the "doctrine of equivalents", ruling that
this was a matter for a jury to decide. The Company has asked the Circuit Court
to reconsider this portion of its decision and is awaiting a decision on its
petition for reconsideration. If the plaintiff should prevail on this issue, a
prospect which the Company believes to be unlikely, it could have a material
impact on the financial position, results of operations and cash flows of the
Company.

           The Company is a defendant in a class action complaint entitled Susan
Kaufman, on behalf of herself and all others similarly situated, Plaintiff, v.
i-STAT Corporation, William P. Moffitt, Lionel M. Sterling, Imants R. Lauks and
Matthias Plum, Jr. The class action was brought by Susan Kaufman on her behalf
and on behalf of all purchasers of the Company's Common Stock between May 9,
1995 and March 19, 1996. The complaint, which was filed in the Superior Court of
New Jersey in Mercer County on June 19, 1996, alleges New Jersey common law
fraud and negligent misrepresentation, and is predicated on a "fraud on the
market" theory in connection with certain sales of i-STAT stock by the Company's
chief executive officer, chief technology officer and two outside directors
during a nine-month period. The plaintiffs seek unspecified compensatory
damages, interest and payment of all costs and expenses incurred in connection
with the class action. The Company believes the complaint is without merit and,
on April 28, 1998, the Court entered summary judgment in favor of all the
defendants. Plaintiffs appealed and, on August 10, 1999, the Appellate Division
of the Superior Court filed an opinion sustaining the trial court's
determination as to the negligent misrepresentation claims but reversing as to
the common law fraud claims. The Court specifically stated that it expressed no
opinion concerning the evidence required to satisfy the other elements of a
common law action for securities fraud, the applicability of any defense, class
certification or the appropriate scope of plaintiff class if there is
certification. The Company has petitioned the New Jersey Supreme Court for
discretionary review of this opinion, and is awaiting the decision of the
Supreme Court whether or not such review will be forthcoming. Should the
plaintiffs prevail in this matter, it could have a material impact on the
financial position, results of operations and cash flows of the Company.

           The Company is a defendant in a case entitled Customedix Corporation,
Plaintiff v. i-STAT Corporation, Defendant. The Complaint, which was filed in
the United States District Court for the District of Connecticut on December 26,
1996, alleges infringement by i-STAT of Customedix's U.S. Patent No. 4,342,964.
The Plaintiff seeks injunctive relief and an accounting for i-STAT's profits and
the damages to Customedix from such alleged infringement. The Company intends to
contest the case vigorously and does not believe that it has infringed the
Customedix patent. The Company has obtained an opinion from recognized patent
counsel to the effect that no infringement has occurred. The court has
interpreted the Customedix patent in a way favorable to the Company and has
denied Customedix's motion for reconsideration of that interpretation. The
Company has moved for summary judgment of non-infringement and the court will
schedule argument in due course. However, if the plaintiff should prevail in
this matter, it could have a material impact on the financial position, results
of operation and cash flows of the Company.



                                       16
<PAGE>   17
                                  EXHIBIT INDEX


ITEM  6.   EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits

         3.1      Restated Certificate of Incorporation (Form S-8/S-3
                  Registration Statement, File No. 33-48889)*

         3.2      By-Laws (Form 10-K for fiscal year ended December 31, 1996)*

         3.3      Certificate of Designation, Preferences and Rights of Series A
                  Preferred Stock (Form 8-K, dated July 10, 1995 and amended on
                  September 11, 1995)*

         3.4      Certificate of Designation, Preferences and Rights of Series B
                  Preferred Stock (Form 8-K, dated July 10, 1995 and amended on
                  September 11, 1995)*

         4.1      Stockholder Protection Agreement, dated as of June 26, 1995,
                  between Registrant and First Fidelity Bank, National
                  Association (Form 8-K, dated July 10, 1995 and amended on
                  September 11, 1995)*

         27       Financial Data Schedule



         *        These items are hereby incorporated by reference from the
                  exhibits of the filing or report indicated (except where
                  noted, Commission File No. 0-19841) and are hereby made a part
                  of this Report.

         (b)      Reports on Form 8-K

                  During the quarter for which this Report on Form 10-Q is
                  filed, no reports on Form 8-K were filed.



                                       17
<PAGE>   18
                               i-STAT CORPORATION

                                   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.





DATE:      November 10, 1999





                                               i-STAT CORPORATION
                                                  (Registrant)



                                      BY:   /s/William P. Moffitt
                                            William P. Moffitt
                                            President and Chief
                                            Executive Officer
                                            (Principal Executive Officer)


                                      BY:   /s/Roger J. Mason
                                            Roger J. Mason
                                            Vice President of Finance,
                                            Treasurer and Chief
                                            Financial Officer
                                            (Principal Financial Officer and
                                             Accounting Officer)



                                       18