<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 MARCH 31, 2001

                           ARGONAUT TECHNOLOGIES, INC.
             (Exact name of registrant as specified in its charter)



                  DELAWARE                              94-3216714
       (State or other jurisdiction of                 (IRS Employer
       incorporation or organization)             Identification Number)



                          887 Industrial Road, Suite G
                          San Carlos, California 94070
                    (Address of principal executive offices)

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

                                 (650) 598-1350
              (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 [X]       No [ ]

As of April 30, 2001, 19,145,257 shares of the Registrant's Common Stock,
$0.0001 par value, were issued and outstanding.

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


                                                                          Page 1
<PAGE>   2

Argonaut Technologies, Inc.
INDEX
--------------------------------------------------------------------------------



<TABLE>
<CAPTION>
ITEM NO.                                                                    PAGE
<S>            <C>                                                          <C>

PART I.        FINANCIAL INFORMATION

Item 1.        Condensed Consolidated Financial Statements
               (Unaudited) .......................................            3

               Condensed Consolidated Balance Sheet as of
               December 31, 2000 and March 31, 2001 (Unaudited)...            3

               Condensed Consolidated Statement of Operations for
               the Three-Month Periods Ended March 31, 2001 and
               2000 (Unaudited)...................................            4

               Condensed Consolidated Statement of Cash Flows for
               the Three-Month Periods Ended March 31, 2001 and
               2000 (Unaudited)...................................            5

               Notes to Condensed Consolidated Financial
               Statements (Unaudited).............................            6

Item 2.        Management's Discussion and Analysis of Financial
               Condition and Results of Operations................            7


Item 3.        Quantitative and Qualitative Disclosures About
               Market Risk........................................           16


PART II.       OTHER INFORMATION

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

Item 2.        Changes in Securities and Use of Proceeds..........           16

Item 3.        Defaults Upon Senior Securities....................           16

Item 4.        Submission of Matters to a Vote of Security
               Holders............................................           16

Item 5.        Other Information..................................           17

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

Signatures........................................................           17

Exhibits..........................................................           18
</TABLE>



                                                                          Page 2
<PAGE>   3

--------------------------------------------------------------------------------
PART I: FINANCIAL INFORMATION
--------------------------------------------------------------------------------

ITEM 1.        CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



                           ARGONAUT TECHNOLOGIES, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                 (In thousands)


<TABLE>
<CAPTION>
                                                            March 31,      December 31,
                                                              2001             2000
                                                           -----------     ------------
                                                           (unaudited)          (1)
<S>                                                        <C>             <C>
ASSETS

Current assets:
   Cash and cash equivalents .........................      $  59,266       $  39,147
   Short-term investments ............................          7,981          34,225
   Accounts receivable, net ..........................          3,533           4,088
   Inventories .......................................          3,868           2,782
   Prepaid expenses and other current assets .........            986           1,021
                                                            ---------       ---------
     Total current assets ............................         75,634          81,263

Property and equipment, net ..........................          1,951           1,743
Goodwill and other intangible assets, net ............          8,469              --
Other assets .........................................            141              26
                                                            ---------       ---------
                                                            $  86,195       $  83,032
                                                            =========       =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable ..................................      $   1,630       $   1,004
   Accrued compensation ..............................            847           1,097
   Other accrued liabilities .........................          1,081           1,209
   Deferred revenue ..................................          1,095           1,534
   Current portion of capital lease obligations ......            288             288
   Notes payable .....................................            540              --
                                                            ---------       ---------
     Total current liabilities .......................          5,481           5,132

Noncurrent portion of capital lease obligations ......            120             180
Other long-term liabilities ..........................            114              --
Stockholders' equity:
   Common stock ......................................              2               2
   Additional paid-in capital ........................        120,178         115,283
   Deferred stock compensation .......................         (2,470)         (3,055)
   Accumulated deficit ...............................        (37,086)        (34,439)
   Other comprehensive (loss) income .................           (144)            (71)
                                                            ---------       ---------
     Total stockholders' equity ......................         80,480          77,720
                                                            ---------       ---------
                                                            $  86,195       $  83,032
                                                            =========       =========
</TABLE>


   (1) The balance sheet at December 31, 2000 has been derived from the audited
       financial statements at that date but does not include all of the
       information and footnotes required by generally accepted accounting
       principles for complete financial statements.


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



                                                                          Page 3

<PAGE>   4

                           ARGONAUT TECHNOLOGIES, INC.

                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                      (In thousands, except per share data)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                           Three Months Ended
                                                               March 31,
                                                        -----------------------
                                                          2001           2000
                                                        --------       --------
<S>                                                     <C>            <C>
Net sales ........................................      $  4,793       $  3,564

Costs and expenses:
  Cost of sales ..................................         2,322          1,399
  Research and development * .....................         1,576          1,261
  Selling, general & administrative * ............         4,123          2,931
  Amortization of purchased intangibles ..........            72             --
  In-process research and development
   expense .......................................           270             --
                                                        --------       --------

Total costs and expenses .........................         8,363          5,591
                                                        --------       --------

Loss from operations .............................        (3,570)        (2,027)
Other income (expense);
  Interest and other income ......................         1,027            197
  Interest and other expense .....................          (104)          (187)
                                                        --------       --------

Net loss .........................................      $ (2,647)      $ (2,017)
                                                        ========       ========

Net loss per share, basic and diluted ............      $  (0.14)      $  (0.86)
                                                        ========       ========

Weighted-average shares used in computing
net loss per share, basic and diluted ............        18,586          2,350
                                                        ========       ========


* Research and development expenses and selling, general and administrative
  expenses include charges for stock-based compensation as follows:

Research and development .........................      $    294       $    256
Selling, general and administrative ..............           408            350
                                                        --------       --------
                                                        $    702       $    606
                                                        ========       ========
</TABLE>


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



                                                                          Page 4

<PAGE>   5

                           ARGONAUT TECHNOLOGIES, INC.

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                 (In thousands)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                      Three Months Ended
                                                                                           March 31,
                                                                                    -----------------------
                                                                                      2001           2000
                                                                                    --------       --------
<S>                                                                                 <C>            <C>
Cash flows from operating activities:
   Net loss ..................................................................      $ (2,647)      $ (2,017)
   Adjustments to reconcile net loss to net cash used in operating activities:
     Depreciation and amortization ...........................................           252            182
     Stock compensation ......................................................           702            606
     In-process research and development .....................................           270             --
     Change in cumulative translation adjustment .............................           (73)           (28)
     Changes in assets and liabilities:
       Accounts receivable ...................................................         1,011          1,167
       Inventories ...........................................................          (398)          (390)
       Prepaid expenses and other current assets .............................            81             10
       Other assets, long term ...............................................            23             --
       Accounts payable ......................................................           313            (98)
       Accrued compensation ..................................................          (250)          (201)
       Other accrued liabilities .............................................          (479)            49
       Deferred revenue ......................................................          (858)          (542)
                                                                                    --------       --------
         Net cash used in operating activities ...............................        (2,053)        (1,262)
                                                                                    --------       --------

Cash flows from investing activities:
   Capital expenditures, net .................................................          (159)          (335)
   Proceeds from the sale of short term investments ..........................            --            990
   Proceeds from the maturities of short term investments ....................        32,344             --
   Purchase of short term investments ........................................        (6,100)            --
   Purchase of Camile Products, LLC (net of cash received) ...................        (3,964)            --
                                                                                    --------       --------
         Net cash provided by investing activities ...........................        22,121            655
                                                                                    --------       --------

Cash flows from financing activities:
   Repayments of long-term debt ..............................................            --           (292)
   Principal payments on capital lease obligations ...........................           (60)           (90)
   Proceeds from issuance of common stock, net ...............................           111             43
                                                                                    --------       --------
         Net cash provided (used) in financing activities ....................            51           (339)
                                                                                    --------       --------


Net increase (decrease) in cash and cash equivalents .........................        20,119           (946)
Cash and cash equivalents at beginning of period .............................        39,147          4,946
                                                                                    --------       --------

Cash and cash equivalents at end of period ...................................      $ 59,266       $  4,000
                                                                                    ========       ========

SUPPLEMENTAL CASH FLOW DISCLOSURES:
   Cash paid for interest ....................................................      $     18       $    135
                                                                                    ========       ========

SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
  Deferred stock compensation ................................................      $    585       $    540
                                                                                    ========       ========

Cash flow for acquisition of Camile Product, LLC:
   Tangible assets acquired (excluding $35 cash received) ....................      $  1,557
   Purchased in-process research and development .............................           270
   Goodwill and other intangible assets required .............................         8,541
   Acquisition costs incurred ................................................          (253)
   Liabilities assumed .......................................................        (1,484)
   Common stock issued .......................................................        (4,667)
                                                                                    --------
      Cash paid for acquisition (net of $35 cash received) ...................      $  3,964
                                                                                    ========
</TABLE>


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



                                                                          Page 5
<PAGE>   6

                           ARGONAUT TECHNOLOGIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION

     In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments, consisting only of
normal recurring adjustments, which the Company considers necessary to present
fairly the financial information included herein. This Quarterly Report on Form
10-Q should be read in conjunction with the audited financial statements and
notes thereto included in the Form 10-K, as amended, for the year ended December
31, 2000 as filed with the Securities and Exchange Commission. The interim
results presented herein are not necessarily indicative of the results of
operations that may be expected for the full fiscal year ending December 31,
2001, or any other future period.

NOTE 2 - INVENTORIES

        Inventories consist of the following(in thousands):

<TABLE>
<CAPTION>
                                                       March 31,    December 31,
                                                         2001          2000
                                                       ---------    ------------
         <S>                                           <C>          <C>
         Raw materials ..........................       $2,673        $1,693
         Work-in-process ........................          959           649
         Finished goods .........................          236           440
                                                        ------        ------

                                                        $3,868        $2,782
                                                        ======        ======
</TABLE>

NOTE 3 -- NET LOSS PER SHARE

     Net loss per share has been computed according to Statement of Financial
Accounting Standards No. 128, "Earnings Per Share," which requires disclosure of
basic and diluted earning per share. Basic earnings per share excludes any
dilutive effects of options, shares subject to repurchase, warrants, and
convertible securities. Diluted earnings per share includes the impact of
potentially dilutive securities (calculated using the treasury stock and
as-if-converted method).

     Pro forma net loss per share includes shares issuable upon the conversion
of outstanding shares of preferred stock (using the as-if-converted method) from
the original date of issuance. All outstanding preferred stock was automatically
converted to common stock upon the close of the company's initial public
offering in July 2000.

        The following table presents the calculation of basic and diluted net
        loss per share (in thousands, except per share data):

<TABLE>
<CAPTION>
                                                             Three Months Ended
                                                                 March 31,
                                                          -----------------------
                                                            2001           2000
                                                          --------       --------
<S>                                                       <C>            <C>
Basic and diluted:
  Weighted-average shares of common stock
  outstanding used in net loss per share,
  basic and diluted ................................        18,586          2,350

Adjustments to reflect weighted-average
  effect of assumed conversion of preferred
  stock ............................................            --          9,979
                                                          --------       --------

Weighted-average shares used in proforma
  net loss per share, basic and diluted ............        18,586         12,329
                                                          ========       ========

Proforma net loss per share, basic and
  diluted ..........................................      $  (0.14)      $  (0.16)
                                                          ========       ========
</TABLE>

NOTE 4 -- COMPREHENSIVE INCOME (LOSS)



                                                                          Page 6
<PAGE>   7

     Comprehensive income (loss) is comprised of net loss and other items of
comprehensive income (loss). Other comprehensive income (loss) includes
unrealized gains and losses on the Company's short-term investments and foreign
currency translation adjustments.

        For the three months ended March 31, 2001 and 2000, comprehensive net
        income (loss) is as follows (in thousands):

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                              March 31,
                                                         2001            2000
                                                       --------        --------
        <S>                                            <C>             <C>
        Net (loss) .............................       $ (2,647)       $ (2,017)

        Other comprehensive (loss) .............            (73)            (28)
                                                       --------        --------

        Comprehensive (loss) ...................       $ (2,720)       $ (2,045)
                                                       ========        ========
</TABLE>

NOTE 5 -- BUSINESS COMBINATION

      On March 1, 2001, the Company acquired all of the assets and certain
liabilities of Camile Products, LLC and renamed this subsidiary Argonaut
Technologies Systems, Inc. Argonaut Technologies Systems, Inc. markets software
solutions that allow pharmaceutical and chemical companies to automate and
precisely control chemical reactions. The transaction was accounted for using
the purchase accounting method and accordingly, the accompanying financial
statements include the results of operations of Argonaut Technologies Systems,
Inc. subsequent to the acquisition date. The transaction was valued at
approximately $8.9 million and was comprised of $4.0 million cash, 666,667
shares of the Company's common stock, and expenses related to the transaction.

        The total purchase cost of Argonaut Technologies Systems, Inc. is as
follows (in thousands):

<TABLE>
<S>                                                                    <C>
        Cash .................................................         $4,000
        Fair value of securities issued ......................          4,667
                                                                       ------
                                                                       $8,667

        Estimated transaction costs and expenses .............            253
                                                                       ------
                                                                       $8,920
                                                                       ======
</TABLE>

The Company preliminarily allocated the purchase price based on the estimated
fair value of the net tangible and intangible assets acquired. In performing
this allocation, the Company considered, among other factors, the technology
research and development projects in process at the date of acquisition. With
regard to the in-process research and development projects, the Company
considered factors such as the stage of development of the technology at the
acquisition, the importance of each project to the overall development plan,
alternative future uses of the technology and the projected incremental cash
flows from the projects when completed and any associated risks. The Company
will finalize the purchase price allocation subsequent to the receipt of the
final independent appraisal report and validation of its result by the Company.

        The preliminary purchase price allocation is as follows (in thousands):

<TABLE>
<S>                                                               <C>
        Net tangible assets ...............................       $  109
        In-process research and development ...............          270
        Goodwill and other purchased intangible
          assets ..........................................        8,541
                                                                  ------
                                                                  $8,920
</TABLE>

        Goodwill and other purchased intangible assets are being amortized on a
        straight-line basis over an estimated useful life of ten years. The
        Company will reassess this upon finalization of the purchase price
        allocation.

The table below presents the pro forma consolidated results of operations and
earnings per share for the Company. The transaction is assumed to have been



                                                                          Page 7
<PAGE>   8

completed on January 1, 2001 for the period ended March 31, 2001 and January 1,
2000 for the period ended March 31, 2000 and excludes charges for in-process
research and development and goodwill amortization. No effect has been given to
cost reductions or operating synergies in this presentation. These pro forma
amounts do not purport to be indicative of the results that would have actually
been obtained if the acquisition had occurred as of the beginning of the periods
presented or that may be obtained in the future.

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                              March 31,
                                                        2001             2000
                                                      --------         --------
                                                        (in thousands, except
                                                           per share data)
<S>                                                   <C>              <C>
         Net revenue .........................        $  5,560         $  4,255

         Net loss ............................          (2,736)          (2,147)

         Loss per share ......................        $  (0.14)        $  (0.71)
</TABLE>

NOTE 6 - RECENT ACCOUNTING PRONOUNCEMENTS

In June, 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Financial Instruments and Hedging Activities" ("SFAS 133"). SFAS 133
requires the Company to recognize all derivatives on the balance sheet at fair
value. Derivatives that are not hedges must be adjusted to fair value through
net income. If the derivative is a hedge, depending on the nature of the hedge,
changes in the fair value of the derivative are either offset against the change
in fair value of assets, liabilities, or firm commitments through earnings or
recognized in other comprehensive income until the hedged item is recognized in
earnings. SFAS 133, as amended, is effective for the first fiscal quarter in
fiscal years beginning after June 15, 2000. The Company adopted SFAS 133 on
January 1, 2001 and does not expect this pronouncement to materially impact the
results of its operations, as it does not currently hold or engage in hedging
activities.


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

     The discussion below and other parts of this Form 10-Q contain certain
forward-looking statements that are based on the beliefs of the Company's
management, as well as assumptions made by, and information currently available
to, the Company's management. We desire to take advantage of the "Safe Harbor"
provisions of the Private Securities Litigation Reform Act of 1995 and of
Section 21E of the Securities Exchange Act of 1934. Factors that might cause
differences include, but are not limited to, those discussed in the section
entitled "Additional Factors That May Effect Future Results" and those appearing
elsewhere in this Form 10-Q, our Form 10-K, as amended, and other filings with
the Securities and Exchange Commission. Except for historical information
contained herein, the matters discussed herein this Form 10-Q are
forward-looking statements involving risks and uncertainties that could cause
actual results to differ materially from those in such forward-looking
statements. Examples of such forward-looking statements include statements about
the possible impact of future product and technology platform introductions,
statements about future expenses, as well as potential related revenues,
statements about revenues expected from our Endeavor product, statements about
anticipated future lower costs of sales related to increased production volumes,
improvements in our manufacturing process and statements about our expectations
as to the duration of our negative cash flows from operations and the
sufficiency of existing cash reserves for the next 24 months.

OVERVIEW

     On March 1, 2001, the Company completed the acquisition of Camile
Products, LLC and renamed this subsidiary Argonaut Technologies Systems, Inc.
The acquisition was accounted for using the purchase accounting method. The
transaction was valued



                                                                          Page 8
<PAGE>   9

at approximately $8.9 million and was comprised of $4.0 million cash, 666,667
shares of the Company's common stock, and expenses related to the transaction.
Argonaut Technologies Systems, Inc. markets software solutions that allow
pharmaceutical and chemical companies to automate and precisely control chemical
reactions.

     The Company markets eight instrument products including two instruments
launched in mid-2000, the Surveyor and the Endeavor. These two new instruments
were developed specifically for synthesis requirements in clinical development.
With the addition of these instruments, Argonaut's products cover the complete
range of lead optimization, pre-clinical and clinical development for our
customers. Revenues from the sales of our instrument products are recognized
when delivery and installation of the product is complete. The Company also
derives revenues from the sale of reagents and other instrument consumables.

      The Company recorded deferred stock compensation in connection with the
grant of stock options to employees prior to its initial public offering of
approximately $6.6 million. These amounts are recorded as a component of
stockholders' equity and are being amortized as charges to operations. As of
March 31, 2001, the Company had a total of $2.5 million to be amortized over the
remaining vesting period of options. The Company also records stock compensation
for options granted to consultants that are periodically re-measured as they
vest, in accordance with SFAS 123 and EITF 96-18. For the quarters ended March
31, 2001 and 2000 the combined deferred compensation charges to operations
aggregated approximately $702,000 and $606,000, respectively.

RESULTS OF OPERATIONS

Net Sales

     Net sales increased to $4.8 million for the three months ended March 31,
2001 from $3.6 million in the same period of 2000. This increase was due to
higher sales in both instruments and consumables. The increase in instrument
sales was primarily due to our two most recent instruments, the Surveyor and the
Endeavor.

Cost of sales

     Cost of sales increased to $2.3 million in the first quarter of 2001 from
$1.4 million in the first quarter of 2000. This increase was primarily
attributable to higher sales volume and also the continuation of higher
production costs for the more recently launched Surveyor and Endeavor.

Research and development expenses

     Research and development expenses increased to $1.6 million in the first
quarter of 2001 from $1.3 million in the first quarter of 2000. This increase
was primarily attributable to new product initiatives including new chemistry
product development as well as additional expenses for Argonaut Technologies
Systems for the month of March 2001 not reflected in the prior year. Stock based
compensation was also up modestly from the prior year. Personnel levels and
related costs remained relatively constant in 2001 and 2000.

Selling, general and administrative expenses

     Selling, general and administrative expenses increased to $4.1 million in
the first quarter of 2001 from $2.9 million in the same period of 2000. These
expenses consist primarily of salaries and related costs for executive, sales
and marketing, finance and other administrative personnel and the cost of
facilities. The increase was attributable to the further expansion of our direct
sales force, the additional costs of being a public company not reflected in the
prior year, additional expenses for the month of March 2001 related to Argonaut
Technologies Systems, and also due to a modest increase in the charges for stock
based compensation.

Amortization of purchased intangibles and in-process R&D expense

        The Company recorded amortization of purchased intangibles of $72,000
and a one-time charge of $270,000 for in-process research and development
expenses related to the acquisition of Camile Products, LLC (now Argonaut
Technologies Systems,



                                                                          Page 9
<PAGE>   10

Inc.). The Company allocated the purchase price based on the fair value of the
net tangible and intangible assets acquired, using a preliminary independent
appraisal, which is subject to change. In performing this allocation, the
Company considered, among other factors, the technology research and development
projects in process at the date of acquisition. With regard to the in-process
research and development projects, the Company considered factors such as the
stage of development of the technology at the acquisition, the importance of
each project to the overall development plan, alternative future uses of the
technology and the projected incremental cash flows from the projects when
completed and any associated risks. The Company will finalize the purchase price
allocation subsequent to the receipt of the final independent appraisal report
and validation of its result by the Company.

Interest and other income

     Interest and other income increased for the quarter ended March 31, 2001 as
compared to 2000 primarily because of greater levels of funds available for
investments. This was substantially influenced by the proceeds received from the
Company's initial public offering in the third quarter of 2000.

Interest and other expense

     Interest and other expense was reduced during the three months ended 2001
due to the continuing pay down of debt obligations.

LIQUIDITY AND CAPITAL RESOURCES

     As of March 31, 2001, the Company had cash, cash equivalents and short-term
investments of $67.2 million compared to $73.4 million at December 31, 2000. The
decrease was primarily due to the use of $4.3 million in connection with the
purchase of Camile Products, LLC (now Argonaut Technologies Systems, Inc.) and
related expenses as well as cash used in operating activities of approximately
$2.1 million.

     Net cash used to support operating activities has historically fluctuated
based on the timing of payments of accounts payable balances, receipts of
customer deposits, receipt of payments of accounts receivable balances, changes
in inventory balances resulting from varying levels of manufacturing activities,
the timing of research and development projects, expansion of our sales and
marketing organization and fluctuations in the Company's net loss.

     Net cash provided by investing activities totaled $22.1 million and $0.7
million for the three months ended March 31, 2001 and 2000, respectively. This
increase in the first three months of 2000 was primarily attributable to
proceeds from the maturity of short-term investments to provide cash to fund the
Company's ongoing operating activities. Offsetting this increase was $4.0
million of cash used in connection with the purchase of Camile Products, LLC
(now Argonaut Technologies Systems, Inc.) and cash used to purchase short-term
investments.

     Net cash provided in financing activities was $0.1 million versus ($0.3)
million for the three months ended March 31, 2001 and 2000, respectively. The
change was primarily due to the Company's repayment of long-term debt in the
first quarter of 2000.

     The Company expects to have negative cash flows from operations through at
least mid 2002. In addition, we expect to incur increasing development expenses,
as well as expenses for additional personnel for production and
commercialization efforts, and we may never generate positive cash flows. Our
future capital requirements depend on a number of factors, including market
acceptance of our products, the resources we devote to developing and supporting
our products, continued progress of our research and development of potential
products, the need to acquire licenses to new technology and the availability of
other financing. We believe that our current cash balances will be sufficient to
fund our operations at least through the next 24 months. To the extent that our
capital resources are insufficient to meet future capital requirements, we will
need to raise additional capital or incur indebtedness to fund our operations.
There can be no assurance that additional debt or equity financing will be
available on acceptable terms, if



                                                                         Page 10
<PAGE>   11

at all. If adequate funds are not available, we may be required to delay, reduce
the scope of, or eliminate, our operations or obtain funds through arrangements
with collaborative partners or others that may require us to relinquish rights
to certain technologies or products that we might otherwise seek to retain.

ADDITIONAL FACTORS THAT MAY AFFECT FUTURE RESULTS

RISKS RELATED TO OUR BUSINESS

WE HAVE A HISTORY OF OPERATING LOSSES AND WE MAY NEVER ACHIEVE OR SUSTAIN
PROFITABILITY AND MAY BE REQUIRED TO RAISE ADDITIONAL FUNDS IF LOSSES CONTINUE.

     We have incurred operating losses and negative cash flows from operations
since our inception. As of March 31, 2001, we had an accumulated deficit of
$37.1 million and we recorded net losses of $2.6 million for the quarter ended
March 31, 2001. We expect to continue to incur operating and net losses and
negative cash flows from operations, which may increase, for the foreseeable
future.

     We anticipate that our existing cash and cash equivalents will be
sufficient to fund our currently planned operations through at least the next 24
months. However, this expectation is based on our current operating plan, which
could change as a result of many factors, and we could require additional
funding sooner than anticipated. To the extent our capital resources are
insufficient to meet our future capital requirements, we will have to raise
additional funds to continue the development and commercialization of our
products. Funds may not be available on favorable terms, if at all. To the
extent that we raise additional capital through the sale of equity, the issuance
of those securities will result in dilution to our stockholders.

IF OUR PRODUCTS DO NOT BECOME WIDELY USED IN THE LIFE SCIENCES INDUSTRY, IT IS
UNLIKELY THAT WE WILL EVER BECOME PROFITABLE.

     Pharmaceutical, biotechnology and life sciences companies have historically
performed chemistry development using traditional laboratory methods. To date,
our products have not been widely adopted by the life sciences industry. The
commercial success of our products will depend upon the adoption of these
products as a method to develop chemical compounds for the life sciences and
other industries. In order to be successful, our products must meet the
performance and pricing requirements for chemistry development within the life
sciences and other industries. Market acceptance will depend on many factors,
including our ability to:

    -   convince prospective customers that our products are a cost-effective
        alternative to traditional methods and other technologies that may be
        introduced for chemistry development;

    -   convince prospective customers that our products provide the same or
        enhanced quality and accuracy as compared with traditional methods and
        other new technologies which may be developed;

    -   manufacture products in sufficient quantities with acceptable quality
        and at an acceptable cost; and

    -   install and service sufficient quantities of our products.

     If we cannot achieve these objectives, our products will not gain market
acceptance.

OUR PRODUCT DEVELOPMENT EFFORTS MAY NOT PRODUCE COMMERCIALLY VIABLE PRODUCTS

     We intend to devote significant personnel and financial resources to
research and development activities to develop new products. We may not be
successful in developing new products, and we may never realize any benefits
from such research and development activities. Our ability to increase our
revenues and achieve and sustain profitability is dependent upon our ability to
successfully develop new and commercially viable products.



                                                                         Page 11
<PAGE>   12

BECAUSE WE RECEIVE REVENUES PRINCIPALLY FROM LIFE SCIENCES AND CHEMICAL
COMPANIES, THE CAPITAL SPENDING POLICIES OF THESE ENTITIES HAVE A SIGNIFICANT
EFFECT ON THE DEMAND FOR OUR PRODUCTS.

     We market our products to pharmaceutical, biotechnology, life sciences and
other chemical research companies, and the capital spending policies of these
entities can have a significant effect on the demand for our products. These
policies are based on a wide variety of factors, including the resources
available for purchasing research equipment, the spending priorities among
various types of research equipment and the policies regarding capital
expenditures. In particular, the volatility of the public stock market for
biotechnology and related companies has at certain times significantly impacted
their ability to raise capital, which has directly affected their capital
spending budgets. In addition, continued consolidation within the pharmaceutical
industry will likely delay and may potentially reduce capital spending by
pharmaceutical companies involved in such consolidations. Any decrease or delay
in capital spending by life sciences companies could cause our revenues to
decline and harm our profitability

OUR PRODUCTS HAVE LENGTHY SALES CYCLES, WHICH COULD CAUSE OUR OPERATING RESULTS
TO FLUCTUATE SIGNIFICANTLY FROM QUARTER TO QUARTER.

     Our ability to obtain customers for our products depends in significant
part upon the perception that our products can help accelerate efforts in drug
development. The sale of many of our products typically involves a significant
technical evaluation and commitment of capital by customers. Accordingly, the
sales cycles of many of our products are lengthy and subject to a number of
risks that are beyond our control, including customers' budgetary constraints
and internal acceptance reviews. Our revenues could fluctuate significantly from
quarter to quarter, due to this lengthy and unpredictable sales cycle. In
particular, our operating results in the first and third quarters have
historically been depressed. A large portion of our expenses, including expenses
for facilities, equipment and personnel, are relatively fixed. Accordingly, if
our revenues decline or do not grow as we anticipate, we might not be able to
correspondingly reduce our operating expenses. Our failure to achieve our
anticipated levels of revenues could significantly harm our operating results
for a particular fiscal period. Due to the possibility of fluctuations in our
operating results, we believe that quarter-to-quarter comparisons of our
operating results are not always a good indication of our future performance.

IN CONNECTION WITH OUR RECENT ACQUISITION AND IF WE CHOOSE TO ACQUIRE ADDITIONAL
NEW AND COMPLEMENTARY BUSINESSES, PRODUCTS OR TECHNOLOGIES INSTEAD OF DEVELOPING
THEM OURSELVES, WE MAY BE UNABLE TO COMPLETE THESE ACQUISITIONS OR MAY NOT BE
ABLE TO SUCCESSFULLY INTEGRATE AN ACQUIRED BUSINESS OR TECHNOLOGY IN A
COST-EFFECTIVE AND NON-DISRUPTIVE MANNER.

     Our success depends on our ability to continually enhance and broaden our
product offerings in response to changing technologies, customer demands and
competitive pressures. To meet these challenges, we have recently acquired a
complementary business and may choose to acquire others in the future. We do not
know if we will be able to complete any acquisitions, or whether we will be able
to successfully integrate any acquired businesses, operate it profitably or
retain its key employees. Integrating any business, product or technology we
acquire could be expensive and time consuming, disrupt our ongoing business and
distract our management. If we are unable to integrate any acquired entities,
products or technologies effectively, our business may suffer. In addition, any
amortization of goodwill or other assets or charges resulting from the costs of
acquisitions could negatively impact our operating results.

OUR DIRECT SALES FORCE MAY NOT BE SUFFICIENTLY LARGE TO SUCCESSFULLY ADDRESS THE
MARKET FOR OUR PRODUCTS.

     We sell a major portion of our products through our own sales force. We
believe that we will need to expand our direct sales and marketing force to
successfully address the market for our products. We may not be able to build an
efficient and effective sales and marketing force. Our failure to build an
efficient and effective sales and marketing force could negatively impact sales
of our products, thus reducing our revenues and profitability



                                                                         Page 12
<PAGE>   13

FAILURE TO EXPAND OUR INTERNATIONAL SALES AS WE INTEND WOULD REDUCE OUR ABILITY
TO BECOME PROFITABLE.

     We will need to sell a significant number of our products outside of the
United States to achieve our sales objectives. To be successful in our
international efforts, we will need to expand our direct sales force to conduct
international operations and develop relationships with international dealers
and distributors. We may not be able to expand our sales force or identify,
attract or retain suitable international dealers and distributors. As a result,
we may be unsuccessful in our international expansion efforts. We must continue
to establish and expand foreign operations and hire additional personnel to run
these operations, in order to expand our presence into international markets.

     International operations involve a number of risks and burdens not
typically present in domestic operations, including:

    -   preferences of certain customers to purchase goods manufactured in their
        own country or geographic market;

    -   difficulties in staffing and managing foreign operations;

    -   reliance on distributors in countries where we do not have a physical
        presence;

    -   licenses, tariffs and other trade barriers;

    -   changes in regulatory requirements;

    -   potentially adverse tax consequences, and;

    -   political and economic instability.

     In addition, we conduct a portion of our business in Japanese yen and other
non-U.S. dollar currencies. As a result, currency fluctuations between the U.S.
dollar and the currencies in which we do business will cause us to incur foreign
currency translation gains and losses. To date, our foreign currency translation
gains and losses have not been substantial. Our international operations will
also be subject to the risks associated with the imposition of legislation and
regulations relating to the import or export of high technology products. We
cannot predict whether tariffs or restrictions upon the exportation of our
products will be implemented by the United Sates or other countries.

IF WE LOSE OUR EXCLUSIVE LICENSE TO PROPRIETARY TECHNOLOGY INCORPORATED INTO OUR
PRODUCTS WE MAY BE UNABLE TO CONTINUE SELLING THOSE PRODUCTS.

     We have developed some of our products based on proprietary technology
originally developed by third parties. We currently have exclusive licenses to
use such technology in our products that are subject to termination in certain
events. In particular, our license to proprietary technology belonging to Symyx,
which is incorporated into our Endeavor product, is subject to termination at
Symyx's or our option upon six months prior notice at any time after December
31, 2000. Our sales of this product constitute an increasingly significant
portion of our revenue. We estimate that sales of this product will constitute
approximately 10 to 15% of our revenues this year. This estimate depends on a
variety of factors, including increased demand, and we cannot be certain that
this estimate will be accurate. If licensors terminate our licenses to any such
technology, our revenues will decline.

IF WE HAVE DIFFICULTY MANAGING OUR GROWTH, OUR ABILITY TO INCREASE OUR REVENUES
AND BECOME PROFITABLE WOULD BE DAMAGED.

     Our growth has placed significant demands on our management and other
resources. Our future success will depend on our ability to manage our growth,
including:

    -   continuing to train, motivate, manage and retain our existing employees
        and to attract and assimilate new employees;

    -   manufacturing on a timely basis increasing quantities of current
        products and new products under development while maintaining product
        quality;

    -   expanding and improving our domestic and international sales and
        marketing capabilities; and



                                                                         Page 13
<PAGE>   14

    -   developing and improving our operational, financial, accounting and
        other internal systems and controls consistent with our pace of growth;
        and,

    -   integrating and successfully managing operations at Argonaut
        Technologies Systems and any other businesses that we may acquire in the
        future

     If we are unable to manage our growth successfully, our operations will
suffer.

IF WE ARE UNABLE TO RETAIN THE PRINCIPAL MEMBERS OF OUR MANAGEMENT TEAM AND
OTHER KEY EMPLOYEES OR TO RECRUIT SALES, SUPPORT AND OTHER ADDITIONAL PERSONNEL,
OUR OPERATING RESULTS COULD SUFFER.

     We are highly dependent on the principal members of our management team and
scientific staff. In particular, but without limitation, we are highly dependent
on David Binkley, our Chairman and Chief Executive Officer, Lissa Goldenstein,
our President and Chief Operating Officer, Jan Hughes, our Senior Vice President
and Chief Technology Officer, and John Supan, our Vice President, Finance and
Chief Financial Officer. Our loss of the services of any of these persons or our
other key personnel could delay or reduce our product development and
commercialization efforts. None of the principal members of our management team
and scientific staff have entered into employment agreements with us nor do we
have any key person life insurance on such individuals. We believe that we will
need to recruit additional sales and customer support personnel with the
requisite backgrounds and expertise. Hiring such personnel is very competitive
in our industry. In addition, we will require additional personnel in the areas
of chemistry research, product development, manufacturing, finance and
administration. In particular, it is difficult to attract and retain qualified
individuals with the requisite experience in chemistry. We may not be able to
attract and retain the requisite personnel, which could seriously harm our
ability to manage business.

BECAUSE WE OUTSOURCE OUR PRODUCT ASSEMBLY, OUR ABILITY TO PRODUCE AND SUPPLY OUR
PRODUCTS COULD BE IMPAIRED.

     We outsource most of the assembly of our products to vendors. Our reliance
on our outside vendors exposes us to risks including:

    -   the possibility that one or more of our vendors could terminate their
        services at any time without notice;

    -   reduced control over pricing, quality and timely delivery, due to the
        difficulties in switching to alternative vendors; and

    -   the potential delays and expenses of seeking alternative sources of
        manufacturing services.

     Consequently, in the event that components from our suppliers or work
performed by our vendors are delayed or interrupted for any reason, our ability
to produce and deliver our products would decline.

RISKS RELATED TO OPERATING IN OUR INDUSTRY

THE LIFE SCIENCES INDUSTRY IS HIGHLY COMPETITIVE AND SUBJECT TO RAPID
TECHNOLOGICAL CHANGE, AND WE MAY NOT HAVE THE RESOURCES NECESSARY TO
SUCCESSFULLY COMPETE.

     We compete with companies in the United States and abroad that are engaged
in the development and production of similar products. We face competition
primarily from the following three sectors:

    -   companies marketing conventional products based on traditional chemistry
        methodologies;

    -   pharmaceutical companies developing their own instruments; and

    -   companies marketing products based upon parallel synthesis and other
        innovative technologies, such as Mettler-Toledo AG and several smaller
        instrument and reagent companies

     Many of our competitors have access to greater financial, technical,
research, marketing, sales, distribution, service and other resources than we
do. We face, and will continue to face, intense competition from organizations
serving the life sciences industry that are developing or marketing competing
products and



                                                                         Page 14
<PAGE>   15

technologies. These organizations may develop products or technologies that are
superior to our products or technologies in terms of performance, cost or both.
These organizations may offer price discounts or other concessions as a
competitive tactic that we may not be in a position to match.

     We may need to develop new applications for our products to remain
competitive. Our present or future products could be rendered obsolete or
uneconomical by technological advances by one or more of our current or future
competitors. In addition, the introduction or announcement of new products by us
or by others could result in a delay of or decrease in sales of existing
products, as customers evaluate these new products. Our future success will
depend on our ability to compete effectively against current technology as well
as to respond effectively to technological advances.

IF WE INFRINGE ON OR MISAPPROPRIATE THE PROPRIETARY RIGHTS OF OTHERS OR WE ARE
UNABLE TO PROTECT OUR OWN INTELLECTUAL PROPERTY RIGHTS OUR REVENUES COULD BE
HARMED.

     We may be sued for infringing on the intellectual property rights of
others. Intellectual property litigation is costly, and, even if we prevail, the
cost of such litigation could affect our profitability. In addition, litigation
is time consuming and could divert management attention and resources away from
our business. If we do not prevail in any litigation, in addition to any damages
we might have to pay, we could be required to stop the infringing activity or
obtain a license. We may not be able to obtain required licenses on acceptable
terms, or at all. In addition, some licenses may be nonexclusive, and therefore,
our competitors may have access to the technology licensed to us. If we fail to
obtain a required license or are unable to design around a patent, we may be
unable to sell some of our products, which could harm our ability to compete and
result in a decline in our revenues.

     Our success will depend on our ability to obtain and enforce patents on our
technology and to protect our trade secrets. Any patents we own may not afford
meaningful protection for our technology and products. Others may challenge our
patents and, as a result, our patents could be narrowed, invalidated or rendered
unenforceable. In addition, our current and future patent applications may not
result in the issuance of patents to us in the United States or foreign
countries. Moreover, competitors may develop products similar to ours that are
not covered by our patents.

     We try to protect our unpatented trade secrets by requiring our employees,
consultants and advisors to execute confidentiality agreements. However, we
cannot guarantee that these agreements will provide us with adequate protection
against improper use or disclosure of our trade secrets. Further, others may
independently develop substantially equivalent proprietary information and
techniques. If we are unable to protect our proprietary information and
techniques, our ability to exclude certain competitors from the market will be
limited.

OUR FACILITIES ARE LOCATED IN CALIFORNIA AND VULNERABLE TO POWER OUTAGES WHICH
COULD DISRUPT OUR OPERATIONS AND INCREASE OUR EXPENSES.

     Our primary facility, including our manufacturing site, is located in the
state of California, which presently is experiencing a severe shortage of
electrical power. Because of California's current energy crisis, we may
experience increased electricity prices, power shortages and rolling blackouts.
If blackouts interrupt our power supply, we may be temporarily unable to
continue operations at our California facility. Any such interruption in our
ability to continue operations could delay our ability to develop or provide our
products, which could result in lost revenue and seriously harm our business,
financial condition and results of operations. We cannot be sure that the
insurance we maintain against general business interruptions will be adequate to
cover our losses in this particular case, if at all.

RISKS RELATED TO OUR RECENTLY COMPLETED INITIAL PUBLIC OFFERING

OUR STOCK PRICE HAS BEEN HIGHLY VOLATILE, AND YOUR INVESTMENT COULD SUFFER A
DECLINE IN VALUE.



                                                                         Page 15
<PAGE>   16

     The trading price of our common stock has been highly volatile and could
continue to be subject to wide fluctuations in price in response to various
factors, many of which are beyond our control, including;

    -   actual or anticipated variations in quarterly operating results;

    -   failure to achieve, or changes in, financial estimates by securities
        analysts;

    -   announcements of new products or services or technological innovations
        by us or our competitors;

    -   conditions or trends in the pharmaceutical, biotechnology and life
        sciences industries;

    -   announcements by us of significant acquisitions, strategic partnerships,
        joint ventures or capital commitments;

    -   additions or departures of key personnel;

    -   sales of our common stock; and

    -   developments regarding our patents or other intellectual property or
        that of our competitors.

     In addition, the stock market in general, and the Nasdaq Stock Market's
National Market and the market for technology companies in particular, have
experienced significant price and volume fluctuations that have often been
unrelated or disproportionate to the operating performance of those companies.
Further, there has been particular volatility in the market prices of securities
of life science companies. These broad market and industry factors may seriously
harm the market price of our common stock, regardless of our operating
performance. In the past, following periods of volatility in the market price of
a company's securities, securities class action litigation has often been
instituted. A securities class action suit against us could result in
substantial costs, potential liabilities and the diversion of management's
attention and resources.

THERE MAY NOT BE AN ACTIVE, LIQUID TRADING MARKET FOR OUR COMMON STOCK.

     There is no guarantee that an active trading market for our common stock
will be maintained on the Nasdaq National Market. You may not be able to sell
your shares quickly or at the market price if trading in our stock is not
active.

OUR PRINCIPAL STOCKHOLDERS, DIRECTORS AND EXECUTIVE OFFICERS OWN APPROXIMATELY
50% OF OUR COMMON STOCK, WHICH MAY PREVENT NEW INVESTORS FROM INFLUENCING
CORPORATE DECISIONS.

     Our stockholders who currently own over 5% of our common stock, our
directors and executive officers beneficially own approximately 50% of our
outstanding common stock. These stockholders will be able to exercise
significant influence over all matters requiring stockholder approval, including
the election of directors and the approval of significant corporate
transactions. This concentration of ownership may also delay or prevent a change
in control of us even if beneficial to our other stockholders.

SALES OF LARGE NUMBERS OF SHARES OF OUR COMMON STOCK COULD CAUSE OUR STOCK PRICE
TO DECLINE.

     The market price of our common stock could decline as a result of sales of
substantial amounts of our common stock in the public market, or the perception
that these sales could occur. In addition, these factors could make it more
difficult for us to raise funds through future offerings of common stock. All of
the shares sold in our initial public offering are now freely transferable
without restriction or further registration under the Securities Act, except for
any shares purchased by our "affiliates", as defined in Rule 144 of the
Securities Act. The remaining shares of common stock outstanding are "restricted
securities" as defined in Rule 144. These shares may be sold in the future
without registration under the Securities Act, to the extent permitted by Rule
144 or other exemptions under the Securities Act.

     On September 22, 2000, we registered 4,059,147 shares of common stock that
are reserved for issuance upon exercise of options granted under our stock
option and employee stock purchase plans. These shares can be sold in the public
market upon



                                                                         Page 16
<PAGE>   17

issuance, subject to restrictions under the securities laws applicable to
resales by affiliates.

ANTI-TAKEOVER PROVISIONS IN OUR CHARTER AND BYLAWS AND UNDER DELAWARE LAW COULD
MAKE A THIRD-PARTY ACQUISITION OF US DIFFICULT.

     Our certificate of incorporation and bylaws contain provisions that could
make it more difficult for a third party to acquire us, even if doing so might
be deemed beneficial by our stockholders. These provisions could limit the price
that investors might be willing to pay in the future for shares of our common
stock. We are also subject to certain provisions of Delaware law that could
delay, deter or prevent a change in control of us.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Our market risk disclosures have not changed significantly from those set
forth in the Management's Discussion and Analysis of Financial Condition and
Results of Operations in our Form 10-K, as amended, for the year ended December
31, 2000.

--------------------------------------------------------------------------------
PART II.  OTHER INFORMATION
--------------------------------------------------------------------------------

ITEM 1: LEGAL PROCEEDINGS

        The Company is not currently involved in any material legal proceedings.

ITEM 2: CHANGES IN SECURITIES AND USE OF PROCEEDS

        Not applicable.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

        Not applicable.

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

        Not applicable.

ITEM 5: OTHER INFORMATION

        Not applicable.

ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K

a: Exhibits

     None.

b: Reports on Form 8-K

     On February 12, 2001 and March 16, 2001 the Company filed reports on Form
8-K, respectively, for the signing of a definitive agreement for and the
subsequent completion of the acquisition of the former Camile Products LLC.



                                                                         Page 17

<PAGE>   18

--------------------------------------------------------------------------------
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.

                              ARGONAUT TECHNOLOGIES, INC.

Date: May 11, 2001            By:
                                  ----------------------------------------------
                                  David P. Binkley, Ph.D.
                                  CHAIRMAN AND CHIEF EXECUTIVE OFFICER
                                  (DULY AUTHORIZED AND PRINCIPAL EXECUTIVE
                                  OFFICER)

                              By:
                                  ----------------------------------------------
                                  John T. Supan
                                  VICE PRESIDENT, FINANCE AND CHIEF FINANCIAL
                                  OFFICER
                                  (DULY AUTHORIZED AND PRINCIPAL FINANCIAL
                                  OFFICER)



                                                                         Page 18