<PAGE>

================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

          /X/   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                         FOR THE QUARTERLY PERIOD ENDED
                                DECEMBER 31, 1999

                                       OR

          / /   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934 FOR
                   THE TRANSITION PERIOD FROM _____ TO _____ .

                         COMMISSION FILE NUMBER 0-22698

================================================================================

                              GOLDEN SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

================================================================================

            CALIFORNIA                                         95-4021568
(State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                            Identification No.)

                               2125-C MADERA ROAD
                              SIMI VALLEY, CA 93065
                    (Address of principal executive offices)
                                 (805) 582-4400
              (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
                                       ---     ---

AS OF MARCH 31, 2000, THERE WERE 5,299,998 SHARES OF NO PAR VALUE COMMON STOCK
OUTSTANDING.

================================================================================



<PAGE>

                                  INDEX LISTING
================================================================================

<TABLE>
<CAPTION>
                                                                                                 Page
                                                                                                Number
                                     PART I                                                     ------
                              FINANCIAL INFORMATION
<S>     <C>                                                                                     <C>
ITEM 1.  FINANCIAL STATEMENTS.

         Consolidated Balance Sheets as of December 31, 1999 (unaudited) and
         March 31, 1999.                                                                           1

         Consolidated Statements of Operations (unaudited) for the three months
         and nine months ended December 31, 1999 and December 31, 1998.                            2

         Consolidated Statements of Cash Flows (unaudited) for the nine months
         ended December 31, 1999 and December 31, 1998.                                            3

         Notes  To  Consolidated Financial  Statements (Unaudited).                                4-6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS.                                                                    7-9


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.                               9



                                     PART II
                                OTHER INFORMATION

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.                                                           10

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.                                                         10



                                   SIGNATURES

SIGNATURES                                                                                         11

</TABLE>


                                       i
<PAGE>

                         PART I - FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
                              GOLDEN SYSTEMS, INC.
                           CONSOLIDATED BALANCE SHEETS
                                 (in thousands)

<TABLE>
<CAPTION>

                                                    Dec. 31, 1999      March 31, 1999
                                                 -----------------    ----------------
                                                    (unaudited)
                                     ASSETS
<S>                                               <C>                 <C>
CURRENT ASSETS:
    Cash and cash equivalents                                  $46                $117
    Accounts receivable, net of allowances                     690                 548
    Inventories                                                578                 612
    Prepaid expenses and other current assets                  126                 143
                                                  -----------------    -----------------
         Total current assets                                1,440               1,420
                                                  -----------------    -----------------
PROPERTY, PLANT AND EQUIPMENT,
   at cost, net of accumulated depreciation                    592                 628
                                                  -----------------    -----------------
                                                            $2,032              $2,048
                                                  =================    =================

                         LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
     Short-term borrowings                                  $9,246              $8,617
     Accounts payable                                          833                 885
     Note payable under Recapitalization Plan                2,286               2,173
     Net due to related parties                              2,639               2,505
     Notes payable                                           1,104                 962
     Accrued liabilities                                     1,298               1,044
                                                  -----------------    -----------------
         Total current liabilities                          17,406              16,186
                                                  -----------------    -----------------
COMMITMENTS AND CONTINGENCIES


MINORITY INTEREST                                            2,599               2,599

SHAREHOLDERS' EQUITY
    Common Stock                                            16,405              16,405
    Accumulated deficit                                    (35,450)            (33,957)
    Cumulative translation adjustments                       1,072                 815
                                                  -----------------    -----------------
           Total shareholders' deficit                     (17,973)            (16,737)
                                                  -----------------    -----------------
                                                            $2,032              $2,048
                                                  =================    =================

</TABLE>


                                       1
<PAGE>

                              GOLDEN SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)
                                   (unaudited)

<TABLE>
<CAPTION>

                                                   Three Months Ended                  Nine Months Ended
                                            --------------------------------   ---------------------------------
                                             Dec. 31, 1999    Dec. 31, 1998     Dec. 31, 1999     Dec. 31, 1998
                                            --------------    --------------   ---------------     -------------
<S>                                         <C>              <C>               <C>                 <C>
NET SALES                                         $1,479           $1,519            $3,686            $2,790

COST OF GOODS SOLD                                 1,014              873             2,446             1,845
                                            --------------    --------------   ---------------     -------------
    Gross Profit                                     465              646             1,240               945
                                            --------------    --------------   ---------------     -------------

OPERATING EXPENSES:
  Selling,  general and administration               397              351             1,079             1,018
  Research and development                            83               84               272               253
                                            --------------    --------------   ---------------     -------------
                                                     480              435             1,351             1,271

                                            --------------    --------------   ---------------     -------------
    Operating Profit (Loss)                          (15)             211              (111)             (326)
                                            --------------    --------------   ---------------     -------------

OTHER INCOME (EXPENSE):
  Interest expense                                  (475)            (461)           (1,383)           (1,387)
  Foreign currency transaction gains (losses)        (11)              58                (5)              152
  Gain on sale of subsidiary                         ---              ---               ---                61

  Other income                                         5                1                 7                16
                                            --------------    --------------   ---------------     -------------
                                                    (481)            (402)           (1,381)           (1,158)
                                            --------------    --------------   ---------------     -------------
    Loss before provision for
        income taxes                                (496)            (191)           (1,492)           (1,484)

PROVISION FOR INCOME TAXES                           ---              ---                 1                 1
                                            --------------    --------------   ---------------     -------------
NET LOSS                                           $(496)           $(191)          $(1,493)          $(1,485)
                                            ==============    ==============   ===============     =============
BASIC LOSS PER SHARE                              $(0.09)          $(0.04)           $(0.28)           $(0.28)
                                            ==============    ==============   ===============     =============

WEIGHTED AVERAGE NUMBER OF
     OUTSTANDING SHARES                            5,300            5,300             5,300             5,300
                                            ==============    ==============   ===============     =============

</TABLE>


                                       2
<PAGE>

                              GOLDEN SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                          Nine Months Ended
                                                                  ---------------------------------
                                                                   Dec. 31, 1999     Dec. 31, 1998
                                                                  ---------------   ---------------
<S>                                                               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                 $(1,493)          $(1,485)
Adjustments to reconcile net loss to
   net cash used in operating activities:
     Depreciation  and amortization expense                                   55                38
     Provision for losses on accounts receivable                             111                96
     Provision for losses on inventories                                     ---                45

     Decrease (increase) in:
          Accounts receivable                                               (254)               27
          Inventories                                                         34               141
          Prepaid expenses and other current assets                            4               (19)
     Increase (decrease) in:
          Accounts payable                                                   (34)             (448)
          Accrued liabilities                                              1,384             1,395
                                                                  ---------------   ---------------
               Net cash used in operating activities                        (193)             (210)
                                                                  ---------------   ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of property, plant and equipment                               (34)              (59)
                                                                  ---------------   ---------------
               Net cash provided by (used in)
                  investing activities                                       (34)              (59)
                                                                  ---------------   ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Net change in related party balances                                    163               530
                                                                  ---------------   ---------------
               Net cash provided by financing activities                     163               530
                                                                  ---------------   ---------------

EFFECT OF EXCHANGE RATE CHANGES ON
   CASH AND CASH EQUIVALENTS                                                  (7)             (318)

                                                                  ---------------   ---------------
NET DECREASE IN CASH AND
   CASH EQUIVALENTS                                                          (71)              (57)

CASH & CASH EQUIVALENTS, beginning of period                                 117                79
                                                                  ---------------   ---------------
CASH & CASH EQUIVALENTS, end of period                                       $46               $22
                                                                  ===============   ===============

</TABLE>


                                       3
<PAGE>

                              GOLDEN SYSTEMS, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

================================================================================


NOTE 1.           GENERAL

                  In management's opinion, all adjustments, which are necessary
for a fair presentation of financial condition and results of operations, are
reflected in the accompanying interim consolidated financial statements. All
such adjustments are of a normal recurring nature. All amounts are unaudited,
except the March 31, 1999 balance sheet. This report should be read in
conjunction with the audited consolidated financial statements, notes, and
disclosures presented in the Company's 1999 Annual Report on Form 10-K.
Footnotes and other disclosures which would substantially duplicate the
disclosures in the Company's audited financial statements for fiscal year 1999
contained in the Company's 1999 Annual Report on Form 10-K, have been omitted.
The interim financial information herein is not necessarily representative of
operations for a full year.

NOTE 2.           RISKS AND BASIS OF PRESENTATION

         Results of operations for the quarter and nine months ended
December 31, 1999 have been determined assuming that the Company will continue
as a going concern. However, the Company is currently facing significant issues
which raise substantial doubt that the Company has the ability to continue as
a going concern. These issues are summarized as follows:

         -    At December 31, 1999, the Company had outstanding amounts due to
              four separate Indian lenders in the amount of $10,350,000, all of
              which are currently in default. Of that amount, three banks have
              issued notices to the Company demanding immediate repayment of
              $9,246,000. At March 31, 2000, the amount due to the banks was
              approximately $9.5 million. The Company has insufficient funds
              available to repay the banks. Because the Indian debt is secured
              by the assets of Ultra Tek, alternatives available to the banks
              include closing the operations of Ultra Tek and forcing Ultra Tek
              into liquidation.

         -    In fiscal 1995, Ultra Tek's importing of computer components into
              India came under investigation by the Indian customs authorities.
              In September 1997, the Indian customs authorities issued a
              separate "show cause" notice alleging that Ultra Tek has not
              provided valid explanations for shortages of imported raw material
              in its inventories. In fiscal 1997, Ultra Tek came under the
              investigation of the Indian Department of Revenue Intelligence
              concerning the import and export of certain components used in the
              manufacture of power supplies and customer returned product.
              Subsequently, a separate "show cause" notice was issued requesting
              explanation of why duties should not be assessed. The above
              governmental allegations and investigations could lead to
              additional duty and penalties being assessed against Ultra Tek in
              the amount of $2.5 million (106,474,000 Indian rupees), using the
              Indian rupee translation rate at January 31, 2000,and penal action
              being initiated against Ultra Tek. In addition, penal action under
              Indian law, which the Company believes is very unlikely, could
              result in possible monetary fines of up to a maximum of $16.9
              million. The Company is contesting these allegations, but
              currently, the matters are unresolved and the outcomes uncertain.


                                       4
<PAGE>

         -    The Company has incurred significant losses from operations over
              the past five fiscal years and nine months ended December 31,
              1999; has lost its two main historical customers, which has
              significantly impacted its revenues; and at December 31, 1999, had
              a shareholders' deficit of $18,081,000. During fiscal 2000, the
              Company continued to incur significant losses, and management has
              not successfully executed on its efforts to achieve profitable
              operations and positive cash flows. Outside of related party
              financing, the Company has identified no viable source of
              financing.

Due to the significance of these factors in the Company's financial statements
at December 31, 1999, all assets have been stated at their estimated realizable
values. Costs of resolving the contingencies noted above or settling amounts due
to Indian banks or Company creditors have not been recorded as management is
currently unable to estimate these amounts. Accounts receivable and inventories
were valued at their subsequently realized amounts (inventories at cost), and
property, plant and equipment were valued based on estimates by management and
in accordance with the guidelines of Statement of Financial Accounting Standards
No. 121 "Accounting for Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of" ("SFAS 121"). The estimated realizable values and
settlement amounts may be different from the proceeds ultimately received or
payments made.


NOTE 3.       INVENTORIES

         Inventories are valued at the lower of cost (first in, first out) or
market. Cost includes cost of material, freight and manufacturing overhead.
Inventories consist of the following (in thousands):

<TABLE>
<CAPTION>

                                                Dec. 31, 1999          March 31, 1999
                                                -------------          --------------
                      <S>                       <C>                    <C>
                      Raw materials                   $182                     $359
                      Work-in-progress                 328                      156
                      Finished goods                    68                       97
                                                -------------          --------------
                                                      $578                     $612
                                                =============          ==============
</TABLE>

NOTE 4.       COMMITMENTS AND CONTINGENCIES

         a)       LEASES

         GSI leased its corporate headquarters from a related party under a
         three year operating lease which expired in December 1999. The Company
         is currently renting space on a month-to-month basis. Ultra Tek leases
         certain factory premises from the Indian Government under operating
         leases which expire at various dates through October 2000. Future
         minimum payments under these and other various operating leases are as
         follows (in thousands):

<TABLE>
<CAPTION>

                  Year ending March 31:
                  ---------------------
                         <S>                            <C>
                         2000 (three months)               22
                         2001                              27
                         2002                               -
                         2003                               -
                         2004                               -
                                                        -----
                                                        $  49
                                                        =====

</TABLE>


                                       5
<PAGE>

         b)       LITIGATION

         The Company is subject to lawsuits in the normal course of business. In
         the opinion of management and legal counsel to the Company, pending
         litigation will not result in a material loss to the Company.

         c)       CONTINGENCIES

         During fiscal year 1995, the Company's imports of computer components
         for final assembly and sale into the domestic tariff area (DTA) of
         India (outside the SEEPZ) came under investigation by the Indian
         customs authorities. As a result, Company inventories of $1,088,000
         (47,447,000 in Indian rupees) were seized by the authorities. On
         May 30, 1995, the authorities issued a notice to the Company alleging
         misdeclaration of purported imports of complete computer systems as
         imports of computer system components. The notice calls upon the
         Company to explain why the authorities should not (a) confiscate all
         the goods so imported, (b) levy additional duty of $1,121,000
         (48,885,000 in Indian rupees) on the goods already sold into the DTA,
         and (c) take penal action against the Company under the law. The
         Company paid an advance of $700,000 (20,000,000 in Indian rupees)
         against customs duty that may ultimately be levied by the authorities
         and recorded this amount in "cost of goods sold" in fiscal 1995. During
         fiscal 1996, the authorities released the seized goods. However,
         because of difficulties encountered in re-exporting the goods and
         technological obsolescence, the entire amount of the seized goods has
         been included in the inventory reserve amounts at December 31, 1999. No
         other penalties or expenses related to this government action have been
         incurred by the Company.

         In September 1997, the Indian customs authorities issued a "show cause"
         notice alleging that Ultra Tek has not provided valid explanations for
         shortages of raw material in its inventories. The notice called upon
         the Company to explain why the authorities should not (a) impose duty
         of $590,000 (25,725,000 in Indian rupees) leviable on imported
         components which were alleged not accounted for in the terms of bond
         executed, (b) why penal action should not be initiated against the
         Company, and (c) why a penalty equal to the duty held to be leviable,
         $590,000 (25,725,000 in Indian rupees), in respect of unaccounted goods
         should not be imposed.

         In fiscal 1997, the Company came under investigation by the Indian
         Department of Revenue Intelligence (DRI) in connection with the import
         and export of certain components and goods used in the manufacture of
         power supplies and customer returns. The investigation focused on the
         alleged discrepancy noted between the physical stock records and books,
         in respect of the work-in-process inventory at March 31, 1996 and 1997
         and customer returned product at March 31, 1992 through March 31, 1997.
         In May 1998, the DRI issued a "show cause" notice requesting that the
         Company explain why the DRI should not impose duties of approximately
         $590,000 (25,720,000 in Indian rupees). Penalties relating to the
         investigation, if any, have not yet been determined.

         The aggregate of threatened duties and penalties to the Company is
         approximately $2,442,000, using the Indian rupee translation rate at
         January 31, 2000. Although the Company is contesting the allegations of
         the authorities, the outcome of these matters is uncertain at this
         time. Accordingly, no additional provisions for any losses that may
         ultimately result have been made in these financial statements. In
         addition, penal action under Indian law, which the Company believes is
         very unlikely, could result in possible monetary fines of up to
         $16,897,000 at January 31, 2000.


                                       6
<PAGE>

                              GOLDEN SYSTEMS, INC.

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

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

GENERAL

         Any forward looking statements made in this Form 10-Q report involve
risks and uncertainties. The Company's future financial results could differ
materially from those anticipated due to the Company's dependence on conditions
in the electronics industry, level of consumer demand for products containing
the Company's power supply components, competitive pricing pressures, technology
and product development risks and uncertainties, product performance, increasing
consolidation of customers and suppliers in the electronics industry, and other
factors beyond the Company's control.

RESULTS OF OPERATIONS

         OVERVIEW
         As has been previously reported, the Company's operations and cash flow
were significantly impacted by the product rejection that took place during the
third quarter of fiscal 1995. Those returns cost the Company $4.2 million in
uncollected accounts receivable as a result of the issuance of credits for the
rejected units and $2.2 million relating to other direct costs, as well as
additional costs for transportation, unutilized capacity, business interruption,
reorganization, inventory carrying costs, and interest on short-term borrowings.

         In fiscal 1996, the Company implemented a program to overcome its cash
difficulties by reducing inventory, organizational restructuring, price
increases, volume growth and more favorable payment terms from the Company's
existing customers. While a number of elements of that program were successfully
implemented, the Company has not been able to generate anticipated amounts of
cash from inventory reduction and, to date, has been unsuccessful in its efforts
to resell any significant number of units of the reworked rejected product. In
addition, the Company has not been successful, to date, in significantly
building its sales volumes to its existing customers or to new customers. While
the Company has implemented a plan to transition its business focus to power
supplies for products that are less price sensitive and therefore provide a
greater opportunity to develop positive profit margins, it has not been
successful in doing so. There can be no assurance that the Company will have
sufficient resources to carry out its plan in the future, or even if the
resources are available, that the Company will be able to successfully develop
the necessary customer relationships and obtain the product contracts to allow
it to continue to operate its business. In light of these facts, and the
operating results discussed below, the Company continues to look at
opportunities to obtain additional capital from sources outside the Company and
at transactions that would change it's fundamental structure.

         In summary, the Company suffered a considerable decline in cash flow
during the five fiscal years ended March 31, 1999 and during the nine months
ended December 31, 1999. At December 31, 1999, the Company had negative working
capital of $15,966,000


                                       7
<PAGE>

and an accumulated deficit of $35,558,000. Subsequent to December 31, 1999, the
Company continues to experience negative cash flow as a result of continuing
losses and working capital required to ramp-up production in India. While
current action is being taken to develop a viable operating plan to increase
sales and renegotiate the terms of certain short-term obligations with the
Indian banks, there can be no assurance that any of these actions will be
successfully completed.

         THIRD QUARTER OF FISCAL YEAR 2000

         Gross profit on third quarter sales was $465,000 compared to a gross
profit of $646,000 for the third quarter of fiscal year 1999. This decrease in
gross margin is due principally to the occurrence of some very high margin
specialty sales in the prior year, which did not recur in the current period, a
reduction in margin rates on shipments to the Company's largest customer and
increased freight expense resulting from an increase in the number of smaller
shipments from the Company's manufacturing facility in Mumbai, India.

         Foreign currency transaction losses were $11,000 for the three months
ended December 31, 1999, compared to gains of $58,000 for the same period in
1998. This change is due principally to the relative stability of the value of
the Indian rupee in relation to the U. S. dollar during the current period.

         Net loss for the third quarter ended December 31, 1999 was $496,000
compared to a net loss of $191,000 for the same period in the prior year. The
significant reasons for the increased loss are set forth in the foregoing
discussion.

         NINE MONTHS OF FISCAL YEAR 2000

         For the nine months ended December 31, 1999, net sales were $3,686,000
compared to $2,790,000 for the same period in fiscal 1999. This 32% increase is
due principally to an increase in demand for adapters being shipped to the
Company's largest customer, during the first half of fiscal 2000.

         Gross profit for the first nine months of fiscal 2000 was $1,240,000
compared to $945,000 for the same period in fiscal 1999. This 31% improvement is
due primarily to the increase in sales volume and improved sales margins.

         Foreign currency transaction losses were $5,000 for the first nine
months of fiscal 2000 compared to a gain of $152,000 in the comparable period.
As in the third quarter, this change is due principally to the relative
stability of the Indian rupee in relation to the U.S. dollar, whereas in the
prior year, because of the weaker Indian rupee in relation to the U.S. dollar,
more rupees were being paid to satisfy U.S. dollar net receivables due to Ultra
Tek.

         The gain on sale of subsidiary company of $61,000 during the nine
months ended December 31, 1998, represents the recovery of an account receivable
by Ultra Tek, the Company's manufacturing subsidiary in India. At the time the
Sri Lanka company was sold in the fourth quarter of fiscal 1998, the receivable
resulting from the sale of equipment was thought to be uncollectible and
consequently written off in computing the net gain on sale of the Sri Lanka
subsidiary. During the first quarter of fiscal 1999, the


                                       8
<PAGE>

new owner of the Sri Lanka company returned the equipment to Ultra Tek in full
satisfaction of its obligation.

         Net loss for the nine months ended December 31, 1999 was $1,493,000
compared to a net loss of $1,485,000 for the same period in the prior year. The
significant reasons for the reduction in the net loss are set forth in the
foregoing discussion.


LIQUIDITY AND CAPITAL RESOURCES

         OPERATING ACTIVITIES

         During the nine months ended December 31, 1999, the Company used
$193,000 in cash in operating activities. The major use of this cash is due to
the net loss from operations and an increase in accounts receivable, offset in
part by depreciation, a reserve for losses on accounts receivable and an
increase in accrued liabilities, a significant element of which is the accrued
interest on outstanding loan balances.

         INVESTING ACTIVITIES

         Cash used in investing activities during the first nine months of
fiscal year 2000 was $34,000 due to the purchase of equipment.

         FINANCING ACTIVITIES

         Cash provided in the first nine months of fiscal year 2000 from
financing activities was $163,000, resulting from a net increase in related
party payable balances, which is due primarily to accrued interest on related
party loans to the Company.

         For the nine months ended December 31, 1999, the Company consumed
$71,000 in cash, decreasing the $117,000 cash balance at the beginning of the
period to $46,000 at December 31, 1999. At March 31, 2000 the Company had a cash
balance of $249,000. Outside of related party financing, the Company has
identified no viable source of financing. While current actions are being taken
to implement a viable operating plan to increase sales, renegotiate the terms of
certain short-term obligations with three Indian banks and raise additional
capital, there can be no assurance that any of these actions will be
successfully completed.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

           Inapplicable


                                       9
<PAGE>



                          PART II -- OTHER INFORMATION



ITEM 3.           DEFAULTS UPON SENIOR SECURITIES.

                  At December 31, 1999, the Company had outstanding amounts due
                  to four separate Indian lenders in the amount of $10,350,000,
                  all of which are currently in default because of non-payment
                  of principal. Of that amount, three banks have issued notices
                  to the Company demanding immediate repayment of $9,246,000. At
                  March 31, 2000, the amount due was approximately $9.5 million.
                  The Company has insufficient funds available to repay the
                  banks. Because the Indian debt is secured by the assets of
                  Ultra Tek, alternatives available to the banks include closing
                  the operations of Ultra Tek and forcing Ultra Tek into
                  liquidation.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                  (a)      EXHIBITS

                                 Exhibit 27.  Financial Data Sheet

                  (b)      REPORTS ON FORM 8-K

                                 No reports on Form 8-K were filed during the
                           three month period ended December 31, 1999.


                                       10
<PAGE>

                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                            GOLDEN SYSTEMS, INC.




                                    By:     /s/ Jawahar L. Tandon
                                            ---------------------------------
                                            Jawahar L. Tandon
                                            CHIEF EXECUTIVE OFFICER
                                            (DULY AUTHORIZED OFFICER OF THE
                                            REGISTRANT)




                                    By:     /s/ Harvey A. Marsh
                                            ---------------------------------
                                            Harvey A. Marsh
                                            VICE PRESIDENT, CHIEF FINANCIAL
                                            OFFICER
                                            (DULY AUTHORIZED OFFICER OF THE
                                            REGISTRANT)



                                    Date:     May 31, 2000
                                            ---------------------------------


                                       11