<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
                                  JUNE 30, 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
                                                                                       ------
<S>                                                                                    <C>
                                     PART I
                             FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

         Consolidated Balance Sheets as of June 30, 1999 (unaudited) and March 31,
         1999.                                                                            1

         Consolidated Statements of Operations (unaudited) for the three months
         ended June 30, 1999 and June 30, 1998.                                           2

         Consolidated Statements of Cash Flows (unaudited) for the three months
         ended June 30, 1999 and June 30, 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>
                                                   June 30, 1999      March 31, 1999
                                                  ---------------    ----------------
                                                   (unaudited)
<S>                                               <C>                <C>
                                    ASSETS

CURRENT ASSETS:
    Cash and cash equivalents                             $60                $117
    Accounts receivable, net of allowances                596                 548
    Inventories                                           572                 612
    Prepaid expenses and other current assets             120                 143
                                                     --------            --------
         Total current assets                           1,348               1,420
                                                     --------            --------

PROPERTY, PLANT AND EQUIPMENT,
    at cost, net of accumulated depreciation              603                 628
                                                     --------            --------
                                                       $1,951              $2,048
                                                     ========            ========


                         LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
     Short-term borrowings                             $8,741              $8,617
     Accounts payable                                     787                 885
     Note payable under Recapitalization Plan           2,211               2,173
     Net due to related parties                         2,562               2,505
     Notes payable                                        993                 962
     Accrued liabilities                                1,160               1,044
                                                     --------            --------
         Total current liabilities                     16,454              16,186
                                                     --------            --------

COMMITMENTS AND CONTINGENCIES

MINORITY INTEREST                                       2,599               2,599

SHAREHOLDERS' EQUITY
    Common Stock                                       16,405              16,405
    Accumulated deficit                               (34,535)            (33,957)
    Cumulative translation adjustments                  1,028                 815
                                                     --------            --------
           Total shareholders' deficit                (17,102)            (16,737)
                                                     --------            --------
                                                       $1,951              $2,048
                                                     ========            ========
</TABLE>


                                       1



<PAGE>


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

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                  ---------------------------------

                                                   June 30, 1999     June 30, 1998
                                                  ---------------   ---------------
<S>                                               <C>               <C>
NET SALES                                                $988             $777

COST OF GOODS SOLD                                        650              536
                                                     --------         --------
    Gross profit (loss)                                   338              241
                                                     --------         --------

OPERATING EXPENSES:
  Selling,  general and administration                    347              311
  Research and development                                101               78
                                                     --------         --------
                                                          448              389
                                                     --------         --------
    Operating loss                                       (110)            (148)
                                                     --------         --------

OTHER INCOME (EXPENSE):
  Interest expense                                       (481)            (463)
  Foreign currency transaction gains (losses)               8               (7)
  Gain on sale of subsidiary company                      ---               61
  Other income (expense)                                    5               13
                                                     --------         --------
                                                         (468)            (396)
                                                     --------         --------
    Loss before provision for income taxes               (578)            (544)

PROVISION FOR INCOME TAXES                                ---              ---
                                                     --------         --------
NET LOSS                                                $(578)           $(544)
                                                     ========         ========

BASIC LOSS PER SHARE                                   $(0.11)          $(0.10)
                                                     ========         ========

WEIGHTED AVERAGE NUMBER OF
     OUTSTANDING SHARES                                 5,300            5,300
                                                     ========         ========
</TABLE>


                                       2



<PAGE>


                              GOLDEN SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                  --------------------------------
                                                   June 30, 1999     June 30, 1998
                                                  ---------------   ---------------
<S>                                               <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                               $(578)           $(544)
Adjustments to reconcile net loss to
  net cash used in operating activities:
    Depreciation  and amortization expense                 23               10
    Provision for losses on accounts receivable            15               40
    Provision for losses on inventories                   ---               15
    Decrease (increase) in:
      Accounts receivable                                 (63)             190
      Inventories                                          29               78
      Prepaid expenses and other current assets            21              (17)
    Increase (decrease) in:
      Accounts payable                                    (83)              26
      Accrued liabilities                                 518              462
                                                     --------         --------
        Net cash used in (provided by)
          operating activities                           (118)             260
                                                     --------         --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property, plant and equipment              (11)             (51)
                                                     --------         --------

        Net cash used in investing activities             (11)             (51)
                                                     --------         --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net change in related party balances                     81               69
                                                     --------         --------

        Net cash provided by financing activities          81               69
                                                     --------         --------

EFFECT OF EXCHANGE RATE CHANGES ON
  CASH AND CASH EQUIVALENTS                                (9)            (263)

                                                     --------         --------
NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                        (57)              15

CASH & CASH EQUIVALENTS, beginning of period              117               79
                                                     --------         --------
CASH & CASH EQUIVALENTS, end of period                    $60              $94
                                                     ========         ========
</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 ended June 30, 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 June 30, 1999, the Company had outstanding amounts due to
             four separate Indian lenders in the amount of $9,734,000, all of
             which are currently in default. Of that amount, three banks have
             issued notices to the Company demanding immediate repayment of
             $8,741,000. 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 quarter ended June 30, 1999; has
             lost its two main historical customers, which has significantly
             impacted its revenues; and at June 30, 1999, had a shareholders'
             deficit of $17.1 million. 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 June 30, 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>
                                    June 30, 1999              March 31, 1999
                                    -------------              --------------
<S>                                 <C>                        <C>
             Raw materials                   $283                         $359
             Work-in-progress                 198                          156
             Finished goods                    91                           97
                                    -------------              ---------------
                                             $572                         $612
                                    =============              ===============
</TABLE>


NOTE 4.       COMMITMENTS AND CONTINGENCIES

         a)       LEASES

         GSI leased its corporate headquarters from a related party under a
         three year operating lease until the lease expired in December 1999.
         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 (nine months)                         $ 65
                    2001                                         27
                    2002                                          -
                    2003                                          -
                    2004                                          -
                                                               ----
                                                               $ 92
                                                               ====
</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 June 30, 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 quarter ended
June 30, 1999. At June 30, 1999, the Company had negative working capital of
$15,106,000 and an


                                       7



<PAGE>

accumulated deficit of $34,535,000. Subsequent to June 30, 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.

         FIRST QUARTER OF FISCAL YEAR 2000

         Sales for the three months ended June 30, 1999 were $988,000 compared
to $777,000 for the same quarter in the prior year. This increase in sales of
27% is due principally to increased shipments to the Company's largest customer.

         Gross profit on first quarter sales was $338,000 compared to a gross
profit of $241,000 for the first quarter in fiscal year 1999. This increase in
gross profit was due to the aforementioned increase in sales as well as a
significant increase in gross margins on those sales.

         Selling, general and administrative expenses for the first quarter of
fiscal year 2000 were $347,000 compared to $311,000 or an increase of 12%. This
increase is due primarily to the addition of a sales representative and general
cost increases.

         Research and development expenses for the current quarter were $101,000
as compared to $78,000 for the first quarter of fiscal year 1999. This increase
is primarily due to an increase in product safety certification fees related to
product development.

         Net loss for the first quarter ended June 30, 1999 was $578,000
compared to a net loss of $544,000 for the same period in the prior year. The
significant reasons for the increased loss are set forth in the foregoing
discussion.


                                       8



<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

         OPERATING ACTIVITIES

         During the three months ended June 30, 1999, the Company used $118,000
in cash in operating activities. The major use of this cash is due to the net
loss from operations and increase in accounts receivable and decrease in
accounts payable offset in part by 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 quarter of fiscal
year 2000 was $11,000 resulting from the purchase of equipment.

         FINANCING ACTIVITIES

         Cash provided in the first quarter of fiscal year 2000 from financing
activities was $81,000, resulting from a net increase in the related party
payable balances, which is due primarily to accrued interest on related party
loans to the Company.

         For the quarter ended June 30, 1999, the Company used $57,000 in cash,
decreasing the $117,000 cash balance at the beginning of the period to $60,000
at June 30, 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 June 30, 1999, the Company had outstanding amounts due to
                  four separate Indian lenders in the amount of $9,734,000, all
                  of which are currently in default because of nonpayment of
                  principal. Of that amount, three banks have issued notices to
                  the Company demanding immediate repayment of $8,741,000. 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.

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 June 30, 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