<PAGE>

                        SECURITIES & EXCHANGE COMMISSION

                              Washington, DC 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarter ended October 31, 1999
Commission File Number 1-4124


                            JETRONIC INDUSTRIES, INC.
                            -------------------------
             (Exact name of registrant as specified in its charter)


        Pennsylvania                                    23-1364981
-------------------------------                    -------------------
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                     Identification No.)


                  4200 Mitchell Street, Philadelphia, PA 19128
                  --------------------------------------------
               (Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code  (215) 482-7660
                                                    --------------

Indicate by checkmark 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 requirements
for the past 90 days. Yes  X   No     .
                         -----   -----

At October 31, 1999, 3,701,999 shares of common stock were outstanding.



<PAGE>



                                     PART I



ITEM 1

CONSOLIDATED FINANCIAL STATEMENTS OF THE REGISTRANT AND ITS SUBSIDIARIES


The following Consolidated Balance Sheets, Consolidated Statements of
Operations, Consolidated Statements of Changes in Shareholders' Equity and
Consolidated Statements of Cash Flows are unaudited. In the opinion of
management, all adjustments, consisting only of normal recurring adjustments,
necessary for a fair statement of results for the interim periods have been
included. Results of operations for interim periods are not necessarily
indicative of a full year's operations. The aforementioned statements should be
read in conjunction with the annual report on Form 10-K for the fiscal year
ended January 31, 1999.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

Certain forward looking statements contained herein are based on current
expectations. Actual results may differ materially from the results described in
such forward looking statements due to, but not limited to, the following
factors: the effect of general business conditions, the impact of competitive
products and pricing, product development and technological difficulties.



<PAGE>



ITEM 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Results of operations:

In the following commentary, "operating profit" is total revenue less operating
expenses. In computing operating profit, none of the following items has been
added or deducted: general corporate expenses, corporate interest expense,
corporate interest income and income taxes.

The Company reported revenues of $17,852,000 and an operating profit of
$2,634,000 for the nine months ended October 31, 1999 (2000) compared to
revenues of $18,085,000 and an operating profit of $2,979,000 for the nine
months ended October 31, 1998 (1999). Revenues and operating profit for the
quarter ended October 31, 1999 were $7,093,000 and $1,118,000, respectively,
compared to revenues and operating profit for the quarter ended October 31, 1998
of $5,549,000 and $1,211,000, respectively. While revenues and profitability
increased for the switchgear business on a year to year and quarter to quarter
basis, revenues and profitability for the solid state and computer subsystem
businesses were negatively impacted by softness in these sectors. Although there
continues to be softness in these markets in the fourth quarter, the outlook for
the new fiscal year appears to show a return to prior levels of business
activity which should enable these operations to return to their former levels
of revenue and profitability.

The Company received additional orders against the final option quantities under
an existing U.S. Government contract which was completed by the end of the third
quarter of this fiscal year. Although no further option quantities are available
under the existing contract, the Company anticipates that a new contract will be
negotiated for subsequent years for the same type of product and under similar
terms.

Interest and debt expense increased as a result of the amortization of
capitalized fees associated with the Company's refinancing in May 1999 and the
restructuring of Bondholder debt coincident with the refinancing. Additionally,
increased borrowings from lenders increased interest expense.

Liquidity and Capital Resources:

During FY 2000 and FY 1999 the operations of the Company and its subsidiary were
financed by a lending institution under various formulae which provide operating
funds as required. Such borrowings are primarily in the form of short-term
loans, secured by assignment of accounts receivable and inventories. Under the
various formulae, borrowings are limited to varying percentages and maximum
dollar amounts of accounts receivable and inventories with a maximum limitation
of $6,500,000. As of October 31, 1999, such borrowings amounted to $3,681,000
with a limitation of borrowing based upon the various formulae of $4,189,000.
The Company's line of credit agreement with its current lender expires in May
2001.


<PAGE>



MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS - (continued):



The Company has not made certain payments of interest to the holders of its
subordinated debentures which constitutes a technical event of default giving
such holders the right, upon notice, demand and failure to cure, to accelerate
the payment of principal and accrued interest due to such holders and which,
among other things, is a technical event of default under the terms of the
Company's agreements with its senior lender. The Company expects that these
matters will be resolved in discussions with such lenders.

At this time, there are no material commitments for capital expenditures. Cash
requirements for the current fiscal year should increase by ten percent due to
the anticipated increase in business activity. Based upon the availability of
funds under its existing financing arrangements, the Company deems its liquidity
to be adequate.

Year 2000 issue:

The Company is proactive in relation to issues surrounding compliance with the
date change from 1999 to 2000 and its effect on its computer systems and those
of its associated businesses. The Company has completed the process of reviewing
its computer systems for compliance for year 2000 issues. Relationships with
interdependent computer systems are currently being addressed and compliance is
expected by the end of the fourth quarter FY 2000. The Company does not expect
that the costs of implementing compliance with Year 2000 issues to have a
material effect on its consolidated financial statements. In the event that its
interdependent computer relationships are not Year 2000 compliant, the Company
has alternative plans to alleviate such situations based on the close proximity
of facilities.



<PAGE>

                            JETRONIC INDUSTRIES, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
                                 (000's Omitted)
<TABLE>
<CAPTION>
                                                               October 31, 1999       January 31, 1999
                                                               ----------------       ----------------
<S>                                                             <C>                       <C>
                                     ASSETS

Current assets:
    Cash                                                           $       56             $      495
    Accounts receivable                                                 4,570                  2,775
    Inventories                                                         9,859                  7,569
    Prepaid and other assets                                            1,980                  1,951
                                                                   ----------             ----------
         Total current assets                                          16,465                 12,790
Property, plant and equipment, net                                        411                    377
Goodwill                                                                  273                    280
Other assets                                                            1,456                  1,764
                                                                   ----------             ----------
         Total assets                                              $   18,605             $   15,211
                                                                   ==========             ==========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Notes payable to lender                                         $   3,681              $   1,781
    Current portion of long-term debt                                   1,024                    976
    Accounts payable                                                    2,968                  1,482
    Other accrued liabilities                                             963                    825
                                                                   ----------             ----------
         Total current liabilities                                      8,636                  5,064
Deferred interest                                                       1,405                  1,405
Long-term debt                                                          5,387                  5,773
                                                                   ----------             ----------
         Total liabilities                                             15,428                 12,242
                                                                   ----------             ----------
Shareholders' equity:
    Preferred stock                                                        33                     33
    Common stock                                                          370                    370
    Capital in excess of par value                                     13,822                 13,822
    Retained earnings (deficit)                                       (11,048)               (11,256)
                                                                   ----------             ----------
         Total shareholders' equity                                     3,177                  2,969
                                                                   ----------             ----------
                                                                     $ 18,605               $ 15,211
                                                                   ==========             ==========
</TABLE>

See notes to consolidated financial statements.


<PAGE>



                            JETRONIC INDUSTRIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                 (000's Omitted)
<TABLE>
<CAPTION>
                                                                     Nine Months Ended October 31,
                                                                     -----------------------------
                                                                      1999                   1998
                                                                      ----                   ----
<S>                                                                <C>                   <C>
Net sales                                                           $  17,852              $  18,085

Cost and expenses:
    Cost of goods sold                                                 14,314                 14,081
    Selling and administrative expenses                                 2,069                  2,099
    Interest and debt expenses                                          1,261                    962
                                                                    ---------              ---------
    Total costs and expenses                                           17,644                 17,142
                                                                    ---------              ---------
Income before income taxes                                                208                    943
Income tax provision                                                                              46
                                                                    ---------              ---------
Net income                                                          $     208              $     897
                                                                    =========              =========
Net income per share (A):
    Basic                                                           $     .05              $     .25
                                                                    =========              =========
    Diluted                                                         $     .05              $     .22
                                                                    =========              =========
</TABLE>



Notes:

A)  Weighted average number of shares for the nine months ended October 31, 1999
    and 1998 was 3,702,000 and 3,634,000, respectively for basic and 4,198,000
    and 3,986,000, respectively for diluted.

See notes to consolidated financial statements.



<PAGE>

                            JETRONIC INDUSTRIES, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                 (000's Omitted)
<TABLE>
<CAPTION>
                                                                     Three Months Ended October 31,
                                                                     ------------------------------
                                                                       1999                   1998
                                                                       ----                   ----
<S>                                                                 <C>                    <C>
Net sales                                                           $   7,093              $   5,549

Cost and expenses:
    Cost of goods sold                                                  5,636                  4,000
    Selling and administrative expenses                                   812                    718
    Interest and debt expenses                                            447                    369
                                                                    ---------              ---------
    Total costs and expenses                                            6,895                  5,087
                                                                    ---------              ---------
Income before income taxes                                                198                    462
Income tax provision                                                                              22
                                                                    ---------              ---------
Net income                                                          $     198              $     440
                                                                    =========              =========
Net income per share (A):
    Basic                                                           $     .05              $     .12
                                                                    =========              =========
    Diluted                                                         $     .05              $     .11
                                                                    =========              =========
</TABLE>


Notes:

A)  Weighted average number of shares for the three months ended October 31,
    1999 and 1998 was 3,702,000 and 3,634,000, respectively for basic and
    4,198,000 and 3,986,000, respectively for diluted.


See notes to consolidated financial statements.



<PAGE>



                            JETRONIC INDUSTRIES, INC.
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                                   (Unaudited)
                                 (000's Omitted)
<TABLE>
<CAPTION>
                                                                                  Capital in         Retained
                                  Preferred            Common Stock               excess of          earnings
                                    Stock          Shares        Amount           par value          (deficit)             Total
                                    -----          ------        ------           ---------          ---------             -----
<S>                              <C>            <C>             <C>               <C>                <C>                  <C>
Balance, January 31, 1998                        3,604,499        $361             $12,569           ($11,974)            $   956

Issuance of common stock                            97,500           9                 104                                    113

Issuance of warrants                                                                 1,149                                  1,149

Issuance of preferred stock         $  33                                                                                      33
Net income, year ended
   January 31, 1999                                                                                       718                 718
                                    -----        ----------       ----             -------           --------             -------
Balance, January 31, 1999              33         3,701,999        370              13,822            (11,256)              2,969

Net income nine months
   ended October 31, 1999                                                                                 208                 208
                                    -----        ----------       ----             -------           --------             -------

Balance, October 31, 1999           $  33         3,701,999       $370             $13,822           ($11,048)            $ 3,177
                                    =====        ==========       ====             =======           ========             =======

</TABLE>



See notes to consolidated financial statements.


<PAGE>



                            JETRONIC INDUSTRIES, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (000's Omitted)
<TABLE>
<CAPTION>
                                                                     Nine Months Ended October 31,
                                                                     -----------------------------
                                                                      1999                   1998
                                                                      ----                   ----
<S>                                                                <C>                    <C>
Cash flows from operating activities:
    Net income                                                      $    208               $    897
    Adjustments to reconcile net income
       to net cash provided (used) by
       operating activities:
       Depreciation and amortization                                      82                     87
       Reduction of goodwill                                               7                      8
       Changes in assets and liabilities:
          Accounts receivable                                         (1,795)                (   60)
          Inventories                                                 (2,290)                (  496)
          Prepaid and other assets                                    (   29)                (   37)
          Other assets                                                   308                 (  677)
          Accounts payable                                             1,486                 (1,265)
          Other liabilities                                              138                 (  100)
                                                                    --------               --------
          Total adjustments                                           (2,093)                (2,540)
                                                                    --------               --------
              Net cash provided (used) by
                 operating activities                                 (1,885)                (1,643)
                                                                    --------               --------
Cash flows from investing activities:
    Capital expenditures                                              (  116)                (   46)
                                                                    ---------              --------
Cash flows from financing activities:
    Proceeds from long-term debt                                                              2,930
    Net borrowings from lenders                                        1,900                 (  817)
    Principal payments on long-term debt                             (   338)                (  580)
    Proceeds from exercise of warrants                                                           60
                                                                    --------
              Net cash provided (used) by
                 financing activities                                  1,562                  1,593
                                                                    --------               --------
Net increase (decrease) in cash                                      (   439)                (   96)
Cash beginning of period                                                 495                    513
                                                                    --------               --------
Cash end of period                                                  $     56               $    417
                                                                    ========               ========
Supplemental disclosures of cash flow
    information:
    Interest paid during the period                                 $    547               $    682
                                                                    ========               ========
    Income taxes paid during the period                             $    -0-               $     30
                                                                    ========               ========
</TABLE>

See notes to consolidated financial statements.


<PAGE>

                            JETRONIC INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)
                                 (000's Omitted)




Note 1 - INVENTORIES

    Inventories, which are stated at the lower of cost or market, are summarized
as follows:

                                    October 31,1999        January 31, 1999
                                    ---------------        ----------------
    Raw materials                        $ 5,124                $ 4,309
    Work in process                        4,735                  3,260
                                         -------                -------
    Total                                $ 9,859                $ 7,569
                                         =======                =======



Note 2 - STATEMENT OF OPERATIONS

    Effective February 1, 1993, the Company changed its method of accounting for
    income taxes by adopting Statement of Financial Accounting Standards No. 109
    (SFAS No. 109). Under SFAS No. 109 the deferred tax provision is determined
    under the liability method. Deferred tax assets of $2,325, arising
    principally from net operating loss carryforwards, were partially offset by
    deferred tax liabilities and valuation allowance of $1,766 in accordance
    with guidelines established under SFAS No. 109. The Company will
    periodically review and adjust the valuation allowance as needed.

    Differences between the statutory federal income tax rate and the effective
tax rate are accounted for as follows

                                               Nine Months Ended October 31,
                                               ----------------------------
                                                1999                 1998
                                                ----                 ----

    Federal income tax rate                       34.0%                34.0%
    Tax effect of non-deductible expenses          5.0                  1.0
    NOL utilization under SFAS No. 109         (  46.2)             (  31.8)
    Difference in tax basis of assets              7.2                  0.7
    Other                                                               0.9
                                               -------              -------
    Effective income tax rate                      0.0%                 4.8%
                                               =======              =======


<PAGE>



                                     PART II


Items 1 thru 6(a) are not applicable.

Item 6(b) - There were no reports on Form 8-K filed for the quarter ended
October 31, 1999.













                                   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.


                            JETRONIC INDUSTRIES, INC.
                            -------------------------
                                   Registrant



                            -----------------------------
                            Leonard W. Pietrzak
                            Vice President - Finance









December 15, 1999