<PAGE>   1
                                  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

             [_] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the transition period from _____ to _____

                             Commission File number

                             SAGENT TECHNOLOGY, INC
             (Exact name of registrant as specified in its charter)

             DELAWARE                                          94-3225290
     (State or other jurisdiction  of                      (I.R.S. Employer
    incorporation or organization)                         Identification No.)

800 W. El Camino Real, Suite 300
Mountain View, California                                         94040
(Address of principal executive offices)                       (Zip Code)


                                 (650) 815-3100
              (Registrant's telephone number, including area code)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed since last report)


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

                                 Yes [X] No [ ]

    The number of shares of the Registrant's Common Stock, $.001 par value per
share, outstanding at June 30, 1999 was 25,258,921.

                                  Page 1 of 21

<PAGE>   2
<TABLE>
<CAPTION>

                             SAGENT TECHNOLOGY, INC.
                                    FORM 10-Q

                                      INDEX

                                                                                     PAGE
<S>                                                                                <C>
PART I. CONSOLIDATED CONDENSED FINANCIAL INFORMATION

Item 1. Unaudited Consolidated Condensed Financial Statements:

        Consolidated Condensed Statements of Operations
             Three and six months ended June 30, 1999 and 1998                        3

        Consolidated Condensed Balance Sheets
             June 30, 1999 and December 31, 1998                                      4

        Consolidated Condensed Statements of Cash Flows
             Six months ended June 30, 1999 and 1998                                  5

        Notes to Unaudited Consolidated Condensed Financial Statements             6-10

Item 2. Management's Discussion and Analysis of
        Financial Condition and Results of Operations                             10-17

Item 3. Quantitative and Qualitative Disclosure about Market Risk                    18


PART II. OTHER INFORMATION

Item 1. Legal Proceedings                                                            19

Item 2. Changes in Securities and Use of Proceeds                                    19

Item 3. Defaults Upon Senior Securities                                              19

Item 4. Submission of Matters to a Vote of Security Holders                          19

Item 5. Other Information                                                            19

Item 6. Exhibits and Reports on Form 8-K                                             20

Signatures                                                                           21

</TABLE>


                                  Page 2 of 21

<PAGE>   3

PART I.  FINANCIAL INFORMATION
Item 1. Financial Statements

                             SAGENT TECHNOLOGY, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                Three Months Ended June 30,           Six Months Ended June 30,
                                                 1999              1998                1999            1998
---------------------------------------------------------------------------------------------------------------
<S>                                             <C>               <C>               <C>               <C>
Revenues, net:
    Licenses                                    $  4,968          $  2,111          $  9,228          $  3,909
    Services                                       2,489             1,568             4,729             2,767
                                                --------          --------          --------          --------
         Total revenues, net                       7,457             3,679            13,957             6,676
                                                --------          --------          --------          --------
Cost of revenues:
   Licenses                                           89                25               132                61
   Services                                        1,197             1,386             2,195             2,115
                                                --------          --------          --------          --------
         Total cost of revenues                    1,286             1,411             2,327             2,176
                                                --------          --------          --------          --------
Gross profit                                       6,171             2,268            11,630             4,500
                                                --------          --------          --------          --------
Operating expenses:
   Sales and marketing                             4,317             3,007             8,116             5,210
   Research and development                        1,793             1,401             3,390             2,917
   General and administrative                        969             1,321             1,919             2,520
   Acquired in-process technology                                                                        2,425
                                                --------          --------          --------          --------
         Total operating expenses                  7,079             5,729            13,425            13,072
                                                --------          --------          --------          --------

Loss from operations                                (908)           (3,461)           (1,795)           (8,572)
                                                --------          --------          --------          --------
Interest income, net                                 356                34               284                58
                                                --------          --------          --------          --------
Net loss before income taxes                        (552)           (3,427)           (1,511)           (8,514)
                                                --------          --------          --------          --------
Provision for income taxes                            46                 2               118                 4
Net loss                                        $   (598)         $ (3,429)         $ (1,629)         $ (8,518)
                                                ========          ========          ========          ========

Basic  net loss per share                       $  (0.02)         $  (0.89)         $  (0.11)         $  (2.24)
                                                ========          ========          ========          ========
Number of shares used in calculation of
  basic net loss per share                        25,136             3,867            14,725             3,799

Diluted  net loss per share                     $  (0.02)         $  (0.98)         $  (0.11)         $  (2.48)
                                                ========          ========          ========          ========
Number of shares used in calculation of
  diluted  net loss per share                     24,852             3,501            14,441             3,432

</TABLE>

     See accompanying notes to consolidated condensed financial statements.


                                  Page 3 of 21
<PAGE>   4


                             SAGENT TECHNOLOGY, INC.
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                      (In thousands, except per share data)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                   June 30,       December 31,
                                                                     1999            1998
--------------------------------------------------------------------------------------------
<S>                                                               <C>             <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                       $ 34,124          $  3,093
  Marketable securities                                             11,725
  Accounts receivable, net                                           5,750             5,376
  Other current assets                                               1,734               832
                                                                  --------          --------
     Total current assets                                           53,333             9,301

Property and equipment, net                                          3,042             3,044
Other assets                                                         3,708               851
                                                                  --------          --------
     Total assets                                                 $ 60,083          $ 13,196
                                                                  ========          ========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                                $  1,614          $  1,478
  Accrued liabilities                                                5,257             4,216
  Deferred revenue                                                   1,740             1,304
  Obligations under capital leases                                   1,521             1,181
                                                                  --------          --------
     Total current liabilities                                      10,132             8,179

Long-term portions of capital lease obligations                      1,188             3,346
                                                                  --------          --------
     Total liabilities                                              11,320            11,525
                                                                  --------          --------
Commitments and contingencies (see Part II Item I)

STOCKHOLDERS' EQUITY:
  Convertible preferred stock, par value $.001 per share:
     Authorized: 5,000 in 1999 and 15,556 in 1998
     Issued and outstanding: none in 1999 and
      14,544 in 1998                                                                      15
  Common stock, par value $.001 per share:
     Authorized:  70,000 in 1999 and 25,000 in 1998
     Issued and outstanding: 25,259 in 1999 and
      4,125 shares in 1998                                              25                 4
  Additional paid-in capital                                        80,565            30,699
  Notes receivable from stockholders                                (1,655)             (522)
  Cumulative translation adjustment                                     82               101
  Accumulated deficit                                              (30,254)          (28,626)
                                                                  --------          --------
         Total stockholders' equity                                 48,763             1,671
                                                                  --------          --------

     Total liabilities and stockholders' equity                   $ 60,083          $ 13,196
                                                                  ========          ========
</TABLE>

     See accompanying notes to consolidated condensed financial statements.


                                  Page 4 of 21
<PAGE>   5

                             SAGENT TECHNOLOGY, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                          Six Months  Ended
                                                                                               June 30
                                                                                        1999                1998
----------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>               <C>
Cash flows from operations:
 Net loss                                                                            $ (1,629)         $ (8,518)
 Adjustments to reconcile net loss to net cash used in operating activities:
    Acquired in-process technology                                                                        2,425
    Depreciation and amortization                                                         671               548
 Change in operating assets and liabilities, net of acquisition:
           Accounts receivable                                                           (374)             (953)
           Other current assets                                                          (902)             (185)
           Other assets                                                                (2,857)             (559)
           Accounts payable                                                               136               162
           Accrued liabilities                                                          1,041             1,661
           Deferred revenue                                                               436                97
                                                                                     --------          --------
Net cash used in operating activities                                                  (3,478)           (5,322)
                                                                                     --------          --------
Cash flows from investing activities:
     Purchases of property and equipment                                                 (669)           (1,129)
     Acquisition of Talus Incorporated                                                                   (2,696)
                                                                                     --------          --------
Net cash used in  investing activities                                                   (669)           (3,825)
                                                                                     --------          --------

Cash flows from financing activities:
     Proceeds from capital lease financing                                              3,974               760
     Payment of principal under capital lease obligations                              (5,792)             (102)
     Proceeds from issuance of common stock  (net of repurchases)                      48,740               216
     Proceeds from issuance of preferred stock (net of
       issuance costs and repurchases)                                                                   11,660
                                                                                     --------          --------
Net cash provided by financing activities                                              46,922            12,534
                                                                                     --------          --------

Effect of exchange rate changes in cash                                                   (19)               22
                                                                                     --------          --------

 Net increase in cash and cash equivalents                                             42,756             3,409
Cash and cash equivalents beginning of the period                                       3,093             3,813
                                                                                     --------          --------
Cash and cash equivalents end of the period                                          $ 45,849          $  7,222
                                                                                     --------          --------
Supplemental disclosure of cash flow information:
    Cash payments for interest:                                                            60                46
Supplemental non-cash financing activities:
    Issuance of common stock for notes and interest receivable                                              522
Liabilities assumed in connection with acquisition of  Talus,
  Incorporated:
    Fair value of assets acquired                                                                         3,526
    Cash paid                                                                                            (1,170)
    Preferred stock issued                                                                               (1,400)
                                                                                                       --------
    Liabilities assumed                                                                                $    956
                                                                                                       ========
</TABLE>

     See accompanying notes to consolidated condensed financial statements.


                                  Page 5 of 21
<PAGE>   6

                             Sagent Technology, Inc.

         Notes To Unaudited Consolidated Condensed Financial Statements
                      (In thousands, except per share data)

NOTE 1.  DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business

     Sagent Technology, Inc., develops, markets and supports software designed
to address organizations' information access, analysis and delivery needs.

     Sagent was incorporated under the laws of the State of California in April
1995 under the name of Savant Software, Inc. In June 1995, Sagent changed its
name to Sagent Technology, Inc. Sagent was reincorporated under the laws of the
State of Delaware in September 1998.

Basis of Presentation:

     The unaudited consolidated condensed financial statements have been
prepared pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures, normally included in
financial statements prepared in accordance with generally accepted accounting
principles, have been condensed or omitted pursuant to such rules and
regulations. Certain prior year amounts have been reclassified to conform to the
current year presentation. In the opinion of Sagent, the financial statements
reflect all adjustments, consisting only of normal recurring adjustments
necessary for a fair presentation of the financial position at June 30, 1999 and
December 31, 1998 the operating results for the three months and six months
ended June 30, 1999 and 1998 and cash flows for the six months ended June 30,
1999 and 1998. These financial statements and notes should be read in
conjunction with Sagent's audited financial statements and notes thereto for the
year ended December 31, 1998, included in the Company's Form S-1 filed with the
Securities and Exchange Commission in April 1999. The results of operations for
the three months and six months ended June 30, 1999 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1999.

NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation:

     The consolidated financial statements include the accounts of Sagent
Technology, Inc., and its wholly-owned subsidiaries, Japan KK, Sagent Technology
UK, Ltd., and Sagent Technology (Canada) Inc. collectively ("Sagent" or the
"Company"). All significant intercompany accounts and transactions have been
eliminated.

 Use of Estimates:

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

Marketable Securities:

         Marketable securities are classified as available-for-sale securities
and are reported at fair value. Unrealized holding gains and losses, if
material, are included as a separate component of stockholders' equity until
realized.


                                  Page 6 of 21
<PAGE>   7

Revenue Recognition:

     Sagent's revenues are derived from two sources, product licenses and
services. License revenues are derived from product sales to end users,
resellers and distributors and enterprise application vendors as well as
royalties from enterprise application vendors. For enterprise application
vendors, Sagent receives quarterly reports from these vendors on sell-through of
Sagent's products to end users. The reports also indicate the amount of royalty
revenue the enterprise application vendor owes to Sagent. License revenues are
based on the number and capacity of servers on which a product is installed, as
well as on a per user basis. Service revenues are derived from providing
consulting and training, maintenance and support services to end users.


                                  Page 7 of 21
<PAGE>   8

                             Sagent Technology, Inc.

         Notes To Unaudited Consolidated Condensed Financial Statements
                      (In thousands, except per share data)

     Sagent recognizes revenues in accordance with the American Institute of
Certified Public Accountants Statement of Position No. 97-2, "Software Revenue
Recognition." License revenues from sales to end users are recognized on
shipment of the product, if a signed contract exists, the fee is fixed and
determinable and collection is deemed probable. If an acceptance period is
provided, revenue is recognized upon the earlier of customer acceptance or the
expiration of that period. Sagent recognizes royalties as revenues based on an
enterprise application vendor's sell-through of Sagent's products. Fees for
services are recognized upon completion of the work to be performed. Revenues
from maintenance and support agreements which includes product updates are
deferred and recognized on a straight-line basis as service revenues over the
term of the related agreement, which is typically one year.

     Sagent performs ongoing credit evaluations of its customer's financial
condition and does not require collateral. Sagent maintains allowances for
potential credit losses and the amount of such losses have been within
management's expectations.

Recent Accounting Pronouncements:

     In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income." SFAS No. 130 is effective for fiscal years beginning after December 15,
1997. There was no difference between Sagent's net loss and its total
comprehensive loss for the quarters ended June 30, 1999 and 1998, and the six
month periods ended June 30, 1999 and 1998.

     The American Institute of Certified Public Accountants issued Statement of
Position No. 98-1, "Software for Internal Use, " which provides guidance on
accounting for the cost of computer software developed or obtained for internal
use. Statement of Position No. 98-1 is effective for financial statements for
fiscal years beginning after December 15, 1998. The adoption of Statement of
Position No. 98-1 has had no material effect on Sagent's business, financial
condition and operating results for the first or second quarter of 1999.

     In June 1998 the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133 is
effective for all fiscal quarters of all years beginning after June 15, 1999.
SFAS No. 133 requires that all derivative instruments be recorded on the balance
sheet at their fair value. Sagent does not currently engage in hedging
activities and had no holdings of derivative financial or commodity instruments
at June 30, 1999. Sagent does not expect that the adoption of SFAS No. 133 will
have a material impact on its financial statements.

     In April 1998, the AICPA issued Statement of Position 98-5, "Reporting on
the Costs of Start-Up Activities." This standard requires companies to expense
the costs of start-up activities and organization costs as incurred. In general,
Statement of Position 98-5 is effective for fiscal years beginning after
December 15, 1998. Sagent believes the adoption of Statement of Position 98-5
will not have a material impact on its results of operations.

Net Loss Per Share:

     Sagent computes net loss per share in accordance with SFAS No. 128,
"Earnings per Share," and Securities and Exchange Commission Staff Accounting
Bulletin No. 98. Under the provisions of SFAS No. 128 and SAB 98, basic net loss
per share is computed by dividing the net loss available to common stockholders
for the period by the weighted average number of common shares outstanding
during the period. Diluted net loss per share is computed by dividing the net
loss for the period by the weighted average number of common and common
equivalent shares outstanding during the period. Options, warrants and
convertible preferred stock were not included in the computation of diluted net
loss per share because the effect would be antidilutive.


                                  Page 8 of 21
<PAGE>   9

                             Sagent Technology, Inc.

         Notes To Unaudited Consolidated Condensed Financial Statements
                      (In thousands, except per share data)

   A reconciliation of shares used in the calculation of historical basic and
diluted net loss per share follows:
<TABLE>
<CAPTION>

                                                                    Three Months Ended            Six Months Ended
                                                                        June 30,                         June 30,
                                                                -------------------------       -----------------------
                                                                    1999           1998           1999           1998
                                                                ----------       --------       --------       --------
<S>                                                             <C>              <C>            <C>            <C>
Historical net loss per share, basic and diluted:
   Net loss                                                     $     (598)      $ (3,429)      $ (1,629)      $ (8,518)
                                                                ==========       ========       ========       ========

   Shares used in computing net loss per share, basic               25,135          3,867         14,725          3,799
                                                                ----------       --------       --------       --------

   Net loss per share, basic                                    $  (0 .02)       $  (0.89)      $  (0.11)      $  (2.24)
                                                                ==========       ========       ========       ========
   Shares used in computing net loss per share, diluted             24,851          3,500         14,441          3,433
                                                                ----------       --------       --------       --------
   Net loss per share, diluted                                  $    (0.02)      $  (0.98)      $  (0.11)      $  (2.48)
                                                                ==========       ========       ========       ========
   Antidilutive securities including options, warrants and
   preferred stock not included in historical net loss per
   share calculations                                                1,018         15,817         16,014         15,817
                                                                ==========       ========       ========       ========
</TABLE>


NOTE 3.  MARKETABLE SECURITIES

         Maturities of debt securities at market value at June 30, 1999 are all
one year or less and consisted of:

<TABLE>
<CAPTION>
                                                        Gross              Gross
                                     Amortized          Unrealized         Unrealized          Market
                                     Cost               Gains              Losses              Value
                                     ----------         -----              ------              -----
<S>                                  <C>                <C>                <C>                 <C>
Debt securities:
Corporate commercial paper           $11,725                                                   11,725

</TABLE>

     Proceeds from sales or maturities of investments during the three or six
months ended June 30, 1999 and 1998 were not material. Gross gains and losses
realized on sales or maturities were not material for the three or six months
ended June 30, 1999 and 1998. The cost of investments sold is determined by the
specific identification method.

NOTE 4.  INITIAL PUBLIC OFFERING ("IPO")

     On April 13, 1999, Sagent issued 5,750,000 shares of its common stock
(including 750,000 shares issued upon the exercise of the underwriter's over
allotment option) at an initial public offering price of $9.00 per share. The
net proceeds to Sagent from the offering, net of offering costs were
approximately $47.2 million. In connection with the IPO, warrants were exercised
to purchase 110,308 shares of common stock at prices ranging from $3.18 to $6.48
per share, resulting in additional capital proceeds to the Company totaling
$656,000. Concurrent with the IPO, each outstanding share of the Company's
convertible preferred stock was automatically converted into one share of common
stock and remaining preferred stock warrants for 135,317 shares were
automatically converted into warrants for the purchase of 135,317 shares of
common stock.

NOTE 5.  ACQUISITION OF BUSINESS

     On June 11, 1999, Sagent acquired all of the stock of Sagent U.K., Ltd.,
its distributor in the United Kingdom, for cash of approximately $1.0 million,
259,000 shares of common stock valued at $1.0 million, stock options valued
at approximately $212,000 and the assumption of certain liabilities for an
aggregate purchase price of $2.4 million. Sagent accounted for the acquisition
under the purchase method and, accordingly, the purchase price was allocated to
the fair value of tangible and intangible assets acquired and liabilities
assumed.


                                  Page 9 of 21

<PAGE>   10

     The allocation of Sagent's aggregate purchase price to the tangible and
identifiable intangible assets acquired and liabilities assumed in connection
with this acquisition is summarized below:
<TABLE>

<S>                                                <C>
Current assets ..................................  $ (672)
Fixed assets ....................................     102
Goodwill ........................................   2,945
                                                   ------
    Total purchase price ........................  $2,375
                                                   ======
</TABLE>

     The excess of the purchase price over the fair value of the net tangible
assets acquired has been recorded as goodwill, which is being amortized on a
straight-line basis over a period of five years.


                                  Page 10 of 21
<PAGE>   11


                             Sagent Technology, Inc.

         Management's Discussion and Analysis of Financial Condition and
                             Results of Operations

PART I.  FINANCIAL INFORMATION

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

      All statements, trend analysis and other information contained in the
following discussion relative to markets for Sagent's products and trends in
revenues, gross margins and anticipated expense levels, as well as other
statements including words such as "anticipate," "believe," "plan," "estimate,"
"expect," "intend" and other similar expressions constitute forward-looking
statements. These forward-looking statements are subject to business and
economic risks and uncertainties, and Sagent's actual results of operations may
differ materially from those contained in the forward-looking statements.

OVERVIEW

      Sagent develops, markets and supports Enterprise Intelligence software
designed to address organizations' rapidly growing information access, analysis
and delivery needs. Sagent also provides design, systems engineering and
education services to facilitate the successful implementation of its Sagent DMS
product suite. Sagent was incorporated in April 1995, commenced operations in
June 1995 and began selling the first products of the Sagent DMS product suite
during the fourth quarter of 1996. Although Sagent's revenues have grown
significantly during these periods, there can be no assurance that such growth
will continue, nor that Sagent can achieve or sustain profitability in the
future.

     Sagent's revenues are derived from two sources, product licenses and
services. License revenues are derived from product sales to end users,
resellers, distributors and enterprise application vendors as well as royalties
from enterprise application vendors. License revenues are based upon the number
and capacity of servers on which a product is installed, as well as on a per
user basis. Service revenues are derived from providing consulting and training,
maintenance and support services to end-users.

     On February 28, 1998, Sagent acquired Talus, Incorporated, a privately held
company that has significant experience in the design and implementation of
Enterprise Intelligence applications. The total purchase price was $3.5 million,
and the acquisition was recorded under the purchase method of accounting. In
connection with the acquisition, Sagent expensed $2.4 million of in-process
technology in the quarter ended March 31, 1998. In addition, Sagent recorded
other intangible assets of $587,000, which are being amortized on a
straight-line basis over the six months to three years following the
acquisition.

     Sagent sells its products and services to corporations in North America
primarily through its direct sales and services organization. Sagent has
domestic sales offices in seventeen states. A separate group within Sagent's
direct sales organization, targets strategic partnerships with industry-leading
enterprise application vendors such as Siebel Systems and Advent Software. These
vendors embed all or a portion of Sagent's products within their own
applications and sell the integrated products to their customers. Sagent also
utilizes resellers such as Unisys Corporation, USinternetworking, Inc., and Cap
Gemini Group, which remarket Sagent's products to their customer base.


                                  Page 11 of 21
<PAGE>   12

                             Sagent Technology, Inc.

                     Management's Discussion and Analysis of
                 Financial Condition and Results of Operations

     Sagent also sells its products internationally through distributors located
in France, Germany, Spain, Benelux, Japan, South Africa and the United Kingdom
and through a direct sales subsidiary in Canada, Sagent Technology Canada. On
June 11, 1999 Sagent acquired its distributor in the United Kingdom, Sagent
U.K., Ltd., and as a result became the owner of all of the issued and
outstanding shares of Sagent U.K. Ltd. The total purchase price amounted to $2.4
million and consisted of cash, Sagent common stock, stock options and the
assumption of certain liabilities. The acquisition was recorded under the
purchase method of accounting and Sagent recorded intangible assets of $2.9
million, which are being amortized, on a straight-line basis over the five-year
period subsequent to the acquisition.

     Revenues from licenses and services to customers outside the United States
were $2.9 million and $344,000 in the three months ended June 30, 1999 and 1998,
respectively, and $2.6 million and $573,000 for the six months ended June 30,
1999 and 1998, respectively. Historically, as a result of the relatively small
amount of international sales, fluctuations in foreign currency exchange rates
have not had a material effect on Sagent's business, financial condition and
operating results. Sagent has agreements with its distributors in Spain and
Benelux and the parent company of its French and German distributors, under each
of which Sagent has an option to acquire such distributors. In the event of a
change of control, Sagent could be required to acquire the German distributor.
Any such acquisition may have the effect of diluting existing stockholders,
reducing Sagent's available cash for working capital and other purposes,
requiring substantial management attention, increasing annual amortization
expense or imposing costs on Sagent associated with integrating the acquired
entity.

     Sagent recognizes revenues in accordance with the American Institute of
Certified Public Accountants Statement of Position No. 97-2. License revenues
from sales to end users are recognized upon shipment of the product, if a signed
contract exists, the fee is fixed and determinable and collection is deemed
probable. If an acceptance period is provided, revenue is recognized upon the
earlier of customer acceptance or the expiration of that period. Sagent
recognizes royalties as revenues based on an enterprise application vendor's
sell-through of Sagent's products. Fees for services are charged separately from
licenses. Service revenues from consulting and training are recognized upon
completion of the work to be performed. Revenues from maintenance and support
agreements which includes product updates are deferred and recognized on a
straight-line basis as service revenues over the term of the related agreement,
which is typically one year.

     Since inception, Sagent has incurred substantial research and development
costs to develop its product suite and has invested heavily in the expansion of
sales, marketing and professional services organizations to support increased
annual revenue. In addition, Sagent has invested significantly in general and
administrative areas to build an infrastructure to support its growth strategy.
The number of full-time employees increased from 142 as of June 30, 1998, to 166
as of June 30, 1999, representing an increase of 17%. As a result of these
investments, Sagent has incurred a net accumulated deficit of $30.3 million as
of June 30, 1999. Sagent expects to continue to incur significant sales and
marketing, research and development and general and administrative expenses. As
a result, we may experience losses and negative cash flows. If Sagent does
achieve profitability, it may not be able to sustain or increase profitability
on a quarterly or annual basis in the future.

     Sagent believes that period-to-period comparisons of its operating results
are not a good indication of future performance. Although our operating results
have generally improved from quarter to quarter in the past, Sagent's future
operating results may not follow any past trends. Our prospects must be
considered in light of the risks, expenses and difficulties frequently
encountered by companies in new and rapidly evolving markets. There can be no
assurance we will be successful in addressing such risks and difficulties.


                                  Page 12 of 21
<PAGE>   13
                             Sagent Technology, Inc.
                     Management's Discussion and Analysis of
                 Financial Condition and Results of Operations

RESULTS OF OPERATIONS FOR THE THREE MONTHS AND SIX ENDED JUNE 30, 1999 AND 1998

     The following table sets forth for the periods indicated certain financial
data, derived from Sagent's unaudited consolidated statements of operations, as
a percentage of total revenues for the periods indicated:

<TABLE>
<CAPTION>
                                                 Three Months Ended                  Six Months Ended
                                                       June 30,                           June 30,
                                             --------------------------         --------------------------
                                                1999             1998             1999             1998
                                              --------         --------         --------         --------
<S>                                           <C>              <C>              <C>              <C>
Revenues, net:
   Licenses                                       66.6%            57.4%            66.1%            58.6%
   Services                                       33.4             42.6             33.9             41.4
                                              --------         --------         --------         --------
        Total revenues, net                      100.0            100.0            100.0            100.0
 Cost of revenues
   Licenses                                        1.2              0.7              0.9              0.9
   Services                                       16.1             37.7             15.7             31.7
                                              --------         --------         --------         --------
        Total cost of revenues                    17.2             38.4             16.7             32.6
                                              --------         --------         --------         --------
 Gross margin                                     82.8             61.6             83.3             67.4
                                              --------         --------         --------         --------
 Operating expenses:
   Sales and marketing                            57.9             81.7             58.2             78.0
   Research and development                       24.0             38.1             24.3             43.7
   General and administrative                     13.0             35.9             13.7             37.7
                                              --------         --------         --------         --------
Total operating expenses                          94.9            155.7             96.2            159.5
                                              --------         --------         --------         --------
 Loss from operations                            (12.2)           (94.1)           (12.9)           (92.1)
 Other income (expense):
       Acquired in-process technology                                                                36.3
       Other income (expense), net                 4.8             (0.9)            (2.0)            (0.9)
 Net loss before income taxes                     (7.4)           (93.2)           (10.8)          (127.5)
                                              --------         --------         --------         --------
 Provision for income taxes                        0.6              0.1              0.8              0.1
                                              --------         --------         --------         --------
 Net loss                                         (8.0)%          (93.2)%          (11.7)%         (127.6)%
                                              ========         ========         ========         ========
</TABLE>

REVENUES

     Total revenues: Sagent's revenues were derived from software licenses and
related services. Total revenues increased 103% from $3.7 million for the three
months ended June 30, 1998 to $7.5 million for the three months ended June
30, 1999. Total revenue also increased 109% from $6.7 million for the six months
ended June 30,1998 to $14.0 million for the six months ended June 30, 1999.
International revenues were $1.9 million and $344,000 for the three months ended
June 30, 1999 and 1998, respectively, an increase of 464%, and for the six
months ended June 30, 1999 international revenues increased 361% to $2.6 million
from $573,000 for the same period in the prior year. For quarter ended June 30,
1999, international revenues were delivered primarily from Europe and Japan and
accounted for 25% of total revenue for the period, up to 14 points from the
prior quarter ended March 31, 1998. No single customer accounted for more than
10% of Sagent's total revenues for the three and six months ended June 30, 1999.

     License revenues: Sagent's license revenues increased 135% from $2.1
million for the three months ended June 30, 1998 to $5.0 million for the same
three month period in 1999, and represented 57% and 67% of total revenues for
the three months ended June 30, 1998 and 1999, respectively. For the six month
period ended June 30, 1999 revenues increased 136% to $9.2 million, from $3.9
million for the same six month period in the prior year. The increase in
revenues from the comparable period in the prior year was primarily attributed
to a substantial increase in sales of the Sagent DMS product suite reflecting
the increased market acceptance of the products. Approximately $3.0 million of
revenue for the current quarter and $5.3 million of the revenue for the six
month period in the current year was from sales to new customers. Sagent
anticipates that license revenues, which have represented a significant portion
of Sagent's total revenue to date, will continue to represent the substantial
majority of its revenues for the foreseeable future.


                                  Page 13 of 21
<PAGE>   14


                             Sagent Technology, Inc.

                     Management's Discussion and Analysis of
                 Financial Condition and Results of Operations

     Service revenues: Sagent's service revenues increased to $2.5 million and
$4.7 million for the three months and six month periods ended June 30, 1999 and
1998, respectively, representing an increase of 59% and 71% respectively. The
increases were primarily due to growth in training and consulting services as a
result of the acquisition of Talus, Incorporated on February 28, 1998. Service
revenues consist primarily of revenues from consulting and implementation
service fees, maintenance and to a lesser extent, training services. Service
revenues represented 34% and 41% of total revenues for the three months ended
June 30, 1999 and 1998 respectively and 33% and 43% for the six months ended
June 30, 1999 and 1998 respectively.

COST OF REVENUES

     Cost of license revenues: Cost of license revenues consists primarily of
product packaging, shipping, media and documentation costs and to a lesser
degree, license fees for sub-licensing third-party software. Sagent's cost of
license revenue increased to $89,000 or 1% of revenue, for the three months
ended June 30, 1999 from $25,000, or 1% of revenue, for the three months ended
June 30, 1998. Cost of license revenue for the six months ended June 30, 1999
was $132,000 or 1% of revenue and $61,000, or 1% of revenue for the six month
period ended June 30, 1998.

     Cost of services: Cost of services consists primarily of personnel costs
associated with providing software maintenance, technical support, training and
consulting services. Sagent's cost of service revenues was $1.2 million and $1.4
million for the three months ended June 30, 1999 and 1998, respectively,
representing a decrease of $14% and for the six months ended June 30, 1999 and
1998 cost of service revenues was $2.2 million and $2.1 million, respectively.
Cost of service revenues was 52% and 88% of service revenues for the three
months ended June 30, 1999 and 1998, respectively, and 46% and 76% for the six
months ended June 30, 1999 and 1998 respectively. The improvement in service
costs as a percent of service revenues was primarily due to providing higher
margin consulting services during the current year.

GROSS MARGIN

     Gross margins improved 21 points to 83% for the three months ended June 30,
1999 from 62% for the same period in the prior year. For the six month period
ended June 30, 1999, gross margin improved 16 points to 83% from 67% for the
same period in the prior year. The improvement was primarily due to an increase
in license revenues as a per cent of total revenue, providing higher margin
consulting services, improved utilization rates and the completion of
amortization of intangible assets recorded in connection with the acquisition of
Talus. In the future, Sagent's total gross margin percentages may be adversely
affected by mix of software products and services revenue and increased
competition.

OPERATING EXPENSES

     Sales and marketing: Sales and marketing expenses consist primarily of
salaries, benefits, commissions, bonuses and travel expenses for sales and
marketing personnel as well as marketing programs costs. Sales and marketing
expenses increased 44% to $4.3 million for the three months ended June 30, 1999
from $3.0 million for the three months ending June 30, 1998. During the six
month period ended June 30, 1999, sales and marketing expenses increased 56% to
$8.1 million from $5.2 million for the same six month period in the prior year.
This increase reflects the overall increase in expenses such as those related to
new hires, for commissions and promotional activities associated with the
increase in revenues. Sales and marketing expenses represented 58% and 82% of
total revenues for the three months ended June 30, 1999 and 1998 respectively, a
decline of 24 points. For the six month period ended June 30, 1999 sales and
marketing expenses declined to 58% from the 78% for the six month period ended
June 30, 1998. This decrease was attributable to Sagent's increased revenues.
Sagent believes that as it continues to expand its direct sales force, its third
party partnering relationships and its indirect channel sales organization on a
worldwide basis, sales and marketing expenses will continue to increase in
absolute dollars, although such expenses may vary as a percentage of revenue.


                                  Page 14 of 21
<PAGE>   15

                             Sagent Technology, Inc.

                     Management's Discussion and Analysis of
                 Financial Condition and Results of Operations


     Research and development: Research and development expenses consist
primarily of personnel and related costs associated with the development of new
products, the enhancement and localization of existing products, quality
assurance and testing. Research and development expenses increased 28% to $1.8
million for the three months ended June 30, 1999 from $1.4 million for the three
months ended June 30, 1998. For the six month period ended June 30, 1999,
research and development expenses increased 16% to $3.4 million from $2.9
million for the three month period ended June 30, 1998. Research and development
costs represented 24% and 38% of total revenues for the three months ended June
30, 1999 and 1998, respectively and 24% and 44% for the six months ended June
30, 1999 and 1998 respectively. Sagent anticipates that it will continue to
invest significantly in product research and development for the foreseeable
future, and research and development expenses are likely to increase in absolute
dollars in future periods, although such expenses may vary as a percentage of
total revenues. In the development of Sagent's new products and enhancements of
existing products, the technological feasibility of the software is not
established until substantially all product development is complete.
Historically, Sagent's software development costs eligible for capitalization
have been insignificant, and all costs related to internal research and
development have been expensed as incurred.

     General and administrative: General and administrative expenses consist
primarily of personnel costs for Sagent's executive, finance, human resources,
information systems and other administrative departments. General and
administrative expenses decreased 28% to $969,000 for the three months ended
June 30, 1999 from $1.3 million for the same period in the prior year. During
the six month period ended June 30, 1999, general and administrative expenses
decreased 24% to $1.9 million from $2.5 million for the same period in the
previous year. The decrease for the six months was primarily attributable to
lower reserve requirements for bad debts as a result of improved credit and
collection processes and reduced expenses incurred for various professional
services for which Sagent's need declined as some of the capabilities were added
internally during the period. General and administrative expenses represented
13% and 36% of total revenues for the three months ended June 30, 1999 and 1998,
respectively and 14% and 38% for the six months ended June 30, 1999 and 1998,
respectively. The decrease was due to the increase in total revenue and reduced
spending. Sagent believes that general and administrative expenses will increase
in the future in absolute dollars as a result of the continued expansion of
administrative staff and expenses associated with being a public company,
including public reporting expenses, investor relations programs and
professional services fees.

ACQUIRED IN PROCESS TECHNOLOGY

     In connection with the February 1998 acquisition of Talus, Incorporated, a
privately held company with experience in the design and implementation of
Enterprise Intelligence applications, Sagent acquired certain in-process
technology. This technology under development consisted of analytical software
applications for manufacturing, food service and hospitality, and high
technology industries. After considering such factors as degree of completion,
technological uncertainties, costs incurred and projected costs to complete,
Sagent expensed $2.4 million of in-process technology in February 1998. No such
expense occurred in the first six months of 1999. Acquired in process technology
projects continue to progress consistent with management's original assumptions
used to value the acquired in-process technology.

INTEREST  INCOME

     Interest income consists of interest earned on invested cash less interest
expense related to borrowings. Interest income increased $406,000 to $490,000
for the quarter ended June 30, 1999, from $84,000 earned in the quarter ended
June 30, 1998. The increase is due to a greater amount of cash available for
investing as a result of the IPO. Increased borrowings under the credit lines,
primarily related to equipment financing, resulted in an increase in interest
expense of $84,000 to $134,000 for the quarter ended June 30, 1999, from $50,000
for the quarter ended June 30, 1998.


                                  Page 15 of 21
<PAGE>   16

                             Sagent Technology, Inc.

                     Management's Discussion and Analysis of
                 Financial Condition and Results of Operations

INCOME TAXES

     Income taxes: As of December 31, 1998 Sagent had available net operating
loss carryforwards for federal and state income tax purposes of approximately
$21 million and $18 million, respectively, which expire from 2003 to 2018. The
Tax Reform Act of 1986 imposes limitations on the use of net operating loss
carryforwards if certain stock ownership changes have occurred or could occur in
the future. For the six months ended June 30, 1999 a provision for $118,000 was
recorded for withholding taxes payable in connection with payments from Sagent's
customers in Japan.

OBLIGATIONS UNDER CAPITAL LEASES

     During the six months ended June 30, 1999 capital lease obligations
decreased by $1.8 million as a result of principal payments made to pay off one
of the obligations.

LIQUIDITY AND CAPITAL RESOURCES

     At June 30, 1999 Sagent had cash and cash equivalents totaling $45.8
million, an increase of $42.7 million from December 1998. Since inception,
Sagent has funded its operations primarily through the private sales of equity
securities, the use of equipment leases, a bank line of credit, and the initial
public offering of common stock not from cash generated by operations. As of
June 30, 1999, Sagent had raised $30.5 million, net of offering costs, from the
issuance of preferred stock and the exercise of stock options and warrants,
financed equipment purchases totaling $2.7 million and on April 13, 1999, and
completed its initial public offering of common stock receiving approximately
$47.2 million in cash, net of underwriting discounts, commissions and other
offering costs. This includes the overallotment of 750,000 shares exercised by
the underwriters on April 15, 1999.

     Net cash used in operating activities was $3.5 million and $5.3 million in
the six months ended June 30, 1999 and 1998 respectively, representing a
decrease of 34%. The decrease was primarily the result of increased revenues.

     Sagent's investing activities included capital expenditures for property
and equipment including those under capital leases totaling $4.0 million and
$760,000 for the six months ended June 30, 1999 and 1998, respectively. Capital
leases have been used to finance the majority of Sagent's acquisition of
property and equipment Sagent anticipates that it will experience an increase in
its capital expenditures and lease commitments consistent with its anticipated
growth in operations, infrastructure and personnel. Investing activities
associated with the acquisition of Talus, Inc. on February 28, 1998 amounted to
$2.7 million.

     Sagent's financing activities provided $46.9 million and $12.5 million in
the six month period ending June 30, 1999 and 1998, respectively, an increase of
$34.4 million or 416%. Sagent's financing activities have primarily included the
sales of its common and preferred stock and the use of its bank credit lines.
Net proceeds from the sale of common stock in its initial public offering in
April 1999 amounted to $47.2 million, and from the sale of preferred stock in
February 1998, totaled $10.5 million, net of issuance costs.


                                  Page 16 of 21
<PAGE>   17

                             Sagent Technology, Inc.

                     Management's Discussion and Analysis of
                 Financial Condition and Results of Operations


     Sagent currently anticipates that for the foreseeable future it will
continue to experience significant growth in its operating expenses related to
expansion of its distribution channels, improving operational and financial
systems, possibly acquiring or investing in complementary businesses, products
or technologies or investing in joint ventures. Such expenditures will be a
material use of our cash resources. Sagent believes that its sources of
liquidity as of June 30, 1999 together with the net proceeds from its initial
public offering, will be sufficient to meet its working capital and anticipated
capital expenditure requirements for at lease the next 12 months. Thereafter,
Sagent may require additional funds to support its working capital requirements
or for other purposes, and may seek, even before such time, to raise additional
funds through public or private equity financing or from strategic
relationships, bank debt, financing under leasing arrangements, or other
sources. There can be no assurance that additional financing will be available
at all, or that if available, such financing will be obtainable on terms
acceptable to Sagent or that are not dilutive to its stockholders. If adequate
funds are not available or are not available on acceptable terms, Sagent may be
unable to develop or enhance its products, take advantage of future
opportunities, or respond to competitive pressures or unanticipated
requirements, which could have a material adverse effect on its business,
financial condition and operating results.

YEAR 2000 ISSUES

     Sagent has completed its assessment of the potential overall impact of the
impending century change on Sagent's business, financial condition and operating
results. Based on Sagent's current assessment, Sagent believes the current
versions of its products are year 2000 compliant, that is, they are capable of
adequately distinguishing 21st century dates from 20th century dates. However
Sagent's products operate in complex network environments and directly or
indirectly interact with a number of other hardware and software systems that
Sagent cannot adequately evaluate for year 2000 compliance. Sagent may face
claims based on year 2000 problems in other companies' products or issues
arising for the integration of multiple products within an overall system.
Sagent has not been a part to any litigation or arbitration proceeding involving
Sagent's products or services related to year 2000 compliance issues.

     Sagent has reviewed its internal management information and other critical
business systems to identify any year 2000 problems. Sagent also has
communicated with the external vendors that supply it with material software and
information systems and with significant suppliers to determine their year 2000
readiness. Based on Sagent's vendors' representations, Sagent believes that the
third-party hardware and software Sagent uses is year 2000 compliant except for
the applications Sagent uses to track technical support request. The application
vendor is currently undertaking modification of this application for Sagent, and
Sagent estimates that the modification will be complete in the third quarter of
1999 and will cost approximately $20,000. Although Sagent does not believe that
the cost of such modifications will materially affect its operating results, if
Sagent is not able to modify the technical support application in a timely and
successful manner Sagent may not be able to process technical support reports
effectively, which may adversely affect Sagent's business. Sagent currently
anticipates conducting additional year 2000 testing in the second half of 1999
when it replaces servers in its internal network.

    Sagent did not incur any material costs directly associated with year 2000
compliance in the first quarter of 1999. Sagent does not expect the total cost
of year 2000 problems to be material to its business, financial condition and
operating results. However during the months prior to the century change, Sagent
will continue to evaluate new version of its products, new software and
information systems provided by third parties and any new infrastructure systems
that Sagent acquires, to determine whether they are year 2000 compliant. Despite
Sagent's current assessment Sagent may not identify and correct all significant
year 2000 problems on a timely basis. Year 2000 compliance efforts may involve
significant time and expense and unremediated problems could harm Sagent's
business, financial condition and operating results. Sagent currently has no
contingency plans to address the risks associated with unremediated year 2000
problems.


                                  Page 17 of 21
<PAGE>   18

                             Sagent Technology, Inc.


Item 3.  Quantitative and Qualitative Disclosures about Market Risk

OUR FUTURE OPERATING RESULTS MAY NOT FOLLOW PAST TRENDS DUE TO MANY FACTORS AND
ANY OF THESE COULD CAUSE OUR STOCK PRICE TO FALL

WE MAY LOSE EXISTING CUSTOMERS OR BE UNABLE TO ATTRACT NEW CUSTOMERS IF WE DO
NOT DEVELOP NEW PRODUCTS

CHANGES IN INTERNET TECHNOLOGY AND OPERATING SYSTEM STANDARDS MAY IMPEDE MARKET
ACCEPTANCE FOR OUR PRODUCTS

THE GROWTH OF OUR BUSINESS DEPENDS ON THE GROWTH OF THE MARKET FOR ENTERPRISE
INTELLIGENCE SOFTWARE

IF OUR RELATIONSHIPS WITH CHANNEL PARTNERS ARE NOT SUCCESSFUL AND IF WE CANNOT
RECRUIT ADDITIONAL CHANNEL PARTNERS WE MAY NOT BE ABLE TO EXPAND OUR SALES

WE NEED TO EXPAND OUR MANAGEMENT SYSTEMS AND CONTROLS TO SUPPORT OUR ANTICIPATED
GROWTH

WE INTEND TO EXPAND INTERNATIONAL OPERATIONS BUT WE MAY ENCOUNTER A NUMBER OF
PROBLEMS IN DOING SO WHICH COULD LIMIT OUR FUTURE GROWTH

OUR MARKETS ARE HIGHLY COMPETITIVE AND COMPETITION COULD HARM OUR ABILITY TO
SELL PRODUCTS AND SERVICES AND REDUCE OUR MARKET SHARE

OUR OPERATING RESULTS MAY VARY SIGNIFICANTLY DUE TO OUR LENGTHY SALES AND
IMPLEMENTATION CYCLES FOR OUR PRODUCTS WHICH COULD CAUSE OUR STOCK PRICE TO FALL

OUR EXECUTIVE OFFICERS AND KEY PERSONNEL ARE CRITICAL TO OUR BUSINESS AND THESE
OFFICERS AND KEY PERSONNEL MAY NOT REMAIN WITH US IN THE FUTURE

OUR ACQUISITIONS COULD BE DIFFICULT TO INTEGRATE, DISRUPT OUR BUSINESS AND
DILUTE STOCKHOLDER VALUE

FAILURE OF COMMERCIAL USERS TO ACCEPT INTERNET SOLUTIONS COULD LIMIT OUR FUTURE
GROWTH

OUR PROPRIETARY TECHNOLOGY MAY BE SUBJECTED TO INFRINGEMENT CLAIMS OR MAY BE
INFRINGED UPON AND TIMELINE, INC., HAS FILED AN INFRINGEMENT SUIT AGAINST US.

IF WE LOSE KEY LICENSES WE MAY BE REQUIRED TO DEVELOP OR LICENSE ALTERNATIVES
WHICH MAY CAUSE DELAYS OR REDUCTIONS IN SALES

IF WE DISCOVER SOFTWARE DEFECTS WE MAY HAVE PRODUCT-RELATED LIABILITIES WHICH
MAY LEAD TO LOSS OF REVENUE OR DELAY IN MARKET ACCEPTANCE FOR OUR PRODUCTS

POTENTIAL YEAR 2000 PROBLEMS WITH OUR PRODUCTS OR INTERNAL SYSTEMS MAY INVOLVE
SIGNIFICANT TIME AND EXPENSE AND MAY REDUCE OUR FUTURE SALES


                                  Page 18 of 21
<PAGE>   19


PART II.  OTHER INFORMATION

ITEM 1.   Legal Proceedings

          On March 22, 1999 Timeline, Inc. filed a complaint against Sagent in
the United States District Court for the Western District of Washington at
Seattle. Timeline alleges that the Sagent DMS product suite infringes one or
more of the claims of a Timeline patent. Timeline is seeking relief in the form
of an injunction, damages, punitive damages, attorney's fees, prejudgment and
postjudgment interest and costs. On April 19, 1999 Sagent filed its answer
denying Timeline's allegations. The case. has been set for trial on July 10,
2000. Sagent believes it has meritorious defenses. Sagent is not currently a
party to any other legal proceedings.

ITEM 2.   Changes in Securities and Use of Proceeds

     Since January 1, 1999 the Registrant has issued and sold unregistered
securities as follows:

(a)        Between January 1, 1999 and June 30, 1999, an aggregate of 628,280
           shares of Common Stock were issued to employees upon exercise of
           options net of repurchases. The net aggregate consideration received
           for such shares was $2,627,071. Included in these exercises were
           246,362 shares where the employees took out notes with Sagent for an
           aggregate of approximately $1.9 million.

(b)        Between January 1, 1999 and June 30, 1999 an aggregate of 22,000
           shares were issued to holders of warrants. The aggregate
           consideration received for such shares was $118,800.

     Sagent's registration statement (Registration No. 333-71369) under the
Securities Act of 1933, as amended, for its initial public offering became
effective April 13, 1999. Sagent issued 5,750,000 shares of its common stock
(including 750,000 shares issued upon the exercise of the underwriter's over
allotment option) at an initial public offering price of $9.00 per share.
Offering proceeds net of aggregate expenses to the Registrant, were
approximately $47.2 million. The principal underwriters were Donaldson, Lufkin &
Jenrette, Hambrecht & Quist and U.S. Bancorp Piper Jaffray. The aggregate
underwriting fees were approximately $3.6 million. The Registrant expects to use
the net offering proceeds for general corporate purposes, including working
capital, capital expenditures and has subsequently repaid $3.4 million in
long-term debt. A portion of the proceeds may also be used to acquire licenses
or in vest in complementary businesses or products, although there are no
current plans, negotiations, or discussions relating to any such transactions.
In connection with the IPO warrants were exercised to purchase 110,308 shares of
common stock at prices ranging from $3.18 to $6.48 per share, resulting in
additional capital proceeds to the Company totaling $656,000. Concurrent with
the IPO, each outstanding share of the Company's redeemable convertible
preferred stock was automatically converted into one share of common stock and
remaining preferred stock warrants for 135,317 shares were automatically
converted into warrants for the purchase of 135,317 shares of common stock.

    In connection with the acquisition of Sagent U.K., Ltd. on June 11, 1999,
Sagent issued 259,000 shares of Common Stock valued at $1.0 million.

ITEM 3.   Defaults Upon Senior Securities

          None.

ITEM 4.   Submission of Matters to a Vote of Security Holders

          None.

ITEM 5.   Other Information

          The registrant hereby includes financial statements and pro forma
          financial information as it pertains to Sagent UK,Ltd., a subsidiary
          acquired on June 11, 1999.

         (a)  Financial Statements of Business Acquired

                  The financial statements of Sagent UK LTD are attached hereto
                   as exhibit 99.1 and incorporated herein by this reference.

         (b)  Pro forma Financial Information

                  The unaudited pro forma financial information are attached
                  hereto as exhibit 99.2 and incorporated herein by this
                  reference.

         (c)  Exhibits


                                  Page 19 of 21
<PAGE>   20


ITEM 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits
<TABLE>
<CAPTION>
             Exhibit
             Number              Description
             -------             -----------
             <S>                 <C>
              27.1               Financial Data Schedule

              99.1               Financial Statements of Sagent U.K.

              99.2               Pro forma Financial Information

              99.3               Employee Note Agreement for Malcolm Hobbs

              99.4               Employee Note Agreement for Thomas Lounibos
</TABLE>

         (b) Reports on Form 8-K

     The Company filed a report on Form 8-K on June 11, 1999 related to the
acquisition of Sagent UK, Ltd.


                                  Page 20 of 21
<PAGE>   21

                                   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.








                             SAGENT TECHNOLOGY, INC.
                                  (Registrant)




                               /s/ Virginia Walker


                               -------------------
                                 VIRGINA WALKER
                        Executive Vice President, Finance
                           and Chief Financial Officer
                  (Principal Financial and Accounting Officer)

                                  May 20, 1999





                                  Page 21 of 21
<PAGE>   22

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
Number              Description
-------             -----------
<S>                 <C>
 27.1               Financial Data Schedule

 99.1               Financial Statements of Sagent U.K.

 99.2               Pro forma Financial Information

 99.3               Employee Note Agreement for Malcolm Hobbs

 99.4               Employee Note Agreement for Thomas Lounibos
</TABLE>