<PAGE>                 
               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                 FORM 10-QSB

             [X]   Quarterly Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934
                For the quarterly period ended March 31, 1999

            [ ]   Transition Report Under Section 13 or 15(d) of the
                                  Exchange Act
                     For the transition period from      to

                         Commission file number 0-14973

                                  UNICO, INC.
             ------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

                  New Mexico                           85-0270072
             ------------------------------------------------------
            (State or other jurisdiction              (IRS Employer
          of incorporation or organization)        Identification No.)

              2925 Bayview Drive, Fremont, CA                94538
             ------------------------------------------------------
            (Address of principal executive offices)      (Zip Code)

                                 510/770-3990
             ------------------------------------------------------
                         (Issuer's telephone number)

                                     N/A
             ------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

Check whether the issuer (1) has filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 12 months (or 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[ ]

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the issuer has filed all documents and reports required to be 
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution 
of securities under a plan confirmed by a court.  Yes    No N/A
                                                     ----  ----

                                      1

<PAGE>
                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of 
common equity, as of the latest practicable date: March 31, 1999

    As of March 31, 1999, the Registrant had 7,229,428 shares of the
    Registrant's $0.20 par value common stock outstanding, excluding 3,699
    shares held by the Registrant for resale.  For accounting purposes, the
    acquisition of Multiwave was effective as of October 31, 1998.  It
    requires the issuance of 2,388,792 shares.  While these shares will be
    issued upon shareholder approval, for the purposes of this Form 10-QSB,
    they are treated as if issued on October 31, 1998.  The total number of
    shares deemed to be outstanding as of March 31, 1999 is 9,618,220, in
    order to properly reflect the Multiwave acquisition described herein.


Transitional Small Business Disclosure Format (check one):
Yes        No  X
   ------    ------
































                                      2

<PAGE>                                 
INDEX TO 
REPORT ON FORM 10-QSB

UNICO, INC.


PART I -  FINANCIAL INFORMATION

Item 1.   Financial Statements                                       

          Balance Sheets as of March 31, 1999 and June 30, 1998      5

          Statements of Operations for the three months ended
          March 31, 1999 and March 31, 1998                          7

          Statements of Operations for the nine months ended
          March 31, 1999 and March 31, 1998                          8
                       
          Statements of Cash Flows for the nine months ended
          March 31, 1999 and March 31, 1998                          9        
 
        
          Notes to Financial Statements                             10


Item 2.   Management's Discussion and Analysis or Plan of 
          Operations                                                20        
 
     

PART II - OTHER INFORMATION

Item 1.   Legal Proceedings                                         24

Item 2.   Changes in Securities and Use of Proceeds                 24

Item 3.   Defaults Upon Senior Securities                           25

Item 4.   Submission of Matters to a Vote of Security Holders       25

Item 5.   Other Information                                         25

Item 6.   Exhibits and reports on Form 8-K                          25







                                      3


<PAGE>
PART I - FINANCIAL INFORMATION

The interim financial statements included herein were prepared by the Company,
without audit, 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 were condensed or omitted pursuant to such
rules and regulations, although the Company believes that the disclosures made
are adequate to make the information presented not misleading.  It is
suggested that the interim financial statements be read in conjunction with
the financial statements and the notes thereto included in the Company's 
Annual Report on Form 10-KSB for the year ended June 30, 1998. 

The accompanying interim financial statements were prepared, in all material 
respects, in conformity with the standards of accounting measurement set forth 
in Accounting Principles Board Opinion No. 28 and reflect, in the opinion of 
management, all adjustments, which are of a normal recurring nature, necessary 
to summarize fairly the financial position and results of operations for such 
periods.  The results of operations for such interim periods are not 
necessarily indicative of the results to be expected for the full year.






























                                      4


<PAGE>
ITEM 1. FINANCIAL STATEMENTS

UNICO, INC.
Balance Sheets                                           
(Dollars In Thousands)                       March 31,       June 30,
                                                 1999           1998
ASSETS                                     (unaudited)      (audited)
Current Assets
Cash                                         $    814       $     30
Accounts receivable, less $325 and $114                            
 allowance for doubtful accounts and
 returns, allowances and discounts              4,863          1,034
Inventories                                     2,140            434
Prepaid expenses & other current assets           745              4 
                                               -------       --------
   Total current assets                         8,562          1,502 
                                               -------       --------
Property and Equipment
 Furniture and equipment                          376             38
 Leasehold improvements                             8             25
                                               -------       -------- 
                                                  384             63
Accumulated depreciation                           91             11 
                                               -------       --------
                                                  293             52 
                                               -------       --------
Trademark, less $43 and $24 
 accumulated amortization                          87            106
Goodwill, less $88 accumulated amortization       972              0
Due from Luna                                       0             14
Due from Hwang and Hwang Note                     139            133
Other                                             221              0 
Old Unico Investment                            3,163          3,163
                                               -------       --------
                                                4,582          3,416 
                                               -------       --------
                                             $ 13,437       $  4,970 
                                               =======       ========








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



                                      5

<PAGE>
ITEM 1. FINANCIAL STATEMENTS (CONT'D)

UNICO, INC.
Balance Sheets (Cont'd)                    
(Dollars In Thousands)                       March 31,       June 30,
                                                 1999           1998
                                           (unaudited)      (audited)

LIABILITIES AND STOCKHOLDERS' EQUITY 
Current Liabilities
Bank overdrafts                              $      0       $    211
Accounts payable                                8,439            433
Deferred revenues                                 270            210
Due RTC                                             0             32
Due Yin                                             0            100
Accrued payroll & other current liabilities        50             25 
                                             ---------      --------
Total Current Liabilities                       8,759          1,011 
                                             ---------      --------
Long-Term Liabilities                             424              0
                                             ---------      --------
Commitments and contingencies
Stockholders' Equity                            4,254          3,959  
                                             ---------      --------
                                             $ 13,437       $  4,970  
                                             =========      ========













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










                                      6

<PAGE>                                    
UNICO, INC.

Statements of Operations
(Dollars In Thousands)

                                     Three months ended March 31,    
                                             1999           1998            
                                       (unaudited)    (unaudited)
                                      
Net sales                               $  11,413      $   5,644
Cost of goods sold                         10,589          5,650 
                                        ---------      ----------
Gross profit (loss)                           824             (6)
                                        ---------      ----------

Salaries and wages                            783            162
Rent                                           89             21
Research and development                       57
Amortization                                   61             10
Other expenses                                777             57 
                                        ---------      ----------
                                            1,767            250
                                        ---------      ----------
Operating loss                               (943)          (256)
Interest, net                                 (11)             1 
Other income, net                               8              0
                                        ---------      ----------
Net loss                                $    (946)     $    (255)
                                        =========      ==========




Basic loss per share                    ($ 0.0627)     ($ 0.0233)
                                        ==========     ==========


Shares used in computation              15,092,220     10,950,200
                                        


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

 






                                     7                                     
<PAGE>                                    
UNICO, INC.

Statements of Operations
(Dollars In Thousands)
         
                                      Nine months ended March 31,    
                                             1999           1998            
                                       (unaudited)    (unaudited)
                                      
Net sales                               $  22,449      $  19,261
Cost of goods sold                         20,683         18,833 
                                        ---------      ----------
Gross profit                                1,766            428
                                        ---------      ----------

Salaries and wages                          1,467            419
Rent                                          183             45
Research and development                      174              0
Amortization                                  108             18
Other expenses                              1,751            188 
                                        ---------      ----------
                                            3,683            670
                                        ---------      ----------
Operating loss                             (1,917)          (242)
Interest, net                                  (7)             1 
Other income, net                             194              0
                                        ---------      ----------
Net loss                                $  (1,730)     $    (241)
                                        =========      ==========




Basic loss per share                    ($ 0.1235)     ($ 0.0220)
                                        ==========     ==========



Shares used in computation              14,003,867     10,950,200
                                        


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





                                       8


<PAGE>
UNICO, INC.

Statements of Cash Flows
(Dollars In Thousands)
                                           Nine months ended March 31,
                                                  1999           1998
                                            (unaudited)    (unaudited)

Operating cash flows 
Net loss                                     $  (1,730)      $   (241)
Depreciation and amortization                      187             22
Services rendered for stock                         42              0
Receivables change                                (701)          (485)
Inventory change                                 3,369              9
Prepaid expenses change                           (163)            13 
Accounts payable change                           (572)          (201)
Due from others                                      0             45
Other current liabilities change                  (588)             7
Deferred revenues change                            60             95
                                             ----------     ----------

Cash used by operations                            (96)          (736)
                                             ----------     ----------
Investing cash flows               
Property acquisitions                              (99)            (1)
Other assets                                      (123)             2
Multiwave investment                              (146)             0
Cash of acquired entities                        1,360             42
                                             ----------     ----------
Cash provided by
 investing activities                              992             43
                                             ----------     ----------
Financing cash flows 
RTC receivables collected                            0            588
Yin advance                                       (100)             0
Reduction in due RTC                               (32)          (100)
Bank overdrafts                                   (404)           165
Long-term liabilities                              424              0
Capital contributions                                0             40
                                             ----------     ----------
Cash provided by (used for)
 financing activities                             (112)           693 
                                             ----------     ----------

Change in cash                                     784              0
Cash - beginning of period                          30              0
                                             ----------     ----------
Cash - end of period                         $     814      $       0 
                                             ==========     ==========

          The accompanying notes are an integral
          part of these financial statements.
                                  9                                      
<PAGE>
UNICO, INC.

Notes To Financial Statements
March 31, 1999

1. Basis of Presentation

The financial statements include the assets and liabilities of Paradise
Innovations, Inc. (Paradise).  The Statements of Operations for the periods
ended March 31, 1998 include activity for three and eight months for "Old
Paradise" acquired on July 31, 1997.  The Statements of Operations for the 
three and nine months ended March 31, 1999 include Multiwave's operations from 
November 1, 1998.  Following the legal closing of the acquisition, Uraco 
Holdings, one of Multiwave's former parents along with some other Multiwave 
shareholders, will convert US$ 2 million of Multiwave's debt to equity as a 
capital contribution.  The capital contribution is treated as if it occurred
on October 31, 1998.  All dollar amounts in the tables are in thousands. 
Unico's old operations, held by Intermountain Refining Corp. (IRC) are
included in the investment in Old Unico.  The Company accounts for this
investment at cost as it cannot use IRC's assets for corporate purposes and  
has no control over IRC's operations; therefore, IRC is not consolidated in 
the financial statements presented on this Form 10-QSB.

2. Earnings Per Share 

Earnings (loss) per common share is computed as if Unico issued 5,476,200
of its 6,023,829 common shares issued to acquire Old Unico on October 3, 1996, 
when the Company was first incorporated, and they were continuously out-
standing.  The 5,474 shares of Unico preferred were converted to 5,474,000 
shares of Unico common for purposes of this calculation and were also treated 
as if they had been continuously outstanding from October 3, 1996.  The 
2,388,792 shares issued to effect the Multiwave acquisition were treated as if 
outstanding from October 31, 1998.  No operations of Old Unico are included in 
the calculation as Old Unico is carried at cost.  After July 1, 1998 earnings 
per share were calculated including 1,125,609 shares of Unico common held by 
Old Unico's shareholders.

3. Inventories

Inventories are stated at the lower of cost (on a first-in, first-out basis)
or market value (net realizable value).

                                     March 31, 1999
                                      (unaudited)
     Raw Materials                      $  830
     Work in Process                       648
     Finished Goods                        662
                                        -------
                                        $2,140
                                        =======

Inventory of $434 at June 30, 1998 was all finished goods.
                                  10
<PAGE>
4. The Company Profile

On June 30, 1998, the Company completed acquiring all outstanding shares of 
Paradise Innovations, Inc. (formerly known as Starlicon International 
Corporation) by issuing 5,476,200 new shares of common stock and 5,474 new 
shares of convertible preferred stock.  The Company accounted for this 
acquisition as a reverse acquisition.  The term "Old Unico" is used to refer 
to Unico, Inc. before the June 30, 1998 acquisition.

Starlicon International Corporation (Starlicon) was incorporated under the
laws of the State of California on October 3, 1996.  On July 31, 1997,
Starlicon acquired certain assets, including the Paradise trademark, owned by
Relialogic Technology Corporation (RTC).  On August 4, 1998, Starlicon changed 
its name to Paradise Innovations, Inc. in order to obtain better brand 
recognition and to facilitate future product and company acquisitions. 
Throughout this Form 10-QSB, the Company's Starlicon subsidiary will be 
referred to as Paradise.                                    

On November 30, 1997, Old Unico entered into a Stock Purchase Agreement (the
Agreement) with Starlicon Group, Inc. (SGI) to acquire 100% of the outstanding
stock of privately-held Paradise.  The acquisition was ultimately completed
pursuant to a Novation Agreement (see Form 8-K filed on July 14, 1998).  Under
the terms of the Novation Agreement, the Company issued 5,476,200 shares of
$0.20 par value restricted Common Stock and 5,474 shares of Series A
Convertible Preferred Stock to the shareholders of SGI in exchange for 100% of
the outstanding stock of Paradise.

As part of the Novation Agreement, all of Old Unico's assets not owned by
Intermountain Refining Co., Inc. (IRC) were transferred to IRC in satisfaction
of certain inter-company obligations and as a contribution to IRC's capital. 
IRC is operated and managed at the sole discretion of IRC's management with a
nominee holding Old Unico's proxy to vote IRC's shares.

As a result of the Paradise acquisition, the Company has two operating
entities in unrelated industries, Paradise and IRC.  IRC was incorporated as a
New Mexico corporation in July 1985.  It conducts three categories of
business: petroleum product refining and processing, electrical energy
production and natural gas production.

Through its wholly-owned subsidiary Paradise, the Company markets computer 
peripherals, including video and sound cards, modems, multimedia products and
Internet set-top boxes, a proprietary line of computer peripherals under the
Paradise trademarked brand name.  Paradise's customer base includes private
label computer manufacturers and major technology distributors, such as Tech
Data, Ingram Micro, D&H Distributing, Almo Distributing, Comark and SED. 

The Company intends to focus on its core competence, which is the design, 
manufacture, marketing and distribution of computer peripherals and Internet 
communication products.  Subject to approval by its shareholders, it has 
acquired Multiwave Innovation Pte. Ltd., a Singapore-based design and 
engineering firm which will enhance the Company's ability to bring innovative 

                                      11
<PAGE>
products to market quickly and extend its distribution capabilities in Europe 
and Asia.  The Company is also negotiating with IRC management to spin off its 
energy related assets currently held by IRC to its shareholders of record as
of a record date to be determined.

The Company has submitted preliminary Proxy Statements to the SEC for review 
and is actively revising its filings to meet SEC requirements.  As soon as 
possible, the Company intends to hold a shareholders' meeting.

On December 3, 1998, the Company waived its request for a hearing and 
voluntarily removed its common shares from listing on the Nasdaq SmallCap 
Market.  The shares now trade on the Over The Counter (OTC) Electronic 
Bulletin Board.  The action was taken following discussions with Nasdaq staff 
on various issues facing the Company, including the staff's September 30,
1998, notification that its shares would be removed from listing on its
SmallCap Market.                                     

The Company has reviewed the potential impact of Year 2000 issues.  It 
believes it is in compliance and prepared to operate into the next century.  
The Company believes that in the worst case scenario, which it believes to be 
highly improbable, it may have to conduct business manually for a brief 
period, during which it is replacing or repairing equipment.  It weighed the 
cost of developing a contingency plan to address the worst case scenario 
versus the financial consequences of the worst case scenario.  It believes 
that the cost of developing a contingency plan outweighs the cost of the worst 
case scenario.  The Company believes it has taken a prudent management 
decision in relying on its conclusion that it is prepared to conduct business 
through the New Year.

5. Segments

The Company is engaged in two primary business industries: computer-related
products and oil and gas.  Through its wholly-owned subsidiary Paradise, it 
designs and markets computer peripherals.  Through its wholly-owned subsidiary 
IRC, it engages in energy exploration and generation business.  All of the 
Company's oil and gas related operations are held by IRC and their financial 
results are disclosed in Note 7.

During fiscal 1998, Paradise, the Company's operating subsidiary, engaged in
one business segment - distributing computer chips, both memory and central 
processing units.  Effective August 1, 1997 with the asset acquisition 
previously discussed, Paradise began distributing proprietary products and 
operating in two segments. Paradise is organized by product segments: chips
and proprietary products.

Segment assets at March 31, 1999 were:

                 Proprietary            Old         Elimi-
 Distribution       Products          Unico       nations         Total
 ------------    -----------         ------      --------     ---------
     $537            $11,700         $3,163      ($ 1,963)     $ 13,437

                                      12
<PAGE>
Segment operating results for the three months ended March 31, 1999 were:

                      Distri-    Proprietary         Elimi-
                      bution        Products       nations        Total 
                     -------     -----------      --------     --------

Revenues             $     0       $ 14,926      ($ 3,513)     $ 11,413
Interest, net              0            (11)            0           (11)
Depreciation               0             55             0            55
Amortization               0             61             0            61 
Operating loss           (16)          (948)           21          (943)

Segment operating results for the nine months ended March 31, 1999 were:

                      Distri-    Proprietary         Elimi-
                      bution        Products       nations        Total 
                     -------     -----------      --------     --------

Revenues             $ 4,519       $ 25,154      ($ 7,224)     $ 22,449
Interest, net              0             (7)            0            (7)
Depreciation               0             79             0            79
Amortization               0            108             0           108 
Operating loss          (164)        (1,738)          (15)       (1,917)


6. The Company Strategy 

This discussion contains forward-looking statements.  These statements are 
based on current expectations. Actual results may differ materially.

The Company shifted its focus to its newly acquired hi-tech subsidiary, 
Paradise Innovations, Inc. (Paradise) with the June 30, 1998 acquisition of 
Paradise (formerly known as Starlicon International Corporation).  Paradise 
currently has two primary business segments:  designing, manufacturing, 
marketing and sales of proprietary computer peripherals, multimedia products, 
and Internet related communications products; and chip distribution. 

Consistent with the new focus, on October 27, 1998, the Company signed a 
definitive agreement to acquire all issued and outstanding shares of Multiwave 
Innovation Pte. Ltd. (Multiwave), a Singapore-based engineering company with a 
focus on research and development of high performance multimedia and Internet 
communications products.  Multiwave was formerly owned primarily by NatSteel 
Electronics, Ltd., one of the world's top custom manufacturer of high-tech 
products with clients such as Apple Computers, IBM and Hewlett-Packard, and by 
Uraco Holdings Ltd., a precision manufacturer.  Both NatSteel and Uraco are 
publicly traded on the Singapore stock exchange.  Multiwave has been operating 
as Paradise Innovations (Asia) Pte. Ltd. (Paradise Asia), a wholly owned 
subsidiary of the Company, since October 31, 1998.


                                      13


<PAGE>
With the Multiwave acquisition, the Company is establishing worldwide 
distribution and partnerships with global manufacturing companies to bring 
exciting new products to market quickly as demanded by the hi-tech industry.  
The Company continues to contemplate acquisitions of products and companies 
that fit its strategy of identifying and creating products that can be 
distributed in high volumes by its worldwide distribution partners.

At the 1998 Fall Comdex, the high-tech trade show held in Las Vegas, the 
Company announced the product launch of Internet set-top boxes, in which
it is actively pursuing strategic alliances and partnerships that will 
position this exciting Internet product within a wide-variety of retail 
channels and vertical markets.  The Company expects that sales volumes and 
margins will increase when this product reaches the market in the very near 
future.  In addition, the Company continues to research and develop future 
products to be launched.

The Internet set-top boxes will comprise a substantial part of the Company's 
future sales.  They will command higher unit prices, raising the sales run 
rate.  The Company expects these impacts to take place in the early part of 
the next fiscal year (July 1, 1999 onwards).

7. Old Unico

Old Unico's consolidated balance sheets are summarized as of June 30, 1998 and 
March 31, 1999, and its consolidated statement of operations for the three and
nine months ended March 31, 1999, are:
























                                      14


<PAGE>
OLD UNICO                             

Consolidated Condensed Balance Sheets
(Dollars In Thousands)

                                                 March 31,          June 30,
                                                     1999              1998
                                               -----------       ------------
ASSETS

CURRENT ASSETS
     Cash and cash equivalents                    $ 1,112           $ 1,134 
     Other current assets                             126                82
     Notes receivable from related                  
        Parties                                         -                84
                                              ------------          --------
     TOTAL CURRENT ASSETS                           1,238             1,300 
                                              ------------          --------
PROPERTY, PLANT AND EQUIPMENT, at cost
     Land, buildings and improvements                 434               434 
     Equipment                                        165               165 
     Crude oil refining equipment                   1,183             1,183 
     Co-generation facilities                         290               290 
     Oil and gas properties, 
      (successful efforts method)                     895               895 
                                              ------------          --------
                                                    2,967             2,967 
     Less accumulated depletion 
                and depreciation                   (2,106)           (2,005)
                                              ------------          --------
                                                      861               962 
                                              ------------          --------
OTHER ASSETS
     Investment in Chatfield Dean                     175               301  
     Other assets & deferred charges                  174               176 
                                              ------------          --------
                                                      349               477
                                              ------------          --------
                                                  $ 2,448           $ 2,739 
                                              ============          ========












                                      15
<PAGE>
OLD UNICO

Consolidated Condensed Balance Sheets, (Continued)
(Dollars In Thousands)

                                                 March 31,           June 30,
                                                     1999               1998
                                              ------------      -------------

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                         $       172         $       49
     Taxes other than income taxes                                         3 
                                              ------------      ------------- 
        TOTAL CURRENT LIABILITIES                     172                 52 
                                              ------------      ------------- 

DEFERRED TAXES                                          -                 52

STOCKHOLDERS' EQUITY
     Preferred stock, $0.01 par value,
       authorized 8,000,000 shares, none
       outstanding
     Common stock, $0.20 par value,
       authorized 50,000,000 shares,
       issued and outstanding 1,129,308
       shares                                         226                226 
     Additional paid in capital                     2,214              2,214 
     Less: Treasury stock 3,699 shares                 (9)                (9)
     Retained earnings (accumulated deficit)         (155)               204
                                              ------------       ------------
                                                    2,276              2,635 
                                              ------------       ------------
                                              $     2,448         $    2,739
                                              ============       ============














                                  16


<PAGE>
OLD UNICO

Consolidated Condensed Statements Of Operations
(Dollars In Thousands)
                                                             For Periods Ended 
                                                                March 31, 1999

                                                    Three Months   Nine Months
                                                    ------------  ------------
REVENUES
     Natural gas sales                                  $    55      $    224
                                                    ------------  ------------
COSTS AND EXPENSES
     Cost of sales                                           26            64
     General and administrative                              73           623
     Gain on realization of investment                                   (125)
     Depletion, depreciation
                and amortization                             32           101
     Interest, net                                          (10)          (35)
     Bad debt expense                                         0             8
                                                    ------------  ------------
                                                            121           636
                                                    ------------  ------------

LOSS BEFORE INCOME TAXES                                    (66)         (412)
Current Benefit (Expense) for income taxes                   (1)           53
                                                    ------------  ------------
NET LOSS                                               $    (67)     $   (359)
                                                    ============  ============

8. Multiwave Acquisition

On October 31, 1998, the Company purchased Multiwave for 2,388,792 shares of 
common stock valued at $2,000,000 and incurred $146,000 in expenses to effect 
the acquisition.  The non-cash effects of the acquisition were excluded from 
the Statements of Cash Flows.  The assets acquired and liabilities assumed 
were:
         Cash                                 $  1,360
         Receivables                             3,128
         Inventory                               5,075
         Prepaid expenses                          128
         Other assets                              540
         Property and equipment                    222
                                              ---------
                                                10,453
         Less:   Accounts payable               (8,267)
                 Bank overdrafts                  (193)
                 Other liabilities                (907)
                                              ---------

                                              $  1,086
                                              =========
                                        17
<PAGE>
9. Pro Forma Statements of Operations (Unaudited)

This pro forma Statement of Operations presents the effects of the 
Multiwave acquisition as if it occurred on June 30, 1998.  The pro forma 
statement of operations is not necessarily indicative of the results of 
operations and financial position which will be attained in the future.

Nine months ended March 31, 1999
                        
                        Unico               Pro Forma     Pro Forma
                  As Reported  Multiwave  adjustments  Consolidated
                  ----------- ----------  -----------  ------------
           
Revenues           $ 22,449     $ 9,153    $(381)(b)     $ 31,221
Cost of sales        20,683       8,156     (381)(b)       28,458 
                  ----------- ----------  -----------  ------------
Gross profit          1,766         997                     2,763
Operating expenses    3,683       1,175       71 (a)        4,929
                  ----------- ----------  -----------  ------------
Operating loss       (1,917)       (178)     (71)          (2,166)
Other income            187         492                       679
                  =========== ==========  ===========  =============
Net income (loss)  $ (1,730)    $   314   $  (71)        $ (1,487) 
                  =========== ==========  ===========  =============

Basic earnings 
(loss)per share    $(0.1235)    $0.2957                  $(0.0987)
                  =========== ==========               =============

Weighted average shares
 outstanding     14,003,867   1,061,686                 15,065,553

(a) To record goodwill amortization.
(b) To eliminate intercompany sales.
















                                  18


<PAGE>
10. Pro Forma Statements of Operations (Unaudited)

This pro-forma consolidated statement of operations present the effects of the 
Multiwave acquisition as if it occurred on June 30, 1997.

        Nine Months Ended March 31, 1998   (US$ 000)
                         
                             Unico                    Pro Forma      Pro Forma
                       As Reported     Multiwave    Adjustments   Consolidated
                       -----------     ---------    -----------   ------------
Revenues                  $19,261      $  7,561         $            $ 26,822
Cost of sales              18,833         7,043                        25,876
                       -----------     ---------    -----------   ------------
Gross profit                  428           518                           946
Operating expenses            670         3,580                         4,250
                       -----------     ---------    -----------   ------------
Operating loss               (242)       (3,062)                       (3,304)
Other income (expense)          1           294         (159)(a)          136
                       -----------     ---------    -----------   ------------
Net loss                 $   (241)     $ (2,768)       $(159)        $ (3,168)
                       ===========     =========    ===========   ============


Basic loss per share     $(0.0220)     $(1.1587)                     $(0.2375)
                       ===========     =========                  ============

Average shares 
outstanding             10,950,200    2,388,792                    13,338,992

NOTE:  (a)      To amortize goodwill over five years.




















                                        19


<PAGE>                                   
11. Line of Credit

The Company's Singapore operation had in place prior to the acquisition a Line 
of Credit with a local bank.  The balance owed increased $251,000 in the third 
quarter of fiscal 1999.  Borrowings supplemented operating capital.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Disclaimer

The discussion and analysis below contains trend analysis and other
forward-looking statements within the meaning of Sections 27A and 21E of the
Securities Exchange Act of 1934.  These statements are based on current 
expectations. Actual results may differ materially.

Operating Results

The fiscal 1999 Results of Operations for the current quarter shows a 102% 
increase in sales with a 7% gross margin.  95% of the revenues in the third 
quarter of fiscal 1998 were chip sales with low margins.  The low margin 
coupled with an adjustment of the prior quarter's service revenue and credits 
issued for price protection and customer advertising accounts for the negative 
gross margin.  In contrast, branded peripherals with higher margins comprised 
100% of revenues in 1999's third quarter.

There are two reasons for the increase in sales of branded peripherals in 
1999's third quarter.  First, sales through the Company's distribution 
network increased as a result of targeted sales efforts. Second, and more 
importantly, the acquisition of Multiwave augmented the sales of these branded 
items, particularly in Europe and Asia, by $7,415,000.

Operating expenses as a percentage of sales for the current quarter increased 
from 4% in fiscal 1998 to 15% in fiscal 1999.  Salaries and wages increased 
significantly, due to added staff with the Multiwave acquisition.  This 
increase is a result primarily of the added engineering and R&D capabilities. 
 
Anticipated new products will enable the Company to more fully utilize its 
distribution network with sales of the new products.  With the Acquisition, 
the Company gained a Singapore subsidiary and increased rent expenses.

$53,000 of the reported amortization in 1999's third quarter is for goodwill. 
Approximately 44% of the increase in the category other expenses in the 
Statement of Operations is due to the acquisition.  The category other 
expenses in the current quarter also includes  $171,000 for advertising, 
co-op, product promotion programs and marketing development funds.

The Results of Operations for the nine month periods ending March 31, 1998 
and 1999 reflect a 17% increase in sales with a 313% increase in margin.  
Operating expenses as a percentage of sales for the periods increased from 3%
in fiscal 1998 to 16% in fiscal 1999.

                                   20

<PAGE>
In order to compare the Paradise operations last year with the same operations 
this year, the impacts of the Multiwave acquisition were excluded in the 
following analyses.  The analyses that follow are based on estimates, as the 
sales and expenses resulting from the acquisition were co-mingled with the 
sales and expenses of Paradise in the Company's accounting systems.  

Chip sales decreased from $5.4 million in the third quarter of fiscal 1998 to 
zero in the current quarter.  These sales resulted in $121,000 in gross margin
in the quarter ending March 31, 1998.  Branded peripherals sales increased 
from $261,000 in this same period last fiscal year to $4.0 million in the 
current quarter.  These sales generated $67,000 in margin in the quarter 
ending March 31, 1999.  The lower than expected margin is due to $18,000 in 
credits issued for price protection, $111,000 in freight expenses and $20,000 
in customs duties and fees.  Paradise USA's main supplier is Paradise 
Singapore.  As the shipping of raw materials is now from overseas and its 
costs are internal, there were increases in freight, duties and fees.  The 
Company continues to work closely with its newly acquired Singapore subsidiary 
to reduce these expenses.

Excluding the impact of the Multiwave acquisition, operating expenses as a 
percentage of sales for the most current three month period increased from 4% 
in fiscal 1998 to 21% in fiscal 1999.  Salaries and wages increased due to the 
addition of a seasoned sales force.  The Company also built staff in marketing 
and administration, in anticipation of growth through internal efforts and 
acquisitions. The category of other expenses includes $171,000 for 
advertising, co-op, product promotion programs and marketing development 
funds.  Also included in this category is $93,000 in shareholder expense and 
legal and accounting fees.

Excluding the impact of the Multiwave acquisition, chip sales for the nine 
months ending March 31, 1999 decreased from $17.8 million to $4.5 million, or 
75% and branded peripherals increased from $1.4 million to $8.4 million, or 
500%, in comparison to the nine months ending March 31, 1998.  Operating 
expenses as a percentage of sales for this same period (again excluding 
Multiwave expenses) increased from 4% in fiscal 1998 to 16% in fiscal 1999.

Financial Position

Accounts receivable, inventories and prepaid expenses increased by $3,829,000, 
$1,706,000 and $741,000, respectively, from June 1998 to March 1999.  The 
increases are attributable to the Multiwave acquisition.  The balance sheet 
category prepaid expenses and other current assets include other receivables
of $465,000.  The other receivables are from Singapore tax authorities as a 
result of chipset purchases.  Furniture and equipment at the end of the 
current quarter increased by $338,000 which resulted primarily from the 
acquisition.  Accounts payable increased by $8,006,000 during the nine months 
ended March 1999, also as a result of the acquisition.




                                   21

<PAGE>                                     

Working Capital, Liquidity and Capital Resources

At March 31, 1999, net working capital deficiency was 1.5% of total assets.  
While the Company's business is working capital intensive, management is 
reducing working capital requirements and the Company's financing costs. 

In September 1998, the Company signed an agreement with Silicon Valley Bank 
(SVB) to sell its accounts receivable from time-to-time to SVB.  The terms of 
these sales are 1.5% per month for receivables from OEM/End User customers and 
1.25% for receivables from distributor/reseller customers, plus a 0.5% service 
fee.  The amount of receivables sold and outstanding at any time is limited to 
$800,000.  The Company believes that this agreement will provide working 
capital liquidity while it continues to review its accounts receivable and 
payable terms.

The Company has approached banks to obtain asset-based lines of credit.  It
anticipates that the growth in operations targeted by the Company will require
financing above normal operating requirements.  The funds raised, if any, will 
be used for working capital, capital improvements, marketing and to fund 
growth.

The Company is planning a private placement to obtain equity capitalization
and resources for potential acquisitions.  It worked diligently in that
direction during the third fiscal quarter and is hopeful for closure next 
fiscal year, although there is no certainty of any outcome.

The Company believes that its cash balances and available credit are
sufficient to meet anticipated operating requirements for the foreseeable
future.  There can be no assurance that additional capital beyond the amounts
currently forecasted by the Company will not be required nor that any such
required additional capital will be available on reasonable terms, if at all.

Current Developments

Since December 1998, the Company's management and IRC management have been 
negotiating the terms of the IRC spin-off.  These negotiations are necessary 
as the Novation Agreement, which governs the spin-off, left several critical 
issues undefined.  Moreover, many conditions have emerged since its execution, 
in June 1998, which require modifications to the Novation Agreement.

Despite concerted efforts, the negotiations broke down.  On March 27, 1999, 
the Company made IRC what became the last offer for a negotiated settlement.  
On or about March 31, 1999, IRC filed a complaint with the U.S. District Court 
for failure of the Company and IRC to reach agreement with respect to the 
terms of the spin-off and other matters related to the Novation Agreement.  
Moreover, IRC sought a temporary restraining order enjoining certain Unico 
shareholders from revoking proxies they had granted to an IRC attorney to vote 
their shares in favor of the spin-off.  

On April 1, 1999, at the hearing scheduled by the court, the parties 
stipulated to dismiss the court action without prejudice.  The Company's
                                22
<PAGE>
management and IRC management continue to discuss the most effective manner to 
spin-off IRC.

On October 27, 1998, the Company signed a definitive agreement to acquire 100%
of the outstanding stock of privately held Multiwave Innovation Pte. Ltd.  The
agreement calls for Unico to issue 2,388,792 shares of common shares to the
current shareholders of Multiwave.  These shares have been appraised by 
Cronkite and Kissell, Inc., a valuations firm, at $2 million.
                                       
Multiwave is an engineering company with a focus on research and development
which will provide the Company's distribution company, Paradise Innovations,
with rapid access to new and exciting products.  Multiwave is a pioneer in the
design, development, production and marketing of high performance multimedia
and Internet related products for brand name sales or OEM contracts.  Their
products are modem cards, sound cards, Internet set-top boxes and various
other multimedia upgrade kits and Internet related products.
Multiwave markets products on a transcontinental scale with sales in Japan,
Australia, Malaysia, Korea, Hong Kong, most major European countries, North
America and Latin America.  Multiwave's largest former shareholders are 
NatSteel Electronics Ltd. and Uraco Holdings Ltd., both publicly held
companies listed on the Singapore Stock Exchange.  NatSteel has contract
manufacturing operations in Singapore, Malaysia, Indonesia, Hungary, China and
Mexico. Uraco is a precision manufacturer of disk drives and semiconductor
equipment peripherals.  NatSteel and Uraco will become significant owners of
Unico's common shares following the completion of the merger.

The Multiwave acquisition had a substantial impact on the Company's
financial statements.  The Company accounts for the acquisition using the 
purchase method.  It increased the Company's net assets on its balance sheet. 
 
On the statement of operations, it increases revenues as Multiwave's sales
were consolidated with the Company's as of October 31, 1998 and Multiwave
began operating as Paradise Innovations Pte. Ltd., a wholly owned subsidiary
of the Company.

Following the closing of the acquisition and the exchange of shares, Multiwave 
will convert US$2,000,000 of its debt to Uraco Holdings, one of its former 
parents and its other shareholders, into equity as a capital contribution.  
This Form 10-QSB treats this capital contribution as if it had occurred on 
October 31, 1998.

The Company filed a Form 8-K on November 6, 1998 disclosing the acquisition, 
and a Form 8-K/A on January 22, 1999 containing Multiwave's audited financial 
statements.  On February 18, 1999, it filed another Form 8-K/A with the pro-
forma financial statements.

On February 1, 1999, Mr. Ike Suri, one of the Company's largest shareholders 
and a director of Starlicon Group, Inc., Paradise's former parent company, 
accepted the positions of Chairman of the Board and Chief Executive Officer of 
the Company.

                                  23

<PAGE>
 
PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

Other than collection actions arising in the ordinary course of the Company's
business, no material legal proceedings to which the Company is a party or of
which any of its property is subject are pending or known to be contemplated,
and the Company knows of no legal proceedings pending or threatened, or
judgment against any director or officer of the Company in his or her capacity
as such.

Since December 1998, the Company's management and IRC management have been 
negotiating the terms of the IRC spin-off.  These negotiations are necessary 
as the Novation Agreement, executed in June 1998, which governs the spin-off, 
left several critical issues undefined.  Moreover, many conditions have 
emerged since June which require modifications to the Novation Agreement.

Despite concerted efforts, the negotiations broke down.  On March 27, 1999, 
the Company made to IRC what became the last offer for a negotiated 
settlement.  On or about March 31, 1999, IRC filed a complaint with the U.S. 
District Court for failure of the Company and IRC to reach agreement with 
respect to the terms of the spin-off and other matters related to the Novation 
Agreement.  Moreover, IRC sought a temporary restraining order enjoining 
certain Unico shareholders from revoking proxies they had granted to an IRC 
attorney to vote their shares in favor of the spin-off.  

On April 1, 1999, at the hearing scheduled by the court, the parties 
stipulated to dismiss the court action without prejudice.  The Company's 
management and IRC management continue to discuss the most effective manner to 
spin-off IRC.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

On September 30 , 1998, the Company was advised by Nasdaq that its securities
should be removed from listing on the Nasdaq Smallcap Market based on its 
staff's review of the Company's public filings.  The Company waived its rights
to a hearing with Nasdaq and voluntarily placed its common stock for listing
on the Over the Counter (OTC) Electronic Bulletin Board.

The Company filed a Form S-8 on September 14, 1998 to register 390,000 shares
of its common stock it provided to three individuals as compensation for
consulting services.  Upon further review, the Company deemed it may have
inadvertently violated the intent of the Novation Agreement (see Form 8-K
filed on July 14, 1998).  Following a prudent course of action and with their 
agreements, the Company rescinded the service contracts and canceled the
shares issued to two of the three individuals, Mr. John Hwang, its current
President, and Mr. Ike Suri, a major shareholder of the Company, and, as of
February 1, 1999, its Chairman and Chief Executive Officer.


                                   24

<PAGE>
After further review, the Company decided to rescind the service contract with 
the third unrelated party and has canceled 100,000 of the 130,000 shares 
previously issued to him.  The Company continues to negotiate with the party 
regarding the 30,000 remaining shares.  The Company acknowledges it should 
compensate the party for past services rendered.  The Company canceled a total 
of 360,000 of the 390,000 shares issued for this purpose.

Once shareholder approval has been obtained in the annual shareholders'
meeting on a date to be determined, the Company will issue 2,388,792 shares of 
common stock to consummate the Multiwave acquisition.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable.
                                      
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

In the three months ended March 31, 1999, there were no matters submitted
to a vote of security holders.

ITEM 5. OTHER INFORMATION

On February 1, 1999, Mr. Ike Suri, one of the Company's largest shareholders 
and a director of Starlicon Group, Inc., Paradise's former parent company, 
accepted the positions of Chairman of the Board and Chief Executive Officer of 
the Company.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

A. Exhibits

2.1 Stock Purchase Agreement dated October 27, 1998, filed on November 6, 
    1998, on Form 8-K.
2.2 Preliminary Proxy Statement and related materials filed on February 12,
    1999 Schedule Pre 14A.
3.0 Articles of Incorporation and bylaws are incorporated by reference to
    the Company's registration statement on Form 10 filed September 9, 1986
    and amendments thereto filed on July 29, 1994 on Form 8-K.  Restated and
    amended Articles of Incorporation are filed as an exhibit on February 12,
    1999 on Schedule Pre 14A.
4.1 Instruments defining the rights of security holders including
    Indentures are incorporated by reference to the Company's 
    registration statement on Form 10 filed September 9, 1986.
    Instrument defining rights of holders of Series A preferred stock.
4.3 Warrant issued to William N. Hagler.
4.4 Warrant issued to Rick L. Hurt.
10.1 Lease for premises at 2925 Bayview Drive, Fremont, CA, filed on 
     Form 10-KSB/A on November 3, 1998, incorporated by reference.
10.2 Lease for telephone equipment filed on Form 10-KSB/A on November 3, 
     1998, incorporated by reference.

                                25

<PAGE>
10.3 Contract with Silicon Valley Bank filed on Form 10-KSB/A on November 3,
     1998, incorporated by reference.
10.4 Service contracts are incorporated by reference to Form S-8 filed on
     September 14, 1998.
11.0 Statement regarding computation of per share earnings in Form 10-K
     filed on June 15, 1998.
23.0 Consent from Weinbaum & Yalamanchi, the Company's independent
     accountants in the form of their report dated September 9, 1998 in 
     Item 7 of Form 10-KSB filed on October 15, 1998.
27.0 Financial data schedule pursuant to Item 601(c) of Regulation S-B in
     Item 1 of this Form 10-QSB.
                                  
B. Reports on Form 8-K

On January 5, 1999, the Company filed an 8K announcing the resignation of Mr. 
Wing Po as a member of the Company's Board of Directors.

On January 22, 1999, the Company filed an 8K/A containing Multiwave's audited 
financial statements.

On February 18, 1999, the Company filed an 8K/A that disclosed the unaudited 
pro forma financial information for the combination of Multiwave and the 
Company.

Both of the above 8K/As were amendments to the Form 8K filed November 6, 1998 
which disclosed the definitive agreement for the acquisition of Multiwave 
Innovation Pte. Ltd. by the Company.
























                                    26

<PAGE>

                            SIGNATURES


In accordance with the requirements of the Exchange Act, the Registrant caused 
this report to be signed on its behalf by the undersigned, thereunto duly 
authorized.

                            Unico, Inc.
            ---------------------------------------------------------------
                            (Registrant)


Date May 17, 1999                       /s/ John Hwang
    ------------------            ---------------------------------
                                        Signature(1)
                                        John Hwang
                                        President

Date May 17, 1999                      /s/ Henry Tang
    ------------------            ---------------------------------
                                        Signature(1)
                                        Henry Tang
                                        Vice President & Secretary


----------------------
(1) Print name and title of each signing officer under his signature.











                                  27