SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 ----------

                                    FORM 10-Q
(Mark One)
_X_   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934


For the quarterly period ended December 31, 1999

                                       OR

___      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
         EXCHANGE ACT OF 1934


For the transition period from  _______________  to  __________________


                        Commission file number 000-17259


                             GC INTERNATIONAL , INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

       CALIFORNIA                                       94-2278595
--------------------------------------------------------------------------------
(State or other jurisdiction of
incorporation or organization)              (I.R.S. employer Identification no.)

156 BURNS AVENUE, ATHERTON CALIFORNIA                            94027
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                      (Zip Code)


Registrant's Telephone Number, including Area Code (650) 322-8449

                                      N/A
                      -------------------------------------
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 _____


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


     Indicate by check mark whether the  registrant  has filed all documents and
reports  required  to be  filed by  Section  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.    Yes ___   No ___



                      APPLICABLE ONLY TO CORPORATE ISSUERS:

    Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:   5,423,191.
                                                  -----------

<PAGE>
                             GC INTERNATIONAL, INC.
                                      INDEX
                                      -----

PART I.   FINANCIAL INFORMATION:
--------------------------------

Item 1.      Financial Statements

               Unaudited Condensed Balance Sheets
                   December 31, 1999 and June 30, 1999........................1


               Unaudited Condensed Statements of Operations
               Three and six months ended December 31, 1999
                   and December 31, 1998......................................2

                     Unaudited Statements of Cash Flows for the six months
                       Ended December 31, 1999 and December 31, 1998..........3

                     Notes to Unaudited Condensed Financial Statements
                       Ended December 31, 1999 and December 31, 1998..........4



Item 2.      Management's Discussion and Analysis of
                      Financial Condition & Results of Operation..............4



PART II.   OTHER INFORMATION:
-----------------------------

Item 1.      Legal Proceedings................................................6


Item 2.      Changes in Securities............................................6

Item 3.      Defaults Upon Senior Securities..................................6


Item 4.      Submission of Matters to a Vote
              of Security Holders.............................................6

Item 5.      Other Information................................................6


Item 6.      Exhibits & Reports on Form 8-K...................................6


             Signatures ..................................................... 7




<PAGE>


                             GC INTERNATIONAL, INC.
<TABLE>
<CAPTION>
                                 BALANCE SHEETS

                                                  December 31, 1999  June 30, 1999
                                                      Unaudited
                                                     -----------     -------------
<S>                                                  <C>            <C>
ASSETS
Current Assets
  Cash ...........................................   $   184,236    $   371,085
  Accounts receivable, net of
  Allowance for doubtful accounts ................       550,690        508,214
  Of $5,133 at September 30 and
   $5,133 at June 30, 1999
  Inventories ....................................       472,115        472,931
  Prepaid expenses ...............................        26,754          6,787
  Prepaid income tax .............................          --           26,561
  Deferred tax benefit ...........................        18,396         18,395
                                                     -----------    -----------

              Total current assets ...............     1,252,190      1,403,972

       Property and equipment, net ...............       505,031        548,106
       Deposits & deferred expenses ..............        50,699         35,999
       Deferred tax benefit ......................       336,734        336,734
                                                     -----------    -----------

               Total assets ......................   $ 2,144,654    $ 2,324,812
                                                     ===========    ===========


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
       Accounts payable ..........................   $   142,554    $    68,776
       Accrued expenses ..........................       576,335        646,409
       Income taxes payable ......................        (7,491)          --
       Notes payable .............................       252,087        258,188
                                                     -----------    -----------

           Total current liabilities .............       963,486        973,373

Other Liabilities:
       Notes payable, net of current portion .....       146,032        181,194
       Other long term debt ......................       320,000        320,000

Stockholders' equity:
       Common stock, without par value ...........     1,759,149      1,770,007
       Accumulated deficit .......................    (1,044,013)      (919,762)
                                                     -----------    -----------

           Net stockholders' equity ..............       715,136        850,245
           Total Liabilities and
              Stock Holders Equity ...............   $ 2,144,654    $ 2,324,812
                                                     ===========    ===========
</TABLE>


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

                                        1
<PAGE>
                             GC INTERNATIONAL, INC.
<TABLE>
<CAPTION>
                            STATEMENTS OF OPERATIONS

                                             3 Months Ended               6 Months Ended
                                             --------------               --------------
                                         12/31/99       12/31/98       12/31/99       12/31/98
                                             (Unaudited)                   (Unaudited)
                                      --------------------------    --------------------------
<S>                                   <C>            <C>            <C>            <C>
Net sales .........................     1,190,937      1,340,383      2,228,836    $ 2,796,596
Cost of sales .....................       856,959        885,789      1,571,684      1,812,890
                                      -----------    -----------    -----------    -----------

Gross profit ......................       354,078        454,594        657,152        983,706

Operating expenses:
  Selling .........................        46,082         73,875         87,994        142,525
  General & Admin .................       327,375        308,394        641,316        670,321
                                      -----------    -----------    -----------    -----------

Income (loss)from operations ......       (19,380)        72,324        (72,158)       170,860


Other income (expense)
  Interest net ....................          (719)          (584)        (4,206)        (4,624)
  Other ...........................       (42,041)       (49,821)        47,889        (63,002)
                                      -----------    -----------    -----------    -----------

Income (loss) before
  income taxes ....................       (62,140)        21,919       (124,242)       103,234


Provision for income taxes ........          --            9,210           --           18,220
                                      -----------    -----------    -----------    -----------

Net income (loss) .................   $   (62,140)   $    12,709    $  (124,252)   $    85,014
                                      ===========    ===========    ===========    ===========


Earnings per common share
  Primary and Fully diluted .......   $      (.02)   $      0.00    $      (.01)   $      0.01

Weighted average shares outstanding
  Primary .........................     5,423,191      5,423,191      5,423,191      5,423,191
  Fully diluted ...................     5,423,191      5,423,191      5,423,191      5,423,191
</TABLE>


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

                                        2
<PAGE>
                             GC INTERNATIONAL, INC.
<TABLE>
<CAPTION>
                            STATEMENTS OF CASH FLOWS

                                                             6 Months Ended
                                                   ----------------------------------
                                                   December 31, 1999 December 31,1998
                                                        (Unaudited)   (Unaudited)
                                                         ---------    -----------
<S>                                                      <C>          <C>
Cash flows from operating activities:
Net income ...........................................   $(124,252)   $  85,014
Adjustments to reconcile net income to net
  cash provided by operating activities:
    Depreciation and amortization ....................      53,106       55,423
    Gain on sale of property, plant & equipment ......        --         (1,850)

Adjustments to cash from operations:
    Accounts Receivables ........(incr)decr  .........     (42,476)     (10,455)
    Inventory ...................(incr)decr    .......         816      (51,635)
    Accrued payable ............. incr(decr)   .......      73,778       70,629
    Accrued liabilities ......... incr(decr)   .......     (70,074)     (28,447)
    Income taxes payable ........ incr(decr)   .......      (7,491)       7,455
    Prepaid income taxes ........              .......      26,561         --
    Reserve liability ........... incr(decr)   .......        --           --
    Prepaid expenses ............(incr)decr    .......     (19,967)     (22,789)
    Other assets & deposits .....(incr)decr    .......     (14,700)      (7,232)
                                                         ---------    ---------

      Net cash provided by operating activities ......    (124,699)      96,112

Cash flows from investing activities:
      Purchase of property, plant & equipment ........     (10,030)    (130,408)
      Proceeds from sale of property, plant
        & equipment ..................................        --          1,850
                                                         ---------    ---------

      Net cash provided (used) by investing activities     (10,030)    (128,558)

Cash flows from financing activities:
      Payments on short term borrowings ..............      (6,100)       1,415
      Payments on long term debt .....................     (35,161)      36,886
      Re-purchase of common stock ....................     (10,859)        --
      New long term borrowings .......................        --           --
                                                         ---------    ---------

       Net cash provided by financing activities .....     (52,120)      38,302
                                                         ---------    ---------

Increase (decrease) in cash and cash equivalents .....    (186,849)       5,856
    Cash at beginning of period ......................     371,085      323,920
                                                         ---------    ---------
Cash at end of period ................................   $ 184,236    $ 329,776
                                                         =========    =========
</TABLE>

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

                                        3
<PAGE>
                             GC INTERNATIONAL, INC.
                     Notes to Condensed Financial Statements
Note 1
------
The financial statements included herein have been prepared by GC International,
Inc.,  ("GCI")  without  audit,  and include all  adjustments  which are, in the
opinion  of  management,  necessary  for a fair  presentation  of the  Company's
financial  position as of December  31, 1999,  and  December  31, 1998,  and the
results of it's  operation for the three and six months ended  December 31, 1999
and  1998.  Certain  information  and  note  disclosures  normally  included  in
financial  statements have been condensed or omitted  pursuant to such rules and
regulations  of the  Securities  and Exchange  commission,  although the Company
believes that it's  disclosure in such financial  statements is adequate to make
the information presented not misleading.

These  financial  statements  should be read in  conjunction  with the Company's
financial  statements  and notes  thereto  included in the  Company's  Form 10-K
Annual Report filed with the Securities and Exchange Commission.  The results of
operations  for the  three  and six  months  ended  December  31,  1999  are not
necessarily indicative of the results of the full year.

Note 2
------
Inventories  are  stated at the lower of cost  (first-in,  first-out  method) or
market and consist of the following:

                                       December 31            December 31
                                          1999                   1998
                                          ----                   ----

           Raw materials                 $66,101               $ 58,036
           Work in process               406,014                473,372
                                         -------                -------

                  Total                 $472,115               $531,408
                                         =======                =======

Inventories  increased  at the end of December  1998 due to work in process that
could not be shipped or was not  scheduled to be shipped at the end of December.
Inventories are expected to decrease during the next quarter.

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

Liquidity and Capital Resources
-------------------------------
As of December 31, 1999,  the  Company's  cash position was $184,236 and working
capital  was  $288,704,  compared to cash of  $371,085  and  working  capital of
$430,599 in the prior period. The cash position decreased during the period as a
result of continuing  losses  resulting from poor shipments at the ALJ division.
Management  believes that these funds and cash flow from operations are adequate
to fund ongoing  operations,  if the  division can increase  sales and cash flow
during 2000. However, there is no assurance that these funds will prove adequate
if the Company is unable to obtain positive cash flow operations in the future.

                                        4

<PAGE>
Capital Equipment Requirements and Equipment Leases
---------------------------------------------------
The Company,  from time to time, has satisfied  certain of its capital equipment
requirements  by entering into  equipment  leases with third parties or purchase
arrangements with the equipment manufacturers. During 2000, the Company has been
able to arrange satisfactory purchase contracts.

The Company  anticipates that additional  capital equipment will be required for
the Company's  operating  divisions  during 2000.  The Company will use its best
efforts to satisfy  its  capital  needs by using  internally  generated  cash in
excess  of  debt   repayments,   cash  resources  and  by  entering  into  other
arrangements  as available.  There can be no assurances that cash resources will
be adequate.

Factors Affecting Future Results
--------------------------------
The Company  must make  payments to certain  creditors  in  accordance  with the
Company's 1991 Plan of  Reorganization.  The total of the  non-interest  bearing
notes,  at December 31, 1999 was  $170,365  compared to $186,399 at December 31,
1998.

The Company settled an interim claim with the EPA for $100,000 plus interest for
a Superfund Site cleanup in connection  with waste  generated in the 1970's by a
former division.  The Company made the fourth payment of $20,000 in August 1999,
with the last payment due August 2000. Based on the settlement  reached with the
EPA in 1996 for the interim  claim,  the Company  believes  that its reserve for
future  liability  in the  amount of  $120,000  is  adequate  to cover any final
settlement.

As of February 1st the year 2000,  there were no problems at the company and its
suppliers  and  customers.  There  has been no  current  impact  on  operations,
suppliers and payments from customers.


Results of Operations
---------------------
Comparison  of three and six months ended  December  31, 1999,  and December 31,
1998.

The  Company's  sales for the six months  ending  December 31,  1999,  decreased
$567,760 or 20.3% and for the 3 month  period ended  December  31,  1999,  sales
decreased by $149,446 or 11.1% over the comparable period of the prior year.

There has been a noticeable decrease in the Company's markets, the backlog which
was  approximately  $1,250,417 at June 30, 1999 and $1,852,052 at June 30, 1998,
increase at December 31, 1999 to $1,527,558.  Significantly,  a substantial part
of the backlog is stretched out. The back-log has increased  from  $1,364,960 at
September  30,  1999.  If orders  continue to be booked as a result of continued
sales and marketing efforts, shipment could increase during the third quarter to
enable a return to  profitability.  However,  there are no  assurances  that the
Company  will be able to do so. The company has been  increasing  the  marketing
efforts by adding mailings to the schedule and is changing sales representatives
in underperforming territories.

                                        5
<PAGE>
The Apollo  Division has improved  production  yields and division  profits have
held up.  Apollo  shipments  are expected to remain  stable  during the next six
months and are  therefore  expected to provide  profits and cash flow.  However,
Apollo  increases  are not  expected  to offset ALJ  decreases.  Therefore,  the
Company's  profits,  cash  position  and  earnings  per share will  decrease  as
compared to 1999.

The Company's  cost of sales  increased  4.2% in the 6 months ended December 31,
1999 over the comparable  period.  Operating  expenses  decreased  $8,811 due to
lower  selling  costs as  compared  to the prior six month  period.  The Company
expects  to  continue  heavy  selling  activities  during the next six months to
obtain new  tooling  and  orders.  Administrative  expense  increased  due to an
increase in management and sales personnel.  As a result, the net loss increased
in the  quarter to  $62,140(5%)  as  compared  to profit of $12,709 in the prior
period.

As the backlog and monthly  shipments have increased over the first half, ALJ is
now facing the  problem  of a tight  labor  market.  This  results in  increased
overtime and labor costs to meet customer requirements, thereby decreasing gross
margins. If ALJ is unable to hire sufficient  qualified  personnel,  profits and
cash flow will continue to be adversely affected.




                                        6
<PAGE>
PART II



Item 1   Legal Proceedings:  None

Item 2   Changes in Securities:  Not Applicable

Item 3   Defaults upon Senior Securities:  Not Applicable

Item 4   Submission of Matters to a Vote of Securities Holders:  Not Applicable.

Item 5   Other Information:  None

Item 6   Exhibits and Reports on Form 8K:  None




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




                             GC INTERNATIONAL, INC.
                                   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.


                             GC International, Inc.
                                  (Registrant)


  February 10, 1999                  F. Willard Griffith II
-------------------                  ----------------------
     Date                            F. Willard Griffith II
                                     Chairman, Chief Executive Officer and
                                     Chief Financial Officer


                                        7