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        September 30, 1999
                               --------------------------------
                                       OR

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


For the transition period from                       to
                               ---------------------    -----------------------


                        Commission file number 000-17259


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

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


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



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

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


   Indicate  by check mark  whether  the  registrant  (1) has filled all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.  Yes ___   No _X_



                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 X
                         ---   ---


                      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
               September 30, 1999 and June 30, 1999...........................1


             Unaudited Condensed Statements of Operations
               Three months ended September 30, 1999
                 and September 30, 1998.......................................2

             Unaudited Statements of Cash Flows for the Three months
               Ended September 30, 1999 and September 30, 1998................3

             Notes to Unaudited Condensed Financial Statements
               Ended September 30, 1999 and September 30, 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 ............................................ 6

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


                                                   September 30         June 30
                                                       1999              1999
                                                   ------------         -------
<S>                                                 <C>            <C>
ASSETS
Current Assets
       Cash ........................................ $   293,986    $   371,085
       Accounts receivable, net of .................     582,013        508,213
           Allowance for doubtful accounts
           Of $5,133 at September 30 and
           $5,133 at June 30, 1999
       Inventories .................................     471,273        472,931
Prepaid expenses ...................................      (2,747)         6,787
Deferred tax benefit ............................... $    18,395    $    26,044
                                                       ----------      ---------

              Total current assets .................   1,362,919      1,385,060

       Property and equipment, net .................     518,639        548,106
       Deposits & deferred expenses ................      46,505         35,999
       Deferred tax benefit ........................     336,734        281,164
                                                       ----------     ----------

               Total assets ........................ $ 2,264,797    $ 2,250,329
                                                       ==========     ==========



LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
       Accounts payable ............................ $   171,538    $    68,776
       Accrued expenses ............................     628,885        654,408
       Income taxes payable ........................     (34,561)        (2,725)
       Notes payable ...............................     252,536        258,187
                                                       ----------     ----------

           Total current liabilities ...............   1,018,398        978,646


Other Liabilities:
       Notes payable, net of current portion .......     146,467        181,193
       Other long term debt ........................     320,000        320,000

Stockholders' equity:
       Common stock, without par value .............   1,761,805      1,770,007
       Accumulated deficit .........................    (981,873)      (999,517)
                                                       ----------     ----------

           Net stockholders' equity ................     779,932        770,490

           Total Liabilities and
              Stock Holders Equity ................. $ 2,264,797    $ 2,250,329
                                                       ==========     ==========
</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
                                                   -----------------------------
                                                   September 30,   September 30,
                                                       1999            1998
                                                    (Unaudited)      (Unaudited)
                                                   -------------   -------------


<S>                                                  <C>            <C>
Net sales ........................................   $ 1,037,899    $ 1,456,212

Cost of sales ....................................       734,825        927,101
                                                      -----------    -----------

Gross profit .....................................       303,074        529,111

Operating expenses:
       Selling ...................................        41,911         68,650
       General & Administrative ..................       313,941        361,926
                                                      -----------    -----------

Income from operations ...........................       (52,778)        98,535

Other income (expense)
       Interest, net .............................        (3,487)        (4,040)
       Other .....................................        (5,847)       (13,181)
                                                      -----------    -----------

Income before income taxes .......................       (62,113)        81,314

Provision for income taxes .......................             0          9,010
                                                      -----------    -----------

Income before extraordinary items ................       (62,113)        72,305

Net income .......................................   $   (62,113)   $    72,305
                                                      ===========    ===========

Earnings per common share
       Primary and Fully diluted
         Income (loss) from con't operations .....   $      (.01)   $      0.01


Weighted average shares outstanding
       Primary ...................................     5,423,191      5,548,401
       Fully diluted .............................     5,423,191      5,548,401
</TABLE>



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

                                        2
<PAGE>
                             GC INTERNATIONAL, INC.
<TABLE>
<CAPTION>
                            STATEMENTS OF CASH FLOWS
                                                        September 30    June 30
                                                           1999           1998
                                                        ------------    --------
<S>                                                     <C>          <C>
Cash flows from operating activities:
-------------------------------------
Net income ............................................  $ (62,113)   $  72,305
Adjustments to reconcile net income to net
  cash provided by operating activities:
       Depreciation and amortization ..................     31,265       31,843
       Gain on sale of property, plant & equipment ....       --         (1,850)


Adjustments to cash from operations:
------------------------------------
       Accounts Receivables ..............  (incr)decr     (73,800)     (58,533)
       Inventory .........................  (incr)decr       1,658       (9,507)
       Accrued payable ...................  (incr)decr     102,762       53,428
       Accrued liabilities ...............  (incr)decr     (25,523)       1,576
       Income taxes payable ..............  (incr)decr      47,921       24,915
       Deferred tax ....................... (incr)decr     (47,921)        --
       Prepaid expenses ................... (incr)decr       9,534        5,818
       Other assets & deposits ............ (incr)decr     (10,505)      (3,252)
                                                          ---------    ---------

       Net cash provided by operating activities ......    (26,721)     116,742

Cash flows from investing activities:
-------------------------------------
       Purchase of property, plant & equipment ........     (1,797)     (33,398)
       Proceeds from sale of property, plant
         & equipment ..................................       --          1,850
                                                           ---------    --------

       Net cash provided by financing activities ......     (1,797)     (31,548)

Cash flows from financing activities:
-------------------------------------
       Payments on short term borrowings ..............     (5,652)      (8,548)
       Payments on long term debt .....................    (34,726)     (31,813)
       Re-purchase of common stock ....................     (8,203)        --
                                                          ---------    ---------

       Net cash provided by investing activities ......    (48,581)     (40,361)

Increase in cash and cash equivalents .................    (77,099)      44,833

Cash at beginning of period ...........................    371,085      323,920
                                                          ---------    ---------

Cash at end of period .................................  $ 293,986    $ 368,753
                                                          =========    =========
</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 September 30, 1999 and June 30, 1999,  and the results
of it's  operation  for the three  months  ended  September  30,  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 months ended  September  30, 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:

                                          September 30           September 30
                                              1999                   1998
                                              ----                   ----

               Raw materials               $ 74,630               $ 60,675
               Work in process              396,643                428,605
                                            -------                -------

                      Total                $471,273               $489,280
                                            =======                =======

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

Liquidity and Capital Resources
-------------------------------
As of September 30, 1999,  the Company's  cash position was $293,986 and working
capital  was a positive  $344,522,  compared  to cash of  $371,085  in the prior
period.  The cash  position  declined  during the quarter as a result of current
quarter  losses  due to a  downturn  in orders at the  Company's  ALJ  Division.
Management  believes that these funds and cash flow from operations are adequate
to fund ongoing operations. However, there is no assurance that these funds will
prove  adequate  if the Company is unable to  maintain  positive  cash flow from
operations in the future.

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.

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 and by entering into other  arrangements as available.
There can be no assurances that cash resources will be adequate.

                                        4
<PAGE>
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 September 30, 1999 was $174,857  compared to $190,899 at September 30,
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.

The Company has reviewed its internal  computer systems for year 2000 compliance
and is satisfied  that all of its internal  computer  systems are either already
year-2000  compliant or can be made year-2000 compliant through simple upgrades.
The Company does not expect the costs of achieving full year-2000  compliance to
be material for the internal  systems.  However,  there can be no assurance that
coding  errors  or  other  defects  will not be  discovered  in the  future.  In
addition,  since the Company is very small in relation to many of its  customers
and suppliers,  the Company has been unable to ascertain if any of its suppliers
and  customers are year-2000  compliant.  Therefore,  there can be no assurances
that  the  Company's  cash  flow  and  materials  from  suppliers  will  not  be
interrupted   which  could  result  in  severe   disruptions  in  the  Company's
operations.


Results of Operations
---------------------
Comparison of three months ended September 30, 1999, and September 30, 1998.

The Company's  sales for the three months ending  September 30, 1999,  decreased
$418,313 or 28.7% over the comparable period of the prior year due to completion
of certain contracts with a large customer.  Unfortuantely, the orders could not
be replaced.

As a result of the  completed  contracts,  the backlog  which was  approximately
$1,852,052 at June 30, 1999,  decreased  significantly and at September 30, 1999
was approximately $1,364,960.

The cost of sales increased to 70.8% compared to 63.7% in the prior year period,
primarily  as a  result  of  reduced  sales.  Operating  expenses  decreased  to
$355,852(approximately  $74,724)  compared to $430,576 in the prior  period as a
result of  reduced  expenditures.  As a  result,  the loss for the  quarter  was
$62,113 compared to a profit of $81,314 for the prior year.  Therefore,  the net
loss after  taxes was  $62,113  or (6%) of sales  versus 5% profit for the prior
year. The loss per share for the three month period was $.01/share compared to a
profit of $.01/share for the 1998 period.

                                        5
<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



                                       6
<PAGE>
                             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)


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