<PAGE>   1


                                  UNITED STATES
                       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 PERIOD ENDED SEPTEMBER 30, 2000

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________.

Commission file # 000-28229

                           CALIPER TECHNOLOGIES CORP.
             (Exact name of registrant as specified in its charter)

          Delaware                                    33-0675808
  (State of Incorporation)               (I.R.S. Employer Identification Number)

                               605 FAIRCHILD DRIVE
                          MOUNTAIN VIEW, CA 94043-2234
              (Address and zip code of principal executive offices)

       Registrant's telephone number, including area code: (650) 623-0700



     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 [ ]



COMMON SHARES OUTSTANDING ON NOVEMBER 1, 2000:   23,605,683

<PAGE>   2

                           CALIPER TECHNOLOGIES CORP.
                                TABLE OF CONTENTS


<TABLE>
<CAPTION>

                                                                                  Page
                                                                                  ----
<S>      <C>                                                                       <C>
PART I             FINANCIAL INFORMATION

         Item 1.   Financial Statements (unaudited)
                        Condensed Balance Sheets as of  September 30, 2000
                             and December 31,  1999............................ .... 2
                        Condensed Statements of Operations for the Three and
                             Nine Months Ended September 30, 2000 and 1999.......... 3
                        Condensed Statements of Cash Flows for the  Nine Months
                             Ended September 30, 2000 and 1999...................... 4

                   Notes to Unaudited Condensed Financial Statements................ 5

         Item 2.   Management's Discussion and Analysis of Financial Condition
                        and Results of Operations................................... 8

         Item 3.   Quantitative and Qualitative Disclosures About Market Risk.......18



PART II            OTHER INFORMATION

         Item 1.   Legal Proceedings................................................18


         Item 2.   Changes in Securities and Use of Proceeds........................19


         Item 3.   Defaults Upon Senior Securities..................................20


         Item 4.   Submission of Matters to a Vote of Security Holders..............20

         Item 5.   Other Information................................................20


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


SIGNATURES..........................................................................22

</TABLE>


                                       1
<PAGE>   3

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                           CALIPER TECHNOLOGIES CORP.

                            CONDENSED BALANCE SHEETS
                                 (IN THOUSANDS)



<TABLE>
<CAPTION>

                                                                      SEPTEMBER 30,    DECEMBER 31,
                                                                          2000            1999
                                                                      ------------     -----------
                                                                       (unaudited)
<S>                                                                    <C>              <C>
ASSETS
Current assets:
Cash and cash equivalents ........................................      $  48,723       $  44,772
Marketable securities ............................................         85,106          28,520
Accounts receivable, net .........................................          1,628           1,055
Other receivable .................................................         12,000               -
Inventories ......................................................          2,225             287
Prepaid expenses and other current assets ........................          1,093             754
                                                                        ---------       ---------
Total current assets .............................................        150,775          75,388
Marketable securities ............................................         56,899          26,924
Property and equipment, net ......................................          6,416           5,346
Notes receivable from officers ...................................            615             625
Other assets, net ................................................            660             564
                                                                        ---------       ---------
Total assets .....................................................      $ 215,365       $ 108,847
                                                                        =========       =========


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .................................................      $   1,650       $   1,321
Accrued compensation .............................................          1,721           1,082
Other accrued liabilities ........................................          2,444           1,011
Deferred revenue .................................................          3,258           2,210
Current portion of equipment financing ...........................          1,665           1,454
                                                                        ---------       ---------
Total current liabilities ........................................         10,738           7,078
Noncurrent portion of equipment financing ........................          3,614           3,671
Deferred revenue..................................................            394               -
Other noncurrent liabilities .....................................            506             235

Commitments
Stockholders' equity:
Common stock .....................................................             23              21
Additional paid-in capital .......................................        248,368         142,401
Deferred stock compensation ......................................         (5,654)         (9,317)
Accumulated deficit ..............................................        (42,584)        (35,109)
Accumulated other comprehensive loss .............................            (40)           (133)
                                                                        ---------       ---------
Total stockholders' equity .......................................        200,113          97,863
                                                                        ---------       ---------
Total liabilities and stockholders' equity .......................      $ 215,365        $108,847
                                                                        =========       =========
</TABLE>

                             See accompanying notes.


                                       2
<PAGE>   4

                           CALIPER TECHNOLOGIES CORP.
                       CONDENSED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                                                 THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                   SEPTEMBER 30,                   SEPTEMBER 30,
                                                               ----------------------        -----------------------
                                                                 2000           1999           2000           1999
                                                               --------       --------       --------       --------
<S>                                                            <C>             <C>           <C>            <C>
          Revenue .......................................      $  5,507        $ 3,414       $ 13,576       $  8,859

          Costs and expenses:
            Research and development ....................         9,826          4,860         24,322         12,302
            General and administrative ..................         2,464          1,400          7,300          3,487
            Amortization of deferred stock compensation
             (1) .........................................        1,020            936          3,663          1,997
                                                               --------       --------       --------       --------
          Total costs and expenses ......................        13,310          7,196         35,285         17,786
                                                               --------       --------       --------       --------
          Operating loss ................................        (7,803)        (3,782)       (21,709)        (8,927)
          Interest income, net ..........................         1,870            212          4,528            801
          Litigation settlement .........................        12,000              -         12,000              -
                                                               --------       --------       --------       --------
          Net income/(loss) before accounting change ....         6,067         (3,570)        (5,181)        (8,126)
          Cumulative effect of a change in accounting
             principle ..................................             -              -         (2,294)             -
                                                               --------       --------       --------       --------
          Net income/(loss) .............................         6,067         (3,570)        (7,475)        (8,126)
          Accretion on redeemable convertible preferred
            stock .......................................             -           (608)             -         (1,822)
                                                               --------       --------       --------       --------
          Net income/(loss) attributable to common
            stockholders ................................      $  6,067       $ (4,178)      $ (7,475)      $ (9,948)
                                                               ========       ========       ========       ========
          Net income/(loss) per common share, basic:
          Net income/(loss) before accounting change ....      $   0.28       $  (1.48)      $  (0.24)      $  (3.71)
          Cumulative effect of a change in accounting
            principle ...................................             -              -          (0.11)             -
                                                               --------       --------       --------       --------
          Net income/(loss) per share ...................      $   0.28       $  (1.48)      $  (0.35)      $  (3.71)
                                                               ========       ========       ========       ========
          Shares used in computing net income/(loss) per
            common share, basic .........................        21,971          2,821         21,278          2,684

          Net income/(loss) per common share, diluted:
          Net income/(loss) before accounting change ....      $   0.25       $  (1.48)      $  (0.24)      $  (3.71)
          Cumulative effect of a change in accounting
            principle ...................................             -              -          (0.11)             -
                                                               --------       --------       --------       --------
          Net income/(loss) per share ...................      $   0.25       $  (1.48)      $  (0.35)      $  (3.71)
                                                               ========       ========       ========       ========
          Shares used in computing net income/(loss) per
            common share,  diluted ......................        24,281          2,821         21,278          2,684

          Pro forma net income/(loss) per share,
            diluted.......................................     $   0.25       $  (0.23)      $  (0.35)      $  (0.53)
                                                               ========       ========       ========       ========
          Shares used in computing pro forma net
          income/(loss) per share, diluted ..............        24,281         15,354         21,278         15,217

          (1) Amortization of deferred stock compensation
          relates to the following:

          Research and development ......................      $    357       $    221       $  1,293       $    405
          General and administrative ....................           663            715          2,370          1,592
                                                               --------       --------       --------       --------
          Total .........................................      $  1,020       $    936       $  3,663       $  1,997
                                                               ========       ========       ========       ========
</TABLE>


                             See accompanying notes.


                                       3
<PAGE>   5

                           CALIPER TECHNOLOGIES CORP.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                               NINE MONTHS ENDED
                                                                 SEPTEMBER 30,
                                                           -------------------------
                                                             2000            1999
                                                           ---------       ---------
<S>                                                        <C>             <C>
OPERATING ACTIVITIES
Net loss ...............................................   $  (7,475)      $  (8,126)
Adjustments to reconcile net loss to net cash used in
Operating activities:
Cumulative effect of a change in accounting principle ..       2,294
Depreciation and amortization ..........................       1,449             935
Amortization of deferred stock compensation ............       3,663           1,997
Stock options issued to non-employees ..................         483               -
Issuance of common and preferred stock for services ....           -              83
Changes in operating assets and liabilities:
Accounts receivable ....................................        (573)            692
Other receivable .......................................     (12,000)              -
Notes receivable from officers .........................          10            (425)
Inventories ............................................      (1,938)           (206)
Prepaid expenses and other assets ......................        (339)           (161)
Other noncurrent asset .................................        (182)              -
Accounts payable and other accrued liabilities .........       1,762             797
Accrued compensation ...................................         639             258
Deferred revenue .......................................        (852)          1,773
Other noncurrent liabilities ...........................         271             184
                                                           ---------       ---------
Net cash used in operating activities ..................     (12,788)         (2,199)
                                                           ---------       ---------

INVESTING ACTIVITIES
Purchases of available-for-sale securities .............    (136,731)        (16,610)
Proceeds from sales of available-for-sale securities ...      12,012           4,813
Proceeds from maturities of available-for-sale
  securities ...........................................      38,251          13,499
Capital expenditures ...................................      (2,433)         (2,995)
                                                           ---------       ---------
Net cash used in investing activities ..................     (88,901)         (1,293)
                                                           ---------       ---------

FINANCING ACTIVITIES
Proceeds from equipment financing ......................       1,378           2,523
Payments of obligations under equipment financing ......      (1,224)           (821)
Proceeds from issuance of common stock .................     105,486             260
                                                           ---------       ---------
Net cash provided by financing activities ..............     105,640           1,962
                                                           ---------       ---------
Net decrease in cash and cash equivalents ..............       3,951          (1,530)
Cash and cash equivalents at beginning of period .......      44,772           5,158
                                                           ---------       ---------
Cash and cash equivalents at end of period .............   $  48,723       $   3,628
                                                           =========       =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid ..........................................   $     464       $     275
                                                           =========       =========

SCHEDULE OF NONCASH TRANSACTIONS
Deferred stock compensation ............................   $       -       $   7,355
                                                           =========       =========
</TABLE>


                             See accompanying notes.


                                       4
<PAGE>   6

                           CALIPER TECHNOLOGIES CORP.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

BASIS OF PRESENTATION

    The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring entries) considered necessary for a fair presentation have
been included. Operating results for the three and nine months ended September
30, 2000 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2000. For further information, refer to the
financial statements and notes thereto included in the Annual Report on Form
10-K for the year ended December 31, 1999 filed by Caliper Technologies Corp.

PRIVATE PLACEMENT OF EQUITY

    On August 30, 2000, Caliper completed a private placement of 2,300,000
shares of its common stock to selected accredited institutional investors,
raising net proceeds of approximately $104.9 million.

REVENUE RECOGNITION

    Revenues are earned from services performed pursuant to Caliper's
collaboration agreement, technology access program agreements and government
grants.

COLLABORATION AGREEMENT

    Revenue from development activities under Caliper's collaboration agreement
is recorded in the period in which the costs are incurred. Direct costs
associated with this contract are reported as research and development expense.
Revenue related to the reimbursement of costs for the supply of chips and
reagents to Caliper's collaboration partner is recognized upon shipment.
Caliper's share of gross margin on components of the LabChip(R) system sold by
the collaboration partner is recognized as revenue upon shipment by the
collaboration partner to the end user.

TECHNOLOGY ACCESS PROGRAM AGREEMENTS

    Caliper has entered into a number of multi-year technology access program
agreements consisting of four basic elements: (1) access to existing technology;
(2) a multi-year subscription for technology developed during the subscription
period; (3) development and support services; and (4) access to prototype
LabChip(R) systems developed during the subscription period. Caliper allocates
the total arrangement fees to each element based on fair value.

     Prior to January 1, 2000, Caliper recognized non-refundable license fees
under its technology access programs as revenues upon transfer of the license to
third parties and when no further performance obligations existed. Effective
January 1, 2000, Caliper changed its method of accounting for non-refundable
license fees to recognize such fees ratably over the term of the committed
related technology access program agreement. Caliper believes the change in
accounting principle is preferable based on guidance provided in SEC Staff
Accounting Bulletin No. 101 - Revenue Recognition in Financial Statements. The
$2.3 million cumulative effect of the change in accounting principle was
reported as a charge in the quarter ended March 31, 2000. The cumulative effect
was initially recorded as deferred revenue that will be recognized as revenue
over the remaining contractual terms of the technology access program
agreements. During the nine months ended September 30, 2000, the impact of the
change in accounting was to increase net loss by $1.2 million, or $0.06 per
diluted share, comprised of the $2.3 million cumulative effect of the change as
described above ($0.11 per diluted share), net of $1.1 million of the related
deferred revenue which was recognized as revenue during the nine months ended
September 30, 2000 ($0.05 per diluted share). The remainder of the related
deferred revenue will be recognized as revenue approximately as follows:
$200,000 over the remainder of 2000, $800,000 in 2001 and $194,000 in 2002. Had
the change in accounting been adopted as of January 1, 1999, revenue for the
three and nine months ended September 30, 1999 would have


                                       5
<PAGE>   7
increased by $422,000 and $656,000, respectively, or decreased pro forma net
loss by $0.03 per diluted share and $0.04 per diluted share, respectively.

    Subscription fees are recognized ratably over the subscription period. When
payment of the subscription fee is contingent upon reaching a milestone, revenue
is deferred until the milestone is met. Support and development services revenue
is recognized in the periods the costs are incurred. Product revenue is
recognized upon transfer of title to the customer.

GOVERNMENT GRANTS

    Caliper's grant from the National Institute of Standards and Technology
provides for the reimbursement of qualified expenses for research and
development as defined under the terms of the grant agreement. Revenue under
grant agreements is recognized when the related research expenses are incurred.

DEFERRED COMPENSATION ARRANGEMENTS

    Caliper maintains trading assets to generate returns that offset changes in
certain liabilities related to deferred compensation arrangements. The trading
assets consist of marketable equity securities and are stated at fair value.
Both realized and unrealized gains and losses generally offset the change in the
deferred compensation liability and to date have not been material.

STOCK-BASED COMPENSATION

    Caliper accounts for its stock options and equity awards in accordance with
the provisions of Accounting Principles Board Opinion No. 25, "Accounting for
Stock Issued to Employees," and has elected to follow the "disclosure only"
alternative prescribed by Financial Accounting Standards Board's Statement of
Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" (SFAS No. 123). Caliper accounts for stock options issued to
non-employees in accordance with the provisions of SFAS No. 123 and Emerging
Issues Task Force 96-18. For the nine months ended September 30, 2000,
compensation expense related to stock options issued to non-employees was
$483,000.

NET INCOME/(LOSS) PER SHARE

    Basic earnings per share is calculated based on the weighted-average number
of common shares outstanding during the period. Diluted earnings per share gives
effect to the dilutive effect of common stock equivalents consisting of stock
options and warrants (calculated using the treasury stock method).

    Pro forma net income/(loss) per share has been computed to give effect to
the automatic conversion of preferred stock into common stock which occurred at
the completion of Caliper's initial public offering in December 1999 (using the
as-if converted method) from the original date of issuance.

    A reconciliation of shares used in the calculations is as follows (in
thousands):


<TABLE>
<CAPTION>

                                                                        THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                            SEPTEMBER 30,                 SEPTEMBER 30,
                                                                      -----------------------       -----------------------
                                                                       2000            1999           2000           1999
                                                                      --------       --------       --------       --------
         <S>                                                          <C>            <C>            <C>           <C>
         Basic:
           Net income/(loss) ...................................      $  6,067       $ (3,570)      $ (7,475)      $ (8,126)
           Accretion on redeemable convertible preferred stock .             -           (608)             -         (1,822)
                                                                      --------       --------       --------       --------
           Net income/(loss) attributable to common stockholders      $  6,067       $ (4,178)      $ (7,475)      $ (9,948)
                                                                      ========       ========       ========       ========

         Weighted-average shares of common stock outstanding ...        22,021          3,044         21,370          2,953
         Less: weighted-average shares subject to repurchase ...           (50)          (223)           (92)          (269)
                                                                      --------       --------       --------       --------
         Weighted-average shares used in net income/(loss)
            per common share, basic ............................        21,971          2,821         21,278          2,684
                                                                      ========       ========       ========       ========


         Diluted:
           Net income/(loss) ...................................      $  6,067       $ (3,570)      $ (7,475)      $ (8,126)
           Accretion on redeemable convertible preferred stock .             -           (608)             -         (1,822)
                                                                      --------       --------       --------       --------
           Net income/(loss) attributable to common stockholders      $  6,067       $ (4,178)      $ (7,475)      $ (9,948)
                                                                      ========       ========       ========       ========

        Weighted-average shares of common stock outstanding ...         22,021          3,044         21,370          2,953
         Plus: weighted-average shares of common stock
             equivalents .......................................         2,310              -              -              -
         Less: weighted-average shares subject to repurchase ...           (50)          (223)           (92)          (269)
                                                                      --------       --------       --------       --------
</TABLE>


                                       6
<PAGE>   8

<TABLE>
         <S>                                                          <C>            <C>            <C>           <C>
         Weighted-average shares used in net income/(loss)
           per common share, diluted ...........................        24,281          2,821         21,278          2,684
                                                                      ========       ========       ========       ========

         Pro forma diluted:
          Net income/(loss) ....................................      $  6,067       $ (3,570)      $ (7,475)      $ (8,126)
                                                                      ========       ========       ========       ========

          Shares used above ....................................        24,281          2,821         21,278          2,684
          Adjustment to reflect weighted-average effect of
           assumed conversion of preferred stock ...............             -         12,533              -         12,533
                                                                      --------       --------       --------       --------
          Weighted-average shares used in pro forma net income/
            (loss) per share, diluted ..........................        24,281         15,354         21,278         15,217
                                                                      ========       ========       ========       ========
</TABLE>


RECENT ACCOUNTING PRONOUNCEMENTS

    In June 1998, the Financial Accounting Standards Board ("FASB") issued
statement of Financial Accounting Standards No. 133, "Accounting for Derivative
Financial Instruments and for Hedging Activities" ("SFAS 133") which provides a
comprehensive and consistent standard for the recognition and measurement of
derivatives and hedging activities. In June 1999, FASB issued Financial
Accounting Standards No. 137 which deferred the effective date of SFAS 133 to
fiscal years beginning after June 15, 2000. The adoption of SFAS 133 is not
anticipated to have an impact on the Company's results of operations of
financial condition when adopted as the Company holds no derivative financial
instruments and does not currently engage in hedging activities.

    In March 2000, the FASB issued No. 44 ("FIN 44"), "Accounting for Certain
Transactions Involving Stock compensation - an Interpretation of APB 25." This
Interpretation clarifies (a) the definition of employee for purposes of applying
Opinion 25, (b) the criteria for determining whether a plan qualifies as a
noncompensatory plan, (c) the accounting consequence of various modifications to
the terms of a previously fixed stock option or award, and (d) the accounting
for an exchange of stock compensation awards in a business combination. This
Interpretation is effective July 1, 2000, but certain conclusions in this
Interpretation cover specific events that occur after either December 15, 1998,
or January 12, 2000, but before the effective date of July 1, 2000, the effects
of applying this Interpretation are recognized on a prospective basis from July
1, 2000. The adoption of FIN 44 does not have a material impact on the Company's
financial statements.

NOTE 2 - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
     As of September 30, 2000 Caliper invests its excess cash in U.S. government
and agency securities, debt instruments of financial institutions and
corporations and money market funds with strong credit ratings. They are
classified as available-for-sale and are carried at fair value with unrealized
gains and losses reported in stockholders' equity.

NOTE 3 - INVENTORIES
    Inventories consist of the following (in thousands):

<TABLE>
<CAPTION>

                                            September 30,       December 31,
                                                 2000              1999
                                            -------------      -------------

         <S>                                <C>                 <C>
         Raw material ......................   $1,501            $  253
         Work in process ...................      688                13
         Finished goods ....................       36                21
                                               ------            ------
         Total .............................   $2,225            $  287
                                               ======            ======
</TABLE>



NOTE 4 - COMPREHENSIVE INCOME/(LOSS)
    The components of comprehensive income/(loss) for the three and nine months
ended September 30, 2000 and 1999 are as follows (in thousands):

<TABLE>
<CAPTION>


                                                        Three Months Ended          Nine Months Ended
                                                           September 30,              September 30,
                                                       --------------------       ---------------------
                                                        2000         1999          2000          1999
                                                       -------      -------       -------       -------
         <S>                                            <C>          <C>          <C>          <C>
         Net income/(loss) attributable to common
          stockholders ..........................      $ 6,067      $(4,178)      $(7,475)      $(9,948)
         Unrealized gain on securities ..........          166            -            93             -
                                                       -------      -------       -------       -------
         Comprehensive  income/(loss) ...........      $ 6,233      $(4,178)      $(7,382)      $(9,948)
                                                       =======      =======       =======       =======
</TABLE>


                                       7
<PAGE>   9

NOTE 5 -  LITIGATION

    On March 22, 1999, Caliper filed a lawsuit in California Superior Court for
the County of Santa Clara against Aclara Biosciences, Inc. and Caliper's former
patent counsel, a patent attorney named Bertram Rowland, and his former law
firm, Flehr, Hohbach, Test, Albritton and Herbert alleging that all the
defendants misappropriated certain of Caliper's trade secrets relating to
Caliper business plans, patents and intellectual property strategy. The suit
also alleges that Caliper's former patent counsel committed a breach of the
duties they owed to Caliper as its former attorneys. On September 14, 2000,
Caliper reached a settlement agreement with Dr. Rowland and Flehr, Hohbach,
Albritton, Test and Herbert in this case. The settlement provides Caliper with a
$12.0 million cash payment from these defendants as well as other terms. This
settlement has no effect on Caliper's lawsuits with Aclara. In this same case,
on October 27, 2000, the jury returned a verdict in favor of Caliper and against
Aclara on Caliper's claims for misappropriation of trade secrets and conversion
of property. The jury awarded Caliper $52.6 million for damages to Caliper and
unjust enrichment to Aclara. Caliper has also requested certain equitable
relief, including certain rights to the Aclara patent that is the subject of
Aclara's suit against Caliper. The court has not yet ruled on that issue. Aclara
has requested that the jury award be substantially reduced on several legal
grounds. The court has not yet ruled on that request either. Aclara has publicly
stated its intention to appeal this case.

    On January 12, 2000, Caliper filed a lawsuit in United States District Court
for the Northern District of California alleging that Aclara is infringing four
U.S. patents licensed to Caliper by Lockheed Martin Energy Research Corporation.
These patents cover technology for controlling the flow of materials in
microfluidic chips, as well as devices, systems and applications that make use
of this technology. Caliper subsequently amended this complaint to add a fifth,
related patent. Aclara has counterclaimed for a declaratory judgment that the
patents in this suit are invalid, unenforceable and are not infringed by Aclara.

    While Caliper believes that its complaints in these cases are meritorious,
there can be no assurance that Caliper will prevail in its actions against any
or all of the defendants, or that if Caliper prevails, the damages or equitable
remedies awarded, if any, will be commercially valuable. The jury's award in the
state court case may be set aside or reduced by the state judge or on appeal.
Furthermore, Caliper has incurred and is likely to continue to incur substantial
costs and expend substantial personnel time in pursuing its claims against
Aclara and Caliper's former patent counsel.

   On April 23, 1999, Aclara Biosciences filed a lawsuit in United States
District Court for the Northern District of California alleging that Caliper is
making, using, selling or offering for sale microfluidic devices that infringe
United States Patent Number 5,750,015 in willful disregard of Aclara's patent
rights. This patent concerns methods and devices for moving molecules by the
application of electrical fields. The Aclara action seeks damages for past and
future reduced sales or lost profits based upon Caliper's alleged fabrication,
use, sale or offer for sale of allegedly infringing products and processes, and
seeks to enjoin Caliper's continued activities relating to these products.
Caliper has counterclaimed for a declaratory judgment of noninfringement,
invalidity and unenforceability of all claims of the Aclara patent. On July 19,
2000, the federal judge in this action issued an order finding that eight of the
eleven claims asserted against Caliper are invalid, and interpreting the
remaining asserted claims. On October 27, 2000, the federal judge issued a
second order holding that our products do not literally infringe Aclara's
patent, but allowing the suit to proceed on the issue of whether our products
infringe under a legal theory known as the doctrine of equivalents and whether
the patent is valid and enforceable. This action subjects Caliper to potential
liability for damages, including treble damages, and could require Caliper to
cease making, using or selling the affected products, or to obtain a license in
order to continue to manufacture, use or sell the affected products. While
Caliper believes that it has meritorious defenses in this action, there can be
no assurance that Caliper will prevail or that any license required would be
made available on commercially acceptable terms, if at all. Even if Caliper
prevails in the current action, there can be no assurance that we will prevail
again if Aclara appeals the case to a higher court. Furthermore, Caliper has
incurred and is likely to continue to incur substantial costs and expend
substantial personnel time in defending against the claims filed by Aclara.
Caliper's failure to successfully defend itself against the Aclara action could
have a material adverse effect on Caliper's business, financial condition and
operating results.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

    This Management's Discussion and Analysis of Financial Condition and Results
of Operations as of September 30, 2000 and for the three and nine month periods
ended September 30, 2000 and September 30, 1999 should be read in conjunction
with the Management's Discussion and Analysis of Financial Condition and Results
of Operations included in Caliper's Annual Report on Form 10-K for the year
ended December 31, 1999.


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<PAGE>   10

   Except for historical information, the discussion in this report contains
forward-looking statements that involve risks and uncertainties, such as
statements of our plans, objectives, expectations and intentions. The cautionary
statements made in this report should be read as applying to all related
forward-looking statements wherever they appear in this report. Our actual
results could differ materially from those discussed here. Factors that could
cause or contribute to these differences include those discussed in "--Factors
Affecting Operating Results" below as well as those discussed elsewhere.

OVERVIEW

   We are a leader in lab-on-a-chip technologies that miniaturize, integrate and
automate many laboratory processes. We develop, manufacture and sell our
proprietary LabChip(R) systems to pharmaceutical and other companies. We believe
our LabChip(R) systems have the potential to assemble the power and reduce the
scale of entire laboratories full of equipment and people. From inception in
July 1995 through September 2000, our operating activities were primarily
devoted to research, development and commercialization of technologies involving
the manipulation of very small amounts of fluid, which are referred to as
"microfluidic technologies," and first-generation products such as the Agilent
2100 Bioanalyzer, LabChip(R) kits and our high throughput systems, recruiting
personnel, business development, raising capital and acquiring assets. In 1999,
we recognized revenue from our first product sales when we sold initial versions
of our high throughput system for drug screening to our three technology access
program customers. In addition, in September 1999, Agilent Technologies, Inc.,
our commercial partner, introduced our first LabChip(R) system for use by
individual researchers. In March 2000, we recognized revenue from our first
multi-capillary sipper chip system and Millennium Pharmaceuticals joined our
technology access program, becoming our fourth technology access program
customer. In May 2000, we introduced the DNA 500 LabChip(R) kit for the
automated analysis of DNA fragments to determine their size and concentration.
In August 2000, we introduced the Protein 200 LabChip(R) kit for the automated
sizing and analysis of protein samples. In September 2000, we introduced the
Automated Microfluidics System 90 which automates the sizing, concentration and
purity analysis of nucleic acid fragments using only nanoliters of sample.

   Since our inception, we have incurred significant losses and, as of September
30, 2000, we had an accumulated deficit of $42.6 million. Our losses have
resulted principally from costs incurred in research and development,
manufacturing scale-up, and from general and administrative costs associated
with our operations. We expect to continue to incur substantial research and
development, manufacturing scale-up, and general and administrative costs. As a
result, we will need to generate significantly higher revenue to achieve
profitability.

   Our revenue has been derived principally from contract revenue earned under
our collaboration agreement with Agilent and from our technology access program
customers. To a lesser extent, we have derived revenue from the sale of products
and government grants. Although we are developing and plan to introduce future
products, we cannot assure you that we will be successful in these efforts. To
date, we have generated a substantial portion of our revenue from a limited
number of sources. Two of our technology access program partners, Eli Lilly and
Millennium, and our commercial partner, Agilent, each accounted for in excess of
10% of our revenue in the three months ended September 30, 2000. Agilent alone
accounted for 45% of our revenue in this period, and the two technology access
program customers collectively accounted for 42% of our revenue in this period.
During the quarter ended September 30, 1999, Agilent accounted for 43% of our
revenue and a technology access program customer accounted for 50% of our
revenue.

   Under our agreement, Agilent funds our research and development expenditures
related to the collaboration, reimburses us for our costs of supplying chips and
reagents to Agilent and pays us a share of the gross margin earned on all
components of LabChip(R) systems they sell. Revenue from development and support
activities under our collaboration agreement is recorded in the period in which
the costs are incurred. Direct costs associated with this contract are reported
as research and development expense. Revenue related to the reimbursement of
costs for the supply of chips and reagents to Agilent is recognized upon
shipment. Our share of gross margin on components of the LabChip(R) system sold
by Agilent is recognized as revenue upon shipment to the end user. Agilent only
began in late 1999 the marketing and sales efforts for the Agilent 2100
Bioanalyzer. Sales of new and innovative instrumentation such as the Agilent
2100 Bioanalyzer involve a long sales cycle, requiring customer training and
demonstration periods. As a result, to date Agilent has sold a modest number of
Agilent 2100 Bioanalyzers, and it is too early for us to predict market
acceptance of this technology.

   Under our technology access program agreements, we recognize as revenue
non-refundable license subscription fees over the term of the subscription,
product sales upon the transfer of title to the customer, and development and
support fees in the period in which the costs are incurred. Subscription fees
and development and support fees may be received annually or quarterly in
advance depending upon the terms of the agreement. Payments received in advance
under all of these agreements are recorded as deferred revenue until earned. We
have evaluated the applicability of SAB 101 to our existing technology access
program agreements. We


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<PAGE>   11

have concluded that the approach described in SAB 101 is preferable and have
changed our method of accounting effective January 1, 2000 to recognize such
fees over the term of the related agreement. The cumulative effect of this
change in accounting principle is approximately $2.3 million as of January 1,
2000 and has been recognized as a charge in the quarter ended March 31, 2000.
The cumulative effect was recorded as deferred revenue and is being recognized
as revenue over the remaining contractual terms of the technology access program
agreements. As of September 30, 2000, a total of $3.7 million of revenue was
deferred. We expect to recognize this deferred revenue through the third quarter
of year 2002.


RESULTS OF OPERATIONS

Three and Nine Months Ended September 30, 2000 and 1999

   Revenue. Revenue was $5.5 million and $13.6 million for the three and nine
months ended September 30, 2000, respectively, compared to $3.4 million and $8.9
million for the three and nine months ended September 30, 1999. The increase of
$2.1 million during the three months ended September 30, 2000 compared to the
same period in 1999 resulted from increased revenue generated from product sales
under our technology access program and our collaboration agreement with
Agilent. The increase of $4.7 million during the nine months ended September 30,
2000 compared to the same period in 1999 resulted primarily from increased
revenue generated under our technology access program, including $1.1 million
attributed to up-front fees received in prior years which were ratably recorded
as revenue during the nine months ended September 30, 2000, as prescribed by SAB
101.

   Research and Development Expenses. Research and development expenses consist
primarily of salaries and related personnel costs, fees paid to consultants and
outside service providers for chip development, material costs for prototype and
test units, legal expenses resulting from intellectual property prosecution and
litigation, and other expenses related to the design, development, testing, and
enhancement of our products. We expense our research and development costs as
they are incurred. Research and development expenses were $9.8 million and $24.3
million for the three and nine months ended September 30, 2000, respectively,
compared to $4.9 million and $12.3 million for the three and nine months ended
September 30, 1999. The increase of $5.0 million during the three months ended
September 30, 2000 compared to the same period in 1999 was attributed to
continued growth of research and development activities, including $1.9 million
related to growth in personnel and services to support our technology access
program, partner collaboration and product launches, $1.9 million for costs
related to intellectual property matters, and the remainder for supplies
required to assemble, build and test prototype LabChip systems along with
expansion in our operating activities. The increase of $12.0 million during the
nine months ended September 30, 2000 compared to the same period in 1999
resulted from $5.0 million related to growth in personnel and services to
support our technology access program, partner collaboration and product
launches, $5.0 million for costs related to intellectual property matters,
primarily legal fees, and the remainder for supplies required to assemble, build
and test prototype LabChip(R) systems along with expansion in our operating
activities. We expect research and development spending to continue to rise and
increase in proportion to our revenue growth over the next several years as we
expand our research and product development efforts.

   General and Administrative Expenses. General and administrative expenses
consist primarily of salaries and related expenses for executive, finance and
other administrative personnel, recruiting expenses, professional fees, and
other corporate expenses including business development and general legal
activities. General and administrative expenses were $2.5 million and $7.3
million for the three and nine months ended September 30, 2000, respectively,
compared to $1.4 and $3.5 million for the three and nine months ended September
30, 1999. The increase of $1.1 million during the three months ended September
30, 2000 compared to the same period in 1999 resulted from $487,000 related to
employment costs for general and administrative personnel and the remaining
balance due to costs associated with being a public company and overall
expansion in our operations. The increase of $3.8 million during the nine months
ended September 30, 2000 compared to the same period in 1999 resulted from $2.3
million related to employment costs for general and administrative personnel and
the remaining balance due to costs associated with being a public company and
overall expansion in our operations. We expect general and administrative
expenses to continue to increase over the next several years to support our
growing business activities, the commercialization of our products, and costs
associated with operating a public company.

   Amortization of Deferred Stock Compensation. Deferred stock compensation
represents the difference between the deemed fair value of our common stock for
accounting purposes and the exercise price of options at the date of grant.
During 1998 and 1999, we recorded deferred stock compensation totaling $13.2
million. This amount is being amortized over the respective vesting periods of
the individual stock options using the graded vesting method. We recorded
amortization of deferred compensation of $3.7 million for the nine months ended
September 30, 2000, which includes $1.0 million for the three months ended
September 30, 2000. We expect to record amortization expense for deferred
compensation as follows: $882,000 for the remainder of 2000, $2.5 million during
2001,


                                       10
<PAGE>   12

$1.4 million during 2002, $670,000 during 2003 and $122,000 during 2004. The
amount of deferred compensation expense to be recorded in future periods may
decrease if unvested options for which deferred compensation has been recorded
are subsequently canceled.

     Interest Income, Net. Net interest income consists of income from our cash
and investments offset by expenses related to our financing obligations. Net
interest income was $1.9 million and $4.5 million for the three and nine months
ended September 30, 2000, respectively, compared to $212,000 and $801,000 for
the three and nine months ended September 30, 1999. This increase was due to
higher cash and investment balances as a result of $75.9 million net proceeds
raised in our December 1999 initial public offering and $104.9 million raised in
August 2000 from the sale of 2,300,000 shares of common stock in a private
placement, partially offset by increased interest charges from higher financing
obligation balances.

     Litigation Settlement. We recorded a $12.0 million litigation settlement
receivable during the quarter ended September 30, 2000. For further information
regarding this settlement, refer to note 5 to the financial statements included
in this report and "Part II - Item 1. Legal Proceedings."

LIQUIDITY AND CAPITAL RESOURCES

     As of September 30, 2000, cash, cash equivalents and marketable securities
were $190.7 million compared to $100.2 million at December 31, 1999. We used
$12.8 million for operations for the nine months ended September 30, 2000 as
compared to $2.2 for the comparable period in 1999. This consisted of the net
loss of $7.5 million and working capital changes of $13.2 million, which
includes a $12.0 million litigation settlement receivable, offset by non-cash
charges of $7.9 million related to a change in accounting principle,
amortization of deferred stock compensation, stock options issued to
non-employees and depreciation and amortization expense.

     Net cash used in investing activities was $88.9 million for the nine months
ended September 30, 2000 as compared to $1.3 million for the comparable period
in 1999. Net cash used in investing consists primarily of purchases of
available-for-sale investments offset by proceeds from sales and maturities of
available-for-sale investments, as well as capital expenditures.

     We received $105.6 million from financing activities for the nine months
ended September 30, 2000 as compared to $2.0 million for the comparable period
in 1999. Net proceeds from financing activities consisted principally of
approximately $104.9 million raised in August 2000 from the sale of 2,300,000
shares of common stock in a private placement.

     In May 2000 we entered into a $5.0 million financing arrangement for the
purchase of property and equipment. As of September 30, 2000, we had $5.3
million in capitalized lease obligations outstanding compared to $5.1 million at
December 31, 1999.

     Our capital requirements depend on numerous factors, including market
acceptance of our products, the resources we devote to developing and supporting
our products, and other factors. We expect to devote substantial capital
resources to continue our research and development efforts, to expand our
support and product development activities, and for other general corporate
activities. We believe that our current cash balances, together with the revenue
to be derived from our collaboration with Agilent and our technology access
program agreements, will be sufficient to fund our operations at least into the
year 2002. During or after this period, if cash generated by operations is
insufficient to satisfy our liquidity requirements, we may need to sell
additional equity or debt securities or obtain additional credit arrangements.
Additional financing may not be available on terms acceptable to us or at all.
The sale of additional equity or convertible debt securities may result in
additional dilution to our stockholders.

RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1998, the Financial Accounting Standards Board ("FASB") issued
statement of Financial Accounting Standards No. 133, "Accounting for Derivative
Financial Instruments and for Hedging Activities" ("SFAS 133") which provides a
comprehensive and consistent standard for the recognition and measurement of
derivatives and hedging activities. In June 1999, FASB issued Financial
Accounting Standards No. 137 which deferred the effective date of SFAS 133 to
fiscal years beginning after June 15, 2000. The adoption of SFAS 133 is not
anticipated to have an impact on the Company's results of operations of
financial condition when adopted as the Company holds no derivative financial
instruments and does not currently engage in hedging activities

     In March 2000, the FASB issued No. 44 ("FIN 44"), "Accounting for Certain
Transactions Involving Stock compensation - an Interpretation of APB 25." This
Interpretation clarifies (a) the definition of employee for purposes of applying
Opinion 25, (b) the criteria for determining whether a plan qualifies as a
noncompensatory plan, (c) the accounting consequence of various modifications


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<PAGE>   13

to the terms of a previously fixed stock option or award, and (d) the accounting
for an exchange of stock compensation awards in a business combination. This
Interpretation is effective July 1, 2000, but certain conclusions in this
Interpretation cover specific events that occur after either December 15, 1998,
or January 12, 2000, but before the effective date of July 1, 2000, the effects
of applying this Interpretation are recognized on a prospective basis from July
1, 2000. The adoption of FIN 44 does not have a material impact on the Company's
financial statements.


FACTORS AFFECTING OPERATING RESULTS

OUR LABCHIP(R) SYSTEMS MAY NOT ACHIEVE MARKET ACCEPTANCE, WHICH COULD CAUSE OUR
REVENUE TO DECLINE.

   Our technologies are still in the early stages of development, and our
LabChip(R) systems incorporating these technologies have only recently been made
commercially available. If our LabChip(R) systems do not gain market acceptance,
we will be unable to generate sales and our revenue will decline. The commercial
success of our LabChip(R) systems will depend upon market acceptance of the
merits of our LabChip(R) systems by pharmaceutical and biotechnology companies,
academic research centers and other companies that rely upon laboratory
experimentation. We have not yet demonstrated these benefits. Market acceptance
will depend on many factors, including:

   -  our ability to demonstrate the advantages and potential economic value of
      our LabChip(R) systems over alternative well-established technologies and
      products

   -  the extent of Agilent's efforts to market the Agilent 2100 Bioanalyzer

   -  our ability to market our high throughput systems through our technology
      access program and other commercial programs

   Because the products comprising our LabChip(R) systems have been in operation
for a limited period of time, their accuracy, reliability, ease of use and
commercial value have not been fully established. If the initial Agilent 2100
Bioanalyzer customers or our initial technology access program customers do not
approve of our initial LabChip(R) systems because these systems fail to generate
the quantities and quality of data they expect, are too difficult or costly to
use, or are otherwise deficient, market acceptance of these LabChip(R) systems
would suffer and further sales may be limited. We cannot assure you that these
customers' efforts to put our LabChip(R) systems into use will continue or will
be expeditious or effective. Potential customers for our high throughput systems
may also wait for indications from our four initial technology access program
customers that our high throughput systems work effectively and generate
substantial benefits. Further, non-acceptance by the market of our initial
LabChip(R) systems could undermine not only those systems but subsequent
LabChip(R) systems as well.

WE EXPECT TO INCUR FUTURE OPERATING LOSSES AND MAY NOT ACHIEVE PROFITABILITY.

   We have experienced significant operating losses each year since our
inception and expect to incur substantial additional operating losses for at
least the next year, primarily as a result of expected increases in expenses for
manufacturing capabilities, research and product development costs and general
and administrative costs. We may not achieve profitability until at least year
2002. For example, we experienced net losses of approximately $6.3 million in
1997, $3.0 million in 1998, $14.4 million in 1999 and $7.5 million for the nine
months ended September 30, 2000. As of September 30, 2000, we had an accumulated
deficit of approximately $42.6 million. Our losses have resulted principally
from costs incurred in research and development and from general and
administrative costs associated with our operations. These costs have exceeded
our revenue and interest income which, to date, have been generated principally
from collaborative research and development agreements, technology access fees,
cash and investment balances and, to a lesser extent, product sales and
government grants.

OUR OPERATING RESULTS FLUCTUATE SIGNIFICANTLY AND ANY FAILURE TO MEET FINANCIAL
EXPECTATIONS MAY DISAPPOINT SECURITIES ANALYSTS OR INVESTORS AND RESULT IN A
DECLINE IN OUR STOCK PRICE.

   Our quarterly operating results have fluctuated significantly in the past and
we expect they will fluctuate in the future as a result of many factors, some of
which are outside of our control. For example, our revenues have varied
dramatically as a result of new customers joining our technology access program
and product shipments. It is possible that in some future quarter or quarters,
our operating results will be below the expectations of securities analysts or
investors. In this event, the market price of our common stock


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<PAGE>   14

may fall abruptly and significantly. Because our revenue and operating results
are difficult to predict, we believe that period-to-period comparisons of our
results of operations are not a good indication of our future performance.

   If revenue declines in a quarter, whether due to a delay in recognizing
expected revenue or otherwise, our earnings will decline because many of our
expenses are relatively fixed. In particular, research and development and
general and administrative expenses and amortization of deferred stock
compensation are not affected directly by variations in revenue.

WE ARE INVOLVED IN INTELLECTUAL PROPERTY LITIGATION WITH ACLARA BIOSCIENCES THAT
MAY HURT OUR COMPETITIVE POSITION, MAY BE COSTLY TO US AND MAY PREVENT US FROM
SELLING OUR PRODUCTS.

   Our suits against Aclara are costly to litigate and if we are not successful
then we will not recover these costs and our patents may be invalidated or
interpreted narrowly. We have filed a suit against Aclara Biosciences, Inc. and
our former patent counsel alleging that they misappropriated our trade secrets,
and that our former patent counsel breached their duties to us as our attorneys.
We also filed suit against Aclara in January 2000 alleging Aclara is infringing
certain patent rights licensed to us. Aclara has counterclaimed for a
declaratory judgment that the patents in this suit are invalid, unenforceable
and are not infringed by Aclara. We may not be successful in our lawsuits
against them, in which case we will have incurred substantial litigation costs
that we will not recover and our patents may be invalidated or interpreted
narrowly.

   If we lose Aclara's suit against us it will hurt our competitive position,
may be costly to us and may prevent us from selling our products. In addition,
subsequent to the filing of our first suit, Aclara sued us claiming we are
infringing one of its patents with our LabChip(R) systems that use electrical
charges to move fluids and chemicals through the channels of the chip. We have
counterclaimed for a declaratory judgment of noninfringement, invalidity and
unenforceability of all claims of the Aclara patent. On July 19, 2000, the
federal judge in this action issued an order invalidating certain patent claims
and interpreting the remaining asserted claims. On October 27, 2000, the federal
judge issued a second order holding that our products do not literally infringe
Aclara's patent, but allowing the suit to proceed on the issue of whether our
products infringe under a legal theory known as the doctrine of equivalents and
whether the patent is valid and enforceable. If we lose this case and our motion
in state court to obtain certain rights to the Aclara patent at issue in this
case, we will need to obtain from Aclara a license to this technology in order
to continue to market our products that have been found to infringe Aclara's
patent, which may include all products currently marketed by Agilent. This
license could be expensive, or could require us to license to Aclara some of our
technology which would result in a partial loss of our competitive advantage in
the marketplace, each of which could seriously harm our ability to conduct our
business, and hurt our financial condition and results of operations. We believe
that we have meritorious defenses in this action. However, litigation is
unpredictable and we may not prevail with any of these defenses. If Aclara is
successful in its suit against us and is unwilling to grant us a license, we
will be required to stop selling our products that are found to infringe
Aclara's patent unless we can redesign them so they do not infringe Aclara's
patent, which we may be unable to do. In addition, if we lose the patent suit,
we could be required to pay Aclara damages, including treble damages, which
could be substantial and seriously harm our financial position.

   This litigation will be expensive to us, may be protracted and our
confidential information may be compromised. Whether or not we are successful in
these lawsuits, we expect this litigation to consume substantial amounts of our
financial and managerial resources. At any time Aclara may file additional
claims against us, or we may file additional claims against Aclara, which could
increase the risk, expense and duration of the litigation. Either we or Aclara
may appeal rulings in the current cases, extending the litigation. Further,
because of the substantial amount of discovery required in connection with this
type of litigation, there is a risk that some of our confidential information
could be compromised by disclosure. For more information on our litigation with
Aclara, see " Part II - Item 1. Legal Proceedings."

PUBLIC ANNOUNCEMENTS OF LITIGATION EVENTS WITH ACLARA BIOSCIENCES MAY HURT OUR
STOCK PRICE.

   During the course of our lawsuits with Aclara there may be public
announcements of the results of hearings, motions, and other interim proceedings
or developments in the litigation. If securities analysts or investors perceive
these results to be negative, it could have a substantial negative effect on the
trading price of our stock.

IF AGILENT DETERMINES THAT WE MAY BE VIOLATING A THIRD-PARTY PATENT, IT MAY
TERMINATE SALES OF THE AGILENT 2100 BIOANALYZER, WHICH WILL DECREASE OUR
REVENUE.

   Under our collaboration agreement with Agilent, Agilent may elect at any time
to stop developing, manufacturing or distributing any product that it reasonably
determines, on the advice of counsel, poses a substantial risk of infringing a
third-party patent. For example, if we lose the Aclara litigation, or if any
adverse developments occur during the course of this litigation, or if any other
third-


                                       13
<PAGE>   15

party claims that we are violating their patent, then Agilent may terminate
marketing and selling of the Agilent 2100 Bioanalyzer system, which Agilent
began marketing in September 1999, which will decrease our future revenue.

OUR PRODUCTS COULD INFRINGE ON THE INTELLECTUAL PROPERTY RIGHTS OF OTHERS, WHICH
MAY CAUSE US TO ENGAGE IN COSTLY LITIGATION AND, IF WE ARE NOT SUCCESSFUL, COULD
ALSO CAUSE US TO PAY SUBSTANTIAL DAMAGES AND PROHIBIT US FROM SELLING OUR
PRODUCTS.

   Third parties may assert infringement or other intellectual property claims
against us, such as in the Aclara litigation described above and under "Part II
- Item 1. Legal Proceedings." We may have to pay substantial damages, including
treble damages, for past infringement if it is ultimately determined that our
products infringe a third party's proprietary rights. Further, we may be
prohibited from selling our products before we obtain a license, which, if
available at all, may require us to pay substantial royalties. Even if these
claims are without merit, defending a lawsuit takes significant time, may be
expensive and may divert management attention from other business concerns. We
are aware of third-party patents that may relate to our technology or potential
products. We have also been notified that third parties have attempted to
provoke an interference with one issued U.S. patent that we have exclusively
licensed to determine the priority of inventions. Any public announcements
related to litigation or interference proceedings initiated or threatened
against us could cause our stock price to decline.

WE MAY NEED TO INITIATE LAWSUITS TO PROTECT OR ENFORCE OUR PATENTS, WHICH WOULD
BE EXPENSIVE AND, IF WE LOSE, MAY CAUSE US TO LOSE SOME OF OUR INTELLECTUAL
PROPERTY RIGHTS, WHICH WOULD REDUCE OUR ABILITY TO COMPETE IN THE MARKET.

   We rely on patents to protect a large part of our intellectual property and
our competitive position. In order to protect or enforce our patent rights, we
may initiate patent litigation against third parties, such as our patent
infringement suit against Aclara described above and under "Part II - Item 1.
Legal Proceedings." These lawsuits could be expensive, take significant time,
and could divert management's attention from other business concerns. They would
put our patents at risk of being invalidated or interpreted narrowly and our
patent applications at risk of not issuing. We may also provoke these third
parties to assert claims against us. Patent law relating to the scope of claims
in the technology fields in which we operate is still evolving and,
consequently, patent positions in our industry are generally uncertain. We
cannot assure you that we will prevail in any of these suits or that the damages
or other remedies awarded, if any, will be commercially valuable. During the
course of these suits, there may be public announcements of the results of
hearings, motions and other interim proceedings or developments in the
litigation. If securities analysts or investors perceive any of these results to
be negative, it could cause our stock to decline.

THE RIGHTS WE RELY UPON TO PROTECT OUR INTELLECTUAL PROPERTY UNDERLYING OUR
PRODUCTS MAY NOT BE ADEQUATE, WHICH COULD ENABLE THIRD PARTIES TO USE OUR
TECHNOLOGY AND WOULD REDUCE OUR ABILITY TO COMPETE IN THE MARKET.

   In addition to patents, we rely on a combination of trade secrets, copyright
and trademark laws, nondisclosure agreements and other contractual provisions
and technical measures to protect our intellectual property rights.
Nevertheless, these measures may not be adequate to safeguard the technology
underlying our products. If they do not protect our rights, third parties could
use our technology, and our ability to compete in the market would be reduced.
In addition, employees, consultants and others who participate in the
development of our products may breach their agreements with us regarding our
intellectual property, and we may not have adequate remedies for the breach. We
also may not be able to effectively protect our intellectual property rights in
some foreign countries. For a variety of reasons, we may decide not to file for
patent, copyright or trademark protection outside of the United States. We also
realize that our trade secrets may become known through other means not
currently foreseen by us. Notwithstanding our efforts to protect our
intellectual property, our competitors may independently develop similar or
alternative technologies or products that are equal or superior to our
technology and products without infringing on any of our intellectual property
rights or design around our proprietary technologies. For further information on
our intellectual property and the difficulties in protecting it, see "Item 1.
Business -- Intellectual Property" in our Annual Report on Form 10-K for the
year ended December 31, 1999.

IF WE DO NOT SUCCESSFULLY INTRODUCE NEW PRODUCTS AND EXPAND THE RANGE OF
APPLICATIONS FOR OUR LABCHIP(R) SYSTEMS, WE MAY EXPERIENCE A DECLINE IN REVENUE
OR SLOW REVENUE GROWTH AND MAY NOT ACHIEVE OR MAINTAIN PROFITABILITY.

   We intend to develop LabChip(R) systems with increasingly high throughput
capabilities and develop a broad range of applications for our LabChip(R)
technology. If we are unable to do so, our LabChip(R) systems may not become
widely used and we may experience a decline in revenue or slow revenue growth
and may not achieve or maintain profitability.

   In order for our high throughput systems to achieve the levels of throughput
necessary to meet customers' demands, we need to develop and manufacture sipper
chips with more than four capillaries. Our current high throughput systems
operate with sipper chips with one and four capillaries, small glass tubes used
to draw compounds into the chip. In order to achieve the levels of throughput
that


                                       14
<PAGE>   16

our customers desire, we may need to develop a LabChip(R) system accommodating
more than four capillaries, which we may not be able to do. If we cannot
cost-effectively deliver chips with more than four capillaries, we may not be
able to attract new customers to purchase our high throughput systems, which
would seriously harm our future prospects. Further, our existing technology
access program customers may decide not to renew their annual access
subscriptions, which would seriously reduce our revenue.

   We must develop new applications for existing LabChip(R) instruments, which
we may not be able to do. The Agilent 2100 Bioanalyzer uses LabChip(R) kits that
we specifically design for each application. We currently have LabChip(R) kits
commercially available for five applications relating to DNA, RNA and Protein
sizing and quantification. DNA and RNA are commonly used acronyms for chemicals
that contain, or transmit, genetic information in living things. We currently
are developing LabChip(R) kits for other applications. If we are unable to
develop LabChip(R) kits for specific applications required by potential
customers, those customers may not purchase the Agilent 2100 Bioanalyzer.

   We must also continue to develop applications for our high throughput
systems. If we are not able to complete the development of these applications,
or if we experience difficulties or delays, we may lose our current technology
access program customers and may not be able to obtain new customers.

WE RELY HEAVILY ON AGILENT TO MANUFACTURE, MARKET AND DISTRIBUTE THE AGILENT
2100 BIOANALYZER. IF AGILENT FAILS TO PERFORM UNDER OUR AGREEMENT OR
SUCCESSFULLY COMMERCIALIZE OUR COLLABORATIVE PRODUCTS, OUR REVENUE FROM THE
AGILENT 2100 BIOANALYZER MAY NOT BE MATERIAL AND WE MAY LOSE THE DEVELOPMENT
FUNDING WE CURRENTLY RECEIVE FROM AGILENT.

   Agilent manufactures, markets and distributes the Agilent 2100 Bioanalyzer
under an agreement we entered into in May 1998. We also rely on Agilent for
significant financial and technical contributions in the development of products
covered by the agreement. Our ability to develop, manufacture and market these
products successfully depends significantly on Agilent's performance under this
agreement. Sales of new and innovative instrumentation such as the Agilent 2100
Bioanalyzer involve a long sales cycle, requiring customer training and
demonstration periods. As a result, to date Agilent has sold a modest number of
Agilent 2100 Bioanalyzers, but it is too early for us to predict peak market
acceptance of this technology. If Agilent experiences manufacturing or
distribution difficulties, does not actively market the Agilent 2100
Bioanalyzer, or does not otherwise perform under this agreement, our revenue
from the Agilent 2100 Bioanalyzer may not be material. In addition, Agilent may
terminate the agreement at their discretion at any time after May 2001. If
Agilent terminates this agreement, we would need to obtain development funding
from other sources, and we may be required to find one or more other
collaborators for the development and commercialization of our products. Our
inability to enter into agreements with commercialization partners or develop
our own marketing, sales, and distribution capabilities would increase costs and
impede the commercialization of our products.

AGILENT MAY COMPETE WITH US IF OUR COLLABORATION TERMINATES AFTER MAY 2003,
WHICH COULD REDUCE THE POTENTIAL REVENUE FROM OUR INDEPENDENT PRODUCT SALES.

   Under the terms of our agreement with Agilent, if they, or we, terminate our
agreement after May 2003, we will grant to Agilent a non-exclusive license to
our LabChip(R) technologies as then developed for use in the research products
field. Consequently, there is the possibility that we may experience competition
from Agilent after May 2003, which would reduce our ability to sell products
independently or through other commercial partners. See "Item 1. Business --
Commercialization -- Strategic Alliance with Agilent" in our Annual Report on
Form 10-K for the year ended December 31, 1999 for a further description of the
terms of our collaboration with Agilent.

WE HAVE LIMITED EXPERIENCE IN MANUFACTURING OUR PRODUCTS AND MAY ENCOUNTER
MANUFACTURING PROBLEMS OR DELAYS, WHICH COULD RESULT IN LOST REVENUE.

   Although Agilent manufactures the Agilent 2100 Bioanalyzer, we manufacture
the chips used in this instrument and also currently manufacture instruments and
sipper chips for our high throughput systems. We currently have limited
manufacturing capacity for our LabChip(R) system products and experience
variability in manufacturing yields for chips. If we fail to deliver chips and
high throughput screening products in a timely manner, our relationships with
our customers could be seriously harmed, and revenue would decline. We currently
have one manufacturing location in Mountain View, California. The actual number
of chips we are able to sell or use depends in part upon the manufacturing
yields for these chips. We have only recently begun to manufacture significant
numbers of sipper chips and are continuing to develop our manufacturing
procedures for these chips. In order to offer sipper chips with more than four
capillaries for high throughput applications, we will need to continue to
achieve consistently high yields in this process. We cannot assure you that
manufacturing or quality problems will not arise as we attempt to scale-up our
production of chips or that we


                                       15
<PAGE>   17

can scale-up manufacturing in a timely manner or at commercially reasonable
costs. If we are unable to consistently manufacture sipper chips or chips for
the Agilent 2100 Bioanalyzer on a timely basis because of these or other
factors, our product sales will decline. We are currently manufacturing high
throughput instruments in-house and in limited volumes. If demand for our high
throughput instruments increases, we will either need to expand our in-house
manufacturing capabilities or outsource to Agilent or other manufacturers.

IF A NATURAL DISASTER STRIKES OUR MANUFACTURING FACILITY WE WOULD BE UNABLE TO
MANUFACTURE OUR PRODUCTS FOR A SUBSTANTIAL AMOUNT OF TIME AND WE WOULD
EXPERIENCE LOST REVENUE.

   We rely on a single manufacturing facility to produce our chips and high
throughput systems, and have no alternative facilities. The facility and some
pieces of manufacturing equipment are difficult to replace and could require
substantial replacement lead-time. Our manufacturing facility may be affected by
natural disasters such as earthquakes and floods. Earthquakes are of particular
significance since the manufacturing facility is located in Mountain View,
California, an earthquake-prone area. In the event our existing manufacturing
facility or equipment is affected by man-made or natural disasters, we would be
unable to manufacture products for sale, meet customer demands or sales
projections. If our manufacturing operations were curtailed or ceased, it would
seriously harm our business.

BECAUSE A SMALL NUMBER OF CUSTOMERS AND AGILENT HAVE ACCOUNTED FOR, AND ARE
LIKELY TO CONTINUE TO ACCOUNT FOR, A SUBSTANTIAL PORTION OF OUR REVENUE, OUR
REVENUE COULD DECLINE DUE TO THE LOSS OF ONE OF THESE CUSTOMERS OR THE
TERMINATION OF OUR AGREEMENT WITH AGILENT.

   Historically we have had very few customers and one commercial partner,
Agilent, from which we have derived the majority of our revenue and, if we were
to lose any one of these, our revenue would decrease substantially. Agilent and
three customers accounted for 96% of total revenue for the three months ended
September 30, 2000. Agilent and four customers accounted for 95% of total
revenue for the nine months ended September 30, 2000. Agilent and four customers
accounted for 88% of total revenue in 1999, and two customers and Agilent
accounted for 97% of total revenue in 1998. Caliper and Agilent introduced the
Agilent 2100 Bioanalyzer system in September 1999 and have not yet derived
significant revenue from the sale of this product on a commercial scale.
Although we anticipate that the introduction of the Agilent 2100 Bioanalyzer
system will expand our revenue base, we expect that we will continue to rely on
our large customers and on Agilent for the majority of our revenue.

FAILURE TO RAISE ADDITIONAL CAPITAL OR GENERATE THE SIGNIFICANT CAPITAL
NECESSARY TO EXPAND OUR OPERATIONS AND INVEST IN NEW PRODUCTS COULD REDUCE OUR
ABILITY TO COMPETE AND RESULT IN LOWER REVENUE.

   We anticipate that our existing capital resources will enable us to maintain
currently planned operations at least into the year 2002. However, we premise
this expectation on our current operating plan, which may change as a result of
many factors. Consequently, we may need additional funding sooner than
anticipated. Our inability to raise capital would seriously harm our business
and product development efforts. In addition, we may choose to raise additional
capital due to market conditions or strategic considerations even if we believe
we have sufficient funds for our current or future operating plans. To the
extent that additional capital is raised through the sale of equity or
convertible debt securities, the issuance of these securities could result in
dilution to our stockholders.

   We currently have no credit facility or committed sources of capital other
than an equipment lease line with $4.5 million unused and available as of
September 30, 2000. To the extent operating and capital resources are
insufficient to meet future requirements, we will have to raise additional funds
to continue the development and commercialization of our technologies. These
funds may not be available on favorable terms, or at all. If adequate funds are
not available on attractive terms, we may be required to curtail operations
significantly or to obtain funds by entering into financing, supply or
collaboration agreements on unattractive terms.

WE DEPEND ON OUR KEY PERSONNEL, THE LOSS OF WHOM WOULD IMPAIR OUR ABILITY TO
COMPETE.

   We are highly dependent on the principal members of our management and
scientific staff. The loss of services of any of these persons could seriously
harm our product development and commercialization efforts. In addition,
research, product development and commercialization will require additional
skilled personnel in areas such as chemistry and biology, software engineering
and electronic engineering. Our business is located in Silicon Valley,
California, where demand for personnel with these skills is extremely high and
is likely to remain high. As a result, competition for and retention of
personnel, particularly for employees with technical expertise, is intense and
the turnover rate for these people is high. If we are unable to hire, train and
retain a sufficient number of qualified employees, our ability to conduct and
expand our business could be seriously reduced. The inability to retain and hire
qualified personnel could also hinder the planned expansion of our business.


                                       16
<PAGE>   18

POTENTIAL ACQUISITIONS MAY HAVE UNEXPECTED CONSEQUENCES OR IMPOSE ADDITIONAL
COSTS ON US.

   Our business is dependent upon growth in the market for microfluidic products
and our ability to enhance our existing products and introduce new products on a
timely basis. One of the ways we may address the need to develop new products is
through acquisitions of complementary businesses and technologies. From time to
time, we may consider and evaluate potential acquisitions or business
combinations, which may include a possible merger or consolidation of our
business with another entity. We may engage in discussions relating to these
types of transactions in the future. Acquisitions involve numerous risks,
including the following:

   -  difficulties in integration of the operations, technologies, and products
      of the acquired companies

   -  the risk of diverting management's attention from normal daily operations
      of the business

   -  accounting consequences, including charges for in-process research and
      development expenses, resulting in variability in our quarterly earnings

   -  potential difficulties in completing projects associated with purchased
      in-process research and development

   -  risks of entering markets in which we have no or limited direct prior
      experience and where competitors in such markets have stronger market
      positions

   -  the potential loss of key employees of the acquired company

   -  the assumption of unforeseen liabilities of the acquired company

   We cannot assure you that future acquisitions or business combinations in
which we are involved, if any, will be successful and will not adversely affect
our financial condition or results of operations. Failure to manage growth
effectively and successfully integrate acquisitions we make could harm our
business and operating results.

RISKS RELATED TO OWNING OUR COMMON STOCK

OUR STOCK PRICE IS EXTREMELY VOLATILE, AND YOU COULD LOSE A SUBSTANTIAL PORTION
OF YOUR INVESTMENT.

   Our stock has been trading on the Nasdaq National Market only since
mid-December 1999. We initially offered our common stock to the public at $16.00
per share. Since then our stock price has been extremely volatile and has
ranged, through November 1, 2000, from a high of approximately $202.00 per share
to a low of $22.50 per share. Our stock price may drop substantially following
an investment in our common stock. We expect that our stock price will remain
volatile as a result of a number of factors, including:

   -  announcements by analysts regarding their assessment of Caliper and its
      prospects

   -  announcements of events regarding our litigation with Aclara

   -  announcements of our financial results, particularly if they differ from
      investors' expectations

   -  general market volatility for technology stocks


                                       17
<PAGE>   19

CONCENTRATION OF OWNERSHIP AMONG OUR EXISTING EXECUTIVE OFFICERS, DIRECTORS AND
PRINCIPAL STOCKHOLDERS MAY PREVENT NEW INVESTORS FROM INFLUENCING SIGNIFICANT
CORPORATE DECISIONS.

   As of September 30, 2000, our directors, entities affiliated with our
directors, our executive officers and principal stockholders beneficially own,
in the aggregate approximately 29.0% of our outstanding common stock. These
stockholders as a group are able to substantially influence the management and
affairs of Caliper and, if acting together, would be able to influence most
matters requiring the approval by our stockholders, including the election of
directors, any merger, consolidation or sale of all or substantially all of our
assets and any other significant corporate transaction. The concentration of
ownership may also delay or prevent a change of control of Caliper at a premium
price if these stockholders oppose it.

PROVISIONS OF OUR CHARTER DOCUMENTS AND DELAWARE LAW MAY INHIBIT A TAKEOVER,
WHICH COULD LIMIT THE PRICE INVESTORS MIGHT BE WILLING TO PAY IN THE FUTURE FOR
OUR COMMON STOCK.

   Provisions in our certificate of incorporation and bylaws may have the effect
of delaying or preventing an acquisition, merger in which we are not the
surviving company or changes in our management. In addition, because we are
incorporated in Delaware, we are governed by the provisions of Section 203 of
the Delaware General Corporation Law. These provisions may prohibit large
stockholders, in particular those owning 15% or more of the outstanding voting
stock, from consummating a merger or combination including us. These provisions
could limit the price that investors might be willing to pay in the future for
our common stock.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   The primary objective of our investment activities is to preserve principal
while at the same time maximizing the income we receive from our investments
without significantly increasing risk. Some of the securities that we invest in
may have market risk. This means that a change in prevailing interest rates may
cause the principal amount of the investment to fluctuate. For example, if we
hold a security that was issued with a fixed interest rate at the
then-prevailing rate and the prevailing interest rate later rises, the principal
amount of our investment will probably decline. Declines of interest rates over
time will reduce our interest income from our investments. To minimize this risk
in the future, we intend to maintain our portfolio of cash equivalents and
investments in a variety of securities, including commercial paper, money market
funds, government and non-government debt securities.

   The table below presents our investment portfolio by expected maturity and
related weighted average interest rates at September 30, 2000:

<TABLE>
<CAPTION>
                                                                                                                 FAIR
                                                      2000           2001         2002          TOTAL           VALUE
                                                     -------       -------      --------       --------       --------
      <S>                                            <C>            <C>         <C>            <C>            <C>

      Money market fund ..........................   $48,723            --            --       $ 48,723       $ 48,723
      Average interest rate ......................      6.54%           --            --           6.54%

      Available for sale marketable securities ...   $13,995       $85,010      $ 43,040       $142,045       $142,005
      Average interest rate ......................      6.37%         6.54%         6.69%          6.57%

      Total securities ..........................    $62,718       $85,010      $ 43,040       $190,768       $190,728
      Average interest rate .....................       6.50%        6.54%          6.69%          6.56%
</TABLE>


   Our equipment financings, amounting to $5.3 million as of September 30, 2000,
are all at fixed rates and therefore, have minimal exposure to changes in
interest rates.

   We have operated primarily in the United States and all sales to date have
been made in U.S. dollars. Accordingly, we have not had any material exposure to
foreign currency rate fluctuations.


PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

    On March 22, 1999, we filed a lawsuit in California Superior Court for the
County of Santa Clara (Case No. CV 780743), against Aclara Biosciences Inc., a
patent attorney named Bertram Rowland and the law firm of Flehr, Hohbach, Test,
Albritton and Herbert LLP, alleging that all three defendants misappropriated
our trade secrets relating to our business plans, patents and intellectual


                                       18
<PAGE>   20

property strategy. The suit also alleges that Dr. Rowland and Flehr Hohbach
committed a breach of the duties they owed to us as our former attorneys. The
suit seeks damages and equitable remedies to prevent Aclara, Dr. Rowland and
Flehr Hohbach from benefiting from the alleged misappropriation and breach of
duties. On September 14, 2000, we reached a settlement agreement with Dr.
Rowland and Flehr Hohbach in the case pending in Santa Clara County. The
settlement provides Caliper with a $12.0 million cash payment by Dr. Rowland and
Flehr Hohbach, as well as other terms. This settlement has no effect on
Caliper's lawsuits with Aclara. In this same case, on October 27, 2000, the jury
returned a verdict in favor of Caliper and against Aclara on Caliper's claims
for misappropriation of trade secrets and conversion of property. The jury
awarded Caliper $52.6 million for damages to Caliper and unjust enrichment to
Aclara. Caliper has also requested certain equitable relief, including certain
rights to the Aclara patent that is the subject of Aclara's suit against
Caliper. The court has not yet ruled on that issue. Aclara has requested that
the jury award be substantially reduced on several legal grounds. The court has
not yet ruled on that request either. Aclara has publicly stated its intention
to appeal this case.

   On January 12, 2000, we filed a lawsuit in the United States District Court
for the Northern District of California against Aclara (Case No.
C-00-0145CRB(JCS)) alleging that Aclara is infringing four U.S. patents that
have been licensed to us by Lockheed Martin Energy Research Corporation, which
operates the Department of Energy's Oak Ridge National Laboratory where the
inventions were made. These patents cover technology for controlling the flow of
materials in microfluidic chips, as well as devices, systems and applications
that make use of this technology. We subsequently amended this complaint to add
a fifth, related patent. Aclara has counterclaimed for a declaratory judgment
that the patents in this suit are invalid, unenforceable and are not infringed
by Aclara.

   While we believe that our complaints in these cases are meritorious, we
cannot assure you that we will prevail in our actions against Aclara and
Aclara's counterclaims against us, or that if we prevail, the damages or
equitable remedies awarded, if any, will be commercially valuable. The jury's
award in the state court case may be set aside or reduced by the state judge or
on appeal. Furthermore, we have incurred and are likely to continue to incur
substantial costs and expend substantial personnel time in pursuing our claims
against Aclara.

   On April 23, 1999, Aclara Biosciences filed a lawsuit in United States
District Court for the Northern District of California (Case No. C-99-1968BZ)
alleging that we are making, using, selling or offering for sale microfluidic
devices that infringe United States Patent Number 5,750,015 in willful disregard
of Aclara's patent rights. This patent concerns methods and devices for moving
molecules by the application of electrical fields. The Aclara action seeks
damages for past and future reduced sales or lost profits based upon our alleged
fabrication, use, sale or offer for sale of allegedly infringing products and
processes, and seeks to enjoin our continued activities relating to these
products. We have counterclaimed for a declaratory judgment of noninfringement,
invalidity and unenforceability of all claims of the Aclara patent. On July 19,
2000, the federal judge in this action issued an order finding that eight of the
eleven claims asserted against us are invalid, and interpreting the remaining
asserted claims. On October 27, 2000, the federal judge issued a second order
holding that our products do not literally infringe Aclara's patent, but
allowing the suit to proceed on the issue of whether our products infringe under
a legal theory known as the doctrine of equivalents and whether the patent is
valid and enforceable. This action subjects us to potential liability for
damages, including treble damages, and could require us to cease making, using
or selling the affected products, or to obtain a license in order to continue to
manufacture, use or sell the affected products. While we believe we have
meritorious defenses and counterclaims to this action, we cannot assure you that
we will prevail in this action nor can we assure you that any license required
would be made available on commercially acceptable terms, if at all. Even if we
prevail in the current action, there can be no assurance that we will prevail
again if Aclara appeals the case to a higher court. Furthermore, we have
incurred and are likely to continue to incur substantial costs and expend
substantial personnel time in defending against the claims filed by Aclara.
Failure to successfully defend ourselves against the Aclara action could have a
material adverse effect on our business, financial condition and operating
results. For further information on the risks associated with this litigation
see "Part I - Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations--Factors Affecting Operating Results--We
are involved in intellectual property litigation with Aclara Biosciences that
may hurt our competitive position, may be costly to us and may prevent us from
selling our products."


ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

   Our initial public offering of common stock was effected in December 1999 and
in which we sold 5,175,000 shares of our Common Stock.

    The aggregate offering price of the 5,175,000 shares registered and sold was
$82.8 million. Of this amount, $5.8 million was paid in underwriting discounts
and commissions, and an additional $1.1 million of expenses was incurred through
December 31, 1999. None of the expenses were paid, directly or indirectly, to
directors, officers or persons owning 10 percent or more of our common stock, or
to our affiliates.


                                       19
<PAGE>   21

   As of September 30, 2000, we had applied the estimated aggregated net
proceeds of $75.9 million from our initial public offering as follows:

Temporary investments:                      $45.6 million
Working capital:                            $26.7 million
Capital expenditures:                       $ 2.4 million
Repayment of indebtedness:                  $ 1.2 million


   The foregoing amounts represent our best estimate of our use of proceeds for
the period indicated. No such payments were made to our directors or officers or
their associates, holders of 10% or more of any class of our equity securities
or to our affiliates, other than payments to officers for salaries in the
ordinary course of business.

   On August 30, 2000, we sold 2,300,000 shares of common stock at a price per
share of $48.00 to 41 institutional accredited investors in a private placement,
raising aggregate gross proceeds of $110.4 million, before payment of placement
fees and estimated expenses. CIBC World Markets Corp., FleetBoston Robertson
Stephens, Inc., Chase Securities Inc. and Gruntal & Co. LLC acted as placement
agents for the private placement and received an aggregated of $5.5 million in
placement fees. The shares of common stock were issued in reliance upon Rule 506
of Regulation D under the Securities Act of 1933, as amended.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

   None



ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

   None


ITEM 5.  OTHER INFORMATION

   None



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

 (a)  Exhibits


<TABLE>
<CAPTION>

      EXHIBIT
       NUMBER                       DESCRIPTION OF DOCUMENT
     ---------                      -----------------------
     <S>          <C>
      3.1(1)     Amended and Restated Certificate of Incorporation of Caliper.
      3.2(2)     Bylaws of Caliper.
      4.1        Reference is made to Exhibits 3.1 and 3.2.
      4.2(3)     Specimen Stock Certificate.
     10.27(4)    Lease Agreement, dated June 23, 2000 and effective July 5,
                 2000, between Caliper and Martin CBP Associates, L.P.
     10.28(4)    Promissory Note, dated July 17, 2000, between Caliper and
                 Daniel L. Kisner, M.D.
     27.1        Financial Data Schedule.
</TABLE>


(1)  Previously filed as Exhibit 3.3 to our Registration Statement on Form S-1,
     Registration No. 333-88827.


                                       20
<PAGE>   22

(2)  Previously filed as Exhibit 3.4 to our Registration Statement on Form S-1,
     Registration No. 333-88827.

(3)  Previously filed as the like-numbered Exhibit to our Registration Statement
     on Form S-1, Registration No. 333-88827.

(4)  Previously filed as the like-numbered Exhibit to our Registration Statement
     on Form S-1, Registration No. 333-45942.

(b)  Reports on Form 8-K

        We filed a Current Report on Form 8-K dated August 30, 2000 on August
31, 2000, which disclosed that we completed a private placement of 2,300,000
shares of our common stock to selected accredited institutional investors,
raising an aggregate gross proceeds of $110.4 million before payment of
placement agent fees and other expenses.


                                       21
<PAGE>   23

                                   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.

November 14, 2000                  CALIPER TECHNOLOGIES CORP.

                                   By: /s/ JAMES L. KNIGHTON
                                       ----------------------------------
                                          James L. Knighton
                                          Chief Financial Officer
                                          (Principal Financial Officer)

                                   By: /s/ ANTHONY HENDRICKSON
                                       ----------------------------------
                                           Anthony Hendrickson
                                           Corporate Controller
                                           (Principal Accounting Officer)


                                       22
<PAGE>   24

EXHIBIT INDEX

<TABLE>
<CAPTION>

      <S>         <C>
      3.1(1)     Amended and Restated Certificate of Incorporation of Caliper.
      3.2(2)     Bylaws of Caliper.
      4.1        Reference is made to Exhibits 3.1 and 3.2.
      4.2(3)     Specimen Stock Certificate.
     10.27(4)    Lease Agreement, dated June 23, 2000 and effective July 5,
                 2000, between Caliper and Martin CBP Associates, L.P.
     10.28(4)    Promissory Note, dated July 17, 2000, between Caliper and
                 Daniel L. Kisner, M.D.
     27.1        Financial Data Schedule.

</TABLE>

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

(1)  Previously filed as Exhibit 3.3 to our Registration Statement on Form S-1,
     Registration No. 333-88827.


(2)  Previously filed as Exhibit 3.4 to our Registration Statement on Form S-1,
     Registration No. 333-88827.

(3)  Previously filed as the like-numbered Exhibit to our Registration Statement
     on Form S-1, Registration No. 333-88827.

(4)  Previously filed as the like-numbered Exhibit to our Registration Statement
     on Form S-1, Registration No. 333-45942.


                                       23