UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


( X )    QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
                                                             ------------------

(   )    TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
         ________________________________ TO ___________________________________

         Commission File Number:  0-17773
                                  -------

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

       NEVADA                                             13-3442314
--------------------------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

          25 Rockwood Place      Englewood, New Jersey               07631
--------------------------------------------------------------------------------
(Address of principal executive offices)                           (Zip Code)

                                 (201) 894-1700
--------------------------------------------------------------------------------
                           (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 of 15 (d) of the Exchange Act during the past 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.

     [X]   Yes    [ ]   No

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

As of NOVEMBER 5,  1999,   -  5,604,047 shares of common stock, $.001 par value.
      ------------------      ---------

Transitional Small Business Disclosure Form     Yes [ ]       No   [X]

                                       1

<PAGE>
<TABLE>
<CAPTION>
Part I.  FINANCIAL INFORMATION
Item I.  Financial Statements

                                       ATS MONEY SYSTEMS, INC.
                                     CONSOLIDATED BALANCE SHEETS

                                                                          SEPTEMBER 30   DECEMBER 31
 ASSETS                                                                   (UNAUDITED)
                                                                          ------------   -----------
CURRENT ASSETS:
<S>                                                                       <C>            <C>
         Cash and cash equivalents                                        $ 2,036,892    $   286,368
         Trade accounts receivable, less allowance for doubtful
          accounts of $159,467 in 1999 and $140629 in 1998                  1,516,441      3,251,810
         Inventories                                                          953,090        598,667
         Prepaid expenses and other current assets                            146,392         63,513
                                                                          -----------    -----------
                  Total current assets                                      4,652,815      4,200,358
                                                                          -----------    -----------
PROPERTY-At cost:
         Office furniture                                                      99,258         96,659
         Office machinery and equipment                                       306,084        235,158
                                                                          ------------   -----------
                  Subtotal                                                    405,342        331,817

         Less Accumulated depreciation                                        240,662        199,388
                                                                          ------------   -----------
                  Property - net                                              164,680        132,429
                                                                          ------------   -----------
OTHER ASSETS:
         Software costs, less accumulated amortization of
         $1,475,867 in 1999 and $1,039,667 in 1998                          1,731,765      1,685,381
         Deposits                                                              63,132         82,562
                                                                          ------------   -----------
                  Total other assets                                        1,794,897      1,767,943
                                                                          ------------   -----------

TOTAL                                                                     $ 6,612,392    $ 6,100,730
                                                                          ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
         Accounts payable and accrued expenses                            $   850,367    $ 1,629,655
         Deferred revenue                                                   1,030,397        677,969
         Deferred income taxes                                                119,032         95,702
         Other liabilities                                                     66,397         91,358
                                                                          ------------   -----------
                  Total current liabilities                                 2,066,193      2,494,684
                                                                          ------------   -----------

LONG-TERM-Deferred credit, less accumulated amortization of
$146,137 in 1999 and $124,753 in 1998                                         139,030        160,414
                                                                          ------------   -----------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
         Common stock, non-cumulative, voting - $.001 par value,
         25,000,000 shares suthorized, 5,942,547 and 5,941,547
         shares issued at September 30, 1999 and December 31, 1998,
         respectively.                                                          5,943          5,942
         Additional paid-in capital                                         2,142,070      2,192,958
         Accumulated earnings                                               2,259,495      1,247,014
         Treasury stock - 338,500 and 281,500 shares, at par  value, at
         September 30, 1999 and December 31, 1998, respectively                  (339)          (282)
                                                                          ------------   -----------
                  Total stockholders' equity                                4,407,169      3,445,632
                                                                          ------------   -----------

TOTAL                                                                     $  6,612,392   $ 6,100,730
                                                                          ============   ===========
</TABLE>
See notes to consolidated financial statements.

                                       2
<PAGE>

                             ATS MONEY SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
              THREE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
                                   (UNAUDITED)
<TABLE>
<CAPTION>


                                                               SEPTEMBER 30   SEPTEMBER 30
                                                                   1999           1998
                                                               ------------   ------------
<S>                                                            <C>            <C>
REVENUE:
         Equipment and systems sales                           $  1,820,171   $  1,779,650
         Equipment maintenance and service revenue                  666,844        665,117
                                                               ------------   ------------
                  Total revenue                                   2,487,015      2,444,767
                                                               ------------   ------------
COST AND EXPENSES:
         Cost of goods sold and service expense:
                Equipment and systems                               796,163        769,665
                Equipment maintenance and service                   230,993        261,056
                Selling, general and administrative expenses      1,126,281      1,091,101
                                                               ------------   ------------
                  Total costs and expenses                        2,153,437      2,121,822
                                                               ------------   ------------

INCOME FROM OPERATIONS                                              333,578        322,945

NET INTEREST INCOME                                                  24,816          5,099
                                                               ------------   ------------

INCOME BEFORE INCOME TAX EXPENSE                                    358,394        328,044

INCOME TAX EXPENSE                                                  152,000        128,000
                                                               ------------   ------------
NET INCOME                                                     $    200,044   $    200,044
                                                               ============   ============
EARNINGS PER COMMON SHARE:
         Basic and diluted                                     $        .04   $        .03
                                                               ============   ============

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                     5,607,449      5,812,381
                                                               ============   ============
</TABLE>

See notes to consolidated financial statements


                                       3
<PAGE>

<TABLE>
<CAPTION>
                                  ATS MONEY SYSTEMS, INC.
                           CONSOLIDATED STATEMENTS OF OPERATIONS
                   NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
                                        (UNAUDITED)


                                                               SEPTEMBER 30  SEPTEMBER 30
                                                                   1999         1998
                                                               -----------   -----------
<S>                                                            <C>           <C>
REVENUE:
         Equipment and systems sales                           $ 7,938,947   $ 8,614,203
         Equipment maintenance and service revenue               2,083,187     1,958,395

                                                               -----------   -----------
                  Total revenue                                 10,022,134    10,572,598
                                                               -----------   -----------

COST AND EXPENSES:
         Cost of goods sold and service expense:
                Equipment and systems                            3,712,876     5,395,511
                Equipment maintenance and service                  818,918       828,621
                Selling, general and administrative expenses     3,806,994     3,542,776

                                                               -----------   -----------
                  Total costs and expenses                       8,338,788     9,766,908
                                                               -----------   -----------

INCOME FROM OPERATIONS                                           1,683,346       805,690

NET INTEREST INCOME                                                 44,135        27,739
                                                               -----------   -----------
INCOME BEFORE INCOME TAX EXPENSE                                 1,727,481       833,429

INCOME TAX EXPENSE                                                 715,000       325,000

                                                               -----------   -----------
NET INCOME                                                     $ 1,012,481   $   508,429
                                                               ===========   ===========

EARNINGS PER COMMON SHARE:
         Basic and diluted                                     $       .18   $       .09
                                                               ===========   ===========


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                    5,635,710     5,866,615
                                                               ===========   ===========
</TABLE>

See notes to consolidated financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

                                      ATS MONEY SYSTEMS, INC.
                               CONSOLIDATED STATEMENTS OF CASH FLOWS
                        NINE MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998

                                            (UNAUDITED)


                                                                       SEPTEMBER 30   SEPTMEBER 30
                                                                           1999           1998
                                                                       ------------   ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                    <C>            <C>
         Net Income                                                    $ 1,012,481    $   508,429
         Adjustments to reconcile net income to net cash
         provided by operating activities:
         Depreciation and amortization                                     456,090        387,402
         Changes in current assets and liabilities:
                  Trade accounts receivable - net                        1,735,369        532,682
                  Inventories                                             (354,423)      (155,366)
                  Prepaid expenses and other current assets                (82,879)       (30,169)
                  Accounts payable and accrued expenses                   (779,288)    (1,130,979)
                  Deferred revenue                                         352,428        559,326
                  Deferred income taxes                                     23,330             --
                  Other liabilities                                        (24,961)      (123,155)
         Deposits                                                           19,430        (24,100)

                                                                       -----------    -----------
                      Net cash provided by operating activities          2,357,577        524,070
                                                                       -----------    -----------


CASH FLOWS FROM INVESTING ACTIVITIES
         Capitalization of software development costs                     (482,584)      (525,062)
         Additions to property                                             (73,525)       (11,214)

                                                                       -----------    -----------
                      Net cash used in investing activities               (556,109)      (536,276)
                                                                       -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
         Purchase of  Common Stock                                         (51,654)      (145,364)
         Proceeds from the issuance of Common Stock                            710          5,833

                                                                       -----------    -----------
                              Net cash used in  financing activities       (50,944)      (139,531)
                                                                       -----------    -----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                     1,750,524       (151,737)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             286,368        424,168

                                                                       -----------    -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                               $ 2,036,892    $   272,431
                                                                       ===========    ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
         Cash paid during the period for:
         Income taxes                                                  $   368,517    $   569,045
                                                                       ===========    ===========
         Interest                                                      $     2,129    $       660
                                                                       ===========    ===========
</TABLE>

See notes to consolidated financial statements.

                                       5
<PAGE>

                             ATS MONEY SYSTEMS, INC.
                   Notes to Consolidated Financial Statements
                                   (Unaudited)
                               SEPTEMBER 30, 1999

NOTE 1 - UNAUDITED INFORMATION

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB and Item 310 (b) of
Regulation S-B. 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, the accompanying unaudited financial statements
reflect all adjustments (which comprise only normal recurring accruals)
necessary to present fairly the Company's consolidated financial position as of
September 30, 1999, and the results of its operations for the three and nine
month periods ended September 30, 1999 and 1998 and its cash flows for the nine
month periods ended September 30, 1999 and 1998. Information included in the
consolidated balance sheet as of December 31, 1998 has been derived from the
Company's audited financial statements contained in its Annual Report on Form
10-KSB for the year ended December 31, 1998, to which reference is made.
Operating results for the three and nine month periods ended September 30, 1999
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1999.

NOTE 2 - INVENTORIES

Inventories are stated at the lower of cost or market. Cost is determined by the
first-in, first-out method for machine parts and specific identification for
machines held for sale.

NOTE 3 - CAPITALIZED SOFTWARE COSTS

The Company capitalizes computer software development costs in accordance with
the provisions of Statement of Financial Accounting Standards No. 86;
"Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise
Marketed". Costs incurred to establish the technological feasibility of computer
software are expensed as incurred. Costs incurred for product enhancements,
subsequent to establishing technological feasibility, are capitalized and stated
at the lower of cost or net realizable value. Capitalized costs are amortized
using the straight-line method over five years, which approximates the estimated
remaining useful life of the product. It is possible that the estimated economic
life of the products and related carrying values could be reduced in the near
term due to competitive pressures. Amortization of computer software costs
amounted to $436,200 and $373,999 for the nine month periods ended September 30,
1999 and 1998, respectively, and $148,279 and $132,376 for the three month
periods ended September 30, 1999 and 1998, respectively.

NOTE 4 - REVENUE RECOGNITION

Revenue from equipment and systemS sales is recognized upon shipment to the
buyer and satisfaction of related obligations by the Company. Revenue from
software licensing is recognized on either delivery of the software if
collectibility is probable or upon completion of the majority of the product,
which equates to reaching a milestone in accordance with the contract agreement,
and any remaining insignificant obligations of the Company are accounted for by
deferring a pro rata portion of revenue and recognizing it either ratably as the
obligations are fulfilled or on completion of performance or by recording a
current year expense for the remaining costs associated with completing the
project.

                                       6
<PAGE>

NOTE 5 - EQUIPMENT MAINTENANCE AND SERVICE REVENUE

Equipment maintenance and service revenue is recognized as earned over the term
of the contract, which is generally a maximum of one year in length. Deferred
revenue represents the unearned portion of equipment maintenance and service
revenue.

NOTE 6 - STOCKHOLDERS' EQUITY

Common Stock Incentive Plan - In 1993, the Company adopted a common stock
incentive plan (the "Plan"), which, as amended, authorizes the issuance, within
ten years, of options covering up to 480,000 shares of common stock to certain
employees and other individuals of importance to the Company. The Plan is
intended to provide incentive to continued employment of certain employees and
other individuals by enabling them to acquire a proprietary interest in the
Company. Options granted under the Plan may be either "incentive stock options"
or "non-qualified stock options." Incentive stock options, granted only to
certain employees of the Company, expire within ten years (five years for a 10%
beneficial owner of the Company's securities) from the date granted and are
exercisable from time to time in accordance with the terms of such options. The
exercise price of an incentive stock option must be at least equal to the fair
market value of the common stock on the date of grant (110% for a 10% beneficial
owner of the Company's securities). Non-qualified stock options can be granted
to certain employees of the Company and advisors and consultants to the Company.
Such stock options are exercisable on or after the date of grant and the
exercise price is not limited and may be below fair market value.


Director Stock Plan - In 1995, the Company adopted the 1995 Director Stock Plan
pursuant to which, as amended, the Company's non-employee directors, upon first
being elected to the Board, are granted 10,000 shares of the Company's common
stock, and thereafter, on each reelection, are granted non-qualified stock
options to purchase 10,000 shares of the Company's common stock with an exercise
price equal to the then fair market value of such shares. In 1995, the
non-employee directors were granted an aggregate of 40,000 shares of common
stock under this plan, all of which were issued during 1996. In 1997, 1998 and
1999, the non-employee directors were granted non-qualified options under this
plan to purchase 30,000 shares of common stock each year, at an exercise price
of $.8281 per share, $.9531 per share and $.7969 per share, respectively.

                                       7
<PAGE>

A summary of the details of stock options granted and outstanding balances are
presented below:


                                                           OPTIONS OUTSTANDING
                                                           -------------------

                    OPTION                             SEPTEMBER 30  DECEMBER 31
          GRANT      PRICE    EXERCISED     CANCELED        1999            1998
        -------     ------    ---------     --------   ------------  -----------

1993    140,869     .28125       66,761        6,591      67,517 (1)      69,924
         15,315     .28125                                15,315((1)      15,315
         18,816        .31       18,816
         50,000       .001       50,000

1994
         15,000      1.375                     5,000      10,000 (1)      10,000
         21,000      1.250                    21,000        -               -

1996
         37,626    1.03125                    10,879      26,747 (1)      27,247
         10,875     1.1344                     2,500       8,375 (1)       8,375

1997
         34,500        .71        1,000       10,250      23,250 (2)      25,500
         30,000      .8281                                30,000 (1)      30,000

1998
         30,000      .9531                                30,000 (3)      30,000
         19,200        .92                     3,500      15,700 (3)      18,200
          6,000       1.01                                 6,000 (3)       6,000

1999
          6,750        .87                       500       6,250 (5)        -
          2,000        .96                                 2,000 (5)        -
         30,000      .7969                                30,000 (4)        -
         50,000        .70                                50,000 (5)        -
                             -----------   ---------   ---------        --------
                                 136,577      60,220     321,154         240,561
                             ===========   =========   =========        ========

(1)      Fully exercisable as of September 30, 1999.
(2)      15,657 of 23,250 exercisable as of September 30, 1999.
(3)      5,228 of 15,700 and 2,000 of 6,000 and 20,000 of 30,000  exercisable as
         of September 30, 1999.
(4)      10,000 of 30,000 exercisable as of September 30, 1999.
(5)      Non exercisable as of September 30, 1999.

COMMON STOCK WARRANTS - In connection with services to be rendered by an
investment banker, as of April 7, 1997, the Company granted to the investment
banker warrants to purchase 80,000 shares of common stock exercisable at $.75
per share and granted to the investment banker on April 8, 1998, warrants to
purchase an additional 80,000 shares of common stock exercisable at $1.25 per
share. The balance of the contract to purchase an additional 80,000 shares of
common stock exercisable at $1.25 per share was cancelled on April 1, 1999. All
of the warrants will expire on April 7, 2001, unless exercised prior thereto.
Based upon the fair value of the warrants at the grant date, no expense was
recognized in 1999 and 1998.

                                       8
<PAGE>

NOTE 7 - COMMITMENTS AND CONTINGENCIES

At September 30, 1999, the Company was committed under noncancelable, operating
leases for office space, automobiles and office equipment, expiring at various
dates through May 2004, requiring minimum rental payments as follows:

YEAR ENDING DECEMBER 31:



      1999          $     81,974 ( Balance of Year)
      2000               319,628
      2001               308,044
      2002               300,864
      2003               300,864
      2004                92,854
                    ------------
                    $  1,404,228
                    ============

NOTE 8 - EARNINGS PER COMMON SHARE

Basic earnings per common share is computed by dividing income available to
common stockholders by the weighted average number of common shares outstanding
during the period. The computation of diluted earnings per share is similar to
the computation of basic earnings per share except that the denominator is
increased to include the number of additional common shares that would have been
outstanding if the dilutive potential common shares had been issued. For the
three and nine month periods ended September 30, 1999 and 1998, the dilutive
effect on earnings per common share was insignificant.

                                       9
<PAGE>

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

Reference is made to Item 6 - "Management's Discussion and Analysis or Plan of
Operation", contained in the Company's Annual Report on Form 10-KSB for its year
ended December 31, 1998, for a discussion of the Company's financial condition
as of December 31, 1998, including a discussion of the Company's anticipated
liquidity and working capital requirements during 1999.

This Quarterly Report on Form 10-QSB contains, in addition to historical
information, certain forward-looking statements that involve significant risks
and uncertainties. Such forward-looking statements are based on management's
belief as well as assumptions made by, and information currently available to,
management pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can generally be
identified as such because the context of the statement may include words such
as the Company "believes", "expects" or words of similar import. Similarly,
statements that describe the Company's future plans, objectives, estimates or
goals are also forward-looking statements. Such statements address future events
and conditions concerning capital expenditures, earnings, sales, liquidity and
capital resources, and accounting matters. The Company's actual results could
differ materially from those expressed in or implied by the forward-looking
statements contained herein. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in "Financial
Condition" below and in Item 1 - "Description of Business" and elsewhere in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1998, as
well as factors such as future economic conditions and economic conditions in
the industries in which the Company's customers compete, a determination by the
Company's customers to prolong their test cycles of the Company's equipment,
software and software support services, a determination by the Company's
customers to modify or change their underlying computer and cash reporting
systems, acceptance by customers of the Company's products, changes in customer
demand, legislative, regulatory and competitive developments in markets in which
the Company operates and other circumstances affecting anticipated revenues and
costs. The Company undertakes no obligation to release publicly the result of
any revisions to these forward-looking statements that may be made to reflect
events or circumstance after the date of this Quarterly Report on Form 10-QSB or
to reflect the occurrence of other unanticipated events.

                                       10
<PAGE>



COMPARISON OF CONSOLIDATED OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1999 (THE "1999 QUARTER") TO THE THREE MONTHS ENDED SEPTEMBER 30, 1998 (THE
"1998 QUARTER").

Total revenues for the 1999 Quarter were $2,487,015, an increase of $42,248 (2%)
from the 1998 Quarter. Equipment and systems sales increased by $40,521(2%) to
$1,820,171 for the 1999 Quarter. Equipment maintenance and service revenue
increased $1,727 from $665,117 in the 1998 Quarter to $666,844 in the 1999
Quarter.

Cost of equipment and systems remained fairly constant at 44% in the 1999
Quarter compared to 43% in the 1998 Quarter. Cost of equipment maintenance and
service decreased from 39% in the 1998 Quarter to 35% in the 1999 Quarter due to
a reduction in third party maintenance costs.

Selling, general and administrative expenses of $1,126,281 in the 1999 Quarter
were $35,180 (3%) higher than in the 1998 Quarter. Basically, higher salaries,
additional staff, and higher rents for increased office space in New Jersey were
partially offset by reduced staff and office rent in the Florida office.

Net interest income of $24,816 in the 1999 Quarter was $19,717 (387%) more than
in the 1998 Quarter due to a higher level of investments during the 1999
Quarter.

Income tax expense for the 1999 Quarter was $152,000 compared to $128,000 in the
1998 Quarter. This increase of $24,000 (19%) was due to the comparable rise in
income from operations.

Net income of $206,394 during the 1999 Quarter was $6,350 (3%) higher than the
$200,044 net income in the 1998 Quarter and was mainly due to the increased
sales in the 1999 Quarter.


                                       11

<PAGE>

COMPARISON OF CONSOLIDATED OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1999 (THE "1999 PERIOD") TO THE NINE MONTHS ENDED SEPTEMBER 30, 1998 (THE "1998
PERIOD").

Total revenues for the 1999 Period were $10,022,134 a decrease of $550,464 (5%).
Equipment and systems sales declined $675,256 (8%) to $7,938,947 for the 1999
Period. This decrease was primarily due to a large hardware order from a single
retail chain during 1998, which was not duplicated in 1999. Equipment
maintenance and service revenue was $2,083,187 in the 1999 Period. This was an
increase of $124,792 (6%) as a result of additional systems under contract
during the 1999 period.

Cost of equipment and systems decreased from 63% in the 1998 Period to 47% in
the 1999 Period. This was due to the significant impact of the aforementioned
hardware sale in the prior year, coupled with a favorable mix of software sales
in the current period. Cost of equipment maintenance and service decreased from
42% in the 1998 Period to 39% in the 1999 Period primarily due to a reduction in
third party maintenance costs.

Selling, general and administrative expenses were $3,806,994 for the 1999 Period
compared to $3,542,776 for the 1998 period. This was an increase of $264,218
(7%) and was primarily attributable to higher salaries and rents somewhat offset
by a decrease in commissions resulting from a decrease in sales.

Net interest income in the 1999 Period was $44,135 compared to $27,739 for the
1998 Period. This increase of $16,396 (59%) was attributable to more cash
available due to continued profitable operations and lower receivables.

Income tax expense was $715,000 in the 1999 Period compared to $325,000 in the
comparable period of last year. This increase of $390,000 (120%) was due to
correspondingly higher income from operations.

Net income increased $504,052 (99%) to $1,012,481 for the 1999 Period and was
attributable to the significantly higher gross profit realized in 1999.

                                       12

<PAGE>

FINANCIAL CONDITION:

At September 30, 1999, the Company had working capital of $2,586,622 (an
increase of $880,948 from $1,705,674 at December 31, 1998) and cash and cash
equivalents (including short-term investments) of $2,036,892 (as compared to
$286,368 at December 31, 1998). At September 30, 1999, the Company did not have
any outstanding borrowings.

During the first nine months of 1999, operating activities provided $2,357,579
of net cash, primarily from collections of trade accounts receivable and from
customers who prepay their annual maintenance contracts. Investing activities
used $556,111 of net cash primarily for software development.

The Company has a $750,000 discretionary line of credit for the Company's
short-term needs, at an interest rate equal to the bank's base rate plus 1/2%.
All advances under this line of credit are required to be secured by a lien on
substantially all of the Company's assets. The Company has not utilized such
line of credit since February 1998.

The Company believes that its current working capital, together with anticipated
funds from operations, will be sufficient to meet the Company's projected
operating needs and capital expenditures for the foreseeable future.

In 1998, the Company commenced a program to repurchase up to 500,000 shares of
its common stock from time to time in the over-the-counter market. The Company
is continuing such program during 1999. Through November 5, 1999, the Company
purchased 238,500 shares of its common stock, under the plan, for an aggregate
of $247,653.

The Company leases its facilities. As of September 30, 1999, the Company had no
material commitments for capital expenditures.

IMPACT OF THE YEAR 2000 ISSUE:

Background
Many currently installed computer systems and software currently record years in
a two-digit format. Such computer systems and software, if not modified, will be
unable to properly recognize dates beyond the year 1999. This inability to
recognize the year 2000 is commonly referred to as the "Year 2000 Issue".

Internal Systems
The Company has reviewed all of its internal systems and has determined that
substantially all of the Company's internal systems are Year 2000 compliant.
Remediation was required for certain systems. Systems requiring remediation were
the telephone and accounting systems. Both have been certified as Year 2000
compliant. At this juncture the Company believes that all of its significant
internal systems are Year 2000 compliant.

Current Products
Many of the stand-alone products sold by the Company do not contain a dating
mechanism and such systems, therefore, are deemed to be Year 2000 compliant. The
current versions of the Company's products, which contain dating mechanisms,
including the associated software, are Year 2000 compliant.

                                       13
<PAGE>

Previously Sold Hardware
The Company does not manufacture any of the hardware, which it sells to its
customers, certain of which is standard computer hardware supplied to the
Company for resale by third party manufacturers. The Company has identified all
hardware, which it has sold to its customers during the previous five years,
which will require modification to ensure Year 2000 compliance. Although the
Company's warranties on this older hardware have expired, if Year 2000
compliance requires a hardware remedy which will not be supplied by the
third-party manufacturer, external clock and dating mechanisms to interface with
the Company's previously sold hardware are commercially available at the present
time at minimal cost and can be supplied by the Company, in the event that the
Company is requested to do so by its customers.

Previously Furnished Third-Party Software
Certain of the software which the Company previously had supplied to its
customers (including software prepackaged by hardware manufacturers with their
hardware) was developed by third-party suppliers, and the remaining software was
developed by the Company. The Company has identified all third-party software
which it has supplied to its customers during the previous five years which will
require modification to ensure Year 2000 compliance, and has completed its
verification that such software either is Year 2000 compliant or, if not,
whether such suppliers intend to furnish appropriate modifications to their
software in the normal course to ensure timely Year 2000 compliance. The Company
has been advised that all of such software either is Year 2000 compliant or is
expected to be timely modified to be Year 2000 compliant, except that Microsoft
Corporation has advised that Microsoft(R) Access(R) version 1.1 and version 2
and Microsoft Basic Compiler(R) version 4.5 (and previous versions), which
software previously had been supplied by the Company with certain of its older
systems, are not Year 2000 compliant and will not be upgraded by Microsoft.
However, the Company believes that those portions of such non-compliant software
which continue to be used is not critical to any of the operations of the
systems sold by the Company in which such software is used, and that continued
use of such software will not affect the operations of, or the results to be
obtained from, such systems.

Previously Furnished Company Developed Software
Several of the systems sold by the Company before 1998, such as its CP-2000
Deposit/Register Verification System and older versions of its CP-3000 Retail
Cash Office Management System, contain software developed by the Company which
uses internal dating mechanisms that are not Year 2000 compliant. The Company's
warranties on these older systems do not require the Company to enhance such
systems to resolve the Year 2000 issue, although the Company believes that
certain of its customers who do not desire to replace such systems before the
Year 2000 may request that the Company supply software to make such systems Year
2000 compliant. The Company already has designed generic software enhancements
for all of these older systems at a cost of approximately $15,000, which has
been charged to expense. However, many of these older systems have unique
features, and specific modification of the Company's generic software
enhancements generally would be necessary for application to any specific
customer. The cost to the Company of such specific software modifications will
depend on the number of customers who request that their older Company developed
software be modified to be Year 2000 compliant. The Company believes that it
will be able to fully recoup these software modification costs from its
customers.

Key Suppliers and Customers
The Company has commenced a program to assess the possible effects on the
Company's operations of Year 2000 readiness by its key suppliers and customers.
As of October 28, 1999 100% of the key suppliers and customers queried have
responded that they have no Year 2000 issues that will affect the Company.

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<PAGE>

                           PART II - OTHER INFORMATION



ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K.



   (a)      Exhibits

            27.      Financial Data Schedule.

   (b)      No reports on Form 8-K were filed during the quarter for which this
            report is filed.

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<PAGE>


                                   SIGNATURES


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

                                             ATS MONEY SYSTEMS, INC.
                                             (Registrant)




         November 9, 1999                        /s/ GERARD F. MURPHY
     ------------------------                ---------------------------------
             (Date)                                  Gerard F. Murphy
                                                   Chief Executive Officer
                                                        President
                                               (Principal Executive Officer)


         November 9, 1999                        /s/ JOSEPH M. BURKE
     ------------------------                ---------------------------------
             (Date)                                  Joseph M. Burke
                                                 Vice President - Finance
                                                (Principal Accounting and
                                                    Financial Officer)


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