<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              450 Fifth Street, NW
                             Washington, D.C. 20549

                                   FORM 10-QSB



(Mark One)
[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                                     For the quarterly period ended July 4, 1999

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
     EXCHANGE ACT

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

                                                  Commission file number 2-69336



                                  CRAMER, INC.

A Kansas Corporation                             IRS Employment I.D. #48-0638707
625 Adams Street
Kansas City, Kansas  66105                          Telephone No. (913) 621-6700

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X] No[ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,051,400 shares of common stock, no
par value, as of August 4, 1999.


<PAGE>   2


                          PART I. FINANCIAL INFORMATION



ITEM 1.   FINANCIAL STATEMENTS

                                  CRAMER, INC.
                                  BALANCE SHEET
                                    UNAUDITED
                    (Amounts in Thousands, Except Share Data)

<TABLE>
<CAPTION>
                                                                            7/4/99    12/31/98
                                                                           -------   --------
<S>                                                                         <C>        <C>
ASSETS
CURRENT ASSETS:
     Cash                                                                   $    68    $    63
     Accounts receivable, net of allowance of $21                             1,474      1,114
     Inventories                                                              1,364      1,483
     Prepaid expenses                                                           395        230
                                                                            -------    -------
              Total current assets                                            3,301      2,890

PROPERTY, PLANT AND EQUIPMENT
     At cost                                                                  5,964      5,818
     Accumulated depreciation                                                 5,170      5,068
                                                                            -------    -------
                                                                                794        750
OTHER ASSETS:
     Intangible pension asset                                                   160        160
     Goodwill                                                                   180        190
     Other non current assets                                                   175        189
                                                                            -------    -------

              Total Assets                                                  $ 4,610    $ 4,179
                                                                            =======    =======

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Note payable                                                           $ 1,998    $ 1,548
     Accounts payable                                                           589        429
     Accrued liabilities                                                        619        600
                                                                            -------    -------
              Total current liabilities                                       3,206      2,577

NON-CURRENT LIABILITIES:
     Pension benefits payable                                                   460        494
     Other                                                                      216        238
                                                                            -------    -------
              Total non-current liabilities                                     676        732

STOCKHOLDERS' EQUITY:
     Common stock, no par value; authorized, 6,000,000 shares; issued and
         outstanding 4,051,400 shares at July 4, 1999,
         and December 31, 1998                                                3,824      3,824
     Accumulated deficit                                                     (2,829)    (2,687)
                                                                            -------    -------
                                                                                995      1,137
     Minimum pension liability adjustment                                      (267)      (267)
                                                                            -------    -------
              Net stockholders' equity                                          728        870
                                                                            -------    -------

              Total Liabilities and Stockholders' Equity                    $ 4,610    $ 4,179
                                                                            =======    =======
</TABLE>


                                      -2-

<PAGE>   3


                                  CRAMER, INC.
                              STATEMENTS OF INCOME
                                    UNAUDITED
                  (Amounts in Thousands, Except Per Share Data)


<TABLE>
<CAPTION>

                                                            QUARTER ENDED               SIX MONTHS ENDED
                                                        7/4/99         7/5/98        7/4/99          7/5/98
                                                     -----------    -----------    -----------    -----------
<S>                                                  <C>            <C>            <C>            <C>
NET SALES                                            $     3,293    $     3,279    $     6,494    $     6,456
COST OF SALES                                              2,347          2,277          4,633          4,616
                                                     -----------    -----------    -----------    -----------
              Gross profit                                   946            999          1,861          1,840

OPERATING EXPENSES:
     Selling expenses                                        718            608          1,302          1,184
     General and administrative                              338            319            636            588
                                                     -----------    -----------    -----------    -----------
              Total operating expenses                     1,056            927          1,938          1,772
                                                     -----------    -----------    -----------    -----------

              Income (loss) from operations                 (110)            72            (77)            68

OTHER INCOME (EXPENSE):
     Interest expense, net                                   (30)           (22)           (55)           (47)
     Other, net                                               (2)           (31)           (10)            (5)
                                                     -----------    -----------    -----------    -----------
              Total other income (expense)                   (32)           (53)           (65)           (52)
                                                     -----------    -----------    -----------    -----------

INCOME (LOSS) BEFORE INCOME TAXES                           (142)            19           (142)            16
INCOME TAX EXPENSE (BENEFIT)                                   0              0              0              0
                                                     -----------    -----------    -----------    -----------

NET INCOME (LOSS)                                    $      (142)   $        19    $      (142)   $        16
                                                     ===========    ===========    ===========    ===========
     Net income (loss) per share based on weighted
         average number of common equivalent
         shares outstanding                          $     (0.04)   $      0.01          (0.04)   $      0.01

     Weighted Average Common Equivalent
         Shares Outstanding     Basic                  4,051,400      4,051,400      4,051,400      4,051,400
                              Diluted                  4,051,400      4,051 400      4,051,400      4,051,400
</TABLE>


There is no difference between Net Income and Total Comprehensive Income (Loss)
for the quarter or six-month periods ending July 4, 1999 and July 5, 1998.

These interim financial statements contain all adjustments required for them to
be comparable to the annual financial statements issued on Form 10KSB.


                                      -3-
<PAGE>   4


                                  CRAMER, INC.
                            STATEMENTS OF CASH FLOWS
                                    UNAUDITED
                             (Amounts in Thousands)

<TABLE>
<CAPTION>

                                                                             Six Months Ended
                                                                             7/4/99   7/5/98
                                                                             ------   ------
<S>                                                                         <C>        <C>
Cash flows from operating activities:
Net income (loss)                                                           $  (142)   $    16
Adjustments to reconcile net income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                              126         96
     Changes in operating assets and liabilities:
         Accounts receivable                                                   (360)      (280)
         Inventories                                                            119        (18)
         Prepaid expenses                                                      (165)        39
         Accounts payable and accrued expenses                                  179        193
         Other non-current liabilities                                          (56)       (22)
                                                                            -------    -------

                      Net cash provided by (used by) operating activities      (299)        24
                                                                            -------    -------

Cash flows from investing activities:
     Capital expenditures                                                      (146)       (54)
                                                                            -------    -------

Cash flows from financing activities:
     Principal payments on notes payable and long-term debt                  (2,306)    (1,834)
     Proceeds from issuance of notes payable and long-term debt               2,756      1,838
                                                                            -------    -------

                      Net cash provided by financing activities                 450          4
                                                                            -------    -------

Net increase (decrease) in cash                                                   5        (26)
Cash at beginning of year                                                        63         52
                                                                            -------    -------

Cash at end of quarter                                                      $    68    $    26
                                                                            =======    =======

Supplemental disclosures:
     Cash paid during the period for:
         Interest                                                           $    55    $    47
                                                                            =======    =======
         Income tax                                                         $     0    $     0
                                                                            =======    =======
</TABLE>

                                      -4-

<PAGE>   5


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS

A.        FORWARD LOOKING STATEMENTS

          Except for the historical information contained herein, this report on
          Form 10-QSB contains forward-looking statements that involve risks and
          uncertainties. The Company's actual results could differ materially
          from the forward looking statements. In connection with the "safe
          harbor" provisions of the Private Securities Litigation Reform Act of
          1995, Cramer, Inc. reminds readers that there are many important
          factors that could cause the Company's actual results to differ
          materially from those projected in forward-looking statements of the
          Company made by, or on behalf of, the Company. When used in this Form
          10-QSB and in other filings by the Company with the Securities and
          Exchange Commission, in the Company's press releases and in oral
          statements made with the approval of an authorized executive officer,
          words or phrases such as "will likely result", "expects", "are
          expected to", "will continue", "is anticipated", "estimate", "project"
          or similar expressions are intended to identify forward-looking
          statements. The Company wishes to caution readers not to place undue
          reliance on such forward-looking statements.

          There are a number of reasons why investors should not place undue
          reliance on forward-looking statements. Among the risks and
          uncertainties that could cause the Company's actual results for future
          periods to differ materially from any forward-looking statements made
          are the following:

               -    Fluctuations or reductions in product demand and market
                    acceptance
               -    The level of product development by the Company
               -    Capacity and supply constraints or difficulties
               -    The results of financing efforts
               -    The effect of new laws and regulations
               -    Unexpected additional expenses or operating losses
               -    Competition
               -    The Company's reliance on certain vendors for key
                    components.
               -    The possible effect of the year 2000 on computer systems
               -    The potential inability of the Company's keyboard line to
                    generate sufficient sales to cover sales, marketing and
                    introduction costs
               -


          The foregoing list of risks and uncertainties is not meant to be
          complete.

B.        POSSIBLE EFFECT OF THE YEAR 2000

          As with many other companies, Cramer may be impacted by the "year 2000
          problem". The "year 2000 problem" arose because many existing computer
          programs use only the last two digits to refer to a year. Therefore,
          these computer programs do not properly recognize a year that begins
          with "20" instead of the familiar "19". If not corrected, many
          computer applications could fail or create erroneous results.

          In developing a response to the year 2000 issue, the Company has


                                      -5-
<PAGE>   6

          considered all of its computer systems, both those that are directly
          related to information technology systems and other systems where
          computer controls exist. The Company has also considered the readiness
          of its key vendors and customers.

          The Company's only critical system is its Enterprise Resource Planning
          (ERP) system that encompasses the Company's manufacturing, scheduling,
          purchasing, and accounting systems. The ERP system resides on an IBM
          advanced 36/AS 400. The advanced 36/AS400's operating system and the
          core ERP system will be converted to allow recognition of years
          beginning with a "20" using the 100 year fixed window methodology.
          This methodology converts all dates entered into the system in a
          prescribed manner that will allow the ERP system to consistently
          handle dates both before and after the turn of the century.

          The Company's in-house EDP department has developed and installed
          fixed window subroutines that will convert the ERP system to year 2000
          compliance. Implementation of this process is proceeding through a
          pre-established schedule for each of the various modules of the ERP
          system. All modules in the ERP system have been remediated and users
          are currently testing the revised system in a test environment that
          simulates processing in the year 2000. The Company anticipates
          converting to the revised system during the 3rd quarter of 1999.

          Due to the time required for the year 2000 project, non-essential
          enhancements to the company's computer systems have been delayed at
          times, however, the direct costs associated with the year 2000 project
          are expected to be less than $15,000.

          The Company has appointed an internal task force to review year 2000
          compliance issues for all other areas where computer controls exist.
          This review includes all other information technology systems other
          than the ERP system and possible computer controlled processes in the
          Company's facilities, communications, manufacturing equipment, etc. At
          July 30, 1999, the task force had completed its inventory of all of
          the Company's systems. Furthermore, with the exception of the
          Company's voice mail system, the task force has determined that all
          computer controlled systems have already been appropriately remediated
          for the year 2000. In conjunction with appropriate vendors, the
          company's voice mail system is currently being assessed for year 2000
          compliance. Once an assessment is completed, an appropriate
          remediation plan will be implemented.

          The Company has developed a questionnaire to assess its vendors'
          readiness to handle the year 2000 issue. These questionnaires were
          distributed to vendors in later portions of 1998 and in early 1999.
          The responses to these questionnaires have been reviewed and, as
          necessary, supplemented with verbal discussions with the vendor's
          management and information system professionals. Based on these
          procedures, the Company is unaware of any vendor that will not be year
          2000 complaint by the end of 1999.




                                      -6-
<PAGE>   7

          Through discussions with appropriate parties, the Company is aware
          that its 8 largest wholesale and catalog customers are aware of the
          year 2000 issue and are currently determining how to convert their
          systems to handle the problem. Since the remainder of the Company's
          sales are to a wide variety of other furniture re-sellers, which
          change from year to year, there are no efforts currently underway to
          assess the status of these customers' year 2000 readiness.

          The Company is developing contingency plans in case its ERP system,
          its other computer controlled systems, its vendors, or major customers
          prove not to be ready for the year 2000. With respect to the ERP
          system, the Company believes that it can operate with manual controls
          and systems for some period if all or portions of the ERP system were
          not fully operational. Depending on the extent of the deficiency,
          additional clerical personnel may have to be hired for a short period
          of time. The Company's senior management will review the results of
          the procedures performed in relation to the Company's key vendors
          during the 3rd quarter of 1999. Contingency plans for vendor supplied
          parts may include the purchase of additional inventory in the final
          month of 1999.

          There can be no assurance that year 2000 remediation by the Company or
          third parties will be properly completed or timely and failure to do
          so could have a material adverse effect on the Company's financial
          condition. The Company can not fully predict the actual effects of the
          year 2000 issue, which depends on numerous uncertainties such as (1)
          whether major third parties address this issue properly and timely and
          (2) whether broad-based or systemic economic failures may occur. The
          Company is currently unaware of any events, trends, or condition
          regarding this issue that may have a material effect on the Company's
          results of operations, liquidity, or financial position.

C.        SUMMARY OF OPERATIONS

          Order income for the first half of 1999 was $6,604,000. This is a
          reduction of approximately 4% as compared to the Company's order
          income in the first half of 1998. The reduction in order intake is
          consistent with the experience of the industry as a whole. For the
          first 5 months of 1999, the Business and Institutional Furniture
          Manufactures Association (BIFMA) reported that total industry sales
          were approximately 4% less in 1999 as compared to 1998.

          At $6,494,000, net sales for the first half of 1999 were $38,000
          higher than for the same period in 1998. The Company was able to
          increase sales in 1999 as compared to 1998 despite lower order volumes
          by improving manufacturing and scheduling efficiency. This allowed new
          orders to be scheduled with a 3 week lead time instead of the previous
          4 week lead time.  Management believes the Company's shorter lead
          time provides better customer service and is a competitive advantage
          in certain bidding situations.

          The Company's backlog at the end of the first half of 1999 was
          $974,000. This amount is virtually unchanged from the total at the end
          of 1998. Substantially all of the Company's backlog is scheduled to
          ship within the next three months.

          As a percentage of net sales, gross margins in the first half of 1999
          were

                                      -7-
<PAGE>   8

          28.7% as compared to 28.5% in the first half of 1998.

          Selling expenses in the first half of 1999 increased by $118,000 as
          compared to the first half of 1998. The increase consists primarily of
          additional salaries associated with an expansion of sales personnel.
          Personnel costs increased by $70,000 in the seating and utility
          division in order to more actively manage the Company's key catalog
          customers. These individuals will also manage specific markets areas
          which will provide better support for the Company's commissioned sales
          representatives. Personnel costs increased by $35,000 in the keyboard
          division to allow more timely contact and follow-up with the
          increasing number of customer leads being generated by the division's
          web page. In addition to the above personnel increases, the Company's
          1999 cost for catalog placement fees have increased by $60,000 as
          compared to 1998 due to increases in the number of catalogs
          participating in and increases in the rates being charged by certain
          of the Company's larger volume customers. Partially offsetting the
          above increases is a $57,000 reduction in the cost of sales literature
          due to less emphasis being placed on this sales support mechanism.

          General and administrative costs in the first half of 1999 increased
          by $48,000 as compared to the total for the first half of 1998.
          Approximately half of the increase represents additional legal fees
          related to the defense of several product liability claims. The
          majority of the remaining increase is due to higher long distance
          costs resulting from the increase in the number of sales personnel
          calling customers.

          Interest expense in the first half of 1999 increased by $8,000 as
          compared to the first half of 1998. The increase is consistent with
          the increase in average borrowings discussed below.

          As a result of the increases in operating expenses, the Company
          experienced a loss before income taxes of $142,000 in the first half
          of 1999. This is a difference of $158,000 when compared to the net
          income before income taxes of $16,000 during the first half of 1998.

          While the Company had an overall loss for the first half of 1999,
          management notes that the Company's core seating and utility product
          business remains profitable. The gross margins on these products have
          improved in 1999 as compared to 1998, (see discussion in "Summary of
          Operations" in the Company's first quarter 1999 Form 10QSB) Management
          believes that the improvements in gross margins on these products will
          continue throughout the remainder of the year. Furthermore, the
          investments in new sales personnel for this division are anticipated
          to increase order intake and sales levels during the remainder of the
          year.


          Sales of the Company's new articulating keyboard product continue to
          be slow and the sales, marketing and introductory costs for the
          product line continue to exceed the gross margin generated from its
          sales. The resultant net loss from this product line was more than the
          net income provided by the Company's







                                      -8-
<PAGE>   9

          core seating and utility business. While keyboard sales levels are
          anticipated to increase in the 2nd half of the year, the product line
          will remain in a net loss position for the remainder of 1999.

          Management believes that for 1999 as a whole, the profits from the
          core seating and utility business will slightly exceed the losses
          associated with the introduction of the keyboard products. Management
          also believes that, in the long run, the keyboard product line will be
          a successful addition to the Company's product offering providing a
          net positive return on amounts invested.


D.        FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

          The Company's trade accounts receivable increased by $360,000 from
          December 31, 1998 to July 4, 1999. The increase is due to the timing
          of sales in the final weeks of the respective periods. Weekly sales in
          the final 4 weeks of 1998 averaged $251,000. Weekly sales in the final
          4 weeks of the second quarter of 1999 averaged $276,000; an increase
          if approximately 10%.

          Inventories decreased by $119,000 during the first half of 1999. The
          difference represents normal fluctuations in the Company's inventory
          balances.

          Capital expenditures aggregated $146,000 during the first half of 1999
          and consisted primarily of replacements to tooling maintained at
          vendors used in manufacturing the Company's existing utility products.
          Most of the new tooling expenditures will allow reductions in existing
          product costs or will eliminate anticipated product cost increases.

          The Company's accounts payable increased by $160,000 from the December
          31, 1998 balance. The increase is a result of increased purchases of
          raw materials to support the increased business activity in the final
          weeks of the first half of 1999.

          During the first half of 1999 the Company reduced its long-term
          pension liability by $34,000 in accordance with established payment
          schedules.

          The Company's notes payable increased by $450,000 during the first
          half of 1999. The increase is principally due to the timing of sales
          that was described above, the company's operating losses for the
          period, and the expenditures for new tooling. The Company continues to
          participate in a consolidated cash management and credit facility with
          its parent, Rotherwood. (See discussion in Note 3 to the Financial
          Statements in the Company's 1998 Form 10KSB.) The note matures during
          the 3rd quarter of 1999. Based upon its preliminary discussions with
          its bank, management anticipates no difficulties in renewing and
          expanding this credit facility. Management also believes that the
          Company's access to this facility, along with existing cash balances
          and cash generated from future operations, will be adequate to meet
          future operating requirements and liquidity needs.


                                      -9-
<PAGE>   10


PART II.  OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

          The Company is a defendant in several lawsuits relating to product
          liability claims arising from accidents allegedly occurring in
          connection with the use of its products. The claims are covered by
          insurance and are being defended by the Company's independent counsel,
          or by counsel assigned by the insurance carriers, but are subject to
          deductibles ranging from $0 to $100,000. A number of the claimants
          allege substantial damages. While management believes the Company has
          substantial defenses with respect to the claims, the ultimate outcome
          of such litigation cannot be predicted with certainty. The Company has
          reasonably estimated and accrued in its financial statements its
          portion of the deductible as a product liability contingency. Such
          claims are an ordinary aspect of the Company's business.



ITEM 2.   CHANGES IN SECURITIES

          None.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          None.


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

          On April 15, 1999, the Company solicited proxies concerning the
          election of Directors at a meeting held on May 18, 1999.




ITEM 5.   OTHER INFORMATION

          None.



ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          None.
                                   SIGNATURES


                                      -10-
<PAGE>   11

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.



                                    CRAMER, INC.
                                    (Registrant)



Date: August 13, 1999               /s/ Gary A. Rubin
     ------------------------       -----------------------------
                                    Gary A. Rubin
                                    Vice President, Finance & CFO













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