<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 10-Q


                                QUARTERLY REPORT


        Under Section 13 or 15(d) of the Securities Exchange Act of 1934


                      FOR THE QUARTER ENDED APRIL 30, 1997



                               ACCESS BEYOND, INC.
                             A Delaware Corporation
                   IRS Employer Identification No. 52-1987873
             1300 Quince Orchard Blvd., Gaithersburg, Maryland 20878
                           Telephone - (301) 417-0552


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 and (2) has been subject to such filing requirements for
                               the past 90 days.


                                Yes  X         No
                                    ---           ---

                          Common Stock, $.01 par value,
                          12,495,291 shares outstanding
                               as of June 13, 1997
<PAGE>   2
                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

                      ACCESS BEYOND, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                     ASSETS


<TABLE>
<CAPTION>
                                                                  April 30,       July 31,
                                                                    1997            1996
                                                                 --------        --------
<S>                                                              <C>             <C>
CURRENT ASSETS

  Cash and cash equivalents                                      $  2,035        $  4,237

  Accounts receivable, net                                          4,133           7,044
  Inventories-
   Raw materials                                                    4,797           5,823
   Work in process                                                  1,083             541
   Finished goods                                                   1,516           3,320
                                                                 --------        --------
                                                                    7,396           9,684

  Deferred income taxes                                                --           1,700
  Net assets of discontinued operations                             3,897           7,337
  Note receivable                                                   1,430              --
  Other current assets                                                185             249
                                                                 --------        --------
   TOTAL CURRENT ASSETS                                            19,076          30,251

Property, equipment and technology, net                             1,684           2,457
Other assets                                                        1,414           1,072
                                                                 --------        --------
     TOTAL ASSETS                                                $ 22,174        $ 33,780
                                                                 ========        ========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
   Short-term borrowing                                          $     --        $  4,000
   Obligations under capital leases, current portion                  296             272
   Accounts payable                                                 4,931           6,076
   Accrued expenses                                                 3,146           3,105
                                                                 --------        --------
      TOTAL CURRENT LIABILITIES                                     8,373          13,453

Obligations under capital leases, long-term portion                   529             633
Other noncurrent liabilities                                          296           1,479
                                                                 --------        --------
      TOTAL LIABILITIES                                             9,198          15,565

SHAREHOLDERS' EQUITY
   Common Stock, $.01 par value                                       120             109
   Additional paid-in capital                                      44,318          39,837
   Retained earnings                                              (31,443)        (21,581)
   Equity adjustments                                                 (19)           (150)
                                                                 --------        --------
      TOTAL SHAREHOLDERS' EQUITY                                   12,976          18,215

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                       $ 22,174        $ 33,780
                                                                 ========        ========
</TABLE>


THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF ACCESS BEYOND, INC. INCLUDE
THE FINANCIAL INFORMATION OF PENRIL DATACOMM NETWORKS, INC. FOR THE PERIODS
PRIOR TO NOVEMBER 18, 1996 WHEN ACCESS BEYOND, INC. WAS SPUN-OFF FROM PENRIL
DATACOMM NETWORKS, INC. SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.

                                       2
<PAGE>   3
                      ACCESS BEYOND, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                            Three Months Ended             Nine months Ended
                                                                 April 30,                     April 30,
                                                          ----------------------        -----------------------
                                                            1997           1996           1997           1996
                                                          -------        -------        --------        -------
<S>                                                      <C>             <C>           <C>              <C>
NET REVENUES                                              $ 3,673        $ 8,973        $ 15,181        $26,320

COSTS AND EXPENSES
 Cost of revenues                                           1,905          5,669           9,811         15,568
 Selling, general and administrative                        2,711          4,391          10,033         13,084
 Product development and engineering                        1,178          1,775           4,671          5,299
 Amortization of cost over
  net assets acquired                                          --            183              --            550
                                                          -------        -------        --------        -------
     Costs before merger and restructuring expenses         5,794         12,018          24,515         34,501

One time merger related expenses                               --             --           4,076             --
                                                          -------        -------        --------        -------

OPERATING LOSS FROM CONTINUING OPERATIONS                  (2,121)        (3,045)        (13,410)        (8,181)

OTHER INCOME (EXPENSE)
 Interest Income (expense)                                     71            (96)            143           (572)
 Other: settlement of lawsuit                                  --             --           3,547             --
 Other, net                                                    53            (27)            451            (11)
                                                          -------        -------        --------        -------
                                                              124           (123)          4,141           (583)

NET LOSS FROM CONTINUING OPERATIONS                        (1,997)        (3,168)         (9,269)        (8,764)

Income (loss) from discontinued operations,
    net of income taxes                                        --             23              --            156
Gain (loss) on disposal of discontinued operations,
    net of income taxes                                      (300)            --            (593)            --
                                                          -------        -------        --------        -------

NET LOSS                                                  $(2,297)       $(3,145)       $ (9,862)       $(8,608)
                                                          =======        =======        ========        =======

 Net loss per common and common
  equivalent share from
       Continuing operations                              $ (0.17)       $ (0.31)       $  (0.79)       $ (0.94)
       Discontinued operations                                 --             --              --           0.01
       Disposal of discontinued operations                  (0.03)            --           (0.05)            --
                                                          -------        -------        --------        -------
                                                          $ (0.20)       $ (0.31)       $  (0.84)       $ (0.93)
                                                          =======        =======        ========        =======

Shares used in per share calculation                       11,990         10.134          11,777          9,300
                                                          =======        =======        ========        =======
</TABLE>

THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF ACCESS BEYOND, INC. INCLUDE
THE FINANCIAL INFORMATION OF PENRIL DATACOMM NETWORKS, INC. FOR THE PERIODS
PRIOR TO NOVEMBER 18, 1996 WHEN ACCESS BEYOND, INC. WAS SPUN-OFF FROM PENRIL
DATACOMM NETWORKS, INC. SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.



                                       3
<PAGE>   4
                      ACCESS BEYOND, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (UNAUDITED - IN THOUSANDS)



<TABLE>
<CAPTION>
                                                                       For the Nine
                                                                  Months Ended April 30,
                                                                 -----------------------
                                                                   1997           1996
                                                                 --------       --------
<S>                                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) from continuing operations                     $(9,269)       $ (8,764)

Adjustments to reconcile net income to
    net cash provided by operating activities:
    Depreciation and amortization                                    868           2,790
    Other                                                            221            (337)
(Increase) decrease in assets:
    Accounts receivable                                              226           5,623
    Inventories                                                     (572)         (1,958)
    Other current assets                                             (67)            357
 Increase (decrease) in liabilities:
    Accounts payable                                                (354)         (1,683)
    Other liabilities                                               (343)         (1,735)
                                                                 -------        --------
    Net cash provided by (used in) continuing
        operating activities                                      (8,582)         (5,707)

CASH FLOWS FROM DISCONTINUED OPERATIONS
    Income (loss) from discontinued operations                      (593)         (1,054)
    Proceeds from sale of discontinued operations                  2,911              --
    Non-cash charges and changes in working capital                 (898)           (298)
                                                                 -------        --------

    Net cash provided by (used in) discontinued operations         1,420          (1,352)

CASH FLOWS FROM INVESTING ACTIVITIES

Expenditures for property and equipment                           (1,110)           (981)
                                                                 -------        --------
    Net cash used in investing activities                         (1,110)           (981)

CASH FLOWS FROM FINANCING ACTIVITIES

Net borrowings under line of credit                                   --          (1,095)
Payments on equipment leases                                        (200)         (4,278)
Issuance of common stock                                           6,139          14,174
Other                                                                131            (173)
                                                                 -------        --------

    Net cash (used in) provided by financing activities            6,070           8,628

CASH AT THE BEGINNING OF THE PERIOD                                4,237           1,087
                                                                 -------        --------

CASH AT THE END OF THE PERIOD                                    $ 2,035        $  1,675
                                                                 =======        ========
</TABLE>


THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF ACCESS BEYOND, INC. INCLUDE
THE FINANCIAL INFORMATION OF PENRIL DATACOMM NETWORKS, INC. FOR THE PERIODS
PRIOR TO NOVEMBER 18, 1996 WHEN ACCESS BEYOND, INC. WAS SPUN-OFF FROM PENRIL
DATACOMM NETWORKS, INC. SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS.

                                       4
<PAGE>   5
                       ACCESS BEYOND, INC AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          For the Three and Nine months
                          Ended April 30, 1997 and 1996
                                   (unaudited)

1.     Access Beyond, Inc. ("Access Beyond") was incorporated on July 23, 1996,
       and filed a Form S-1 Registration Statement with the Securities and
       Exchange Commission which became effective October 17, 1996. On November
       19, 1996 Penril DataComm Networks, Inc. ("Penril") distributed a dividend
       to its stockholders of record one share of common stock of Access Beyond
       for each share of Penril common stock held. And Penril transferred all of
       the assets and liabilities of Penril's remote access business to Access
       Beyond before becoming a wholly owned subsidiary of Bay Networks, Inc. on
       November 19, 1996. As the successor company to Penril, Access Beyond
       retains the historical financial information of Penril until November 19,
       1996, when Penril was merged into Bay Networks, Inc. For accounting
       purposes, the disposition of the modem business, as a result of the
       merger agreement with Bay Networks, Inc., has been accounted for as a
       reduction of paid in capital.

       The accompanying condensed consolidated financial statements, should be
       read in conjunction with Form 10-K of Penril DataComm Networks, Inc and
       its wholly-owned subsidiaries for the year ended July 31, 1996, and the
       Form S-1 of Access Beyond which became effective October 17, 1996. The
       accompanying condensed consolidated financial statements reflect all
       adjustments which are in the opinion of management, necessary for a fair
       presentation of the Company's consolidated financial position as of April
       30, 1997 and the results of operations for the three months and nine
       months ended April 30, 1997 and April 30, 1996. The results of operations
       for such periods, however, are not necessarily indicative of the results
       to be expected for a full fiscal year.

       Certain reclassifications have been made to prior period consolidated
       financial statements to conform to the April 30, 1997 presentation.

       The Company's policy is to maintain its uninvested cash at minimal
       levels. Cash and cash equivalents include highly liquid debt instruments
       purchased with a maturity of three months or less.

2.     On November 19, 1996 Penril DataComm Networks, Inc. transferred all of
       its remote access business assets and liabilities to Access Beyond as
       part of its spin-off of Access Beyond. Assets and liabilities related to
       the modem business remained with Penril DataComm Networks, Inc. and
       Penril became a wholly-owned subsidiary of Bay Networks, Inc. as part of
       the Merger Agreement with Bay. Revenues from the modems prior to the sale
       of the modem business to Bay was $4.2 million in fiscal 1997. Under the
       terms of the Merger Agreement with Bay, assets and liabilities related to
       the modem business included the following at the date of the closing.
       Dollar amounts are reported in thousands.


<TABLE>
<CAPTION>
                                                    November 19,
                                                        1996
                                                    ------------
          <S>                                       <C>
          Assets
                 Accounts receivable, net             $2,685
                 Inventory, net                        2,860
                 Deferred tax asset                    1,700
                 Other assets                            762
                                                      ------
                                                       8,007
          Liabilities
                 Line of Credit                        4,000
                 Accounts Payable                      1,409
                 Other liabilities                       771
                                                      ------
                                                       6,180

          Net assets related to modem business        $1,827
                                                      ======
</TABLE>



                                       5
<PAGE>   6
                       ACCESS BEYOND, INC AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          For the Three and Nine months
                          Ended April 30, 1997 and 1996
                                   (unaudited)



3.     On October 10, 1996 Penril completed the sale of its wholly-owned
       subsidiary Technipower, Inc., for $4.3 million of which $2.9 million was
       paid. The remaining $1.4 million is payable, pursuant to the schedule of
       payments, on or before July 1997. Technipower, Inc. had been previously
       reported as a discontinued operation in the financial statements of
       Penril. The proceeds from the sale of Technipower were transferred to
       Access Beyond as part of the spin-off of Access Beyond and a charge of
       $93,000 was taken for the loss on disposal of Technipower.

       During fiscal 1996, the Board of Directors of Penril decided to sell
       Electro-Metrics, Inc. ("EMI"), a wholly owned subsidiary of Penril. As a
       result of the decision, EMI was reported as a discontinued operation in
       fiscal 1996. In November 1996, EMI became a wholly owned subsidiary of
       Access Beyond as part of the spin-off of Access Beyond.

       The following table sets forth the selected financial data of EMI's
       discontinued operations (in thousands):



<TABLE>
<CAPTION>
                                             Three Months Ended         Nine months Ended
                                                  April 30,                 April 30,
                                            --------------------       --------------------
                                             1997          1996         1997          1996
                                            ------        ------       ------        ------
<S>                                         <C>           <C>          <C>           <C>
       Revenues                             $1,249        $1,567       $3,653        $4,860
       Income (loss) from operations,
        before income taxes                   (261)           23         (733)          156
</TABLE>

       Because the Company expects to retain the tax benefits associated with
       the discontinued operation, no income tax benefit has been recorded for
       any year.

       The loss from operations for the first nine months of fiscal 1997 was
       included in the loss on disposal of discontinued operations in fiscal
       1996. An additional loss on disposal of $500,000 was recorded in the
       first nine months of fiscal 1997 to reflect the adjustment to
       estimated operating loss through the estimated disposal date.

       Net assets of the EMI discontinued operations consist of the following
       (in thousands):


<TABLE>
<CAPTION>
                                             April 30,       July 31,
                                               1997           1996
                                             --------        -------
<S>                                          <C>             <C>
     Current assets                           $ 4,104        $ 4,960
     Current liabilities                       (1,095)        (1,201)
                                              -------        -------
         Net current assets                     3,009          3,759
     Property, plant and equipment, net           457            502
     Other non-current assets, net                838             26
                                              -------        -------
         Net tangible assets                    4,304          4,287
     Estimated loss on disposal                  (407)          (640)
                                              -------        -------
                                              $ 3,897        $ 3,647
                                              =======        =======
</TABLE>




                                       6
<PAGE>   7
                       ACCESS BEYOND, INC AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          For the Three and Nine months
                          Ended April 30, 1997 and 1996
                                   (unaudited)

4.     In September, 1996 Penril settled a law suit with Standard Micro Systems
       Corp. In October 1996 Penril received $3.5 million in cash after all
       related expenses had been paid. The proceeds from this settlement were
       transferred to Access Beyond as part of the spin-off transaction, and
       reported as Other Income of Access Beyond for the nine months ended April
       30, 1997.

5.     In the fourth quarter of fiscal 1996, Penril recorded a restructuring
       charge of $9.7 million for the write-down of costs in excess of net
       assets acquired ($5.0 million), for the write-down of purchased
       technology ($1.0 million), and for a provision for the write-down of
       inventory ($2.2 million). This charge also included a provision for
       employee severance ($400,000) and obligations for leased facilities ($1.0
       million). As of April 30, 1997 a provision remained for the write-down of
       inventory ($1.8 million) and for obligations for leased facilities
       ($574,000).

6.     As a result of the merger with Bay Networks, Inc., all of the outstanding
       employee and non-employee stock options of Penril became fully vested and
       were exercised in fiscal 1997 generating $6.1 million in cash. All of the
       cash proceeds generated from the exercise of stock options which remained
       as of November 18, 1996 was transferred to Access Beyond as part of the
       spin-off transaction.

       On March 6, 1997, the stockholders of Access Beyond voted in favor of
       adopting the Amended as Restated 1996 Long-Term Incentive Plan and the
       Amended as Restated 1996 Non-Employee Directors' Stock Option Plan. The
       Amended as Restated 1996 Long-Term Incentive Plan reserves 2,000,000
       shares of Access Beyond common stock for issuance under the plan. The
       Amended as Restated 1996 Non-Employee Directors' Stock Option Plan
       reserves 250,000 shares of Access Beyond common stock for issuance under
       the plan.

       The Compensation Committee of the Board of Directors of Access Beyond
       granted 1,080,000 options to officers and key employees of Access Beyond
       at an exercise price of $6.625 and an additional 75,000 options at an
       exercise price of $6.75, which was the fair market value of shares of
       Common Stock on the dates of grant. All such options vest at the rate of
       30% after one year, 60% after two years and 100% after three years,
       subject to acceleration in certain circumstances.

       In accordance with the provisions of the 1996 Non-Employee Directors'
       Stock Option Plan, each non-employee director was granted 25,000 options
       on November 18, 1996 at the exercise price of $7.7375, which was the fair
       market value of shares of Common Stock on the date of grant. All such
       options vest at the rate of 30% after one year, 60% after two years and
       100% after three years, subject to acceleration in certain circumstances.

7.     On November 19, 1996, pursuant to the merger agreement, the line of
       credit which Penril had with its principal bank was assumed by Bay
       Networks, Inc. As of April 30, 1997, Access Beyond had no outstanding
       line of credit with its principal bank.

8.     In March 1997, Access Beyond entered into an agreement with Hibbing
       Electronics Corporation in which Hibbing will manufacture and sell 
       printed circuit card products to Access Beyond. Under the agreement, 
       Hibbing has the right to use the lower level of Access Beyond's 1300
       Quince Orchard Blvd, Gaithersburg, Maryland, facility as well as certain
       equipment needed for the manufacturing process. Hibbing will pay Access 
       Beyond 50% of the monthly rent, and utilities associated with that 
       facility, and will pay the current installment amounts on the equipment
       that Access Beyond leases. This agreement expires August 31, 1998 at
       which time Hibbing shall have the option to purchase all of the
       equipment covered under the agreement and Access Beyond will assign all
       right, title and interest in the covered leases and equipment to Hibbing
       in exchange for Hibbing's agreement to pay and perform Access Beyond's
       obligations under those leases.

       On May 2, 1997, Access Beyond issued 503,704 shares of its 
       unregistered common stock to Paradyne Corporation in connection with 
       the purchase of Paradyne's Windows NT Remote Access Server technology 
       ("Hawk"). The stock purchase agreement requires the Company to file a
       registration statement with the SEC soon as reasonably practicable and
       to use its best efforts to secure effectiveness on or before 
       November 2, 1997. In addition, the Company purchased $400,000 of Hawk
       inventory from Paradyne.   
                                        





                                       7
<PAGE>   8
Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

                         LIQUIDITY AND CAPITAL RESOURCES

       As a result of the merger agreement between Penril and Bay Networks, Inc.
("Bay"), certain assets and liabilities related to the modem business were
transferred to Bay. The assets included $2.7 million in accounts receivables,
$2.9 million in inventory, $1.7 million in deferred tax assets, and $762,000 in
other assets. The liabilities included the $4 million line of credit, $1.4
million in accounts payables, and $771,000 in other liabilities.

       On November 19, 1996, Penril completed the spin-off of Access Beyond and
merger with Bay. Prior to the spin-off, Penril received approximately $6.1
million in cash from the exercise of Penril's stock options, approximately $3.5
million in cash from the settlement of the law suit with Standard Micro Systems
Corp., and cash received from the closing of the contract to sell Technipower,
Inc. The cash generated from these non-operating sources was used by Penril for
the expenditures related to the spin-off of Access Beyond and merger with Bay.
These expenditures included legal and accounting fees of approximately $700,000,
investment banker fees of approximately $1.6 million and change of control
payments due to certain officers of Penril of $1.8 million. As part of the
Merger Agreement with Bay, all cash as well as the right to receive an
additional cash from the sale of Technipower was transferred to Access Beyond.
In addition, Access Beyond received $1.5 million in cash pursuant to the
Transitional Services Agreement with Penril.

       In fiscal 1996, Penril recorded a restructuring charge of $9.7 million.
The reserves remaining at the time of the spin-off were transferred to Access
Beyond. At April 30, 1997 the Company had reserves of $1.8 million for inventory
and $574,000 for unused leased facilities. The reserve for unused leased
facilities is expected to be liquidated over the remaining life of the lease
with $83,000 due in fiscal 1997, $137,000 due in fiscal 1998 and $354,000 due
after fiscal 1998. Severance payments of approximately $297,000 were paid during
the first half of fiscal 1997. As of April 30, 1997, no additional severance
payments related to the restructuring were due.

       Contributing to the cash flow during the first nine months of fiscal
1997, was a reduction in accounts receivables of $226,000 (after adjusting for
the transfer of accounts receivables to Bay). This reduction was primarily due
to lower sales volumes from the modems prior to the transfer of the modem
business to Bay.

       Inventory increased $572,000 in the first nine months of fiscal 1997
(after adjusting for the transfer of inventory to Bay). In February 1997, Access
Beyond completed its agreement with Hibbing Electronics, Inc. in which Hibbing
began, as of March 1, 1997, operating at Access Beyond's facility and assumed
all expenses for the board level manufacturing operation, including all
facilities and personnel costs.

        Accounts payable at April 30, 1997 increased $354,000 compared (after
adjusting for the transfer of accounts payable to Bay) to the amount reported
at the end of the prior fiscal year.

       In March 1997, the Company entered into a definitive agreement to sell
Electro-Metrics, Inc. (a wholly owned subsidiary which was classified as a
discontinued operation by Penril in fiscal 1996) for $4 million. The Company
expects this transaction to close before the end of fiscal year 1997 with
payment of $2 million in cash and the balance due, pursuant to the terms of the
contract.


                                       8
<PAGE>   9
                              RESULTS OF OPERATIONS

       As a result of the Merger Agreement with Bay and the spin-off of Access
Beyond, the financial statements of Access Beyond include revenue and expenses
of Penril for the period from August 1, 1996 through November 19, 1996.

       REVENUES

       For the first nine months of fiscal 1997, the Company had revenue of
$15.2 million compared to $26.3 million for the first nine months of fiscal
1996. Revenue for the quarter ended April 30, 1997 was $3.7 million compared to
$9.0 million in the third quarter of fiscal 1996. The decline in revenue was the
primarily due to the sale of the modem business to Bay Networks which closed in
second quarter of fiscal 1997. Revenue from modem license fees also declined
from $1.6 million in fiscal 1996 to $500,000 in fiscal 1997.

       GROSS PROFIT MARGINS

       Gross profit margins for the first nine months of fiscal 1997 were 35%
compared to 41% for the first nine months of fiscal 1996. Gross profit margins
for the third quarter of fiscal 1997 were 48% compared to 37% for the third
quarter of fiscal 1996. Gross margins improved significantly after March 1, 1997
as a result of the outsourcing of board level manufacturing to Hibbing
Electronics, Inc.

       SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

       For the first nine months of fiscal 1997, selling, general and
administrative expenses were $10.1 million compared to $13.1 million for the
first nine months of fiscal 1996. Expenses for the quarter ended April 30, 1997
were $2.7 million compared to $4.4 million for the third quarter of fiscal 1996.
The reduction of expenses was primarily the result of the restructuring of
Penril in the fourth quarter of fiscal 1996, and the sale of the modem business
to Bay Networks. The Company is investing significantly in sales and marketing
for the launch of its new products.

       PRODUCT DEVELOPMENT EXPENSES

For the first nine months of fiscal 1997 product development expenses   
were $4.7 million compared to $5.3 million for the same period in the prior
fiscal year. During the third quarter of fiscal 1997 product development
expenses decreased from $1.8 million for the third quarter of fiscal 1996 to
$1.2 million. This decrease in the third quarter was primarily the result of
the sale of the modem business to Bay Networks and the corresponding transfer
of modem engineers to Bay Networks early in the third quarter of fiscal 1997.

       MERGER RELATED EXPENSES

       As a result of the spin-off of Access Beyond the merger of Penril into
Bay Networks, Inc., the Company paid legal and accounting fees of approximately
$700,000, investment banker fees of $1.6 million and change of control payments
due to certain officers of Penril of $1.8 million.

       INTEREST INCOME (EXPENSE)

       Interest income for the first nine months of fiscal 1997 was $143,000
compared with interest expense of $572,000 in the same period of fiscal 1996.
Interest income for the third quarter of fiscal 1997 was $71,000 compared to
interest expense of $96,000 for the third quarter of fiscal 1996. Excess cash
was invested in highly liquid financial instruments with a maturity of three
months or less, resulting in interest income during the first nine months of
fiscal 1997.

       OTHER INCOME



                                       9
<PAGE>   10
       In September, 1996 Penril settled a law suit with Standard Micro Systems
Corp. In October 1996 Penril received $3.5 million in cash after all related
expenses had been paid. The proceeds from this settlement were transferred to
Access Beyond as part of the spin-off transaction, and reported as Other Income
of Access Beyond for the nine months ended April 30, 1997. On November 19, 1997,
pursuant to the merger with Bay Networks, Inc., the Company signed a
transitional services agreement. The Company recognized $100,000 as Other income
in the third quarter of fiscal 1997.

       NEW DEVELOPMENTS

       In May, 1997 the Company issued approximately 500,000 shares of its
common stock in connection with the purchase of Windows NT Remote Access Server
technology from Paradyne Corporation.

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         None

Item 6.  Exhibits and Reports on Form 8-K


         Exhibits

         None

         Reports on Form 8-K

         None




                                       10
<PAGE>   11
                                   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.




                                          Access Beyond, Inc.
                                                 (Registrant)




DATE: June 16, 1997                       BY: /s/ Ronald A. Howard
                                              __________________________________
                                              Ronald A. Howard
                                              Chief Executive Officer and
                                              Chairman of the Board of Directors








DATE: June 16, 1997                       BY: /s/ Mark R. Fields
                                              __________________________________
                                              Mark R. Fields
                                              Acting Chief Financial Officer



                                       11