<PAGE>   1


                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   Form 10-Q
                       Quarterly Report Under Section 13
                          or 15 (d) of the Securities
                               Exchange Act of 1934       
                       ---------------------------------


For the Quarter Ended
    March 31, 1997                              Commission File Number  0-16764
-----------------------                         -------------------------------



                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
                    ----------------------------------------
             (Exact name of Registrant as specified in its charter)




      Delaware                                                 36-3535958       
---------------------                                ---------------------------
   State or other                                    IRS Employer Identification
   jurisdiction of                                   Number
   incorporation or                          
   organization                                        
                                                             
1300 E. Woodfield Road, Suite 312                    Schaumburg, Illinois 60173
---------------------------------                    --------------------------
Address of principal                                      City, State, Zip Code
executive offices                                    
                                                     
Registrant's telephone number:                             (847) 240-6200      
                                                     --------------------------


         Indicate by check mark whether the Registrant (1) has filed all
         reports required to be filed by Section 13 or 15(d) of the Securities
         Exchange Act of 1934 during the preceding 12 months (or for such
         shorter period that the Registrant was required to file such reports),
         and (2) has been subject to such filing requirements for the past 90
         days.

                              (1)  Yes  x   No 
                                       ----     ----

                              (2)  Yes  x   No 
                                       ----     ----

<PAGE>   2
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                                   FORM 10-Q

                      FOR THE QUARTER ENDED MARCH 31, 1997


                         PART I - FINANCIAL INFORMATION

<TABLE>
<S>                                                                        <C> 
Item 1.                                                                        
-------                                                                        
                                                                               
  Index to Financial Statements                                                
                                                                               
    Balance Sheets                                                             
                                                                               
      March 31, 1997 (unaudited)                                              3
                                                                               
      December 31, 1996                                                       4
                                                                               
    Statements of Revenue and Expenses (unaudited)                             
                                                                               
      For the three months ended March 31, 1997                               5
                                                                               
      For the three months ended March 31, 1996                               6
                                                                               
    Statements of Changes in Partners' Equity                                  
                                                                               
      For the three months ended March 31, 1997                                
        (unaudited)                                                           7
                                                                               
    Statements of Cash Flows (unaudited)                                       
                                                                               
      For the three months ended March 31, 1997                               8
                                                                               
      For the three months ended March 31, 1996                               9
                                                                               
    Notes to Financial Statements (unaudited)                                10
                                                                               
Item 2.                                                                        
-------                                                                        
                                                                               
  Management's Discussion and Analysis of                                      
    Financial Condition and Results of Operations                       11 - 13
                                                                               


                         PART II - OTHER INFORMATION

Items 1-6.                                                                   14
----------                                                        
</TABLE>





                                       2
<PAGE>   3
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                                 BALANCE SHEETS

                                 March 31, 1997 
                                  (Unaudited)



<TABLE>
<CAPTION>
                                                    Liquidating          Continuing
                                                      Limited              Limited
                                                      Partners            Partners             Total  
                                                     ----------          ----------          ---------
<S>                                                 <C>                  <C>                  <C>
ASSETS
------

Cash and cash equivalents                             $1,038,988           $2,068,865           $3,107,853
Net investment in direct
  financing leases                                          -                   5,988                5,988
Investment in foreclosed
  properties,  net                                       738,703            1,193,053            1,931,756
Diverted and other assets, net                           140,676              227,201              367,877
Datronic assets, net                                        -                    -                    -   
                                                      ----------           ----------           ----------

                                                      $1,918,367           $3,495,107           $5,413,474
                                                      ==========           ==========           ==========


LIABILITIES AND PARTNERS' EQUITY
--------------------------------

Accounts payable and
  accrued expenses                                    $   65,977            $ 111,930           $  177,907
Lessee rental deposits                                    34,831               57,311               92,142
                                                      ----------            ---------           ----------


Total liabilities                                        100,808              169,241              270,049


Total partners' equity                                 1,817,559            3,325,866            5,143,425
                                                      ----------           ----------           ----------

                                                      $1,918,367           $3,495,107           $5,413,474
                                                      ==========           ==========           ==========
</TABLE>





                See accompanying notes to financial statements.





                                       3
<PAGE>   4
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
                                 BALANCE SHEETS
                               December 31, 1996   


<TABLE>
<CAPTION>
                                                     Liquidating         Continuing
                                                       Limited            Limited
                                                       Partners           Partners           Total  
                                                      ----------         ----------        ---------
<S>                                                  <C>                <C>                <C>
ASSETS
------

Cash and cash equivalents                              $1,065,965         $2,093,544         $3,159,509
Due from management company                                12,826             21,678             34,504
Net investment in direct
  financing leases                                          2,520             38,959             41,479
Diverted and other assets, net                            140,676            227,201            367,877
Investment in foreclosed
  properties, net                                         740,883          1,196,573          1,937,456
Datronic assets, net                                         -                  -                  -   
                                                       ----------         ----------         ----------

                                                       $1,962,870         $3,577,955         $5,540,825
                                                       ==========         ==========         ==========


LIABILITIES AND PARTNERS' EQUITY
--------------------------------

Accounts payable and
  accrued expenses                                     $  104,052         $  174,295          $ 278,347
Lessee rental deposits                                     52,777             96,042            148,819
                                                       ----------         ----------          ---------

Total liabilities                                         156,829            270,337            427,166

Total partners' equity                                  1,806,041          3,307,618          5,113,659
                                                       ----------         ----------         ----------


                                                       $1,962,870         $3,577,955         $5,540,825
                                                       ==========         ==========         ==========
</TABLE>





                See accompanying notes to financial statements.





                                       4
<PAGE>   5
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                       STATEMENTS OF REVENUE AND EXPENSES

                   For the three months ended March 31, 1997
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                     Liquidating          Continuing
                                                       Limited              Limited
                                                      Partners             Partners             Total  
                                                     ----------           ----------          ---------
<S>                                                   <C>                  <C>                 <C>
Revenue:
  Lease income                                          $  1,971             $  5,949            $   7,920
  Interest income                                         12,823               21,655               34,478
  Rental income                                           39,653               64,043              103,696
                                                        --------             --------            ---------

                                                          54,447               91,647              146,094
                                                        --------             --------            ---------

Expenses:
  General Partner's
    expense reimbursement                                 63,911              106,309              170,220
  Professional fees                                       24,045               39,536               63,581
  Other operating expenses                                 5,271                8,788               14,059
  Credit for lease losses                                (50,298)             (81,234)            (131,532)
                                                        --------             --------            --------- 

                                                          42,929               73,399              116,328
                                                        --------             --------            ---------


Net earnings                                            $ 11,518             $ 18,248            $  29,766
                                                        ========             ========            =========

Net earnings
  -General Partner                                      $    115             $    182            $     297
                                                        ========             ========            =========

Net earnings
  -Limited Partners                                     $ 11,403             $ 18,066            $  29,469
                                                        ========             ========            =========

Net earnings per limited
  partnership unit                                        $ 0.30               $ 0.29
                                                          ======               ======


Weighted average number
  of limited partnership
  units outstanding                                       38,197               61,696
                                                          ======               ======
</TABLE>





                See accompanying notes to financial statements.





                                       5
<PAGE>   6
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                       STATEMENTS OF REVENUE AND EXPENSES

                   For the three months ended March 31, 1996
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                     Liquidating          Continuing
                                                       Limited              Limited
                                                      Partners             Partners             Total  
                                                     ----------           ----------          ---------
<S>                                                   <C>                  <C>                 <C>
Revenue:
  Lease income                                          $  8,769             $ 19,762            $  28,531
  Interest income                                         15,889               25,678               41,567
  Rental income                                           31,433               50,767               82,200
                                                        --------             --------            ---------

                                                          56,091               96,207              152,298
                                                        --------             --------            ---------

Expenses:
  Management fees-New Era                                 70,259              117,175              187,434
  General Partner's
    expense reimbursement                                 25,769               41,619               67,388
  Professional fees                                       38,125               61,852               99,977
  Other operating expenses                                 7,224               13,020               20,244
  Credit for lease losses                                (57,360)             (92,640)            (150,000)
                                                        --------             --------            --------- 

                                                          84,017              141,026              225,043
                                                        --------             --------            ---------


Net loss                                                $(27,926)            $(44,819)           $ (72,745)
                                                        ========             ========            ========= 


Net loss - General Partner                              $   (279)            $   (448)           $    (727)
                                                        ========             ========            ========= 


Net loss - Limited Partners                             $(27,647)            $(44,371)           $ (72,018)
                                                        ========             ========            ========= 

Net loss per limited
  partnership unit                                        $(0.72)              $(0.72)
                                                          ======               ====== 


Weighted average number
  of limited partnership
  units outstanding                                       38,197               61,696
                                                          ======               ======
</TABLE>





                See accompanying notes to financial statements.





                                       6
<PAGE>   7
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' EQUITY
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                                      Liquidating          Continuing
                                                     General            Limited              Limited             Total
                                                    Partner's          Partners'            Partners'          Partners'
                                                     Equity             Equity               Equity             Equity 
                                                    --------           --------             --------           --------
<S>                                               <C>                 <C>                <C>                  <C>
Balance, December 31, 1996                        $(121,032)*         $1,848,158         $3,386,533           $5,113,659

  Net earnings                                          297               11,403             18,066               29,766
  Allocation of General
    Partner's Equity                                120,735              (42,002)           (78,733)                -   
                                                  ---------           ----------         ----------           ----------


Balance, March 31, 1997                           $    -              $1,817,559         $3,325,866           $5,143,425
                                                  =========           ==========         ==========           ==========
</TABLE>



*       Balance as previously reported was $0 due to allocation of $42,117 and
        $78,915 to Liquidating and Continuing Limited Partners' Equity,
        respectively.





                See accompanying notes to financial statements.





                                       7
<PAGE>   8
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                            STATEMENTS OF CASH FLOWS

                   For the three months ended March 31, 1997
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                              Liquidating          Continuing
                                                                Limited              Limited
                                                               Partners             Partners             Total  
                                                              ----------           ----------          ---------
<S>                                                           <C>                   <C>                 <C>
Cash flows from
  operating activities:
  Net earnings                                                $   11,518            $   18,248          $   29,766
  Adjustments to
    reconcile net earnings to
    net cash used in
    operating activities:
    Credit for lease losses                                      (50,298)              (81,234)           (131,532)
    Changes in assets and
      liabilities:
      Accounts payable and
        accrued expenses                                         (38,075)              (62,365)           (100,440)
      Lessee rental deposits                                     (17,946)              (38,731)            (56,677)
      Due to management company                                   12,826                21,678              34,504
                                                              ----------            ----------           ---------

                                                                 (81,975)             (142,404)           (224,379)
                                                               ---------            ----------           --------- 


Cash flows from investing activities:
  Principal collections
    on leases                                                     52,818               114,205             167,023
  Investment in foreclosed
    properties                                                     2,180                 3,520               5,700
                                                              ----------            ----------          ----------

                                                                  54,998               117,725             172,723
                                                              ----------            ----------          ----------

Net decrease in cash and
  cash equivalents                                               (26,977)              (24,679)            (51,656)
Cash and cash equivalents:
  Beginning of year                                            1,065,965             2,093,544           3,159,509
                                                              ----------            ----------          ----------

  End of first quarter                                        $1,038,988            $2,068,865          $3,107,853
                                                              ==========            ==========          ==========
</TABLE>





                See accompanying notes to financial statements.





                                       8
<PAGE>   9
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
                            STATEMENTS OF CASH FLOWS
                   For the three months ended March 31, 1996
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                                  Liquidating          Continuing
                                                                    Limited              Limited
                                                                    Partners            Partners               Total  
                                                                   ----------          ----------            ---------
<S>                                                                <C>                   <C>                  <C>
Cash flows from
  operating activities:
  Net loss                                                         $  (27,926)           $  (44,819)          $  (72,745)
  Adjustments to reconcile net loss
    to net cash used in operating
    activities:
    Credit for lease losses                                           (57,360)              (92,640)            (150,000)
    Changes in assets
      and liabilities:
      Accounts payable and
        accrued expenses                                              (20,624)              (27,246)             (47,870)
      Lessee rental deposits                                           (2,149)               (3,573)              (5,722)
      Due to management company                                             3                     5                    8
                                                                   ----------            ----------           ----------

                                                                     (108,056)             (168,273)            (276,329)
                                                                   ----------            ----------           ---------- 


Cash flows from investing activities:
  Principal collections on leases                                     122,411               255,151              377,562
                                                                   ----------            ----------           ----------

Cash flows from financing activities:
  Distributions to
    Limited Partners                                                     -                  (61,696)             (61,696)
                                                                   ----------            ----------           ---------- 


Net increase in cash and
  cash equivalents                                                     14,355                25,182               39,537
Cash and cash equivalents:
  Beginning of year                                                 1,348,281             2,443,281            3,791,562
                                                                   ----------            ----------           ----------

  End of first quarter                                             $1,362,636            $2,468,463           $3,831,099
                                                                   ==========            ==========           ==========
</TABLE>





                See accompanying notes to financial statements.





                                       9
<PAGE>   10
                    DATRONIC EQUIPMENT INCOME FUND XVI, L.P.

                         NOTES TO FINANCIAL STATEMENTS

                                 March 31, 1997
                                  (Unaudited)

NOTE 1 - ORGANIZATION:

Datronic Equipment Income Fund XVI, L.P., a Delaware Limited Partnership (the
"Partnership"), was formed on April 21, 1987 for the purpose of acquiring and
leasing both high-and low-technology equipment.  Reference is made to Notes 3,
4, 5, and 6 to the Partnership's financial statements included in the 1996 Form
10-K for a discussion of the alleged diversion of Partnership assets in 1991
and 1992 and the subsequent litigation and settlement, change in general
partner, new classes of limited partners established,and amendments to the
Partnership Agreement which occurred.

NOTE 2 - BASIS OF FINANCIAL STATEMENTS:

The accompanying financial statements should be read in conjunction with the
Partnership's financial statements included in the 1996 Form 10-K.  The
financial information furnished herein is unaudited but in the opinion of
Management includes all adjustments necessary (all of which are normal recurring
adjustments) for a fair presentation of financial condition and results of
operations.  See Note 2 to the Partnership's financial statements included in
the 1996 Form 10-K.

NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:

Distributions to Liquidating Limited Partners were suspended after payment of
the April 1, 1995 distribution.  Distributions to Continuing Limited Partners
were suspended after payment of the January 1, 1996 distribution.

NOTE 4 - INVESTMENT ON FORECLOSED PROPERTIES:

During 1991 and 1992, the Partnership acquired three real estate properties
through foreclosure on defaulted leases.  Two of the properties are subject to
separate lease agreements each containing renewal provisions exercisable by the
lessee under certain conditions.  One lease agreement extends to November, 1997
and provides rental payments of $220,000 for 1997.  The original term of the
second lease agreement expired in February 1997.  The tenant is continuing to
occupy the premises on a month-to-month basis with a monthly rental of $11,248.





                                       10
<PAGE>   11

PART I

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

The following discussion and analysis of liquidity and capital resources covers
material changes in the Partnership's financial condition from December 31,
1996 through March 31, 1997.  The discussion and analysis of results of
operations is for the three month period ended March 31, 1997 as compared to
the corresponding period in 1996.

Financial Condition, Liquidity and Capital Resources

During the three months ended March 31, 1997, Partnership assets continued to
be converted to cash which was used to, generally, pay Partnership operating
expenses.

Net investment in direct financing leases decreased approximately $35,000
during the three months ended March 31, 1997 primarily due to principal
collections of approximately $167,000 partially offset by a credit for lease
losses of approximately $132,000.

Accounts payable and accrued expenses decreased approximately $100,000 during
the three months ended March 31, 1997 primarily due to payment of accrued legal
fees.

Lessee rental deposits decreased approximately $57,000 resulting from payments
made to lessees.

In the aggregate, partners' equity increased approximately $30,000 during the
three months ended March 31, 1997 due to earnings.

During the three months ended March 31, 1997, the Partnership's operating
activities resulted in a use of approximately $224,000 of cash.  This was due
principally to decreases in accounts payable and rental deposits of
approximately $157,000 and a non-cash credit for lease loss of approximately
$132,000, partially offset by net earnings of approximately $30,000 and a
decrease in due from management company of approximately $35,000.  During the
period, cash flows from investing activities aggregated approximately $173,000
relating primarily to principal collections on leases.

The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and the rental of foreclosed
properties.  In addition, the Partnership's sources of liquidity on a long-
term basis are expected to include proceeds from the sale of other assets of
the Partnership including, without limitation, Diverted and other assets and
foreclosed properties.  Management believes that its sources of liquidity in
the short and long-term are sufficient to meet its operating cash obligations
and provide for the ongoing pursuit of litigation, and an orderly liquidation
of the Partnership.  Distributions to Liquidating Limited Partners were
suspended after the April 1, 1995 distribution and distributions to the
Continuing Limited Partners were suspended





                                       11
<PAGE>   12

after the January 1, 1996 distribution.  It is unlikely that any additional
distributions will be made until all remaining assets are liquidated and the
pending litigation is resolved.

The continued operation and eventual liquidation of the Partnership involves
numerous complex issues which have to be resolved.  These issues relate to the
timing and realizability of Diverted and other assets, Datronic assets,
litigation and the liquidation of the other Datronic Partnerships (see Notes 3,
5 and 9 to the Partnership's financial statements included in the 1996 Form
10-K). These issues make it difficult to predict the time and costs necessary
to operate and liquidate the Partnership in an orderly manner.  As a result of
these uncertainties, it is unlikely that any additional distributions will be
made until all remaining assets are liquidated and the pending litigation is
resolved, and the amount of future distributions, if any, to the Limited
Partners is likely to be significantly less than the amount of partners' equity
reflected in the March 31, 1997 Balance Sheets (see financial statements
included in Item 1).

Results of Operations

Lease income decreased approximately $21,000 for the three month period ended
March 31, 1997 as compared to the corresponding period in 1996 primarily due to
the declining lease portfolio.

Rental income increased approximately $21,000 for the three month period ended
March 31, 1997 as compared to the corresponding period in 1996, primarily due
to rental rate increases.

Management fees-New Era represent amounts paid New Era for managing the
Partnership on a day-to-day basis pursuant to a Management Agreement which was
terminated effective June 30, 1996.  Accordingly, fees paid to New Era amounted
to zero for the three months ended March 31, 1997 as compared to approximately
$187,000 for the same period in 1996.  Subsequent to June 30, 1996 the General
Partner has assumed responsibility for day-to-day management of the Partnership
and the corresponding costs and expenses are included in General Partner's
expense reimbursement.  See Note 8 to the Partnership's financial statements
included in the 1996 Form 10-K.

The General Partner's expense reimbursement represents the amount paid to LRC
in its capacity as general partner. Total amounts paid to LRC for the three
months ended March 31, 1997 were approximately $170,000 as compared to
approximately $67,000 for the three months ended March 31, 1996.  The increase
of approximately $103,000 results from expenses of approximately $110,000
incurred in 1997 to manage the day-to-day operations of the Partnership due to
the termination of the Management Agreement with New Era  as of June 30, 1996
(see Note 8 to the Partnership's financial statements included in the 1996 Form
10-K), partially offset by an overall decrease in all other expenses of
approximately $7,000.

Professional fees decreased approximately $36,000 for the three month period
ended March 31, 1997 as compared to the corresponding period in 1996, primarily
due to decreased audit fees, consulting fees and





                                       12
<PAGE>   13

legal fees for collections and Partnership claims against former accountants
and others.

The credit for lease losses reflects Management's ongoing assessment of
potential losses inherent in the lease portfolios and actual lease collections
on certain leases in excess of those anticipated in prior years.





                                       13
<PAGE>   14

PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS


Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1996 Form 10-K for a discussion of material legal proceedings involving the
Partnership.


ITEM 2.  CHANGES IN SECURITIES

None.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.


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

None.


ITEM 5.  OTHER INFORMATION

None.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

See Exhibit Index.

(b)  Reports on Form 8-K

None.





                                       14
<PAGE>   15

                                   SIGNATURES


Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized, on the 12th day of May 1997.



                                     DATRONIC EQUIPMENT INCOME FUND XVI, L.P.  
                                     Registrant                                
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                             By:     /s/DONALD D. TORISKY                      
                                     ---------------------------------------   
                                     Donald D. Torisky                         
                                     Chairman and Chief Executive Officer,     
                                     Lease Resolution Corporation              
                                     General Partner of                        
                                     Datronic Equipment Income Fund XVI, L.P.  
                                                                               
                                                                               
                                                                               
                             By:     /s/ROBERT P. SCHAEN                       
                                     --------------------------------------    
                                     Robert P. Schaen                          
                                     Vice Chairman and Chief Financial Officer,
                                     Lease Resolution Corporation              
                                     General Partner of                        
                                     Datronic Equipment Income Fund XVI, L.P.  
                                                                               




                                       15
<PAGE>   16

                                 EXHIBIT INDEX



<TABLE>
<CAPTION>
EXHIBIT NO.                    DESCRIPTION
-----------                    -----------
<S>                            <C>
                               
      27                       Financial Data Schedule, which is submitted electronically to the
                               Securities and Exchange Commission for Information only and not
                               filed.
</TABLE>                       
                               




                                       16