<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15D OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997 OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15D OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________

Commission File Number
----------------------
       1-10471

                         CRAFTMADE INTERNATIONAL, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           Delaware                                    75-2057054
  ----------------------------                      ----------------
  (State or other jurisdiction                      (I.R.S. Employer
of Incorporation or Organization)                  Identification No.)


650 South Royal Lane, Suite 100, Coppell, Texas            75019
-----------------------------------------------           --------
  (Address of principal executive offices)                Zip Code


Registrants' telephone number, including area code (972) 393-3800
                                                   --------------

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes    x.      No    .
                                               -----        -----

2,950,000 shares of Common Stock were outstanding as of April 11, 1997.
<PAGE>   2
                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES

                     Index to Quarterly Report on Form 10-Q

Part I.  Financial Information

         Item 1.  Financial Statements (unaudited)

                  Condensed Consolidated Statements of Income
                  for the three months and nine months ended
                  March 31, 1997 and 1996.

                  Condensed Consolidated Balance Sheets as of
                  March 31, 1997 and June 30, 1996.

                  Condensed Consolidated Statement of Changes
                  in Shareholders' Equity for the nine months
                  ended March 31, 1997.

                  Condensed Consolidated Statements of Cash
                  Flows for the nine months ended March 31,
                  1997 and 1996.

                  Notes to Condensed Consolidated Financial
                  Statements.

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

Part II. Other Information

         Item 1.  Legal Proceedings
         Item 2.  Changes in Securities
         Item 3.  Defaults Upon Senior Securities
         Item 4.  Submission of Matters to a Vote of Security
                  Holders
         Item 5.  Other Information
         Item 6.  Exhibits and Reports on Form 8-K
<PAGE>   3
                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES

                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)



<TABLE>
<CAPTION>
                                        FOR THE THREE MONTHS ENDED               FOR THE NINE MONTHS ENDED
                                   -------------------------------          ---------------------------------
                                     March 31,          March 31,            March 31,             March 31,
                                        1996               1997                1996                  1997 
                                   -----------         -----------          -----------           -----------
<S>                                 <C>                 <C>                 <C>                   <C>
Net Sales                          $ 8,531,715         $ 8,659,979          $25,662,081           $28,315,470
Cost of goods sold                   5,502,073           5,455,095           16,629,932            17,870,768
                                   -----------         -----------          -----------           -----------
   Gross profit                      3,029,642           3,204,884            9,032,149            10,444,702
                                   -----------         -----------          -----------           -----------
Selling, general
   and administrative
   expenses                          2,321,541           2,353,463            6,657,734             6,871,236
Interest expense,net                   275,965             348,482              574,789               996,951
Depreciation and
   amortization                         96,784              97,932              182,502               291,949
                                   -----------         -----------          -----------           -----------
      Total expenses                 2,694,290           2,799,877            7,415,025             8,160,136
                                   -----------         -----------          -----------           -----------
Income before
   income taxes                        335,352             405,007            1,617,124             2,284,566

Provision for
   income taxes                        121,080             145,802              519,300               843,605
                                   -----------         -----------          -----------           -----------
Net income                         $   214,272         $   259,205          $ 1,097,824           $ 1,440,961
                                   ===========         ===========          ===========           ===========
Earnings per
   common share                    $       .07         $       .09          $       .34           $       .47
                                   ===========         ===========          ===========           ===========
Weighted average
   shares outstanding                3,215,043           2,955,891            3,274,228             3,069,540
                                   ===========         ===========          ===========           ===========
</TABLE>



                      SEE ACCOMPANYING NOTES TO CONDENSED
                       CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>   4

                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                     ASSETS


<TABLE>
<CAPTION>
                                                                                    March 31,
                                                           June 30,                   1997
                                                             1996                  (Unaudited)
                                                         -----------               -----------
<S>                                                      <C>                       <C>
Current assets:
   Cash                                                  $   663,057               $    67,397
   Accounts receivable - trade,
      net of allowance                                     7,239,457                 5,962,254
   Inventory                                               8,680,625                12,192,405
   Prepaid expenses and other
      current assets                                       1,252,093                 1,120,819
                                                         -----------               -----------

      Total current assets                                17,835,232                19,342,875
                                                         -----------               -----------

Property and equipment, net                                9,713,592                 9,611,525
                                                         -----------               -----------

Other assets:
   Goodwill, net                                             227,214                   185,481
   Other assets                                              219,570                   197,717
                                                         -----------               -----------

         Total other assets                                  446,784                   383,198
                                                         -----------               -----------
                                                         $27,995,608               $29,337,598
                                                         ===========               ===========
</TABLE>


                      SEE ACCOMPANYING NOTES TO CONDENSED
                       CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>   5
                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                      LIABILITIES AND SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                                      March 31,
                                                          June 30,                      1997
                                                            1996                     (Unaudited)
                                                        -----------                  -----------
<S>                                                     <C>                          <C>
Current liabilities:
   Note payable, facility-
      current portion                                   $   488,656                  $   519,253
   Revolving line of credit                               7,700,000                    9,600,000
   Accounts payable - trade and
      commissions                                           465,239                      552,391
   Other accrued liabilities                                144,774                      251,250
                                                        -----------                  -----------
         Total current liabilities                        8,798,669                   10,922,894
                                                        -----------                  -----------
   Note payable, facility -
   long term portion                                      8,519,131                    8,125,776
   Other liabilities                                         44,977                       44,977
                                                        -----------                  -----------
   Total liablities                                      17,362,777                   19,093,647
                                                        -----------                  -----------
Shareholders' equity:
   Series A cumulative, convertible,
   callable preferred stock, $1.00
   par value, 2,000,000 shares
   authorized; 32,000 shares issued                          32,000                       32,000
Common stock, $.01 par value,
   15,000,000 shares authorized,
   4,110,683 shares issued                                   41,107                       41,107
Additional paid-in capital                                7,095,571                    7,095,571
Retained earnings                                         9,224,252                   10,573,530
                                                        -----------                  -----------
                                                         16,392,930                   17,742,208
Less: treasury stock, 1,160,683
   and 907,914 common shares at
   cost as of March 31, 1997 and
   June 30, 1996, respectively
   and 32,000 preferred shares at cost                   (5,760,099)                  (7,498,257)
                                                        -----------                  -----------
      Total shareholders' equity                         10,632,831                   10,243,951
                                                        -----------                  -----------
                                                        $27,995,608                  $29,337,598
                                                        ===========                  ===========
</TABLE>

                      SEE ACCOMPANYING NOTES TO CONDENSED
                       CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>   6

                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                    FOR THE NINE MONTHS ENDED MARCH 31, 1997
                                  (UNAUDITED)

<TABLE>
<CAPTION>                                                                                                                       
                                                              Series A   Additional          
                                              Voting          Preferred    Paid-in       Retained            
                                           Common Stock         Stock      Capital       Earnings   Treasury Stock    Total      
                                      --------------------    --------   -----------    -----------  ------------  ----------- 
                                        Shares     Amount                                               Amount                  
                                      ---------   --------                                           ------------              
<S>                                   <C>         <C>         <C>        <C>            <C>          <C>           <C>          
Balance as of June 30, 1996           4,110,683   $ 41,107    $ 32,000   $ 7,095,571     $9,224,252  ($5,760,099)  $10,632,831  
                                                                                                                                
Cash Dividends                                -          -           -             -        (91,683)           -       (91,683)  
                                                                                                                                
Stock Repurchase                              -          -           -             -              -   (1,738,158)   (1,738,158)  
                                                                                                                                
Net Income for the nine months                                                                                                  
ended March 31, 1997                          -          -           -             -      1,440,961            -     1,440,961  
                                      ---------   --------    --------   -----------    -----------  ------------  ----------- 
                                      4,110,683   $ 41,107    $ 32,000   $ 7,095,571    $10,573,530  ($7,498,257)  $10,243,951  
                                      =========   ========    ========   ===========    ===========  ============  ===========  
</TABLE>



     SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
<PAGE>   7
                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                 FOR THE NINE MONTHS ENDED
                                                                 -------------------------
                                                           March 31,                    March 31,
                                                             1996                         1997 
                                                         -----------                   -----------
<S>                                                       <C>                            <C>
Net cash provided by (used for)
   operating activities                                  $   945,322                     ($159,553)
                                                         -----------                   -----------
Cash flows from investing activities:
   Net additions to equipment                             (9,455,946)                     (143,508)
                                                         -----------                   -----------
Cash flows from financing activities:
   Facility acquisition financing                          9,200,000                             -
   Note payments on facility                                 (76,234)                     (362,758)
   Stock Repurchase                                         (699,955)                   (1,738,158)
   Net proceeds from revolving
      line of credit                                          20,000                     1,900,000
   Proceeds from exercise of stock
      options                                                  5,880                             -
   Cash dividends                                            (97,639)                      (91,683)
   Other financing activities                                   (595)                            - 
                                                         -----------                   -----------
   Net cash provided by (used for)
      financing activities                                 8,351,457                      (292,599)
                                                         -----------                   -----------

   Net decrease in cash                                     (159,167)                     (595,660)
   Cash at beginning of year                                 268,703                       663,057
                                                         -----------                   -----------

   Cash at end of period                                 $   109,536                   $    67,397
                                                         ===========                   ===========
</TABLE>

Supplemental disclosures of cash flow information:

<TABLE>
<CAPTION>
                                                                    FOR THE NINE MONTHS ENDED
                                                                    -------------------------
                                                             March 31,                      March 31,
                                                               1996                           1997 
                                                             --------                       --------
<S>                                                          <C>                            <C>
Cash paid during the period for:
   Interest                                                  $574,789                       $996,951
                                                             ========                       ========
   Income taxes                                              $775,000                       $913,410
                                                             ========                       ========
</TABLE>

                      SEE ACCOMPANYING NOTES TO CONDENSED
                       CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>   8




              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        OF CRAFTMADE INTERNATIONAL, INC.
                                AND SUBSIDIARIES

                                 MARCH 31, 1997
                                  (Unaudited)


Note 1 - BASIS OF PREPARATION AND PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
and include all adjustments which are, in the opinion of management, necessary
for a fair presentation. The condensed consolidated financial statements
include the accounts of the Company and its subsidiaries. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations. The Company believes that the
disclosures are adequate to make the information presented not misleading;
however, these financial statements should be read in conjunction with the
financial statements and the notes thereto which are incorporated by reference
in the Company's Annual Report on Form 10-K for the fiscal year ended June 30,
1995.  The financial data for the interim periods may not necessarily be
indicative of results to be expected for the year.

Note 2 - STOCK REPURCHASE

The Company's Board of Directors has previously authorized the Company to
repurchase 600,000 shares of its issued and outstanding common stock. From the
initial authorization of January 27, 1995 through March 31, 1997, the Company
has repurchased an aggregate of 551,269 shares at an aggregate cost of
$4,195,431.

<PAGE>   9

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

Results of Operations

Net sales increased $128,264, or 1.5%, for the three months ended March 31,
1997 to $8,659,979, up from $8,531,715 for the same three month period last
year. For the nine months ended March 31, 1997, net sales were $28,315,470, an
increase of $2,653,389, or 10.3%, over net sales of $25,662,081 for the same
nine month period last year. The third quarter increase was primarily the
result of a 17.8% increase in fan sales attributable to the success of this
division's marketing strategy of selective expansion of its distribution base
and new product introductions. This increase was partially offset by a $1.1
million decrease in lamp sales as orders from this division's major customer
declined due to an internal restructuring by that customer. The Company's
management remains uncertain as to what effect this restructuring will have on
future lamp orders from this customer and is currently evaluating the resources
committed to the lamp division and reviewing several alternatives, including a
restructuring of the current division into a single-customer manufacturer
with limited overhead, a reorientation of this division's customer base to
larger retailers and the dissolution of this division. The Company's management
anticipates that fan sales will continue to experience strong growth consistent
with prior years provided new home construction does not experience a downturn
similar to 1995. In addition, the fan division has entered the bathroom
lighting market by introducing at the January 1997 Dallas market a complete
line of bathstrip lighting to its customers. The Company's management
anticipates that this new product line will be well-received since it
complements the fan division's existing product lines and because it will
utilize the same distribution network and independent sales force that
currently exists with the fan division.

Gross profit for the three month period ended March 31 increased from
$3,029,642, or 35.5% of sales, in 1996 to $3,204,884, or 37.0% of sales, in
1997. For the nine month period ended March 31, gross profit increased from
$9,032,149, or 35.2% of sales, in 1996 to $10,444,702, or 36.9% of sales, in
1997. These increases were primarily attributable to the success of the fan
division's higher end product line and the initial benefit of recent price
concessions from the fan division's overseas supplier.

Total selling, general and administrative expenses increased $31,922 to
$2,353,463, or 27.2% of sales, for the three months ended March 31, 1997,
compared to $2,321,541, or 27.2% of sales, for the same three month period last
year. Total selling, general
<PAGE>   10
and administrative expenses increased $213,502 to $6,871,236, or 24.3% of
sales, for the nine months ended March 31, 1997, compared to $6,657,734, or
25.9% of sales, for the same nine month period last year. These increases were
primarily attributable to increases in sales commissions and certain other
costs directly correlated to sales and to an increase in property taxes. The
Company's management anticipates that, in the future, selling, general and
administrative expenses as a percentage of net sales will follow a consistent
trend.

Net interest expense increased $72,517, to $348,482 for the three months ended
March 31, 1997 from $275,965 for the same three month period in 1996. For the
nine months ended March 31, 1997 interest expense was $996,951, an increase of
$422,162 from interest expense of $574,789 for the same nine month period last
year. These increases were primarily the result of increases in the average
outstanding indebtedness this year over last year primarily related to the
Company's growth and treasury stock purchases and interest incurred relating to
the financing of the Company's facility acquired in December 1995. The
Company's management anticipates that the trend of increased interest expense
partially offset by the decrease in operating lease expense will continue. In
addition, management believes the long-term ownership of this facility should
prove advantageous for the Company as future lease arrangements for adequate
facility space would have resulted in an obligation in excess of the current
annual debt requirement under the new facility note payable and related
depreciation and interest expense.

Liquidity and Capital Resources

The Company's cash decreased $595,660, from $663,057 at June 30, 1996 to
$67,397 at March 31, 1997. The Company's operating activities used cash of
$159,553. This cash was primarily used to increase inventory levels, partially
offset by net income of $1,440,961 and decreases in accounts receivable.

The cash used by investing activities of $143,508 related to the purchase of
warehouse equipment.

The cash used for financing activities of $292,599 was primarily the result of
the repurchase of 252,769 shares of the Company's common stock at an aggregate
cost of $1,738,158 and principal payments of $362,758 made towards the facility
note, partially offset by $1,900,000 in additional borrowing from the Company's
line of credit.

At March 31, 1997, pursuant to the continued compliance with certain covenants
and restrictions, the Company had an additional $2,400,000 available on its
$12,000,000 line of credit. The
<PAGE>   11
Company's management believes that its current line of credit, combined with
cash flows from operation, is adequate to fund the Company's current operating
needs, annual payments under the note payable related to the facility
acquisition approximating $1,600,000, introduction of a new product line,
future treasury stock purchases under the current repurchase program and its
projected growth over the next twelve months.

Cautionary Statement

The disclosures under "Results of Operations" and "Liquidity and Capital
Resources" above contain forward-looking statements. There are certain
important factors which could cause results to differ materially than those
anticipated by some of the forward-looking statements. Some of the important
factors which would cause actual results to differ materially from those in the
forward-looking statements include, among other things, changes from
anticipated levels of sales, whether due to future national or regional
economic and competitive conditions, customer acceptance of existing and new
products, or otherwise, pricing pressures due to excess capacity, raw material
cost increases, change of tax rates, change of interest rates, unfavorable
political developments in the Republic of Taiwan, the location of the Company's
principal vendor, declining conditions in the home construction industry, and
other uncertainties, all of which are difficult to predict and many of which
are beyond the control of the Company.

<PAGE>   12
                                    PART II

                               OTHER INFORMATION

Item 1.          Legal Proceedings

                 not applicable

Item 2.          Changes in Securities

                 not applicable

Item 3.          Defaults Upon Senior Securities

                 not applicable

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

                 not applicable

Item 5.          Other Information

                 not applicable

Item 6.          Exhibits and Reports of Form 8-K

                 a).      Exhibits
                          27 Financial Data Schedule

                 b).      Reports on Form 8-K
                          none
<PAGE>   13
                                   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.

                                     CRAFTMADE INTERNATIONAL, INC.
                                           (Registrant)


Date  April 11, 1997                       JAMES R. RIDINGS 
    ------------------------         ---------------------------------
                                           JAMES R. RIDINGS
                                          President and Chief
                                           Executive Officer
<PAGE>   14
                               INDEX TO EXHIBITS



EXHIBIT
NUMBER                               EXHIBIT
-------                              -------

  27                    Financial Data Schedule