<PAGE>   1


================================================================================

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

                                   ----------

                                    FORM 10-Q

    [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                       OR

    [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                FOR THE TRANSITION PERIOD FROM ______ TO _______

                        COMMISSION FILE NUMBER: 000-23260

                       GLOBAL VILLAGE COMMUNICATION, INC.

             (Exact name of registrant as specified in its charter)

           DELAWARE                                  94-3095680
(State or other jurisdiction of            (I.R.S. employer identification No.)
 incorporation or organization)

                              1144 EAST ARQUES AVE.
                               SUNNYVALE, CA 94086
          (Address of principal executive offices, including zip code)

                                 (408) 523-1000
              (Registrant's telephone number, including area code)

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 [ ]

The number of shares of Common Stock outstanding as of September 30, 1997 was
16,981,022. 

================================================================================
<PAGE>   2

                       GLOBAL VILLAGE COMMUNICATION, INC.

                                    FORM 10-Q

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                TABLE OF CONTENTS



<TABLE>
<CAPTION>
                                                                                         Page
                                                                                         ----
<S>                                                                                       <C>
PART I.   FINANCIAL INFORMATION

  Item 1.   Consolidated Financial Statements

                a) Condensed Consolidated Balance Sheets
                     as of September 30, 1997 and March 31, 1997 .....................      3

                b) Condensed Consolidated Statements of Operations
                     for the three and six months ended September 30, 1997 and 1996...      4

                c) Condensed Consolidated Statements of Cash Flows
                     for the six months ended September 30, 1997 and 1996 ............      5

                d) Notes to Condensed Consolidated Financial Statements ..............      6

  Item 2.   Management's Discussion and Analysis of Financial Condition and
            Results of Operations ....................................................      8


PART II.  OTHER INFORMATION

  Item 1.   Legal Proceedings ........................................................     18

  Item 2.   Changes in Securities ....................................................     18

  Item 3.   Defaults Upon Senior Securities ..........................................     18

  Item 4.   Submission of Matters to a Vote of Security Holders ......................     19

  Item 5.   Other Information ........................................................     19

  Item 6.   Exhibits and Reports on Form 8-K .........................................     20

SIGNATURES ...........................................................................     20
</TABLE>



                                       2
<PAGE>   3


                          PART 1. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

                       GLOBAL VILLAGE COMMUNICATION, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

<TABLE>
<CAPTION>
                                                     September 30,  March 31,
                                                         1997         1997
                                                     -------------  ---------
                                                       (unaudited)  (audited)
<S>                                                      <C>         <C>    
  ASSETS
  Current assets:
      Cash and cash equivalents                          $ 3,022     $ 9,687
      Accounts receivable, net                            13,070       4,324
      Receivable from sale of GlobalCenter, Inc.           
        investment                                         3,691          --
      Inventories, net                                     2,285       2,071
      Income tax receivable                                   --       7,665
      Other current assets                                   487         343
                                                         -------     -------
          Total current assets                            22,555      24,090

 Property and equipment, net                               5,374       6,929
 Investment in AirMedia, Inc.                                 --       4,043
 Other assets                                                 82         138
                                                         -------     -------
          Total assets                                   $28,011     $35,200
                                                         =======     =======

   LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities:
     Line of credit borrowings                           $    --     $ 4,241
     Accounts payable                                     15,048      15,971
     Accrued and other liabilities                         7,533       7,638
                                                         -------     -------
          Total current liabilities                      $22,581      27,850

   Stockholders' equity                                    5,430       7,350
                                                         -------     -------
          Total liabilities and stockholders' equity     $28,011     $35,200
                                                         =======     =======
</TABLE>


See accompanying Notes to Condensed Consolidated Financial Statements.



                                       3
<PAGE>   4

                       GLOBAL VILLAGE COMMUNICATION, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                Three Months Ended September 30,       Six Months Ended September 30,
                                                --------------------------------       -----------------------------
                                                       1997          1996                  1997          1996
                                                     --------      --------              --------      --------
<S>                                                  <C>           <C>                   <C>           <C>
Net revenue                                          $ 17,100      $ 32,298              $ 33,007      $ 60,741
Cost of revenue                                        12,038        21,762                22,354        43,488
                                                     --------      --------              --------      --------
     Gross profit                                       5,062        10,536                10,653        17,253

Operating expenses:
     Research and development                           2,722         3,082                 5,144         6,443
     Marketing and sales                                3,210         6,048                 7,003        13,581
     General and administrative                         1,043         1,995                 2,451         3,366
     Loss from investment in GlobalCenter, Inc.            --            --                    --         2,191
                                                     --------      --------              --------      --------
     Total operating expenses                           6,975        11,125                14,598        25,581
                                                     --------      --------              --------      --------
Loss from operations                                   (1,913)         (589)               (3,945)       (8,328)
Loss on sale of investment in AirMedia, Inc.           (2,074)           --                (2,074)           --
Gain on sale of investment in GlobalCenter, Inc.        3,691            --                 3,691            --
Other income, net                                         244           323                   301           553
                                                     --------      --------              --------      --------
Loss before income taxes                                  (52)         (266)               (2,027)       (7,775)
Income tax benefit                                         --           (93)                   --        (2,796)
                                                     --------      --------              --------      --------
Loss from continuing operations                           (52)         (173)               (2,027)       (4,979)

Discontinued operations:

     Loss from discontinued operations                     --        (1,565)                   --        (1,822)
     Gain on disposal of discontinued
       operation, net of taxes                             --         2,133                    --         2,133
                                                     --------      --------              --------      --------
Net income (loss)                                    $    (52)     $    395              $ (2,027)     $ (4,668)
                                                     ========      ========              ========      ========


Loss per share from continuing operations            $  (0.00)     $  (0.01)             $  (0.12)     $  (0.30)
Income per share from discontinued
  operations                                               --          0.03                    --          0.02
                                                     --------      --------              --------      --------
Net income (loss) per share                          $  (0.00)     $   0.02              $  (0.12)     $  (0.28)
                                                     ========      ========              ========      ========

Shares used in computing per share amounts             16,979        17,388                16,935        16,766
                                                     ========      ========              ========      ========
</TABLE>


See accompanying Notes to Condensed Consolidated Financial Statements.



                                       4
<PAGE>   5

                       GLOBAL VILLAGE COMMUNICATION, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                             Six Months Ended September 30,
                                                             ------------------------------
                                                                   1997          1996
                                                                 --------      --------
<S>                                                               <C>           <C>      
 Cash flows from operating activities:
    Net loss                                                      $ (2,027)     $ (4,668)
    Adjustments to reconcile net loss
       to net cash provided by operating activities:
        Depreciation and amortization                                1,775         1,675
        Deferred income taxes                                           --        (9,000)
        Write-off of GlobalCenter, Inc. investment                      --         2,191
        Loss from sale of investment in AirMedia, Inc.               2,074            --
    Changes in assets and liabilities:
        Accounts receivable, net                                    (8,746)       (8,266)
        Receivable from sale of GlobalCenter, Inc. investment       (3,691)           --
        Inventories                                                   (214)           83
        Income taxes                                                 7,665        (2,840)
        Other current assets                                          (144)         (238)
        Accounts payable                                              (923)         (870)
        Accrued and other liabilities                                 (105)       (1,079)
                                                                  --------      --------
    Net cash used in operating activities of:
        Continuing operations                                       (4,336)      (23,012)
        Discontinued operations                                         --         4,515
                                                                  --------      --------
            Net cash used in operating activities                   (4,336)      (18,497)
                                                                  --------      --------
Cash flows from investing activities:
        Purchases of property and equipment                           (220)       (1,311)
        Other assets                                                    56           (33)
        Purchases of short-term investments                             --       (23,217)
        Proceeds from sales and maturities of 
          short-term investments                                        --        44,542
        Investment in AirMedia, Inc.                                    --        (4,043)
        Investment in GlobalCenter, Inc.                                --        (1,548)
        Proceeds from sale of investment in AirMedia, Inc.           1,969            --
                                                                  --------      --------
            Net cash provided by investing activities                1,805        14,390
                                                                  --------      --------

Cash flows from financing activities:
    Repayments under line of credit                                 (4,241)           --
    Payments on repurchases of Common Stock                             --        (1,161)
    Proceeds from issuance of Common Stock, net                        107           447
                                                                  --------      --------
            Net cash used in financing activities                   (4,134)         (714)
                                                                  --------      --------
    Effect of exchange rate changes on cash and cash equivalents        --          (247)
                                                                  --------      --------
Net decrease in cash and cash equivalents                           (6,665)       (5,068)
Cash and cash equivalents at beginning of period                     9,687        15,900
                                                                  --------      --------
Cash and cash equivalents at end of period                        $  3,022      $ 10,832
                                                                  ========      ========

Supplemental disclosures:
    Cash paid during the period for:
        Interest                                                  $    133      $      8
        Income taxes                                              $     --      $     44
    Non-cash investing and financing activities:
        Non-cash net assets contributed to GlobalCenter, Inc.     $     --      $    643
</TABLE>


See accompanying  Notes to Condensed Consolidated Financial Statements.



                                       5
<PAGE>   6

                       GLOBAL VILLAGE COMMUNICATION, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

      1.  BASIS OF PRESENTATION

      The interim condensed consolidated financial statements as of September
      30, 1997 and for the three and six months ended September 30, 1997 and
      1996, include all adjustments (consisting of only normal recurring
      adjustments) that in the opinion of management are necessary to present
      fairly the financial information set forth therein, in accordance with
      generally accepted accounting principles. Certain reclassifications have
      been made for consistent presentation. These financial statements should
      be read in conjunction with the Company's consolidated financial
      statements and notes thereto contained in the Company's Annual Report on
      Form 10-K for the fiscal year ended March 31, 1997.

      The Company's interim results are subject to fluctuation. As a result, the
      Company believes the results of operations for the interim periods are not
      necessarily indicative of the results to be expected for any future
      period.

      2.  NET INCOME (LOSS) PER SHARE

      Net income (loss) per share data has been computed using net income (loss)
      and the weighted average number of shares of Common Stock and common
      equivalent shares from stock options outstanding (when dilutive using the
      treasury stock method).

      3.  INVENTORIES
          (in thousands)

<TABLE>
<CAPTION>
                           September 30, 1997     March 31, 1997
                           ------------------     --------------
         <S>                      <C>                 <C>   
         Purchased parts          $   --              $  199
         Work in process              15                 369
         Finished goods            2,270               1,503
                                  ------              ------
                                  $2,285              $2,071
                                  ======              ======
</TABLE>

      4. LINE OF CREDIT

      The Company has a line of credit agreement with a bank which expires in
      April 1999. Borrowings under the agreement bear interest at the bank's
      prime rate plus 2.5%. The total borrowings are limited to the lesser of
      $5,000,000 or 80% of eligible receivables, as defined, and are
      collateralized by all of the Company's assets. The agreement contains
      various financial covenants and restrictions, including restrictions on
      the Company's ability to pay dividends or to effect mergers or
      acquisitions. As of September 30, 1997, there were no borrowings under
      this line of credit and the Company was in compliance with all covenants
      and restrictions.


      5. SALE OF INVESTMENTS

      In September 1997, the Company agreed to sell its equity stake in
      GlobalCenter, Inc. ("GlobalCenter") to an existing shareholder of
      GlobalCenter for approximately $3.7 million in cash. As a result, the
      Company recorded a gain of $3.7 million, and a receivable from sale of the
      investment of $3.7 million, in the second quarter of fiscal 1998. The
      Company received cash payment in full for the receivable from sale of the
      investment in October 1997.



                                       6
<PAGE>   7

      In July 1997, the Company sold substantially all of its investment in
      AirMedia, Inc. ("AirMedia") to an existing shareholder of AirMedia for
      approximately $2.0 million in cash. As a result, the Company recorded a
      loss of $2.1 million on the sale of the investment in AirMedia in the
      second quarter of fiscal 1998.


      6.  DISCONTINUED OPERATIONS

      In the second quarter of fiscal 1997, the Company adopted a formal plan to
      discontinue its enterprise network server operation based in the United
      Kingdom (formerly, the Company's ISDN Division). The disposition of the
      division has been accounted for as a discontinued operation in accordance
      with Accounting Principles Board (APB) No. 30 and prior period financial
      statements have been restated to reflect the discontinuation of the
      enterprise network server operation.


      7.  RECENT ACCOUNTING PRONOUNCEMENTS

      In February 1997, the Financial Accounting Standards Board (FASB) issued
      Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings
      per Share." SFAS No. 128 requires dual presentation of basic earnings per
      share ("EPS") and diluted EPS on the face of all statements of operations
      issued after December 15, 1997, for all entities with complex capital
      structures.

      Basic EPS is computed using net earnings divided by the weighted-average
      number of common shares outstanding for the period. Diluted EPS reflects
      the potential dilution that could occur from common shares issuable
      through stock-based compensation including stock options, restricted stock
      awards, warrants, and other convertible securities using the treasury
      stock method. The Company expects basic EPS for profitable periods will be
      higher than primary EPS as previously reported and diluted EPS for
      profitable periods will not differ materially from primary EPS as
      reported. Computations for loss periods should not change significantly.

      In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
      Income". This Statement establishes standards for reporting and displaying
      comprehensive income and its components in the financial statements. It
      does not, however, require a specific format for the statement, but
      requires the Company to display an amount representing total comprehensive
      income for the period in that financial statement. The Company is in the
      process of determining its preferred format. This Statement is effective
      for fiscal years beginning after December 15, 1997.

      Also, in June 1997, the FASB issued SFAS No. 131, "Disclosures about
      Segments of an Enterprise and Related Information." The Statement
      establishes standards for the manner in which public business enterprises
      report information about operating segments in annual financial statements
      and requires those enterprises to report selected information about
      operating segments in interim financial reports issued to stockholders.
      This Statement is effective for financial statements for periods beginning
      after December 15, 1997, and the Company has not yet determined the impact
      of adopting the additional reporting requirements.




                                       7
<PAGE>   8




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

      The following discussion should be read in conjunction with the attached
      condensed consolidated financial statements and notes thereto, and with
      the Company's audited consolidated financial statements and notes thereto
      for the fiscal year ended March 31, 1997. This report contains
      forward-looking statements within the meaning of Section 27A of the
      Securities Act of 1933, as amended, and Section 21E of the Securities
      Exchange Act of 1934, as amended. Actual results could differ materially
      from those anticipated in forward-looking statements as a result of the
      risk factors and other cautionary disclosures set forth below and
      elsewhere in this report.

      OVERVIEW

      Global Village Communication, Inc. ("Global Village" or the "Company") is
      a leader in the design, development and marketing of easy-to-use
      integrated communications products for users of personal computers with
      Windows, Macintosh, OS/2 and DOS operating systems. The Company's products
      enable mobile, home office and networked computer users in small-to
      medium-sized organizations to access the Internet and other information
      services, connect to a remote organization's internal network, send and
      receive faxes and e-mail from their computers and communicate efficiently
      with colleagues, customers and suppliers.

      Global Village produces modems, telecommunications servers, and
      proprietary communications software for both individual users and network
      users.

      The Company's individual-use system products include TelePort modems for
      Macintosh and Windows desktop computer users, PC Card modems (including
      PowerPort) for Macintosh PowerBook and Windows portable computer users and
      internal modems provided to Apple Computer Inc. ("Apple") on an Original
      Equipment Manufacturer ("OEM") basis. The Company's products for Macintosh
      and Windows based personal computers are characterized by a highly
      integrated, proprietary software and hardware design which makes computer
      communications easy for the average user.

      The Company's line of network products includes FaxWorks Server NT and
      FaxWorks Pro LAN, software for providing fax services to office workgroups
      utilizing Windows NT, Windows 3.1, and OS/2 operating systems. The
      OneWorld series of telecommunication server systems for Macintosh provides
      shared fax, dial-out modem, and remote network access capabilities to
      small workgroups.

      The Company's core software technologies, FaxWorks communications software
      for Windows, OS/2 and DOS operating systems, GlobalFax communications
      software for Macintosh systems, and embedded software underlying Global
      Village's server systems, provide a consistent, user-friendly interface
      across individual and network product lines. For Windows, the Company also
      provides integrated communication software to OEMs.

      The Company has in the past experienced and in the future may experience
      significant fluctuations in annual and quarterly operating results that
      may be caused by many factors including, among others, the introduction or
      enhancement of products by Apple, IBM-compatible personal computer (PC)
      manufacturers, the Company or its competitors; customer acceptance of, and
      transition to, 56Kbps products, including the Company's 56Kbps product
      line; the sales rates of Apple Macintosh personal computers and PCs; the
      size and timing of individual orders; market price reductions; product
      returns; market acceptance of new products and technology; risks related
      to delays in product development; introductions of new technologies or
      standards; seasonality of revenues; customer order deferrals,
      accelerations, and payments of accounts receivable in anticipation of new
      products; changes in the 


                                       8
<PAGE>   9

      Company's operating expenses; performance of the Company's distributors
      and suppliers; mix of products sold; quality control of the Company's
      products; and general economic conditions. As a result, the Company
      believes that period-to-period comparisons of its results of operations
      are not necessarily meaningful and should not be relied upon as an
      indication of future performance.

      Moreover, the industry in which the Company competes generally is subject
      to short product life cycles. In this regard, the Company traditionally
      has experienced a reduction in the average selling prices of its products
      as the time from product introduction elapses. The Company routinely
      institutes significant price reductions and/or rebates with respect to its
      products and expects that competitive pressures will continue to
      necessitate price reductions. This is illustrated by the decline in the
      suggested retail price of the Company's TelePort Platinum product from
      $171 to $139 during the 1997 fiscal year. In particular, the Company
      expects the trend of reduced average selling prices for its individual use
      products to continue during fiscal 1998. There can be no assurance that
      the trend of reduced average selling prices will not accelerate during
      fiscal 1998.

      In May 1996, Apple announced a repair program for its Powerbook 5300 and
      190 laptop computers which was effectively a recall of defective Apple
      Macintosh computers. As a result of the repair program, the Company
      experienced significantly reduced sales of its products. Sales of such
      products have not returned to the levels achieved prior to Apple's
      announcement and the Company does not believe that it will achieve such
      sales levels in the foreseeable future. The Company therefore expects that
      revenues and/or gross margins from its products for the Apple Macintosh
      family could decrease in future periods, which would have a material
      adverse effect on the Company's business and results of operations unless
      the Company can generate sufficient revenues and/or gross margins from
      other products to compensate for any shortfall in revenues from its Apple
      platform products. Any price reduction or decrease in sales volume could
      have a material adverse effect on the Company's results of operations.

      Because the Company generally ships products within a short period after
      receipt of an order, the Company typically does not have a material
      backlog of unfilled orders, and revenues in any quarter are substantially
      dependent on orders booked in that quarter. The Company's expense levels
      are based in part on its expectations as to future revenues. Therefore,
      the Company may be unable to adjust spending in a timely manner to
      compensate for any unexpected revenue shortfall. Accordingly, any
      significant shortfall of demand in relation to the Company's expectations
      or any material delay of customer orders would have an almost immediate
      adverse impact on the Company's results of operations and liquidity.
      Fluctuations in operating results may also result in volatility in the
      price of the Company's Common Stock.

      To date, a substantial majority of the Company's revenue has been
      attributable to sales of its TelePort and PowerPort product lines for the
      Apple Macintosh family of computers, and the Company expects that sales of
      these products will account for a majority of its revenue for the
      foreseeable future. The Company's future financial performance will depend
      in part on the successful development, introduction and customer
      acceptance of new and enhanced versions of its TelePort and PC Card
      products (including PowerPort), the Company's ability to successfully
      reduce or control various operating expenses as well as the Company's
      ability to generate increased sales of products for Windows based
      computers, or other products. Though the Company continually seeks to
      further enhance its products offerings and to develop new products, there
      can be no assurance that these development efforts will result in enhanced
      or new products being introduced on a timely basis, or that any such
      product enhancements or new products will achieve market acceptance. In
      addition, the announcement by the Company of new products with the
      potential to replace current products may cause customers to defer
      purchasing the Company's current products which could have a material
      adverse effect on the Company's results of operations. As a result of
      changing technology and market 


                                       9
<PAGE>   10

      factors, the Company is subject to the risk that its inventories may
      rapidly become obsolete or that the Company may carry quantities of
      certain products that exceed current or projected demand. While the
      Company has written down inventory that it considers to be excess or
      obsolete, there can be no assurance that the Company's write downs will be
      adequate, and a material increase in such write downs and returns over
      historical rates would have a material adverse effect on the Company's
      results of operations and working capital.

      The Company's manufacturing operations consist primarily of turnkey
      managers, program managers, quality assurance, packaging and shipping
      personnel. For substantially all of its hardware assemblies, the Company
      purchases fully manufactured and tested units from CMC, a "turnkey"
      manufacturing subcontractor. Components and manufacturing services from
      the Company's suppliers are obtained on an as-needed basis. To date, the
      Company's turnkey manufacturer has provided credit to the Company as part
      of its relationship to manufacture the Company's products. While the
      Company believes its relationship with its turnkey manufacturer is good,
      if such party were to change its policies regarding providing credit to
      the Company, the Company could be required to expend additional funds for
      the production of its products, which could materially adversely affect
      the Company's financial condition. While the Company believes that there
      are a number of alternative contract manufacturers that could produce the
      Company's products, it could take a significant period of time and result
      in significant additional expense to qualify alternative subcontractors
      and commence manufacturing in the event of a reduction or interruption of
      production. Therefore, the Company is highly dependent on its continued
      relationship with its primary "turnkey" manufacturing subcontractor and
      any change or reduction or interruption or termination of this
      relationship could have a material adverse effect on the operating results
      of the Company.

      The Company is dependent on sole or limited source suppliers for certain
      key components and services used in its products particularly the modem
      chip sets designed and manufactured by Rockwell International and Texas
      Instruments. The Company has no guaranteed supply arrangements with its
      sole or limited source suppliers. The Company at times in the past has
      experienced delays in its ability to manufacture sufficient product to
      meet demand due to the inability of certain suppliers to meet the
      Company's volume and schedule requirements. There can be no assurance that
      any sole or limited source supplier will meet the Company's volume and
      scheduling requirements in the future. Any failure of such a supplier to
      meet such requirements could have a material adverse effect on the
      Company's business and results of operations and working capital.

      The following table sets forth, for the periods indicated, the percentage
      relationship to net revenue of certain items in the Company's consolidated
      statements of operations.



                                       10
<PAGE>   11



<TABLE>
<CAPTION>
                                               Three Months Ended September 30,    Six Months Ended September 30,
                                               --------------------------------    ------------------------------   
                                                      1997          1996                 1997           1996
                                                  -----------   -----------           -----------   -----------
                                                  (unaudited)   (unaudited)           (unaudited)   (unaudited)
<S>                                                    <C>              <C>               <C>            <C>
Net revenue                                            100 %          100%                100%            100 %
Cost of revenue                                         70             67                  68              72
                                                      ----            ----                ----           ----
Gross profit                                            30             33                  32              28

Operating expenses:
     Research and development                           16             10                  16              11
     Marketing and sales                                19             19                  21              22
     General and administrative                          6              6                   7               6
     Loss from investment in
       GlobalCenter, Inc.                               --             --                  --               3
                                                      ----            ----                ----           ----
     Total operating expenses                           41             35                  44              42
                                                      ----            ----                ----           ----

Loss from operations                                   (11)            (2)                (12)            (14)
Loss on sale of investment in AirMedia, Inc.           (12)            --                  (6)             --
Gain on sale of investment in
  GlobalCenter, Inc.                                    22             --                  11              --

Other income, net                                        1              1                   1               1
                                                      ----            ----                ----           ----
Loss before income taxes                                (0)            (1)                 (6)            (13)
Income tax  benefit                                     --             --                  --              (5)
                                                      ----            ----                ----           ----
Loss from continuing operations                         (0)            (1)                 (6)             (8)
Discontinued operations:
     Loss from discontinued operations                  --             (5)                 --              (3)
     Gain on disposal of discontinued
       operations, net of taxes                         --              7                  --               3
                                                      ----            ----                ----           ----
Net income (loss)                                       (0)%            1%                 (6)%            (8)%
                                                      ====            ====                ====           ====
</TABLE>


      NET REVENUE

      Net revenue includes revenue from gross shipments, licenses and royalties,
      less reserves for returns and allowances. Net revenue decreased 47% to
      $17.1 million for the second quarter of fiscal 1998 from $32.3 million for
      the second quarter of fiscal 1997. For the six months ended September 30,
      1997, net revenue decreased 46% to $33.0 million compared to $60.7 million
      during the same period ended September 30, 1996. The decrease in net
      revenue was primarily attributable to two factors. The first was reduced
      shipments of TelePort and PowerPort products which were adversely affected
      by the effect of continued weakness in the market for Apple Computer
      products and the technology transition to 56Kbps modems. Lower unit
      shipments of Apple's computers reduced demand for the Company's products.
      Second, the Company's OEM business has decreased significantly compared
      with the three months and six months ended September 30, 1996 due to a
      reduction of Apple OEM business.

      International revenue decreased to $1.6 million or 9% of net revenues for
      the second quarter of fiscal 1998 compared to $4.1 million or 13% for the
      second quarter of fiscal 1997. For the six months ended September 30,
      1997, international net revenue totaled $4.1 million or 12% of total net
      revenue compared to $7.9 million or 13% of total net revenue for the same
      period in the prior year. The decline in international net revenue in both
      the three and six month periods of fiscal 1998 was primarily attributable
      to the continued weakness in the market for Apple products and the
      transition to 56Kbps modems.

      Revenue reserves and allowances are established for estimated future
      returns due to stock balancing and discontinued and nonsaleable products
      based on the Company's past experience and internal forecasts. There can
      be no assurance that the Company's historical experience regarding returns
      and allowances will continue or that its projections will prove accurate.
      If the Company experiences 



                                       11
<PAGE>   12

      returns in excess of its reserves, the Company's results of operations
      could be materially, adversely effected.

      COST AND EXPENSES

      Cost of revenue primarily consists of cost of materials, contract
      manufacturing costs, manufacturing overhead expenses, royalty payments and
      warranty expenses. The Company's gross profit as a percentage of net
      revenue decreased to 30% for the second quarters of fiscal 1998, from 33%
      for the second quarter of fiscal 1997. Gross profit as a percentage of net
      revenue increased to 32% for the six month periods ended September 30,
      1997, from 28% for the six month period ended September 30, 1996. The
      decrease in gross profit margins in the second quarter of fiscal 1998, as
      compared to the same period in fiscal 1997, was due primarily to price
      reductions in the quarter and an increase in the mix of lower margin OEM
      business. The increase in gross profit margin for the six months ended
      September 30, 1997, compared to the same period ended September 30, 1996,
      was primarily attributable to the adverse revenue impact, in the prior
      period, of Apple's repair program for Macintosh 5300 and 190 models and
      additional inventory reserves for slow moving products in that period.
      Gross profit margins are likely to fluctuate as a result of the sales mix
      between lower and higher margin products, the nature and amount of
      licensing and royalty income, and changes in distribution channels, as
      well as changes in component and production costs, price reductions and
      reserve requirements. In particular, the Company expects that over the
      next several quarters, pricing pressures will continue, the mix of
      products will change and new products will be introduced by the Company's
      competitors, all of which may have an adverse effect on the gross margins
      from the Company's products.

      Research and development expenses decreased 12% to $2.7 million or 16% of
      net revenues for the second quarter of fiscal 1998 from $3.1 million or
      10% of net revenues in the comparable quarter of fiscal 1997. For the six
      months ended September 30, 1997, research and development expenses
      declined 20% to $5.1 million or 16% of net revenues from $6.4 million or
      11% in the comparable fiscal 1997 period. The decline in research and
      development expenses in the three and six month periods of fiscal 1998 is
      primarily related to a reduction in personnel costs and control of
      discretionary expenditures.

      Development costs incurred in the research and development of new software
      products and enhancements to existing software products are expensed as
      incurred until technological feasibility has been established, in
      compliance with SFAS No. 86, "Accounting for the Costs of Software to be
      Sold, Leased, or Otherwise Marketed." Historically, software development
      has been substantially completed concurrently with the establishment of
      technological feasibility, and, accordingly, no costs have been
      capitalized to date.

      Marketing and sales expenses decreased 47% to $3.2 million or 19% of net
      revenues in the second quarter of fiscal 1998 compared to $6.0 million or
      19% of net revenues during the same period of fiscal 1997. For the six
      months ended September 30, 1997, marketing and sales expenses decreased
      48% to $7.0 million or 21% of net revenues from $13.6 million or 22% of
      net revenues for the same period in the prior year. The decline in
      marketing and sales expenses in the three and six month periods of fiscal
      1998 is primarily related to reduced advertising and promotion expenses
      and to a reduction in personnel costs.

      General and administrative expenses decreased 48% to $1.0 million or 6% of
      net revenues in the second quarter of fiscal 1998 from $2.0 million or 6%
      of net revenues in fiscal 1997. For the six months ended September 30,
      1997, general and administrative expenses decreased 27% to $2.5 million or
      7% of net revenues from $3.4 million or 6% of net revenues for the same
      period in the prior year. 




                                       12
<PAGE>   13

      The decline in general and administrative expenses in the three and six
      month periods of fiscal 1998 is primarily related to a reduction in legal
      and certain discretionary expenses.

      In July 1997, the Company sold substantially all of its investment in
      AirMedia, Inc. for approximately $2.0 million in cash and recorded a loss
      of $2.1 million on the sale of the investment in AirMedia in the second
      quarter of fiscal 1998.

      In April 1996, Global Village announced that it had incorporated its
      Internet Services Division as a standalone business called GlobalCenter,
      Inc. At the same time, the Company announced that UUNET Technologies, Inc.
      had acquired an equity interest in GlobalCenter, Inc. At that time, the
      Company no longer had the ability to exercise significant control over
      GlobalCenter. Accordingly, the Company no longer consolidated the results
      of GlobalCenter and began to account for its investment using the equity
      method of accounting. As a result of the refinancing and operating
      performance of GlobalCenter during the first quarter of fiscal 1997, the
      Company recorded an investment loss of $2.2 million and reduced the book
      value of its investment to zero. In December 1996, GlobalCenter entered
      into a definitive merger agreement whereby GlobalCenter and Phoenix-based
      Primenet Services for the Internet, Inc. merged, reducing the Company's
      percentage ownership below 10%. Accordingly, in the third quarter of
      fiscal 1997, the Company began accounting for its investment in
      GlobalCenter using the cost method of accounting. In September 1997, the
      Company agreed to sell its equity stake in GlobalCenter for approximately
      $3.7 million in cash and recorded a gain of $3.7 million in the second
      quarter of fiscal 1998.

      Net other income declined $.1 million to $.2 million for the second
      quarter of fiscal 1998 from $.3 million for the second quarter of fiscal
      1997. For the six months ended September 30, 1997, net other income was
      $.3 million compared to $.6 million for the same period in the prior year.
      This decline is primarily attributable to a reduction in interest income.

      The Company's effective tax rate for the second quarter of fiscal 1998 was
      zero compared to 35% in the second quarter of fiscal 1997. For the six
      months ended September 30, 1997, the effective tax rate was zero compared
      to 36% for the same period in the prior year.

      LIQUIDITY AND CAPITAL RESOURCES

      The Company's cash and cash equivalents totaled $3.0 million at September
      30, 1997, representing 11% of total assets. The Company's working capital
      was approximately zero at September 30, 1997 as compared to a deficit of
      $3.8 million at March 31, 1997, an improvement of $3.8 million. The
      decrease in working capital deficit was primarily attributable to the sale
      of the Company's investments in AirMedia, Inc. and Global Center, Inc.
      (see Note 5).

      At September 30, 1997, the Company's principal source of liquidity was
      $3.0 million in cash and an unused line of credit which allows the Company
      to borrow up to the lower of $5.0 million or 80% of eligible accounts
      receivable (see Note 4).

      The Company does not expect fiscal 1998 capital expenditures to exceed
      historical levels and may be reduced. During the past several quarters,
      the Company has experienced significant negative cash flows and could do
      so in future quarters. The Company currently believes that its existing
      cash and funds available under its credit facility will enable the Company
      to meet its short-term needs. The preceding are forward-looking
      statements. The Company's funding requirements may change at any time due
      to various factors, including the Company's relationship with its turnkey
      manufacturer, the Company's operating results, the results and timing of
      the Company's launch of new products and services, the Company's ability
      to reduce or control various operating expenses through cost 



                                       13
<PAGE>   14

      containment measures or operating reductions, the success of the Company's
      marketing efforts, technological advances and competition. In the longer
      term, the Company may be required to issue additional debt or equity
      securities which could substantially dilute the ownership of existing
      stockholders. There can be no assurance that any such funding will be
      available on acceptable terms or at all. Any shortfall in funding could
      result in the Company having to curtail the introduction or development of
      new products, its entry into new markets and its other marketing efforts,
      any of which could have a material adverse affect on the Company's
      business, financial condition and results of operations.

      CERTAIN ADDITIONAL FACTORS THAT MAY AFFECT FUTURE PERFORMANCE

      In addition to the other information in this Quarterly Report, one should
      carefully consider the following factors in evaluating the Company.

      PRODUCT DEVELOPMENT AND TECHNOLOGICAL CHANGE

      The market for personal computer communications products is characterized
      by continual change and improvement in hardware and software technology
      resulting in short product life cycles. The Company's success will depend
      on its ability to enhance its current products, develop new products on a
      timely and cost-effective basis that meet changing customer needs and
      respond to emerging industry standards and other technological changes. In
      particular, the Company must adapt its products to the evolving
      technological standards of the various computer platforms and new
      technical standards resulting from increases in data transmission speed
      and wireless communication, as well as new form factors such as PCMCIA.
      Any failure by the Company to anticipate or respond adequately to changes
      in technology and customer preferences, or any significant delay in
      product development or introduction, would have a material adverse effect
      on the Company's results of operations. Due in part to the factors
      described above, the Company is subject to the risk that its inventories
      may rapidly become obsolete or that the Company may carry quantities of
      certain products that exceed current or projected demand. While the
      Company writes-down inventory that it considers to be excessive or
      obsolete, the Company has in the past recorded inventory write-downs in
      excess of available reserves. There can be no assurance that the Company's
      recorded allowances for such write-downs will be adequate in the future,
      and material write-downs could have a material adverse effect on the
      Company's results of operations. In addition, products as complex as those
      offered by the Company may contain undetected errors or defects when first
      introduced or as new versions are released. There can be no assurance that
      despite testing by the Company and by current and potential customers,
      errors will not be found in new products after commencement of commercial
      shipments resulting in a delay in market acceptance or a recall of such
      products.

      MARKET ANTICIPATION OF NEW PRODUCTS, NEW TECHNOLOGIES OR STANDARDS, 
      OR LOWER PRICES

      Since the environment in which the Company operates is characterized by
      rapid new product and technology introductions and generally falling
      prices for existing products, the Company's customers may from time to
      time postpone purchases in anticipation of such new product introductions
      or lower prices. If such anticipated changes are viewed as significant by
      the market, such as the introduction of faster modem technologies, then
      this may have the effect of temporarily slowing overall market demand and
      negatively impacting the Company's operating results. For example, the
      recent industry announcements of modems based on 56Kbps technology may
      have caused such an effect in the first six months of fiscal 1998.
      Moreover, the existence of two competitive implementations of the new
      56Kbps technology, X2 and K56Flex, may have the effect of confusing and
      slowing the market. The existence of two competing protocols may result in
      customers delaying purchases until a single standard emerges.
      Consequently, delays in the market acceptance of new 56Kbps technology
      based 




                                       14
<PAGE>   15

      modems could have a material adverse effect on the Company's business,
      financial condition and results of operation.

      DEPENDENCE ON APPLE MACINTOSH FAMILY OF COMPUTERS; ADVERSE EFFECT 
      OF REDUCED APPLE SALES

      A substantial majority of the Company's sales to date have been derived
      from products designed for use with the Apple Macintosh family of personal
      computers, including the Macintosh desktop series of computers and the
      PowerBook series of portable computers. Therefore, the Company is
      substantially dependent on the sale of Apple Macintosh computers and the
      development and sale of new Apple computers. Due to continued weakness in
      demand for Apple products, expected continuing pricing pressures and new
      product introductions by the Company's competitors, the Company expects
      that revenues from its products for the Apple Macintosh family could
      remain flat or decrease in future periods, which would have a material
      adverse effect on the Company's business and results of operations unless
      the Company can generate sufficient revenues from its PC and other
      products to compensate for any shortfall in revenues from its Apple
      products. The market for personal computers is extremely competitive and
      rapidly changing. There can be no assurance that personal computers
      competing with the Apple Macintosh family of computers will not displace
      the Macintosh products or reduce their growth as such personal computers
      are enhanced in their functionality, evolve to support technologically
      superior applications or otherwise become economically more attractive.

      Apple in the past has experienced difficulty in making the transition
      associated with the development, manufacturing, marketing, and sale of
      certain new computers. In this regard, the Company anticipates that there
      will be ongoing transitions within the Apple product line. These
      transitions will subject the Company to the risks that (i) potential
      customers will defer purchases of current products as a result of, among
      other things, speculation or premature announcements about new products,
      discontinuance of product lines or corporate restructuring; (ii) the
      products will not be successfully received in the marketplace; and (iii)
      Apple will be unable to adequately meet demand for the new products. The
      inability of Apple to successfully develop, manufacture, market, sell or
      make the transition to new products, including, among others, new
      PowerBook products and new desktop computers, would have a material
      adverse effect on the Company's results of operations. In addition, sales
      of the Company's products in the past have been adversely affected by the
      announcement by Apple of new products with the potential to replace
      existing products.

      DEPENDENCE ON RELATIONSHIP WITH APPLE

      The Company relies on its working relationship with Apple, which has
      included and includes collaborative product development, sharing of
      information, product sales to Apple and licensing of Apple technology.
      Apple is not contractually obligated to continue such collaborative
      development or information sharing activities and could discontinue such
      activities at any time. In addition, Apple is not contractually obligated
      to renew its licenses with the Company or purchase the Company's products.
      Apple is collaborating with other vendors of communications products that
      compete with the Company's products, and Apple may elect not to renew its
      licenses with the Company in the future. The Company has, in the past,
      experienced interruptions in the sale of its products to Apple, and there
      is no guarantee these sales will continue. The Company's strategy of
      developing products compatible with the Macintosh family of products is
      substantially dependent on the Company's ability to gain pre-release
      access to, and to develop expertise in, current and future Macintosh
      product developments by Apple. There can be no assurance that Apple will
      continue to cooperate with the Company, and the inability of the Company
      to maintain and further develop its relationship with Apple would have a
      material adverse effect on the Company's results of operations. There can
      be no assurance that Apple will not initiate product repair/recall
      programs in the future for its Macintosh computers, which if it did, would
      have an adverse impact on the revenues of the Company.




                                       15
<PAGE>   16

      COMPETITION

      The market for the Company's products is intensely competitive and
      characterized by rapidly changing technology, evolving industry
      communication standards and frequent new product introductions. A number
      of competitors offer products that compete with one or more of the
      Company's products. Other companies in the personal computer industry,
      such as modem vendors, remote access server vendors, communications
      software vendors, microprocessor and chip set suppliers, networking
      equipment suppliers, fax machine manufacturers, personal computer
      manufacturers, paging companies and telecommunications companies could
      seek to expand their product offerings by designing and selling products
      using competitive technology that could render the Company's products
      obsolete or have a material adverse effect on sales of the Company's
      products.

      Apple currently offers products that compete directly or indirectly with
      the Company's products and can be expected to introduce additional
      competitive products in the future. Apple currently bundles modems and
      communications software with some of its computers, and the Company
      anticipates that Apple will continue to bundle such products in the
      future. In addition, Apple may further enhance communications
      functionality within its desktop or portable computers. Any such
      additional bundling or enhancement by Apple could have a material adverse
      effect on the Company's results of operations.

      Many of the Company's competitors have substantially greater financial,
      technical, sales, marketing and other resources, as well as greater name
      recognition and a larger customer base, than the Company. In addition, the
      market for the Company's products is characterized by significant price
      competition, and the Company expects that it will face increasing pricing
      pressures from its current competitors. Accordingly, there can be no
      assurance that the Company will be able to provide products that compare
      favorably with the products of the Company's competitors or that
      competitive pressures will not require the Company to further reduce its
      prices. Any material reduction in the prices of the Company's products
      would negatively affect gross profit as a percentage of net revenue and
      would require the Company to increase unit sales in order to maintain net
      revenue.

      RELIANCE ON DISTRIBUTORS

      A majority of the Company's net revenue is derived from sales to
      distributors that are not under the direct control of the Company. These
      distributors carry multiple product lines and could reduce their support
      of the Company's products in favor of a competitor's products or for any
      other reason. The loss of any of the Company's major distributors would
      have a material adverse effect on the Company's results of operations.
      Under certain conditions, the Company offers stock balancing and price
      protection programs to its distributors. Therefore, the Company is exposed
      to the risk of product returns and price protection allowances from
      distributors and direct reseller customers. There can be no assurance that
      the Company's recorded allowances for returns will be adequate and a
      material increase in returns over historical rates would have a material
      adverse effect on the Company's results of operations.

      DEPENDENCE ON KEY PERSONNEL

      The Company's future success depends to a significant extent on its senior
      management and other key employees, including key development personnel.
      The loss of the services of any of these individuals or group of
      individuals could have a material adverse effect on the Company's results
      of operations. The Company believes that its future success will depend in
      large part on its abilities to attract and retain additional key
      employees. Competition for such personnel in the computer industry is
      intense, and there can be no assurance that the Company will be successful
      in attracting and retaining such 




                                       16
<PAGE>   17

      personnel. If the Company were to fail to replace or retain its key
      employees or attract additional key employees, the Company's results of
      operations could be materially adversely effected. The Company has no
      employment agreements with any of its key employees.

      INTELLECTUAL PROPERTY AND PROPRIETARY RIGHTS

      The Company relies primarily on a combination of copyright and trademark
      laws, trade secrets, confidentiality procedures and contractual provisions
      to protect its proprietary rights. The Company has no patents or patent
      applications pending. The Company seeks to protect its hardware, software,
      documentation and other written materials under trade secret and copyright
      laws, which afford only limited protection.

      The Company seeks to protect its brand names under trademark and unfair
      competition laws. Despite the Company's efforts to protect its proprietary
      rights, unauthorized parties may attempt to copy aspects of the Company's
      products or to obtain and use information that the Company regards as
      proprietary. Policing unauthorized use of the Company's products is
      difficult, and while the Company is unable to determine the extent to
      which piracy of its software products exists, software piracy can be
      expected to be a persistent problem. In addition, the laws of some foreign
      countries do not protect the Company's proprietary rights to as great an
      extent as do the laws of the United States. There can be no assurances
      that the Company's means of protecting its proprietary rights will be
      adequate or that the company's competitors will not independently develop
      similar technology.

      The Company is aware of products in addition to its own that are marketed
      under the trademarks "PowerPort," "TelePort," "GlobalFax," "Focal Point"
      and "OneWorld." The Company also is aware of a company that operates under
      the name Global Villages and provides computer-related services. There can
      be no assurance that litigation with respect to these trademarks will not
      be instituted by any such parties or by others. If any such litigation
      were successful, the Company could be required to pay damages and cease
      all use of a particular trademark. There can be no assurance that any loss
      of the right to use a trademark would not reduce sales of the Company's
      products. In any event, even if the Company were successful in any such
      litigation, the legal and other costs associated with such litigation
      could be substantial. As is customary in the Company's industry, the
      Company from time to time receives communications from third parties
      asserting that the Company's products infringe, or may infringe, the
      proprietary rights of third parties or seeking indemnification against
      such infringement. There can be no assurance that any such claims would
      not result in protracted and costly litigation.

      VOLATILITY OF STOCK PRICE

      The market price of the Company's Common Stock has been volatile and
      trading volumes have been relatively low. Factors such as variations in
      the Company's revenue, operating results and cash flow and announcements
      of technological innovations or price reductions by the Company, its
      competitors, Apple, PC manufacturers, or providers of alternative products
      could cause the market price of the Company's Common Stock to fluctuate
      substantially. In addition, the stock markets have experienced significant
      price and volume fluctuations that particularly have affected
      technology-based companies and resulted in changes in the market prices of
      the stocks of many companies that have not been directly related to the
      operating performance of those companies. Such broad market fluctuations
      may adversely affect the market price of the Company's Common Stock.



                                       17
<PAGE>   18

      ANTI-TAKEOVER PROVISIONS

      The Company's Board of Director's has the authority to issue up to
      5,000,000 shares of Preferred Stock and to determine the price, rights,
      preferences and privileges of those shares without any further vote or
      action by the stockholders. The rights of the holders of the Company's
      Common Stock will be subject to, and may be adversely affected by, the
      rights of the holders of any Preferred Stock that may be issued in the
      future. While the Company has no present intention to issue shares of
      Preferred Stock, any such issuance could have the effect of making it more
      difficult for a third party to acquire a majority of the outstanding
      voting stock of the Company. In addition, the Company is subject to the
      anti-takeover provisions of Section 203 of the Delaware General
      Corporation Law, which could have the effect of delaying or preventing a
      change of control of the Company. Furthermore, certain provision of the
      Company's Certificate of Incorporation may have the effect of delaying or
      preventing changes in control or management of the Company, which could
      adversely affect the market price of the Company's Common Stock.



                           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.




                                       18
<PAGE>   19

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

      Global Village Communication, Inc. held its annual meeting of Stockholders
      on July 31, 1997. The following matters were approved by the stockholders
      by the votes indicated:

     MATTER:

<TABLE>
<CAPTION>
                                         Total Votes For     Total Votes Withheld
           ELECTION OF DIRECTORS          Each Director       From Each Director
                                          -------------       ------------------
           <S>                               <C>                    <C>    
           Neil Selvin                       13,663,829             781,308
           Leonard A. Lehmann                13,698,933             746,204
           Kevin R. Compton                  13,688,483             756,654
           Eugene Eidenberg                  13,685,988             759,149
           Kenneth A. Goldman                13,691,988             753,149
           Jeremy Jaech                      13,684,038             761,099
</TABLE>

     OTHER MATTERS:

<TABLE>
<CAPTION>
                                                                       Number of Shares
                                                                   ------------------------
                                                                                                  Broker
                                                   For             Against          Abstain      Non-Vote
                                                   ---             -------          -------      --------
      <S>                                       <C>                <C>              <C>           <C>
      To approve an amendment to the
      1991 Stock Option Plan to increase
      the number of shares of Common
      Stock authorized for issuance
      thereunder by 500,000 shares.              12,401,164          1,510,261        118,766      414,946

      To approve an amendment to the
      Employee Stock Purchase Plan to
      increase the number of shares of
      Common Stock authorized for
      issuance thereunder by 100,000
      shares.                                    13,256,448          1,076,336        112,353           --

      To ratify the appointment of KPMG
      Peat Marwick LLP as independent
      auditors of the Company for its
      fiscal year ending March 31, 1998.         14,261,516            109,650         73,971           --
</TABLE>


      ITEM 5.  OTHER INFORMATION

        Not applicable.



                                       19
<PAGE>   20

      ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

            11.1 Computation of Net Income (Loss) Per Share

            27.1 Financial Data Schedule

        (b)  Reports on Form 8-K

            The Company did not file any reports on Form 8-K during the quarter
ended September 30, 1997.


                                   SIGNATURES

      Pursuant to the requirements of the Securities and Exchange Act of 1934,
      the registrant has duly caused this report to be signed on its behalf by
      the undersigned thereunto duly authorized.

                                        Global Village Communication, Inc.



      Date: November 13, 1997            /s/ Neil Selvin
                                         -------------------------------------
                                         President and Chief Executive Officer


      Date: November  13, 1997           /s/ Marc E. Linden
                                         --------------------------------------
                                         Senior Vice President Finance
                                         and Business Development;
                                         Chief Financial Officer



                                       20
<PAGE>   21

                                INDEX TO EXHIBITS


Exhibit
Number              Description
------              -----------

11.1           Computation of Net Income (Loss Per Share

27.1           Financial Data Schedule