<PAGE>   1

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                                 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 JUNE 30, 2000

                                       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 000-31231

                          REPEATER TECHNOLOGIES, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

<TABLE>
<S>                                            <C>
                  DELAWARE                                      77-0535658
       (STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER IDENTIFICATION NO.)
       INCORPORATION OR ORGANIZATION)
</TABLE>

                               1150 MORSE AVENUE
                          SUNNYVALE, CALIFORNIA 94089
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                                 (408) 747-1900
              (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 periods that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                            YES [ ]          NO [X]

     The number of shares of the Registrant's Common Stock outstanding as of
August 31, 2000 was 23,379,025.

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<PAGE>   2

                                     INDEX

<TABLE>
<CAPTION>
                                                                         PAGE
                                                                         ----
<S>        <C>                                                           <C>
                        PART I. FINANCIAL INFORMATION
  Item 1.  Financial Statements (unaudited)............................    1
           Condensed Consolidated Balance Sheets.......................    1
           Condensed Consolidated Statements of Operations.............    2
           Condensed Consolidated Statements of Cash Flows.............    3
           Notes to Consolidated Financial Statements..................    4
  Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations...................................    8
           Risk Factors................................................   13
  Item 3.  Quantitative and Qualitative Disclosures of Market Risk.....   20

                         PART II. OTHER INFORMATION
  Item 1.  Legal Proceedings...........................................   20
  Item 2.  Changes in Securities and Use of Proceeds...................   20
  Item 3.  Defaults Upon Senior Securities.............................   21
  Item 4.  Submission of Matters to a Vote of Security Holders.........   21
  Item 5.  Other Information...........................................   21
  Item 6.  Exhibits and Reports on Form 8-K............................   22
Signatures.............................................................   23
Exhibit Index..........................................................   24
</TABLE>

                                        i
<PAGE>   3

                         PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

                          REPEATER TECHNOLOGIES, INC.

                     CONDENSED CONSOLIDATED BALANCE SHEETS
                (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA )

                                     ASSETS

<TABLE>
<CAPTION>
                                                               JUNE 30,      MARCH 31,
                                                                 2000          2000
                                                              -----------    ---------
                                                              (UNAUDITED)
<S>                                                           <C>            <C>
Current assets:
  Cash and cash equivalents.................................   $  3,156      $  4,823
  Accounts receivable, net of allowance for doubtful
     accounts of $218 and $255 at June 30, 2000 and March
     31, 2000, respectively.................................      4,375         4,383
  Inventories, net..........................................      3,804         3,052
  Other current assets......................................      1,735         1,280
                                                               --------      --------
          Total current assets..............................     13,070        13,538
Service parts, net..........................................        300           330
Property and equipment, net.................................      2,334         2,168
Intangible assets, net......................................         26            29
Other assets................................................        147           152
                                                               --------      --------
          Total assets......................................   $ 15,877      $ 16,217
                                                               ========      ========
                        LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable..........................................   $  4,170      $  4,291
  Accrued compensation......................................        836           574
  Other accrued liabilities.................................      1,011         1,019
  Advances..................................................      3,600            --
  Deferred revenue..........................................         88         1,363
  Current portion of notes payable..........................      1,589         1,232
  Current portion of capital lease obligations..............        418           418
                                                               --------      --------
          Total current liabilities.........................     11,712         8,897
Deferred revenue, net of current portion....................        410           339
Notes payable, net of current portion.......................      2,328         3,078
Capital lease obligations, net of current portion...........        406           507
Convertible subordinated debentures.........................     15,000        15,000
                                                               --------      --------
          Total liabilities.................................     29,856        27,821
                                                               --------      --------
Stockholders' deficit:
  Convertible preferred stock, $0.001 par value; 14,210,077
     shares authorized 9,874,691, issued and outstanding....         10            10
  Common Stock, $0.001 par value; 70,000,000 and 30,000,000
     shares authorized; 3,374,737 and 3,316,309 shares
     issued and outstanding at June 30, 2000 and March 31,
     2000, respectively.....................................          3             3
  Additional paid in capital................................     53,186        54,555
  Unearned stock-based compensation.........................     (7,645)      (10,297)
  Accumulated deficit.......................................    (59,533)      (55,875)
                                                               --------      --------
          Total stockholders' deficit.......................    (13,979)      (11,604)
                                                               --------      --------
          Total liabilities and stockholders' deficit.......   $ 15,877      $ 16,217
                                                               ========      ========
</TABLE>

  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.

                                        1
<PAGE>   4

                          REPEATER TECHNOLOGIES, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                  THREE MONTHS ENDED
                                                              --------------------------
                                                               JUNE 30,       JUNE 25,
                                                                 2000           1999
                                                              -----------    -----------
                                                              (UNAUDITED)    (UNAUDITED)
<S>                                                           <C>            <C>
Net revenues................................................    $ 7,355        $ 3,003
Cost of revenues............................................      5,019          2,203
                                                                -------        -------
Gross profit................................................      2,336            800
                                                                -------        -------
Operating expenses:
  Research and development..................................      2,476          1,062
  Sales and marketing.......................................      2,182          1,322
  General and administrative................................        844            490
                                                                -------        -------
          Total operating expenses..........................      5,502          2,874
                                                                -------        -------
Loss from operations........................................     (3,166)        (2,074)
Other expense, net..........................................       (492)          (245)
                                                                -------        -------
Net loss....................................................    $(3,658)       $(2,319)
                                                                =======        =======
Net loss per common share -- basic and diluted..............    $ (1.36)       $ (0.99)
                                                                =======        =======
Shares used in net loss per common share calculation --basic
  and diluted...............................................      2,696          2,342
                                                                =======        =======
</TABLE>

  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
                                        2
<PAGE>   5

                          REPEATER TECHNOLOGIES, INC.

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED
                                                                --------------------------
                                                                 JUNE 30,       JUNE 25,
                                                                   2000           1999
                                                                -----------    -----------
                                                                (UNAUDITED)    (UNAUDITED)
<S>                                                             <C>            <C>
Cash Flows From Operating Activities:
Net loss....................................................      $(3,658)       $(2,319)
Adjustments to reconcile net loss to net cash used in
  operating activities:
  Depreciation and amortization.............................          287            203
  Provision for losses on accounts receivable...............          (38)            15
  Provision for writedowns on inventories...................           60             22
  Amortization of unearned stock-based compensation.........        1,259            147
  Amortization of debt issuance costs.......................            5             --
  Amortization of debt discount.............................           45             --
  Changes in operating assets and liabilities:
     Accounts receivable....................................           46           (144)
     Inventories............................................         (812)          (179)
     Other current assets...................................           30             (2)
     Other assets...........................................           --            (26)
     Accounts payable.......................................         (121)           (52)
     Accrued compensation...................................          262            (64)
     Other accrued liabilities..............................           (8)            91
     Deferred revenue.......................................       (1,204)            --
                                                                  -------        -------
          Net cash used in operating activities.............       (3,847)        (2,308)
                                                                  -------        -------
Cash Flows Used in Investing Activities:
  Purchase of field service parts...........................          (17)            --
  Purchase of property and equipment........................         (403)            --
                                                                  -------        -------
          Net cash used in investing activities.............         (420)            --
                                                                  -------        -------
Cash Flows From Financing Activities:
  Payments for initial public offering fees.................         (486)            --
  Principal payments on notes payable.......................         (437)           (69)
  Proceeds from borrowings on notes payable.................           --            246
  Payments on capital lease obligations.....................         (101)          (151)
  Proceeds from the advances against series EE convertible
     subordinated debentures................................        3,600             --
  Proceeds from capital lease...............................           --             68
  Net issuances of common stock.............................           24              1
                                                                  -------        -------
          Net cash provided by financing activities.........        2,600             95
                                                                  -------        -------
Net decrease in cash and cash equivalents...................       (1,667)        (2,213)
Cash and cash equivalents at beginning of the period........        4,823         10,358
                                                                  -------        -------
Cash and cash equivalents at end of the period..............      $ 3,156        $ 8,145
                                                                  =======        =======
Supplemental Disclosure of Cash Flow Information:
  Cash paid for interest....................................      $   512        $   332
  Taxes paid................................................      $    --        $     1
Supplemental disclosure of non-cash investing and financing
  activities:
  Equipment purchased under capital lease obligations.......      $    --        $   288
</TABLE>

  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
                                        3
<PAGE>   6

                          REPEATER TECHNOLOGIES, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 JUNE 30, 2000

BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements as
of June 30, 2000 and for the three-month periods ended June 30, 2000 and June
25, 1999 have been prepared by the Company in accordance with the rules and
regulations of the Securities and Exchange Commission. The amounts as of March
31, 2000 have been derived from our annual audited financial statements. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted in accordance with such rules and regulations. In the
opinion of management, the accompanying unaudited financial statements reflect
all adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the financial position of the Company and its results of
operations and cash flows. These financial statements should be read in
conjunction with the annual audited financial statements and notes as of and for
the year ended March 31, 2000, included in the Registration Statement on Form
S-1 (No. 333-31266).

     The results of operations for the three months ended June 30, 2000 are not
necessarily indicative of the results that may be expected for the year ending
March 31, 2001 or any other future interim period, and the Company makes no
representations related thereto.

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS No. 133 established accounting and
reporting standards for derivative instruments including certain derivative
instruments embedded in other contracts (collectively referred to as
derivatives) and for hedging activities. In June 2000, SFAS No. 133 was amended
by SFAS No. 138. The Company has not determined what impact, if any, SFAS No.
133 will have on the operations and financial position of the Company. The
Company will be required to implement SFAS No. 133 as amended by SFAS No. 138,
beginning in 2001. The Company does not currently hold derivative instruments or
engage in hedging activities.

     In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition," which
provides guidance on the recognition, presentation, and disclosure of revenue in
financial statements filed with the SEC. SAB 101 outlines the basic criteria
that must be met to recognize revenue and provides guidance for disclosures
related to revenue recognition policies. The Company adopted the provisions of
SAB 101 in these condensed, consolidated financial statements for all periods
presented.

     In March 2000, the FASB issued FASB Interpretation No. 44 ("FIN 44")
Accounting for Certain Transactions involving Stock Compensation, an
interpretation of APB Opinion No. 25. FIN 44 clarifies the application of
Opinion 25 for (a) the definition of employee for purposes of applying Opinion
25, (b) the criteria for determining whether a plan qualifies as a
non-compensatory plan, (c) the accounting consequence for various modifications
to the terms of a previously fixed stock option or award, and (d) the accounting
for an exchange of stock compensation awards in a business combination. FIN 44
is effective July 1, 2000, but certain conclusions cover specific events that
occur after either December 15, 1998, or January 12, 2000. The Company does not
expect that the adoption of FIN 44 will have a material impact on its financial
position or results of operations.

                                        4
<PAGE>   7
                          REPEATER TECHNOLOGIES, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                 JUNE 30, 2000

CONCENTRATION OF CREDIT RISK

     The Company's cash and cash equivalents are maintained at a major US
financial institution. Deposits in this institution may exceed the amount of
insurance provided on such deposits.

     The Company's customers are providers of wireless communications services.
The Company performs periodic credit evaluations of these customers and
generally does not require collateral for its domestic customers. For
international customers, the Company generally requires letters of credit prior
to shipment. The Company maintains reserves for potential credit losses and such
losses have historically been within management's expectations.

     During the three months ended June 30, 2000, four customers accounted for
approximately 20%, 14%, 11% and 10% of net revenues. As of June 30, 2000, two
customers accounted for approximately 28% and 11% of total receivables. As of
March 31, 2000, three customers accounted for approximately 18%, 16% and 15% of
total receivables.

NET LOSS PER COMMON SHARE

     Basic net loss per share is computed by dividing net loss available to
common stockholders by the weighted average number of vested common shares
outstanding for the period. Diluted net loss per share is computed giving effect
to all dilutive potential common shares, including options, warrants,
convertible subordinated debentures and convertible preferred stock. Options,
warrants, convertible subordinated debentures and convertible preferred stock
were not included in the computation of diluted net loss per share for the
three-month periods ended June 25, 1999 and June 30, 2000 because the effect
would be anti-dilutive. A reconciliation of the numerator and denominator used
in the calculation of historical basic and diluted net loss per share follows
(in thousands, except per share data):

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED
                                                       --------------------------
                                                        JUNE 30,       JUNE 25,
                                                          2000           1999
                                                       -----------    -----------
                                                       (UNAUDITED)    (UNAUDITED)
<S>                                                    <C>            <C>
Numerator:
Net loss.............................................    $(3,658)       $(2,319)
                                                         =======        =======
Denominator:
  Weighted average common shares outstanding.........      3,335          2,408
  Weighted average unvested common shares subject to
     repurchase......................................       (639)           (66)
                                                         -------        -------
Denominator for basic and diluted calculation........      2,696          2,342
                                                         =======        =======
Net loss per common share-basic and diluted..........    $ (1.36)       $ (0.99)
                                                         =======        =======
</TABLE>

                                        5
<PAGE>   8
                          REPEATER TECHNOLOGIES, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                 JUNE 30, 2000

     The following securities have not been included in the computation of
diluted net loss per share as they are anti-dilutive (in thousands):

<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED
                                                      ---------------------------
                                                        JUNE 30,       JUNE 25,
                                                          2000           1999
                                                      ------------    -----------
                                                      (UNAUDITED)     (UNAUDITED)
<S>                                                   <C>             <C>
Convertible preferred stock (after effect of
  anti-dilutive provision)..........................     10,116         10,116
Options outstanding to purchase common stock........      3,915          2,580
Warrants outstanding to purchase common and
  preferred stock...................................      1,184          1,092
Series DD convertible debentures....................      2,727          2,727
Unvested common stock...............................        639             66
                                                         ------         ------
                                                         18,581         16,581
                                                         ======         ======
</TABLE>

BALANCE SHEET COMPONENTS (IN THOUSANDS):

     Inventories consisted of the following:

<TABLE>
<CAPTION>
                                                         JUNE 30,      MARCH 31,
                                                           2000          2000
                                                        -----------    ---------
                                                        (UNAUDITED)
<S>                                                     <C>            <C>
Raw materials.........................................    $ 1,890       $ 2,166
Work in process.......................................        595           489
Finished goods........................................      2,958         1,976
                                                          -------       -------
                                                            5,443         4,631
Less: allowance.......................................     (1,639)       (1,579)
                                                          -------       -------
                                                          $ 3,804       $ 3,052
                                                          =======       =======
Service parts consisted of the following:
Service parts.........................................    $   569       $   551
Less: accumulated depreciation........................       (269)         (221)
                                                          -------       -------
                                                          $   300       $   330
                                                          =======       =======
Property and equipment consisted of the following:
Computer equipment....................................    $ 2,241       $ 2,008
Manufacturing equipment...............................      4,110         3,960
Furniture and fixtures................................        534           514
Leasehold improvements................................         79            79
                                                          -------       -------
                                                            6,964         6,561
Less: accumulated depreciation........................     (4,630)       (4,393)
                                                          -------       -------
                                                          $ 2,334       $ 2,168
                                                          =======       =======
Included as part of the property and equipment
  balances above:
Capital leased equipment..............................    $ 1,106       $ 1,106
Less: Accumulated depreciation........................       (981)         (950)
                                                          -------       -------
                                                          $   125       $   156
                                                          =======       =======
</TABLE>

                                        6
<PAGE>   9
                          REPEATER TECHNOLOGIES, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                 JUNE 30, 2000

     Other current assets consisted of the following:

<TABLE>
<CAPTION>
                                                         JUNE 30,      MARCH 31,
                                                           2000          2000
                                                        -----------    ---------
                                                        (UNAUDITED)
<S>                                                     <C>            <C>
Prepaid expenses......................................    $  163        $  192
Deferred IPO costs....................................     1,572         1,088
                                                          ------        ------
                                                          $1,735        $1,280
                                                          ======        ======
</TABLE>

SUBSEQUENT EVENTS

SERIES EE CONVERTIBLE SUBORDINATED DEBENTURES

     In July 2000, the Company amended its certificate of incorporation to
authorize the issuance of up to 1,500,000 shares of Series EE Convertible
Preferred Stock. The Series EE have the same rights and privileges as Series DD
with the exception that the liquidation preference is $8.00 per share and its
dividend amount is $0.80 per share per annum. Per the amended and restated
certificate of incorporation the Company is authorized to issue 70 million
shares of common stock and 20 million shares of convertible preferred stock.

     In July 2000, the company issued $5.1 million of Series EE convertible
subordinated debentures. These debentures bear interest at 8% and mature in
November 2003. These debentures were convertible into Series EE convertible
preferred stock at any time at the option of the holder at a conversion price
which was the lesser of $8.00 per share or the initial public offering price of
the Company's common stock. In addition, the Company had the right to convert
the debentures into Series EE convertible preferred stock in the event that it
completed a qualified public offering, at which time Series EE convertible
preferred stock would automatically convert into common stock at a conversion
ratio of one for one. These Series EE debentures converted into common stock
upon the closing of the Company's initial public offering. The beneficial
conversion feature associated with the Series EE convertible, subordinated
debentures will be recorded as interest expense in the Company's fiscal quarter
ending September 29, 2000.

     In connection with the issuance of the Series EE convertible debentures,
the Company issued warrants, which after the closing of the Company's initial
public offering, are exercisable to purchase 127,500 shares of common stock at
an exercise price of $8.00 per share. The warrants are fully exercisable and
expire on July 11, 2005. The fair value of the warrant will be recorded as debt
discount in the Company's fiscal quarter ending September 29, 2000 and will be
amortized over the life of the Series EE convertible, subordinated debentures.

INITIAL PUBLIC OFFERING

     In August 2000, the Company completed its initial public offering of
5,462,500 shares of common stock (including 712,500 shares purchased through the
exercise of the underwriters' over-allotment option) at $9.00 per share. Net
proceeds aggregated approximately $42.6 million after paying the underwriters'
fee of approximately $3.4 million and related expenses of approximately $3.1
million. The following change in the Company's capital stock occurred
immediately before or concurrent with the closing of the offering :

     - all issued and outstanding shares of the Company's preferred stock were
       converted into an aggregate of 10,116,319 shares of common stock

     - certain outstanding warrants were exercised, resulting in an issuance of
       1,060,706 shares of common stock

     - $20.1 million of Series DD and Series EE convertible debentures were
       converted into an aggregate of 3,364,763 shares of common stock

                                        7
<PAGE>   10

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

     You should read the following information in conjunction with the
historical financial information and notes thereto included in our Registration
Statement on Form S-1 (File No. 333-31266), which was previously filed with the
Securities and Exchange Commission. Unless otherwise indicated, references to
year ended or year ending, or three months ended or three months ending, refer
to our fiscal year or fiscal three months, respectively.

     This Form 10-Q contains forward-looking statements that relate to future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"intends," "potential" or "continue" or the negative of such terms or other
comparable terminology. These statements are only predictions based on the
information available to us on the date of this document. Although we believe
that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Our actual results could differ materially from those
anticipated in these forward-looking statements.

OVERVIEW

     We develop, market and sell wireless network equipment primarily for
CDMA-based wireless communications networks. We provide cost-effective,
high-quality products for use in suburban and rural areas, urban areas and
inside office buildings and other coverage-limited structures. Our products have
been deployed with over 50 CDMA wireless service providers in twelve countries.

     From our inception in 1983 through our year ended March 31, 1996, we were
primarily focused on providing microwave frequency repeaters for long-distance
telecommunications applications and cellular repeaters for non-CDMA based
wireless communications applications. Starting in our year ended March 31, 1997,
we changed our strategic focus and re-directed our resources to the development
and marketing of repeaters for wireless networks based on the CDMA digital
standard. This wireless standard offered us the opportunity to develop a new
type of repeater, which we call our Network Repeater, that in conjunction with
CDMA base stations, enables wireless service providers to deploy or extend CDMA
wireless networks in non-urban areas at a significantly reduced cost. We shipped
our first Network Repeaters for CDMA wireless networks in May 1997.

     We generated net revenues of $16.9 million in the fiscal year ended March
31, 2000 and $7.4 million in the three months ended June 30, 2000. We incurred
net losses of $15.0 million in the fiscal year ended March 31, 2000 and $3.7
million in the three months ended June 30, 2000. As of June 30, 2000, we had an
accumulated deficit of $59.5 million.

     In November 1999, we acquired substantially all of the assets and assumed
substantially all of the liabilities of The Gwydion Company LLC for a
combination of $0.8 million in cash and 573,334 shares of our common stock. We
accounted for this transaction using the purchase method of accounting. As part
of this acquisition, we have acquired Gwydion's distributed antenna system
project, which is designed to provide in-building coverage via a fiber optic
antenna system. We expect to introduce the final product by November 2000. We
have spent approximately $1.9 million in research and development, excluding
stock-based compensation, from the date of the acquisition through June 30, 2000
in an effort to develop the technology to produce a commercially viable product.
The future research and development expense associated with the acquired
in-process product is estimated to be approximately $0.9 million between July
2000 and November 2000, excluding stock-based compensation.

     The 573,334 shares we issued will be held in escrow for up to 18 months
until certain performance criteria are met. In connection with this contingent
consideration, we recognized a research and development expense of $1.9 million
during the year ended March 31, 2000 and $0.4 million for the three months ended
June 30, 2000 and we had $2.9 million in deferred compensation as of June 30,
2000. Assuming a fair value for our common stock of $9.00 per share, the price
of our shares sold to the public in our initial public offering, and

                                        8
<PAGE>   11

assuming achievement of performance criteria, the compensation expense will be
as follows: $2.6 million for the remainder of the year ending March 30, 2001 and
$0.3 million for the year ending March 31, 2002.

     Since our inception, we have used stock option programs for employees as
compensation to attract strong business and technical talent. Stock-based
compensation consists of the difference between the deemed fair market value of
stock options and the exercise price of these grants. This difference is being
amortized on an accelerated basis over the vesting period of the grants,
generally four years. For the year ended March 31, 2000 and three months ended
June 30, 2000, we recorded $2.5 million and $0.9 million, respectively, of
stock-based compensation expense in connection with options granted to employees
and consultants. During the three months ended June 30, 2000, we granted both
incentive and nonstatutory stock options and we have recorded $0.7 million in
unearned stock-based compensation in relation to these grants. The balance in
unearned stock-based compensation of $4.8 million as of June 30, 2000 will be
amortized over the vesting period of the grants.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND JUNE 25, 1999

     The following table sets forth our results of operations as a percentage of
net revenues for the periods indicated:

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED
                                                       --------------------------
                                                        JUNE 30,       JUNE 25,
                                                          2000           1999
                                                       -----------    -----------
                                                       (UNAUDITED)    (UNAUDITED)
<S>                                                    <C>            <C>
Net revenues.........................................     100.0%         100.0%
Cost of revenues.....................................      68.2           73.4
                                                          -----          -----
Gross margin.........................................      31.8           26.6
                                                          -----          -----
Operating expenses:
  Research and development...........................      33.6           35.4
  Sales and marketing................................      29.7           44.0
  General and administrative.........................      11.5           16.3
                                                          -----          -----
Total operating expenses.............................      74.8           95.7
                                                          -----          -----
Loss from operations.................................     (43.0)         (69.1)
Other expense, net...................................      (6.7)          (8.1)
                                                          -----          -----
Net loss.............................................     (49.7)%        (77.2)%
                                                          =====          =====
</TABLE>

     Net revenues: Our net revenues are derived primarily from our Network
Repeaters based on the CDMA standard as well as complementary equipment for
these products. We also provide training, installation support, design and
implementation services to our customers on a fee for service basis. Net
revenues increased $4.4 million, or 144.9%, from $3.0 million for the three
months ended June 25, 1999 to $7.4 million for the three months ended June 30,
2000. This increase was primarily due to increased shipments of our CDMA-based
repeaters to new and existing customers. During the three months ended June 30,
2000, 83.4% of our net revenues were derived from ten customers, with sales to
four customers, Comsyst Pty. Limited, Independent Wireless One, Inc., Northern
PCS and Virginia PCS, comprising approximately 20.4%, 14.3%, 10.6% and 10.2%,
respectively. During the three months ended June 25, 1999, 80.4% of our net
revenues were derived from ten customers, with sales to one customer, Primeco,
comprising approximately 33.1%. International sales accounted for 40.9% of net
revenues during the three months ended June 30, 2000 as compared to 13.2% during
the three months ended June 25, 1999.

     We have experienced downward pressure on our selling prices as a result of
our entering into volume sale agreements with some customers and from general
competitive pressures. We expect that our selling prices will continue to
decline for the foreseeable future. In addition, if we cannot offset declines in
selling prices by an increase in the number of units sold, our revenues may
decline.

     Cost of revenues and gross margin: Cost of revenues increased $2.8 million,
or 127.8%, from $2.2 million for the three months ended June 25, 1999 to $5.0
million for the three months ended June 30, 2000. The gross profit margin
improved to 31.8% for the three months ended June 30, 2000 from 26.6% for the
three months

                                        9
<PAGE>   12

ended June 25, 1999. Of this 5.2% improvement in gross profit margin, an
increase of approximately 19.1% was attributable to more efficient absorption of
other cost of revenue and a decrease of 13.9% was primarily attributable to a
decrease in direct material margins, as the average selling prices of our
products declined while the cost of our products remained unchanged. The other
costs of revenue, which consists of manufacturing overhead and customer service
expenditures, increased from $1.0 million for the three months ended June 25,
1999 to $1.1 million for the three months ended June 30, 2000 primarily due to
the increase in stock-based compensation.

     Research and development: Research and development expenses increased $1.4
million, or 132.9%, from $1.1 million for the three months ended June 25, 1999
to $2.5 million for the three months ended June 30, 2000. This increase was due
to the following factors: (i) amortization of $0.3 million of stock-based
compensation derived from grants of incentive stock options below the deemed
fair market value, (ii) amortization of $0.4 million of stock-based compensation
attributable to the acquisition of Gwydion, (iii) $0.5 million of increased
product development expenditures for our in-building products and (iv) an
increase in prototype material spending for our Network Repeaters of $0.2
million. We expect our research and product development expenses to increase as
we continue to develop our technology and broaden our product line to serve new
markets and applications. In particular, we expect to incur significant expenses
in the development of our next generation of products to serve the emerging
high-speed wireless markets.

     Sales and marketing: Sales and marketing expenses increased $0.9 million,
or 65.1%, from $1.3 million for the three months ended June 25, 1999 to $2.2
million for the three months ended June 30, 2000. This increase was due to
increased advertising expenditures of $0.1 million, increased sales commissions
and bonuses of $0.2 million, as well as increased labor and overhead costs of
$0.6 million due to hiring of additional sales and marketing personnel. We
expect that our sales and marketing expenses will continue to increase as we
plan to add personnel to support our sales efforts in domestic and international
markets. We also plan on increasing our expenditures on advertising and other
marketing programs for promoting and selling our products, including our new
products for in-building coverage.

     General and administrative: General and administrative expenses consist
primarily of expenses for finance, corporate management, general office
administration, insurance, legal, accounting, amortization of goodwill,
amortization of stock-based compensation and other professional fees. General
and administrative expenses increased $0.3 million, or 72.2%, from $0.5 million
for the three months ended June 25, 1999 to $0.8 million for the three months
ended June 30, 2000. Of this increase, $0.2 million was attributable to the
amortization of stock-based compensation and the balance was due to an increase
in professional fees. We expect that general and administrative expenses will
increase as our business grows and we expand our staff, increase our
infrastructure and incur costs associated with being a public company.

     Other income (expense): Other income was $0.1 million and $0.05 million for
the three-month periods ended June 25, 1999 and June 30, 2000, respectively.
Other expenses increased $0.2 million from $0.3 million for the three months
ended June 25, 1999 to $0.5 million for the three months ended June 30, 2000.
This increase was due to interest expense related to additional term debt
incurred July and September of 1999. After the closing of our initial public
offering, until such capital is deployed in our business, we expect that
interest income will increase due to higher balances in our interest-bearing
accounts and that interest expense will decline as a result of the conversion of
our convertible subordinated debentures into shares of common stock.

LIQUIDITY AND CAPITAL RESOURCES

     At June 30, 2000 we had $3.2 million in cash and cash equivalents. Cash
used in operating activities for the three months ended June 30, 2000 was $3.8
million, as compared to $2.3 million for the three months ended June 25, 1999.
The significant use of cash in operating activities during the three months
ended June 30, 2000 resulted from our net losses of $3.7 million, increase in
net inventories of $0.8 million offset by non-cash depreciation and amortization
expenses of $0.3 million and inventory provisions of $0.1 million, a decrease in
deferred revenues of $1.2 million offset by non-cash expenses of $1.3 million
for stock-based compensation, an increase in accrued compensation of $0.3
million offset by a decrease in accounts payable of

                                       10
<PAGE>   13

$0.1 million. We plan to increase our operating expenses to support our
anticipated growth and we anticipate that this increase in operating expenses
will be a material use of our cash during the remainder of the year ending March
2001.

     Cash used for investing activities of $0.4 million and for the three months
ended June 30, 2000, was primarily used for capital expenditures. These capital
expenditures were primarily investments in computerized test equipment to test
our products and additional computer equipment to support our business. Although
we had no material commitments for capital expenditures as of June 30, 2000, we
anticipate continuing increases in our capital expenditures during the remainder
of the year ending March 2001.

     Net cash provided from financing activities was $2.6 million for the three
months ended June 30, 2000, and $0.1 million for the three months ended June 29,
1999. In June 2000, we received $3.6 million as an advance against the Series EE
convertible subordinated debentures that were issued in July 2000.

     On July 11, 2000, the Company issued $5,100,000 of Series EE convertible
subordinated debentures, convertible into shares of Series EE convertible
preferred stock at the lesser of $8.00 per share, or the offering price of the
Company's initial public offering of the Company's common stock, and warrants to
purchase the number of shares of our Series EE convertible preferred stock equal
to $1,020,000 divided by the conversion price, at an exercise price of $8.00 per
share. The Series EE convertible subordinated debentures were convertible into
Series EE convertible preferred stock at any time prior to the maturity date at
the option of the holder. In addition, the Company had the right to convert the
debentures into fully paid and non-assessable shares of Series EE convertible
preferred stock in the event that it completed a qualified public offering, at
which time Series EE convertible preferred stock would automatically convert
into common stock. The Series EE convertible subordinated debentures bore
interest at an annual rate of 8.0%, payable quarterly, and had a maturity date
of November 25, 2003. The warrants expire on July 11, 2005. These Series EE
convertible subordinated debentures were converted into common stock upon the
closing of our initial public offering on August 14, 2000. The beneficial
conversion feature associated with the Series EE convertible, subordinated
debentures will be recorded as interest expense in the Company's fiscal quarter
ending September 29, 2000. The fair value of the warrant will be recorded as
debt discount in the Company's fiscal quarter ending September 29, 2000 and will
be amortized over the life of the Series EE convertible, subordinated
debentures.

     In August 2000 we completed the initial public offering of our common stock
pursuant to our Registration Statement on Form S-1 (File No. 333-31266) as filed
with the Securities and Exchange Commission on February 28, 2000, as amended,
and sold 5,462,500 shares of our common stock to the public, including 712,500
shares issued pursuant to the underwriters' over-allotment option, at $9.00 per
share. The aggregate gross proceeds from the sale were approximately $49.1
million. In connection with our initial public offering, we paid $3.4 million in
underwriters' discounts and $3.1 million in other costs. The costs associated
with this offering include the Nasdaq National Market listing fee, printing and
engraving, legal, accounting, travel and other related expenses. Net proceeds
from the offering were approximately $42.6 million and were invested in high
quality short-term investments. U.S. Bancorp Piper Jaffray and Bank of America
Securities LLC were the managing underwriters of the initial public offering of
our common stock.

     We believe that our available cash reserves, combined with the net proceeds
of the Series EE convertible, subordinated debentures and the initial public
offering of our common stock, will be sufficient to fund operations and to meet
our working capital needs and anticipated capital expenditures for the next
twelve to eighteen months. We currently intend to use a portion of the net
proceeds from our initial public offering of our common stock for expansion of
sales, marketing and future development of our products. We may also use a
portion of the net proceeds from the initial public offering of our common stock
to invest in complementary products, to license other technology or to make
potential acquisitions. Thereafter, we may need additional funds for more rapid
expansion of our business, unexpected expenditures or operating losses,
responding to competitive pressures, developing new products and enhancements to
our current products, or acquiring technologies or businesses. If we raise
additional funds through the issuance of equity securities, the percentage
ownership of our stockholders will be reduced, stockholders may experience
additional dilution, or such equity securities may have rights, preferences or
privileges senior to those of the holders of our common

                                       11
<PAGE>   14

stock. If we raise additional funds through the issuance of debt securities,
those securities would have rights, preferences and privileges senior to those
of holders of our common stock, and the terms of these debt securities could
impose restrictions on our operations. Additional financing may not be available
when needed, on favorable terms, or at all.

RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS No. 133 established accounting and
reporting standards for derivative instruments including certain derivative
instruments embedded in other contracts (collectively referred to as
derivatives) and for hedging activities. In June 2000, SFAS No. 133 was amended
by SFAS No. 138. The Company has not determined what impact, if any, SFAS No.
133 will have on the operations and financial position of the Company. The
Company will be required to implement SFAS No. 133 as amended by SFAS No. 138,
beginning in 2001. The Company does not currently hold derivative instruments or
engage in hedging activities.

     In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition," which
provides guidance on the recognition, presentation, and disclosure of revenue in
financial statements filed with the SEC. SAB 101 outlines the basic criteria
that must be met to recognize revenue and provides guidance for disclosures
related to revenue recognition policies. The Company adopted the provisions of
SAB 101 in these condensed, consolidated financial statements for all periods
presented.

     In March 2000, the FASB issued FASB Interpretation No. 44 ("FIN 44")
Accounting for Certain Transactions involving Stock Compensation, an
interpretation of APB Opinion No. 25. FIN 44 clarifies the application of
Opinion 25 for (a) the definition of employee for purposes of applying Opinion
25, (b) the criteria for determining whether a plan qualifies as a
non-compensatory plan, (c) the accounting consequence for various modifications
to the terms of a previously fixed stock option or award, and (d) the accounting
for an exchange of stock compensation awards in a business combination. FIN 44
is effective July 1, 2000, but certain conclusions cover specific events that
occur after either December 15, 1998, or January 12, 2000. The Company does not
expect that the adoption of FIN 44 will have a material impact on its financial
position or results of operations.

                                       12
<PAGE>   15

                                  RISK FACTORS

     In addition to other information provided in this report, investors
evaluating our company should carefully consider the following risk factors as
well as the risk factors included in our Registration Statement on Form S-1
(File No. 333-31266) filed with the Securities and Exchange Commission.

WE HAVE INCURRED SIGNIFICANT LOSSES SINCE WE BEGAN DOING BUSINESS, ANTICIPATE
CONTINUING LOSSES, AND MAY NEVER ACHIEVE OR SUSTAIN PROFITABILITY.

     We have accumulated losses of $59.5 million since we began doing business
in 1983 through June 30, 2000, and we may never achieve or sustain
profitability. We incurred a net loss of $15.0 million for the fiscal year ended
March 31, 2000, and a net loss of $3.7 million for the three months ended June
30, 2000. We will continue to incur significant expenses, particularly research
and product development and sales and marketing expenses, and we expect our
expenses to increase as compared to prior periods. We anticipate incurring net
losses at least through the fiscal year ending March 2001. We will need to
generate significantly higher revenues to achieve profitability and recoup our
accumulated losses. We cannot be certain that we will realize sufficient
revenues to sustain our business.

WE HAVE DEPLOYED A LIMITED NUMBER OF REPEATERHYBRID NETWORKS AND WE MAY NOT BE
ABLE TO GAIN BROAD MARKET ACCEPTANCE OF THE REPEATERHYBRID NETWORK CONCEPT.

     Our RepeaterHybrid networks have yet to gain widespread industry acceptance
and we have deployed them with only a limited number of wireless service
providers. Through June 30, 2000, only 30 of our RepeaterHybrid Networks have
been deployed by 18 wireless service providers. If we fail to significantly
increase the deployment and market acceptance of our products and RepeaterHybrid
Networks as replacements for traditional networks using only base stations, we
may fail to generate sufficient revenues to sustain our business.

OUR QUARTERLY REVENUES AND OPERATING RESULTS MAY FLUCTUATE SIGNIFICANTLY.

     Our quarterly operating results have fluctuated significantly in the past
and are likely to do so in the future. Factors that could cause our quarterly
results to fluctuate include, but are not limited to:

     - any delay in our introduction of new products or product enhancements
       particularly our new products for use in 3G networks and new products for
       in-building use;

     - the concentration of customer orders at the end of a quarter which can
       result in products shipping in the following quarter due to capacity
       constraints faced by our contract manufacturers;

     - the reduction in the selling price of our products due to competitive
       pressures from base station manufacturers and the introduction of other
       competing repeater products; and

     - customer responses to announcements of new products and product
       enhancements by competitors and the entry of new competitors into our
       markets.

     If our operating results do not meet the expectations of securities
analysts and investors, our stock price is likely to decline.

OUR LENGTHY AND VARIABLE SALES CYCLE MAKES IT DIFFICULT FOR US TO PREDICT IF AND
WHEN A SALE WILL BE MADE AND COULD LEAD TO OPERATING DIFFICULTIES AND CASH FLOW
PROBLEMS.

     Our sales cycle, which is the period from the generation of a sales lead
until the recognition of revenues, ranges from nine to 24 months, making it
difficult to forecast revenues and operating results. Our inability to
accurately predict the timing and magnitude of sales of our products and
services could cause a number of problems including, but not limited to:

     - we may have difficulty meeting our customers' product delivery
       requirements in the event many orders are received in a short period of
       time;

                                       13
<PAGE>   16

     - we may expend significant management efforts and incur substantial sales
       and marketing expenses in a particular period that do not translate into
       orders during that period, or at all; and

     - we may have difficulty meeting our cash flow requirements and obtaining
       credit because of delays in receiving orders.

     The problems resulting from our lengthy and variable sales cycle could
impede our growth, cause fluctuations in our operating results and restrict our
ability to take advantage of new opportunities.

CERTAIN EXISTING CONTRACTS MAY NOT RESULT IN REVENUES AS LARGE AS PREVIOUSLY
DISCLOSED.

     In the past, we publicly announced the signing of certain contracts or
purchase orders from major customers and their expected value or sales volume
for us. However, these contracts typically require no minimum purchase
commitment and the purchase orders are typically subject to cancellation. To
date, we have not achieved the expected values or sales volume publicly
disclosed. Furthermore, we may never achieve the expected values or sales volume
publicly disclosed. While we continue to internally estimate specific customer
sales volumes for business planning purposes, none of our prior publicly
disclosed estimates should be regarded as purchase commitments or indicative of
our current estimates or expectations.

A SMALL NUMBER OF CUSTOMERS ACCOUNT FOR A SUBSTANTIAL PORTION OF OUR REVENUES
AND THE LOSS OF ANY OF THESE CUSTOMERS COULD HARM OUR BUSINESS.

     Our customer base has been and may continue to be concentrated with a small
number of customers. The loss of any of these customers, or the delay, reduction
or cancellation of orders by or shipments to any of these customers could hurt
our results and cause a decline in our stock price. In the fiscal year ended
March 31, 2000, ten customers accounted for 69.7% of our net revenues, with
PrimeCo, Wireless Facilities, Inc. and Clearnet PCS, accounting for 13.6%, 12.4%
and 10.2%, respectively. During the three months ended June 30, 2000, 83.4% of
our net revenues were derived from ten customers with sales to four customers,
Comsyst, Independent Wireless One, Inc., Northern PCS and Virginia PCS,
comprising 20.4%, 14.3%, 10.6% and 10.2%, respectively. When our products have
been fully deployed in a customer's network or a customer's demands are
otherwise satisfied, we must replace that customer's sales with those of new
customers in order to maintain our sales volume.

     We do not have any long-term contracts with any of our customers. Our
contracts generally do not contain minimum purchase requirements and are
terminable at any time. We expect to continue to depend on a small number of
customers for a substantial portion of our revenues.

     In addition, we face increased credit risks, including slow payments or
non-payments, due to the concentration of our customer base. In March 1999, we
increased our allowance for doubtful accounts by $0.7 million due to the
bankruptcy of a customer.

IF WE ARE UNABLE TO OBTAIN OR MAINTAIN VENDOR QUALIFICATION WITH NATIONWIDE
WIRELESS NETWORK OPERATORS, OUR ABILITY TO SELL OUR PRODUCTS WOULD BE IMPAIRED
AND OUR REVENUES WOULD LIKELY DECLINE.

     Many of our current and potential customers are large major network
operators or affiliates of nationwide wireless network operators. In order to
sell our products to these affiliates, our products must be authorized for
purchase by the network operator. This authorization process is both costly and
lengthy. If we do not maintain our status as a qualified vendor or supplier, we
will be unable to sell our products to these network operators and their
affiliates, and our revenues will likely decline.

COMPETITION FROM LARGER, MORE ESTABLISHED COMPANIES WITH GREATER RESOURCES COULD
LEAD TO PRICE REDUCTIONS, LOSS OF REVENUES AND MARKET SHARE AND COULD PREVENT US
FROM ACHIEVING PROFITABILITY.

     The market for base stations, repeaters and related products is highly
competitive. We compete with large infrastructure manufacturers, systems
integrators, repeater manufacturers and base station subsystem suppliers, as
well as new market entrants. Most of our current and potential competitors have
longer operating histories, larger installed customer bases, substantially
greater name recognition and more financial, technical,
                                       14
<PAGE>   17

manufacturing, marketing, sales, distribution and other resources than we do. We
may not be able to compete successfully against current and future competitors,
including companies that develop and market new wireless telecommunications
products and services. If we are forced to reduce the prices of our products and
we are unable to offset the price reductions by increasing our sales volumes,
introducing new products with higher prices or reducing manufacturing costs, our
revenues or gross margins will decline. These competitive pressures may also
result in longer sales cycles and loss of customers.

OUR DEPENDENCE ON A LIMITED NUMBER OF CONTRACT MANUFACTURERS FOR MOST OF OUR
PRODUCTS MAY DIMINISH OUR ABILITY TO CONTROL THE QUALITY AND TIMING OF DELIVERY
OF OUR PRODUCTS.

     We have recently transitioned the manufacture of our products from in-house
to three third-party contract manufacturers. There are risks associated with our
dependence on contract manufacturers, including the contract manufacturers'
control of capacity allocation, labor relations, production quality and other
aspects of the manufacturing process. If our contract manufacturers encounter
any of these problems, our manufacturing processes will be adversely affected
and we may lose customers.

     Any one of our repeater products is generally produced by only one of our
contract manufacturers. We do not have long-term supply contracts with our
contract manufacturers, and they are not obligated to supply us with products
for any specific period, in any specific quantity or at any specific price,
except as may be provided in a particular purchase order. If we are unable to
obtain our products from our contract manufacturers on schedule, revenues from
the sale of those products may be delayed or lost, and our reputation,
relationships with customers and our business could be harmed. In addition, if
we must replace one of our contract manufacturers, we could incur significant
expenses and experience substantial disruption to our business.

OUR CONTRACT MANUFACTURERS' RELIANCE ON A LIMITED NUMBER OF COMPONENT SUPPLIERS
COULD LEAD TO DELAYS, ADDITIONAL COSTS, PROBLEMS WITH OUR CUSTOMERS AND
POTENTIAL CUSTOMERS AND LOSS OF REVENUES.

     Our contract manufacturers currently utilize one or a small number of
suppliers for each of the components of our products. In particular, there is
currently only one supplier of high power amplifiers, a critical component for a
Network Repeater, that meets our quality standards. Our contract manufacturers
have no long-term contracts or arrangements with the suppliers of components for
our products that guarantee the availability of these components. If for any
reason a supplier fails to meet quality or quantity requirements, or stops
selling components at commercially reasonable prices, or if a competitor enters
into an exclusive relationship with one of our suppliers, we could experience
significant production delays or cost increases.

     From time to time, our contract manufacturers may be required to replace
some of the components of our products when the supplier of a particular
component discontinues production. While we do not generally maintain an
inventory of components, we may purchase a quantity of these discontinued
components to supply to our contract manufacturers until new suppliers or
substitute components can be found. We face the risk that we may deplete this
inventory of discontinued components before finding adequate substitutes, which
could cause the loss of significant sales opportunities. Alternatively, we may
be left with surplus quantities of these components, which could cause us to
incur charges for excess inventory. We cannot guarantee that alternative sources
of components can be secured on short notice or that components will be
available from alternative sources on satisfactory terms. Any of these problems
could damage relationships with current or prospective customers, seriously harm
our operating results and revenues in a given period and impair our ability to
generate future sales.

DUE TO UNCERTAINTIES IN PRODUCTION FORECASTING, WE MAY EXPERIENCE UNEXPECTED
SURPLUSES OR SHORTAGES OF INVENTORY.

     Our contracts with manufacturers require us to provide a rolling six-month
forecast for production each month. The forecast for the first two months of the
six-month forecast are considered firm purchase orders. If we fail to accurately
predict our customers' demand for our products, we may be subject to shortages
of certain products and surpluses of other products. If we fail to have an
adequate supply of inventory for our products,

                                       15
<PAGE>   18

we may be subject to cancellation of orders from our customers for these
products. In addition, if we have a surplus of certain products, we may incur
charges for excess or obsolete inventory.

     Some of the components of our products may have lead times of as long as 12
to 20 weeks from the date a purchase order is placed with the supplier to the
date the components are delivered to our contract manufacturers. In order to
ensure an adequate supply of these components, we may be required to purchase
the components ourselves and then resell them to our contract manufacturers to
meet our forecasted requirements. If we fail to accurately predict the demand
for these components, we may face shortages and potentially lose sales, or
alternatively incur charges for excess or obsolete inventory.

OUR INABILITY TO PROVIDE LONG-TERM EQUIPMENT FINANCING FOR OUR CUSTOMERS IS A
COMPETITIVE DISADVANTAGE AND COULD RESULT IN A LOSS OF SALES.

     Many of our current and potential customers require equipment financing to
purchase our products. We do not offer long-term equipment financing to our
customers. If we cannot assist in arranging long-term equipment financing for
our customers, we may lose sales and customers to competitors that provide such
financing. Additionally, if we decide to provide our customers with long-term
equipment financing in the future, we could face credit risks, including slow
payments or non-payments from customers.

WE PLAN TO EXPAND FURTHER INTO INTERNATIONAL MARKETS, WHICH WILL SUBJECT US TO
ADDITIONAL BUSINESS RISKS.

     A significant portion of our sales efforts has been and will continue to be
targeted to international service providers in Australia, Canada, Mexico, South
America and Asia. Conducting business in these areas subjects us to a number of
risks and uncertainties, including:

     - inadequate protection of intellectual property in foreign countries;

     - increased difficulty in collecting accounts;

     - delays and expenses associated with tariffs and other trade barriers;

     - difficulties and costs associated with complying with a wide variety of
       complex foreign laws and treaties;

     - currency fluctuations, including a decrease in the value of foreign
       currencies relative to the U.S. dollar which could make our products less
       competitive against those of foreign competitors; and

     - political and economic instability.

     Any of the factors described above could impair our ability to continue
expanding into international markets and could prevent us from increasing our
revenues and achieving profitability. We expect to establish contract
manufacturing operations in China and Brazil during our fiscal year ending March
2001 which could further subject us to the risks described above, particularly
the difficulty of protecting intellectual property rights.

WE HAVE DEVELOPED A PRODUCT LINE PRIMARILY BASED ON THE CDMA STANDARD AND WE MAY
NOT SUCCEED IF CDMA IS NOT WIDELY ACCEPTED.

     We have concentrated our efforts on the development and sale of products
specific to CDMA technology. CDMA is the newest wireless communications
technology standard and has yet to achieve the market penetration of other more
established digital standards, including TDMA and GSM. There are currently a
limited number of wireless service providers utilizing CDMA-based equipment.
These service providers are concentrated in North America, South America and
Asia. If CDMA technology is not widely accepted by wireless service providers,
the demand for our products will not be as large as we are anticipating. A
decline in demand for our current products could have a significant negative
impact on our results of operations. In addition, a decline in demand may
require us to develop new products compatible with other wireless technology
standards, which would cause us to experience significant production delays and
cost increases with no assurance of new product acceptance.

                                       16
<PAGE>   19

BECAUSE OUR PRODUCTS ARE DEPLOYED IN COMPLEX NETWORKS, THEY MAY HAVE ERRORS OR
DEFECTS THAT WE FIND ONLY AFTER DEPLOYMENT, WHICH IF NOT REMEDIED, COULD HARM
OUR BUSINESS.

     Our products are highly complex, designed to be deployed in complicated
networks and may contain undetected defects, errors or failures. Although our
products are tested during manufacturing prior to deployment, they can only be
fully tested when deployed in commercial networks. Consequently, our customers
may discover errors after the products have been deployed. The occurrence of any
defects, errors or failures could result in installation delays, product
returns, diversion of our resources, increased service and warranty costs, legal
actions by our customers, increased insurance costs and other losses to us or to
our customers or end users. Any of these occurrences could also result in the
loss of or delay in market acceptance of our products, which would harm our
business and adversely affect our operating results and financial condition.

WE ARE DEPENDENT ON LICENSED TECHNOLOGY FOR OUR PRODUCTS.

     The receive diversity technology contained in our products is licensed from
one of our executive officers. The license agreement requires the timely payment
of royalties in the form of cash and shares of our common stock. These royalty
payments are non-refundable. Failure to honor the terms of the license agreement
could adversely affect our business.

IF WE ARE UNABLE TO PROTECT AND ENFORCE OUR INTELLECTUAL PROPERTY RIGHTS, WE MAY
BE UNABLE TO COMPETE EFFECTIVELY.

     We regard substantial elements of our products, such as receive diversity
technology, component design specifications, network management software and
network component optimization techniques, as proprietary and attempt to protect
them by relying on patent, trademark, service mark, copyright and trade secret
laws. We also rely on confidentiality procedures and contractual provisions with
our employees, consultants, vendors and licensees to protect our intellectual
property. Despite these efforts, we may be unable to prevent third parties from
infringing upon or misappropriating our intellectual property, which could harm
our business.

     As of June 30, 2000, we had three patents granted and two patent
applications pending. It is possible that no patents will be issued from these
two pending applications or from future patent applications. Moreover, our
currently issued patents and any patents issued in the future may not provide us
with any competitive advantages over, or may be challenged by, third parties.

     Effective patent, trademark, service mark, copyright and trade secret
protection may not be available in some countries in which our products are
distributed, particularly countries within South America and Asia. Furthermore,
our competitors may independently develop similar technologies that limit the
value of our intellectual property or design around patents issued to us.

BECAUSE LEGAL STANDARDS RELATING TO THE PROTECTION OF INTELLECTUAL PROPERTY
RIGHTS RELATED TO THE TELECOMMUNICATIONS INDUSTRY ARE UNCERTAIN AND EVOLVING, WE
MAY BE SUBJECT TO INTELLECTUAL PROPERTY RIGHTS DISPUTES, CAUSING US TO INCUR
SIGNIFICANT COSTS, DIVERTING THE TIME AND ATTENTION OF OUR MANAGEMENT AND
PREVENTING US FROM SELLING OUR PRODUCTS.

     Due to the competitive nature of the telecommunications industry,
particularly as it relates to CDMA-based technology, any competitive advantage
we may have relies heavily upon protection of our intellectual property rights.
Because the legal standards relating to the validity, enforceability and scope
of protection of intellectual property rights in our industry are uncertain and
evolving, in the future, we may be a party to litigation concerning the
intellectual property incorporated in our products. These lawsuits, regardless
of their

                                       17
<PAGE>   20

outcome, would be time-consuming and expensive to resolve and would divert
management time and attention. Any potential intellectual property litigation
also could force us to do one or more of the following:

     - stop selling, incorporating or using our products that use the challenged
       intellectual property;

     - obtain from the owner of the infringed intellectual property right a
       license to sell or use the relevant technology, which license may not be
       available on reasonable terms, or at all; or

     - redesign those products that use the challenged technology.

     If we are forced to take any of these actions, our business may be harmed.
Our insurance may not cover potential claims of this type or may not be adequate
to indemnify us for all liability that may be imposed.

A SIGNIFICANT DECREASE IN THE COST OF BASE STATIONS AND THEIR COMMUNICATION
LINKS WOULD DIMINISH ONE OF OUR COMPETITIVE ADVANTAGES.

     Unlike our repeater products, current base stations require an expensive
communications link, usually through a high capacity digital telephone
connection, to the network. In addition, base stations themselves are typically
larger and more expensive than repeaters. A decrease in the cost of base
stations and the communication links used to connect base stations to the local
telephone network, especially in less populated areas, will diminish a cost
saving that our customers experience from using our product. If the cost of base
stations and their communication links decline, demand for our products may
decrease and we may have to lower our product prices or experience a decline in
orders. Either one of these results could cause decreased revenues and margins.

DELAYS IN NEW PRODUCT DEVELOPMENT PROJECTS COULD HARM OUR BUSINESS.

     The market for our products is subject to competition from other repeater
manufacturers and base station manufacturers. As a result, we must continue to
develop new products and enhancements to our existing products to remain
competitive. In particular, we must develop and bring to market our in-building
coverage products and our products designed to address third generation or 3G
wireless networks. If we do not successfully develop new products and
enhancements in a timely manner, we may lose market acceptance of our products
and be unable to compete effectively with new competitive products, which could
harm our business.

IF WE FAIL TO MANAGE OUR GROWTH EFFECTIVELY, OUR BUSINESS AND PROSPECTS COULD BE
SERIOUSLY HARMED.

     The challenge of managing our growth will place a significant strain on our
planning and management capabilities. To manage our expected growth of
operations and personnel, we will need to:

     - improve financial and operational controls, as well as our reporting
       systems and procedures;

     - install new management information systems; and

     - hire, train, motivate and manage our sales and marketing, engineering,
       technical, finance and customer service employees.

     If we cannot effectively hire and manage new employees or monitor, manage
and control expanded operations, our business and prospects could be seriously
harmed.

IF WE LOSE KEY ENGINEERING PERSONNEL OR ARE UNABLE TO HIRE ADDITIONAL QUALIFIED
ENGINEERING PERSONNEL, WE MAY NOT BE SUCCESSFUL.

     Our future success largely depends on our ability to attract and retain
qualified engineering personnel. The market for qualified engineering personnel
in the telecommunications industry is highly competitive and if we cannot
attract and retain these personnel, it would significantly limit our ability to
compete and to grow our business.

                                       18
<PAGE>   21

WE HAVE ENGAGED IN ACQUISITIONS AND MAY ENGAGE IN FUTURE ACQUISITIONS THAT MAY
SUBJECT US TO VARIOUS OPERATIONAL AND FINANCIAL RISKS.

     We have in the past and expect in the future to acquire other businesses or
technologies that complement our products, expand the breadth of our product
offerings, enhance our technical capabilities, help secure critical sources of
supply, or that may otherwise offer growth opportunities. In connection with
acquisitions, we may incur operational and financial risks, including:

     - difficulties in combining operations, personnel, technologies or
       products;

     - unanticipated costs;

     - risks associated with entering markets in which we have no or limited
       prior experience;

     - diversion of management's attention from our core business;

     - adverse effects on existing business relationships with suppliers and
       customers;

     - issuing stock that would dilute our current stockholders' percentage
       ownership;

     - incurring debt; and

     - assumption of liabilities.

A NUMBER OF SHARES ARE OR WILL BE ELIGIBLE FOR FUTURE SALE WHICH MAY DEPRESS OUR
STOCK PRICE.

     Sales of substantial amounts of our common stock in the public market or
the perception that a large number of shares are available for sale, could cause
the market price of our common stock to decline. Immediately following our
initial public offering, approximately 80% of our outstanding shares of common
stock, including shares that can be acquired upon the exercise of options and
warrants, were subject to a "lock-up" agreement that would prevent the resale of
these shares until 180 days after the our initial public offering. Following the
expiration of this 180-day "lock-up" period, the holders of these shares will,
in general, be entitled to dispose of these shares. Moreover, U.S. Bancorp Piper
Jaffray Inc. may, in its sole discretion and at any time without notice, release
all or any portion of the securities subject to the lock-up. In addition to the
adverse effect a price decline could have on holders of our common stock, that
decline would likely impede our ability to raise capital through the issuance of
additional shares of our common stock or other equity securities.

     The holders of approximately 17 million shares of our common stock
(including warrants exercisable for 250,395 shares of common stock) have rights,
subject to some conditions, to require us to file registration statements
covering their shares, or to include their shares in registration statements
that we may file for ourselves or other stockholders. By exercising their
registration rights and selling a large number of shares, these holders could
cause the price of our common stock to decline. Furthermore, if we were to
include in a company-initiated registration statement shares held by those
holders pursuant to the exercise of their registration rights, those sales could
impair our ability to raise needed capital by depressing the price at which we
could sell our common stock.

OUR CERTIFICATE OF INCORPORATION AND BYLAWS, AS WELL AS PROVISIONS OF DELAWARE
LAW, COULD DISCOURAGE POTENTIAL ACQUISITIONS OF OUR COMPANY THAT STOCKHOLDERS
MAY CONSIDER FAVORABLE.

     Certain provisions of our certificate of incorporation, our bylaws and
Delaware law may discourage, delay or prevent a merger or acquisition that
stockholders may consider favorable. This could have an adverse effect on the
market price of our common stock or prevent our stockholders from realizing a
premium over the market price for their shares of our common stock. See
"Description of Capital Stock" for a discussion of these anti-takeover
provisions.

                                       19
<PAGE>   22

CONTROL BY CERTAIN STOCKHOLDERS WILL LIMIT THE ABILITY OF OTHER STOCKHOLDERS TO
INFLUENCE THE OUTCOME OF MATTERS REQUIRING STOCKHOLDER APPROVAL AND COULD
DISCOURAGE POTENTIAL ACQUISITIONS OF OUR COMPANY BY THIRD PARTIES.

     We believe that our executive officers, directors and entities affiliated
with them, along with the current holders of more than 5% of our equity, in the
aggregate, beneficially own a majority of our outstanding common stock. These
stockholders, if acting together, would be able to exert a significant degree of
influence over our management and affairs and over matters requiring approval by
our stockholders, including the election of our board of directors and the
approval of mergers or other business combination transactions. This
concentration of ownership could have the effect of delaying or preventing a
change in our control or otherwise discourage a potential acquirer from
attempting to obtain control of us, which in turn could have an adverse effect
on the market price of our common stock or prevent our stockholders from
realizing a premium over the market price for their shares of our common stock.

WE MAY APPLY THE PROCEEDS OF THIS OFFERING TO USES THAT DO NOT IMPROVE OUR
OPERATING RESULTS OR MARKET VALUE.

     We have considerable discretion to use the net proceeds from our recently
completed initial public offering for our business. The net proceeds may be used
for corporate purposes that do not improve our operating results or our market
value. Pending the application of the net proceeds, they may be placed in
investments that do not produce income or that lose value.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES OF MARKET RISK

     We believe we do not have any significant exposures to quantitative and
qualitative market risks. For the three months ended June 30, 2000, we did not
have any derivative financial instruments or any derivative commodity
instruments. Our other financial instruments include trade accounts receivable,
trade accounts payable, convertible subordinated debentures and a term note. Our
accounts receivable and accounts payable are relatively short term in duration
and as a consequence, are not exposed to significant interest rate changes and
consequent fair value adjustments. Our cash equivalents are invested in interest
bearing accounts, generally money market accounts of less than seven days
average maturity, and as a result are not subject to significant valuation
adjustments due to interest rate changes. We also have convertible subordinated
debentures and a term loan, both of which bear interest at fixed rates. As a
result, the payments due under these debentures and term loan are not subject to
adjustment due to interest rate changes. Our financial market risk includes
risks associated with international operations and related foreign currencies.
We anticipate that international sales will continue to account for a
significant portion of our consolidated revenues. Most of our international
sales are in U.S. dollars and, therefore, are not subject to foreign currency
exchange rate risk. In the three months ended June 30, 2000, approximately 28%
of our ending accounts receivable balance were denominated in a foreign currency
and as a result, we were subject to foreign currency exchange risk on this
amount. Expenses of our international operations are denominated in each
country's local currency, however, and are therefore subject to foreign currency
exchange risk. Through June 30, 2000, we have not experienced any significant
negative impact on our operations as a result of fluctuations in foreign
currency exchange rates.

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     Not applicable

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

INITIAL PUBLIC OFFERING

     In August 2000 we completed the closing of the initial public offering of
our common stock pursuant to our Registration Statement on Form S-1 (File No.
333-31266) as filed with the Securities and Exchange

                                       20
<PAGE>   23

Commission on February 28, 2000, as amended, and sold 5,462,500 shares of our
common stock (including 712,500 shares issued pursuant to the underwriters'
over-allotment option) at $9.00 per share. The aggregate gross proceeds from the
sale were approximately $49.1 million. In connection with our initial public
offering, we paid $3.4 million in underwriters' discounts and $3.1 million in
other costs. The costs associated with this offering include the Nasdaq National
Market listing fee, printing and engraving, legal, accounting, travel and other
related expenses. Net proceeds from the offering were approximately $42.6
million and were invested in high quality short-term investments. U.S. Bancorp
Piper Jaffray and Bank of America Securities LLC were the managing underwriters
of the initial public offering of our common stock.

     The net proceeds from the initial public offering are intended to be used
for general corporate purposes, including working capital, research and
development, sales and marketing, network design services, capital expenditures,
and potential acquisitions.

     The following change in our capital stock occurred immediately upon the
closing of the offering:

     - all issued and outstanding shares of the Company's preferred stock were
       converted into an aggregate of 10,116,319 shares of common stock

     - outstanding warrants were exercised, resulting in an issuance of
       1,060,706 shares of common stock

     - $20.1 million of Series DD and Series EE convertible debentures were
       converted into an aggregate of 3,364,763 shares of common stock

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     Not applicable

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

     On May 2, 2000, the Company's stockholders, acting by written consent in
lieu of a meeting and by the requisite approval, approved the form, terms and
provisions of the Agreement and Plan of Merger to effect the reincorporation of
the Company from California into Delaware. This action was taken by the
stockholders of the Company's pre-reincorporation Delaware entity.

     On May 11, 2000, the Company's stockholders, acting by written consent in
lieu of a meeting and by the requisite approval, approved the form, terms and
provisions of the following documents in connection with the Company's initial
public offering: (i) the Agreement and Plan of Merger to effect the
reincorporation of the Company from California into Delaware; (ii) the Amended
and Restated Certificate of Incorporation, which was to be effective immediately
prior to the closing of the initial public offering; (iii) the Company's 2000
Equity Incentive Plan, which provided for an initial authorization of 3,000,000
of shares of common stock reserved for issuance under that plan and provided for
an annual automatic increase in the number of shares of common stock reserved
for issuance under that plan beginning on January 1, 2001 by the lesser of (a)
1,000,000 shares or (b) 4% of the outstanding Common Stock on that date; (iv)
the 2000 Employee Stock Purchase Plan, pursuant to which the Company may issue
up to an aggregate of 500,000 shares of Common Stock after the closing of the
initial public offering, subject to automatic increases beginning on January 1,
2002; and (v) the form of Indemnity Agreement for use between the Company and
its executive officers. This action was taken by stockholders of the Company's
pre-reincorporation California entity.

     On May 18, 2000, the Company's stockholders, acting by written consent in
lieu of a meeting and by the requisite approval, approved the election of
Kenneth L. Kenitzer, Chris L. Branscum, John Bosch, Bandel Carano, Richard G.
Grey, Perry LaForge and Alessandro Piol to serve as directors of the Company.
This action was taken by stockholders of the Company's pre-reincorporation
Delaware entity.

ITEM 5. OTHER INFORMATION

     Not applicable

                                       21
<PAGE>   24

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS

<TABLE>
<CAPTION>
        EXHIBIT
        NUMBER                             DESCRIPTION
        -------                            -----------
        <C>        <S>
          3.1      Amended and Restated Certificate of Incorporation.
          4.5*     Seventh Amended and Restated Investors' Rights Agreement,
                   dated July 11, 2000.
          4.6*     Form of Warrant to Purchase Shares of Series EE Preferred
                   Stock.
         10.10*    Convertible Debenture and Warrant Purchase Agreement dated
                   July 11, 2000.
         27.1      Financial Data Schedule
</TABLE>

---------------
* Incorporated by reference from the Registrant's Registration on Form S-1 (No.
  333-31266), filed with the Commission on February 28, 2000, as amended through
  the date hereof.

(b) REPORTS ON FORM 8-K

     No reports on Form 8-K were filed during the three months ended June 30,
2000.

                                       22
<PAGE>   25

                                   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.

                                          REPEATER TECHNOLOGIES, INC.

                                          By:    /s/ TIMOTHY A. MARCOTTE
                                            ------------------------------------
                                                    Timothy A. Marcotte,
                                                     Vice President and
                                                  Chief Financial Officer
                                            (Principal Financial and Accounting
                                                           Officer)

Date: September 20, 2000

                                       23
<PAGE>   26

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
        EXHIBIT
        NUMBER                             DESCRIPTION
        -------                            -----------
        <C>        <S>
          3.1      Amended and Restated Certificate of Incorporation.
          4.5*     Seventh Amended and Restated Investors' Rights Agreement,
                   dated July 11, 2000.
          4.6*     Form of Warrant to Purchase Shares of Series EE Preferred
                   Stock.
         10.10*    Convertible Debenture and Warrant Purchase Agreement dated
                   July 11, 2000.
         27.1      Financial Data Schedule
</TABLE>

---------------
* Incorporated by reference from the Registrant's Registration on Form S-1 (No.
  333-31266), filed with the Commission on February 28, 2000, as amended through
  the date hereof.

                                       24