<PAGE>


                          SECURITIES AND EXCHANGE COMMISSION

                                WASHINGTON, D.C. 20549


                                      FORM 10-Q

                                   QUARTERLY REPORT

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



                       For the Quarter Ended December 31, 1997



                                        1-8931
                                        ------
                                Commission File Number


                                  CUBIC CORPORATION
                 Exact Name of Registrant as Specified in its Charter



           Delaware                                 95-1678055
           --------                                 ----------
     State of Incorporation                IRS Employer Identification No.


                                  9333 Balboa Avenue
                             San Diego, California 92123
                               Telephone (619) 277-6780


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

     As of January 30, 1998, Registrant had only one class of common stock
     of which there were 8,907,158 shares outstanding (after deducting
     2,981,085 shares held as treasury stock).
     

<PAGE>
                                          
                           PART I - FINANCIAL INFORMATION
                            ITEM 1 - FINANCIAL STATEMENTS

                                  CUBIC CORPORATION 
                CONSOLIDATED CONDENSED STATEMENT OF INCOME (UNAUDITED)
                    (amounts in thousands, except per share data)

<TABLE>
<CAPTION>
                                                          Three Months Ended
                                                              December 31
                                                           1997         1996  
                                                        ---------    ---------
<S>                                                     <C>          <C>
Revenues:
   Net sales                                            $  91,752    $  84,058
   Other income                                             1,394        1,174
                                                        ---------    ---------
                                                           93,146       85,232
                                                        ---------    ---------
Costs and expenses:
   Cost of sales                                           68,805       64,870
   Selling, general and
      administrative expenses                              17,994       14,084
   Research and development                                 1,702        1,314
   Interest                                                   503          419
                                                        ---------    ---------
                                                           89,004       80,687
                                                        ---------    ---------
      
Income before income taxes                                  4,142        4,545
      
Income taxes                                                1,500        1,650
                                                        ---------    ---------
      
Net income                                               $  2,642     $  2,895
                                                        ---------    ---------
                                                        ---------    ---------
      
Net income per share                                       $  .30       $  .32
                                                        ---------    ---------
                                                        ---------    ---------
      
Average shares of common stock outstanding                  8,943        8,981
                                                        ---------    ---------
</TABLE>

See accompanying notes.

                                       2

<PAGE>
                                           
                                 CUBIC CORPORATION
                         CONSOLIDATED CONDENSED BALANCE SHEET
                                (thousands of dollars)

<TABLE>
<CAPTION>

                                                            December 31    September 30
                                                                 1997           1997
                                                            (Unaudited)   (See note below)
                                                            -----------   ----------------
<S>                                                         <C>           <C>
ASSETS
Current assets:
 Cash and cash equivalents                                   $  66,359      $  53,257
 Marketable securities, available-for-sale                       2,392          2,426
 Accounts receivable                                           103,256        107,807
 Inventories -- Note C                                          25,973         20,955
 Deferred income taxes and other current assets                 13,113         15,783
                                                            ----------     ----------
Total current assets                                           211,093        200,228
                                                            ----------     ----------
                                                                       
Property, plant and equipment - net                             39,710         40,110
Cost in excess of net tangible assets of
 purchased businesses, less amortization                        26,757         27,281
Miscellaneous other assets                                      14,505         14,663
                                                              --------       --------
                                                            $  292,065     $  282,282
                                                            ----------     ----------
                                                            ----------     ----------
                                                                       
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Short-term borrowings                                       $  10,905       $  9,620
 Accounts payable and other current liabilities                 47,593         46,270
 Customer advances                                              33,445         30,896
 Income taxes payable                                            2,136            206
 Current portion of long-term debt                               5,000          5,000
                                                            ----------     ----------
Total current liabilities                                       99,079         91,992
                                                            ----------     ----------
                                                                       
Long-term debt                                                  10,000         10,000
Deferred income taxes and other liabilities                      5,453          4,970
                                                                       
Shareholders' equity:
 Common stock                                                      234            234
 Additional paid-in capital                                     12,123         12,123
 Retained earnings                                             200,855        198,213
 Foreign currency translation adjustment                          (425)          (557)
 Treasury stock at cost                                        (35,254)       (34,693)
                                                            ----------     ----------
                                                               177,533        175,320
                                                            ----------     ----------
                                                            $  292,065     $  282,282
                                                            ----------     ----------
                                                            ----------     ----------
</TABLE>

Note: The balance sheet at September 30, 1997 has been derived from the audited
financial statements at that date.
 
See accompanying notes.

                                       3

<PAGE>
                                 CUBIC CORPORATION 
                    CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
                                     (UNAUDITED)
                                (thousands of dollars)

<TABLE>
<CAPTION>
                                                                Three Months Ended
                                                                    December 31
                                                                1997           1996   
                                                              --------       --------
     <S>                                                      <C>            <C>
     Operating Activities:
      Net income                                              $  2,642       $  2,895
      Adjustments to reconcile net income to net cash
       used in operating activities:
        Depreciation and amortization                            2,493          2,013
        Changes in operating assets and liabilities              8,970        (10,556)
                                                              --------       --------
     NET CASH PROVIDED BY (USED IN) OPERATING
       ACTIVITIES                                               14,105         (5,648)
                                                              --------       --------
     
     Investing Activities:
      Sales of marketable securities                                34             --
      Net additions to property, plant and equipment            (1,537)        (1,520)
      Other items - net                                             50             --
                                                              --------       --------
     NET CASH USED IN INVESTING ACTIVITIES                      (1,453)        (1,520)
                                                              --------       --------
     
     Financing Activities:
      Short-term borrowings                                      1,097             --
      Purchases of treasury stock                                 (561)            --
                                                              --------       --------
     NET CASH PROVIDED BY FINANCING ACTIVITIES                     536             --
                                                              --------       --------
     
     Effect of exchange rates on cash                              (86)          (101)
                                                              --------       --------
     
     NET INCREASE (DECREASE) IN CASH
      AND CASH EQUIVALENTS                                      13,102         (7,269) 
     
     Cash and cash equivalents at the
      beginning of the period                                   53,257         20,062
                                                              --------       --------
     
     CASH AND CASH EQUIVALENTS AT
      THE END OF THE PERIOD                                  $  66,359      $  12,793
                                                              --------       --------
                                                              --------       --------
</TABLE>

See accompanying notes.

                                       4

<PAGE>

                                 CUBIC CORPORATION 
                 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                           
                                 December 31, 1997


A.   BASIS FOR PRESENTATION

     The accompanying unaudited consolidated condensed financial statements have
     been prepared in accordance with generally accepted accounting principles
     for interim financial information and with the instructions to Form 10-Q
     and Article 10 of Regulation S-X. Accordingly, they do not include all
     information and footnotes required by generally accepted accounting
     principles for complete financial statements.

     In the opinion of management, all adjustments (consisting of normal
     recurring accruals) considered necessary for a fair presentation have been
     included. Operating results for the quarter are not necessarily indicative
     of the results that may be expected for the year ended September 30, 1998.
     For further information, refer to the consolidated financial statements and
     footnotes thereto included in the Company's annual report on Form 10-K for
     the year ended September 30, 1997.

     The preparation of the 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.

B.   PER SHARE AMOUNTS

     Per share amounts are based upon the weighted average number of shares of
     common stock outstanding.

C.   INVENTORIES 
<TABLE>
<CAPTION>
                                                December 31    September 30
                                                    1997           1997    
                                                -----------    ------------
     <S>                                        <C>            <C>
     Inventories consist of the following:
      Finished products                         $  2,179       $  2,501
      Work in process                             15,149         10,300
      Raw material and purchased parts             8,645          8,154
                                                --------       --------
                                                $ 25,973       $ 20,955
                                                --------       --------
                                                --------       --------
</TABLE>

     Work in process inventories include costs relating to long term contracts
     of approximately $8.0 million, the recovery of which is subject to future
     determination through contract negotiations. These amounts result from
     customer-required work performed not specified in contract provisions and
     pre-contract work performed at the Company's risk.  Management believes the
     Company will ultimately recover these amounts through the modification or
     award of the related contracts.
                                          
                                       5

<PAGE>

                                 CUBIC CORPORATION 
          NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS -- continued
                                          
                                 December 31, 1997


D.   ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT

     In the first quarter of fiscal 1998, the Company adopted Financial
     Accounting Standards Board Statement No. 128, "Earnings per Share".  This
     statement redefines the standards for computing and presenting earnings per
     share, previously promulgated by Accounting Principles Board Opinion No.
     15, " Earnings per Share".  Due to the Company's current simple capital
     structure, the Company is not required to calculate or present diluted
     earnings per share, nor restate earnings per share previously reported.
     
E.   LEGAL MATTER

     In July 1995, UDT Sensors, Inc. a potential subcontractor, filed a lawsuit
     against Cubic Defense Systems, Inc. in the Superior Court of the State of
     California in Los Angeles, alleging breach of a written contract, unjust
     enrichment, fraud and deceit, among other related charges. The claims
     allegedly arose out of a strategic supplier agreement under which UDT
     Sensors, Inc. alleges it was to receive a subcontract to provide a certain
     product if Cubic Defense Systems, Inc. was selected by the United States
     Army as the prime contractor for a certain government program.  After
     winning the prime contract, Cubic Defense Systems, Inc. was unable to reach
     agreement on certain terms and conditions for a subcontract with UDT
     Sensors, Inc. The lawsuit claimed damages in the amount of $20 million and
     more according to proof at trial, exemplary damages in an amount to be
     determined at trial, pre-judgment interest and costs of suit. Subsequent to
     the filing of the lawsuit, the Superior Court dismissed that part of the
     claim of UDT Sensors, Inc. dealing with breach of contract and the damages
     claim was reduced to $2 million.  The only remaining claims are ones for
     fraud and unjust enrichment. The trial date has been reset for April 13,
     1998.  The Company expects an out-of-court settlement to be reached, which
     will not have a material adverse effect on the Company's financial
     statements.   
     
F.   REVIEW BY INDEPENDENT ACCOUNTANTS

     A review of the data presented was made by Ernst & Young LLP, independent
     accountants, in accordance with established professional standards and
     procedures, and their report is included herein. 

                                       6

<PAGE>

                                 CUBIC CORPORATION
              ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                         CONDITION AND RESULTS OF OPERATIONS

                                  December 31, 1997

RESULTS OF OPERATIONS

Sales for the first quarter of fiscal 1998 were 9% higher than the first 
quarter of fiscal 1997, primarily due to the acquisition of Thorn Transit 
Systems International (TTSI) in April 1997.  The addition of this business 
contributed to a sales increase of 27% from the prior year in the automatic 
revenue collection segment.  Sales in the defense segment for the first 
quarter of fiscal 1998 were comparable to the first quarter of fiscal 1997. 

The Company has continued to invest in the development and promotion of its
proprietary software technology which delivers compressed video and audio
transmission over personal computer networks for applications including e-mail,
intra-net based training and surveillance.  This investment amounted to
approximately $1 million in the first quarter, resulting in lower overall
operating profits compared to the first quarter of fiscal 1997.

Operating profits in the defense segment for the first quarter were 35% higher
than in the previous year as a result of increased profits from product lines
such as the J-STARS Data Link and Personnel Locator Systems.  

Although sales in the first quarter for the revenue collection segment were up
from last year, operating profits for the first quarter were comparable to the
prior year, as the continued delay of an expected contract with the London
Transport has affected profitability. In addition, second quarter earnings may
be negatively impacted because of the possible need to set aside reserves for
some of the Asian contracts that came with the acquisition of TTSI.  The impact
of this is currently being assessed and will, if necessary, be reflected in the
second quarter.

For the three-month period, selling, general and administrative expenses
increased, both nominally and as a percentage of sales, over the level in fiscal
1997.  This increase was in support of higher sales volume at the automatic
revenue collection systems segment, increased selling expenses incurred at the
defense segment in pursuit of new contracts and selling expenses related to the
video compression product mentioned above.   

LIQUIDITY AND CAPITAL RESOURCES

During the three month period ended December 31, 1997, operating activities
provided $14.1 million, due primarily to collections from customers exceeding
the related contract expenditures. Investing activities included planned
expenditures for capital equipment, which used $1.5 million.  Financing
activities included an increase in the Company's short-term borrowings in the
United Kingdom that provided $1.1 million.  This was partially offset by
treasury stock purchases of $0.6 million.  Overall, cash and cash equivalents
increased by $13.1 million during the first quarter to $66.4 million as of
December 31, 1997.  The Company expects that cash on hand and its available debt
capacity will be adequate to meet its short-term working capital requirements.

                                       7

<PAGE>

                                 CUBIC CORPORATION
              ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                   CONDITION AND RESULTS OF OPERATIONS - continued

                                  December 31, 1997


The Company's financial condition remains strong with working capital of $112.0
million and a current ratio of 2.1 to 1 at December 31, 1997.  The backlog of
orders at December 31, 1997 was $380 million compared to $358 million at
September 30, 1997 and $320 million at December 31, 1996. The increase from
December 31, 1996 to December 31, 1997, was primarily the result of the TTSI
acquisition.

Except for historical matters contained herein, statements in this discussion
and analysis are forward-looking and are made pursuant to the Securities
Litigation Reform Act of 1995.  Investors are cautioned that forward-looking
statements involve risks and uncertainties which may affect the Company's
business and prospects, including economic, competitive, governmental,
technological and other factors.

                                       8

<PAGE>

                             PART II - OTHER INFORMATION
                      ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K



(a) The following exhibits are included herein:

     15--Independent Accountants' Review Report
     27--Financial Data Schedule


(b) No reports on Form 8-K were filed during the quarter.


                                   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.

                                       CUBIC CORPORATION
 
 
 Date February 6, 1998                 /s/ W. W. Boyle
      ----------------                 -----------------
                                       W. W. Boyle
                                       Vice President Finance and CFO
 
 
 Date February 6, 1998                 /s/ T. A. Baz
      ----------------                 -----------------
                                       T. A. Baz
                                       Vice President and Controller 
 

                                       9