<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


(Mark One)

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

For the quarterly period ended   September 30, 1996
                               -------------------------------------------------
                                       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:  0-26524
                        --------------------------------------------------------

                               MACKIE DESIGNS INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Washington                                    91-1432133
--------------------------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)                               

16220 Wood-Red Road, N.E., Woodinville, Washington                       98072
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

                                 (206) 487-4333
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

--------------------------------------------------------------------------------
   (Former name, former address and former fiscal year, if changed since last
                                    report)

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

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

         Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

Common Stock, no par value                                   12,885,000
--------------------------                          ----------------------------
         Class                                      Number of Shares Outstanding
                                                      (as of November 5, 1996)

<PAGE>   2
                               MACKIE DESIGNS INC.

                                    FORM 10-Q
                    FOR THE QUARTER ENDED SEPTEMBER 30, 1996


                                      INDEX

PART I.  FINANCIAL INFORMATION

     Item 1.  Financial Statements

              Balance sheets - September 30, 1996 and December 31, 1995

              Statements of income - Three months and nine months ended
              September 30, 1996 and 1995

              Condensed statements of cash flows - Nine months ended
              September 30, 1996 and 1995

              Notes to financial statements

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


PART II.  OTHER INFORMATION

     Item 1.  Legal Proceedings

     Item 2.  Changes in Securities

     Item 3.  Defaults Upon Senior Securities

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

     Item 5.  Other Information

     Item 6.  Exhibits and Reports on Form 8-K


SIGNATURES


EXHIBITS


                                       2


<PAGE>   3
PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

                               MACKIE DESIGNS INC.
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                     September 30,       December 31,
                                                                          1996               1995
                                                                      (Unaudited)           
                                                                      ------------       -----------
ASSETS
Current assets:
<S>                                                                   <C>                <C>        
    Cash and cash equivalents                                         $ 2,779,565        $ 3,857,185
    Marketable securities                                              10,995,493         10,775,942
    Accounts receivables, less allowance for doubtful accounts         11,063,900          9,703,927
    Inventories                                                        10,403,652          7,642,892
    Income taxes receivable                                               260,327            379,100
    Deferred taxes                                                        372,000            204,000
    Prepaid expenses and other current assets                             842,635            607,847
                                                                      -----------        -----------
       Total current assets                                            36,717,572         33,170,893

Furniture, equipment and leasehold improvements,
    net of accumulated depreciation                                     9,502,747          4,651,271

Other assets                                                              380,116            112,893
                                                                      -----------        -----------
Total assets                                                          $46,600,435        $37,935,057
                                                                      ===========        ===========


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Accounts payable                                                  $ 3,602,729        $ 1,468,066
    Commissions payable                                                   670,173            737,190
    Accrued payroll and related taxes                                     505,694            522,717
    Accrued vacation                                                      240,738            162,891
    Other accrued liabilities                                             581,502            237,362
    Income taxes payable                                                       --                 --
                                                                      -----------        -----------
       Total current liabilities                                        5,600,836          3,128,226

Deferred rent                                                              32,500                 --

Shareholders' equity:
    Common stock                                                       30,998,830         30,943,330
    Retained earnings                                                   9,968,269          3,863,501
                                                                      -----------        -----------
       Total shareholders' equity                                      40,967,099         34,806,831
                                                                      -----------        -----------
Total liabilities and shareholders' equity                            $46,600,435        $37,935,057
                                                                      ===========        ===========
</TABLE>

                             See accompanying notes.


                                       3


<PAGE>   4
                               MACKIE DESIGNS INC.
                              STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                              Three months ended                  Nine months ended
                                                                September 30,                       September 30,
                                                        -----------------------------       -----------------------------
                                                           1996             1995               1996             1995
                                                        ------------     ------------       ------------     ------------
<S>                                                      <C>              <C>                <C>              <C>        
Net sales                                                $16,092,600      $16,896,939        $56,375,346      $47,251,166
Cost of goods sold                                        10,114,319        9,859,840         34,619,414       27,086,819
                                                        ------------     ------------       ------------     ------------
Gross profit                                               5,978,281        7,037,099         21,755,932       20,164,347

Operating expenses:
    Marketing and sales                                    2,103,320        2,288,850          7,074,305        6,839,276
    Administrative                                         1,212,040          853,632          3,833,804        2,323,196
    Research and development                                 878,649          287,576          2,376,987          806,775
                                                        ------------     ------------       ------------     ------------
       Total operating expenses                            4,194,009        3,430,058         13,285,096        9,969,247
                                                        ------------     ------------       ------------     ------------
Operating income                                           1,784,272        3,607,041          8,470,836       10,195,100

Interest income                                              228,348           86,771            665,936          110,168
Interest expense                                                  --         (123,200)                --         (318,038)
Other expense                                                     --           70,141            (11,104)          70,141
                                                        ------------     ------------       ------------     ------------
Income before income taxes                                 2,012,620        3,640,753          9,125,668       10,057,371

Income tax provision                                         666,300          763,400          3,020,900          763,400
                                                        ------------     ------------       ------------     ------------

Net income                                              $  1,346,320     $  2,877,353       $  6,104,768     $  9,293,971
                                                        ============     ============       ============     ============

Net income per share                                   $        0.10                        $       0.44
                                                       =============                        ============
                    

Weighted average shares outstanding                       13,657,660                          13,765,022
                                                       =============                        ============

Pro forma data:
    Income before pro forma provision for
     income taxes                                                        $  3,640,753                         $10,057,371

    Pro forma provision for income taxes                                    1,204,900                           3,399,400
                                                                         ------------                        ------------

    Pro forma net income                                                 $  2,435,853                        $  6,657,971
                                                                         ============                        ============

    Pro forma net income per share                                       $       0.19                        $       0.53
                                                                         ============                        ============
                                  

    Shares used in computation of pro forma
     net income per share                                                  12,928,545                          12,464,846
                                                                         ============                        ============
</TABLE>




                             See accompanying notes.



                                       4
<PAGE>   5
                               MACKIE DESIGNS INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    Nine months ended
                                                                                      September 30,
                                                                            ---------------------------------
                                                                                 1996                1995
                                                                            ------------         ------------
<S>                                                                         <C>                  <C>         
Net cash provided by operating activities                                   $  5,526,921         $  5,047,824

INVESTING ACTIVITIES
    Purchases of marketable securities                                       (36,858,145)          (9,951,768)
    Proceeds from sale of marketable securities                               36,638,594            2,501,906
    Purchases of furniture, equipment and leasehold improvements              (6,527,120)          (3,291,782)
    Proceeds from asset dispositions                                              86,630               75,797
                                                                            ------------         ------------
       Net cash used in investing activities                                  (6,660,041)         (10,665,847)

FINANCING ACTIVITIES
    Net proceeds from sale of common stock                                            --           31,716,513
    Net proceeds from exercise of stock options                                   55,500
    Payments on notes payable to related parties                                      --             (681,277)
    Proceeds from long-term debt                                                      --                   --
    Payments on long-term debt                                                        --             (643,490)
    Payments of dividends                                                             --          (14,148,265)
                                                                            ------------         ------------
       Net cash provided by (used in) financing activities                        55,500           16,243,481
                                                                            ------------         ------------
Net increase (decrease) in cash and cash equivalents                          (1,077,620)          10,625,458

Cash and cash equivalents at beginning of period                               3,857,185              307,218
                                                                            ------------         ------------
Cash and cash equivalents at end of period                                  $  2,779,565         $ 10,932,676
                                                                            ============         ============

SUPPLEMENTAL DISCLOSURES 

Noncash financing and investing activities:

    Dividends paid in exchange for shareholder notes                        $         --         $  8,469,309
                                                                            ============         ============
    Dividends declared but not paid                                         $         --         $  4,193,532
                                                                            ============         ============
Cash paid for interest                                                      $         --         $    329,755
                                                                            ============         ============
Cash paid for income taxes                                                  $  1,389,627         $    420,000
                                                                            ============         ============
</TABLE>



                             See accompanying notes.


                                       5

<PAGE>   6
                               MACKIE DESIGNS INC.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (UNAUDITED)

1.    BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared by Mackie
Designs Inc. (the "Company") in accordance with generally accepted accounting
principles for interim financial statements and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and disclosures required by generally accepted accounting
principles for complete financial statements. In the opinion of the Company's
management, all adjustments (consisting of normal recurring accruals) necessary
for a fair presentation have been included. The results of operations for the
three and nine month periods ended September 30, 1996 are not necessarily
indicative of future financial results. For further information, refer to the
financial statements and footnotes thereto for the year ended December 31, 1995
included in the Company's Form 10-K filed with the Securities and Exchange
Commission.

2.    NET INCOME PER SHARE

Net income per share is computed based on the weighted average number of common
shares outstanding and gives effect to the following adjustments:

   -  In accordance with the Securities and Exchange Commission requirements,
      common and common equivalent shares issued during the 12-month period
      prior to the filing of an initial public offering ("IPO") have been
      included in the calculation as if they were outstanding for all periods
      presented prior to the Company's IPO on August 17, 1995 using the treasury
      stock method and the IPO price of $12 per share.

   -  The net proceeds from the sale of 1,139,907 shares of common stock from
      the Company's IPO are assumed to repay shareholder notes and to be used to
      pay distributions to existing shareholders equal to the Company's
      undistributed S Corporation earnings through the termination of the
      Company's S Corporation status on August 17, 1995. These shares have been
      included in the calculation as if they were outstanding for all periods
      presented prior to the IPO.

3.    INCOME TAXES

Through August 16, 1995, the Company was treated as an S Corporation for federal
income tax purposes. A pro forma income tax provision has been included in the
statements of income for the three months and nine months ended September 30,
1995, as if the Company had been a taxable entity during that period. On August
17, 1995, the Company terminated its S Corporation status and became a taxable C
Corporation.

4.    INVENTORIES

Inventories at September 30, 1996 and December 31, 1995 consisted of the
following:

<TABLE>
<CAPTION>
                               September 30,    December 31, 
                                   1996            1995
                               -------------    ------------
<S>                             <C>              <C>       
            Raw materials       $ 5,719,966      $5,170,726
            Work in process         792,994         345,512
            Finished goods        3,890,692       2,126,654
                                -----------      ----------
                                $10,403,652      $7,642,892
                                ===========      ==========
</TABLE>


                                       6


<PAGE>   7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS


GENERAL

The following information contains certain forward-looking statements that
anticipate future trends or events. These statements are based on certain
assumptions that may prove to be erroneous and are subject to certain risks
including, but not limited to, the Company's ability to introduce new products,
the concentration of the Company's current products in a relatively narrow
segment of the professional audio market, technological change and increased
competition in the industry, the Company's ability to manage its rapid growth,
its limited protection of technology and trademarks, various factors that impact
the Company's international operations including custom and tariff regulations,
currency fluctuations and lower gross margins, the Company's dependence on a
limited number of suppliers and on its network of representatives and
distributors, and its dependence on certain key personnel within the Company.
Accordingly, actual results may differ, possibly materially, from the
predictions contained herein.

The Company derives its operating revenue from worldwide sales of audio mixers
and related products. Sales outside the U.S. account for a significant portion
of the Company's total sales. International sales volumes have historically been
affected by foreign currency fluctuations relative to the U.S. dollar. The
Company prices its products in U.S. dollars worldwide. When weaknesses of local
currencies have made the Company's products more expensive, sales to those
countries have declined.

The Company's gross margins are affected by its international sales. Typically,
gross margins from exported products are lower than from those sold in the U.S.
due to discounts offered by the Company to its foreign distributors. The Company
offered its foreign distributors a weighted average discount of approximately
8.1% in 1993, 7.7% in 1994, 8.1% in 1995, and 12.4% in the first nine months of
1996. Sales outside the U.S. represented approximately 30%, 36%, 34% and 37% of
the Company's net sales in 1993, 1994, 1995 and the first nine months of 1996,
respectively. The Company expects to increase the percentage of sales to its
international markets. This trend is expected to have a negative effect on gross
margins as a percentage of net sales.

Effective November 1, 1995, the Company terminated the services of its exclusive
representative for sales to distributors outside the U.S. and Canada. Since
then, the Company has supervised the international marketing and sales of its
products internally. Because of this change, the Company has modified its
discount structure to foreign distributors such that the weighted average
discount is expected to increase. This will have a negative effect on gross
margins as a percentage of net sales. Also because of this change, the Company
has eliminated the commissions it was paying to its international
representative; however, the Company has incurred and will continue to incur
additional expenses associated with managing the international marketing and
sales of its products internally. The Company also plans to increase its
advertising efforts in international markets, which will increase sales and
marketing expenses.

The Company's gross margins are also affected by the purchase of some components
abroad. As a result of fluctuations in the value of local currencies relative to
the U.S. dollar, some of the Company's foreign component suppliers have
increased prices and may further increase prices. The Company currently does not
employ any foreign exchange hedging strategies, but may employ such strategies
in the future.

The Company does not generally track backlog. Generally, orders are shipped
within two weeks after receipt. In the case of new product introductions or
periods where product demand exceeds production capacity, the Company allocates
products to customers on a monthly basis until demand is met.


                                       7


<PAGE>   8
The Company's gross margins have fluctuated from time to time due primarily to
inefficiencies related to the introduction and manufacturing of new products and
inefficiencies associated with integrating new equipment into the Company's
manufacturing processes. Historically, fluctuations have also resulted from
increases in overhead associated with each of the Company's several relocations,
varying prices of components and competitive pressures.

The Company plans to introduce new products and product revisions at a more
rapid rate than it has in the past. Some anticipated new products will require
the implementation of manufacturing practices with which the Company is not
familiar. This could result in lower margins as the Company becomes more
familiar with new manufacturing procedures.

As a result of its election to be treated as an S Corporation, the Company was
exempt from the payment of federal income taxes through August 16, 1995.
Accordingly, the Company's financial statements do not contain a provision for
income tax expense for periods through that date. Pro forma income statement
information is provided to reflect a provision for income taxes as if the
Company had been subject to federal income taxes as a C Corporation for all
periods presented.


RESULTS OF OPERATIONS

QUARTER ENDED SEPTEMBER 30, 1996 AS COMPARED WITH QUARTER ENDED SEPTEMBER 30, 
1995

Net sales decreased 4.8% to $16.1 million in the third quarter of 1996 from
$16.9 million in the third quarter of 1995. The decrease in sales was primarily
attributable to a decrease in sales in two mixer product lines: the 8-Bus Series
and the SR Series. Sales of the 8-Bus Series mixers decreased to 23% of net
sales for the third quarter of 1996 from 37% in the third quarter of 1995. Sales
of the SR Series mixers decreased to 19% of net sales for the third quarter of
1996 from 32% in the third quarter of 1995. Sales outside the United States
increased to 37% of the Company's total net sales in the third quarter of 1996
from 34% in the third quarter of 1995 primarily due to the Company's continued
emphasis on increasing international sales.

Gross margin decreased to 37.1% in the third quarter of 1996 from 41.6% in the
third quarter of 1995. The decrease was due to increases in discounts offered to
international distributors following the Company's decision, effective November
1, 1995, to terminate the services of its exclusive representative for sales to
distributors outside the U.S. and Canada. Since then, the Company has supervised
the international marketing and sales of its products internally. The decrease
in gross margin percentage was also due to a difference in product mix for the
third quarter of 1996 compared with the third quarter of 1995 as sales of the
MS1202-VLZ (successor to the MS-1202) and the CR1604-VLZ (successor to the
CR-1604), both of which were introduced in the first quarter of 1996, provided
lower gross margin percentages than their predecessors. As the Company has
introduced new versions of existing products, it has added more features to them
without significant price increases. Additionally, the gross margin decreased
due to labor and overhead inefficiencies caused by a lower than anticipated
sales volume in the third quarter of 1996.

Marketing and sales expenses decreased to $2.1 million in the third quarter of
1996 from $2.3 million in the corresponding period of 1995. This decrease was
due primarily to a decrease in commission payments to independent
representatives, partially offset by increases in marketing staff and increased
expenditures in advertising media creation and placement. Due to these factors,
marketing and sales expenses as a percentage of net sales decreased to 13.1% in
the third quarter of 1996 from 13.5% in the corresponding period of 1995.

Administrative expenses increased to $1.2 million for the third quarter of 1996
from $853,000 for the corresponding period of 1995. As a percentage of net
sales, these expenses increased to 7.5% in the third 


                                       8


<PAGE>   9
quarter of 1996 from 5.1% in the corresponding period of 1995. The increase was
due primarily to an increase in staff and various expenses associated with being
a publicly held company.

Research and development expenses increased to $879,000 in the third quarter of
1996 from $288,000 in the corresponding period of 1995. As a percentage of net
sales, these expenses increased to 5.5% in the third quarter of 1996 from 1.7%
in the corresponding period of 1995. The increase was due primarily to increases
in R&D staff and expenditures related to the creation of two new engineering
groups (Digital Product Group and Acoustic Product Group) as the Company expands
its product line into other professional audio categories.

Interest income increased to $228,000 in the third quarter of 1996 from $87,000
in the third quarter of 1995 due to higher overall cash balances stemming from
the Company's August 1995 initial public offering ("IPO"). There was no interest
expense in the third quarter of 1996 compared with $123,000 in the third quarter
of 1995, primarily due to the repayment of all interest-bearing debt following
the Company's IPO. Other income of $70,000 in the third quarter of 1995
(compared with none in the third quarter of 1996) resulted from gains on the
sale of capital equipment.

The provision for income taxes for the third quarter of 1996 of $666,000 is
based upon an expected overall effective rate for 1996 of 33.1%. The pro forma
provision for income taxes for the third quarter of 1995 of $1,205,000 was based
upon an expected overall effective rate for 1995 of 34.2%. The decrease in the
expected overall effective rate in 1996 from 1995 is due to the benefit provided
by the Company's foreign sales corporation formed in September 1995.

NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED WITH NINE MONTHS ENDED
SEPTEMBER 30, 1995

Net sales increased 19.3% to $56.4 million in the first nine months of 1996 from
$47.3 million in the first nine months of 1995. The increase in sales was
primarily due to the success of three new compact mixers, the MS1202-VLZ
(successor to the MS1202) introduced in October 1995, the MS1402-VLZ introduced
in January 1996 and the CR1604-VLZ (successor to the CR-1604) introduced in
February 1996, and also to the success of two SR Series mixers which were
introduced in May 1995 (SR24-4) and August 1995 (SR32-4). Sales of the three new
compact mixers, two of which were new versions of existing products, caused
sales of the compact mixer product line to increase to 52% of net sales for the
first nine months of 1996 from 36% in the first nine months of 1995. Sales of
the SR series mixers increased to 21% of net sales for the first nine months of
1996 from 14% in the first nine months of 1995. Sales outside the United States
were 37% of the Company's total net sales in the first nine months of 1996
compared with 33% in the first nine months of 1995.

Gross margin decreased to 38.6% in the first nine months of 1996 from 42.7% in
the first nine months of 1995. The decrease was due to increases in discounts
offered to international distributors following the Company's decision,
effective November 1, 1995, to terminate the services of its exclusive
representative for sales to distributors outside the U.S. and Canada. Since
then, the Company has supervised the international marketing and sales of its
products internally. The decrease in gross margin percentage was also due to a
difference in product mix in the first nine months of 1996 compared with the
first nine months of 1995 as sales of the SR24-4, the MS1202-VLZ and the
CR1604-VLZ provided lower gross margin percentages. As the Company has
introduced new versions of existing products, it has added more features to them
without significant price increases. Additionally, the gross margin decreased
due to labor and overhead inefficiencies caused by a lower than anticipated
sales volume.

Marketing and sales expenses increased to $7.1 million in the first nine months
of 1996 from $6.8 million in the corresponding period of 1995. This increase was
due primarily to increases in marketing staff and increased expenditures in
advertising media creation and placement, partially offset by a decrease in
commission payments to independent representatives. As a percentage of net
sales, marketing and sales expenses decreased 


                                       9


<PAGE>   10
to 12.5% in the first nine months of 1996 from 14.5% in the first nine months of
1995 due to leveraging fixed marketing and sales expenses over a growing revenue
base.

Administrative expenses increased to $3.8 million for the first nine months of
1996 from $2.3 million for the corresponding period of 1995. As a percentage of
net sales, these expenses increased to 6.8% in the first nine months of 1996
from 4.9% in the first nine months of 1995. The increase was due primarily to an
increase in staff and expenditures related to the Company's increased business
volume and various expenses associated with being a publicly held company.

Research and development expenses increased to $2.4 million in the first nine
months of 1996 from $807,000 in the corresponding period of 1995. As a
percentage of net sales these expenses increased to 4.2% in the first nine
months of 1996 from 1.7% in the first nine months of 1995. The increase was due
primarily to increases in R&D staff and expenditures related to the creation of
two new engineering groups (Digital Product Group and Acoustic Product Group) as
the Company expands its product line into other professional audio categories.

Interest income increased to $666,000 in the first nine months of 1996 from
$110,000 in the first nine months of 1995 due to higher overall cash balances
stemming from the Company's IPO. There was no interest expense in the first nine
months of 1996 compared with $318,000 in the first nine months of 1995,
primarily due to repayment of all interest-bearing debt following the Company's
IPO. Other expense of $11,000 in the first nine months of 1995 (compared with
other income of $70,000 in the first nine months of 1995) resulted from losses
on the sale of capital equipment.

The provision for income taxes for the first nine months of 1996 of $3,021,000
is based upon an expected overall effective rate for 1996 of 33.1%. The pro
forma provision for income taxes for the first nine months of 1995 of $3,399,000
was based upon an expected overall effective rate for 1995 of 34.2%. The
decrease in the expected overall effective rate in 1996 from 1995 is due to the
benefit provided by the Company's foreign sales corporation formed in September
1995.


LIQUIDITY AND CAPITAL RESOURCES

During the first nine months of 1996, the Company's operating activities
generated cash of $5.5 million. Accounts receivable, net of allowances,
increased to $11.1 million at September 30, 1996 from $9.7 million at December
31, 1995 due to increasing sales and an increase in days' sales outstanding.
Inventory levels increased to $10.4 million at September 30, 1996 from $7.6
million at December 31, 1995 due to an increased level of finished goods caused
by a lower than anticipated sales volume in the third quarter of 1996. Net cash
used in investing activities totaled $6.6 million during this period, primarily
attributable to net purchases of furniture, equipment and leasehold improvements
of $6.4 million.

In November 1995, the Company entered into a business loan agreement with a
bank. The agreement provides three credit facilities to the Company including a
$5.0 million unsecured line of credit to finance any unexpected working capital
requirements. The line of credit bears interest at the bank's prime rate or at a
specified IBOR rate plus 1.5%, whichever the Company chooses. The agreement also
provides a $2.5 million credit facility for capital equipment purchases or
general corporate purposes. Certain terms under this facility such as interest
rate, repayment period and collateral will be determined at the time advances
are made to the Company. The Company also has a $1.75 million line of credit for
the purchase of foreign exchange contracts. There were no borrowings outstanding
on any of the bank credit facilities at September 30, 1996. These credit
facilities expire October 31, 1997. Under the terms of the business loan
agreement, the Company must maintain certain financial ratios and tangible net
worth. The Company is in compliance with all such covenants. The agreement also
provides, among other matters, restrictions on additional financing, dividends,
mergers, and acquisitions. The agreement also imposes an annual capital
expenditure limit of $10 million.


                                       10


<PAGE>   11
Although the Company cannot accurately anticipate the effects of inflation, the
Company does not believe inflation has had or is likely to have a material
effect on its results of operations or liquidity.


                                       11

<PAGE>   12
PART II .  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     The Company is not a party to any material litigation or legal proceedings
     at this time and is not aware of any potentially material litigation or
     proceeding threatened against it.

ITEM 2.  CHANGES IN SECURITIES

     None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     None.

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

     None.

ITEM 5.  OTHER INFORMATION

     None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits

         Exhibit No.          Description
         -----------          -----------
              11              Computation of Net Income Per Share

     (b) Reports on Form 8-K
         The Company filed no reports on Form 8-K during the third quarter of
1996.


                                       12


<PAGE>   13
                                   SIGNATURES

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



                                   MACKIE DESIGNS INC.
                                   --------------------------------------------
                                   (Registrant)


Dated:  November 5, 1996        By:/s/ Greg C. Mackie
                                   --------------------------------------------
                                   Greg C. Mackie
                                   President and Chief Executive Officer


Dated:  November 5, 1996        By:/s/ Thomas M. Elliott
                                   --------------------------------------------
                                   Thomas M. Elliott
                                   Vice President-Finance and Chief Financial
                                   Officer


                                       13


<PAGE>   14
                                  EXHIBIT INDEX


Exhibit No.                       Description                       Location
-----------                       -----------                       --------

      11              Computation of Net Income Per Share            Page 15


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