<PAGE>

                                  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, 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: 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
incorporation or organization)                          Identification No.)

16220 WOOD-RED ROAD, N.E., WOODINVILLE, WASHINGTON                         98072
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

                                 (425) 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                                   12,372,358
--------------------------                                   ----------
         Class                                            Number of Shares
                                                            Outstanding
                                                      (as of November 1, 2000)

<PAGE>

                               MACKIE DESIGNS INC.

                                    FORM 10-Q
                    FOR THE QUARTER ENDED SEPTEMBER 30, 2000


                                      INDEX

PART I.  FINANCIAL INFORMATION

     Item 1.  Financial Statements (Unaudited)

              Condensed consolidated balance sheets - September 30, 2000 and
                December 31, 1999

              Condensed consolidated statements of income - Three and nine
                months ended September 30, 2000 and 1999

              Condensed consolidated statements of cash flows - Nine months
                ended September 30, 2000 and 1999

              Notes to condensed consolidated financial statements

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

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk



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>

PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

                               MACKIE DESIGNS INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                 September 30,     December 31,
                                                     1999             2000
                                                --------------   --------------
<S>                                             <C>              <C>
ASSETS
Current assets:
    Cash and cash equivalents                   $    4,105,971   $    4,629,234
    Available-for-sale securities                      991,665        6,328,146
    Accounts receivable, net                        40,464,540       31,679,300
    Inventories                                     61,760,025       39,678,922
    Prepaid expenses and other current assets        2,341,651        1,832,411
    Deferred income taxes                            3,488,686        2,488,666
                                                --------------   --------------
       Total current assets                        113,152,538       86,636,679

Property, plant and equipment, net                  22,100,559       20,501,755
Bonds                                                3,473,948        3,902,473
Other assets, net                                    1,363,902        2,491,247
Intangible assets, net                              24,272,813        7,321,725
                                                --------------   --------------

Total assets                                    $  164,363,760   $  120,853,879
                                                ==============   ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Short-term borrowings                       $   27,752,890   $   16,009,408
    Accounts payable                                23,795,424       16,142,548
    Accrued expenses                                 9,726,639        8,257,304
    Income taxes payable                             2,191,222        2,009,952
    Current portion of long-term debt                7,014,767        6,959,779
                                                --------------   --------------
       Total current liabilities                    70,480,942       49,378,991

Long-term debt, excluding current portion           29,655,194       15,664,662
Employee and other liabilities                       3,485,109        3,778,149
Deferred income taxes                                4,601,749        1,725,095
Other deferred items                                   185,249             --

Shareholders' equity:
    Common stock                                    27,570,456       25,802,401
    Retained earnings                               31,248,963       25,658,852
    Accumulated other comprehensive loss            (2,863,902)      (1,154,271)
                                                --------------   --------------
       Total shareholders' equity                   55,955,517       50,306,982
                                                --------------   --------------

Total liabilities and shareholders' equity      $  164,363,760   $  120,853,879
                                                ==============   ==============
</TABLE>


SEE ACCOMPANYING NOTES.


                                       3
<PAGE>

                               MACKIE DESIGNS INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                    Three months ended               Nine months ended
                                                      September 30,                     September 30,
                                             -----------------------------------------------------------------
                                                  2000             1999             2000             1999
                                             --------------   --------------   --------------   --------------
<S>                                          <C>              <C>              <C>              <C>
Net sales                                    $   50,878,722   $   40,344,334   $  151,486,676   $  111,224,105
Cost of goods sold                               32,610,830       25,681,287       95,340,542       71,147,135
                                             --------------   --------------   --------------   --------------
Gross profit                                     18,267,892       14,663,047       56,146,134       40,076,970

Operating expenses:
    Selling, general and administrative          12,813,318       10,180,035       36,688,532       30,563,733
    Research and development                      2,033,058        1,669,551        6,746,073        5,147,518
                                             --------------   --------------   --------------   --------------

       Total operating expenses                  14,846,376       11,849,586       43,434,605       35,711,251
                                             --------------   --------------   --------------   --------------
Operating income                                  3,421,516        2,813,461       12,711,529        4,365,719

Interest income                                      98,442          168,276          441,300          530,898
Interest expense                                 (1,238,379)        (677,079)      (2,990,615)      (2,169,273)
Other income (expense), net                        (830,079)         525,635         (866,709)         193,040
                                             --------------   --------------   --------------   --------------
Income before income taxes                        1,451,500        2,830,293        9,295,505        2,920,384

Income taxes                                        526,433        1,117,279        3,705,394        1,455,531
                                             --------------   --------------   --------------   --------------

Net income                                   $      925,067   $    1,713,014   $    5,590,111   $    1,464,853
                                             ==============   ==============   ==============   ==============


Basic net income per share                   $         0.08   $         0.14   $         0.46   $         0.12
                                             ==============   ==============   ==============   ==============

Diluted net income per share                 $         0.07   $         0.14   $         0.44   $         0.12
                                             ==============   ==============   ==============   ==============

Basic weighted average shares outstanding
                                                 12,229,601       12,177,615       12,157,129       12,251,116
                                             ==============   ==============   ==============   ==============

Diluted weighted average shares outstanding
                                                 13,100,851       12,177,615       12,779,985       12,315,799
                                             ==============   ==============   ==============   ==============
</TABLE>


SEE ACCOMPANYING NOTES.


                                       4
<PAGE>

                               MACKIE DESIGNS INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                  Nine months ended
                                                                                    September 30,
                                                                             ---------------------------
                                                                                 2000           1999
                                                                             ------------   ------------
<S>                                                                          <C>            <C>
OPERATING ACTIVITIES
     Net income                                                              $  5,590,111   $  1,464,853
     Adjustments to reconcile net income to net cash provided / (used) by
      operating activities:
       Depreciation and amortization                                            5,643,224      4,264,237
       Deferred stock compensation                                                299,500           --
       Deferred income taxes                                                     (842,397)      (356,788)
       Changes in operating assets and liabilities net of EAW acquisition:
         Accounts receivable                                                   (5,770,756)    (3,808,135)
         Inventories                                                          (17,871,226)     1,814,508
         Prepaid expenses and other current assets                                441,900       (215,132)
         Other assets                                                             850,716       (819,225)
         Accounts payable and accrued expenses                                  5,708,608      1,913,941
         Income taxes payable                                                     404,759       (279,117)
         Other long term liabilities                                              661,039       (321,876)
                                                                             ------------   ------------
         Cash provided / (used) by operating activities                        (4,884,522)     3,657,266

INVESTING ACTIVITIES
    Acquisition of business, net of cash acquired                             (19,894,937)          --
    Purchases of available-for-sale securities                                 (2,358,160)    (6,090,443)
    Proceeds from maturities of available-for-sale securities                   7,702,543      5,945,000
    Purchases of property, plant and equipment                                 (4,619,729)    (2,162,261)
                                                                             ------------   ------------

       Cash used by investing activities                                      (19,170,283)    (2,307,704)

FINANCING ACTIVITIES
    Proceeds from long-term debt                                               18,135,370        720,001
    Payments on long-term debt                                                 (4,994,802)    (2,642,914)
    Net proceeds on bank line of credit and short-term borrowings               9,852,210      5,844,868
    Repurchase and retirement of common stock                                        --       (1,308,249)
    Proceeds from the exercise of stock options                                 1,468,530          8,325
                                                                             ------------   ------------
       Cash provided by financing activities                                   24,461,308      2,622,031

Effect of exchange rate changes on cash                                          (929,766)      (499,076)
                                                                             ------------   ------------

Increase / (decrease) in cash and cash equivalents                               (523,263)     3,472,517

Cash and cash equivalents at beginning of period                                4,629,234        123,611
                                                                             ------------   ------------

Cash and cash equivalents at end of period                                   $  4,105,971   $  3,596,128
                                                                             ============   ============

SUPPLEMENTAL DISCLOSURES
Cash paid for income taxes                                                   $  3,476,042   $  1,132,815
                                                                             ============   ============
Cash paid for interest                                                       $  2,613,846   $  1,970,318
                                                                             ============   ============
</TABLE>

SEE ACCOMPANYING NOTES.


                                       5
<PAGE>

                               MACKIE DESIGNS INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (UNAUDITED)

1.     BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated 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
items, necessary for a fair presentation have been included. The results of
operations for interim periods are not necessarily indicative of future
financial results. For further information, refer to the consolidated financial
statements and footnotes thereto for the year ended December 31, 1999 included
in the Company's Form 10-K filed with the Securities and Exchange Commission.


2.       ACQUISITION

In April 2000, the Company acquired 100% of the capital stock of Eastern
Acoustic Works, Inc. (EAW). EAW is a manufacturer of audio speakers based in
Whitinsville, Massachusetts. The acquisition was accounted for under the
purchase method of accounting. The aggregate purchase price, plus related
acquisition costs, was approximately $19.6 million. The excess of the purchase
price over the fair value of net tangible assets acquired approximating $18.7
million is included in intangible assets. A total of $8.2 million of the
purchase consideration was specifically allocated to identifiable intangible
assets, including developed technology ($5.2 million), assembled workforce ($1.6
million), and trademark ($1.4 million). The remaining $10.5 million is Goodwill.
Goodwill, developed technology and trademark are being amortized on the straight
line method over 20 years, while the assembled workforce is being amortized on
the straight line method over 5 years. The Company is still refining its
purchase price allocation and there could be some adjustments in the future. The
results of EAW have been included in the Company's consolidated results of
operations from the date of acquisition.

The following table presents unaudited pro forma consolidated financial
information for the nine-month periods ended September 30, 2000 and 1999 as if
the acquisition of EAW had occurred on January 1 of those years:



<TABLE>
<CAPTION>
IN THOUSANDS, EXCEPT PER SHARE DATA                   NINE MONTHS ENDED SEPTEMBER 30,
                                                         2000                 1999
                                                ----------------------------------------
<S>                                             <C>                     <C>
Revenue                                         $        161,103        $       140,791
Net income                                      $          5,039        $           654
Diluted net income per share                    $           0.39        $          0.05
</TABLE>


The unaudited pro forma financial information is presented for informational
purposes only and is not necessarily indicative of the operating results that
would have occurred had the acquisition taken place on the basis assumed above.
In addition, the pro forma results are not intended to be a projection of the
future results and do not reflect any synergies that might have been achieved
from the combined operations.


                                       6
<PAGE>

3.       INVENTORIES

Inventories consisted of the following:

<TABLE>
<CAPTION>
                                            September 30,   December 31,
                                                2000            1999
                                            ------------    ------------
<S>                                         <C>             <C>
          Raw materials                     $ 27,635,940    $ 16,499,299
          Work in process                      6,501,999       4,845,789
          Finished goods                      27,622,086      18,333,834
                                            ------------    ------------
                                            $ 61,760,025    $ 39,678,922
                                            ============    ============
</TABLE>


4.       NET INCOME PER SHARE

Basic net income per share is based on the weighted-average number of common
shares outstanding for the period. Diluted net income per share includes the
effect of potential dilutive common shares outstanding, consisting of stock
options using the treasury stock method. The denominators of the diluted net
income per share calculations exclude the effect of unexercised stock options
representing the potential rights to 135,000 and 3,138,550 shares for the third
quarters of 2000 and 1999, respectively, as well as 773,925 and 3,146,550 shares
for the first nine months of 2000 and 1999, respectively, as including the
effect of such instruments would be antidilutive. The following schedule
represents a reconciliation of the numerators and denominators of basic and
diluted net income per share calculations on a quarter and year-to-date basis
for 2000 and 1999.



<TABLE>
<CAPTION>
                                                            Three months ended             Nine months ended
                                                              September 30,                  September 30,
                                                      ----------------------------    ----------------------------
                                                          2000            1999            2000            1999
                                                      ------------    ------------    ------------    ------------
<S>                                                   <C>             <C>             <C>             <C>
Numerator:
   Numerator for basic and diluted net income per
     share - net income                               $    925,067    $  1,713,014    $  5,590,111    $  1,464,853
                                                      ------------    ------------    ------------    ------------

Denominator:
   Denominator for basic net income per share -
     weighted average common shares                     12,229,601      12,177,615      12,157,129      12,251,116

   Effect of dilutive securities:
     Stock options                                         871,250            --           622,856          64,683
                                                      ------------    ------------    ------------    ------------

   Denominator for diluted net income per share         13,100,851      12,177,615      12,779,985      12,315,799
                                                      ------------    ------------    ------------    ------------

Basic net income per share                            $       0.08    $       0.14    $       0.46    $       0.12
                                                      ============    ============    ============    ============

Diluted net income per share                          $       0.07    $       0.14    $       0.44    $       0.12
                                                      ============    ============    ============    ============
</TABLE>



5.       COMPREHENSIVE INCOME


                                       7
<PAGE>

Comprehensive income, in general, refers to the total change in equity during a
period except those changes that result from investments by owners and
distributions to owners. Comprehensive income includes net income as well as
other comprehensive income (loss) components comprised of certain revenues,
expenses, gains and losses that under generally accepted accounting principles
are reflected in shareholders' equity but excluded from the determination of net
income. The Company has segregated the total accumulated other comprehensive
loss (specifically, accumulated foreign currency translation adjustments and
unrealized gain (loss) on available-for-sale securities) from the other
components of shareholders' equity in the accompanying condensed consolidated
balance sheets.

Comprehensive income for the three and nine month periods ended September 30,
2000 and 1999, is detailed below:


<TABLE>
<CAPTION>
                                                     Three months ended              Nine months ended
                                                       September 30,                    September 30,
                                               -----------------------------    -----------------------------
                                                   2000             1999            2000             1999
                                               ------------     ------------    ------------     ------------
<S>                                            <C>              <C>             <C>              <C>
Net income                                     $    925,067     $  1,713,014    $  5,590,111     $  1,464,853
Other comprehensive income (loss):
   Foreign currency translation adjustments        (895,001)          81,112      (1,717,111)        (422,233)
   Unrealized gain (loss) on available-
       for-sale securities                            3,669            4,648           7,480           (3,948)
                                               ------------     ------------    ------------     ------------
    Comprehensive income                       $     33,735     $  1,798,774    $  3,880,480     $  1,038,672
                                               ============     ============    ============     ============
</TABLE>


                                       8
<PAGE>

6.       SEGMENT INFORMATION

The Company identifies its business segments based on management responsibility
using a combination of products and geographic factors. The Company has three
reportable segments: Mackie Designs Inc., its Italian subsidiary, Radio Cine
Forniture (RCF) S.p.A. ("RCF"), and its U.S. subsidiary, Eastern Acoustic Works,
Inc. ("EAW"). The Mackie segment offers audio mixers and other professional
audio equipment. The RCF segment offers loudspeakers, loudspeaker components and
Mackie product offerings through its subsidiaries. The EAW segment, acquired in
April 2000, offers loudspeakers targeted at the high-end of the installed and
touring sound markets. A summary of key financial data by segment is as follows:


<TABLE>
<CAPTION>
                                                                                           Elimination of
                                                                                            intercompany
                                                  Mackie           RCF             EAW         amounts        Total
                                               ----------------------------------------------------------------------
                                                                      (in thousands)
<S>                                            <C>            <C>            <C>            <C>            <C>
  THREE MONTHS ENDED SEPTEMBER 30, 2000:
     Net sales, to external customers          $   26,978     $   14,757     $    9,144     $     --       $   50,879
     Net sales, intersegment                        2,874          2,343            666         (5,883)          --
     Operating income / (loss)                      3,435            469            (23)          (459)         3,422
     Interest income                                  723            100           --             (725)            98
     Interest expense                                (667)          (870)          (426)           725         (1,238)
     Depreciation and amortization                    817            392            543           --            1,752
     Income taxes                                   1,003           (328)          (149)          --              526
     Purchases of property, plant
         & equipment                                1,389            491            150           --            2,030
     Total property, plant & equipment, net         8,642         10,140          3,319           --           22,101
     Total assets                                 114,679         76,025          6,461        (32,801)       164,364



  THREE MONTHS ENDED SEPTEMBER 30, 1999:
     Net sales, to external customers          $   25,368     $   14,976     $     --       $     --       $   40,344
     Net sales, intersegment                        1,962          1,245           --           (3,207)          --
     Operating income                               2,261            912           --             (360)         2,813
     Interest income                                  409             80           --             (321)           168
     Interest expense                                (222)          (776)          --              321           (677)
     Depreciation and amortization                    894            498           --             --            1,392
     Income taxes                                     525            592           --             --            1,117
     Purchases of property, plant
         & equipment                                  687                          --             --              687
     Total property, plant & equipment, net         9,322         12,595           --             --           21,917
     Total assets                                  60,914         67,244           --           (9,280)       118,878


                                       9
<PAGE>

  NINE MONTHS ENDED SEPTEMBER 30, 2000:
  Net sales to external customers              $   80,813     $   50,226     $   20,448     $     --       $  151,487
  Net sales, intersegment                           9,941          7,686          1,233        (18,860)          --
  Operating income / (loss)                        10,853          3,562           (159)        (1,544)        12,712
  Interest income                                   1,909            271           --           (1,739)           441
  Interest expense                                 (1,225)        (2,460)        (1,045)         1,739         (2,991)
  Depreciation and amortization                     3,080          1,525          1,038           --            5,643
  Income taxes                                      3,013          1,195           (503)          --            3,705
  Purchases of property, plant
      & equipment                                   2,987          1,141            492           --            4,620

  NINE MONTHS ENDED SEPTEMBER 30, 1999:
  Net sales to external customers              $   68,473     $   42,751     $     --       $     --       $  111,224
  Net sales, intersegment                           5,579          2,542           --           (8,121)          --
  Operating income                                  4,407            710           --             (751)         4,366
  Interest income                                   1,232            263           --             (964)           531
  Interest expense                                   (873)        (2,260)          --              964         (2,169)
  Depreciation and amortization                     2,788          1,476           --             --            4,264
  Income taxes                                      1,210            246           --             --            1,456
  Purchases of property, plant
      & equipment                                   1,146          1,016           --             --            2,162
</TABLE>


7.  CONTINGENCY

EAW has subrogated claims asserted against it from insurance companies who paid
claims made by EAW's landlord and other tenants in the building who were
affected by a fire started by a loaned employee in a portion of the building
occupied by EAW in 1996. The insurance company for the landlord alleges that EAW
is liable for up to $2.1 million for damages to the building. The Company
believes that these losses are not attributable to it under Massachusetts law.
The Company is vigorously defending these claims. The claims of the other
tenants have been covered by EAW's insurance carrier. The ultimate resolution of
this matter is not known at this time. No provision has been made in the
Company's consolidated financial statements related to these claims. Should EAW
be found liable for the claims, the obligation would result in an adjustment to
the allocation of the purchase price for EAW when it was acquired by the Company
in April 2000.

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


GENERAL

The following information includes forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. This Act provides a
"safe harbor" for forward-looking statements to encourage companies to provide
prospective information about themselves as long as they identify these
statements as forward-looking and provide meaningful cautionary statements
identifying important factors that could cause actual results to differ from the
projected results. All statements other than statements of historical fact made
in this Quarterly Report on Form 10-Q are forward-looking. In


                                       10
<PAGE>

particular, statements herein regarding future results of operations and
financial position, the Company's ability to develop and introduce new products,
the Company's ability to manage its rapid growth, its ability to integrate the
operations of RCF and EAW, the assessment of the Company's Euro compliance
exposures and completion of remediation efforts, and any other guidance on
future periods are forward-looking statements. The following discussions
describe some, but not all, of the factors that could cause the actual results
to differ materially from the forward-looking statements including, among
others, the following: international, national and local general economic and
market conditions; the size and growth of the professional audio equipment
market; competition with other marketers, distributors and sellers of
professional audio equipment; the Company's ability to develop and introduce new
products; the Company's ability to sustain, manage or forecast its growth and
inventories; the Company's ability to integrate the operations of companies
acquired; the Company's ability to secure and protect trademarks, patents, and
other intellectual property; the performance and reliability of the Company's
products; customer service; the loss of significant customers or suppliers;
dependence on distributors; management of increased costs of freight and
transportation; the Company's ability to meet delivery deadlines; general risks
associated with doing business in foreign countries, including, without
limitation, import duties, tariffs, foreign currency fluctuations, political and
economic instability; changes in government regulations; its ability to attract
and retain qualified employees; liability and other claims asserted against the
Company; and other factors referenced or incorporated by reference in this
report and other reports. The risks included here are not exhaustive. The
Company operates in a very competitive environment and new risk factors may
emerge from time to time. It is not possible for management to predict all such
risk factors, nor can it assess the impact of all such risk factors on the
Company's business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any
forward-looking statements. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a prediction of
actual results.

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

The Company's gross margins are affected by its international sales. Typically,
gross margins from exported products by Mackie have been lower than those sold
in the U.S. due to discounts offered to its international distributors. Neither
RCF nor EAW offer discounts to their distributors. The discounts offered by
Mackie are given because the international distributors typically incur certain
expenses, including technical support, product service and in-country
advertising, that the Company normally incurs for domestic sales. The Company
offered its international distributors a weighted-average discount of
approximately 4.6% in the first nine months of 2000 and 4.8% for the
corresponding period in 1999. Sales outside the U.S. remained unchanged at 48.0%
of the Company's total net sales in the first nine months of 2000 and 1999.

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
varying prices of components and competitive pressures.

The Company's gross margin was affected in the second quarter of 2000 by a
one-time write-up to inventory in EAW related to the acquisition. Purchase
accounting required an adjustment to opening inventory in EAW. The Company
recorded a $0.5 million write up to inventory, all of which was recognized as
cost of sales the second quarter of 2000.


                                       11
<PAGE>

RESULTS OF OPERATIONS

QUARTER ENDED SEPTEMBER 30, 2000 AS COMPARED WITH QUARTER ENDED SEPTEMBER 30,
1999

Net sales increased 26.3% to $50.9 million in the third quarter of 2000 from
$40.3 million in the third quarter of 1999. Of the $10.6 million increase, $9.4
million was attributable to the addition of EAW. New product offerings in the
mixer product families as well as the speaker product family accounted for an
additional $5.0 million of the growth. These increases were partially offset by
an unfavorable foreign exchange effect of $2.0 million and lower sales in the
digital market of $1.0 million. Sales outside the U.S. decreased to 45.2% of the
Company's total net sales in the third quarter of 2000 from 48.0% in the third
quarter of 1999. The decrease was due mainly to the inclusion of sales by EAW
whose sales outside of the U.S. comprised only 34.0% of its total net sales for
the third quarter of 2000.

Gross margin decreased slightly to 35.9% in the third quarter of 2000 from 36.3%
in the third quarter of 1999. This decline was primarily due to an unfavorable
foreign exchange effect on gross margin of approximately 1.8%, offset partially
by improved margins in the digital, speaker and mixer product families. Some of
these products were introduced in 1999 and the Company has begun to realize
efficiencies as it improves its manufacturing processes. Gross profit increased
to $18.3 million in the third quarter of 2000 from $14.7 million in the
corresponding period of 1999 for the same reasons affecting net sales noted
above.

Selling, general and administrative expense increased to $12.8 million in the
third quarter of 2000 from $10.2 million in the corresponding period of 1999. Of
the $2.6 million increase, $3.1 million is attributable to the inclusion of EAW
offset partially by a $0.6 million favorable impact of foreign exchange. As a
percentage of net sales, selling, general and administrative expenses were
unchanged at 25.2% for both quarterly periods.

Research and development expense increased to $2.0 million in the third quarter
of 2000 from $1.7 million in the corresponding period of 1999. Of the $0.3
million increase, $0.8 million is attributable to the inclusion of EAW offset
partially by lower spending at RCF. As a percentage of net sales, these expenses
decreased slightly to 4.0% in the third quarter of 2000 from 4.1% in the
corresponding period of 1999.

Interest income decreased to $0.1 million in the third quarter of 2000 compared
with $0.2 million in the third quarter of 1999 due to a decrease in invested
cash during the corresponding periods. Interest expense increased to $1.2
million in the third quarter of 2000 from $0.7 million in the corresponding
period of 1999. The increase was primarily attributable to the increase in
borrowings due to the purchase of EAW, increased short-term borrowing to fund
working capital needs and generally higher overall borrowing rates.

Other income (expense), net increased to ($0.8) million in the third quarter of
2000 compared with $0.5 million in the third quarter of 1999 due primarily to
the impact of foreign exchange on the revaluation of accounts payable and
accounts receivable balances. The Company currently does not employ any formal
foreign exchange hedging programs, but may do so in the future.

Income tax expense for the third quarter of 2000 was $0.5 million representing
an overall effective rate of 36.3% compared to a tax of $1.1 million and 39.5%
for the same period of 1999. The decrease in the effective tax rate was
primarily attributable to foreign operations.


                                       12
<PAGE>

NINE MONTHS ENDED SEPTEMBER 30, 2000 AS COMPARED WITH NINE MONTHS ENDED
SEPTEMBER 30, 1999

Net sales increased 36.2% to $151.5 million in the first nine months of 2000
from $111.2 million in the first nine months of 1999. Of the $40.3 million
increase, $21.0 million was attributable to the addition of EAW. New product
offerings in the mixer and speaker product families accounted for an additional
$19.5 million of the growth. These increases were partially offset by an
unfavorable foreign exchange effect of $6.9 million. Sales outside the U.S.
remained unchanged at 48.0% of the Company's total net sales in the first nine
months of 2000 and 1999.

Gross margin increased to 37.1% in the first nine months of 2000 from 36.0% in
the first nine months of 1999. This increase was primarily due to higher margins
in the digital, mixer, and speaker product families. Some of these products were
introduced in 1999 and the Company has begun to realize efficiencies as it
improves its manufacturing processes. These increases were partially offset by
an unfavorable impact of foreign exchange of approximately 2.3%. Gross profit
increased to $56.1 million in the first nine months of 2000 from $40.1 million
in the corresponding period of 1999 for the same reasons affecting net sales
noted above.

Selling, general and administrative expense increased to $36.7 million in the
first nine months of 2000 from $30.6 million in the corresponding period of
1999. Of the $6.1 million increase, $6.8 million is attributable to the
inclusion of EAW offset partially by a $1.9 million favorable impact of foreign
exchange. As a percentage of net sales, selling, general and administrative
expenses decreased to 24.2% in the first nine months of 2000 from 27.5% in the
corresponding period of 1999. The decline in the percentage is primarily
attributable to higher sales growth in relation to the relatively fixed nature
of selling, general and administrative expense.

Research and development expense increased to $6.7 million in the first nine
months of 2000 from $5.1 million in the corresponding period of 1999. Of the
$1.6 million increase, $1.5 million is attributable to the inclusion of EAW. As
a percentage of net sales, these expenses decreased slightly to 4.5% in the
first nine months of 2000 from 4.6% in the corresponding period of 1999.

Interest income decreased to $0.4 million in the first nine months of 2000
compared with $0.5 million in the first nine months of 1999 due to a decrease in
invested cash during the corresponding periods. Interest expense increased to
$3.0 million in the first nine months of 2000 from $2.2 million in the
corresponding period of 1999. The increase was primarily attributable to the
increase in borrowings due to the purchase of EAW, increased short-term
borrowing to fund working capital needs and generally higher overall borrowing
rates.

Other income (expense), net increased to ($0.9) million in the first nine months
of 2000 compared with $0.2 million in the corresponding period of 1999 due
primarily to the impact of foreign exchange on the revaluation of accounts
payable and accounts receivable balances. The Company currently does not employ
any formal foreign exchange hedging programs, but may do so in the future.

Income tax expense for the first nine months of 2000 was $3.7 million
representing an overall effective rate of 39.9% compared to a tax expense of
$1.5 million and an effective tax rate of 49.8% for the same period of 1999. The
Company incurred significant tax expense compared to pre-tax income for the
first nine months of 1999 due to its inability to take income tax benefits for
losses incurred by certain subsidiaries of RCF and because certain taxes in
Italy are not based solely on pre-tax income.


                                       13
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

The Company's operating activities used $4.9 million in cash during the first
nine months of 2000 due primarily to increases in inventory and accounts
receivable offset partially by net income and increases in accounts payable and
accrued expenses. Net cash used by investing activities totaled $19.2 million in
the first nine months of 2000, due to the purchase of EAW and acquisitions of
property, plant and equipment offset partially by maturities in excess of new
purchases of available-for-sale securities. Net cash provided by financing
activities in the first nine months of 2000 was $24.5 million, due principally
to proceeds from long-term debt, net proceeds from short-term borrowings and
proceeds from exercises of stock options offset partially by payments on
long-term debt.

In June 1998, the Company entered into a credit agreement with a bank to provide
certain credit facilities to the Company, including a $12.8 million loan for the
acquisition of RCF of which $10.5 million was outstanding at September 30, 2000.
The loan, which is secured by all of the Company's assets, bears interest at the
bank's prime rate, or at a specified LIBOR rate plus a specified margin,
whichever the Company chooses. Interest on the loan is payable monthly.
Principal is payable on September 30 of each year in installments equal to 1/7
of the amount borrowed. All outstanding principal and interest amounts are due
on September 30, 2003.

In April 2000, the Company borrowed long-term debt of $19.0 million in
connection with the acquisition of EAW (see Note 2 of Notes to Condensed
Consolidated Financial Statements and Form 8-K filed April 21, 2000). The
Company also paid off approximately $5.8 million of EAW's existing debt. Funding
for this pay down came from cash and investments. The loan, which is an
amendment to the June 1998 credit agreement, is also secured by all of the
Company's assets, bears interest at the bank's prime rate, or at a specified
LIBOR rate plus a specified margin, whichever the Company chooses. Interest on
the loan is payable monthly. Principal is payable on March 31 of each year
beginning in 2001 in installments equal to 1/7 of the amount borrowed. All
outstanding principal and interest amounts are due on September 30, 2003.

In September 2000, the Company restructured its U.S. line of credit. The new
line provides up to $15.0 million of short-term borrowing subject to certain
limitations. These limitations reduced the maximum allowable borrowing to
$11.5 million as of September 30, 2000. This line of credit, which is an
amendment to the June 1998 credit agreement, is secured by all of the
Company's U.S. based assets. At September 30, 2000, there was $6.6 million
outstanding on the line of credit, as well as a $1.5 million guarantee on
debt of RCF, leaving an available balance on the line of $3.3 million. This
credit facility expires April 30, 2002.

Under the terms of the June 1998 credit agreement and all related amendments,
the Company must maintain certain financial ratios and tangible net worth. The
agreements also provide, among other matters, restrictions on additional
financing, dividends, mergers, acquisitions, and an annual capital expenditure
limit of $15.0 million. The Company was in compliance with all covenants at
September 30, 2000.

RCF also has agreements with several banks in Italy that provide short-term
credit facilities totaling approximately $17.1 million. At September 30, 2000,
there was approximately $14.3 million outstanding under these facilities. The
majority of these credit facilities are secured by RCF's receivables. Interest
rates on these credit facilities range from 4.8% to 12.6%.

RCF also has various long-term loans outstanding at September 30, 2000, totaling
approximately $7.0 million, which bear interest at rates from .9% to 8.8%. These
loans, certain of which are secured by specific assets of RCF, mature at varying
dates up to 2007.


                                       14
<PAGE>

INFLATION

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.


EURO CONVERSION

European business systems are being forced to handle currencies in a new way
with the introduction of the Euro. RCF's existing computer system does not
support the Euro, and reprogramming the system is not an economically viable
option. Although the date for mandatory Euro compliance is January 1, 2002, it
is believed that the existing system can be utilized until early in the fourth
quarter 2001 after which time the transition to the new system would need to
begin. The Company has acquired an Oracle based software system and is in the
process of purchasing the computer hardware to run a single system for all
worldwide operations. Implementation procedures related to the system have
begun. This system will be Euro compliant and is scheduled to be in place in
Italy prior to the fourth quarter 2001. The cost of this system is preliminarily
estimated to be in the range of $6.0 to $7.0 million dollars.

NEW ACCOUNTING PRONOUNCEMENTS

In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133 is
effective for fiscal years beginning after June 15, 2000. SFAS No. 133, as
amended, requires that all derivative instruments be recorded on the balance
sheet at their fair value. Changes in the fair value of derivatives are recorded
each period in current earnings or other comprehensive income, depending on
whether a derivative is designated as part of a hedge transaction and, if it is,
the type of hedge transaction. The Company does not expect that the adoption of
SFAS No. 133 will have a material impact on its consolidated financial
statements because the Company does not currently hold any derivative
instruments.

In June 2000, the Securities and Exchange Commission (SEC) issued Staff
Accounting Bulletin (SAB) No. 101B. SAB 101B delays the effective date of SAB
101, "Revenue Recognition in Financial Statements," until no later than the
fourth fiscal quarter of fiscal years beginning after December 15, 1999. SAB 101
provides guidance on revenue recognition and the SEC staff's views on the
application of accounting principles to selected revenue recognition issues. The
Company does not expect that the adoption of SAB 101 will have a material impact
on its consolidated financial statements.

In September 2000, the Emerging Issues Task Force (EITF) reached consensus on
Issue No. 00-10, "Accounting for Shipping and Handling Fees and Costs." Issue
No. 00-10 deals with the accounting for income billed and costs related to
shipping and handling charges on processing and delivery of customer orders.
Historically, accounting for these elements varied significantly from company
to company. Application of 00-10 is required no later than the fourth fiscal
quarter of fiscal years beginning after December 15, 1999. The EITF concluded
that amounts directly billed to customers for shipping and handling should be
classified as revenue and that the related costs to provide such services may
be classified as cost of sales. The Company currently nets these elements as
selling, general and administrative (SG&A) expense and plans to record
amounts directly billed as revenue and costs to provide such services as cost
of sales in the future. Application of Issue No. 00-10 will cause
restatements of net sales, cost of sales and SG&A expense.

The following restatements would occur upon application of Issue No. 00-10 for
the three and nine-month periods ended September 30, 2000 and 1999. Net sales
would increase $2.0 million to $153.5 million for the first nine months of 2000
and $2.0 million to $113.3 million for the corresponding period in 1999. Net
sales would increase $0.6 million to $51.4 million for the third quarter of 2000
and $0.6 million to $41.0 million for the corresponding period in 1999. Cost of
sales would increase $2.7 million to $98.1 million for the first nine months of
2000 and $4.1 million to $75.3 million for the corresponding period in 1999.
Cost of sales would increase $1.1 million to $33.7 million for the third quarter
of 2000 and $1.4 million to $27.1 million for the corresponding period in 1999.
SG&A expense would decrease $0.7 million to $36.0 million for the first nine
months of 2000 and $2.1 million to $28.5 million for the


                                       15
<PAGE>

corresponding period in 1999. SG&A expense would decrease $0.5 million to $12.3
million for the third quarter of 2000 and $0.8 million to $9.4 million for the
corresponding period in 1999.

In March 2000, the Financial Accounting Standards Board issued Interpretation
No. 44 (FIN 44), "Accounting for Certain Transactions involving Stock
Compensation." FIN 44 clarifies the application of Accounting Principles Board
Opinion No. 25 (APB 25) and was effective July 1, 2000. FIN 44 clarifies the
definition of "employee" for purposes of applying APB 25, the criteria for
determining whether a plan qualifies as a noncompensatory plan, the accounting
consequence of various modifications to the terms of a previously fixed stock
option or award, and the accounting for an exchange of stock compensation awards
in a business combination. The adoption of FIN 44 did not have a material impact
on the Company's consolidated financial statements.



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTEREST RATE RISK

The Company did not have any derivative financial instruments as of September
30, 2000. However, the Company is exposed to interest rate risk. The Company's
interest income and expense are most sensitive to changes in the general level
of U.S. and European interest rates. In this regard, changes in U.S. and
European interest rates affect the interest earned on the Company's cash
equivalents and available-for-sale securities as well as interest paid on debt.

At September 30, 2000, the Company had cash and cash equivalents and
available-for-sale securities of $5.1 million and short-term borrowings of $27.8
million, all subject to variable short-term interest rates. A hypothetical
change in the interest rate of 10% (for example from 8% to 8.8%) would not have
a material effect on the Company's earnings for the nine month period ended
September 30, 2000.

The Company has lines of credit and other debt whose interest rates are based on
various published prime rates that may fluctuate over time based on economic
changes in the environment. The Company is subject to interest rate risk, and
could be subject to increased interest payments if market interest rates
fluctuate. The Company does not expect changes in the interest rates to have a
material adverse effect on the Company's results of operations.

FOREIGN CURRENCY RISK

The Company operates foreign subsidiaries in Canada, Italy, the United Kingdom,
Germany, France, the Netherlands, China and the Czech Republic. The Company's
business and financial condition are, therefore, sensitive to currency exchange
rates or any other restrictions imposed on their currencies. Sales and expenses
incurred by foreign subsidiaries are denominated in the subsidiary's local
currency and translated into U.S. Dollar amounts at average rates during the
period. The Company does not employ any derivative based hedging strategies,
however, it has a significant natural hedge in the form of Italian based
manufacturing and European based operating, interest and tax expenses.

Foreign exchange rate sensitivity analysis can be quantified by estimating the
impact on the Company's earnings as a result of hypothetical changes in the
value of the U.S. Dollar, the Company's functional currency, relative to the
other currencies in which the Company transacts business. All other things being
equal, an average 10% increase in the value of the U.S. Dollar, throughout the
nine month period ended September 30, 2000, would have had the effect of
reducing net income approximately $0.7 million.


                                       16
<PAGE>

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The Company is involved in various legal proceedings and claims that arise in
the ordinary course of business. Management currently believes that these
matters will not have a material adverse impact on the Company's financial
position, liquidity or results of operations.

There have been no material changes from the information previously reported
under Item 1 of Part II of the Company's Form 10-Q filed on August 14, 2000.



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

         *27                        Financial Data Schedule

     *FILED HEREWITH


                                       17
<PAGE>

                                   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 14, 2000               By:  /s/ William A. Garrard
                                             -----------------------------------
                                             William A. Garrard
                                             VICE PRESIDENT, FINANCE AND CHIEF
                                             FINANCIAL OFFICER
                                             (Principal Financial and Accounting
                                             Officer)


                                       18