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

                                    FORM 10-Q

[X]    QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15(d)  OF THE  SECURITIES
       EXCHANGE ACT OF 1934 For the Fiscal Quarter Ended June 30, 2000

                                       or

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

              For the Transition period from ________ to ________.
                         Commission file number: 0-26620

                                   ACCOM, INC.
             (Exact name of registrant as specified in its charter)

              Delaware                                       94-3055907
   (State or other jurisdiction of                          (IRS Employer
   incorporation or organization)                      Identification Number)

                               1490 O'Brien Drive
                          Menlo Park, California 94025
                    (Address of principal executive offices)

              Registrant's telephone number, including area code:
                                 (650) 328-3818

          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 at least the past 90 days.

          Yes                                                    No  X
              ---                                                   ---


As of August 4, 2000, 10,195,673 shares of the Registrant's common stock, $0.001
par value, were outstanding.


<PAGE>


                              ACCOM, INC.

             FORM 10-Q For the Quarter Ended June 30, 2000
<TABLE>
<CAPTION>

                                 INDEX

                                                                                        Page
<S>            <C>                                                                       <C>

               Facing sheet                                                               1
               Index                                                                      2
Part I.        Financial Information (unaudited)

Item 1.        a)   Condensed consolidated interim balance sheets at June 30,
                    2000 and December 31, 1999                                            3

               b)   Condensed consolidated interim  statements  of operations
                    for the three and six month  periods ended June 30, 2000
                    and June 30, 1999                                                     4

               c)   Condensed consolidated interim statements of cash flows  for
                    the six month periods ended June 30, 2000 and June 30, 1999           5

               d)   Notes to condensed consolidated interim financial statements          6

Item 2.        Management's Discussion and Analysis of Financial Condition
               and Results of Operations                                                  9
Item 3         Quantitative and Qualitative Disclosures About Market Risks               15
Part II.       Other Information                                                         16
Item 1         Legal Proceedings                                                         16
Item 2         Changes in Securities and Use of Proceeds                                 16
Item 3         Defaults Upon Senior Securities                                           16
Item 4         Submission of Matters to a Vote of Security Holders                       16
Item 5         Other Information                                                         16
Item 6         Exhibits and Reports on Form 8-K                                          16
               Signature                                                                 18
</TABLE>


                                 -2-
<PAGE>


                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements
<TABLE>
                                   ACCOM, INC.

                  CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

                      (In thousands, except per share data)
<CAPTION>
                                                                                         As of
                                                                                   --------------------
                                                                                   June 30,  December 31,
                                                                                     2000       1999
                                                                                   (Unaudited) (Note)
<S>                                                                                <C>         <C>
                                    Assets

Current assets:
     Cash and cash equivalents                                                     $   --      $    328
     Accounts receivable, net                                                         4,690       1,616
     Inventories                                                                      3,243       5,112
     Other current assets                                                               629         580
                                                                                   --------    --------
         Total current assets                                                         8,562       7,636
Property and equipment, net                                                           2,382       2,343
Intangibles, net                                                                      1,785       1,986
Restricted cash                                                                       1,584        --
Other assets                                                                             51          70
                                                                                   --------    --------
         Total assets                                                              $ 14,364    $ 12,035
                                                                                   ========    ========

                     Liabilities and Stockholders' Equity

Current liabilities:
     Bank borrowings - line of credit                                              $     55    $    559
     Bank borrowings - in transit (cash overdraft)                                      513        --
     Current portion of notes payable                                                   708       1,315
     Accounts  payable                                                                2,291       2,560
     Accrued liabilities                                                              2,488       2,037
     Customer deposits                                                                  893         965
                                                                                   --------    --------
         Total current liabilities                                                    6,948       7,436
Long-term portion of notes payable                                                    3,290       3,261
Stockholders' equity:
     Common stock, $0.001 par value; 40,000 shares authorized; 10,196 and 10,133
         shares issued and outstanding on
         June 30, 2000 and December 31, 1999, respectively                           24,251      24,201
     Notes receivable from stockholders                                               (500)       (630)
     Accumulated deficit                                                            (19,625)    (22,233)
                                                                                   --------    --------
         Total stockholders' equity                                                   4,126       1,338
                                                                                   --------    --------

         Total liabilities and stockholders' equity                                $ 14,364    $ 12,035
                                                                                   ========    ========
<FN>
Note:    The  condensed  consolidated  balance  sheet at December  31,  1999,  has been derived from the
         audited  annual  consolidated  balance  sheet at that  date but  does  not  include  all of the
         information and footnotes required by generally accepted  accounting  principles for a complete
         consolidated balance sheet.

         The accompanying notes are an integral part of  these condensed  consolidated interim financial
         statements.
</FN>
</TABLE>


                                                  -3-
<PAGE>


<TABLE>
                                   ACCOM, INC.
             CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)

                                   (Unaudited)
<CAPTION>
                                              Three Months Ended        Six Months Ended
                                                   June 30,                 June 30,

                                               2000        1999        2000        1999
                                             --------    --------    --------    --------
<S>                                          <C>         <C>         <C>         <C>
Net sales                                    $  8,072    $  8,348    $ 16,475    $ 17,886

Cost of sales                                   3,732       3,870       7,519       7,929
                                             --------------------------------------------

Gross profit                                    4,340       4,478       8,956       9,957
                                             --------------------------------------------

Operating expenses:
     Research and development                   1,482       1,836       3,278       3,781
     Marketing and sales                        2,100       2,339       4,336       4,439
     General and administrative                   856         840       1,509       1,647
                                             --------------------------------------------

Total operating expenses                        4,438       5,015       9,123       9,867
                                             --------------------------------------------

Operating income (loss)                           (98)       (537)       (167)         90

      Interest and other income
       (expenses), net                            (11)        (62)        (52)       (173)
      Sale of ELSET product line                 --          --         2,888        --
                                             --------------------------------------------

Income before (provision for) benefit from
     income taxes                                (109)       (599)      2,669         (83)

(Provision for) benefit from income taxes          11        --           (43)         (2)
                                             --------------------------------------------

Net income (loss)                            $    (98)   $   (599)   $  2,626    $    (85)
                                             ============================================

Net income (loss) per share - basic          $  (0.01)   $  (0.06)   $   0.26    $  (0.01)
                                             ============================================
Net income (loss) per share - diluted        $  (0.01)   $  (0.06)   $   0.24    $  (0.01)
                                             ============================================
Shares used in computation of net
     income (loss) per share - basic           10,190      10,123      10,163      10,123
                                             ============================================
Shares used in computation of net
     income (loss) per share - diluted         10,190      10,123      11,589      10,123
                                             ============================================
<FN>
     The accompanying notes are an integral part of these condensed consolidated interim
     financial statements.
</FN>
</TABLE>


                                                  -4-
<PAGE>

<TABLE>
                                   ACCOM, INC.
             CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
                                 (In thousands)

                                   (Unaudited)
<CAPTION>
                                                                                    Six Months Ended
                                                                                         June 30,
                                                                                      2000       1999
                                                                                   -------    -------
<S>                                                                                <C>        <C>
Cash flows from operating activities:

Net income (loss)                                                                  $ 2,626    $   (85)
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
     Depreciation and amortization                                                     474        821
     Gain on sale of ELSET product line                                             (2,888)      --
     Changes in operating assets and liabilities,  net of the effect of the sale
     of the ELSET product line:

         Accounts receivable                                                        (3,074)      (562)
         Inventories                                                                 1,869      1,756
         Other current assets                                                          (49)      (559)
         Other assets                                                                   19         (3)
         Accounts payable                                                             (269)       297
         Accrued liabilities                                                          (262)      (606)
         Customer deposits                                                             (72)      (388)
                                                                                   -------    -------
           Net cash provided by (used in) operating activities                      (1,626)       671
                                                                                   -------    -------

Cash flows from investing activities:

Expenditures for property and equipment                                               (127)      (256)
Proceeds from disposal of property and equipment, net of the effect of the sale
     of the ELSET product line                                                          15        347
Increase in customer service inventories                                              (305)      --
                                                                                   -------    -------
           Net cash provided by (used in) investing activities                        (417)        91
                                                                                   -------    -------

Cash flows from financing activities:

Borrowings and payments on line of credit, net                                        (504)    (3,916)
Bank borrowings in transit (cash overdraft)                                            513       --
Repayment of notes payable                                                            (607)      (300)
Proceeds from long-term notes                                                           29      3,299
Issuance of common stock                                                                50       --
Restricted cash                                                                     (1,584)     1,132
Repayment of notes receivable from stockholders                                        130       --
Net proceeds from sale of ELSET product line                                         3,688       --
                                                                                   -------    -------
           Net cash provided by financing activities                                 1,715        215
                                                                                   -------    -------

Net increase (decrease) in cash and cash equivalents                                  (328)       977
Cash and cash equivalents at beginning of period                                       328       --
                                                                                   -------    -------
           Cash and cash equivalents at end of period                              $  --      $   977
                                                                                   =======    =======
<FN>
     The accompanying notes are an integral part of these condensed consolidated interim financial statements
</FN>
</TABLE>


                                                  -5-
<PAGE>



          NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1.  Basis of Preparation

         The condensed  consolidated  interim balance sheet as of June 30, 2000,
the condensed  consolidated  interim  statements of operations for the three and
six month  periods  ended June 30,  2000 and June 30,  1999,  and the  condensed
consolidated  interim  statements  of cash flows for the six month periods ended
June 30,  2000 and June 30,  1999,  have been  prepared  by the  Company and are
unaudited.  In the opinion of management,  all adjustments (consisting of normal
accruals) necessary to present fairly the financial position as of June 30, 2000
and the results of operations and cash flows for all periods presented have been
made.

         These condensed  consolidated  interim  financial  statements should be
reviewed  in  conjunction  with  the  audited   consolidated   annual  financial
statements  and notes thereto  included in the  Company's  Annual Report on Form
10-K for the year ended  December 31, 1999.  The results of  operations  for the
three and six month periods ended June 30, 2000, are not necessarily  indicative
of the operating results for any future period.

Note 2.  Revenue Recognition

         Revenue from sales of products is recognized when  persuasive  evidence
of an  arrangement  exists  including a fixed price to the buyer,  delivery  has
occurred  and  collectibility  is  reasonably  assured.  In December  1999,  the
Securities and Exchange  Commission  issued Staff  Accounting  Bulletin No. 101,
"Revenue  Recognition  in Financial  Statements"  ("SAB 101").  SAB 101 provides
guidance on the recognition, presentation and disclosure of revenue in financial
statements.  The Company is  required to adopt SAB 101 in the fourth  quarter of
fiscal 2000.  The Company  believes that the adoption of this statement will not
have a material impact on its financial statements.

Note 3.  Comprehensive Income

         Comprehensive income is equal to net income for the three and six month
periods ended June 30, 2000 and 1999.

Note 4.  Inventories

         Inventories consist of the following (in thousands):

                                                      June 30,  December 31,

                                                       2000           1999
                                                     ------         ------

      Purchased parts and materials                  $  830         $1,656
      Work-in-process                                 1,228          1,634
      Finished goods                                     65            369
      Demonstration inventory                         1,120          1,453
                                                     ------         ------
                                                     $3,243         $5,112
                                                     ======         ======

Note 5.  Debt

         The Company has a revolving line of credit  ("line") with The Provident
Bank  ("Provident")  that allows for borrowings subject to the level of eligible
accounts  receivable.  Borrowings  are limited to a maximum of $1.5 million as a
result of the Company's failure to meet certain financial  covenants as of April
30, 2000.  On August 11,  2000,  Provident  and the Company  agreed to amend the
original


                                      -6-
<PAGE>

agreement which established the line of credit.  The amendment  provides for the
following  changes to the terms of the line of  credit:  (a) the  interest  rate
charged on borrowings under the line is equal to Provident's prime rate plus 225
basis points, an increase of 100 points from the original rate; (b) the maturity
date of all borrowings  under the line is changed from March 1, 2003 to June 30,
2001; and (c) certain financial  covenants are amended  retroactive to April 30,
2000.  With the  change in  covenants,  the  Company is in  compliance  with the
covenants as of June 30, 2000.

         As of June 30, 2000, the Company had availability of $1.4 million under
the line;  the balance  outstanding  was $55,000.  In addition,  as of that same
date, the Company had increased borrowings from Provident under the terms of the
line  in  the  amount  of  $513,000  to  cover  outstanding  checks.   Provident
transferred  the  requested  funds to the Company on the first  business  day in
July.  Borrowings  under the line are secured by all the assets of the  Company.
Borrowings  under the line are  subject to  compliance  with  certain  financial
covenants.

         On March 12, 1999,  the Company  completed a private  placement of $3.5
million in senior  subordinated  convertible notes with a group of investors led
by the American  Bankers'  Insurance Group, Inc.  ("ABIG").  The notes currently
have a coupon rate of 8% per year, mature in the year 2004, and are convertible,
at any time,  into shares of Accom  common  stock at a price of $1.30 per share.
The proceeds from these notes were used to repay the balance then outstanding on
a line of credit with LaSalle  Business  Credit,  Inc.  that was in place at the
time the proceeds were received.

         The agreement  between the Company and ABIG  specifies that the Company
meet  certain  financial  covenants.  ABIG has the  right to  declare  the notes
immediately  due if the covenants are not met. As of June 30, 2000,  the Company
was not in compliance with the covenants. On July 19, 2000, ABIG issued a waiver
for  non-compliance  as of June 30, 2000. In addition,  on November 3, 1999, and
February  10,  2000,  ABIG  amended and issued  certain  waivers to the original
agreement and on April 18, 2000, granted a waiver for non-compliance.

         In conjunction with the sale of convertible  notes, the Company and the
investors  entered into an  Investors  Rights  Agreement.  The  Investors  Right
Agreement grants the investors,  among other things, certain rights with respect
to the common stock of the Company issuable upon conversion of the notes.

         The Company has a subordinated  promissory  note of $750,000  issued to
Scitex Digital Video, Inc. ("SDV") as partial  consideration for the purchase of
certain assets and liabilities and the business of SDV in December 1998. Payment
of the  note was due in  April  2000.  Principal  was to be paid  together  with
interest in arrears on the unpaid principal  balance at a variable rate equal to
the Merrill Lynch Money Market Rate. In April 2000, the Company paid SDV $89,000
as settlement of the note. The remaining  balance due,  approximately  $710,000,
was retained by the Company for settlement of indemnification claims relating to
the  purchase  of  SDV  which  were  identified  in  the  period  following  the
acquisition.  The remaining  funds are held in a bank account  controlled by the
Company. SDV is evaluating the Company's claims.

         A second note in the amount of $1,315,000  was issued to Scitex Digital
Video,  Inc. as partial  consideration  for the  purchase of certain  assets and
liabilities  and the business of SDV in December 1998.  During the quarter ended
March 31,  2000,  the Company  paid off this note by issuing  payments to SDV of
$587,000,  consisting  of  $565,000  in  payments  of  principal  and $21,000 in
payments of interest.


                                      -7-
<PAGE>


Note 6.  Net Income Per Share
<TABLE>
         The following table sets forth the computation of basic and diluted net
income (loss) per share (in thousands, except for per share amounts):
<CAPTION>
                                                                              For the Three Months     For The Six Months
                                                                                  Ended June 30,         Ended June 30,
                                                                                2000        1999        2000       1999
                                                                            --------    --------    --------   --------
<S>                                                                         <C>         <C>         <C>        <C>
Numerator
Numerator for basic net income (loss) per share-net income (loss)           $    (98)   $   (599)   $  2,626   $    (85)
Effect of dilutive securities:

           8% convertible notes                                                 --          --           165       --
                                                                            --------    --------    --------   --------
Numerator for diluted net income (loss) per share-income available to
   stockholders after assumed conversions                                   $    (98)   $   (599)   $  2,791   $    (85)

Denominator
Denominator for basic net income (loss) per share-weighted average shares     10,190      10,123      10,163     10,123

Effect of dilutive securities:

           Employee stock options                                               --          --           867       --

           Warrants                                                             --          --            91       --

           8% convertible notes                                                 --          --           468       --
                                                                            --------    --------    --------   --------
Denominator for diluted net income (loss) per share-weighted average
   shares and assumed conversions                                             10,190      10,123      11,589     10,123

Basic net income (loss) per share                                           $  (0.01)      (0.06)   $   0.26   $  (0.01)
                                                                            ========    ========    ========   ========
Diluted net income (loss) per share                                         $  (0.01)   $  (0.06)   $   0.24   $  (0.01)
                                                                            ========    ========    ========   ========
</TABLE>
Note 7.  Segment Information

         Management  has organized  the business into three market  sub-segments
under one industry  segment which includes  activities  relating to development,
manufacturing  and marketing of digital  video  equipment.  The chief  operating
decision maker relies primarily on revenue to assess market segment performance.
The following table presents revenue by market (in thousands):

                  For the Three Months    For the Six Months
                          Ended                  Ended
                         June 30,               June 30,
       Market        2000      1999          2000      1999
      -------     -------   -------       -------   -------

Post-Production   $ 4,308   $ 5,009       $ 9,024   $11,612
Distribution        2,791     2,316         5,404     4,203
Other                 973     1,023         2,047     2,071
                  -------   -------       -------   -------
                  $ 8,072   $ 8,348       $16,475   $17,886
                  =======   =======       =======   =======

Substantially all of the Company's assets are in the United States. All sales to
external customers are accepted and approved in the United States.


                                      -8-
<PAGE>



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

         The  following  Management's   Discussion  and  Analysis  of  Financial
Condition  and  Results of  Operations  should be read in  conjunction  with the
Company's Consolidated Financial Statements as of December 31, 1999 and 1998 and
September  30, 1998 and 1997 and for the twelve  months ended  December 31, 1999
and 1998, the three months ended December 31, 1999 and 1998 and the fiscal years
ended September 30, 1998 and 1997 included in its Annual Report on Form 10-K for
the year ended December 31, 1999.

         Additionally,  the following  Management's  Discussion  and Analysis of
Financial Condition and Results of Operations  contains certain  forward-looking
statements.  The  Company  desires  to  take  advantage  of  the  "safe  harbor"
provisions   of  the  Private   Securities   Litigation   Reform  Act  of  1995.
Specifically,  the Company wishes to alert readers that the factors set forth in
the Company's  Annual Report on Form 10-K for the year ended  December 31, 1999,
under  the  sections  in  Item  1  entitled   "Manufacturing   and   Suppliers,"
"Competition,"  "Proprietary  Rights and Licenses" and "Additional  Factors That
May Affect  Future  Results,"  as well as other  factors,  could  affect  future
results and have  affected the  Company's  actual  results in the past and could
cause the  Company's  results for future years or quarters to differ  materially
from those expressed in any  forward-looking  statements made by or on behalf of
the Company, including without limitation,  those contained in this 10-Q report.
Forward-looking  statements can be identified by  forward-looking  words such as
"may," "will," "expect," "anticipate,"  "believe," "estimate," and "continue" or
similar words.

Overview

         Accom  designs,  manufactures,  sells,  and supports a complete line of
digital video signal processing,  editing,  and disk recording tools,  primarily
for the worldwide  professional  video post-  production,  live broadcasting and
computer video post-production marketplaces.  The Company's systems are designed
to be used by video  professionals  to create,  edit and broadcast  high quality
video  content such as television  shows,  commercials,  news,  music videos and
video games.
<TABLE>
         The following table  summarizes the Company's  products and the primary
marketplaces they address:
<CAPTION>
  -----------------------------------------------------------------------------------------------------------------
                 MARKETS / Product                                    Primary Applications
  -----------------------------------------------------------------------------------------------------------------
<S>                                                         <C>
  POST-PRODUCTION:
  -----------------------------------------------------------------------------------------------------------------
    Digital Signal Processors
  -----------------------------------------------------------------------------------------------------------------
       8150 Digital                                         Digital switcher for on-line post-production editing
       Switcher                                             for commercials and long form television programs
  -----------------------------------------------------------------------------------------------------------------
    Digital Editors
  -----------------------------------------------------------------------------------------------------------------
       Axial(R)3000                                         Edit controller for on-line post-production editing
                                                            for commercials and long form television programs
  -----------------------------------------------------------------------------------------------------------------
       Sphere(TM)                                           Integrated non-linear editing workstation for long
                                                            and short form programs and commercials using
                                                            compressed video
  -----------------------------------------------------------------------------------------------------------------
       AFFINITY(TM)                                         Integrated non-linear workstation for long and short
                                                            form programs and commercials using multiple streams
                                                            of uncompressed video
  -----------------------------------------------------------------------------------------------------------------
   Video Digital Disk Recorders
  -----------------------------------------------------------------------------------------------------------------
       APR(TM)/Attache                                      On-line post-production editing and effects and
                                                            on-air playback of graphics for broadcast
  -----------------------------------------------------------------------------------------------------------------
       WSD(R)2Xtreme                                        Desktop computer graphics and animation production
  -----------------------------------------------------------------------------------------------------------------
  DISTRIBUTION:
  -----------------------------------------------------------------------------------------------------------------
    Digital Signal Processors
  -----------------------------------------------------------------------------------------------------------------
       Dveous(TM)and Brutus                                 Digital Video Effects systems for news and sports
  -----------------------------------------------------------------------------------------------------------------
       Axess(TM)                                            Creation and broadcast distribution of news graphics
                                                            and short video segments
  -----------------------------------------------------------------------------------------------------------------
       Abekas(R)6000                                        Multi-user digital video server for broadcast
                                                            applications
  -----------------------------------------------------------------------------------------------------------------
</TABLE>


                                      -9-
<PAGE>
\
         The Company's  revenues are currently  derived  primarily  from product
sales.

         The Company's gross margin has historically  fluctuated from quarter to
quarter.  Gross  margins  are  dependent  on the mix of higher and  lower-priced
products  having  various gross margin  percentages  and the percentage of sales
made through direct and indirect distribution channels.

Results of Operations

Three Months Ended June 30, 2000 and June 30, 1999
<TABLE>

         The  following  table  presents the  Company's  Condensed  Consolidated
Interim  Statements of  Operations  for the three months ended June 30, 2000 and
1999 as reported (dollar amounts in thousands, except per share data):
<CAPTION>
                                                            Three Months Ended
                                                            -----------------
                                                                June 30,        Increase   (Decrease)
                                                            2000       1999      Amount     Percent
                                                           -------    -------    -------     ------
<S>                                                        <C>        <C>         <C>        <C>
Net sales                                                  $ 8,072    $ 8,348   $ (276)       (3.3)%
Cost of sales                                                3,732      3,870     (138)       (3.6)%
                                                           -------    -------    -------     ------
Gross profit                                                 4,340      4,478     (138)       (3.1)%
Operating expenses:
  Research and development                                   1,482      1,836     (354)      (19.3)%
  Marketing and sales                                        2,100      2,339     (239)      (10.2)%
  General and administrative                                   856        840       16         1.9%
                                                           -------    -------    -------     ------
Total operating expenses                                     4,438      5,015     (577)      (11.5)%
                                                           -------    -------    -------     ------
Operating income (loss)                                        (98)      (537)     439        81.8%
Interest and other income (expenses), net                      (11)       (62)      51        82.3%
                                                           -------    -------    -------     ------
Income before  (provision for) benefit from income taxes      (109)      (599)     490        81.8%
(Provision for) benefit from income taxes                       11         --       11         N/A
                                                           -------    -------    -------     ------
Net income (loss)                                          $   (98)   $  (599)  $  501        83.6%
                                                           =======    =======    =======     ======
</TABLE>
<TABLE>
         The  following  table  presents the  Company's  Condensed  Consolidated
Interim  Statements of  Operations  for the three months ended June 30, 2000 and
1999, as a percentage of net sales, as reported:
<CAPTION>
                                                             Three Months Ended
                                                                  June 30,         Increase
                                                              2000        1999    (Decrease)
                                                              -----       -----     -----
<S>                                                           <C>         <C>        <C>
Net sales                                                     100.0%      100.0%       --%
Cost of sales                                                  46.2%       46.4%     (0.2)%
                                                              -----       -----      -----
Gross margin                                                   53.8%       53.6%      0.2%
Operating expenses:
      Research and development                                 18.4%       22.0%     (3.6)%
      Marketing and sales                                      26.0%       28.0%     (2.0)%
      General and administrative                               10.6%       10.1%      0.5%
                                                              -----       -----     -----
Total operating expenses                                       55.0%       60.1%     (5.1)%
                                                              -----       -----     -----
Operating income (loss)                                        (1.2)%      (6.5)%     5.3%
Interest and other income (expenses),  net                     (0.1)%      (0.7)%     0.6%
                                                              -----       -----     -----
Income before (provision for) benefit from income taxes        (1.3)%      (7.2)%     5.9%
(Provision for) benefit from income taxes                       0.1%         --%      0.1%
                                                              -----       -----     -----
Net income (loss)                                              (1.2)%      (7.2)%     6.0%
                                                              =====       =====     =====
</TABLE>

         Net sales. The decrease in net sales during the three months ended June
30, 2000, from levels for the same period in 1999 was primarily due to decreased
sales in the  post-production  marketplace.  Sales to  countries  outside  North
America for the three months ended June 30, 2000 and 1999, represented 40.2% and
31.9% of net sales, respectively.


                                      -10-
<PAGE>

         The  following  table  presents net sales  dollar  volume for the three
months ended June 30, 2000 and 1999, by market and related  percentages of total
net sales (dollar amounts in thousands):

                                          Three Months Ended
                                               June 30,
                                 2000                            1999
                                 ----                            ----
     Marketplace        Amount            Percent      Amount           Percent
     -----------        ------            -------      ------           -------

Post-Production         $4,308             53.4%       $5,009             60.0%
Distribution             2,791             34.6%        2,316             27.7%
Other                      973             12.0%        1,023             12.3%
                        ------            ------       ------            ------
                        $8,072            100.0%       $8,348            100.0%
                        ======            ======       ======            ======

         Cost of sales.  Cost of sales, as a percentage of sales,  was unchanged
for the three months ended June 30, 2000, from levels for the three months ended
June 30, 1999.

         Research and  development.  Research and  development  expenses for the
three months ended June 30, 2000,  decreased  over levels for the same period in
1999 primarily due to the decrease in headcount  which resulted from the sale of
the ELSET  virtual set product line in January  2000,  a decrease in  consultant
expenses, and a reduction in project-related materials expenses.

         Marketing and sales.  Marketing and sales expenses for the three months
ended June 30, 2000,  decreased  over levels for the three months ended June 30,
1999, primarily due to decreases in headcount, commission expenses, and expenses
related to demonstration equipment.

         General  and  administrative.   General  and  administrative   expenses
increased  for the three months  ended June 30,  2000,  from levels for the same
period in 1999 primarily due to increases in legal and accounting expenses.

         Interest and other income, net. Interest and other income, net, for the
three  months ended June 30,  2000,  increased  over levels for the three months
ended June 30, 1999, due to an increase in interest income from interest-bearing
cash accounts and notes due from directors and officers and an increase in other
income.

         Provision for income  taxes.  For the three months ended June 30, 2000,
the benefit from income taxes consists of tax expense calculated at an effective
rate lower than the statutory  rate of 35% due to  realization  of net operating
loss carryforwards. For the three months ended June 30, 1999, the Company had an
effective rate of 0% reflecting  the Company's net operating  loss  carryforward
position.


                                      -11-
<PAGE>

Results of Operations

Six Months Ended June 30, 2000 and June 30, 1999
<TABLE>
         The  following  table  presents the  Company's  Condensed  Consolidated
Interim Statements of Operations for the six months ended June 30, 2000 and 1999
as reported (dollar amounts in thousands, except per share data):
<CAPTION>
                                                            Six Months Ended
                                                                  June 30,         Increase  (Decrease)
                                                              2000        1999      Amount     Percent
                                                          --------    --------    --------     --------
<S>                                                       <C>         <C>         <C>           <C>
Net sales                                                 $ 16,475    $ 17,886    $ (1,411)      (7.9)%
Cost of sales                                                7,519       7,929        (410)      (5.2)%
                                                          --------    --------    --------     --------
Gross profit                                                 8,956       9,957      (1,001)     (10.1)%
Operating expenses:
  Research and development                                   3,278       3,781        (503)     (13.3)%
  Marketing and sales                                        4,336       4,439        (103)      (2.3)%
  General and administrative                                 1,509       1,647        (138)      (8.4)%
                                                          --------    --------    --------     --------
Total operating expenses                                     9,123       9,867        (744)      (7.5)%
                                                          --------    --------    --------     --------
Operating income (loss)                                       (167)         90        (257)    (285.6)%
Interest and other income (expenses), net                      (52)       (173)        121       69.9%
Sale of ELSET product line                                   2,888         --        2,888        N/A
                                                          --------    --------    --------    ---------
Income before (provision for) benefit from income taxes      2,669         (83)      2,752    3,315.7%
(Provision for) benefit from income taxes                      (43)         (2)        (41)  (2,050.0)%
                                                          --------    --------    --------    ---------
Net income (loss)                                         $  2,626    $    (85)   $  2,711    3,189.4%
                                                          ========    ========    ========    =========
</TABLE>

<TABLE>
         The  following  table  presents the  Company's  Condensed  Consolidated
Interim  Statements  of  Operations  for the six months  ended June 30, 2000 and
1999, as a percentage of net sales, as reported:
<CAPTION>
                                                            Six Months Ended
                                                                June 30,        Increase
                                                             2000      1999    (Decrease)
                                                             ----      ----     --------
<S>                                                         <C>       <C>         <C>
Net sales                                                   100.0%    100.0%      -- %
Cost of sales                                                45.6%     44.3%      1.3%
                                                            ------     -----     -----
Gross margin                                                 54.4%     55.7%     (1.3)%
Operating expenses:
      Research and development                               19.9%     21.2%     (1.3)%
      Marketing and sales                                    26.3%     24.8%      1.5%
      General and administrative                              9.2%      9.2%      -- %
                                                            ------     -----     -----
Total operating expenses                                     55.4%     55.2%      0.2%
                                                            ------     -----     -----
Operating income (loss)                                      (1.0)%     0.5%     (1.5)%
Interest and other income (expenses), net                    (0.3)%    (1.0)%     0.7%
Sale of ELSET product line                                   17.5%      -- %     17.5%
                                                            ------     -----     -----
Income before (provision for) benefit from income taxes      16.2%     (0.5)%    16.7%
(Provision for) benefit from income taxes                    (0.3)%     -- %     (0.3)%
                                                            ------     -----     -----
Net income (loss)                                            15.9%     (0.5)%    16.4%
                                                            ======     =====     =====
</TABLE>

         Net sales.  The  decrease in net sales during the six months ended June
30, 2000, from levels for the same period in 1999 was primarily due to decreased
sales in the  post-production  marketplace.  Sales to  countries  outside  North
America for the six months ended June 30, 2000 and 1999,  represented  35.8% and
33.2% of net sales, respectively.



                                      -12-
<PAGE>

         The following table presents net sales dollar volume for the six months
ended June 30,  2000 and 1999,  by market and related  percentages  of total net
sales (dollar amounts in thousands):

                                          Six Months Ended
                                               June 30,
                                       2000                     1999
                                       ----                     ----
       Marketplace              Amount       Percent     Amount       Percent

Post-Production                $ 9,024         54.8%    $11,612         64.9%
Distribution                     5,404         32.8%      4,203         23.5%
Other                            2,047         12.4%      2,071         11.6%
                                ------        ------     ------        ------
                               $16,475        100.0%    $17,886        100.0%
                                ======        ======     ======        ======

         Cost of sales.  Cost of sales, as a percentage of sales,  increased for
the six months  ended June 30,  2000,  from levels for the six months ended June
30, 1999, as sales  decreased  while  overall  manufacturing  expenses  remained
unchanged.

         Research and development. Research and development expenses for the six
months  ended June 30, 2000,  decreased  over levels for the same period in 1999
primarily due to the decrease in headcount  which  resulted from the sale of the
ELSET  virtual set  product  line in January  2000 and a decrease in  consultant
expenses.

         Marketing and sales.  Marketing  and sales  expenses for the six months
ended June 30,  2000,  decreased  over levels for the six months  ended June 30,
1999,  primarily  due to  decreases  in  headcount  and related  benefits and in
expenses related to demonstration equipment.

         General and administrative. General and administrative expenses for the
six months  ended June 30,  2000,  decreased  from levels for the same period in
1999  primarily  due to decreases in headcount,  contract and  temporary  worker
expenses, amortization of intangibles and the provision for bad debt.

         Interest and other income, net. Interest and other income, net, for the
six months ended June 30, 2000,  increased  over levels for the six months ended
June 30, 1999, due to an increase in interest income from  interest-bearing cash
accounts  and notes due from  directors  and  officers  and an increase in other
income.

         Provision for income taxes. For the six months ended June 30, 2000, the
provision  for income taxes  consists of tax expense  calculated at an effective
rate lower than the statutory  rate of 35% due to  realization  of net operating
loss  carryforwards.  For the six months ended June 30, 1999, the Company had an
effective rate of 0% reflecting  the Company's net operating  loss  carryforward
position.


                                      -13-
<PAGE>


Liquidity and Capital Resources

         Since   inception,   the  Company  has  financed  its   operations  and
expenditures  for property and equipment  through cash  generated in operations,
the sale of capital stock and convertible debt,  borrowings under a bank line of
credit and term loans.

          As of June 30, 2000, the Company had no cash and cash equivalents.  As
of that same date,  the  Company  had  $513,000  of funds  from its lender  (see
discussion of Provident Bank line of credit below) which were transferred to the
Company's cash account on the first business day in July 2000.

         Operating  activities  used $1.6  million in net cash in the six months
ended June 30, 2000 and  provided  $671,000 in net cash in the six months  ended
June 30,  1999.  Net cash used by  operations  in the six months  ended June 30,
2000,  was due  primarily to an increase in accounts  receivable.  Additionally,
cash was provided by the sale of ELSET virtual set product line in January.  Net
cash  provided by  operations  in the six months  ended June 30,  1999,  was due
primarily  to a decrease  in  inventories  partially  offset by an  increase  in
accounts  receivable  and other  current  assets and a decrease in other accrued
liabilities.   Proceeds  from  the  issue  of  long-term,   senior  subordinated
convertible  notes,  together with cash provided by operating  activities,  were
used in financing  activities for the repayment of amounts  borrowed  previously
under a line of credit.

         On  February  10,  2000,  the  Company  signed  an  agreement  with The
Provident  Bank  ("Provident"),  an  Ohio  chartered  bank,  for a $2.0  million
revolving  line of  credit  ("line").  Provident  issued  an  amendment  to this
agreement on August 11, 2000. The amendment provided for a reduction in the line
to $1.5 million,  an increase in the interest rate, changes in certain financial
covenants,  and a change  in the  maturity  date of the  loan to June 30,  2001.
Interest  accrues on  outstanding  borrowings  at the bank's prime rate plus 225
basis  points.  The  credit  line  is  secured  by all  assets  of the  Company.
Availability under the line is calculated based on eligible accounts receivable.
Borrowings  under the line are  subject to  compliance  with  certain  financial
covenants.  Under the financial covenants in the original agreement, the Company
was not in  compliance  as of April 30, 2000.  With the  adjustment in financial
covenants  specified  in the  August  11,  2000,  amendment,  the  Company is in
compliance with the financial covenants  retroactive to April 30, 2000 and as of
June 30, 2000. According to the terms of the original agreement, borrowings were
limited to a maximum of $2.0 million.  However,  in May 2000,  Provident reduced
the limit to $1.5 million as a result of the  Company's  failure to meet certain
financial  covenants as of April 30, 2000. This limit was formally instituted in
the August 2000  amendment.  As of June 30,  2000,  $55,000 in  borrowings  were
outstanding under the line.

         On January 21, 2000, the Company and certain of its  subsidiaries  sold
substantially  all of their  respective  assets related to the ELSET virtual set
product line ("ELSET") to IMadGINE Video Systems Marketing ("IMadGINE"), a Dutch
company that is a wholly owned subsidiary of Orad Hi-Tec Systems Ltd.  ("Orad"),
an Israeli corporation. IMadGINE also purchased the stock of Accom's subsidiary,
Accom Poland Sp. z o.o., a Polish corporation.  The Company and its subsidiaries
also sold  certain  intellectual  property  related to the ELSET  business.  The
Company  sold these assets in exchange  for (i)  $4,000,0000  in cash and (ii) a
warrant to purchase 70,423 ordinary shares of Orad.

         On March 12, 1999,  the Company  completed a private  placement of $3.5
million in senior  subordinated  convertible notes with a group of investors led
by the American Bankers  Insurance Group, Inc.  ("ABIG").  The agreement between
the  Company and the  holders of the  convertible  notes was amended and certain
waivers granted on November 3, 1999, and February 10, 2000.  Additional  waivers
were granted on April 18, 2000 and July 19,  2000.  The notes  currently  have a
coupon rate of 8% per year,  mature in 2004, and are convertible  into shares of
Accom  common  stock at a price of $1.30 per


                                      -14-
<PAGE>


share.  Proceeds  from the private  placement  were used to pay the balance on a
revolving line of credit with LaSalle Business Credit, Inc. that was outstanding
at the time the proceeds were  received.  The agreement  between the Company and
ABIG specifies that the Company meet certain financial  covenants.  ABIG has the
right to declare the notes  immediately  due if the covenants are not met. As of
June 30, 2000, the Company was not in compliance with the covenants. On July 19,
2000, ABIG issued a waiver for this incidence of non-compliance.

         As of June 30, 2000,  the Company had $1.6 million in Restricted  Cash.
Restricted  Cash was comprised of the following  elements:  (1) $350,000 in cash
deposits to be "swept"  into an account  controlled  by Provident as part of the
Company's  agreement  with  Provident to turn over all deposits  received by the
Company to  Provident to pay down the line of credit;  (2)  $400,000  held in an
escrow  account  at  Provident  until  January  2001 to be used to  satisfy  any
indemnification  claims by  IMadGINE  against  the  Company  under the  purchase
agreement  entered into between the Company and IMadGINE in connection  with the
January  2000 sale to  IMadGINE of the assets  related to the ELSET  virtual set
product line;  and (3) $830,000 held in an account  controlled by the Company as
part of an  agreement  between  the Company and ABIG to set aside funds from the
sale of ELSET to (a) pay all debt owed to Scitex  Digital  Video and (b) pay all
transaction expenses related to the sale of ELSET.

         The Company  believes  that its existing  cash,  cash  equivalents  and
credit  facilities will be sufficient to meet its cash requirements for at least
the next  twelve  months.  The Company  believes  that its  operating  plans are
reasonable  and can be achieved.  In the event that results from  operations and
cash flows  generated are less than  planned,  the Company will  reevaluate  its
operating  plans  and  believes  it will  have the  ability  to delay or  reduce
expenditures  so as to not breach the  covenants  of its  credit  facilities  or
require  additional  resources  to ensure that the Company  continues as a going
concern at least through June 30, 2001.

         Although operating  activities may provide cash in certain periods,  to
the  extent  the  Company  grows in the  future,  its  operating  and  investing
activities may use cash and,  consequently,  such growth may require the Company
to obtain  additional  sources of financing.  There can be no assurance that any
necessary  additional financing will be available to the Company on commercially
reasonable terms, if at all.

Item 3.  Quantitative and Qualitative Disclosures About Market Risks

         Accom  develops  its  technology  in the  United  States  and sells its
products primarily in North America,  Europe, and the Far East. As a result, the
Company's  financial  results  could be affected  by factors  such as changes in
foreign currency exchange rates or weak economic  conditions in foreign markets.
As  all  of  the  Company's  sales  are  currently  made  in  U.S.  dollars,   a
strengthening  of the dollar could make the Company's  products less competitive
in foreign markets. The Company's interest expense on its credit line borrowings
with The Provident Bank is sensitive to changes in the general level of interest
rates.  Due to the nature of the Company's debts, the Company has concluded that
there is currently no material market risk exposure.  Therefore, no quantitative
tabular disclosures have been presented.


                                      -15-
<PAGE>


                           Part II. OTHER INFORMATION

Item 1. Legal Proceedings

None.


Item 2. Changes in Securities and Use of Proceeds

None.


Item 3. Defaults Upon Senior Securities

None.


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

On June 15, 2000, the Company held its annual meeting of  stockholders.  At such
meeting,  the  Company's  stockholders  approved  the  following  items  by  the
following votes:

1.      The election of the following two Class 1 directors to hold office until
        the  expiration  of their  respective  terms and until their  respective
        successors are duly elected and qualified

                        Nominees                For         Against     Abstain
                  -------------------------   ---------     -------     -------
                  Lionel M. Allan             9,162,165        0        30,919
                  Eugene M. Matalene, Jr.     9,162,165        0        30,919


2.      Ratification  of the  appointment  of Ernst & Young  LLP as  independent
        auditors of the Company for 2000.

                          For                   9,087,282
                          Against                  56,700
                          Abstain                  49,102

Item 5. Other Information

None.

Item 6. Exhibits and Reports on Form 8-K

(a)  Exhibits.

       10.1     Modification  Agreement,  dated  August 11,  2000,  between  the
                Company and the Provident Bank.

       27.1     Financial Data Schedule (EDGAR filed version only)

(b)  Reports on Form 8-K

     On April 7, 2000, the Company filed Form 8-K/A to complete the reporting of
     the Company's  acquisition of the assets of Scitex Digital Video,  Inc. and
     certain of its  affiliates  on December 10, 1998. A Current  Report on Form
     8-K had been filed on


                                      -16-
<PAGE>


                  December  23,  1998,  to first  report  the  acquisition.  The
                  Company  did  not  file  the  audited   historical   financial
                  statements  of  the  acquired   business  and  the  pro  forma
                  financial   statements  of  the  combined   businesses  as  an
                  amendment  to Form 8-K within 60 days of the  original  filing
                  because the audited historical  financial statements of Scitex
                  Digital Video did not exist.  The Company arranged to have the
                  historical   financial  statements  of  Scitex  Digital  Video
                  audited.  These  statements as well as the pro forma financial
                  statements of the combined businesses are reported in the Form
                  8-K/A filed on April 7, 2000.


                                      -17-
<PAGE>


                                    SIGNATURE

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.

         ACCOM, INC.



         By: /s/  JUNAID SHEIKH
             ---------------------
                 (Junaid Sheikh)
         Chairman, President and Chief Executive Officer
         (Principal Executive Officer)


         By: /s/  DONALD K. McCAULEY
             ---------------------------
                  (Donald K. McCauley)
         Senior Vice President, Finance and Chief Financial Officer
         (Principal Financial and Accounting Officer)



         Date:  August 11, 2000