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 March 31, 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 May 5, 2000,  10,186,799 shares of the Registrant's  common stock,  $0.001
par value, were outstanding.


<PAGE>


<TABLE>

                                             ACCOM, INC.

                           FORM 10-Q For the Quarter Ended March 31, 2000

                                                INDEX

                                                                                                               Page
                                                                                                               ----
<S>            <C>                                                                                             <C>
               Facing sheet                                                                                     1

               Index                                                                                            2

Part I.        Financial Information (unaudited)

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

               b)      Condensed consolidated interim statements of operations for the three month periods      4
                       ended March 31, 2000 and March 31, 1999

               c)      Condensed  consolidated  interim statements of cash flows
                       for the three  month  periods  ended  March 31,  2000 and
                       March 31, 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                                     13

Part II.       Other Information                                                                               14

Item 1         Legal Proceedings                                                                               14

Item 2         Changes in Securities and Use of Proceeds                                                       14

Item 3         Defaults Upon Senior Securities                                                                 14

Item 4         Submission of Matters to a Vote of Security Holders                                             14

Item 5         Other Information                                                                               14

Item 6         Exhibits and Reports on Form 8-K                                                                14

               Signature                                                                                       16

</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
                                                                                                         ---------------------------
                                                                                                         March 31,      December 31,
                                                                                                           2000              1999
                                                                                                         --------          --------
                                                                                                        (Unaudited)          (Note)

                                    Assets
<S>                                                                                                      <C>               <C>
Current assets:
     Cash and cash equivalents                                                                           $    193          $    328
     Accounts receivable, net                                                                               3,628             1,616
     Inventories                                                                                            4,132             5,112
     Other current assets                                                                                     564               580
                                                                                                         --------          --------
         Total current assets                                                                               8,517             7,636
Property and equipment, net                                                                                 2,300             2,343
Intangibles, net                                                                                            1,885             1,986
Restricted cash                                                                                             1,795              --
Other assets                                                                                                   67                70
                                                                                                         ========          ========
         Total assets                                                                                    $ 14,564          $ 12,035
                                                                                                         ========          ========

                     Liabilities and Stockholders' Equity

Current liabilities:
     Bank borrowings - line of credit                                                                    $    735          $    559
     Current portion of notes payable                                                                         750             1,315
     Accounts  payable                                                                                      2,129             2,560
     Accrued liabilities                                                                                    2,654             2,037
     Customer deposits                                                                                        865               965
                                                                                                         --------          --------
         Total current liabilities                                                                          7,133             7,436
Long-term portion of notes payable                                                                          3,275             3,261
Stockholders' equity:

     Common stock, $0.001 par value; 40,000 shares authorized;
         10,184 and 10,133 shares issued and outstanding on
         March 31, 2000 and December 31, 1999, respectively                                                24,241            24,201
     Notes receivable from stockholders                                                                      (565)             (630)
     Accumulated deficit                                                                                  (19,520)          (22,233)
                                                                                                         --------          --------
         Total stockholders' equity                                                                         4,156             1,338
                                                                                                         --------          --------

         Total liabilities and stockholders' equity                                                      $ 14,564          $ 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>





                                   ACCOM, INC.

             CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

                      (In thousands, except per share data)

                                   (Unaudited)

                                                            Three months ended
                                                                  March 31,
                                                         -----------------------
                                                            2000         1999
                                                         --------      --------

Net sales                                                $  8,403      $  9,538

Cost of sales                                               3,787         4,059
                                                         --------      --------

Gross profit                                                4,616         5,479
                                                         --------      --------

Operating expenses:

     Research and development                               1,796         1,945
     Marketing and sales                                    2,236         2,100
     General and administrative                               653           807
                                                         --------      --------

Total operating expenses                                    4,685         4,852
                                                         --------      --------

Operating income (loss)                                       (69)          627

     Interest and other income (expenses), net                (41)         (111)
     Sale of ELSET product line                             2,888          --
                                                         --------      --------

Income before provision for income taxes                    2,778           516

Provision for income taxes                                     54             2
                                                         --------      --------

Net income                                               $  2,724      $    514
                                                         ========      ========

Net income per share - basic                             $   0.27      $   0.05
                                                         ========      ========
Net income per share - diluted                           $   0.25      $   0.05
                                                         ========      ========
Shares used in computation of net
     income per share - basic                              10,136        10,122
                                                         ========      ========
Shares used in computation of net
     income per share - diluted                            11,156        10,422
                                                         ========      ========

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




                                      -4-
<PAGE>

<TABLE>


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

                                                                                                              Three Months Ended
                                                                                                                   March 31,
                                                                                                            2000              1999
                                                                                                           -------          -------
<S>                                                                                                        <C>              <C>
Cash flows from operating activities:

Net income                                                                                                 $ 2,724          $   514
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:

     Depreciation and amortization                                                                             234              422
     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                                                                                (2,012)            (898)
         Inventories                                                                                           980            1,498
         Other current assets                                                                                   16           (1,031)
         Other assets                                                                                            3             --
         Accounts payable                                                                                     (431)             (73)
         Accrued liabilities                                                                                  (113)            (425)
         Customer deposits                                                                                    (100)               6
                                                                                                           -------          -------
           Net cash provided by (used in) operating activities                                              (1,587)              13
                                                                                                           -------          -------

Cash flows from investing activities:

Expenditures for property and equipment                                                                        (34)             (36)
Proceeds from disposal of property and equipment, net of the effect of the sale
     of the ELSET product line                                                                                  10              160
Increase in customer service inventories                                                                      (164)            --
                                                                                                           -------          -------
           Net cash provided by (used in) investing activities                                                (188)             124
                                                                                                           -------          -------

Cash flows from financing activities:

Borrowings and payments on line of credit, net                                                                 176           (3,916)
Repayment of notes payable                                                                                    (565)            (300)
Proceeds from long-term notes                                                                                   14            3,289
Issuance of common stock                                                                                        40             --
Restricted cash                                                                                             (1,795)           1,132
Repayment of note receivable from stockholder                                                                   65             --
Net proceeds from sale of ELSET product line                                                                 3,705             --
                                                                                                           -------          -------
           Net cash provided by financing activities                                                         1,640              205
                                                                                                           -------          -------

Net increase (decrease) in cash and cash equivalents                                                          (135)             342
Cash and cash equivalents at beginning of period                                                               328             --
                                                                                                           =======          =======
           Cash and cash equivalents at end of period                                                      $   193          $   342
                                                                                                           =======          =======

<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 March 31, 2000,
and the condensed  consolidated  interim statements of operations and cash flows
for the three month periods ended March 31, 2000 and 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 March 31, 2000 and the results of operations  and cash for the three
month periods ended March 31, 2000 and 1999, 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 month period ended March 31, 2000, are not  necessarily  indicative of the
operating results for any future period.

Note 2.  Comprehensive Income

         Comprehensive income is equal to net income for the three month periods
ended March 31, 2000 and 1999.

Note 3.  Inventories

         Inventories consist of the following (in thousands):

                                             March 31,       December 31,
                                                2000            1999
                                               ------          ------
Purchased parts and materials                  $1,322          $1,656
Work-in-process                                 1,452           1,634
Finished goods                                     30             369
Demonstration inventory                         1,328           1,453
                                               ------          ------
                                               $4,132          $5,112
                                               ======          ======

Note 4.  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.  Until March 31, 2000, borrowings were limited to a maximum
of  $1,500,000.  As a result of meeting a certain  financial  covenant,  maximum
allowable  borrowings  increased to $2,000,000 after March 31, 2000. As of March
31, 2000, the Company had  availability  of $765,000 under the line; the balance
outstanding was $735,000.

         Indebtedness  under the line of credit accrues  interest at Provident's
prime  rate plus 125 basis  points.  All  borrowings  are due on March 1,  2003.
Borrowings are secured by all assets of the Company.

         Borrowings  under  the line are  subject  to  compliance  with  certain
financial  covenants.  As of March 31, 2000, the Company was in compliance  with
these 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,



                                      -6-
<PAGE>


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 March 31, 2000, the Company
was not in  compliance  with the  covenants.  On April 18,  2000,  ABIG issued a
waiver for  non-compliance  as of March 31, 2000.  In  addition,  on November 3,
1999,  and  February 10, 2000,  ABIG amended and issued  certain  waivers to the
original agreement.

         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. 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.

<TABLE>

Note 5.  Net Income Per Share

         The following table sets forth the computation of basis and diluted net
income (loss) per share (in thousands, except for per share amounts):

<CAPTION>
                                                                                                         For the Three Months Ended
                                                                                                                  March 31,
                                                                                                         --------------------------
                                                                                                            2000             1999
                                                                                                          -------           -------
<S>                                                                                                       <C>               <C>
Numerator

Numerator for basic net income per share-net income                                                       $ 2,724           $   514
Effect of dilutive securities:
           8% convertible notes                                                                                83              --
                                                                                                          -------           -------
Numerator for diluted net income per share-income available to stockholders
   after assumed conversions                                                                              $ 2,807           $   514

Denominator
Denominator for basic net income per share-weighted average shares                                         10,136            10,122
Effect of dilutive securities:
           Employee stock options                                                                             749               300
           Warrants                                                                                            72              --
           8% convertible notes                                                                               199              --
                                                                                                          -------           -------
Denominator for diluted net income per share-weighted average shares and
   assumed conversions                                                                                     11,156            10,422
Basic net income per share                                                                                $  0.27           $  0.05
                                                                                                          =======           =======
Diluted net income per share                                                                              $  0.25           $  0.05
                                                                                                          =======           =======
</TABLE>

                                      -7-
<PAGE>


Note 6.  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 Ended
                                                               March 31,
                                                               ---------
                    Market                               2000             1999
                    ------                               ----             ----

                Post-Production                        $4,716             $6,603
                Distribution                            2,613              1,887
                Other                                   1,074              1,048
                                                       ======             ======
                                                       $8,403             $9,538
                                                       ======             ======

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
  ---- --------------------- ------------------------------ -------------------------------------------------------
       AFFINTY(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  generally  recognizes  revenue  upon product  shipment.  If
significant  obligations exist at the time of shipment,  revenue  recognition is
deferred until obligations are met.

         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 March 31, 2000 and March 31, 1999

<TABLE>
         The  following  table  presents the  Company's  Condensed  Consolidated
Interim  Statements of Operations  for the three months ended March 31, 2000 and
1999 as reported (dollar amounts in thousands, except per share data):
<CAPTION>

                                                                        Three Months Ended
                                                                           March 31,                     Increase (Decrease)
                                                                           ---------                     -------------------
                                                                    2000              1999             Amount             Percent
                                                                  -------           -------           -------             -------
<S>                                                               <C>               <C>               <C>                 <C>
Net sales                                                         $ 8,403           $ 9,538           $(1,135)              (11.9)%
Cost of sales                                                       3,787             4,059              (272)               (6.7)%
                                                                  -------           -------           -------             -------
Gross profit                                                        4,616             5,479              (863)              (15.8)%
Operating expenses:
  Research and development                                          1,796             1,945              (149)               (7.7)%
  Marketing and sales                                               2,236             2,100               136                 6.5%
  General and administrative                                          653               807              (154)              (19.1)%
                                                                  -------           -------           -------             -------
Total operating expenses                                            4,685             4,852              (167)               (3.4)%
                                                                  -------           -------           -------             -------
Operating income (loss)                                               (69)              627              (696)             (111.0)%
Interest and other income (expenses), net                             (41)             (111)               70               (63.1%)
Sale of ELSET product line                                          2,888              --               2,888               N/A
                                                                  -------           -------           -------             -------
Income before provision for income taxes                            2,778               516             2,262               438.4%
Provision for income taxes                                             54                 2                52             2,600.0%
                                                                  -------           -------           -------             -------
Net income                                                        $ 2,724           $   514             2,210               430.0%
                                                                  =======           =======           =======             =======
</TABLE>



         The  following  table  presents the  Company's  Condensed  Consolidated
Interim  Statements of Operations  for the three months ended March 31, 2000 and
1999, as a percentage of net sales, as reported:

                                                  Three Months Ended
                                                        March 31,
                                                    ----------------   Increase
                                                    2000       1999   (Decrease)
                                                    -----       ----       ---
Net sales                                           100.0%     100.0%       - %
Cost of sales                                        45.1%      42.6%      2.5%
                                                    -----       ----       ---
Gross margin                                         54.9%      57.4%     (2.5)%
Operating expenses:
      Research and development                       21.3%      20.4%      0.9%
      Marketing and sales                            26.6%      22.0%      4.6%
      General and administrative                      7.8%       8.4%     (0.6)%
                                                    -----       ----       ---
Total operating expenses                             55.7%      50.8%      4.9%
                                                    -----       ----       ---
Operating income (loss)                              (0.8)%      6.6%     (7.4)%
Interest and other income (expenses),  net           (0.5)%     (1.2)%     0.7%
Sale of ELSET product line                           34.4%        - %     34.4%
                                                    -----       ----       ---
Income before provision for income taxes             33.1%       5.4%     27.7%
Provision for income taxes                            0.7%        - %      0.7%
                                                    -----       ----       ---
Net income                                           32.4%       5.4%     27.0%
                                                     ====        ===      ====


                                      -10-
<PAGE>


         Net sales.  The  decrease in net sales  during the three  months  ended
March 31,  2000,  from levels for the same period in 1999 was  primarily  due to
decreased sales in the post-production  marketplace.  Sales to countries outside
the United States and Canada for the three months ended March 31, 2000 and 1999,
represented 31.5% and 34.4% of net sales, respectively.

         The  following  table  presents net sales  dollar  volume for the three
months ended March 31, 2000 and 1999, by market and related percentages of total
net sales (dollar amounts in thousands):

                                              Three Months Ended
                                                 March 31,
                                                 ---------
                                       2000                      1999
                                       ----                      ----
Marketplace                   Amount        Percent      Amount        Percent
-----------                   ------        -------      ------        -------
Post-Production               $4,716           56.1%     $6,603           69.2%
Distribution                   2,613           31.1%      1,887           19.8%
Other                          1,074           12.8%      1,048           11.0%
                              ------          -----      ------          -----
                              $8,403          100.0%     $9,538          100.0%
                              ======          =====      ======          =====

         Cost of sales.  Cost of sales, as a percentage of sales,  increased for
the three months  ended March 31,  2000,  from levels for the three months ended
March  31,  1999,  as a  result  of lower  average  selling  prices  on sales of
disk-based  products in the  post-production  marketplace,  increased  inventory
reserves, and increased expenses related to inventory variances.

         Research and  development.  Research and  development  expenses for the
three months ended March 31, 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 three months
ended March 31, 2000, increased over levels for the three months ended March 31,
1999,  primarily  due to  increases  in  advertising,  promotion  and trade show
expenses.

         General and administrative.  The decrease in general and administrative
expenses for the three  months  ended March 31,  2000,  from levels for the same
period  in 1999 was  primarily  due to  decreases  in  headcount,  contract  and
temporary workers, amortization of intangibles and the provision for bad debt.

         Interest and other income, net. Interest and other income, net, for the
three months ended March 31,  2000,  increased  over levels for the three months
ended March 31, 1999, due to a decrease in the debt  outstanding and an increase
in other income.

         Provision for income taxes.  For the three months ended March 31, 2000,
the  provision  for income  taxes  consists of tax expense  calculated  at 2% of
income before taxes.  The effective  rate of 2% is lower than the statutory rate
of 35% due to  realization of net operating  loss  carryforwards.  For the three
months ended March 31, 1999,  the Company had an effective rate of 0% reflecting
the Company's net operating loss carryforward position.


                                      -11-
<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 March  31,  2000,  the  Company  had  $193,000  of cash and cash
equivalents.

         Operating  activities used $1.6 million in net cash in the three months
ended March 31, 2000 and provided  $13,000 in net cash in the three months ended
March 31, 1999.  Net cash used by operations in the three months ended March 31,
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 three months ended March 31, 1999,  was due
primarily  to net income and a decrease in  inventories  offset  primarily by an
increase  in  accounts  receivable  and  other  current  assets.  Proceeds  from
long-term loans, 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 $2,000,000 revolving
line of credit  ("line").  Interest  accrues on  outstanding  borrowings  at the
bank's  prime  rate plus 125 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  and as of March 31,  2000,  the
Company was in compliance  with these  covenants.  Borrowings  were limited to a
maximum of $1,500,000 until March 31, 2000.  Removal of this borrowing limit was
dependent   on  meeting  a  certain   financial   covenant   which  the  Company
accomplished. As of March 31, 2000, $735,000 in borrowings was outstanding under
the line.

         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. An additional waiver
was granted on April 18, 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 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 March 31, 2000,  the Company was not in compliance
with the  covenants.  ABIG issued a waiver of  non-compliance  on April 18, 2000
relating to this incident of non-compliance.

         As of March 31, 2000, the Company had $1.8 million in Restricted  Cash.
Restricted  Cash was comprised of the following  elements:  (1) $480,000 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 Video Systems Marketing,  B.V.  ("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 ("ELSET"); and (3) $915,000
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.

                                      -12-
<PAGE>


         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 March 31, 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.


                                      -13-
<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

         None.

         Item 5.  Other Information

         None.

         Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits.

                  27.1     Financial Data Schedule (EDGAR filed version only)

         (b)  Reports on Form 8-K.

                  On February 4, 2000,  the  Company  filed a Current  Report on
                  Form  8-K to  report  the sale on  January  21,  2000,  by the
                  Company and certain of its subsidiaries of  substantially  all
                  of their  respective  assets  related to the ELSET virtual set
                  product line  ("ELSET") to IMadGINE  Video Systems  Marketing,
                  B.V.  ("IMadGINE"),  a Dutch  company  that is a wholly  owned
                  subsidiary   of  Orad  Hi-Tec   Systems,   Ltd.,   an  Israeli
                  corporation.  IMadGINE  also  purchased  the stock of  Accom's
                  subsidiary,  Accom  Poland 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  $4,000,000  in cash and a warrant to
                  purchase  70,423  ordinary  shares of Orad. On March 20, 2000,
                  the Company filed Form 8-K/A to report the pro forma financial
                  statements of the Company without ELSET included which had not
                  been included in the original 8-K filing.

                  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
                  December  23,  1998,  to first  report  the  acquisition.  The
                  Company  did  not  file  the  audited



                                      -14-
<PAGE>

                  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.


                                      -15-
<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:  May 12, 2000


                                      -16-