<PAGE>   1
--------------------------------------------------------------------------------

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

                     --------------------------------------


                                    FORM 10-Q

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

FOR THE QUARTER ENDED SEPTEMBER 30, 1996        COMMISSION FILE NUMBER  0-28488



                       MULTIPLE ZONES INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)



                   WASHINGTON                             91-1431894
            (State of incorporation)                    (I.R.S. Employer
                                                      Identification Number)


               707 SOUTH GRADY WAY                          
               RENTON, WASHINGTON                            98055-3233
    (Address of principal executive offices)                 (Zip Code)


                                 (206) 430-3000
                             (Registrant's telephone
                          number, including area code)



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


The number of shares of the registrant's Common Stock outstanding as of October
31, 1996, was 12,869,510.

--------------------------------------------------------------------------------
<PAGE>   2



                       MULTIPLE ZONES INTERNATIONAL, INC.

                                      INDEX

<TABLE>
<CAPTION>

                          PART I. FINANCIAL INFORMATION

<S>                                                                              <C>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS:

        Consolidated Balance Sheets
           December 31, 1995 and September 30, 1996 .........................      3

        Consolidated Statements of Operations
           Three and nine months ended September 30, 1996 and 1995 ..........      4

        Statements of Shareholders' Equity
           Three months ended March 31, 1996, June 30, 1996 and September 30,      
           1996..............................................................      5

        Consolidated Statements of Cash Flows
           Nine months ended September 30, 1996 and 1995 ....................      6

        Notes to Consolidated Financial Statements ..........................      7

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS .......................      8



                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K ....................................     13


        SIGNATURES ..........................................................     13
</TABLE>


                                       2
<PAGE>   3
                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL INFORMATION

               MULTIPLE ZONES INTERNATIONAL, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                            December 31,        September 30,
                                                               1995                 1996
                                                            ------------        -------------
                                                                                 (Unaudited)
                                     ASSETS
<S>                                                         <C>                 <C>
Current assets:
   Cash and cash equivalents                                $  1,214,581        $  1,570,762
   Receivables, net                                           23,111,478          33,433,408
   Inventories, net                                           42,030,676          50,291,911
   Prepaids                                                    6,292,209           4,039,568
   Deferred income taxes                                         695,060             961,732
                                                            ------------        ------------

     Total current assets                                     73,344,004          90,297,381

Property and equipment, net                                    4,518,555           8,046,238
Other assets                                                   1,529,605           2,434,741
                                                            ------------        ------------

     Total assets                                           $ 79,392,164        $100,778,360
                                                            ============        ============

                       LIABILITIES & SHAREHOLDERS' EQUITY

Current liabilities:
   Bank lines of credit                                     $ 12,034,890        $     82,492
   Accounts payable                                           46,594,671          40,676,300
   Accrued liabilities and other                               5,155,322           9,187,066
   Current portion of capital lease obligations                  722,558             807,930
   Income taxes payable                                        1,086,223           1,274,609
                                                            ------------        ------------

     Total current liabilities                                65,593,664          52,028,397

Capital lease obligations, net of current portion              1,664,553           1,572,529
Deferred income taxes                                            295,482             225,378
Other                                                            401,940             430,303
                                                            ------------        ------------

     Total liabilities                                        67,955,639          54,256,607
                                                            ------------        ------------

Minority interest                                                239,415             360,875
                                                            ------------        ------------

Commitments and contingencies

Series B Redeemable Convertible Preferred Stock                6,461,096                  --

Shareholders' equity:
  Common stock                                                 2,750,000          36,911,911
  Retained earnings                                            1,987,736           9,345,628
  Foreign currency translation adjustment                         (1,722)            (96,661)
                                                             -----------        ------------
                               
    Total shareholders' equity                                 4,736,014          46,160,878
                                                             -----------        ------------
    
    Total liabilities & shareholders' equity                 $79,392,164        $100,778,360
                                                             ===========        ============
</TABLE>


                                       3
<PAGE>   4
               MULTIPLE ZONES INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                      For the nine months                     For the three months
                                                      ended September 30,                      ended September 30,
                                                 --------------------------------      ---------------------------------
                                                     1995               1996                 1995              1996
                                                 -------------      -------------      -------------      --------------

<S>                                              <C>                <C>                <C>                <C>
Net sales                                        $ 155,720,398      $ 321,734,319      $  58,676,835      $ 109,396,495
Cost of sales                                      135,126,270        276,818,952         50,904,308         93,875,000
                                                 -------------      -------------      -------------      -------------

     Gross profit                                   20,594,128         44,915,367          7,772,527         15,521,495
Selling, general and administrative expenses        17,304,093         31,558,294          6,325,620         10,436,336
                                                 -------------      -------------      -------------      -------------

     Income from operations                          3,290,035         13,357,073          1,446,907          5,085,159
                                                 -------------      -------------      -------------      -------------

Other (income) expense:
     Interest expense                                  770,593          1,258,240            319,292            241,867
     Other income                                     (137,887)          (237,654)           (97,277)           (78,992)
     Minority interest                                  95,908            121,460             53,949             (6,174)
                                                 -------------      -------------      -------------      -------------

                                                       728,614          1,142,046            275,964            156,701
                                                 -------------      -------------      -------------      -------------

Income before income taxes                           2,561,421         12,215,027          1,170,943          4,928,458
Provision for income taxes                             969,953          4,397,873            443,582          1,726,481
                                                 -------------      -------------      -------------      -------------

     Net income                                  $   1,591,468      $   7,817,154      $     727,361      $   3,201,977
                                                 =============      =============      =============      =============


     Primary earnings per share                  $       0.16       $        0.66      $        0.07      $        0.24
                                                 =============      =============      =============      =============

     Shares used in computation of
        primary earnings per share                   9,805,876         11,144,002          9,815,060         13,393,899
                                                 =============      =============      =============      =============

     Fully diluted earnings per share            $        0.16      $        0.67      $        0.07      $        0.24
                                                 =============      =============      =============      =============

     Shares used in computation of
        fully diluted earnings per sharE            10,141,206         11,706,971         10,150,390         13,542,504
                                                ==============      =============      =============      =============
</TABLE>


                                       4
<PAGE>   5
              MULTIPLE ZONES INTERNATIONAL, INC. AND SUBSIDIARIES
                       STATEMENTS OF SHAREHOLDERS' EQUITY
                                   (Unaudited)
 

                                                                                
<TABLE>
<CAPTION>
                                                                                           Foreign              
                                                   Common Stock                            Currency           
                                             -------------------------     Retained      Translation
                                               Shares        Amount        Earnings       Adjustment        Total
                                             ----------   ------------    -----------    ------------     ----------- 

<S>                                          <C>          <C>             <C>            <C>              <C>
Balance at December 31, 1995                  9,374,999   $  2,750,000    $ 1,987,736     $   (1,722)     $ 4,736,014
                                                                                                                   
 Accretion                                                                   (229,631)                        (229,631)
 Net income                                                                 2,173,061                        2,173,061
 Translation adjustment                                                                       26,093            26,093
                                             ----------   ------------    -----------     ----------      ------------

 Balance at March 31, 1996                    9,374,999   $  2,750,000    $ 3,931,166     $   24,371      $  6,705,537

 Accretion                                                                   (229,631)                        (229,631)
 Net income                                                                 2,442,116                        2,442,116
 Translation adjustment                                                                      (54,386)          (54,386)
                                             ----------   ------------    -----------     ----------      ------------

Balance at June 30, 1996                      9,374,999   $  2,750,000     $ 6,143,651    $  (30,015)     $  8,863,636

 Issuance of common stock                     2,530,000     27,237,473                                      27,237,473
 Conversion of Series B Preferred Stock         918,711      6,920,358                                       6,920,358
 Exercise of stock options                       24,000          4,080                                           4,080
 Net income                                                                  3,201,977                       3,201,977
 Translation adjusment                                                                        (66,646)         (66,646)
                                             ----------   ------------     -----------     ----------     -------------

Balance at September 30, 1996                12,847,710   $ 36,911,911     $ 9,345,628     $  (96,661)    $ 46,160,878
                                             ==========   ============     ===========     ==========     ============
</TABLE>


                                       5
<PAGE>   6
               MULTIPLE ZONES INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                         For the nine months
                                                         ended September 30,
                                                      --------------------------
                                                           1995          1996
<S>                                                   <C>             <C>
Cash flows from operating activities:
    Net income                                        $  1,591,468    $  7,817,154
    Adjustments to reconcile net income to
      net cash used in operating activities:
    Allowance for doubtful accounts and returns             99,671         444,414
    Inventory valuation allowance                          100,000         543,908
    Depreciation and amortization                          659,308       1,144,377
    Deferred income taxes                                 (175,004)       (336,776)
    Minority interest                                       95,908         121,460
    Foreign currency translation adjustment                 21,958         (94,939)
    Changes in assets and liabilities:
      Accounts receivable                               (7,956,559)      (9,835,111)
      Inventory                                        (11,255,443)      (8,437,712)
      Prepaids and other assets                         (2,369,043)       1,929,834
      Accounts payable                                  12,576,898       (9,235,326)
      Accrued liabilities                                  312,467        2,974,089
      Income taxes payable                                 209,200          103,642
                                                       -----------     ------------

        Net cash used in operating activities           (6,089,171)     (12,860,986)
                                                       -----------     ------------

Cash flows from investing activities:
     Purchases of property and equipment                  (987,575)      (4,090,967)
                                                       -----------     ------------

        Net cash used in investing activities             (987,575)      (4,090,967)
                                                       -----------     ------------  

Cash flows from financing activities:
    Borrowings under line of credit agreement            42,414,443      48,604,552
    Payments under line of credit agreement             (33,520,000)    (60,556,950)
    Proceeds from sale of common stock                           --      27,237,473
    Proceeds from exercise of stock options                      --           4,080
    Net change in book overdrafts                          (921,119)      2,659,809
    Payments on capital leases                             (389,224)       (545,100)
    Other                                                    40,644         (95,730)
                                                        -----------     -----------

        Net cash provided by financing activities         7,624,744      17,308,134
                                                        -----------     ------------ 

Net increase in cash and cash equivalents                   547,998         356,181

Cash and cash equivalents at beginning of period            513,789      1,214,581
                                                        -----------     -----------

Cash and cash equivalents at end of period              $ 1,061,787     $ 1,570,762
                                                        ===========     ===========
</TABLE>


                                        6
<PAGE>   7
               MULTIPLE ZONES INTERNATIONAL, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.       BASIS OF PRESENTATION

         The consolidated financial statements and related notes thereto for the
three and nine month periods ended September 30, 1996 are unaudited and reflect
all normal recurring adjustments which are, in the opinion of management,
necessary for a fair presentation of the financial position and operating
results for the interim period. The results of operations for such interim
periods are not necessarily indicative of the results for the entire fiscal year
ending December 31, 1996. These financial statements should be read in
conjunction with the audited financial statements and notes thereto contained in
the Company's Prospectus dated June 27, 1996.

2.       INITIAL PUBLIC OFFERING

         On July 2, 1996, the Company issued 2,200,000 shares of Common Stock at
$12.00 per share in an initial public offering. On July 12, 1996, an additional
330,000 shares were issued pursuant to the underwriters' over-allotment option.
The proceeds to the Company were $27,237,473, net of the underwriting discount
and other direct expenses of $3,122,527. Upon consummation of the offering all
outstanding shares of Series B Preferred Stock converted to 918,711 shares of
Common Stock.

3.       EARNINGS PER SHARE

         Earnings per share is computed using the weighted average number of
common and dilutive common equivalents outstanding during the period. Dilutive
common equivalents consist of stock options and warrants. The accretion relating
to the Series B Redeemable Convertible Preferred Stock ("Series B Preferred
Stock") prior to the conversion to common stock is deducted from income only in
the calculation of primary earnings per share. For the three and nine months
ended September 30, 1995, fully diluted earnings per share assumes the
conversion of Series B Preferred Stock to Common Stock. For the three and nine
months ended September 30, 1996, fully diluted earnings per share is computed
using the weighted average effect of the conversion of Series B Preferred Stock
to Common Stock. Common and common equivalent shares issued at prices below the
public offering price during the 12 months preceding the offering date have been
included in the calculation as if they were outstanding for all periods
presented. The calculation uses the treasury stock method in determining the
resulting incremental weighted average equivalent shares outstanding.


                                       7
<PAGE>   8
ITEM 2.              MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                           FORWARD-LOOKING INFORMATION

The matters described below contain forward-looking statements which involve
known and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements of the Company or industry trends to differ
materially from those expressed or implied by such forward-looking statements.

The following discussion and analysis should be read in conjunction with the
Risk Factors and other information contained in the Company's Prospectus dated
June 27, 1996 filed with the Securities and Exchange Commission.

General

Multiple Zones International, Inc. and its majority owned subsidiaries
(collectively the "Company") is a leading international direct marketer of
microcomputer hardware, software, peripherals and accessories through its two
flagship catalogs, The Mac Zone(R) and The PC Zone(R). The Company began
operations in 1988 by advertising in national trade publications. Catalog
circulation commenced with The Mac Zone(R) in 1990, followed by The PC Zone(R)
in 1992. International subsidiary operations and licensing activities commenced
in 1992, and outbound telemarketing operations, principally to business
accounts, were added in 1993. The Company distributed 30.1 million catalogs
domestically in the nine months ended September 30, 1996, with additional
circulation by its subsidiaries and licensees through operations in 27 other
countries worldwide. The Company intends to distribute at least 43 million
catalogs during 1996 which includes a significant increase in circulation that
began late in the third quarter.

Results of Operations

The following tables present the Company's unaudited consolidated results of
operations, in dollars and as a percentage of net sales, and selected operating
data for the periods indicated. This information has been prepared by the
Company on a basis consistent with the Company's unaudited Consolidated
Financial Statements and, in the opinion of management, includes all
adjustments, consisting only of normal recurring accruals, necessary for a fair
presentation of the results of such periods.

<TABLE>
<CAPTION>

                                         Nine months ended             Three months ended
                                           September 30,                  September 30,
                                     --------------------------------------------------------
                                       1995            1996               1995         1996
                                       ----            ----               ----         ----
                                               (In thousands, except operating data)

<S>                                   <C>             <C>                <C>         <C>
Net sales                             $155,720        $321,734           $58,677     $109,396
Cost of sales                          135,126         276,819            50,904       93,875
                                      --------        -------            -------     -------- 

Gross profit                            20,594          44,915             7,773       15,521
SG&A expenses                           17,304          31,558             6,326       10,436
                                      --------        --------           ------      --------

Income from operations                   3,290          13,357             1,447        5,085
Other expense                              729           1,142               276          157
                                      --------        --------           -------     --------

Income before taxes                      2,561          12,215             1,171        4,928
Provision for taxes                        970           4,398               444        1,726
                                      --------        --------           -------     --------

Net income                            $  1,591        $  7,817           $   727     $  3,202
                                      ========        ========           =======     ========
</TABLE>


                                       8
<PAGE>   9
<TABLE>
<CAPTION>

                                         Nine months ended             Three months ended
                                           September 30,                  September 30,
                                   ----------------------------------------------------------
                                       1995           1996               1995         1996
                                       ----           ----               ----         ---- 

<S>                                <C>             <C>                <C>         <C>   
Selected Operating Data:
Circulation                         22,000,000      30,050,000         6,750,000   11,450,000
Number of Shipments                    572,000         838,000           208,000      282,000
Average Order Size                 $       265     $       364        $      272  $       368

Net sales                                100.0%          100.0%            100.0%        100.0%
Cost of sales                             86.8            86.0              86.8          85.8
                                   -----------     -----------        ----------  ------------

Gross profit                              13.2            14.0              13.2          14.2
SG&A expenses                             11.1             9.8              10.7           9.5
                                   -----------     -----------        ----------  ------------

Income from operations                     2.1             4.2               2.5           4.7
Other expense                              0.5             0.4               0.5           0.1
                                   -----------     -----------        ----------  ------------

Income before taxes                        1.6             3.8               2.0           4.6
Provision for taxes                        0.6             1.4               0.8           1.6
                                   -----------     -----------        ----------  ------------

Net income                                 1.0%            2.4%              1.2%          3.0%
                                   ===========     ===========        ==========  =============
</TABLE>



Comparison of the Three-Month Periods Ended September 30, 1996 and 1995

Net Sales. Net sales increased 86.4% to $109.4 million in the three months ended
September 30, 1996 from $58.7 million in the comparable period. The increase
resulted primarily from an increase in domestic hardware sales to 82.7% of gross
sales in the three months ended September 30, 1996 from 71.3% in the comparable
period. The increase in hardware sales contributed to a 35.3% increase between
periods in domestic average order size to $368 from $272. Also contributing to
the increase in net sales was an increase in orders due primarily to higher
catalog circulation, which grew to 11.5 million in the three months ended
September 30, 1996, an increase of 69.6% over the comparable period.
International subsidiary net sales in the three months ended September 30, 1996
were $13.9 million, an increase of 131.7% over the comparable period primarily
resulting from the addition of subsidiaries in Austria, Germany and The
Netherlands and sales growth in the Company's operations in Denmark, France and
the United Kingdom.

Gross Profit. Gross profit increased to $15.5 million in the three months ended
September 30, 1996 from $7.8 million in the comparable period, and increased
between periods to 14.2% from 13.2% of net sales. Gross profit dollars increased
due to higher sales volumes generated by increases in orders and average order
size. The increase in gross margin percentage resulted from improved mix of
higher-margin product offerings and improved recovery of domestic freight costs,
partially offset by increased sales of hardware products and sales to business
accounts, which generally carry a lower average gross margin percentage.

Selling, General and Administrative Expenses. SG&A expense increased to $10.4
million in the three months ended September 30, 1996 from $6.3 million in the
comparable period, but decreased between periods as a percentage of net sales to
9.5% from 10.7%. The dollar increase in SG&A expenses was primarily attributable
to an increase in transaction costs associated with higher sales volume, as well
as to increased administrative salaries. The decline in SG&A expenses as a
percentage of net sales resulted primarily from the leveraging of SG&A expenses
over a larger sales base.



                                       9
<PAGE>   10
Other Expense. Other expense decreased to $157,000 in the three months ended
September 30, 1996 from $276,000 in the comparable period, primarily as a result
of lower interest expense related to lower levels of borrowing on the Company's
primary line of credit.

Income Taxes. Income tax expense increased in the three months ended September
30, 1996 to $1.7 million from $444,000 in the comparable prior period due to the
significant increase in profitability between periods. The effective income tax
rate, expressed as a percentage of income before income taxes, decreased to
35.0% for the three months ended September 30, 1996 from 37.9% for the three
months ended September 30, 1995. The change is primarily due to a decrease in
the international subsidiary income before taxes as a percentage of the 
consolidated income before taxes.

Net Income. As a result of the above factors, net income increased to $3.2
million or 3.0% of net sales in the three months ended September 30, 1996 from
$727,000 or 1.2% of net sales in the comparable prior period.

Comparison of the Nine Months Ended September 30, 1996 and 1995

Net Sales. Net sales increased 106.6% to $321.7 million in the nine months ended
September 30, 1996 from $155.7 million in the comparable period. The increase
resulted primarily from an increase in hardware sales to 81.0% of gross sales in
the nine months ended September 30, 1996 from 68.0% in the comparable period.
The increase in hardware sales contributed to a 37.4% increase between periods
in domestic average order size to $364 from $265. Also contributing to the
increase in net sales was an increase in orders due primarily to higher catalog
circulation, which grew to 30.1 million in the nine months ended September 30,
1996, an increase of 36.6% over the comparable period. International subsidiary
net sales in the nine months ended September 30, 1996 were $41.3 million, an
increase of 147.3% over the comparable period primarily resulting from the
addition of subsidiaries in Austria, Germany, Mexico and The Netherlands and
sales growth in the Company's operations in Denmark, France and the United
Kingdom.

Gross Profit. Gross profit increased to $44.9 million in the nine months ended
September 30, 1996 from $20.6 million in the comparable period, and increased
between periods to 14.0% from 13.2% of net sales. Gross profit dollars increased
due to higher sales volumes generated by increases in orders and average order
size. The increase in gross margin percentage resulted from improved mix of
higher-margin product offerings and improved recovery of domestic freight costs,
partially offset by increased sales of hardware products and sales to business
accounts, which generally carry a lower average gross margin percentage.

Selling, General and Administrative Expenses. SG&A expense increased to $31.6
million in the nine months ended September 30, 1996 from $17.3 million in the
comparable period, but decreased between periods as a percentage of net sales to
9.8% from 11.1%. The dollar increase in SG&A expenses was primarily attributable
to an increase in transaction costs associated with higher sales volume, as well
as to increased administrative salaries, partially offset by a decrease in net
advertising expense. The decline in SG&A expenses as a percentage of net sales
resulted from a lower net advertising expense and the leveraging of SG&A
expenses over a larger sales base.

Other Expense. Other expense increased to $1.1 million in the nine months ended
September 30, 1996 from $729,000 in the comparable period, primarily as a result
of higher interest expense related to higher levels of borrowing on the
Company's primary line of credit.

Income Taxes. Income tax expense increased in the nine months ended September
30, 1996 to $4.4 million from $970,000 in the comparable prior period due to the
significant increase in profitability between periods.  The effective income
tax rate, expressed as a percentage of income before income taxes, decreased to
36.0% for the nine months ended September 30, 1996 from 37.9% for the nine
months ended September 30, 1995. The change is primarily due to a decrease in
the international subsidiary income before taxes as a percentage of the
consolidated income before taxes.



                                       10
<PAGE>   11
Net Income. As a result of the above factors, net income increased to $7.8
million or 2.4% of net sales in the nine months ended September 30, 1996 from
$1.6 million or 1.0% of net sales in the comparable prior period.

SEASONALITY AND TRENDS

The Company believes that certain seasonal factors cause sales of microcomputer
software and hardware products through the direct marketing channel to be
somewhat stronger in the fourth and first calendar quarter than in the second
and third quarters. The fourth quarter tends to be stronger as manufacturers
make year-end introductions of new products and increase related marketing
activities, and as corporate purchasing activities increase at the end of the
budgetary cycles. Sales in the first quarter typically benefit from the fourth
quarter sales as customers add peripherals and additional memory products.

The market for microcomputer products is characterized by rapid change and
frequent introductions of new products and product enhancements. These changes
result in frequent price fluctuations. Typically, prices of microcomputers
initially increase with improvements in features, such as processing speed and
storage capacity, and subsequently decrease as manufacturers pass on savings
from lower-cost components and reduce their inventories of older models.

The Company's Mac operating system ("Mac") business was strong during the first
nine months of 1996, growing 97.8% over the comparable 1995 period. Sales of Mac
products represented 67.9% and 71.1% of gross sales in the three months and nine
months ended September 30, 1996, respectively, compared to 74.4% and 72.5% of
gross sales in the three and nine months ended September 30, 1995, respectively.
Sales of Apple Computer, Inc. ("Apple") products alone constituted 21.6% and
22.4% of gross sales in the three and nine months ended September 30, 1996,
respectively, compared to 24.9% and 22.8% of gross sales in the three and nine
months ended September 30, 1995, respectively. The Company believes that the
percentage of its sales represented by Mac products is likely to decline
gradually over time as a result of increasing acceptance of the direct marketing
channel by PC/Wintel operating system ("PC") product manufacturers and users,
the Company's expanded focus on PC product sales, and its effort to increase
sales to business accounts which tend to be concentrated more heavily on PC
products. Apple has recently experienced a decline in CPU sales, reflecting
uncertainties in the Mac marketplace, as well as manufacturing and product
availability problems. Further decline in the demand for, or availability of,
Apple or other Mac products could have a material adverse effect on the
Company's future results of operations.

The Company intends to place larger inventory stocking orders, increase
participation in first-to-market purchase opportunities, continue
end-of-life-cycle purchase opportunities and market more products on a
private-label basis, all of which increase the risk of inventory obsolescence.
To reduce this risk, the Company has agreements with many vendors containing
provisions whereby vendors supply price protection and product return
privileges, subject to some limitations. End-of-life-cycle products are
typically acquired without return privileges.

The Company does not believe that inflation has had a material impact on its
results of operations. However, there can be no assurance that inflation will
not have such an effect in future periods.


                                       11
<PAGE>   12



LIQUIDITY AND CAPITAL RESOURCES

On July 2nd, 1996 the Company completed an initial public offering of its Common
Stock resulting in net proceeds to the Company of $27.2 million. The Company
paid off bank debts totaling $20.8 million by using funds generated by its
initial public offering. The remaining proceeds have been used to finance
ongoing working capital requirements.

As of September 30, 1996, the Company had total assets of $100.8 million, of
which $90.3 million were current assets. At September 30, 1996 and December 31,
1995 the Company had cash and cash equivalents of $1.6 and $1.2 million,
respectively, and working capital of $38.3 million and $7.8 million,
respectively. Net cash used in operating activities was $12.9 million and $6.1
million for the nine months ended September 30, 1996 and 1995, respectively.
Cash outflows in these periods were primarily due to higher accounts receivable
resulting from growing sales to business accounts, to investment in increased
inventories necessary to support rapidly growing sales. Additionally, cash
outflows during the nine months ended September 30, 1996 increased due to the
decrease in accounts payable. In the nine months ended September 30, 1996 and in
1995 accounts receivable increased by $9.8 million and $8.0 million,
respectively, and inventories increased by $8.4 million and $11.3 million,
respectively.

Cash outlays for capital expenditures were $4.1 million and $988,000 in the nine
months ended September 30, 1996 and 1995, respectively. In addition, the Company
incurred capital lease obligations during the nine months ended September 30,
1996 and 1995 of $538,000 and $1.7 million, respectively. These expenditures
were primarily for information and telecommunication system enhancements,
furniture and equipment, leasehold improvements and the relocation of its
corporate headquarters and telemarketing operations to a larger facility in July
1996. The Company estimates that its annualized capital expenditures in 1996
will approximate $6.0 million, as it continues to make other investments in its
infrastructure to support its anticipated growth.

The Company has a revolving line of credit of $25.0 million from a commercial
bank collateralized by inventories and accounts receivable. At September 30,
1996, there were no borrowings outstanding under the facility. Additionally, at
September 30, 1996, the Company had $3.5 million of unused letters of credit.

The net amount of vendor credit outstanding at September 30, 1996 was $40.7
million of which $18.2 million was drawn from a $25.0 million inventory
financing facility between the Company and a commercial lender, which provides
financing for and is collateralized by inventory purchased from certain
participating vendors.

The Company believes that its existing available cash and cash equivalents,
operating cash flow and existing credit facilities will be sufficient to satisfy
its operating cash needs for at least the next 12 months. However, if working
capital or other capital requirements are greater than currently anticipated,
the Company could be required to seek additional funds through sales of equity,
debt or convertible securities or increased credit facilities. There can be no
assurance that additional financing will be available or that, if available, the
financing will be on terms favorable to the Company and its shareholders.

STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

With the exception of the historical information contained herein, the matters
described herein contain forward-looking statements that involve risk and
uncertainties including but not limited to variability of quarterly results,
reliance on vendor support and relationships, and dependence on sales of Mac
products. These and other risk factors are described generally in the Risk
Factors section of the Company's Prospectus dated June 27, 1996 filed with the
Securities and Exchange Commission.


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<PAGE>   13


                           PART II. OTHER INFORMATION


ITEM 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

11.1     Computation of earnings per share

(b)      Reports on Form 8-K

         No Reports on Form 8-K were filed during the Quarter ended September
         30, 1996.

SIGNATURES

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


                                     MULTIPLE ZONES INTERNATIONAL, INC.


Dated:  November 14, 1996            By:_______________________________________
                                     Victor Melfi, Jr., Chief Executive Officer



Dated:  November 14, 1996            By:_______________________________________
                                     Peter J. Biere, Chief Financial Officer

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