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 quarterly period ended June 30, 1998

                                       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: 0-24556


                              MARKER INTERNATIONAL
             (Exact name of registrant as specified in its charter)

        Utah                                           87-0372759
     (State or other jurisdiction of      (I.R.S. Employer Identification No.)
     incorporation or organization)                       


                              1070 West 2300 South
                           Salt Lake City, Utah 84119
                    (Address of principal executive offices)

                                 (801) 972-2100
              (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 filings
requirements for the past 90 days.
        Yes   X       No ________

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

     Class of Common Stock                 Outstanding at August 18, 1998
 Common Stock, $0.01 par value                    11,130,577

<PAGE>

                              MARKER INTERNATIONAL

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION

     Item 1.  Financial Statements                                     Page

             Condensed Consolidated Balance Sheets
               As of June 30, 1998 and March 31, 1998                   3

             Condensed Consolidated Statements of Operations
               For the Three Months Ended June 30, 1998 and 1997        5

             Condensed Consolidated Statements of Cash Flows
               For the Three Months Ended June 30, 1998 and 1997        6

             Notes to Condensed Consolidated Financial Statements       7


    Item 2.   Management's Discussion and Analysis of Financial 
                Condition and Results of Operations                    12


                           PART II - OTHER INFORMATION

    Item 3.   Defaults Upon Senior Securities                          18

    Item 6.   Exhibits and Reports on Form 8-K                         18

    Signatures                                                         19

<PAGE>

                         PART I - FINANCIAL INFORMATION

                      MARKER INTERNATIONAL AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Dollars in Thousands)
                                   (Unaudited)

                                     ASSETS
<TABLE>
<CAPTION>
                                                                                                        
                                                                                  June 30,                  March 31,   
                                                                                   1998                       1998
                                                                                 ---------                -----------
CURRENT ASSETS:
<S>                                                                             <C>                       <C>     
     Cash and cash equivalents                                                  $  2,580                  $  4,241
     Accounts receivable, net of allowance for doubtful
         accounts of $1,462 and $1,697, respectively                              25,911                    31,710
     Inventories                                                                  53,606                    37,223
     Prepaid and other current assets                                              4,976                     4,440
                                                                                 ----------              ----------
           Total current assets                                                   87,073                    77,614
                                                                                 ----------              ----------

PROPERTY, PLANT AND EQUIPMENT:
     Land                                                                          1,050                     1,050
     Building and improvements                                                     8,250                     7,581
     Machinery and equipment                                                      22,334                    21,222
     Furniture, fixtures and office equipment                                      5,392                     4,582
                                                                                 ----------              ----------
                                                                                  37,026                    34,435
     Less accumulated depreciation and amortization                              (18,174)                  (16,733)
                                                                                 ----------              ----------
           Net property, plant and equipment                                      18,852                    17,702
                                                                                 ----------              ----------

INTANGIBLE ASSETS, net of accumulated amortization                                 8,244                     8,322
                                                                                 ----------              ----------

OTHER ASSETS                                                                       1,418                     1,482
                                                                               ------------              ----------
                                                                               $ 115,587                 $  105,120
                                                                               ============              ==========
</TABLE>

      The accompanying notes to condensed consolidated financial statements
      are an integral part of these condensed consolidated balance sheets.

<PAGE>

                      MARKER INTERNATIONAL AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
                             (Dollars in Thousands)
                                   (Unaudited)

                      LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>

                                                                                                          
                                                                                  June 30,               March 31,  
                                                                                    1998                   1998
                                                                                  ---------              ----------
CURRENT LIABILITIES:
<S>                                                                             <C>                       <C>     
     Notes payable to banks                                                     $ 64,676                  $ 48,645
     Current maturities of long-term debt                                          3,833                     3,512
     Current maturities of Series A Bonds, issued to a related party               4,500                     4,500
     Accounts payable                                                              6,542                     6,381
     Other current liabilities                                                     8,095                     7,830
                                                                                ----------               ----------
              Total current liabilities                                           87,646                    70,868
                                                                                ----------               ----------

LONG-TERM DEBT, net of current maturities                                         14,810                    14,898
                                                                                 ----------              ----------
SERIES A BONDS, net of current maturities, issued to a related party               5,500                     5,500
                                                                                 ----------               ----------

MINORITY INTEREST                                                                  1,399                     1,447
                                                                                 ----------               ----------

SHAREHOLDERS' EQUITY:
     Preferred stock, $0.01 par value, 5,000,000 shares
         authorized and none issued                                                   -                        -
     Common stock, $0.01 par value, 25,000,000
         shares authorized; 11,130,577 issued and
            outstanding                                                              111                       111
     Additional paid-in capital                                                   36,299                    36,299
     Accumulated deficit                                                         (22,826)                  (16,471)
     Cumulative foreign currency translation adjustments                          (7,352)                   (7,532)
                                                                               ------------              -----------
              Total shareholders' equity                                           6,232                    12,407
                                                                               ------------              -----------
                                                                               $ 115,587                 $ 105,120
                                                                               ============              ===========

</TABLE>

      The accompanying notes to condensed consolidated financial statements
      are an integral part of these condensed consolidated balance sheets.


<PAGE>
                      MARKER INTERNATIONAL AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (Dollars in Thousands, Except Per Share Amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                         For the Three Months
                                                                                           Ended June 30,
                                                                                        1998         1997
                                                                                        -----        ----
<S>                                                                                 <C>           <C>     
NET SALES                                                                           $  3,010      $  2,271
COST OF SALES                                                                          1,364         2,088
                                                                                    --------      --------
GROSS PROFIT                                                                           1,646           183
                                                                                    --------      --------
OPERATING EXPENSES:
     Selling                                                                           2,767         2,859
     General and administrative                                                        2,754         3,059
     Research and development                                                            911           992
     Warehousing and shipping                                                            503           439
     Amortization of goodwill and intangibles                                            111           227
                                                                                    ---------      -------
                                                                                       7,046         7,576
                                                                                    ---------      -------

OPERATING LOSS                                                                        (5,400)       (7,393)
OTHER INCOME (EXPENSE):                                                             ---------      --------
     Interest expense                                                                 (1,495)       (1,114)
     Other, net                                                                          489           384
                                                                                    ---------      --------
                                                                                       (1,006)         (730)

LOSS BEFORE INCOME TAXES AND MINORITY INTEREST                                         (6,406)       (8,123)

BENEFIT FOR INCOME TAXES                                                                  -           2,844
MINORITY INTEREST                                                                          52           224
                                                                                    ----------     --------

NET LOSS                                                                            $  (6,354)     $ (5,055)
                                                                                    ===========    =========
NET LOSS PER COMMON SHARE (BOTH BASIC AND DILUTED)                                     $(0.57)       $(0.45)
                                                                                    ===========   ==========

WEIGHTED AVERAGE SHARES OUTSTANDING (BOTH BASIC AND DILUTED)                       11,130,577    11,129,127
                                                                                   ============  ===========

</TABLE>

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

<PAGE>

                      MARKER INTERNATIONAL AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in Thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                    For the Three Months
                                                                                       Ended June 30,
                                                                                  1998                    1997
                                                                                 ---------                -----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                            <C>                    <C>       
   Net loss                                                                    $  (6,354)             $  (5,055)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
     Minority interest in loss                                                       (52)                  (224)
     Gain on sale of property, plant and equipment                                    -                     (88)
     Depreciation and amortization                                                 1,273                  1,286
     Change in assets and liabilities:
        Decrease in accounts receivable, net                                       5,851                  2,917
        Increase in inventories                                                  (16,205)               (13,921)
        Increase in prepaid and other assets                                        (251)                (2,546)
        Increase in accounts payable                                               1,686                  1,156
        Decrease in other current liabilities                                     (1,395)                (2,930)
                                                                                 ----------             ---------
NET CASH USED IN OPERATING ACTIVITIES                                            (15,447)               (19,405)
                                                                                 ----------             ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property, plant and equipment                                   (1,951)                (2,404)
     Proceeds from disposition of equipment                                          -                    3,571
                                                                                 ---------              ---------
NET CASH (USED IN) PROVIDED BY INVESTING  ACTIVITIES
                                                                                  (1,951)                 1,167
                                                                                 ----------              ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Net borrowings on notes payable to banks                                     15,771                 11,675
     Proceeds from issuance of long-term debt                                        360                   -
     Principal payments on long-term debt                                           (490)                  (685)
                                                                                 ----------              ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                         15,641                 10,990
                                                                                 ----------              ---------

Effect of foreign exchange rate changes on cash                                       96                   (724)
                                                                                 ---------               ---------

Net decrease in cash and cash equivalents                                         (1,661)                (7,972)
Cash and cash equivalents at beginning of period                                   4,241                 13,532
                                                                                 ---------              ----------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       $ 2,580               $  5,560
                                                                                 =========             ===========

</TABLE>

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

<PAGE>

                      MARKER INTERNATIONAL AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1.  INTERIM FINANCIAL STATEMENTS

          The accompanying condensed consolidated financial statements include
the accounts of Marker International and its subsidiaries (the "Company"). The
condensed consolidated financial statements have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission (the "SEC").
Certain information and footnote disclosures normally required in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted pursuant to such rules and regulations. The financial
statements reflect all adjustments (consisting only of normal recurring
adjustments) which, in the opinion of management, are necessary to fairly
present the financial position, results of operations and cash flows for the
periods presented.

          The Company's financial statements for the year ended March 31, 1998
and unaudited financial statements for the quarter ended June 30, 1998 have been
prepared on a going concern basis, which contemplates the realization of assets
and settlement of liabilities and commitments in the normal course of business.
The Company has continued to experience financial difficulties through the first
quarter of fiscal 1999 and thereafter.

          The results of operations for the three months ended June 30, 1998 are
not necessarily indicative of the results for the full fiscal year. It is
suggested that these condensed consolidated financial statements be read in
conjunction with the financial statements and notes thereto included in the
Company's latest Annual Report on Form 10-K as filed with the SEC.

NOTE 2.  RECENT EVENTS

          On June 23, 1998, the Board of Directors authorized the disposal of
the Company's snowboard manufacturing operations if such disposal was
subsequently determined by senior management to be in the best interests of the
Company. Production of snowboards and operating activities within the
manufacturing plant ceased on July 30, 1998. The Company expects to dispose of
the manufacturing facility and related assets by the end of fiscal year 1999. At
the present time, the gain or loss from the sale of such assets is uncertain.

<PAGE>

                      MARKER INTERNATIONAL AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

          At June 30, 1998, the Company was not in compliance with certain
financial covenants under a $25.0 million line of credit agreement with a U.S.
Bank. The Company continues not to be in compliance with such covenants as of
August 18, 1998. As a result of such non-compliance, the U.S. Bank has the right
to declare all obligations of the Company under the line of credit to be
immediately due and payable. At June 30, 1998, the aggregate outstanding
borrowings under such line was $23.5 million. In August 1998, the Company
requested that such bank increase the $25.0 million credit line (the "U.S.
Credit Line") by approximately $4.1 million for which the Company would provide
additional collateral to the U.S. Bank. The Company is continuing to negotiate
with the U.S. Bank.

          On August 1, 1998, the Company's DM 80.0 million (US $45.0 million)
line of credit agreement with a group of German Banks expired (the "German
Credit Line"). As a result of such expiration, the German Banks have the right
to declare all obligations of the Company under the German Credit Line to be
immediately due and payable. Further, on August 6, 1998, the German Banks
notified the Company that it had canceled the German Credit Line and would not
extend any further borrowings under such line.

          While the Company and its banks are continuing to discuss alternatives
to mitigate the Company's financial difficulties and the possible reinstatement
or renewal of the credit lines, there can be no assurance that satisfactory
agreements will be reached between the Company and current or prospective
lenders. In the event that the banks do not extend the terms of the Company's
U.S. Credit Line and German Credit Line to provide the Company with necessary
working capital, or if the banks exercise their rights to demand payment of all
amounts and/or foreclose on the Company's assets which are pledged as collateral
under the credit line agreements, there is a substantial risk that the Company
will not be able to continue as a going concern.

          Although the Company is seeking alternatives which, among other
things, include restructuring the Company, obtaining additional equity and/or
debt financing or entering into a new business alliance, there can be no
assurance that the Company will be successful in such endeavors. Accordingly,
there is a substantial risk that the Company will not be able to continue as a
going concern and, among other things, could be forced to seek protection from
its creditors.

<PAGE>

                      MARKER INTERNATIONAL AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 3.  CASH AND CASH EQUIVALENTS

          Cash and cash equivalents include investments in certificates of
deposit with original maturities of less than 30 days and restricted cash. The
Company has granted a security interest in a $2.0 million time deposit held in
the Company's name at a United States branch of a German bank. This deposit is
restricted for use as collateral on borrowings from such bank.

NOTE 4.  INVENTORIES

          Inventories include direct materials, direct labor and manufacturing
overhead costs and are recorded at the lower of cost (using the first-in,
first-out method) or market. The major classes of inventories are as follows (in
thousands):

                                       June 30, 1998            March 31, 1998
                                     ---------------          -----------------
         Raw materials                 $   1,651                  $  1,411
         Work in process                   2,929                     2,306
         Finished goods                   49,026                    33,506
                                       ----------                 ----------
                                       $  53,606                  $ 37,223
                                       ==========                 ==========

NOTE 5.  INTANGIBLE ASSETS

          Intangible assets consist of goodwill, trade names and licenses
resulting from the Company's acquisition of DNR Sportsystem Ltd. Intangible
assets are amortized using the straight-line method over lives ranging from 5 to
30 years. At June 30, 1998 and March 31, 1998 accumulated amortization of
goodwill and intangible assets totaled approximately $1.3 million and $1.2
million, respectively.

<PAGE>

                      MARKER INTERNATIONAL AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 6.  RECENT ACCOUNTING PRONOUNCEMENTS

COMPREHENSIVE INCOME

          As of April 1, 1998, the Company adopted SFAS No. 130 "Reporting
Comprehensive Income." The following table displays components of the Company's
comprehensive income for the three month periods ended June 30, 1998 and 1997:
 
                                           For the Three Months Ended June 30,
                                              1998                     1997
                                           -----------              --------- 
    Net Loss                                $ (6,354)                $ (5,055)
    OTHER COMPREHENSIVE INCOME ITEMS:
    Foreign Currency Translation
      Adjustments                                180                     (694)
                                           ----------              -----------
         Comprehensive Loss                 $ (6,174)                $ (5,749)
                                           ===========             ===========

SEGMENT REPORTING

          The Company adopted SFAS No. 131 "Disclosures about Segments of an
Enterprise and Related Information." SFAS 131 establishes new standards for
public companies to report information about their operating segments, products
and services, geographic areas and major customers. SFAS 131, though effective
for the Company in fiscal 1999, is not applied to interim financial statements
in the initial year of its application. The adoption of SFAS 131 will have no
effect on the Company's consolidated results of operations, financial positions
or cash flows.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

          In June 1998, the Financial Accounting Standards Board issued SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities." SFAS No.
133 establishes accounting and reporting standards requiring that derivative
instruments be recorded in the balance sheet as either an asset or liability
measured at its fair market value and that changes in the derivative's fair
value be recognized currently in earnings unless specific hedge accounting
criteria are met. SFAS No. 133 is effective for fiscal years beginning after
June 15, 1999.

<PAGE>


                      MARKER INTERNATIONAL AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Therefore, SFAS 133 is not effective for the Company until fiscal year 2001. The
effect of SFAS No. 133 on the Company's consolidated financial statements is
uncertain.

          Derivative financial instruments held by the Company are generally
used to manage well-defined foreign exchange and interest rate risks which
occur in the normal course of business. From time to time the Company has
entered into transactions involving derivative instruments that require
speculative accounting treatment. Forward foreign exchange contracts are used by
the Company to reduce the potential impact of unfavorable fluctuations in
foreign exchange rates. The Company has off balance sheet commitments to buy and
sell foreign currencies relating to foreign exchange contracts in order to hedge
against future currency fluctuations.

          Gains and losses on foreign currency contracts not intended to be used
to hedge operating requirements are reported currently in other income. Gains
and losses on foreign currency contracts intended to meet firm commitments are
deferred and recognized as part of the cost of the underlying transaction being
hedged. At June 30, 1998, the Company holds foreign currency contracts that are
not being used to hedge operating requirements. As a result, the Company has
recorded a loss in order to adjust these contracts to market value at June 30,
1998.

          Counterparties to the foreign exchange contracts are typically major
international financial institutions. The Company's theoretical risk in these
transactions is the cost of replacing, at current market rates, these contracts
in the event of default by the counterparty. Management believes the risk of
incurring such losses is remote.

<PAGE>
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

          The following discussion should be read in conjunction with the
financial statements and notes thereto appearing elsewhere in this report.

GENERAL

          Marker International is a designer, developer, manufacturer and
marketer of alpine ski bindings in the United States, Europe and Asia. Marker
International ("Marker" or the "Company") is a holding company which operates
through its subsidiaries, Marker Deutschland GmbH ("Marker Germany"), Marker
USA, Marker Japan Co., Ltd. ("Marker Japan"), Marker Austria GmbH ("Marker
Austria") and Marker Canada, Ltd. ("Marker Canada"). Substantially all of the
Company's ski bindings are manufactured by Marker Germany, which also
distributes bindings in Germany, to subsidiaries of the Company, and to
independent distributors in countries where the Company does not have a
distribution subsidiary. Marker Ltd., also a subsidiary of the Company, designs,
distributes and sells to retailers the Company's clothing, gloves and luggage
products for skiing and other recreational activities. The principal markets for
the Company's clothing, gloves and luggage products are North America, Europe
and Asia.

          In addition, the Company is a designer, developer and marketer of
snowboards, Interface Step-in Systems(TM), traditional snowboard bindings and
snowboard boots. The Company operates its snowboard business through its 80%
owned subsidiary, DNR Sportsystem Ltd. ("DNR"), and its wholly-owned
subsidiaries, DNR USA, Inc., DNR North America, Inc. ("DNR North America") and
DNR Japan Co., Ltd. ("DNR Japan"). DNR designs, develops and distributes
snowboards and related products. DNR North America and DNR Japan, through their
own sales force market snowboards, Interface Step-in SystemsTM, snowboard
bindings and boots directly to retailers in the United States and Japan,
respectively. The Board of Directors has authorized the disposition of the
Company's snowboard manufacturing assets. Production of snowboards and operating
activities within the manufacturing plant ceased on July 30, 1998. See
"--Liquidity and Capital Resources."

          The Company has experienced financial difficulties through the first
quarter of fiscal 1999 and thereafter. As a result of such difficulties, there
is a substantial risk that the Company will not be able to continue as a going
concern. See "--Liquidity and Capital Resources."

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (CONTINUED)

          Marker Germany receives payment primarily in German marks ("Marks")
for ski bindings sold. For subsidiaries of the Company (principally Marker USA
and Marker Japan), Marker Germany may allow payment for ski bindings sold to be
made in the functional currency of the subsidiary. Marker Germany or the
distribution subsidiary, as applicable, routinely enters into forward foreign
exchange contracts with financial institutions in order to fix the cost of
converting the functional currency to Marks. Sales prices for the ski bindings
offered to the subsidiaries and ultimately the price the subsidiaries offer for
the sale of the ski bindings to their customers is based upon, among other
things, the rate afforded by the forward foreign exchange contracts and market
conditions. Accordingly, the relationship of the exchange rate between the
functional currency of the subsidiary and the Mark has a direct impact on the
cost of the products sold by the distribution subsidiary.

          Each of the Company's distribution subsidiaries operates and maintains
its accounting records in the functional currency of the country in which it
operates. In accordance with United States generally accepted accounting
principles, upon consolidation of the Company's consolidated financial
statements, the assets, liabilities, revenues and expenses of each of the
Company's foreign subsidiaries are translated at the appropriate exchange rate
prevailing during the period. Therefore, the Company's assets, liabilities and
results of operations are subject to fluctuations in forward foreign exchange
contract rates and translation effects which can vary as a result of
fluctuations in the exchange rates between the functional currencies of such
foreign subsidiaries and the United States dollar ("Dollar").

          For the three months ended June 30, 1998, average exchange rates
between the Dollar and the Mark, the Dollar and the Japanese yen ("Yen") and the
Dollar and the Swiss franc ("Franc") resulted in an effective decrease in the
value of the Mark against the Dollar, the Yen against the Dollar and the Franc
against the Dollar of approximately 5%, 13% and 3%, respectively, compared to
the corresponding period of the prior year. Such currency exchange activity
resulted in corresponding fluctuations in the value of the revenues and expenses
of Marker Germany, Marker Japan and Marker AG, as well as DNR Sportsystem and
DNR Japan, when converted to Dollars, compared to the corresponding period of
the prior fiscal year.

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (CONTINUED)

          The Company's business is seasonal in nature. Consistent with this
seasonal nature and the ski and snowboard industries in general, the Company
historically records a relatively small percentage of its annual net sales
during its first fiscal quarter. The Company historically records a majority of
its sales during its second and third fiscal quarters and to a lesser extent
during its fourth fiscal quarter.

RESULTS OF OPERATIONS

COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 1998 WITH THE THREE MONTHS ENDED 
JUNE 30, 1997

          Consistent with the seasonal nature of the Company's business and the
ski industry in general, the Company has historically recorded a small
percentage of its annual net sales during its first fiscal quarter. These sales
amounts have historically represented less than 2% of the Company's annual net
sales and are primarily attributable to close-out products sold late in the ski
season. As such, sales results and gross profit margins are not necessarily
indicative of the results to be expected for the full fiscal year.

          Gross profit for the three months ended June 30, 1998 increased to
$1.6 million compared to $0.2 million for the corresponding period of the prior
fiscal year. The increase in gross profit was a result of increased sales.

          Operating expenses for the three months ended June 30, 1998 decreased
to $7.0 million, compared to $7.6 million for the same period of the prior
fiscal year. Approximately $0.4 million of the decrease relates to legal fees
for arbitration proceedings incurred during the first quarter of fiscal 1998,
which were not incurred in the first quarter of fiscal 1999 due to the fact that
the arbitration was settled in March 1998. As a result of adjustments made to
the Company's goodwill and intangible assets at March 31, 1998, the associated
amortization expense decreased to $0.1 million in the first quarter of fiscal
1999 from $0.2 million for the corresponding period of the prior fiscal year. In
addition, the overall decrease in operating expenses of the Company is partly
the result of decreases in the operating expenses of the Company's foreign
subsidiaries, which resulted from fluctuations in exchange rates used to
translate the subsidiaries functional currencies to Dollars, when compared to
the same period of the prior fiscal year.

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (CONTINUED)

Interest expense for the three months ended June 30, 1998 increased to $1.5
million, compared to $1.1 million for the corresponding period of the prior
fiscal year. The increase in interest expense is the result of higher average
outstanding balances on the Company's existing line of credit arrangements and
higher weighted average interest rates on the credit lines for the first quarter
of fiscal 1999 as compared to the corresponding period of the prior fiscal year.

          The income tax benefit recognized for the three months ended June 30,
1998 and 1997 was calculated using the estimated consolidated annual effective
tax rate which considers the effective tax rates of domestic and foreign tax
jurisdictions.

LIQUIDITY AND CAPITAL RESOURCES

          The Company's primary cash requirements are for raw materials
inventory for production, finished goods inventory, funding of accounts
receivable, capital expenditures and strategic business acquisitions.
Historically, the Company's primary sources of cash for its business activities
have been cash flows from operations and borrowings under its lines of credit
and term loans.

          On June 23, 1998, the Board of Directors authorized the disposal of
the Company's snowboard manufacturing assets. Production of snowboards and
operating activities within the manufacturing plant ceased on July 30, 1998. The
Company expects to dispose of the manufacturing facility and related assets by
the end of fiscal year 1999. At the present time, the gain or loss from the sale
of such assets is uncertain.

          At June 30, 1998, the Company had a working capital deficit of ($0.6)
million, compared to working capital of $6.7 million at March 31, 1998.

          As of June 30, 1998, the Company had approximately $64.7 million of
outstanding borrowings under its short-term credit facilities. Substantially all
of such borrowings are secured by inventory and receivables. The Company has
experienced serious liquidity problems in recent periods. See "Note 2 - Recent
Events."

<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (CONTINUED)

          At June 30, 1998, the Company was not in compliance with certain
financial covenants under a $25.0 million line of credit agreement with a U.S.
Bank. The Company continues not to be in compliance with such covenants as of
August 18, 1998. As a result of such non-compliance, the U.S. Bank has the
right to declare all obligations of the Company under the line of credit to be
immediately due and payable. At June 30, 1998, the aggregate outstanding
borrowings under such line was $23.5 million. In August 1998, the Company
requested that such bank increase the $25.0 million credit line (the "U.S.
Credit Line") by approximately $4.1 million for which the Company would provide
additional collateral to the U.S. Bank. The Company is continuing to negotiate
with the U.S. Bank.

          On August 1, 1998, the Company's DM 80.0 million (US $45.0 million)
line of credit agreement with a group of German Banks expired (the "German
Credit Line"). As a result of such expiration, the German Banks have the right
to declare all obligations of the Company under the German Credit Line to be
immediately due and payable. Further, on August 6, 1998, the German Banks
notified the Company that it had canceled the German Credit Line and would not
extend any further borrowings under such line.

          While the Company and its banks are continuing to discuss alternatives
to mitigate the Company's financial difficulties and the possible reinstatement
or renewal of the credit lines, there can be no assurance that satisfactory
agreements will be reached between the Company and current or prospective
lenders. In the event that the banks do not extend the terms of the Company's
U.S. Credit Line and German Credit Line to provide the Company with necessary
working capital, or if the banks exercise their rights to demand payment of all
amounts and/or foreclose on the Company's assets which are pledged as collateral
under the credit line agreements, there is a substantial risk that the Company
will not be able to continue as a going concern.

          Although the Company is seeking alternatives which, among other
things, include restructuring the Company, obtaining additional equity and/or
debt financing or entering into a new business alliance, there can be no
assurance that the Company will be successful in such endeavors. Accordingly,
there is a substantial risk that the Company will not be able to continue as a
going concern and, among other things, could be forced to seek protection from
its creditors.

<PAGE>

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (CONTINUED)

YEAR 2000 COMPUTER ISSUE

          Many currently installed computer systems and software are coded to
accept only two digit entries in the date code field. Beginning the year 2000,
these date code fields will need to accept four digit entries to distinguish
twenty-first century dates from twentieth century dates. As a result, within the
next eighteen months, computer systems and/or software used by many companies
may need to be upgraded to comply with such "Year 2000" requirements.

          The Company has developed plans to modify its computer information
systems enabling proper processing of data relating to the year 2000 and beyond.
The Company is now in the process of executing its plan and expects all systems
to be compliant by the end of fiscal 1999. This will allow time for the testing
for compliance. The total cost of the project is estimated to be approximately
$150,000. While there can be no assurance that Year 2000 matters will be
satisfactorily identified and resolved, the Company currently believes that Year
2000 issues will not have a material adverse effect on the Company.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT 
OF 1995

          With the exception of historical information (information relating to
the Company's financial condition and results of operations at historical dates
or for historical periods), the matters discussed in this Management's
Discussion and Analysis of Financial Condition and Results of Operations are
forward-looking statements that necessarily are based on certain assumptions and
are subject to certain risks and uncertainties. These forward-looking statements
are based on management's expectations as of the date hereof, and the Company
does not undertake any responsibility to update any of these statements in the
future. Actual future performance and results could differ from that contained
in or suggested by these forward-looking statements as a result of the factors
set forth in this Management's Discussion and Analysis of Financial Condition
and Results of Operations, the Business Risks described in the Company's Report
on Form 10-K for the year ended March 31, 1998 and elsewhere in the Company's
filings with the Securities and Exchange Commission.

<PAGE>


                           PART II - OTHER INFORMATION

Item 3.  Defaults Upon Senior Securities.

          At June 30, 1998, the Company was not in compliance with certain
financial covenants under a $25.0 million line of credit agreement with a U.S.
Bank. The Company continues not to be in compliance with such covenants as of
August 18, 1998. As a result of such non-compliance, the U.S. Bank has the
right to declare all obligations of the Company under the line of credit to be
immediately due and payable. At June 30, 1998, the aggregate outstanding
borrowings under such line was $23.5 million. In August 1998, the Company
requested that such bank increase the $25.0 million credit line by approximately
$4.1 million for which the Company would provide additional collateral to the
U.S. Bank. The Company is continuing to negotiate with the U.S. Bank.

          On August 1, 1998, the Company's DM 80.0 million (US $45.0 million)
line of credit agreement with a group of German Banks expired (the "German
Credit Line"). As a result of such expiration, the German Banks have the right
to declare all obligations of the Company under the German Credit Line to be
immediately due and payable. Further, on August 6, 1998, the German Banks
notified the Company that it had canceled the German Credit Line and would not
extend any further borrowings under such line. See "Management's Discussion and
Analysis of Financial Condition and Results of Operations--Liquidity and Capital
Resources."


Item 6.  Exhibits and Reports on Form 8-K.

         a)   EXHIBITS:

              10.26   Second Amended and Restated Conditional Pledge Agreement 
                      and Assignment dated April 15, 1998, between Marker 
                      International and Bayerische Hypotheken-und Wechsel-Bank 
                      Aktiengesellschaft.*

              10.27   Third Restated and Amended Promissory Note dated as of 
                      April 15, 1998 executed by the Company and payable to 
                      Bayerische Hypotheken-und Wechsel-Bank 
                      Aktiengesellschaft.*

              27      Financial Data Schedule.*

         b)   No reports were filed on Form 8-K.
----------------------
* Filed herewith.

<PAGE>

                                   SIGNATURES


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

                                                   MARKER INTERNATIONAL
                                                       Registrant

Dated:  August 19, 1998               /S/ JOHN G. MCMILLIAN
                                      ----------------------
                                      John G. McMillian
                                      Chief Executive Officer
                                      and Chairman of the Board
                                      Executive Officer

Dated:  August 19, 1998               /S/ KEVIN HARDY
                                      ----------------
                                      Kevin Hardy
                                      Chief Financial Officer