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 December 31, 1997
                                       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 incorporation)          (I.R.S. Employer ID No.)

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

                                 (801) 972-2100
                               (Telephone number)

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 February 13, 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 December 31, 1997 and March 31, 1997          3

                  Condensed Consolidated Statements of Operations
                           For the Three and Nine Months Ended
                           December 31, 1997 and 1996                          5

                  Condensed Consolidated Statements of Cash Flows
                           For the Nine Months Ended
                           December 31, 1997 and 1996                          6

                  Notes to Condensed Consolidated Financial Statements         7


Item 2.   Management's Discussion and Analysis of Financial Condition
                  and Results of Operations                                   11

Item 3.   Quantitative and Qualitative Disclosures About Market Risk          12


                           Part II - Other Information

Item 1. Legal Proceedings                                                     19

Item 6.   Exhibits and Reports on Form 8-K                                    19

Signatures                                                                    20


                                       2
<PAGE>

<TABLE>

                                          PART I - FINANCIAL INFORMATION

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

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

                                                      ASSETS
<CAPTION>

                                                                              December 31,              March 31,
                                                                                  1997                    1997
                                                                               ----------              ----------

<S>                                                                            <C>                     <C>       
CURRENT ASSETS:
     Cash and cash equivalents                                                 $    5,220              $   13,532
     Accounts receivable, net of allowance for doubtful
         accounts of $1,207 and $2,139, respectively                               46,245                  26,279
     Inventories                                                                   38,979                  33,849
     Prepaid and other current assets                                               8,490                   4,611
                                                                               ----------              ----------
              Total current assets                                                 98,934                  78,271
                                                                               ----------              ----------

PROPERTY, PLANT AND EQUIPMENT:
     Land                                                                           1,050                   1,050
     Building and improvements                                                      7,533                   7,356
     Machinery and equipment                                                       20,619                  25,302
     Furniture, fixtures and office equipment                                       4,511                   4,511
                                                                               ----------              ----------
                                                                                   33,713                  38,219
     Less accumulated depreciation and amortization                               (16,238)                (18,941)
                                                                               ----------              ----------
              Net property, plant and equipment                                    17,475                  19,278
                                                                               ----------              ----------

INTANGIBLE ASSETS, net of accumulated amortization                                 16,768                  17,475
                                                                               ----------              ----------

OTHER ASSETS                                                                        1,826                   2,116
                                                                               ----------              ----------
                                                                               $  135,003              $  117,140
                                                                               ==========              ==========
</TABLE>








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

                                       3
<PAGE>


<TABLE>

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

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

                                       LIABILITIES AND SHAREHOLDERS' EQUITY
<CAPTION>

                                                                              December 31,             March 31,
                                                                                 1997                    1997
                                                                               ----------             ----------

<S>                                                                            <C>                    <C>       
CURRENT LIABILITIES:
     Notes payable to banks                                                    $   64,804             $   38,930
     Current maturities of long-term debt                                           2,469                  3,038
     Current maturities of Series A Bonds, issued
           to a related party                                                       4,500                     -
     Accounts payable                                                               5,189                  5,393
     Other current liabilities                                                      6,216                  9,785
                                                                               ----------             ----------
              Total current liabilities                                            83,178                 57,146
                                                                               ----------             ----------

LONG-TERM DEBT, net of current maturities                                          17,151                 16,487
                                                                               ----------             ----------

SERIES A BONDS,  issued to a related party                                          5,500                 10,000
                                                                               ----------             ----------

MINORITY INTEREST                                                                   1,604                  1,810
                                                                               ----------             ----------

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 and 11,129,127
            issued and outstanding, respectively                                      111                    111
     Additional paid-in capital                                                    36,299                 36,293
     Retained earnings (deficit)                                                   (2,305)                   858
     Cumulative foreign currency translation adjustments                           (6,535)                (5,565)
                                                                               ----------            -----------
              Total shareholders' equity                                           27,570                 31,697
                                                                               ----------            -----------
                                                                               $  135,003            $   117,140
                                                                               ==========            ===========
</TABLE>





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

                                       4
<PAGE>

<TABLE>

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

-------------------------------------------------------------------------------------------------------------------
<CAPTION>

                                                             For the Three Months                 For the Nine Months
                                                              Ended December 31,                   Ended December 31,
                                                            1997             1996                  1997           1996
                                                          --------         --------              --------       --------

<S>                                                       <C>              <C>                   <C>            <C>     
   NET SALES                                              $ 39,362         $ 60,305              $ 70,642       $ 93,529
   COST OF SALES                                            25,395           39,656                47,157         59,662
                                                          --------         --------              --------       --------
   GROSS PROFIT                                             13,967           20,649                23,485         33,867
                                                          --------         --------              --------       --------

   OPERATING EXPENSES:
        Selling                                              4,683            4,950                11,164         10,450
        General and administrative                             937            4,121                 8,668          8,710
        Research and development                               915              924                 3,081          2,354
        Warehousing and shipping                               674              565                 1,601          1,321
        Amortization of goodwill and intangibles               138                -                   554              -
                                                          --------         --------              --------       --------
                                                             7,347           10,560                25,068         22,835
                                                          --------         --------              --------       --------

   OPERATING INCOME (LOSS)                                   6,620           10,089                (1,583)        11,032
                                                          --------         --------              --------       --------
   OTHER INCOME (EXPENSE):
        Interest expense                                    (1,569)          (1,326)               (4,009)        (3,611)
        Equity in losses of unconsolidated
             subsidiary                                        -                  -                   -             (281)
        Other, net                                              86              713                   548            655
                                                          --------         --------              --------       --------
                                                            (1,483)            (613)               (3,461)        (3,237)
                                                          --------         --------              --------       --------
   NET INCOME (LOSS) BEFORE INCOME TAXES AND
        MINORITY INTEREST                                    5,137            9,476                (5,044)         7,795

   (PROVISION) BENEFIT FOR
          INCOME TAXES                                      (1,849)          (3,048)                1,816         (2,443)
   MINORITY INTEREST                                          (350)          (1,010)                   65         (1,010)
                                                          --------         --------              ---------      --------
                                                                                                            
   NET INCOME (LOSS)                                      $  2,938         $  5,418              $ (3,163)      $  4,342
                                                          ========         ========              =========      ========

   NET INCOME (LOSS) PER
         COMMON SHARE:
            Basic                                         $   0.26         $   0.49              $  (0.28)      $   0.43
                                                          ========         ========              ========       ========
            Diluted                                       $   0.26         $   0.48              $  (0.28)      $   0.43
                                                          ========         ========              ========       ========

   WEIGHTED AVERAGE SHARES:
            Basic                                       11,130,577       11,129,127            11,129,694     10,004,702
            Diluted                                     11,184,445       11,186,925            11,164,969     10,092,222
</TABLE>

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

                                       5
<PAGE>


<TABLE>

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

-------------------------------------------------------------------------------------------------------------------
<CAPTION>

                                                                                     For the Nine Months
                                                                                      Ended December 31,
                                                                                  1997                 1996
                                                                               ----------            ---------

<S>                                                                            <C>                   <C>      
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                                                           $  (3,163)            $   4,342
   Adjustments to reconcile net income to net cash
    used in operating activities:
     Minority interest in income (loss)                                              (65)                1,010
     Gain on sale of property, plant and equipment                                   (89)                 -
     Depreciation and amortization                                                 3,841                 2,756
     Equity in earnings of unconsolidated subsidiary                                -                      281
     Change in assets and liabilities:
        Increase in accounts receivable, net                                     (20,646)              (25,836)
        Increase in inventories                                                   (7,042)               (1,570)
        Increase in prepaid and other assets                                      (3,767)               (1,567)
        Increase in accounts payable                                                 605                   815
        Increase (decrease) in other current liabilities                          (2,735)                4,516
                                                                               ---------             ---------
NET CASH USED IN OPERATING ACTIVITIES                                            (33,061)              (15,253)
                                                                               ---------             ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property, plant and equipment                                   (5,694)               (7,342)
     Payment for purchase of DNR, net of cash acquired                              -                  (14,469)
     Proceeds from disposition of equipment                                        3,768                   591
                                                                               ---------             ---------
NET CASH USED IN INVESTING ACTIVITIES                                             (1,926)              (21,220)
                                                                               ---------             ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Net borrowings on notes payable to banks                                     27,729                29,403
     Proceeds from issuance of common stock, net                                       6                14,789
     Proceeds from issuance of long-term debt                                      3,173                10,118
     Principal payments on Series A Bonds                                              -                (3,500)

     Principal payments on long-term debt                                         (3,072)               (2,582)
                                                                               ---------             ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                         27,836                48,228
                                                                               ---------             ---------

Effect of foreign exchange rate changes on cash                                   (1,161)                  (76)
                                                                               ---------             ---------

Net increase (decrease) in cash and cash equivalents                              (8,312)               11,679
Cash and cash equivalents at beginning of period                                  13,532                 6,189
                                                                               ---------             ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                     $   5,220             $  17,868
                                                                               =========             =========
</TABLE>

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

                                       6
<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 results of operations  for the three and nine months ended December
31, 1997 are not  necessarily  indicative  of the results to be expected 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 Annual Report on Form 10-K for the year ended
March 31, 1997.

Note 2.  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 3.  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):
                                   December 31, 1997             March 31, 1997
                                  -------------------            --------------
         Raw materials               $      463                  $    1,054
         Work in process                  3,807                       2,739
         Finished goods                  34,709                      30,056
                                     ----------                  ----------
                                     $   38,979                  $   33,849
                                     ==========                  ==========

 
                                      7
<PAGE>



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

Note 4.  Investment in DNR Sportsystem

         On June 30, 1995, the Company  acquired 25% of the common shares of DNR
Sportsystem Ltd.  ("DNR"),  a Swiss  Corporation.  On June 26, 1996, the Company
acquired  an  additional  55% of the common  shares of DNR,  thus  bringing  the
Company's total ownership of DNR to 80%. Prior to its 80% ownership, the Company
accounted  for its then  25%  investment  in DNR  using  the  equity  method  of
accounting.

         The  following  unaudited pro forma  information  presents a summary of
consolidated  results of operations of the Company and DNR as if the Company had
owned 80% of DNR at the  beginning of the fiscal year ended March 31, 1997.  Pro
forma  adjustments  have been made to give effect to  amortization  of goodwill,
interest  expense on  acquisition  debt and certain other  adjustments.  The pro
forma  results have been prepared for  comparative  purposes  only.  They do not
purport to be indicative of the results of operations  which actually would have
resulted had the Company owned 80% of DNR for the entire first six months of the
fiscal year ended March 31, 1997.

                                                      For the Nine Months Ended
(Unaudited and in thousands except per share amounts) -------------------------
                                                             December  31,
                                                             -------------
                                                           1997         1996
                                                           ----         ----
                                                         (actual)    (pro forma)
Net Sales                                            $    70,642     $  112,399
Operating Income (Loss)                                   (1,583)        11,421
Net Income (Loss)                                         (3,163)         5,360
Net Income (Loss) per Common Share                   $     (0.28)    $     0.48


Note 5.  Intangible Assets

         Intangible  assets  consist  of  goodwill,   trade  names  and  license
arrangements  resulting from the Company's acquisition of DNR. Intangible assets
are  amortized  using the  straight-line  method over lives ranging from 5 to 30
years.  At  December  31, 1997 and March 31, 1997  accumulated  amortization  of
goodwill  and  intangible  assets  totaled  approximately  $1.1 million and $0.6
million, respectively.



                                       8
<PAGE>

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

         As a result of the outcome of the arbitration  proceedings  (see Note 8
and  Management's  Discussion  and  Analysis)  the  Company  may be  required to
reassess the realizability of the carrying value of intangible assets associated
with the acquisition of DNR.

Note 6.  New Pronouncements

         The Company adopted the provisions of Statement of Financial Accounting
Standards ("SFAS") No. 128, "Earnings per Share".  This statement  specifies the
computation,  presentation  and disclosure  requirements  for earnings per share
("EPS") for financial  statements  issued for all periods  ending after December
15, 1997. Basic net income (loss) per common share (Basic EPS) excludes dilution
and is computed by dividing net income (loss) by the weighted  average number of
common shares  outstanding during the year. Diluted net income (loss) per common
share  (Diluted EPS)  reflects the potential  dilution that could occur if stock
options were  exercised or  converted  into common  stock.  The  computation  of
Diluted  EPS does not  assume  exercise  of stock  options  that  would  have an
antidilutive effect on net income (loss) per common share. Net income (loss) per
common  share  amounts have been  restated for all periods  presented to reflect
Basic and Diluted EPS.

         For  the  quarters  ended  December  31,  1997  and  1996,  there  were
outstanding  options to purchase  595,500 and  719,000  shares of common  stock,
respectively,  that were not included in the  computation of Diluted EPS because
exercise  prices of such the options were greater than the average  market price
of common shares.

         In June 1997, the Financial Accounting Standards Board issued Statement
No. 130, "Reporting  Comprehensive  Income", and Statement No. 131, "Disclosures
about Segments of an Enterprise and Related  Information".  Both  statements are
effective for fiscal years beginning after December 15, 1997.



                                       9
<PAGE>

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

Note 7.  Other Matters

         Disclosures about Derivative Financial Instruments.

         The SEC has issued final rules governing  disclosure  requirements  for
financial instruments,  including derivatives.  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.  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 to hedge against future currency fluctuations.

         Gains and losses on foreign  currency  contracts  not intended 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.
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 as a result of a default by a counterparty is remote.

Note 8.  Recent Events
         As  discussed  in  Note 4  above  and in  Management's  Discussion  and
Analysis  of  Financial  Condition  and  Results of  Operations  the  Company is
involved in arbitration proceedings between Thomas P. Sims ("Sims") and DNR, the
Company's 80% owned subsidiary.

         Subsequent to December 31, 1997, the Company  entered into an agreement
whereby it would recoup  approximately  $2,000,000 of the legal costs previously
expensed by the Company.  This amount has been  recorded as an offset to general
and administrative expenses in the accompanying condensed consolidated statement
of operations.

                                       10
<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 leading designer, developer, manufacturer and
marketer of alpine ski bindings in the United States and  throughout  the world.
The Company is a holding company which operates through its subsidiaries, Marker
Deutschland GmbH ("Marker  Germany"),  Marker USA, Marker Japan,  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.  Each of Marker USA, Marker Japan and Marker
Canada has its own sales force and marketing departments for sales and marketing
of bindings and related  parts  directly to retailers in the United  States,  to
both  retailers  and  wholesalers  in Japan and to retailers  in Canada.  Marker
Austria   distributes  the  Company's  ski  bindings  into  Austria  through  an
independent sales force. 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 products are North America, Europe and Asia.

         In addition,  Marker  International,  through its 80% owned subsidiary,
DNR Sportsystem Ltd. ("DNR") (which is held by Marker International  through its
wholly-owned   Swiss   subsidiary   Marker  AG), and  through  its  wholly-owned
subsidiaries,  DNR USA, Inc. ("DNR USA"),  DNR North  America,  Inc. ("DNR North
America"),  Marker Germany, DNR Japan Co., Ltd. ("DNR Japan") and Marker Canada,
is a leading  designer,  developer,  manufacturer  and  marketer of  snowboards,
Interface Step-in SystemsTM, traditional snowboard bindings and snowboard boots.
DNR designs, develops and distributes snowboards and related products throughout
the world. DNR USA manufactures snowboards for distribution worldwide. DNR North
America,  Marker Germany,  DNR Japan and Marker Canada,  through their own sales
forces, market snowboards,  Interface Step-in SystemsTM,  snowboard bindings and
boots directly to retailers in the United States,  Germany,  Austria,  Japan and
Canada, respectively.

                                       11
<PAGE>



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

Quantitative and Qualitative Disclosure About Market Risk

         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  these   subsidiaries  in  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 quarter ended December 31, 1997, 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  15%,  11% and 11%,  respectively,  compared to the
corresponding  quarter of the prior year.  Such currency  exchange  fluctuations
resulted in a  corresponding  decrease in the value of the revenues and expenses
of Marker  Germany,  Marker  Japan and  Marker AG, as well as DNR and DNR Japan,
when converted to Dollars,  compared to the  corresponding  quarter of the prior
fiscal year.

                                       12
<PAGE>



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


         For the nine months ended  December 31, 1997,  average  exchange  rates
between the Dollar and the Mark,  the Dollar and the Yen, and the Dollar and the
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  16%,  10% and 16%,  respectively,  compared to the  corresponding
period of the prior year.  Such  currency  exchange  fluctuations  resulted in a
corresponding  decrease  in the value of the  revenues  and  expenses  of Marker
Germany,  Marker  Japan  and  Marker  AG,  as well as DNR  and DNR  Japan,  when
converted to Dollars,  compared to the corresponding  period of the prior fiscal
year.

         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. For additional information on Quantitative and
Qualitative  Disclosure About Market Risk, see Note 7 to the Company's Condensed
Consolidated Financial Statements, above.


Results of Operations

Comparison  of the three  months  ended  December 31, 1997 with the three months
--------------------------------------------------------------------------------
ended December 31, 1996
-----------------------

         Net sales for the quarter  ended  December 31, 1997  decreased to $39.4
million,  compared to $60.3 million for the  corresponding  quarter of the prior
fiscal year. The decrease in sales is primarily  attributable  to lower sales at
the Company's 80% owned  subsidiary,  DNR,  which  recognized a reduction in net
sales of  approximately  $23.8 million for the quarter ended  December 31, 1997,
compared to the  corresponding  quarter of the prior fiscal year.  DNR's reduced
sales  reflect  an  over-supply  of  snowboard  products  in the  market and the
restructuring of the brand of snowboard products distributed by the Company.

                                       13
<PAGE>



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


         In  addition,  sales  decreased as result of  translating  sales of the
Company's foreign  subsidiaries from their functional  currency to Dollars.  The
Dollar was  significantly  stronger against all of the functional  currencies of
the  Company's  foreign  subsidiaries  during the third  quarter of fiscal 1998,
compared to the corresponding quarter of the prior fiscal year.

         Net sales increased during the third quarter of fiscal 1998 compared to
the  corresponding  period  of the  prior  fiscal  year at all of the  Company's
subsidiaries, except DNR, as discussed above.

         Gross profit for the quarter ended December 31, 1997 decreased to $14.0
million,  or 35.5% of net  sales,  compared  to $20.6  million,  or 34.2% of net
sales, for the  corresponding  quarter of the prior fiscal year. The decrease in
gross profit was  attributable to the reduced sales at DNR, as discussed  above.
The increase in gross profit percentage is primarily  attributable to the timing
of shipments of the new Logic 1(R) high-end  binding,  which carries both higher
gross margin dollars and percentage.

         Operating expenses for the quarter ended December 31, 1997 decreased to
$7.3  million,  compared to $10.6 million for the  corresponding  quarter of the
prior fiscal year. The decrease in operating expenses is primarily  attributable
to the  recoupment  of  approximately  $2.0  million of legal fees that had been
expensed by the Company during the first and second quarter of fiscal 1998.

         In addition,  expenses decreased as a result of translating expenses of
the Company's foreign subsidiaries from their functional currency to Dollars. As
noted above, the Dollar was significantly stronger against all of the functional
currencies of the  Company's  foreign  subsidiaries  during the third quarter of
fiscal 1998, compared to the corresponding quarter of the prior fiscal year.

         The  income  tax  benefit  recognized  for each of the  quarters  ended
December  31,  1997 and 1996 was  calculated  using the  estimated  consolidated
annual  effective  tax rate which  considers the effective tax rates of domestic
and foreign tax jurisdictions.

                                       14
<PAGE>



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


Comparison of the nine months ended December 31, 1997 with the nine months ended
--------------------------------------------------------------------------------
December 31, 1996
-----------------

         Net sales for the nine months  ended  December  31, 1997  decreased  to
$70.6  million,  compared to $93.5 million for the  corresponding  period of the
prior fiscal year.  The  decrease in sales is  primarily  attributable  to lower
sales at the Company's 80% owned  subsidiary,  DNR, which recognized a reduction
in net sales of  approximately  $16.0 million for the nine months ended December
31, 1997,  compared to the corresponding  period of the prior fiscal year. Sales
also  decreased  as a  result  of  translating  sales of the  Company's  foreign
subsidiaries from their functional currency to Dollars.

         Gross profit for the nine months ended  December 31, 1997  decreased to
$23.5 million, or 33.2% of net sales, compared to $33.9 million, or 36.3% of net
sales,  for the  corresponding  period of the prior fiscal year. The decrease in
gross profit and gross profit  percentage  was primarily a result of lower sales
at DNR and lower gross profit  recognized  by DNR  compared to the  consolidated
gross profit of the  Company's  other  subsidiaries.  In  addition,  the Company
recognized  negative  gross  margins  as a result  of  under-utilization  of the
Company's snowboard manufacturing facility.

         Operating  expenses  for  the  nine  months  ended  December  31,  1997
increased  to $25.1  million,  compared to $22.8  million for the  corresponding
period of the prior fiscal year.  The increase  resulted  primarily from (i) the
full year  consolidation  of DNR's operating  expenses into those of the Company
which were  approximately  $2.0 million more for the nine months ended  December
31, 1997,  compared to the  corresponding  period of the prior fiscal year, (ii)
the recording of approximately  $1.3 million in operating  expenses  relating to
snowboard  distribution  subsidiaries which were not operational during the same
period of the prior fiscal year,  and (iii)  research and  development  expenses
relating to the Company's  collaborative agreement with NIKE. Operating expenses
decreased as a result of translating operating expenses of the Company's foreign
subsidiaries from their functional currency to Dollars.


                                       15
<PAGE>



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


         Interest  expense for the nine months ended December 31, 1997 increased
to $4.0 million,  compared to $3.6 million for the  corresponding  period of the
prior fiscal year. The increase was caused  primarily by higher working  capital
requirements  associated with the increase in inventories and the  establishment
of the Company's snowboard manufacturing and distribution subsidiaries.

         The income tax benefit  recognized  for each of the nine month  periods
ended December 31, 1997 and 1996 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.

         At December 31, 1997, the Company had working capital of $15.7 million,
compared to $21.1 million at March 31, 1997. The decrease in working  capital is
primarily  the  result  of  borrowing  on the  Company's  credit  lines  to fund
operating expenses during the first nine months of fiscal 1998. In addition, the
Company used working capital in the current period to sustain growth and finance
a portion of its current  expansion  into the snowboard  market through DNR USA,
DNR North America and DNR Japan.

         On June 26, 1997, the Company entered into a sale-leaseback  agreement.
Under this arrangement,  the Company sold  approximately $3.0 million of various
machinery  and  equipment  and  leased  it back  for a period  of 7  years.  The
leaseback  has  been  accounted  for  as  an  operating   lease.   The  gain  of
approximately  $0.2 million  realized in this  transaction has been deferred and
will be amortized to income in proportion to rental expense over the term of the
lease.


                                       16
<PAGE>



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


         At December  31,  1997,  the  Company's  primary  sources of  liquidity
consisted of cash and  short-term  investments  and available  borrowings  under
lines of credit.  The  Company has  approximately  $73.0  million in  short-term
credit facilities,  of which approximately $64.8 million had been borrowed as of
December 31, 1997.  Substantially  all of the Company's credit lines are secured
by inventory and  receivables.  The Company  believes that it will have adequate
bank lines to meet its cash flow demands during fiscal 1998.


         Recent Events
         During the quarter,  a ruling was issued in an  arbitration  proceeding
between Thomas P. Sims ("Sims") and DNR Sportsystem Ltd. ("DNR"),  the Company's
80% owned subsidiary. The arbitration arose out of a claim filed by Sims against
DNR for  breach of his  licensing  agreement  (the  "License")  with DNR for the
production and  distribution of snowboards and related products bearing the Sims
trademark   outside  the  United  States  and  Canada.   DNR  responded  with  a
counterclaim against Sims for wrongful termination of the License and for breach
of its right of first refusal in connection  with the transfer of the License by
Sims.

         On  December  1, 1997,  the  arbitrator  issued an Interim  Award which
resulted in a split decision.  The arbitrator  ruled that while Sims had a basis
for  terminating  the License for technical  noncompliance,  DNR was entitled to
damages  against  Sims for  failure  to honor  DNR's  right of first  refusal to
purchase the Sims  trademarks.  The right of first refusal entitled DNR to match
the price and terms at which  Sims sold his  trademarks  to a Boston  investment
firm in a complex  merger  transaction  in March of 1996.  The  arbitrator  also
concluded  that the soft  boot/step-in  binding  system was developed by Marker,
Tecnica  and DNR without any  drawings  or  concepts  that Sims  claimed to have
provided, and that Marker is the owner of the soft boot/step-in binding system.

         The arbitrator further ruled that DNR committed various breaches of the
License  Agreement,  primarily relating to defined sales percentages of Sims and
non-Sims  products prior to 1995,  change in technical control of DNR, and Sims'
option rights to purchase shares of DNR. The arbitrator,  however,  denied Sims'
claims that the quality of DNR's products did not meet  specified  standards and
that DNR's  conduct  after  termination  of the  License  constituted  trademark
infringement.


                                       17
<PAGE>



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


         The  arbitrator has scheduled  Phase II of the  arbitration to begin on
July 13, 1998 to determine the amount of damages for either party.



"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 those 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, 1997 and  elsewhere  in the  Company's
filings with the Securities and Exchange Commission.


                                       18
<PAGE>



                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings

         See the  description  set forth in Part I of this  Quarterly  Report on
Form 10-Q under the caption  "Management's  Discussion and Analysis of Financial
Condition and Results of Operations - Recent Events." Such  description  updates
the information  provided under the caption "Legal Proceedings" set forth in the
Company's Quarterly Report on Form 10-Q for the quarterly period ended September
30, 1997.


Item 6.  Exhibits and Reports on Form 8-K

         a)       Exhibits:
                  ---------

                  10.25    Sale/Leaseback    Agreement    with   Zions    Credit
                           Corporation for $3,000,000 of machinery and equipment
                           related  to  the  Company's  snowboard  manufacturing
                           subsidiary  dated  June 26,  1997.  (Filed as exhibit
                           10.25 to the  Company's  Form 10-Q  dated  August 13,
                           1997 and incorporated herein by reference).

                  27       Financial Data Schedule. *


         b)       Reports Filed on Form 8-K:
                  --------------------------


                  1.       Current  Report  on  Form 8-K dated December 9, 1997,
                           including   the   news   release   relating   to  the
                           Arbitrator's  decision  in  Phase  I of  the  binding
                           American Arbitration  Association  proceeding between
                           DNR  Sportstystem  Ltd.,  an 80% owned  subsidiary of
                           Marker, and Tom Sims.


----------------------
* Filed herewith.





                                       19
<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:  February 17, 1998                 /s/  Henry E. Tauber
                                          --------------------
                                          Henry E. Tauber
                                          Chairman of the Board,
                                          President and Chief
                                          Executive Officer

Dated:  February 17, 1998                 /s/  Kevin Hardy
                                          ----------------
                                          Kevin Hardy
                                          Chief Financial Officer


                                       20