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 September 30, 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 October 31, 1997
    ---------------------                       -------------------------------
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 September 30, 1997 and March 31, 1997        3

                  Condensed Consolidated Statements of Operations
                           For the Three and Six Months Ended
                           September 30, 1997 and 1996                        5

                  Condensed Consolidated Statements of Cash Flows
                           For the Six Months Ended
                           September 30, 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                                                  18

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)

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

                                                      ASSETS

                                                                             September 30,              March 31,
                                                                                 1997                     1997
                                                                               --------                 --------

CURRENT ASSETS:
<S>                                                                            <C>                     <C>       
     Cash and cash equivalents                                                 $    6,623              $   13,532
     Accounts receivable, net of allowance for doubtful
         accounts of $1,186 and $2,139, respectively                               39,220                  26,279
     Inventories                                                                   47,803                  33,849
     Prepaid and other current assets                                               8,208                   4,611
                                                                               ----------              ----------
              Total current assets                                                101,854                  78,271
                                                                               ----------              ----------

PROPERTY, PLANT AND EQUIPMENT:
     Land                                                                           1,050                   1,050
     Building and improvements                                                      7,508                   7,356
     Machinery and equipment                                                       19,799                  25,302
     Furniture, fixtures and office equipment                                       4,539                   4,511
                                                                               ----------              ----------
                                                                                   32,896                  38,219
     Less accumulated depreciation and amortization                               (15,535)                (18,941)
                                                                               ----------              ----------
              Net property, plant and equipment                                    17,361                  19,278
                                                                               ----------              ----------

INTANGIBLE ASSETS, net of accumulated amortization                                 17,112                  17,475
                                                                               ----------              ----------

OTHER ASSETS                                                                        1,994                   2,116
                                                                               ----------              ----------
                                                                               $  138,321              $  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)

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

                                       LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                             September 30,              March 31,
                                                                                 1997                     1997
                                                                               --------                 --------

CURRENT LIABILITIES:
<S>                                                                            <C>                    <C>       
     Notes payable to banks                                                    $   67,765             $   38,930
     Current maturities of long-term debt                                           3,751                  3,038
     Accounts payable                                                               6,404                  5,393
     Other current liabilities                                                      7,532                  9,785
                                                                               ----------             ----------
              Total current liabilities                                            85,452                 57,146
                                                                               ----------             ----------

LONG-TERM DEBT, net of current maturities                                          16,468                 16,487
                                                                               ----------             ----------

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

MINORITY INTEREST                                                                   1,273                  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)                                                   (5,242)                   858
     Cumulative foreign currency translation adjustments                           (6,040)                (5,565)
                                                                               -----------            -----------
              Total shareholders' equity                                           25,128                 31,697
                                                                               -----------            ----------
                                                                               $  138,321            $   117,140
                                                                               ==========            ===========

</TABLE>




      The accompanying notes to condensed consolidated financial statement
      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 Six Months
                                                              Ended September 30,                  Ended September 30,
                                                             --------------------                  -------------------
                                                            1997             1996                  1997           1996
                                                          --------         --------              --------       --------

<S>                                                       <C>              <C>                   <C>            <C>     
   NET SALES                                              $ 29,009         $ 31,718              $ 31,280       $ 33,224
   COST OF SALES                                            19,674           19,163                21,762         20,006
                                                          --------         --------              --------       --------
   GROSS PROFIT                                              9,335           12,555                 9,518         13,218
                                                          --------         --------              --------       --------

   OPERATING EXPENSES:
        Selling                                              3,622            3,159                 6,481          5,500
        General and administrative                           4,672            2,170                 7,731          4,589
        Research and development                             1,174              769                 2,166          1,430
        Warehousing and shipping                               488              442                   927            756
        Amortization of goodwill and intangibles               189                -                   416              -
                                                          --------         ----------            --------       --------
                                                            10,145            6,540                17,721         12,275
                                                          --------         --------              --------       --------

   OPERATING INCOME (LOSS)                                    (810)           6,015                (8,203)           943
                                                          ---------        --------              --------       --------
   OTHER INCOME (EXPENSE):
        Interest expense                                    (1,326)          (1,264)               (2,440)        (2,285)
        Equity in losses of unconsolidated subsidiary            -             (201)                    -           (281)
        Other, net                                              78              (44)                  462            (58)
                                                          --------         --------              --------       --------
                                                            (1,248)          (1,509)               (1,978)        (2,624)
                                                          --------         --------              --------       --------
   NET INCOME (LOSS) BEFORE INCOME TAXES AND
        MINORITY INTEREST                                   (2,058)           4,506               (10,181)        (1,681)

   (PROVISION) BENEFIT FOR INCOME TAXES                        821           (1,622)                3,665            605
   MINORITY INTEREST                                           191                -                   415              -
                                                          --------         --------              --------       --------

   NET INCOME (LOSS)                                      $ (1,046)        $  2,884              $ (6,101)      $ (1,076)
                                                          =========        ========              ========       ========

   NET INCOME (LOSS) PER
         COMMON SHARE                                     $  (0.09)        $   0.28              $  (0.55)      $  (0.11)
                                                          ========         ========              ========       ========

   WEIGHTED AVERAGE SHARES OUTSTANDING                  11,129,372       10,457,658            11,129,250      9,515,425
                                                        ==========       ==========            ==========      =========
</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 Six Months
                                                                                     Ended September 30,
                                                                               -------------------------------
                                                                                 1997                  1996
                                                                               ---------             ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                            <C>                   <C>       
   Net loss                                                                    $  (6,101)            $  (1,076)
   Adjustments to reconcile net income to net cash
    used in operating activities:
     Minority interest in loss                                                      (414)                    -
     Gain on sale of property, plant and equipment                                   (85)                    -
     Depreciation and amortization                                                 2,619                 1,602
     Equity in earnings of unconsolidated subsidiary                                   -                   281
     Change in assets and liabilities:
        Increase in accounts receivable, net                                     (12,257)              (24,765)
        Increase in inventories                                                  (14,889)               (8,642)
        Increase in prepaid and other assets                                      (3,516)               (3,461)
        Increase in accounts payable                                                  91                 1,256
        Increase in other current liabilities                                        341                 1,620
                                                                               ---------             ---------
NET CASH USED IN OPERATING ACTIVITIES                                            (34,211)              (33,185)
                                                                               ---------             ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property, plant and equipment                                   (4,252)               (3,612)
     Payment for purchase of DNR, net of cash acquired                                 -               (14,469)
     Proceeds from disposition of equipment                                        3,763                     -
                                                                               ---------             ---------
NET CASH USED IN INVESTING ACTIVITIES                                               (489)              (18,081)
                                                                               ----------            ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Net borrowings on notes payable to banks                                     29,407                33,587
     Proceeds from issuance of common stock, net                                       6                14,789
     Proceeds from issuance of long-term debt                                      2,084                 7,656
     Principal payments on long-term debt                                         (1,578)               (1,582)
                                                                               ---------             ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                         29,919                54,450
                                                                               ---------             ---------

Effect of foreign exchange rate changes on cash                                   (2,128)                 (458)
                                                                               ---------             ---------

Net increase (decrease) in cash and cash equivalents                              (6,909)                2,726
Cash and cash equivalents at beginning of period                                  13,532                 6,189
                                                                               ---------             ---------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                     $   6,623             $   8,915
                                                                               =========             =========
</TABLE>

      Theaccompanying 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 six months ended  September
30, 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):
                                     September 30, 1997         March 31, 1997
                                    --------------------        --------------
         Raw materials                 $      445               $    1,054
         Work in process                    4,463                    2,739
         Finished goods                    42,895                   30,056
                                       ----------               ----------
                                       $   47,803               $   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 Six Months Ended
(Unaudited and in thousands except per share amounts)         September  30,
                                                              --------------
                                                             1997        1996
                                                             ----        ----
                                                           (actual)  (pro forma)
Net Sales                                              $    31,280   $   65,337
Operating Income (Loss)                                     (8,203)       6,250
Net Income (Loss)                                           (6,101)       2,086
Net Income (Loss) per Common Share                     $     (0.55)  $     0.19


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 September  30, 1997 and March 31, 1997  accumulated  amortization  of
goodwill  and  intangible  assets  totaled  approximately  $1.0 million and $0.6
million, respectively.



                                       8
<PAGE>

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

Note 6.  New Pronouncements

         In February 1997,  the Financial  Accounting  Standards  Board released
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.  Early  adoption is prohibited and
upon adoption,  all prior period EPS data  presented must be restated.  SFAS 128
simplifies  the  standards for computing EPS in comparison to APB Opinion No. 15
and  replaces  the  presentations  of Primary  EPS and Fully  Diluted EPS with a
presentation  of Basic EPS and Diluted EPS. The Company  believes  that SFAS 128
will not have a material impact when adopted.

         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.


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.






                                       9
<PAGE>


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

         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 is remote.



























                                       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 and Marker Japan has its
own sales force and  marketing  departments  for sales and marketing of bindings
and  related  parts  directly to  retailers  in the United  States,  and to both
retailers and wholesalers in Japan. Marker Austria distributes the Company's ski
bindings  into  Austria  through  an  independent  sales  force.  Marker  Canada
distributes  the  Company's ski bindings into Canada which are then sold through
an  independent  distributor.  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")  and DNR  Japan  Co.,  Ltd.  ("DNR  Japan"),  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 and DNR
Japan,  through their own sales forces,  market  snowboards,  Interface  Step-in
SystemsTM,  snowboard  bindings  and boots  directly to  retailers in the United
States and Japan, 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  September  30,  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 21%, 9% and 22%,  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 six months ended  September 30, 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  17%,  10% and 19%,  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  September  30, 1997 with the three months
ended September 30, 1996

         Net sales for the quarter ended September 30, 1997,  decreased to $29.0
million,  compared to $31.7 million for the  corresponding  quarter of the prior
fiscal year. The decrease in sales is primarily  attributable to late deliveries
of Marker's new Logic 1(R) ski binding line which was introduced  this year. The
new Logic 1(R) binding line replaces  Marker's  previous high-end binding models
which account for a significant  portion of the Company's dollar sales and gross
margin.  Production  of the Logic 1(R) series  began in late June 1997,  and the
majority of these bindings will be delivered to Marker  customers and recognized
as sales in the Company's third fiscal quarter which ends December 31, 1997.






                                       13
<PAGE>

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

         In addition,  sales  decreased as a 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 second  quarter of fiscal 1998,
compared to the corresponding quarter of the prior fiscal year.  The decrease in
sales  was  offset  in part by the  consolidation  of the  Company's  80%  owned
subsidiary DNR, which was not consolidated  during the corresponding  quarter of
the prior fiscal year.

         Gross profit for the quarter ended September 30, 1997 decreased to $9.3
million,  or 32.1% of net  sales,  compared  to $12.6  million,  or 39.7% of net
sales, for the  corresponding  quarter of the prior fiscal year. The decrease in
gross  profit and gross  profit  percentage  was  primarily  a result of (i) the
timing of shipments of the new Logic 1(R) high-end  binding, which  carries both
higher gross margin  dollars and  percentage,  which will be  recognized  in the
Company's  third  fiscal   quarter,   (ii)  negative  gross  margins  caused  by
underutilization of the Company's snowboard  manufacturing  facility,  and (iii)
lower  gross  margins  recognized  by DNR  compared to the  consolidated  margin
percentage of the Company's other subsidiaries. DNR recognizes gross margin only
on sales of its products to  distributors  at the  wholesale  level,  unlike the
Company's  other  subsidiaries  which recognize gross margin from sales of their
products at the production, wholesale and distribution levels.

         Operating  expenses for the quarter ended  September 30, 1997 increased
to $10.1 million,  compared to $6.5 million for the corresponding quarter of the
prior  fiscal year.  Approximately  $3.1 million of the increase was a result of
the  consolidation  of DNR and  $0.5  million  of the  increase  related  to the
Company's   snowboard   distribution   subsidiaries,   neither   of  which  were
consolidated  in the  corresponding  quarter  of the prior  fiscal  year.  DNR's
operating  expenses  for the  quarter  include  approximately  $1.0  million  of
nonrecurring legal fees related to arbitration proceedings (see Part II, Item 1.
Legal  Proceedings,  herein).  No similar  legal fees were  incurred  during the
second quarter of the prior fiscal year.

         The  income  tax  benefit  recognized  for each of the  quarters  ended
September  30, 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 six months ended September 30, 1997  with the six months ended
September 30, 1996

         Net sales for the six months ended  September  30,  1997,  decreased to
$31.3  million,  compared to $33.2 million for the  corresponding  period of the
prior fiscal  year.  The  decrease in sales is  primarily  attributable  to late
deliveries of Marker's new Logic 1(R) ski binding line which was introduced this
year.  The new Logic 1(R)  binding  line  replaces  Marker's  previous  high-end
binding models which account for a significant  portion of the Company's  dollar
sales and gross  margin.  Production of the Logic 1(R) series began in late June
1997, and the majority of these  bindings will be delivered to Marker  customers
and  recognized  as sales in the  Company's  third  fiscal  quarter  which  ends
December 31, 1997.

         In addition,  sales decreased as a 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 first six months of fiscal 1998,
compared to the corresponding  period of the prior fiscal year. This decrease in
sales  was  offset  in part by the  consolidation  of the  Company's  80%  owned
subsidiary,  DNR, which was not consolidated during the corresponding  period of
the prior fiscal year.

         Gross profit for the six months ended September 30, 1997,  decreased to
$9.5 million, or 30.4% of net sales,  compared to $13.2 million, or 39.8% 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 (i) the
timing of shipments of the new Logic 1(R) high-end binding,  which  carries both
higher gross margin  dollars and  percentage,  which will be  recognized  in the
Company's  third  fiscal   quarter,   (ii)  negative  gross  margins  caused  by
underutilization of the Company's snowboard  manufacturing  facility,  and (iii)
lower  gross  margins  recognized  by DNR  compared to the  consolidated  margin
percentage of the Company's other subsidiaries.

         Operating  expenses  for the  six  months  ended  September  30,  1997,
increased  to $17.7  million,  compared to $12.3  million for the  corresponding
period of the prior fiscal year.  The increase  resulted  primarily from (i) the
consolidation  of  approximately  $4.5 million in DNR's operating  expenses into
those of the  Company,  (ii) the  recording  of  approximately  $ 0.8 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.   DNR's   operating   expenses  for  the  period  include
approximately  $1.5 million of  nonrecurring  legal fees related to  arbitration
proceedings (see Part II, Item 1. Legal Proceedings, herein).



                                       15
<PAGE>

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

         Interest expense for the six months ended September 30, 1997, increased
to $2.4 million,  compared to $2.3 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 six month  periods
ended   September  30,  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  September  30,  1997,  the  Company  had  working  capital of $16.4
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 six 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  September  30, 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  $74.8  million in  short-term
credit facilities,  of which approximately $67.8 million had been borrowed as of
September 30, 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, an arbitration hearing was conducted 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 of 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 the  License.  Sims had  previously  filed an action in the
Superior  Court of  California  for the County of Santa  Barbara (the  "Superior
Court")  against the Company and DNR and, on November  27,  1996,  was granted a
preliminary  injunction  against  the  Company  and  DNR,  preventing  DNR  from
manufacturing,  shipping,  selling or distributing  snowboard  products with the
Sims trademark, pending the outcome of the arbitration.

         The arbitration hearing began on July 1, 1997 and was concluded on July
30, 1997. The arbitrator  thereafter  established a schedule for the exchange of
briefs, in lieu of closing arguments, that extended into early October 1997. The
arbitrator  has  advised  that he will  render a written  decision  on or before
December 2, 1997.

         The preliminary injunction is not a final judgment and factual findings
made by the Superior  Court in the  preliminary  injunction  proceeding  are not
binding upon the arbitrator.  Under the terms of the License,  the  arbitrator's
award is binding on the parties  and is not  subject to appeal or further  court
review except for extraordinary circumstances.




                                       17
<PAGE>

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

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


                           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 June 30,
1997.







                                       18
<PAGE>
                    PART II - OTHER INFORMATION (Continued)


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  July  22,  1997,
                         including the news release relating to a  collaborative
                         arrangement between Marker International and NIKE, Inc.
                         relating to snowboarding products.


----------------------
* 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:  November 14, 1997                                /s/  Henry E. Tauber
                                                         --------------------
                                                         Henry E. Tauber
                                                         Chairman of the Board,
                                                         President and Chief
                                                         Executive Officer

Dated:  November 14, 1997                                /s/  Terry J. Tuttle
                                                         --------------------
                                                         Terry J. Tuttle
                                                         Chief Financial Officer






















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