SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

|X|         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000.



|_|         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________
            TO___________.

                           Commission File No. 0-27302

                                   LABTEC INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                 Massachusetts                           04-3116697
         -------------------------------              --------------
         (State or other jurisdiction of             (I.R.S. Employer
         incorporation or organization)              Identification No.)

1499 S.E. Tech Center Place, Suite 350, Vancouver, WA       98683
-----------------------------------------------------------------
       (Address of principal executive offices)            Zip Code

Registrant's telephone number, including area code: (360) 896-2000
                                                    --------------

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                       Yes      |X|               No       |_|

There were 4,013,590 shares of Common Stock outstanding at August 14, 2000.
<PAGE>
                                   LABTEC INC.
                                      INDEX

PART I - FINANCIAL INFORMATION
------------------------------

Item 1.  Financial Statements

              Consolidated Balance Sheets as of June 30, 2000 (unaudited)
                    and March 31, 2000......................................   4


              Consolidated Statements of Operations (unaudited) for the three
                    and nine month periods ended June 30, 2000..............   5

              Consolidated Statements of Cash Flows (unaudited) for the three
                    and nine month periods ended June 30, 2000..............   6

              Notes to Financial Statements (unaudited).....................   7

Item 2.  Management's Discussion and Analysis
             of Financial Statements (unaudited)............................  10

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.........  14

PART II -   OTHER INFORMATION
-----------------------------

Item 6.  Exhibits and Reports on Form 8-K...................................  15

         Signatures.........................................................  18

<PAGE>

                         PART I. - FINANCIAL INFORMATION

Item 1.          Financial Statements
                 --------------------

<TABLE>
<CAPTION>

                                   Labtec Inc.
                           Consolidated Balance Sheets
                    (In thousands, except per share amounts)

                              Assets                                June 30, 2000     March 31, 2000
                              ------                                -------------     --------------
                                                                     (Unaudited)
<S>                                                                   <C>               <C>
Current Assets:
   Cash...........................................................    $   1,475         $   1,373
   Accounts receivable, net.......................................       20,479            22,120
   Interest and other receivables.................................           20                16
   Inventories....................................................       16,041            13,955
   Prepaid expenses...............................................          172               171
   Current deferred income taxes..................................        1,743             1,854
                                                                      ---------         ---------
      Total current assets........................................       39,930            39,489

Property and equipment, net.......................................        2,610             2,332
Noncurrent deferred income taxes..................................        1,953             1,953
Debt issuance costs...............................................        2,176             2,277
Other noncurrent assets...........................................          179               180
Goodwill, net.....................................................       16,738            17,038
                                                                      ---------         ---------
                                                                      $  63,586         $  63,269
                                                                      =========         =========
          Liabilities and Shareholders' Equity (Deficit)

Current Liabilities:
   Line of credit.................................................    $  11,226          $ 10,761
   Current portion of long-term debt..............................        2,688             2,900
   Accounts payable...............................................       12,367             9,411
   Income taxes payable...........................................          226               185
   Accrued payroll and benefits...................................          813             1,359
   Accrued interest...............................................          242               256
   Other accrued expenses.........................................        1,430             1,539
                                                                      ---------         ---------
      Total current liabilities...................................       28,992            26,411

Long-term debt...................................................        26,068            28,747
                                                                      ---------         ---------
                                                                         55,060            55,158
                                                                      ---------         ---------

Commitments and contingencies....................................           ---               ---

Shareholders' Equity (Deficit):
Preferred stock, par value $.01, 1,000 share authorized and no
shares outstanding at June 30, or March 31, 2000                            ---               ---
Common stock, par value $.01, 25,000 shares authorized, 4,013
shares issued and outstanding at June 30, and March 31, 2000,
respectively......................................................           40                40
Additional paid-in capital........................................       23,824            23,806
Accumulated deficit...............................................      (15,299)          (15,688)
Accumulated other comprehensive income (loss):
      Cumulative foreign currency translation adjustment..........          (39)              (47)
                                                                      ---------         ---------
                                                                          8,526             8,111
                                                                      ---------         ---------
                                                                      $  63,586         $  63,269
                                                                      =========         =========

    The accompanying notes are an integral part of these financial statements

</TABLE>
                                      -4-
<PAGE>
                                  Labtec Inc.
      Consolidated Statements of Operations and Comprehensive Income (Loss)
                    (In thousands, except per share amounts)
                                   (Unaudited)

                                        Three Months Ended    Three Months Ended
                                           June 30, 2000        June 30, 1999
                                           -------------        -------------

Net sales                                    $ 24,088             $ 15,512

Cost of sales                                  14,442                9,175
                                             --------             --------

Gross profit                                    9,646                6,337
                                             --------             --------

Operating expenses:
  Selling and marketing                         5,225                3,349
  General and administrative                    1,279                1,037
  Research and development                        599                  498
  Depreciation                                    377                  346
  Amortization of goodwill                        299                  817
                                             --------             --------

                                                7,779                6,047
                                             --------             --------

Income from operations                          1,867                  290

  Interest expense, net                         1,172                  762
  Other nonoperating expense                       57                   27
                                             --------             --------

Total other expense                             1,229                  789
                                             --------             --------

Income (loss) before income taxes                 638                 (499)

Provision for income taxes                        249                   49
                                             --------             --------

Net income (loss)                            $    389             $   (548)
                                             ========             ========

Weighted average shares outstanding
     Basic                                      4,011                3,453
     Diluted                                    4,020                3,453

Net income (loss) per share
     Basic                                   $   0.10             $  (0.16)
                                             ========             ========
     Diluted                                 $   0.10             $  (0.16)
                                             ========             ========

Comprehensive income (loss):
  Net income (loss)                          $    389             $   (548)
  Change in cumulative translation adjustment      (1)                 (31)
                                             --------             --------
Comprehensive income (loss)                  $    388             $   (579)
                                             ========             ========

    The accompanying notes are an integral part of these financial statements

                                      -5-
<PAGE>
                                   Labtec Inc.
                      Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (Unaudited)
                                                  Three Months Ended June 30,
                                                  ---------------------------
                                                      2000           1999
                                                      ----           ----
Cash flow from operating activities
  Net income (loss)                                $   389        $  (548)
  Adjustments to reconcile net income (loss)
    to net cash provided by operating activities
      Depreciation                                     377            346
      Amortization of goodwill                         300            817
      Amortization of debt issuance costs              109            115
      Change in deferred income taxes                  111             87
      Compensation expense on stock options             10            ---
      Write-off of debt issuance costs                 ---            ---
  Changes in current assets and liabilities:
      Accounts receivable                            1,641          2,937
      Inventories                                   (2,086)           318
      Interest and other receivables                    (4)           (24)
      Income taxes receivables                         ---             59
      Prepaid expenses                                  (1)            28
      Accounts payable                               2,956         (3,050)
      Income taxes payable                              41            ---
      Accrued interest                                 (14)             9
      Accrued payroll and other expenses              (655)          (414)


                                                   -------        -------
Net cash provided by operating activities            3,174            679
                                                   -------        -------


Cash flow from investing activities
  Capital expenditures                                (653)          (299)
  Other assets                                         ---            121

                                                   -------        -------
Net cash used for investing activities                (653)          (178)
                                                   -------        -------


Cash flow from financing activities
  Net increase (decrease) in short-term credit
    facility                                           465           (800)
  Repayment of long-term debt                       (2,891)           ---
  Debt issuance costs                                   (8)           ---
  Proceeds from exercise of stock options                7             12

                                                   -------        -------
Net cash used in financing activities               (2,427)          (788)
                                                   -------        -------

Effect of foreign currency on cash                       8            (31)
                                                   -------        -------

Net increase (decrease) in cash                        102           (318)

Cash at beginning of period                          1,373            768
                                                   -------        -------

Cash at end of period                              $ 1,475        $   450
                                                   =======        =======

    The accompanying notes are an integral part of these financial statements

                                      -6-
<PAGE>

                                   Labtec Inc.
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

1.     Basis of Presentation

The accompanying  consolidated  financial statements are unaudited and have been
prepared by the Company  pursuant to the rules and regulations of the Securities
and  Exchange   Commission  and  in  the  opinion  of  management   include  all
adjustments,  consisting only of normal recurring adjustments, necessary for the
fair  statement  of results for the interim  periods.  Certain  information  and
footnote  disclosures  normally included in the financial statements prepared in
accordance with generally accepted accounting  principles have been condensed or
omitted pursuant to such rules and  regulations.  These  consolidated  financial
statements  and notes should be read in conjunction  with the audited  financial
statements  and notes thereto  included in the  Company's  annual report on Form
10-K for the year  ended  March 31,  2000.  The  results of  operations  for the
interim  periods are not  necessarily  indicative  of the results for the entire
year.

Reclassifications  have been made to  amounts  in prior  years to conform to the
current year  presentation.  These changes had no impact on previously  reported
results of operations or shareholders' equity.

2.     Accounts Receivable

Accounts  receivable are net of allowances  for doubtful  accounts and for sales
returns  of $1,303 and $1,290 at June 30 and March 31,  2000,  respectively.  At
June 30 and March 31, 2000, 9% and 13%,  respectively,  of receivables were from
one customer.

3.     Inventories

Inventories are manufactured by foreign factories  subcontracted by the Company.
Of total  inventories,  $219 and $450 was in  transit  at June 30, and March 31,
2000, respectively.

4.     Property and Equipment

Property and equipment consists of the following:

                                 June 30, 2000                March 31, 2000
                                 -------------                --------------
Leasehold improvements              $      117                   $      256
Tooling and molds                        1,603                        2,588
Furniture and equipment                  2,547                        2,473
Retail displays                          1,533                        2,145
                                    ----------                   ----------
                                         5,800                        7,462
Less: accumulated depreciation          (3,190)                      (5,130)
                                    ----------                   ----------
                                    $    2,610                   $    2,332
                                    ==========                   ==========



5.       Stock

On December 1, 1999 the Company  completed a one-for-two  reverse stock split of
its common stock.  Subsequent  to the reverse stock split,  one of the Company's
subordinate  debt  holders  converted  $1,500  principal  amount  of its  Senior
Subordinated Note due October 1, 2005 for 262 shares of common stock.  Also, the
Company's  majority  shareholder  converted  $824 of the Unsecured  Subordinated
Promissory Note due February 17, 2005 and $28 of accrued interest for 149 shares
of common stock.

                                      -7-
<PAGE>
6.       Earnings Per Share

Net income (loss) per share on a diluted basis is based on the weighted  average
number  of  shares  of common  stock  and all  potentially  dilutive  securities
outstanding  during the periods,  computed  using the treasury  stock method for
stock options.  Given the Company's net loss for the three months ended June 30,
1999,  the  dilutive  effect  of  stock  options  has  been  excluded  from  the
computation  of the weighted  average shares  outstanding.  For the three months
ended June 30, 2000,  the dilutive  impact of stock  options are included in the
computation  of net income per share in accordance  with FAS 128. On December 1,
1999 the Company had a  one-for-two  reverse stock split.  The weighted  average
shares outstanding in 1999 have been adjusted to reflect the reverse split.

Weighted average shares outstanding consist of the following:

                                                 For the Three Months Ended
                                                          June 30,
                                                          --------
                                                     2000             1999
                                                     ----             ----
Weighted average shares outstanding (basic)         4,011            3,453
Effect of dilutive stock options                        9              ---
                                                    -----            -----
Weighted average shares outstanding (diluted)       4,020            3,453
                                                    =====            =====


7.     Purchase of Connector Resources Unlimited, Inc.

On August 20,  1999,  Labtec,  Inc.  ("Labtec")  completed  the  acquisition  of
Connector Resources  Unlimited,  Inc. ("CRU"). As a result,  Labtec acquired all
the outstanding  shares of CRU for  approximately  $13,146 in cash and $1,500 in
debt.  Concurrent  with the  acquisition  of CRU,  Labtec entered into a $43,000
credit  facility  with a lender  and also sold 156  shares  of common  stock for
$1,000.  The net proceeds  from the credit  facility and proceeds from the stock
sale were used to retire outstanding debt and accrued interest totaling $23,400,
to pay debt issuance costs and loan fees on the new credit facility,  to pay for
certain  acquisition  costs  related  to the  purchase  of CRU and to  fund  the
purchase of CRU. CRU designs,  develops and markets computer peripheral products
principally in North America.  The  acquisition  was accounted for as a purchase
and therefore the operations of CRU have been included with those of the Company
since August 20, 1999.

The following sets forth the reconciliation of fair value of the assets acquired
and the liabilities assumed.

Purchase price                                                  $ 14,646
Fair value of tangible assets acquired                            (5,338)
Liabilities assumed                                                2,098
Direct costs of acquisition                                          755
                                                                --------
Excess of purchase price over fair value of tangible assets     $ 12,161
                                                                ========

The excess of the purchase price over fair value of tangible  assets acquired is
being amortized over an estimated useful life of twenty years.

The  following  unaudited  pro forma  information  presents  the  results of the
Company's  operations assuming the CRU acquisition  occurred at the beginning of
the  respective  three month  periods,  after giving effect to  adjustments  for
amortization  of  goodwill,  estimated  increase  in  interest  expense  and the
estimated impact on the income tax provision.

                                      -8-
<PAGE>

                                                      Three Months Ended
                                                          June 30,
                                                          --------
                                                     2000            1999
                                                     ----            ----
                                                         (unaudited)
Net sales                                          $ 24,088       $ 19,390
Net income (loss)                                       389           (222)
Net income (loss) per share:
Basic                                              $   0.10       $  (0.06)
Diluted                                                0.10          (0.06)

The unaudited pro forma financial  information is not necessarily  indicative of
the  operating  results that would have  occurred had the CRU  acquisition  been
consummated as of the beginning of each period, nor is it necessarily indicative
of future operating results.  The unaudited pro forma information should be read
in  conjunction  with the current report of the Company on Form 8-K dated August
20, 1999 and the current  report of the Company on Form 8-K/A filed  November 2,
1999.

8.     Borrowings

In  conjunction  with the purchase of CRU in August 1999, the Company repaid its
$7,500  revolving line of credit and $19,250  long-term loan with funds obtained
from a $27,000  long-term loan and a $16,000 revolving line of credit with other
lenders.  Also, a $1,500 seven and one-half year  promissory  note was issued to
the prior shareholders of CRU. Fees related to the extinguished  credit line are
included in the extraordinary  loss on extinguishment of debt. At June 30, 2000,
the long-term  loans and a portion of the revolving line of credit were accruing
interest at LIBOR plus  3.25-3.50%  and the  remaining  portion of the revolving
line of credit was accruing  interest at the prime rate plus 1.75%.  In December
1999, the Company  entered into an interest rate swap agreement with its primary
lender in order to fix the interest rate on a portion of its long-term  debt. At
June 30, 2000,  the amount of debt  subject to the fixed rate was  $12,450,  for
which the rate was 9.78%.  The bank line of credit is  secured by  substantially
all of the Company's  assets.  Loan fees paid to the banks and transaction  fees
relating to the term loan,  revolving  line of credit and  promissory  note were
$2,419 and have been recorded in debt issuance costs. The current line of credit
expires in September 2005 and the long-term debt expires June 30, 2005.


                                      -9-
<PAGE>

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

Overview

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

This Management's  Discussion and Analysis of Financial Condition and Results of
Operations  contains  forward-looking  statements that involve a number of risks
and  uncertainties.  The following are among the factors that could cause actual
results  to differ  materially  from the  forward-looking  statements:  business
conditions  and growth in the  personal  computer  and  workstation  industries;
general economies, both domestic and international; lower than expected customer
orders or variations in customer order patterns;  competitive factors, including
increased  competition,   new  product  offerings  by  competitors  and  pricing
pressures;  the  availability of parts and  components;  changes in product mix;
resource  constraints  encountered  in  developing  new  products;  and  product
shipment  interruptions due to manufacturing  difficulties.  The forward-looking
statements contained in the MD&A regarding industry trends,  product development
and liquidity and future  business  activities  should be considered in light of
these factors.

Three Months Ended June 30, 2000 Compared to Three Months Ended June 30, 1999

Net sales for the three  months  ended June 30,  2000  increased  $8,576,095  to
$24,088,354  from $15,512,259 for the period in fiscal 2000. The increase in net
sales  over the  periods  was due to the  increase  in sales  for the  Company's
personal audio, multimedia speaker and PC Voice Access(TM) line of products, and
the addition of sales from the data storage  product line.  Also,  the Company's
North American retail business  increased  substantially.  The Company's largest
customer  represented 9.8% of sales for the three months ended June 30, 2000, as
compared to 8.1% of sales for three months ended June 30, 1999.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Net Sales                      $24,088      $15,512          55%

Cost of sales increased $5,266,604 to $14,441,798 in the three months ended June
30, 2000 from  $9,175,194  in the period in fiscal 2000.  The increase  over the
periods was primarily the result of an increase in net sales. As a percentage of
net sales,  the cost of sales  increased  slightly  to 60.0% for fiscal  2001 as
compared to 59.1% for fiscal 2000.  The increase as a percentage of net sales is
attributable to airfreight  expense incurred because of the shortage of PC Voice
Access(TM) products.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Cost of Sales                  $14,442       $9,175          57%
As a % of Net Sales               60.0%        59.1%


                                      -10-
<PAGE>
Selling and  marketing  expenses  increased  over the periods by  $1,875,363  to
$5,224,665 from $3,349,302.  As a percentage of net sales, selling and marketing
expenses  increased  slightly  to 21.7%  from  21.6%.  The  dollar  increase  is
primarily a result of additional sales personnel, higher travel costs to support
the increased  sales volume,  increased  variable costs related to the increased
sales  volume,  and increased  marketing  efforts in the North  American  retail
portion  of the  business  to  maintain  market  share in this very  competitive
market.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Selling and marketing           $5,225       $3,349          56%
As a % of Net Sales               21.7%        21.6%


General and  administrative  expenses,  which  include the  Company's  corporate
finance, legal, human resources,  and administrative  functions,  increased over
the periods by $241,800 to $1,279,448  from  $1,037,648.  As a percentage of net
sales,  general and  administrative  expenses  decreased to 5.3% from 6.7%.  The
dollar increase is due primarily to labor costs related to the adding  personnel
for the CRU acquisition and bonuses accrued for to the Company's executives.  As
a  percentage  of net  sales,  general  and  administrative  expenses  decreased
primarily due to increased net sales.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
General and administrative      $1,279       $1,037          23%
As a % of Net Sales                5.3%         6.7%


Research  and  development  expenses  increased  over the periods by $101,006 to
$598,805  from  $497,799,  primarily  due to  the  increased  investment  in the
development  of  new  speaker  and  PC  Voice  Access(TM)  products  and  to the
enhancement  of  current  products.  Also,  the  dollar  increase  reflects  the
increased  hiring  of  employees  working  in  research  and  development.  As a
percentage of net sales,  research and  development  decreased  primarily due to
increased net sales.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Research and development         $599         $498           20%
As a % of Net Sales               2.5%         3.2%


Depreciation  increased  over the periods by $31,591 to $377,356 from  $345,765.
The increase was  primarily  the result of increased  capital  expenditures  for
tooling and molds for the new products being developed.  Depreciation  decreased
as a percentage of net sales primarily due to the increase in net sales.

                                      -11-
<PAGE>

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Depreciation                     $377         $346           9%
As a % of Net Sales               1.6%         2.2%


Amortization  decreased  over the periods by $517,328 to $299,370 from $816,698.
This decrease was the result of changing the Spacetec  amortization  of goodwill
from three (3) years to ten (10) years.  Goodwill (the  purchase  price paid for
Spacetec  and CRU in excess of the fair value of net  tangible  assets) is being
amortized  over ten (10)  years for  Spacetec  and  twenty  (20)  years for CRU.
Amortization  decreased  as a  percentage  of  net  sales  primarily  due to the
increase in net sales.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Amortization                     $299         $817          (63%)
As a % of Net Sales               1.2%        5.3%


Interest  expense  increased  over the periods by $410,562  to  $1,171,958  from
$761,396,  primarily as the result of the Company's  refinancing  and increasing
its debt in  conjunction  with the purchase of CRU.  Net  interest  expense as a
percentage of net sales remained the same.

                                        Three Months Ended
                                             June 30,
                                             --------
                                     (in thousands, except %)
                                 2001         2000         %Change
                                 ----         ----         -------
Interest expense, net           $1,172        $762           54%
As a % of Net Sales                4.9%        4.9%


The  provision for income taxes was $248,862 for the three months ended June 30,
2000,  as compared to $49,299  for the same period in fiscal  2000.  The primary
reason for the increase was the pre-tax income of $637,780 compared to a pre-tax
loss of $498,903 for the prior year.


Liquidity and Capital Resources

As of June 30, 2000, the Company had $1,474,985 in cash and cash equivalents and
working capital of $10,937,332.  The working capital balance decrease from March
31, 2000,  was  primarily due to the increase in borrowing on the line of credit
and increases in accounts  payable,  which was partially offset, by the increase
in inventory.

Net cash provided by operating  activities  was  $3,174,111 for the three months
ended June 30,  2000,  compared to cash  provided  by  operating  activities  of
$678,578 for the same period in fiscal 2000.  The increase in net cash  provided
by operating activities was primarily due to the increase in net income over the
prior year net loss and the increase in accounts  payable,  which was  partially
offset by an increase in inventories.

                                      -12-
<PAGE>
Net cash used in  investing  activities  was $653,122 for the three months ended
June 30, 2000, compared to net cash used in investing  activities of $177,558 in
fiscal 2000.  The increase was  primarily  due to capital  expenditures  for the
purchase of tooling and molds for the new products  being  developed this fiscal
year.

Financing activities used net cash of $2,426,523 for the three months ended June
30, 2000, principally for repayment of long-term debt.

At June 30, 2000, the long-term  loans were accruing  interest at the LIBOR rate
plus 3.25 - 3.50%, the subordinated note at 12%, the line of credit at the prime
rate  plus  1.75%,  and the  promissory  notes at 10% and 6%,  respectively.  In
December 1999, the Company entered into an interest rate swap agreement with its
primary  lender in order to fix the interest  rate on a portion of its long-term
debt.  At June 30,  2000,  the  amount of debt  subject  to the  fixed  rate was
$12,450,000, for which the rate was 9.78%.

The  Company  believes  that its  existing  cash and  revolving  line of credit,
together  with future funds from  operations,  will satisfy its need for working
capital and other cash requirements for at least the next twelve-month period.

Year 2000 Issues

The Year  2000  issue is the  result  of  date-sensitive  devices,  systems  and
computer programs that were deployed using two digits rather than four to define
the applicable year. Any such  technologies may recognize a year containing "00"
as the year  1900  rather  than the year  2000.  This  could  result in a system
failure or  miscalculation  causing  disruption of operations  including,  among
other things, a temporary inability to process transactions or engage in similar
normal business activities.

The Company did not experience  any  significant  malfunctions  or errors in its
information or business  systems when the date changed from 1999 to 2000.  Based
on its  operations  since  January  1,  2000,  the  Company  does not expect any
significant  problems  related to the Year 2000 issue.  However,  it is possible
that the full  impact of the date  change  has not been  fully  recognized.  For
example,  it is  possible  that Year 2000 or similar  issues,  such as leap year
related problems,  may occur with financial closings.  The Company believes that
any such problems will be minor and easily corrected.  In addition,  the Company
could still be negatively  impacted if the Year 2000 or similar issues adversely
affect its  customers or suppliers.  Currently,  the Company is not aware of any
significant Year 2000 or similar problems that have arisen with its customers or
suppliers.

                                      -13-
<PAGE>

Disclosure Regarding Private Securities Litigation Reform Act of 1995
---------------------------------------------------------------------

From time to time, the Company, through its management, may make forward-looking
public statements in press releases or other communications, such as statements
concerning then expected future revenues or earnings or alliances, product
development, and commercialization, as well as other estimates relating to
future operations. Forward-looking statements may be in reports filed under the
Securities Exchange Act of 1934, as amended, in press releases, or in oral
statements made with the approval of an authorized executive officer. The words
or phrases "believe," "will likely result," "are expected to," "will continue,"
"is anticipated," "estimate," or similar expressions are intended to identify
"forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934 and Section 27A of the Securities Act of 1933, as enacted
by the Private Securities Litigation Reform Act of 1995.

The Company wishes to caution readers not to place undue reliance on these
forward-looking statements which speak only as of the date on which they are
made. Various factors could affect the Company's financial or other performance,
and could cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
periods or events in any current statement. These facts include, but are not
limited to: business conditions and growth in the personal computer and
workstation industries and general economies, both domestic and international;
dependence on a limited number of retail customers; dependence on a limited
number of source suppliers; lower than expected customer orders or variations in
customer order patterns due to changes in demand for customers' products and
customers' inventory levels; competitive factors, including increased
competition, new product offerings by competitors and pricing pressures; changes
in product mix; dependence on proprietary technology; assertion of intellectual
property rights by third parties; technological difficulties and resource
constraints encountered in developing new products; product shipment
interruptions and other factors discussed herein and in the Company's other
filings with the Securities and Exchange Commission.

The Company will not undertake and specifically declines any obligation to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events which may cause management to reevaluate such forward-looking statements.

Item 3.          Quantitative and Qualitative Disclosures About Market Risk
                 ----------------------------------------------------------

                  None.

                                      -14-
<PAGE>

                           PART II - OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K


(a)      Exhibits:
<TABLE>
<CAPTION>

Number    Description of Exhibit                           Method of Filing
------    ----------------------                           ----------------
<S>      <C>                                              <C>
3.1       Restated Articles of Organization                Incorporated  by  reference to Exhibit 3.1 to the
                                                           Company's  Annual  Report  on Form  10-K  for the
                                                           fiscal  year ended March 31, 1999 (the "1999 Form
                                                           10-K")
3.2       Articles of Amendment                            Incorporated  by  reference to Exhibit 3.2 to the
                                                           1999 Form 10-K
3.3       Articles of Amendment                            Incorporated  by  reference to Exhibit 3.3 to the
                                                           Form  10-Q  for  the   quarterly   period   ended
                                                           September 30, 1999
3.4       Articles of Amendment                            Incorporated by reference to Exhibit 3.4 to the
                                                           Company's Quarterly Report on Form 10-Q for the
                                                           fiscal quarter entded December 31, 1999
3.5       Amended and Restated By-Laws of the Company      Incorporated  by  reference to Exhibit 3.3 to the
                                                           1999 Form 10-K
4.1       Specimen   certificate  for  shares  of  common  Incorporated  by  reference to Exhibit 4.1 to the
          stock of the Company                             1999 Form 10-K
10.1      Labtec Inc.  Amended and Restated 1997 Employee  Incorporated  by reference to Exhibit 10.1 to the
          Stock Option Plan                                1999 Form 10-K
10.2      1997  Employee   Stock  Option  Plan  -  Option  Incorporated  by reference to Exhibit 10.2 to the
          Certificate and Agreement                        1999 Form 10-K
10.3      Amended  and  Restated  1997   Employee   Stock  Incorporated  by reference to Exhibit 10.3 to the
          Option Plan - Option Certificate and Agreement   1999 Form 10-K
10.4      Amended and Restated Stock Option Plan           Incorporated  by reference to Exhibit 10.1 to the
                                                           Company's  Registration  Statement  on  Form  S-1
                                                           (Commission     File    No.     33-98064)    (the
                                                           "Registration Statement")
10.5      Amended  and  Restated  1995   Director   Stock  Incorporated  by reference to Exhibit 10.2 to the
          Option Plan                                      Company's  Annual  Report  on Form  10-K  for the
                                                           fiscal year ended March 31, 1997
10.6      1995 Employee Stock Purchase Plan                Incorporated  by reference to Exhibit 10.3 to the
                                                           Registration Statement
</TABLE>


                                      -15-
<PAGE>

<TABLE>
<CAPTION>

Number    Description of Exhibit                           Method of Filing
------    ----------------------                           ----------------
<S>      <C>                                              <C>
10.7      Amended  and  Restated  Agreement  and  Plan of  Incorporated  by  reference to Exhibit 2.1 to the
          Merger  among  Spacetec IMC  Corporation,  SIMC  Company's   Current  Report  on  Form  8-K  dated
          Acquisition  Corporation and Labtec Inc., dated  October  21,   1998  (date  of   earliest   event
          as of October 2, 1998,  as amended and restated  reported)  filed  with the  Commission  (File No.
          as of November 13, 1998                          0-27302) on November 17, 1998
10.8      Spacetec     IMC     Corporation      Unsecured  Incorporated  by reference to Exhibit 10.8 to the
          Subordinated  Promissory  Note  for  $1,065,000  1999 Form 10-K
          dated February 17, 1999
10.9      Stock  Purchase  Agreement,  dated as of August  Incorporated  by  reference to Exhibit 2.1 to the
          4, 1999,  among the Purchaser,  the Company and  Company's   Current  Report  on  Form  8-K  dated
          each   of   the   stockholders   of   Connector  August   20,   1999  (date  of   earliest   event
          Resources Unlimited, Inc.                        reported)  filed  with the  Commission  (File No.
                                                           0-27302)  on  September  2, 1999 (the  "1999 Form
                                                           8-K")
10.10     Promissory  Note,  dated as of August 20, 1999,  Incorporated  by  reference to Exhibit 2.2 to the
          issued  by the  Company  and  payable  to  Carl  1999 Form 8-K
          Gromada,  as  collection  agent for each of the
          stockholders of Connector Resources  Unlimited,
          Inc.
10.11     Form of  Credit  Agreement,  dated as of August  Incorporated  by  reference  to Exhibit  10.11 to
          20,   1999,   among  the  Company  and  certain  the Form  10-Q  for the  quarterly  period  ended
          subsidiaries,   various   guarantors,   various  September 30, 1999
          lending  institutions  and The Chase  Manhattan
          Bank, as agent
10.12     Recapitalization  Agreement  and Plan of Merger  Incorporated  by  reference  to Exhibit  10.12 to
          between  Speaker   Acquisition  Corp.  and  LEI  the 1999 Form 10-K
          Holdings, Inc., dated as of August 26, 1997
10.13     Lease Agreement,  dated April 24, 1997, between  Incorporated  by  reference  to Exhibit  10.13 to
          Pacific  Realty  Associates,  L.P.,  and Labtec  the 1999 Form 10-K
          Enterprises, Inc.
10.14     Lease   Agreement,   dated  February  4,  1998,  Incorporated  by  reference  to Exhibit  10.14 to
          between  Columbia  Tech  Center,   L.L.C.,  and  the 1999 Form 10-K
          Labtec Inc.
10.15     Labtec Enterprises,  Inc. $6,000,000  Principal  Incorporated  by  reference  to Exhibit  10.16 to
          Amount of Senior  Subordinated Notes and 50,000  the 1999 Form 10-K
          Shares  of  Common  Stock  Purchase  Agreement,
          dated October 7, 1997

</TABLE>


                                      -16-
<PAGE>
<TABLE>
<CAPTION>

Number    Description of Exhibit                           Method of Filing
------    ----------------------                           ----------------
<S>      <C>                                              <C>
10.16     Amendment  to Purchase  Agreement,  dated as of  Incorporated  by  reference  to Exhibit  10.17 to
          October  25,  1999 and  effective  as of August  the Form  10-Q  for the  quarterly  period  ended
          20, 1999,  between Labtec  Corporation  and The  September 30, 1999
          KB Mezzanine Fund II, L.P.
10.17     Recognition,   Non-Disturbance   and   Attorney  Incorporated  by reference to Exhibit 10.5 to the
          Agreement,  dated  December 26,  1995,  between  1996 Form 10-K
          the Company  and  Historic  Boott Mill  Limited
          Partnership
10.18     Royalty Agreement,  dated May 29, 1991, between  Incorporated  by reference to Exhibit 10.6 to the
          the Company and John A. Hilton                   Registration Statement
10.19     Resale  Agreement,  dated  as of May  1,  1991,  Incorporated  by reference to Exhibit 10.8 to the
          between  the  Company   and   Electronic   Data  Registration  Statement.   See  also  footnote  1
          Systems    Corporation    (as   successors   to  below.
          McDonnell Douglas  Corporation),  as amended by
          Amendment  No. 1 dated  December 23, 1993,  and
          Amendment No. 2 dated October 6, 1994
10.20     Distribution  and  Marketing  Agreement,  dated  Incorporated  by reference to Exhibit 10.9 to the
          April  28,   1994,   between  the  Company  and  Registration  Statement.   See  also  footnote  1
          Sumisho Electronic Devices Corporation           below.
10.21     Form   of   Confidentiality    and   Inventions  Incorporated  by  reference  to Exhibit  10.11 to
          Agreement between the Company and its employees  the Registration Statement.
10.22     Form of  Non-Disclosure  Agreement  between the  Incorporated  by  reference  to Exhibit  10.12 to
          Company and its consultants                      the Registration Statement.
10.23     Severance  Agreement,  dated  March  18,  1998,  Incorporated  by  reference  to Exhibit  10.15 to
          between the Company and Dennis T. Gain           the Company's  Annual Report on Form 10-K for the
                                                           fiscal year ended March 31, 1998
10.24     Employment  Agreement,   dated  June  1,  1998,  Incorporated  by  reference  to Exhibit  10.24 to
          between the Company and Gregory Jones            the 1999 Form 10-K
27.1      Financial Data Schedule                          Filed herewith
</TABLE>

--------

(1) Certain confidential material contained in the document has been omitted and
filed  separately with the Securities and Exchange  Commission  pursuant to Rule
406 of the Securities Act of 1933, as amended,  and Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.


       (b)   Reports on Form 8-K

             The Company has not filed any reports on Form 8-K during the
quarterly period ended June 30, 2000.



                                      -17-
<PAGE>


                                   SIGNATURES
                                   ----------

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


                                         LABTEC INC.


Dated:    August 14, 2000            By: /s/  Robert G. Wick
                                        ----------------------
                                              Robert G. Wick
                                              President and
                                              Chief Executive Officer










                                      -18-
<PAGE>

<TABLE>
<CAPTION>
                                  EXHIBIT INDEX
                                  -------------


Exhibit Number                             Description
--------------                             -----------
<S>                                       <C>
3.1                                        Restated Articles of Organization

3.2                                        Articles of Amendment

3.3                                        Articles of Amendment

3.4                                        Articles of Amendment

3.5                                        Amended and Restated By-Laws of the Company

4.1                                        Specimen certificate for shares of common stock of the
                                           Company

10.1                                       Labtec Inc. Amended and Restated 1997 Employee Stock
                                           Option Plan

10.2                                       1997 Employee Stock Option Plan - Option Certificate and
                                           Agreement

10.3                                       Amended  and  Restated  1997  Employee  Stock  Option  Plan
                                           - Option Certificate and Agreement

10.4                                       Amended and Restated Stock Option Plan

10.5                                       Amended and Restated 1995 Director Stock Option Plan

10.6                                       1995 Employee Stock Purchase Plan

10.7                                       Amended and Restated  Agreement  and Plan of Merger
                                           among  Spacetec IMC Corporation, SIMC Acquisition
                                           Corporation and Labtec Inc., dated as of October 2, 1998,
                                           as amended and restated as of November 13, 1998

10.8                                       Spacetec  IMC  Corporation  Unsecured Subordinated
                                           Promissory Note for $1,065,000 dated February 17, 1999

10.9                                       Stock  Purchase  Agreement,  dated as of August 4, 1999,
                                           among the Purchaser,  the Company and each of the
                                           stockholders  of  Connector Resources Unlimited, Inc.

10.10                                      Promissory Note, dated as of August 20, 1999,  issued by
                                           the Company and payable to Carl  Gromada,  as  collection
                                           agent for each of the stockholders of Connector Resources
                                           Unlimited, Inc.
</TABLE>

                                      -19-
<PAGE>

<TABLE>
<CAPTION>


Exhibit Number                             Description
--------------                             -----------
<S>                                       <C>
10.11                                      Form of Credit  Agreement,  dated as of August 20, 1999,
                                           among the Company  and  certain  subsidiaries,  various
                                           guarantors,  various lending institutions and The Chase
                                           Manhattan Bank, as agent

10.12                                      Recapitalization  Agreement  and  Plan  of  Merger  between
                                           Speaker Acquisition  Corp.  and LEI Holdings,  Inc.,  dated as
                                           of August 26, 1997

10.13                                      Lease  Agreement, dated April 24, 1997,  between Pacific
                                           Realty Associates,  L.P.,  and Labtec Enterprises, Inc.

10.14                                      Lease  Agreement,  dated  February 4, 1998,  between
                                           Columbia  Tech Center, L.L.C., and Labtec Inc.

10.15                                      Labtec  Enterprises,  Inc.  $6,000,000  Principal  Amount
                                           of Senior Subordinated Notes and 50,000 Shares of Common
                                           Stock Purchase Agreement, dated October 7, 1997

10.16                                      Amendment to Purchase  Agreement,  dated as of October,
                                           25,  1999 and effective as of August 20, 1999, between
                                           Labtec Corporation and The KB Mezzanine Fund II, L.P.

10.17                                      Recognition,  Non-Disturbance and Attorney Agreement,
                                           dated December 26, 1995, between the Company and
                                           Historic Boott Mill Limited Partnership

10.18                                      Royalty Agreement,  dated May 29, 1991, between the
                                           Company and John A. Hilton

10.19                                      Resale Agreement,  dated as of May 1, 1991, between the
                                           Company and Electronic  Data Systems  Corporation (as
                                           successors to McDonnell  Douglas Corporation), as amended
                                           by Amendment No. 1 dated  December 23,  1993,  and
                                           Amendment No. 2 dated October 6, 1994

10.20                                      Distribution and Marketing Agreement,  dated April 28,
                                           1994, between the Company and Sumisho Electronic
                                           Devices Corporation

10.21                                      Form of Confidentiality and Inventions   Agreement  between
                                           the Company and its employees

10.22                                      Form  of  Non-Disclosure Agreement  between  the  Company
                                           and  its consultants
</TABLE>

                                      -20-
<PAGE>

<TABLE>
<CAPTION>


Exhibit Number                             Description
--------------                             -----------
<S>                                       <C>
10.23                                      Severance  Agreement,  dated March 18, 1998, between the
                                           Company and Dennis T. Gain

10.24                                      Employment  Agreement,  dated June 1, 1998,  between the
                                           Company and Gregory Jones

27.1                                       Financial Data Schedule
</TABLE>

                                      -21-