<PAGE>   1
                       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 March 31, 1998

                                       OR

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

                         Commission file number 0-27670

                           ENGINEERING ANIMATION, INC.
             [EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER]

          DELAWARE                                42-1323712
(STATE OR OTHER JURISDICTION OF                (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION)               IDENTIFICATION NUMBER)

                              2321 NORTH LOOP DRIVE
                                AMES, IOWA 50010
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

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

                                  (515)296-9908
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

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


         INDICATE BY CHECK ( X ) 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.

                  (1)      YES         X                      NO      
                                    --------                           --------

                  (2)      YES         X                      NO      
                                    --------                           --------


         AS OF MAY 8, 1998, THERE WERE 10,213,125 SHARES OF THE REGISTRANT'S
$0.01 PAR VALUE COMMON STOCK OUTSTANDING.




<PAGE>   2

                           ENGINEERING ANIMATION, INC.

                                    FORM 10-Q

                                      INDEX


<TABLE>
<CAPTION>
PART I.        FINANCIAL INFORMATION                                                                      PAGE

<S>                                                                                                           <C>
Item 1.        Financial Statements

               Condensed Consolidated Balance Sheets
               At March 31, 1998 and December 31, 1997                                                        3

               Condensed Consolidated Statements of Operations
               For the three months ended March 31, 1998 and 1997                                             4

               Condensed Consolidated Statements of Cash Flows
               For the three months ended March 31, 1998 and 1997                                             5

               Notes to Condensed Consolidated Financial Statements                                           6

Item 2.        Management's Discussion and Analysis of Financial
               Condition and Results of Operations                                                            8


PART II.       OTHER INFORMATION

Item 2.        Changes in Securities                                                                         12

Item 4.        Submission of Matters to a Vote of Security Holders                                           12

Item 6.        Exhibits and Reports on Form 8-K                                                              12

SIGNATURES                                                                                                   13
</TABLE>


                                       2
<PAGE>   3



PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statements

                           ENGINEERING ANIMATION, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in thousands, except share data)

<TABLE>
<CAPTION>
                                                                           ----------------------------
                                                                           March 31,        December 31,
                                                                             1998               1997
                                                                           ---------        -----------
ASSETS                                                                    (Unaudited)           (Note)
<S>                                                                        <C>                <C>
Current assets:
    Cash and cash equivalents                                              $  17,351          $  24,892
    Short-term investments                                                    20,877             15,406
    Accounts receivable:
       Billed                                                                 13,741             15,617
       Unbilled                                                                8,337              6,321
    Deferred income taxes                                                        701                701
    Prepaid expenses                                                           1,612              1,554
                                                                           ---------          ---------
       Total current assets                                                   62,619             64,491

Property and equipment, net                                                   12,934             11,394

Other assets:
    Note receivable                                                            1,408              1,408
    Software development costs, net                                            1,355              1,396
    Goodwill, net                                                              1,136              1,212
    Other                                                                        476                601
                                                                           ---------          ---------
       Total assets                                                        $  79,928          $  80,502
                                                                           =========          =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
    Accounts payable                                                       $   3,608          $   2,885
    Accrued compensation and other accrued expenses                            2,888              4,416
    Deferred revenue                                                           2,433              2,546
    Current portion of long-term debt and lease obligations                      155                176
                                                                           ---------          ---------
       Total current liabilities                                               9,084             10,023

Long-term debt and lease obligations due after one year                        1,417              1,495
Deferred income taxes                                                            455                653

Stockholders' equity                                                          68,972             68,331
                                                                           ---------          ---------
       Total liabilities and stockholders' equity                          $  79,928          $  80,502
                                                                           =========          =========
</TABLE>


Note:      The balance sheet at December 31, 1997 has been derived from the
           audited financial statements at that date but does not include all of
           the information and footnotes required by generally accepted
           accounting principles for complete financial statements.
See accompanying notes.






                                       3
<PAGE>   4




                           ENGINEERING ANIMATION, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except per share data; unaudited)


<TABLE>
<CAPTION>
                                                           ----------------------------
                                                           Three Months ended March 31,
                                                              1998               1997
                                                            --------           --------
<S>                                                         <C>                <C>
 Net revenues:
     Software products                                      $ 10,232           $  5,072
     Interactive products                                      5,564              4,627
                                                            --------           --------
Total revenues                                                15,796              9,699

Cost of revenues                                               4,333              2,608
                                                            --------           --------
Gross profit                                                  11,463              7,091

Operating expenses:
     Sales and marketing                                       4,478              3,193
     General and administrative                                1,666              1,142
     Research and development                                  2,347              1,401
     Purchased technology                                      4,249               --
                                                            --------           --------
Total operating expenses                                      12,740              5,736
                                                            --------           --------
Income (loss) from operations                                 (1,277)             1,355

Other income, net                                                555                225
                                                            --------           --------
Income (loss) before income taxes
  and minority interest                                          (722)             1,580

Income tax expense (benefit)                                    (274)               616
                                                            --------           --------
Net income (loss) before minority interest                      (448)               964

Minority Interest                                               --                  (58)
                                                            --------           --------
Net income (loss)                                           $   (448)          $    906
                                                            ========           ========
Earnings (loss) per share:
     Basic                                                  $  (0.05)          $   0.12
                                                            ========           ========
     Diluted                                                $  (0.05)          $   0.10
                                                            ========           ========
     Weighted average shares outstanding                       9,881              7,864
                                                            ========           ========
     Weighted average shares outstanding
       and assumed conversion                                  9,881              9,159
                                                            ========           ========
</TABLE>

See accompanying notes.


                                       4
<PAGE>   5






                           ENGINEERING ANIMATION, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (in thousands; unaudited)


<TABLE>
<CAPTION>
                                                                      ---------------------------
                                                                      Three Months ended March 31,
                                                                        1998               1997
                                                                      --------           --------

<S>                                                                   <C>                <C>
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                   $   (916)          $    376

INVESTING ACTIVITIES
Purchases of property and equipment                                     (2,120)            (1,088)
Development of software                                                    (96)              (250)
Maturities of marketable securities                                     11,525              2,417
Purchases of marketable securities                                     (16,996)              --
                                                                      --------           --------
     Net cash provided by (used in) investing activities                (7,687)             1,079

FINANCING ACTIVITIES
Decrease in restricted cash                                                 72                 71
Payments on long-term debt                                                 (99)               (85)
Net proceeds from issuance of common stock                               1,089                 18
                                                                      --------           --------
     Net cash provided by financing activities                           1,062                  4
                                                                      --------           --------
     Net increase (decrease) in cash and cash equivalents               (7,541)             1,459

Cash and cash equivalents at beginning of period                        24,892             10,786
                                                                      --------           --------
Cash and cash equivalents at end of period                            $ 17,351           $ 12,245
                                                                      ========           ========
</TABLE>



See accompanying notes.


                                       5
<PAGE>   6



                           ENGINEERING ANIMATION, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.       Basis of Presentation

         The consolidated financial statements include the accounts of
Engineering Animation, Inc. and the Company's wholly-owned subsidiaries. All
significant intercompany accounts and transactions have been eliminated in
consolidation. The unaudited condensed consolidated financial statements
included herein reflect all adjustments, consisting only of normal recurring
accruals which in the opinion of management are necessary to fairly state the
Company's financial position, results of operations, and cash flows for the
periods presented. These financial statements should be read in conjunction with
the Company's audited financial statements as included in the Company's 1997
Form 10-K as filed with the Securities and Exchange Commission. The results of
operations for the three month period ended March 31, 1998 are not necessarily
indicative of the results that may be expected for any subsequent quarter or for
the fiscal year ending December 31, 1998. The December 31, 1997 balance sheet
was derived from audited financial statements, but does not include all
disclosures required by generally accepted accounting principles.

         The consolidated financial statements are presented giving retroactive
effect to the Company's November, 1997 acquisitions of Technology Company
Ventures, L.L.C. ("TCV") and Cimtech, Inc. ("Cimtech") which have been accounted
for under the pooling of interests method.

         Certain prior year financial information has been reclassified to
conform to the 1998 financial statement presentation.


2.       Public Offerings

         In June 1997, the Company completed a follow-on offering of 1,000,000
shares of its common stock. The Company received approximately $26.6 million of
cash, net of underwriting discounts and other offering costs. In March 1998,
certain stockholders of the Company sold 966,000 shares of common stock to or
through agents or dealers. The Company did not receive any of the proceeds from
the sale of the common stock.


3.    Stock Split

         The Board of Directors approved a three-for-two stock split effected in
the form of a dividend, paid to the shareholders of record as of February 28,
1998. Accordingly, all share, per share, weighted average share and stock option
information has been restated to reflect the split.


                                       6


<PAGE>   7

4.      Earnings Per Share

         In 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings per Share", which the Company adopted on December 31, 1997.
Statement 128 replaces the calculation of primary and fully diluted earnings per
share with basic and diluted earnings per share. Unlike primary earnings per
share, basic earnings per share excludes any dilutive effects of options,
warrants and convertible securities. Diluted earnings per share is very similar
to the previously reported fully diluted earnings per share. All earnings per
share amounts for all periods have been presented, and where appropriate,
restated to conform to the Statement 128 requirements.





                                       7
<PAGE>   8




                           ENGINEERING ANIMATION, INC.


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

RESULTS OF OPERATIONS

NET REVENUES

The Company's total revenues are derived from sales of software products and
interactive products. Revenues from sales of software products are recognized
upon delivery of the software product to the customer and satisfaction of
significant related obligations, if any. Revenues from customer support are
included in software product revenues and represent less than 5% of total
revenues. These revenues are deferred and recognized ratably over the period the
customer support services are provided. The Company recognizes revenues from
software development contracts and interactive products based upon labor and
other costs incurred and progress to completion on contracts.

The Company's total revenues increased 63% to $15.8 million for the three months
ended March 31, 1998 from $9.7 million for the three months ended March 31,
1997. Software products revenue increased 102% to $10.2 million for the three
months ended March 31, 1998 from $5.1 million for the three months ended March
31, 1997, as a result of increased product sales. Interactive product revenues
increased 20% to $5.6 million for the three months ended March 31, 1998 from
$4.6 million for the three months ended March 31, 1997, primarily due to
additional projects for interactive products.

COST OF REVENUES

The Company's cost of revenues includes cost of production, packaging and
distribution costs, royalties and amortization of capitalized software costs.
The Company's cost of revenues increased 66% to $4.3 million for the three
months ended March 31, 1998 from $2.6 million for the three months ended March
31, 1997, primarily due to expanded software product sales, software product
development contracts, and development costs for interactive products. The
Company's cost of revenues as a percentage of revenues remained constant at 27%
for the three months ended March 31, 1998 and 1997.

OPERATING EXPENSES

Sales and marketing. Sales and marketing expenses include personnel costs
related to sales, marketing and customer service activities, as well as
advertising, promotional materials, mail campaigns, trade shows and other costs.
Sales and marketing expenses increased 40% to $4.5 million for the three months
ended March 31, 1998 from $3.2 million for the three months ended March 31,
1997, primarily due to costs associated with expansion of the sales force and
increased marketing costs. Sales and marketing expenses decreased to 28% of
total revenues for the three months ended March 31, 1998 from 33% for the three
months ended March 31, 1997. The

                                       8
<PAGE>   9

decrease in sales and marketing expenses as a percentage of revenues was
primarily the result of spreading expenses over higher revenues.

General and administrative. General and administrative expenses consist
primarily of salaries and facility costs for administrative, executive and
accounting personnel, as well as certain consulting expenses, insurance costs,
professional fees and other costs. General and administrative expenses increased
46% to $1.7 million for the three months ended March 31, 1998 from $1.1 million
for the three months ended March 31, 1997, primarily a result of increased
administrative staff and related costs. General and administrative expenses
decreased to 11% of total revenues for the three months ended March 31, 1998
from 12% for the three months ended March 31, 1997. The decrease of general and
administrative expenses as a percentage of revenues was primarily a result of
spreading expenses over higher revenues.

Research and development. The Company's research and development focuses on
product development and consists primarily of salaries and benefits, related
facility costs, equipment costs and outside consulting fees. The Company's
research and development expenses increased 68% to $2.3 million for the three
months ended March 31, 1998 from $1.4 million for the three months ended March
31, 1997. Research and development expenses increased to 15% of total revenues
for the three months ended March 31, 1998 from 14% for the three months ended
March 31, 1997. The increase in research and development expenses was primarily
due to additional personnel and related costs.

Purchased technology. In the first quarter of 1998, EAI formed strategic
partnerships with General Electric Corporate Research and Development and
Hewlett-Packard Company to license technology to incorporate into EAI's
VisProducts. Both agreements are accounted for as non-recurring charges to
purchased technology expense in the first quarter of 1998 in the aggregate
amount of $4.2 million.

LIQUIDITY AND CAPITAL RESOURCES

The Company historically has satisfied its cash requirements through borrowings,
customer advances, capital lease financing and net proceeds of approximately
$29.0 million from the Company's initial public offering of Common Stock in
February 1996 and approximately $26.6 million from the Company's follow-on
offering of Common Stock in June 1997. As of March 31, 1998, the Company had
approximately $38.2 million in cash, cash equivalents and short-term
investments.

Net cash used by operating activities was $916,000 for the three months ended
March 31, 1998. Net cash provided by operating activities was $376,000 for the
three months ended March 31, 1997.

The Company believes its current cash and short-term investment balances will be
sufficient to meet anticipated cash needs for working capital and capital
expenditures for at least the next twelve months. There can be no assurance that
additional capital beyond the amounts currently forecasted by the Company will
not be required nor that any such required additional capital will be available
on reasonable terms, if at all, at such time as required by the Company.


                                       9
<PAGE>   10

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

The Company or its representatives may, from time to time, make or may have made
certain forward-looking statements, orally or in writing, including, without
limitations, any such statements made or to be made in Management's Discussions
and Analysis of Financial Condition and Results of Operations contained in its
various SEC filings. The Company wishes to ensure that such statements are
accompanied by meaningful cautionary statements, so as to ensure to the fullest
extent possible the protections of the safe harbor established in the Private
Securities Litigation Reform Act of 1995. Accordingly, such statements are
qualified in their entirety by reference to and are accompanied by the following
discussion of certain important factors that could cause actual results to
differ materially from those projected in such forward-looking statements.

The Company cautions the reader that this list of factors may not be exhaustive.
The Company operates in a continually changing business environment, and new
risk factors emerge from time to time. Management cannot predict such risk
factors, nor can it assess the impact, if any, of such risk factors on the
Company's business or the extent to which any factors, or combination of
factors, may cause actual results to differ materially from those projected in
any forward-looking statements. Accordingly, forward-looking statements should
not be relied upon as a prediction of actual results.

VARIABILITY OF OPERATING RESULTS

The Company has experienced and expects to continue to experience fluctuations
in its quarterly results. The Company's revenues are affected by a number of
factors, including the timing of the introduction of new software products and
interactive products by the Company and its competitors, seasonality of certain
customer purchases, product mix, general economic conditions and the Company's
ability to obtain agreements from publishers and distributors to market the
Company's products. The Company's operating results also will vary significantly
depending on changes in pricing, changes in customer budgets and changes in the
volume and timing of orders received, which are difficult to forecast. As a
result of the foregoing and other factors, the Company may experience material
fluctuations in future revenues and operating results on a quarterly or annual
basis. Therefore, the Company believes that period to period comparisons of its
revenues and operating results are not necessarily meaningful and should not be
relied upon as indicators of future performance.

YEAR 2000 COMPUTER CONVERSION

The Company has developed and implemented a plan to upgrade its information
technology in order to prepare for the year 2000 and has completed conversion of
all critical data processing systems. All of the Company's systems and
applications are 2000 compliant. The Company has also initiated communications
with its significant vendors to determine the extent to which the Company's
systems may be vulnerable to third parties' failure to remediate their own 2000
issues. Management currently does not anticipate such a failure to be an issue.
However,


                                       10
<PAGE>   11

operating results could be impacted if the systems of other companies with whom
the Company transacts business are not compliant in a timely manner.

For a more complete discussion of other risk factors affecting the Company, see
the Company's 1997 Form 10-K.


                                       11
<PAGE>   12



PART II. OTHER INFORMATION

Item 2.           Changes in Securities

At the Annual Meeting of Stockholders of the Company on May 1, 1998, the
stockholders approved an amendment to the Company's Certificate of Incorporation
to increase the number of shares of Common Stock authorized for issuance from
20,000,000 shares to 60,000,000. This amendment is filed herewith as Exhibit
3.3.

Item 4.           Submission of Matters to a Vote of Security Holders

At the Annual Meeting of Stockholders of the Company held on May 1, 1998, the
stockholders of the Company (1) elected Martin J. Vanderploeg and Laurence J.
Kirshbaum as directors of the Company to hold office until the 2001 annual
meeting of stockholders (subject to the election and qualification of their
successors and to their earlier death, resignation or removal); (2) approved the
amendment of the Company's Certificate of Incorporation, increasing the number
of shares authorized for issuance by 40,000,000 to 60,000,000; and (3) ratified
the appointment of Ernst & Young LLP as auditors. The votes were as follows:




<TABLE>
<CAPTION>
                                                       VOTES FOR         VOTES AGAINST           ABSTAIN
                                                       ---------         -------------           -------

<S>                                                    <C>                 <C>                    <C>   
(1)   Election of director:
        Martin J. Vanderploeg                          7,404,093                --                84,974
        Laurence J. Kirshbaum                          7,403,707                --                85,360

(2)   Approval of Amendment of the
        Company's  Certificate of
        Incorporation                                  6,155,394           1,322,084              11,589

(3)  Ratification of the appointment
        of Ernst & Young LLP as auditors               7,469,507              12,827               6,733
</TABLE>


ITEM 6.           Exhibits and Reports on Form 8-K

                  (a)      Exhibits - See Index to Exhibits

                  (b)      Reports on Form 8-K.

                           No Reports on Form 8-K were filed during the quarter
                           ended March 31, 1998.





                                       12
<PAGE>   13




                                   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.

Date:                                           ENGINEERING ANIMATION, INC.
     -----------------------------              (Registrant)

                                                By:    /s/  Jerome M. Behar
                                                   -----------------------------
                                                   Jerome M. Behar
                                                   Vice President of Finance and
                                                   Chief Financial Officer
                                                   (Duly Authorized Officer and
                                                   Principal Financial Officer)





                                       13
<PAGE>   14




                                INDEX TO EXHIBITS



Exhibit       Description
-------       -----------

 2.4          Amended and Restated Agreement and Plan of Merger between the
              Company, EAICA, Inc., and Sense8 Corporation, dated as of April
              30, 1998 (incorporated herein by reference from the Company's
              Registration Statement on Form S-4, SEC File No. 333-52003)

 3.3          Certificate of Amendment to Certificate of Incorporation

27.           Financial Data Schedule


                                       14