<PAGE>
 
                                  FORM 10-Q/A

                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549


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

                 For the quarterly period ended January 6, 1995

                                       OR

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


                         Commission file number 0-16172


                             COMPUTONE CORPORATION
             (Exact name of registrant as specified in its charter)


            Delaware                                     23-2472952
---------------------------------             ----------------------------------
 (State or other jurisdiction of               (I.R.S. Employer 
  incorporation or  organization)              Identification Number)
 
1100 Northmeadow Parkway, Suite 150, Roswell, GA               30076      
------------------------------------------------               -----    
    (Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code: (404)475-2725

                                      N/A
                                      ---
(Former name, former address and former fiscal year, if changed since last
report)

        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   .
                                              ---    --- 

     Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes X  No   .
   ---   --- 

        As of February 20, 1995, there were 6,240,880 shares of common stock
outstanding.

<PAGE>
 
                                     INDEX



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

Item 1.   Financial Statements:
 
          Interim Condensed Balance Sheets as of 
          January 6, 1995 and April 1, 1994                                    3
 
          Interim Condensed Statements of Income for 
          the three months ended January 6, 1995 and 
          January 7, 1994                                                      4
 
          Interim Condensed Statements of Income for
          the nine months ended January 6, 1995 and
          January 7, 1994                                                      5
 
          Interim Condensed Statements of Cash Flows
          for the nine months ended January 6, 1995
          and January 7, 1994                                                  6
 
          Notes to Interim Condensed Financial
          Statements                                                           7
 
Item 2.   Management's Discussion and Analysis of Results
          of Operations and Financial Condition                                9
 
 
                    PART II.             OTHER INFORMATION
                    --------------------------------------
 
Item 1.   Legal Proceedings                                                   12
 
Item 2.   Changes in Securities                                               12
 
Item 3.   Defaults Upon Senior Securities                                     12
 
Item 4.   Submission of Matters to a Vote of Security Holders                 12
 
Item 5.   Other Information                                                   12
 
Item 6.   Exhibits and Reports on Form 8-K                                    12
 
Signature                                                                     13

                                       2
<PAGE>
 
                         PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

                             Computone Corporation
                       Interim Condensed Balance Sheets
                  (in thousands except par value and shares)

<TABLE>     
<CAPTION>
                                                            January 6, 1995         April 1, 1994  
                                                              (unaudited)             (audited)    
                                                           -----------------      -----------------
<S>                                                      <C>                    <C>                
ASSETS                                                                                             
Current assets:                                                                                    
  Cash and cash equivalents                              $              417     $              215 
  Receivables, net                                                    2,914                  2,905 
  Inventories, net                                                    1,731                  2,621 
  Prepaid expenses and other                                            188                     48 
                                                           -----------------      -----------------
Total current assets                                                  5,250                  5,789 
                                                                                                   
Property, equipment and improvements, net                             1,034                  1,168 
                                                                                                   
Intangible assets, net                                                  887                  1,023 
                                                                                                   
Other                                                                   164                    167 
                                                           -----------------      -----------------
                                                                                                   
Total assets                                             $            7,335     $            8,147 
                                                           =================      =================
                                                                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY                                                               
Current liabilities:                                                                               
  Accounts payable, trade                                $            1,145     $            1,201 
  Accrued liabilities:                                                                             
    Payroll                                                             106                    101 
    Costs related to discontinued operations                            356                    473 
    Other                                                               657                  1,198 
  Current maturities of long term obligations                           434                    791 
                                                           -----------------      -----------------
Total current liabilities                                             2,698                  3,764 
                                                                                                   
Notes payable to affiliates                                             270                    270 
                                                                                                   
Other long term obligations                                              17                    336 
                                                                                                   
Commitments and contingencies                                           ---                    --- 
                                                                                                   
Stockholders' Equity                                                                               
 Convertible redeemable preferred stock, $.01                                                      
   par value; 10,000,000 shares authorized;                                
   200,000 share issued                                                   2                      2                               
 Common stock, $.01 par value; 50,000,000                                                          
   shares authorized; 6,240,078 and 6,201,883                                                      
   shares outstanding at January 6, 1995 and                                                       
   April 1, 1994, respectively                                           62                     62 
 Additional paid in capital                                          41,580                 41,649 
 Accumulated deficit                                                (37,294)               (37,936)
                                                           -----------------      -----------------
Total stockholders' equity                                            4,350                  3,777 
                                                           -----------------      -----------------
                                                                                                   
Total liabilities and stockholders' equity               $            7,335     $            8,147 
                                                           =================      ================= 
</TABLE>      

       See accompanying notes to the consolidated financial statements.

                                       3
<PAGE>
 
ITEM 1. Financial Statements (continued)

                             Computone Corporation
                    Interim Condensed Statements of Income
                    (in thousands except per share amounts)
                                  (unaudited)
<TABLE>    
<CAPTION> 
                                                           Three Months Ended                                               
                                                   January 6, 1995     January 7, 1994                                    
                                                 -----------------   -----------------                                    
<S>                                             <C>                 <C> 
Revenues:                                                                                                                 
  Product sales                                 $            3,408  $            3,076                                    
                                                                                                                          
Expenses:                                                                                                                 
  Cost of products sold                                      2,134               1,813                                    
  Selling, general and administrative                        1,025                 894                                    
  Product development                                          236                 301                                    
                                                 -----------------   -----------------                                    
                                                             3,395               3,008                                    
                                                 -----------------   -----------------                                    
                                                                                                                          
Operating income from continuing operations                     13                  68                                    
                                                                                                                          
Non-Operating income (expense):                                                                                           
  Other income (expense)                                        30                   0                                    
  Interest expense                                             (22)                 (6)                                   
                                                 -----------------   -----------------                                    
                                                                                                                          
Income from continuing operations before taxes                  21                  62                                    
                                                                                                                          
Income tax expense (benefit):                                                                                             
  Current                                                       --                  --
  Deferred                                                      --                  --
                                                 -----------------   -----------------                                    
                                                                --                  --
                                                 -----------------   -----------------                                    
Income from continuing operations                               21                  62                                    
                                                                                                                          
Discontinued operations:                                                                                                  
  Income on disposal                                            99                  --
                                                 -----------------   -----------------                                    
                                                                                                                          
Income before extraordinary item                               120                  62                                    
                                                                                                                          
Extraordinary item:                                                                                                       
  Debt foregiveness                                             40                  --    
                                                 -----------------   -----------------                                    
                                                                                                                          
Net income                                      $              160  $               62                                    
                                                 =================   =================                                    
                                                                                                                          
Net income per common share and common                                                                                    
share equivalents:                                                                                                        
  Income from continuing operations                             --                0.01                                   
  Income from discontinued operations                         0.02                  --   
  Income from extraordinary item                                --                  --
                                                 -----------------   -----------------                                    
Net income per common share                     $             0.02  $             0.01                                   
                                                 =================   =================                                    
                                                                                                                          
Weighted average common shares and common 
 share equivalents outstanding                               6,240               5,633                                   
                                                 =================   =================                                     
</TABLE>      

       See accompanying notes to the consolidated financial statements.

                                       4
<PAGE>
 
ITEM 1. Financial Statements (continued)

                             Computone Corporation
                    Interim Condensed Statements of Income
                    (in thousands except per share amounts)
                                  (unaudited)
<TABLE>      
<CAPTION> 
                                                           Nine Months Ended
                                                   January 6, 1995      January 7, 1994                                         
                                                 -----------------    -----------------                                         
<S>                                              <C>                  <C> 
Revenues:                                                             
  Product sales                                  $          10,798    $          10,135                                         
  Royalties                                                     --                  882                                         
                                                 -----------------    -----------------                                         
Net revenues                                                10,798               11,017                                         
                                                                                                                                
Expenses:                                                                                                                       
  Cost of products sold                                      6,677                5,989                                         
  Selling, general and administrative                        3,097                2,780                                         
  Product development                                          811                  955                                         
                                                 -----------------    -----------------                                         
                                                            10,585                9,724                                         
                                                 -----------------    -----------------                                         
                                                                                                                                
Operating income from continuing operations                    213                1,293                                         
                                                                                                                                
Non-Operating income (expense):                                                                                                 
  Other income (expense)                                        31                   34                                         
  Interest expense                                             (28)                (118)                                        
                                                 -----------------    -----------------                                         
                                                                                                                                
Income from continuing operations before taxes                 216                1,209                                         
                                                                                                                                
Income tax expense (benefit):                                                                                                   
  Current                                                       --                  436                                         
  Deferred                                                      --                 (436)                                        
                                                 -----------------    -----------------                                         
                                                                --                   --                                         
                                                 -----------------    -----------------                                         
Income from continuing operations                              216                1,209                                         
                                                                                                                                
Discontinued operations:                                                                                                        
  Income on disposal                                           184                1,921                                         
                                                 -----------------    -----------------                                         
Income from discontinued operations                            184                1,921                                         
                                                 -----------------    -----------------                                         
                                                                                                                                
Income before extraordinary item                               400                3,130                                         
                                                                                                                                
Extraordinary item:                                                                                                             
  Debt foregiveness                                            242                   --                                         
                                                 -----------------    -----------------                                         
                                                                                                                                
Net income                                      $              642   $            3,130                                         
                                                 =================    =================                                         
                                                                                                                                
Net income per common share and common                                                                                          
share equivalents:                                                                                                              
  Income from continuing operations                           0.03                 0.23                                         
  Income from discontinued operations                         0.03                 0.36                                         
  Income from extraordinary item                              0.03                   --                                         
                                                 -----------------    -----------------                                         
Net income per common share                     $             0.09   $             0.59
                                                 =================    =================                                         
Weighted average common shares and                                                                                              
   common share equivalents outstanding                      6,205                5,273                                         
                                                 =================    =================                                          
</TABLE>      

       See accompanying notes to the consolidated financial statements.

                                       5
<PAGE>
 
ITEM 1. Financial Statements (continued)

                             Computone Corporation
                  Interim Condensed Statements of Cash Flows
                                (in thousands)
<TABLE>     
<CAPTION>
                                                                       For the Nine Months Ended      
                                                                   January 6, 1995    January 7, 1994 
                                                                     (unaudited)        (unaudited)   
                                                                  -----------------  -----------------
<S>                                                              <C>                <C>               
Cash flows from operating activities:                                                                 
  Income from continuing operations                              $             458  $            1,209 
  Adjustments to reconcile income from continuing operations
   to net cash provided by (used in) continuing operations:
     Depreciation and amortization                                             688                496
     Provision for doubtful accounts                                           (34)                29
     Forgiveness of debt                                                      (242)                --
     Changes in assets and liabilities:
      Receivables                                                               (9)               693                       
      Inventories                                                              890               (344)                      
      Prepaid expenses and other                                              (140)               (23)                      
      Deferred taxes                                                            --                 -- 
      Accounts payable and accrued liabilities                                (949)              (261)                       
                                                                  -----------------  -----------------
     Net cash provided by continuing operations                                662              1,799
                                                                  -----------------  -----------------
                                                                                                     
  Income from discontinued operations                                          184              1,921 
  Adjustments to reconcile income from discontinued operations
   to net cash used in discontinued operations:
     Income on disposal                                                       (184)                --  
     Change in net assets of discontinued operations                          (133)              (864)
     Provision for loss on disposal                                             --             (1,921) 
                                                                  -----------------  -----------------
     Net cash used in continuing operations                                   (133)              (864)
                                                                  -----------------  -----------------
                                                                                                      
Net cash provided by operating activities                                      529                935 
                                                                  -----------------  -----------------
                                                                                                      
Cash flows from investing activities:                                                                 
 (Increase) decrease in other assets                                             3               (144)
 Capitalization of software costs                                             (224)              (363)
 Purchase and capitalization of property and equipment                         (68)              (327)
                                                                  -----------------  ----------------- 

Net cash used in investing activities                                         (289)              (834)
                                                                  -----------------  -----------------
                                                                                                      
Cash flows from financing activities:                                                                 
 Borrowings under term debt agreements                                         300                 --  
 Repayment of debt                                                            (350)              (320)
 Exercise of common stock options                                               12                116 
 Issuance of preferred stock                                                    --                350 
                                                                  -----------------  -----------------
                                                                                                      
Net cash (used in) provided by financing activities                            (38)               146 
                                                                  -----------------  -----------------
                                                                                                      
Net increase in cash and cash equivalents                                      202                247 
Cash and cash equivalents at beginning of period                               215                104 
                                                                  -----------------  -----------------
Cash and cash equivalents at end of period                       $             417  $             351
                                                                  =================  =================
Supplemental disclosures:                                                                             
 Interest paid                                                   $               28 $                8
                                                                  =================  ================= 
</TABLE>      

       See accompanying notes to the consolidated financial statements.

                                       6
<PAGE>
 
                             COMPUTONE CORPORATION
                NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS
                                  (unaudited)


1.  Basis of Presentation
     --------------------

        The financial statements included in this Form 10-Q have been prepared
by the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures, normally included in financial statements prepared in accordance
with generally accepted accounting principles, have been condensed, or omitted,
pursuant to such rules and regulations.  These financial statements should be
read in conjunction with the financial statements and related notes included in
the Company's Fiscal 1994 Form 10-K.

        The financial statements presented herein, as of January 6, 1995 and for
the three and nine months then ended, reflect in the opinion of management, all
adjustments necessary for a fair presentation of financial position and the
results of operations for the periods presented.  The results of operations for
any interim period are not necessarily indicative of the results for the full
year.


2. Inventories
   -----------

        Inventories, net of a reserve for obsolete, excess and non-salable
items, consisted of the following at January 6, 1995 and   April 1, 1994 (in
thousands):

<TABLE>     
<CAPTION>
 
                            Jan 6,1995  Apr 1,1994
                            ----------  ----------
<S>                         <C>         <C>
 
        Finished goods          $  403      $  799
        Work in progress           391         542
        Raw materials              937       1,280
                                ------      ------
                                $1,731      $2,621
                                ======      ======
</TABLE>      
 Income per share
 ----------------

   Income per common share is computed by dividing net income applicable to
common stock by the weighted average number of shares of common stock and common
share equivalents outstanding during each period.

                                       7
<PAGE>
 
                             COMPUTONE CORPORATION
                NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS
                                  (unaudited)


4. Income taxes
   ------------

     On April 3, 1993, the Company adopted the Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes".  Such adoption had no
cumulative effect on the Company's consolidated financial statements.  Prior
years' financial statements have not been restated.

     The Company has available net operating and capital loss carryforwards,
including preacquisition operating loss carryforwards which relate to a
predecessor company, which expire during the period 2003-2008.  The Company's
possible use of the loss carryforwards will be limited as a result of several
different changes in ownership which have occurred since the carryforwards
started to accumulate.  The use of the net operating loss carryforwards are
limited due to statutory provisions which apply after certain changes in control
occur.

     For financial reporting purposes, a valuation allowance has been
established to reflect a net deferred tax balance of $0 as of the date of
adoption of FAS 109 as well as at January 6, 1995.

     The Company estimates that no current provision for income taxes is
required for the nine months ended January 6, 1995.

5. Debt
   ----

     On August 12, 1994, the Company secured financing from a bank in the form
of a $300,000 note payable and a $500,000 line of credit.  The note bears
interest at a rate of floating prime plus 2% and is due in monthly installments
of $16,666.67 plus accrued interest.  The line of credit also bears interest at
a rate of floating prime plus 2% on any proceeds and .25% on any unused portion
of the line.

6. Extraordinary item
   ------------------

     During the three months ended January 6, 1995, the Company identified
opportunities to reduce its working capital requirements by negotiating lump-sum
payment settlements with various vendors with which the Company had previously
restructured outstanding debt.  As a result of these negotiations, the Company
was able to reduce the amounts payable to these vendors by approximately $40,000
which was accounted for as extraordinary income.

                                       8
<PAGE>
 
ITEM 2. Management's Discussion and Analysis of Results of
           Operations and Financial Condition for the Three and
           Nine Months Ended January 6, 1995.


INTRODUCTION
------------

     The comparative information contained herein includes results of
operations for the Company's continuing businesses.  Certain previous components
of the Company are presented as discontinued operations in the accompanying
Consolidated Financial Statements.


Liquidity
---------

     Cash provided by income from continuing operations amounted to $662,000 for
the nine months ended January 6, 1995 compared to cash provided by continuing
operations of $1,799,000 for the comparable nine months ended January 7, 1994.
The reduction in cash provided by continuing operations as compared to the prior
year fiscal period primarily reflects the termination of a royalty agreement
during the nine months ended January 7, 1994 and a reduction in accounts payable
and accrued liabilities.


     Cash used in financing activities amounted to $38,000 for the nine months
ended January 6, 1995 compared with $146,000 provided by financing activities
for the comparable nine months of the prior fiscal year.  This change from the
same period of the prior fiscal year results from the issuance of preferred
stock during the nine months ended January 7, 1994.


     Working capital amounted to $2,552,000 at January 6, 1995, an increase of
$527,000, since April 1, 1994.  The ratio of current assets to current
liabilities at January 6, 1995 was 1.95 to 1.00 compared to 1.54 to 1.00 at
April 1, 1994.  The increase in working capital is primarily attributable to the
payment of a portion of the Company's accrued liabilities.


     On August 12, 1994, the Company secured financing from a bank in the form
of a $300,000 note payable and a $500,000 line of credit. The note bears
interest at a rate of floating prime plus 2% and is due in monthly installments
of $16,666.67 plus accrued interest. The line of credit also bears interest at a
rate of floating prime plus 2% on any proceeds and .25% on any unused portion of
the line.

                                       9
<PAGE>
 
ITEM 2.  Management's Discussion and Analysis of Results of           
         Operations and Financial Condition for the Three and
         Nine Months Ended January 6, 1995 (continued).


Results of operations
---------------------

     Product sales revenue from continuing operations for the quarter ended
January 6, 1995 totaled approximately $3,408,000 compared to $3,076,000 for the
comparable quarter of the prior fiscal year, an 11% increase.  Product sales
revenues for the nine months ended January 6, 1995 were $10,798,000 versus
$10,135,000 during the same period of the prior fiscal year, a 7% increase.  Net
revenues for the nine months ended January 7, 1994 included $882,000 related to
royalties received.  The increases in product sales revenues can be attributed
to the Company's continuing efforts to open new distribution channels throughout
the world.

    
     Cost of products sold for the quarter amounted to $2,134,000 or 63% of
product sales revenues versus $1,813,000 or 59% for the comparable quarter of
the prior year. For the nine months ended January 6, 1995, cost of products sold
amounted to $6,677,000 or 62% of product sales revenue, versus $5,989,000 or 59%
for the comparable nine months of the prior fiscal year. The Company continues
to focus on reducing the cost of products sold in order to increase
profitability of continuing operations.  However, some initial start-up costs
associated with the outsourcing of production has caused a temporary increase in
cost of products sold.      


     Selling, general and administrative expenses amounted to   $1,025,000
and $3,097,000 or 30%  and 29% of product sales revenue for the three and nine
ended January 6, 1995 versus $894,000 and $2,780,000 or 29% and 27% of product
sales revenue for the comparable three and nine months of the prior fiscal year,
respectively.  The increases in expenses when compared to the same periods of
the prior fiscal year can be attributed to advertising and marketing
expenditures.


     Product development expenses amounted to $236,000 and $811,000 or 7% and
8% of product sales revenue for the three and nine month periods ended January
6, 1995 This compares to $301,000 and $955,000 or 10% and 9% of product sales
revenue for the comparable three and nine periods of the prior fiscal year.
This reduction can be attributed to the capitalization of product development
expenses related to new products.

                                       10
<PAGE>
 
ITEM 2.  Management's Discussion and Analysis of Results of           
         Operations and Financial Condition for the Three and
         Nine Months Ended January 6, 1995 (continued).

    
     Income from continuing operations for the quarter ended January 6, 1995
amounted to $21,000 compared to $62,000 for the comparable quarter of the prior
fiscal year, a 66% decrease. Income from continuing operations for the nine
months ended January 6, 1995 was $216,000 versus $327,000 for the same nine
month period of the prior fiscal year excluding  the non-product  royalty income
received during the prior fiscal year.  This results in a  34% decrease from the
prior fiscal year. These decreases in income can be attributed to the Company's
temporary increase in costs of products sold associated with some start-up costs
pertaining to the outsourcing of production.      


     Income from discontinued operations totaled $184,000 for the nine months
ended January 6, 1995 compared to $1,921,000 for the nine months ended January
7, 1994.  The $184,000 related to the sale of certain assets.  The $1,921,000
related to the fact that the loss on disposal of Princeton and Denison was less
than originally provided for and, therefore, the estimated disposal costs were
reduced.


     During the three months ended January 6, 1995, the Company identified
opportunities to reduce its working capital requirements by negotiating lump-sum
payment settlements with various vendors with which the Company had previously
restructured outstanding debt.  As a result of these negotiations, the Company
was able to reduce the amounts payable to these vendors by approximately
$40,000 which was accounted for as extraordinary income.

                                       11
<PAGE>
 
                          PART II - OTHER INFORMATION


Item 1.   Legal Proceedings

          None, other than those matters described in Item 3 to the Company's
          Annual Report on Form 10-K for the year ended April 1, 1994.

Item 2.   Changes in Securities

          Not Applicable

Item 3.   Defaults Upon Senior Securities

          Not Applicable.

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

          Not Applicable.

Item 5.   Other Information

          Not Applicable.

Item 6.   Exhibits and Reports on Form 8-K

     a)   No exhibits are furnished with this report.

     b)   The Company filed a report dated December 15, 1994 on Form 8-K
          reporting under Item 4.  The report disclosed details of the Company's
          terminated relationship with its independent accountant, Ernst & Young
          LLP.

          The Company is continuing to interview independent accounting firms
          with the intention of making a decision on a firm in the near future.

                                       12
<PAGE>
 
                                   SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) 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.



                                      COMPUTONE CORPORATION


Date:  February 16, 1996               By: /s/ Thomas J. Anderson
                                           ----------------------
                                       Thomas J. Anderson                 
                                       President & Chief Operating Officer
                                       (duly authorized officer and       
                                       Principal Executive Officer)        

                                       By: /s/ Gregory A. Alba
                                           -------------------
                                       Gregory A. Alba
                                       Controller
                                       Principal Accounting Officer

                                       13