<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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

                                    FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 1996

/ /     TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
        THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from        to 
                               ------    ------


                           Commission File No. 0-20698

                         BROOKTROUT TECHNOLOGY, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

              Massachusetts                        04-2814792
              -------------                        ----------
             (State or other                      (I.R.S. employer
             jurisdiction of                       identification
             incorporation or                      number)
             organization)                     
                                 
      410 First Avenue
   Needham, Massachusetts                                   02194  
   ----------------------                                 ----------
(Address of principal executive offices)                  (Zip code)

                          Registrant's telephone number
                       including area code: (617) 449-4100

     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 
   ---   ---

     As of November 1, 1996, 10,504,891 shares of Common Stock, $.01 par value
per share, were outstanding.

                               Page 1 of 17 pages
                        Exhibit Index Appears on Page 15


<PAGE>   2

                           BROOKTROUT TECHNOLOGY, INC.

                                    FORM 10-Q

                    FOR THE QUARTER ENDED SEPTEMBER 30, 1996

                                TABLE OF CONTENTS

                                                                           Page
                                                                           ----
PART I  FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

        Condensed Consolidated Balance Sheets as of
        September 30, 1996 and December 31, 1995                             3

        Condensed Consolidated Statements of Income for the Three Months
        Ended September 30, 1996 and September 30, 1995, and the Nine
        Months ended September 30, 1996 and September 30, 1995 4

        Condensed Consolidated Statements of Cash Flows for the Nine
             Months Ended September 30, 1996 and September 30, 1995          5

        Notes to Condensed Consolidated Financial Statements                 6

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

        Three Months Ended September 30, 1996 and 1995                       9

        Nine Months Ended September 30, 1996 and 1995                       10

        Liquidity and Capital Resources                                     12

PART II OTHER INFORMATION

Item 1. Legal Proceedings                                                   13

Item 6. Exhibits                                                            13

        Signatures                                                          14

        Exhibit Index                                                       15


<PAGE>   3

<TABLE>


                           BROOKTROUT TECHNOLOGY, INC.
                      Condensed Consolidated Balance Sheets
                        (In thousands, except share data)

<CAPTION>
                                                                   September 30,  December 31,
                                                                       1996          1995
                                                                       ----          ----
<S>                                                                   <C>           <C>    
ASSETS

  Current assets:
    Cash and equivalents .......................................      $28,060       $14,230
    Marketable securities ......................................        7,261         7,924
    Accounts receivable (less allowance for doubtful
      accounts of $497 in 1996 and $449 in 1995) ...............        6,877         6,097
    Inventory ..................................................        5,272         3,878
    Deferred tax assets ........................................          713           454
    Prepaid expenses ...........................................          440           366
                                                                      -------       -------
      TOTAL CURRENT ASSETS .....................................       48,623        32,949
                                                                      -------       -------
  Equipment and furniture:
    Computer equipment .........................................        2,436         1,346
    Furniture and office equipment .............................        2,101           539
                                                                      -------       -------
      Total ....................................................        4,537         1,885
      Less accumulated depreciation and amortization ...........       (1,239)         (852)
                                                                      -------       -------
      EQUIPMENT AND FURNITURE - NET ............................        3,298         1,033

    Investment and other assets ................................          561           599
                                                                      -------       -------
        TOTAL ..................................................      $52,482       $34,581
                                                                      =======       =======
LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Line of credit .............................................                    $    50
    Current portion of long-term debt ..........................                          6
    Accounts payable and other accruals ........................      $ 7,903         5,110
    Customer deposits ..........................................          395           376
    Accrued warranty costs .....................................          431           336
    Accrued compensation and commission ........................        1,654         1,185
    Accrued income taxes .......................................          331         1,063
                                                                      -------       -------
      TOTAL CURRENT LIABILITIES ................................       10,714         8,126
                                                                      -------       -------

  Deferred rent ................................................          200            10

  Stockholders' equity:
    Common stock, $.01 par value; authorized, 25,000,000
      shares; issued and outstanding 10,504,497 shares in
      1996 and 9,683,116 in 1995 ...............................          105            97
    Additional paid-in capital .................................       27,984        16,884
    Unrealized gains (losses) on marketable securities .........           (2)           49
    Retained earnings ..........................................       13,481         9,415
                                                                      -------       -------

    STOCKHOLDERS' EQUITY .......................................       41,568        26,445
                                                                      -------       -------
    TOTAL ......................................................      $52,482       $34,581
                                                                      =======       =======
    
</TABLE>

See notes to condensed consolidated financial statements.


<PAGE>   4
<TABLE>
                           BROOKTROUT TECHNOLOGY, INC.
                   Condensed Consolidated Statements of Income
                      (In thousands, except per share data)

<CAPTION>
                                                                       Three Months Ended         Nine Months Ended
                                                                           September 30,             September 30,
                                                                       ------------------         -----------------
                                                                        1996         1995        1995          1996
                                                                        ----         ----        ----          ----
<S>                                                                   <C>          <C>          <C>          <C>    
REVENUE ........................................................      $15,874      $ 9,751      $40,619      $25,881

Cost and expenses:
  Cost of product sold .........................................        7,148        4,177       17,953       11,929
  Research and development .....................................        1,799        1,181        5,047        3,331
  Selling, general and administrative ..........................        3,558        2,219        9,796        6,166
  Acquisition related charges ..................................            0            0        1,236            0
                                                                      -------      -------      -------      -------

      Total cost and expenses ..................................       12,505        7,577       34,032       21,426
                                                                      -------      -------      -------      -------

INCOME FROM OPERATIONS .........................................        3,369        2,174        6,587        4,455
                                                                                                             -------

Interest income, net ...........................................          328          275          837          695
                                                                      -------      -------      -------      -------

Income before income tax provision .............................        3,697        2,449        7,424        5,150

Income tax provision ...........................................        1,479          619        3,346        1,721
                                                                      -------      -------      -------      -------

NET INCOME .....................................................      $ 2,218      $ 1,830      $ 4,078      $ 3,429
                                                                      =======      =======      =======      =======

NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE ..............      $  0.20      $  0.19      $  0.38      $  0.34
                                                                      =======      =======      =======      =======

Weighted average number of common and
  common equivalent shares outstanding .........................       11,135       10,169       10,684       10,008
                                                                      =======      =======      =======      =======
</TABLE>


See notes to condensed consolidated financial statements.


<PAGE>   5

<TABLE>
                           BROOKTROUT TECHNOLOGY, INC.
                 Condensed Consolidated Statements of Cash Flows
                                 (In thousands)
<CAPTION>

                                                                 Nine Months Ended
                                                                    September 30,
                                                               ---------------------
                                                                 1996          1995
                                                                 ----          ----
<S>                                                            <C>           <C>    
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income ........................................      $ 4,078       $ 3,429
      Adjustments to reconcile net income to cash
        provided by operating activities:
          Depreciation and amortization .................          387           412
          Amortization of net premium (discount) on
           marketable securities ........................           27             4
          Deferred income taxes .........................         (259)          (11)
          Increase (decrease) in cash from:
             Accounts receivable ........................         (780)       (1,041)
             Inventory ..................................       (1,394)       (2,092)
             Other prepaid expenses .....................          (36)         (121)
             Accounts payable and accrued expenses ......        2,784         1,846
                                                               -------       -------
                 Cash provided by
                  operating activities ..................        4,807         2,426
                                                                            

CASH FLOWS FROM INVESTING ACTIVITIES:
      Expenditures for equipment and furniture ..........       (2,652)         (392)
      Purchases of marketable securities ................       (1,801)       (5,471)
      Maturities and sales of marketable securities .....        2,386         9,366
                                                               -------       -------

                 Cash provided by
                  investing activities ..................       (2,067)        3,503


CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from the sale of common stock ............       11,108            69
      Distributions to stockholders .....................          (12)           (2)
      Repayment of long-term debt .......................           (6)          (18)
                                                               -------       -------

                 Cash provided by
                  financing activities ..................       11,090            49
                                                               -------       -------
INCREASE IN CASH AND EQUIVALENTS ........................       13,830         5,978
CASH AND EQUIVALENTS, BEGINNING OF PERIOD ...............       14,230        10,435
                                                               -------       -------

CASH AND EQUIVALENTS, END OF PERIOD .....................      $28,060       $16,413
                                                               =======       =======
</TABLE>

See notes to condensed consolidated financial statements.
<PAGE>   6

BROOKTROUT TECHNOLOGY, INC.

Notes to Condensed Consolidated Financial Statements - Unaudited

1. Basis of presentation

     On May 29, 1996, Brooktrout Technology, Inc. (the "Company") acquired
Technically Speaking, Inc. ("TSI") in a transaction which was accounted for as a
pooling-of-interests. All financial data of the Company, including the Company's
previously issued financial statements for the periods presented in this Form
10-Q, have been restated to include the historical financial information of TSI.

     In the opinion of management, the accompanying unaudited condensed
consolidated financial statements have been prepared on the same basis as the
audited consolidated financial statements and include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of the interim periods presented.

     The accompanying unaudited condensed consolidated financial statements have
been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission regarding interim financial reporting.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles and should be read in conjunction
with the audited consolidated financial statements incorporated by reference in
or included in the Company's 1995 Annual Reports on Form 10K and 10K/A and to
the audited supplemental consolidated financial statements included in the
Company's registration statement on Form S-3 dated August 6, 1996.

     The operating results for the interim periods presented are not necessarily
indicative of the results which could be expected for the full year.

2. Net income per share

     Net income per common and per common equivalent share are computed using
the weighted average number of common and dilutive common equivalent shares
outstanding during the period. Dilutive common equivalent shares represent
shares issuable upon exercise of stock options, calculated using the treasury
stock method.


<PAGE>   7



3. Inventory

<TABLE>
     Inventory is carried at the lower of cost (first-in, first-out basis) or
market and consisted of the following:

<CAPTION>
                    September 30,   December 31,
                    -------------   ------------
                        1996             1995
                        ----             ----

<S>                   <C>             <C>       
Raw materials         $3,400,000      $2,979,000
Work in process        1,172,000         605,000
Finished goods           700,000         294,000
                         -------         -------
     Total            $5,272,000      $3,878,000
                       =========       =========
</TABLE>

4. Major Customers

     One customer accounted for approximately 38% and 32% of net revenue for the
three months ended September 30, 1996 and 1995, respectively, and 31% and 41%
for the nine months ended September 30, 1996 and 1995, respectively.

5. Marketable Securities

     Marketable securities consist mainly of U.S. government securities
purchased with remaining maturities in excess of three months.

     The amortized cost of these securities at September 30, 1996 was
$7,262,000. Net unrealized holding losses of $1,700 were comprised of unrealized
gains of $7,800 and unrealized losses of $9,500 at September 30, 1996.

6. Income Taxes

<TABLE>
     A reconciliation of the statutory federal rate to the effective rate is as
follows:

<CAPTION>
                               Quarter Ended     Nine Months Ended
                               September 30,      September 30,
                               -------------      -------------
                              1996       1995      1996    1995
                              ----       ----      ----    ----
                                                           
<S>                           <C>         <C>       <C>      <C>
Statutory tax rate            34%         34%       34%      34%
State taxes, net of                                        
     federal benefit           6           7         6        6
Permanent item                                             
TSI income not subject                                     
     to tax                              (15)                (6)
Other                          -          (1)        5       (1)
                              --          --        --       --
Effective tax rate            40%         25%       45%      33%
                              ==          ==        ==       ==
                                                         
</TABLE>

<PAGE>   8

7. International Sales

     International sales, principally exported from the United States, accounted
for approximately 16% for the three months ended September 30, 1996 and less
than 10% for the three months ended September 30, 1995. International sales were
approximately 18% and 10% for the nine months ended September 30, 1996 and 1995,
respectively.

8. Business Combinations

     On May 29, 1996, the Company acquired TSI by issuing approximately 713,000
shares of its common stock in exchange for all the outstanding stock of TSI. TSI
is the developer of Show N Tel, a leading application development tool for
enterprise computer telephony applications. The acquisition was accounted for as
a pooling-of-interests. All financial data of the Company has been restated to
include the historical financial information of TSI. No significant adjustments
were required to conform the accounting policies of the Company and TSI.

     In connection with the acquisition, the Company recorded charges related to
the merger with TSI totaling $1.2 million in the second quarter of fiscal 1996.

9. Equity Issuance

     In August 1996, the Company sold 649,632 shares of common stock generating
proceeds to the Company of approximately $11.1 million.


<PAGE>   9



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

                              RESULTS OF OPERATIONS

Three Months Ended September 30, 1996 and 1995

     Revenue during the three months ended September 30, 1996 increased by
approximately 63% to $15,874,000, up from $9,751,000 during the three months
ended September 30, 1995. This growth was primarily attributable to increased
shipments of TR Series products combined with increased shipments of OEM voice
systems. Increased sales reflect the growth of the principal market segments
served by the Company's products, especially the manufacture and sale of fax
products for use on local area networks and the manufacture and sale of fax and
OEM systems.

     Cost of product sold was $7,148,000, or 45% of revenue, during the three
months ended September 30, 1996, compared to $4,177,000, or 43% of revenue, for
the same period in 1995. Gross profit percentage was approximately 55% and 57%
for the three months ended September 30, 1996 and 1995, respectively. The
decrease in gross profit percentage is the result of a lower proportion of
software relating to Show N Tel products which has a relatively low cost of
product sold.

     Research and development expense was $1,799,000, or 11% of revenue,
compared with $1,181,000, or 12% of revenue, for the three months ended
September 30, 1996 and 1995, respectively. The dollar increase in 1996 reflects
the Company's continuing development efforts for its TR Series product family
and computer telephony development tools, as well as fax and OEM systems
development. The Company intends to continue to commit significant resources to
product development and expects that research and development expenditures will
be approximately 13% to 15% of revenue for the foreseeable future.

     Selling, general and administrative expense was $3,558,000 during the three
months ended September 30, 1996, compared with $2,219,000 during the same period
in 1995. This higher expense level resulted from increased staffing, promotional
activities and travel expenses. As a percentage of revenue, selling, general and
administrative expense for the third quarter of 1996 was 22% of revenue,
compared with 23% for the third quarter of 1995.


<PAGE>   10

     For the three months ended September 30, 1996, interest and other income
was $328,000, compared with $275,000 for the same period in 1995.

     The Company's effective tax rate, adjusted for significant permanent or
other differences occurring within a quarter, was 40% for the third quarter of
1996, based on the Company's estimated effective tax rate for the full year, and
25% for the third quarter of 1995. In 1995, TSI amounts included in income were
not subject to tax at the corporate level and accordingly, the effective tax
rate in 1995 was reduced.

Nine Months Ended September 30, 1996 and 1995

     Revenue during the nine months ended September 30, 1996 increased by
approximately 57% to $40,619,000, up from $25,881,000 during the nine months
ended September 30, 1995. This revenue increase was attributable to increased TR
Series products coupled with increased shipments of OEM voice systems. Increased
sales reflect the growth of the principal market segments served by the
Company's products, especially the manufacture and sale of fax products for use
on local area networks and the manufacture and sale of fax and OEM systems.

     Cost of product sold was $17,953,000, or 44% of revenue, during the nine
months ended September 30, 1996, compared to $11,929,000, or 46% of revenue in
1995. Gross profit percentage was 56% and 54% for the nine months ended
September 30, 1996 and 1995, respectively. The increase in gross profit
percentage is the result of a much higher proportion of TR Series product
shipments, which carry a comparatively higher gross margin than OEM systems,
coupled with decreases in product costs on OEM systems.

     Research and development expense was $5,047,000, or 12% of revenue,
compared with $3,331,000, or 13% of revenue, for the nine months ended September
30, 1996 and 1995, respectively. The dollar increase in 1996 reflects the
Company's continuing development efforts for its TR Series product family and
computer telephony development tools, as well as fax and OEM systems
development. As a result of the increase in the Company's revenue base, however,
the percentage remained comparable.

     Selling, general and administrative expense was $9,796,000 during the nine
months ended September 30, 1996, compared with $6,166,000 during the same period
in 1995. This higher expense level resulted from increased staffing, travel
expenses and promotional activities. As a percentage, selling, general and
administrative expense was 24% of revenue in 1996 and 1995.


<PAGE>   11

     During the nine months ended September 30, 1996, the Company incurred
approximately $1.2 million in costs related to the acquisition of and merger
with Technically Speaking, Inc. These costs related to professional fees for
legal and accounting advice, investment banking fees, and certain costs related
to the integration of the operations of the two companies.

     For the nine months ended September 30, 1996, interest and other income was
$837,000, compared with $695,000 for the same period in 1995.

     The Company's effective tax rate was 45% and 33% for the nine months ended
September 30, 1996 and 1995, respectively. In 1995, TSI amounts included in
income were not subject to tax at the corporate level and accordingly, the
effective tax rate in 1995 was reduced.


<PAGE>   12
Liquidity and Capital Resources

     For the nine months ended September 30, 1996, the Company funded its
operations principally through operating revenue. In July 1996, the Company
renewed its working capital line of credit. Under the renewed line of credit,
the Company may borrow up to $7,500,000 on an unsecured basis, all of which may
be used for issuance of letters of credit, subject to compliance with certain
covenants. The line of credit will expire in July 1997 and at that time any
outstanding balances would be payable in full. Any amounts borrowed under the
line would be subject to interest at the bank's prime rate. At September 30,
1996 there were no commitments outstanding on letters of credit; no borrowings
have been made during any period presented.

     The Company's working capital increased from $24.8 million at December 31,
1995 to $37.9 million at September 30, 1996. The increase was attributable, in
part, to higher cash balances and investments, accounts receivable, inventory,
deferred tax asset, and prepaid expense balances which were partially offset by
higher accounts payable and accrued compensation and commission balances. The
Company's aggregate cash, cash equivalents and marketable securities position
increased as a result of cash flows from operations and the proceeds from the
sale of stock offset by an increase in working capital and expenditures for
equipment and furniture.

     During the first nine months of 1996, the Company invested approximately
$2.7 million in capital equipment. The Company currently has no material
commitments for additional capital expenditures.

     The Company anticipates that cash flows from operations, together with
current cash and marketable securities balances and funds available under the
Company's line of credit, will be sufficient to meet the Company's working
capital and capital equipment expenditure requirements for the foreseeable
future.


<PAGE>   13



Part II. OTHER INFORMATION

Item 1. Legal Proceedings

     On October 4, 1996, Syntellect Technology Corp. ("Syntellect") filed a
Complaint against the Company in the United States District Court for the
Northern District of Texas, alleging infringement of certain patents held by
Syntellect relating to certain aspects of "automated attendant" technology.
Syntellect's Complaint does not identify the products of the Company which
allegedly infringe Syntellect's patents. The Complaint seeks injunctive relief,
damages in an unspecified amount, and multiple damages on account of alleged
willful infringement. The Company is reviewing the patents at issue, and intends
to defend the case vigorously.

Items 2. through 5.

        None

Item 6. Exhibits

        (a) Exhibits

               11. Computation of earnings per share


<PAGE>   14

                                   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.

                                      BROOKTROUT TECHNOLOGY, INC.



Date: November 11, 1996               By:/s/ Eric R. Giler
                                         ---------------------------------
                                         Eric R. Giler
                                         President
                                         (Principal Executive Officer)

Date: November 11, 1996               By:/s/ Robert C. Leahy
                                         ---------------------------------
                                         Robert C. Leahy
                                         Vice President of Finance and
                                            Operations and Treasurer
                                         (Principal Financial and
                                            Accounting Officer)


<PAGE>   15




                                  EXHIBIT INDEX

                                                       Sequentially
Exhibit Number         Exhibit                         Numbered Page

     11                Computation of Earnings
                       Per Share

                       -For the three months ended           16
                       September 30, 1996 and 1995
                       -For the nine months ended            17
                       September 30, 1996 and 1995