<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 March 31, 1998

     Transition report pursuant to Section 13 or 15(d) of the Securities 
     Exchange
---  Act of 1934.

     Commission file number 0-11428

                            INFORMATION RESOURCES, INC.
     -------------------------------------------------------------------------
                (Exact name of registrant as specified in its charter)

                Delaware                                     36-2947987
     ------------------------------------------------  -----------------------
            (State or other jurisdiction of                (I.R.S. Employer
             incorporation or organization)               Identification No.)

        150 North Clinton Street, Chicago, Illinois            60661
     ------------------------------------------------  -----------------------
          (Address of principal executive offices)           (Zip Code)


     Registrant's telephone number, including area code (312) 726-1221

     Securities registered pursuant to Section 12(g) of the Act:

                               Title of each class

                        Common, $.01 par value per share

                        Preferred Stock Purchase Rights

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
                                                ----   ----

The number of shares of the registrant's common stock, $.01 par value per share
outstanding, as of April 30, 1998 was 28,826,715.
<PAGE>   2



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES

                                     INDEX




<TABLE>
<CAPTION>
                                                                        PAGE
                                                                        NUMBER
<S>                                                                     <C>
         PART I.      FINANCIAL INFORMATION
         ----------------------------------

         Condensed Consolidated Balance Sheets                             3

         Condensed Consolidated Statements of Income                       4

         Condensed Consolidated Statements of Cash Flows                   5

         Notes to Condensed Consolidated Financial Statements              6

         Management's Discussion and Analysis of
           Financial Condition and Results of Operations                  10





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

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

         Signatures                                                       16
</TABLE>




                                       2

<PAGE>   3




                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>

                                                    MARCH 31,  DECEMBER 31, 
                                                      1998         1997
                                                    ---------  ------------
                                                   (UNAUDITED)
<S>                                                 <C>        <C>
ASSETS

      CURRENT ASSETS
        Cash and cash equivalents                    $  15,094  $  20,925
        Accounts receivable, net                       101,259     96,209
        Prepaid expenses and other                       7,797      9,563
                                                     ---------  ---------
             Total Current Assets                      124,150    126,697
                                                     ---------  ---------

      Property and equipment, at cost                  184,159    180,043
        Accumulated depreciation and amortization     (114,703)  (111,628)
                                                     ---------  ---------
             Net property and equipment                 69,456     68,415

      Investments                                        8,562     13,061

      Other assets                                     166,696    158,447
                                                     ---------  ---------


                                                     $ 368,864  $ 366,620
                                                     =========  =========

LIABILITIES AND STOCKHOLDERS' EQUITY

      CURRENT LIABILITIES
        Current maturities of capitalized leases    $   2,052  $   2,266
        Accounts payable                               43,002     49,306
        Accrued compensation and benefits              13,315     20,357
        Accrued property, payroll and other taxes       3,496      3,068
        Accrued expenses                               11,854      6,324
        Deferred revenue                               28,623     20,469
                                                    ---------  ---------
             Total Current Liabilities                102,342    101,790
                                                    ---------  ---------

        Long-term capitalized leases                       438        640
        Deferred income taxes, net                      14,586     13,660
        Other liabilities                                8,964      8,988

      STOCKHOLDERS' EQUITY
         Preferred stock-authorized 1,000,000 shares
              $.01 par value - none issued                  --         --
         Common stock - authorized 60,000,000 shares,
              $.01 par value; 28,709,170 and
              28,713,943 shares issued and
              outstanding, respectively                    287        287
         Capital in excess of par value                198,484    198,537
         Retained earnings                              47,842     45,932
         Cumulative translation adjustment              (4,079)    (3,214)
                                                     ---------  ---------
         Total Stockholders' Equity                    242,534    241,542
                                                     ---------  ---------
                                                     $ 368,864  $ 366,620
                                                     =========  =========
</TABLE>

     The accompanying notes are an integral part of these statements.



                                       3

<PAGE>   4



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   UNAUDITED
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)



     
     


<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED
                                                           MARCH 31
                                                     --------------------
                                                          1998       1997
                                                     ---------  ---------
<S>                                                  <C>        <C>

      Revenues                                        $119,190   $105,128

      Costs and expenses:
       Operating expenses                             (104,369)   (95,913)
       Selling, general and administrative expenses    (11,535)    (9,253)
                                                     ---------  ---------
                                                      (115,904)  (105,166)
                                                     ---------  ---------

      Operating profit (loss)                            3,286        (38)

      Interest expense and other, net                     (165)      (243)

      Equity in earnings of affiliated companies            74        160
                                                     ---------  ---------

      Earnings (loss) before income taxes and
       minority interests                                3,195       (121)

      Income tax expense                                (1,400)       (47)
                                                     ---------  ---------

      Earnings (loss) before minority interests          1,795       (168)

      Minority interests benefit                           115        223
                                                     ---------  ---------

      Net earnings                                    $  1,910   $     55
                                                     =========  =========

      Net earnings per common share - basic               $.07        $--
                                                     =========  =========

      Net earnings per common and
      common equivalent share - diluted                   $.07        $--
                                                     =========  =========

      Weighted average common shares - basic            28,671     28,052
                                                     =========  =========

      Weighted average common and
      common equivalent shares - diluted                28,946     28,563
                                                     =========  =========
</TABLE>





     The accompanying notes are an integral part of these statements.



                                       4

<PAGE>   5



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   UNAUDITED
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                      THREE MONTHS ENDED
                                                                           MARCH 31
                                                                      -------------------
                                                                           1998      1997
                                                                       --------  --------
<S>                                                                    <C>       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings                                                           $ 1,91    $   55
  Adjustments to reconcile net income to net cash provided by
  operating activities:
    Amortization of deferred data procurement costs                      27,087    23,911
    Depreciation                                                          5,497     4,970
    Amortization of capitalized software costs and intangibles            1,556     1,590
    Deferred income tax expense                                           1,400        47
    Equity in earnings of affiliated companies and minority interests      (189)     (383)
    Other                                                                   365      (897)
    Change in assets and liabilities:
       Increase in accounts receivable                                   (3,942)   (1,701)
       Decrease in other current assets                                   2,109     1,541
       Decrease in accounts payable and accrued liabilities              (6,898)   (9,053)
       Increase in deferred revenue                                       8,278     5,655
       Other, net                                                        (1,343)     (686)
                                                                       --------  --------
         Total adjustments                                               33,920    24,994
                                                                       --------  --------
         Net cash provided by operating activities                       35,830    25,049

CASH FLOWS FROM INVESTING ACTIVITIES:
  Deferred data procurement costs                                       (29,278)  (25,826)
  Purchase of property and equipment                                     (6,336)   (3,166)
  Capitalized software costs                                             (2,285)   (1,104)
  Proceeds  from disposition of assets and other                             97     1,730
                                                                       --------  --------
         Net cash used in investing activities                          (37,802)  (28,366)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net bank repayments                                                        --    (1,750)
  Repayments of capitalized leases                                         (416)   (1,030)
  Purchases of Common Stock                                              (3,839)       --
  Proceeds from exercise of stock options and other                         812     3,980
                                                                       --------  --------
         Net cash (used) provided by financing activities                (3,443)    1,200

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                    (416)     (684)
                                                                       --------  --------

         Net decrease in cash and cash equivalents                      (5,831)   (2,801)

  Cash and cash equivalents at beginning of period                       20,925    12,195
                                                                       --------  --------

  Cash and cash equivalents at end of period                            $15,094   $ 9,394
                                                                       ========  ========
</TABLE>





     The accompanying notes are an integral part of these statements.



                                       5

<PAGE>   6



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


     NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    
          Basis of presentation:  The accompanying condensed consolidated
     financial statements should be read in conjunction with the consolidated
     financial statements included in Information Resources, Inc.'s Annual
     Report on Form 10-K for the year ended December 31, 1997.  The condensed
     consolidated financial information furnished herein reflects all
     adjustments (consisting of normal recurring accruals) which are, in the
     opinion of management, necessary for a fair presentation of the condensed
     consolidated financial statements for the periods shown.

          Principles of consolidation:  The condensed consolidated financial
     statements include the accounts of Information Resources, Inc. and all
     wholly or majority owned subsidiaries and affiliates (collectively "the
     Company"). Minority interests reflect the non-Company owned stockholder
     interests within international operations, including effective February 1,
     1998, IRI/GfK Retail Services B.V. (the Netherlands).  The equity method of
     accounting is used for investments in which the Company has a 20% to 50%
     ownership and exercises significant influence over operating and financial
     policies.  All significant intercompany accounts and transactions have been
     eliminated in consolidation.

          Reclassifications:  Certain amounts in the 1997 condensed consolidated
     financial statements have been reclassified to conform to the 1998
     presentation.

          Adoption of Recent Statement of Financial Accounting Standards:  In
     July 1997, the Financial Accounting Standards Board ("FASB") issued
     Statement of Financial Accounting Standards No. 130, "Reporting
     Comprehensive Income" and Statement of Financial Accounting Standards No.
     131, "Disclosures about Segments of an Enterprise and Related Information"
     (collectively "the Standards").  The Standards are effective for fiscal
     years beginning after December 15, 1997.  The Company adopted Statement of
     Financial Accounting Standards No. 130, "Reporting Comprehensive Income" in
     the first quarter of 1998.  The Company is currently investigating the
     impact of Statement of Financial Accounting Standards No. 131 "Disclosures
     about Segments of an Enterprise and Related Information" for adoption in
     its December 31, 1998 consolidated financial statements.



                                       6

<PAGE>   7



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONT'D.
                                  (UNAUDITED)



   NOTE 2 - COMPREHENSIVE INCOME (LOSS)

        The comprehensive income summary shown below sets forth certain items
   that affect stockholders' equity but are excluded from the presentation of
   net income.  The components of comprehensive income/(loss) for the three
   months ended March 31, 1998 and 1997 were as follows (in thousands):


<TABLE>
<CAPTION>
                                                1998       1997
                                              ------   --------
<S>                                           <C>      <C>

                Net income                    $1,910        $55
                Foreign currency translation
                 adjustment, net of tax         (519)    (1,481)
                                              ------   --------

                Comprehensive income (loss)   $1,391    $(1,426)
                                              ======   ========
</TABLE>



   NOTE 3 - SUPPLEMENTAL CASH FLOW INFORMATION

        Cash paid for interest and income taxes during the period was as follows
   (in thousands):


<TABLE>
<CAPTION>
                                        THREE MONTHS ENDED MARCH 31
                                        ---------------------------
                                          1998               1997
                                        ------             ------
<S>                                     <C>                <C>

                   Interest             $ 304               $ 525
                   Income taxes           372                 242
</TABLE>



   NOTE 4 - THE NETHERLANDS OPERATIONS

        The Company and GfK AG of Germany ("GfK") operate a joint venture which
   offers a scanner-based product tracking service to the Netherlands market
   operating under the InfoScan name.  This scanner-based product tracking
   service became fully-operational in 1994.  Until early 1998, this joint
   venture was owned 80.1% by GfK and 19.9% by the Company.  In February 1998,
   the Company increased its ownership to 51% and took over management
   responsibilities. The Company provides production services to the joint
   venture through the Company's computer facilities in Wood Dale, Illinois.

        In 1998, the Company also sold a 9.9% interest in GfK Panel Services
   Benelux B.V. and GfK Belgium S.A. reducing its ownership to 10%.  Those
   companies operate household panel services in the Netherlands and Belgium
   and continue to cooperate with the Netherlands InfoScan operation in the
   sale and delivery of services to common customers.



                                       7

<PAGE>   8



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONT'D.
                                  (UNAUDITED)


NOTE 5 - ACCOUNTS RECEIVABLE

   Accounts receivable were as follows (in thousands):
<TABLE>
<CAPTION>
                                                        MARCH 31, 1998  DECEMBER 31,1997
                                                        --------------  ----------------
<S>                                                     <C>             <C>

         Billed                                               $ 72,859          $ 70,761
         Unbilled                                               32,051            29,288
                                                        --------------  ----------------
                                                               104,910           100,049
         Reserve for accounts receivable                        (3,651)           (3,840)
                                                        --------------  ----------------

                                                              $101,259          $ 96,209
                                                        ==============  ================
</TABLE>

NOTE 6 - OTHER ASSETS

   Other assets were as follows (in thousands):
<TABLE>
<CAPTION>
                                                        MARCH 31, 1998  DECEMBER 31, 1997
                                                        --------------  ----------------
        <S>                                             <C>             <C>
         Deferred data procurement costs -
           net of accumulated amortization of
           $109,508 in 1998 and $108,491 in 1997              $128,367          $126,733

         Intangible assets, including goodwill
           primarily related to acquisitions -
           net of accumulated amortization of
           $11,012 in 1998 and $10,233 in 1997                  21,219            16,463

         Capitalized software costs - net of
           accumulated amortization of $4,252
           in 1998 and $3,578 in 1997                            7,622             6,093

         Other                                                   9,488             9,158
                                                        --------------  ----------------
                                                              $166,696          $158,447
                                                        ==============  ================
</TABLE>


                                       8
<PAGE>   9



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, CONT'D.
                                  (UNAUDITED)



   NOTE 7 - LONG-TERM DEBT

        The Company currently has a $75.0 million bank revolving credit
   facility maturing in 2001. The facility has floating interest rate options
   at or below prime and commitment fees of .15% payable on the unused portion.

        The financial covenants in the bank credit agreement, as well as in the
   lease agreement for the Company's Chicago headquarters, require the Company
   to maintain a minimum tangible net worth and to meet certain cash flow
   coverage and leverage ratios.  The agreements also limit the Company's
   ability to declare dividends or make distributions to holders of capital
   stock, or redeem or otherwise acquire shares of the Company.  Approximately
   $65.4 million is currently available for such distributions under the most
   restrictive of these covenants.  The credit agreement contains covenants
   which restrict the Company's ability to incur additional indebtedness.



                                       9

<PAGE>   10



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


   RESULTS OF OPERATIONS

        The Company's consolidated net earnings were $1.9 million or $.07 per
   diluted share for the first quarter of 1998 compared to essentially
   break-even earnings for the corresponding 1997 quarter.  Consolidated
   revenues for the three months ended March 31, 1998 were $119.2 million, an
   increase of 13% over the corresponding quarter in 1997.  This increase was
   the result of revenue growth in the U.S. Services business and a substantial
   increase in international revenues which was aided somewhat by the inclusion
   of the Netherlands operation effective February 1998.

        Consolidated operating expenses increased 9% to $104.4 million for the 
   three months ended March 31, 1998 compared to $95.9 million for the same     
   period in 1997.  The increase in the first quarter of 1998 was primarily due
   to: (a) a $5.6 million increase in compensation expense resulting primarily
   from higher salaries and higher headcount required for operations, client
   servicing and international growth; (b) a $3.2 million increase in
   amortization of deferred data procurement costs, principally resulting from
   the expansion of the information services business in Europe; and (c) $1.4
   million increase in operating expenses due to the consolidation of IRI/GfK
   Retail Services B.V.

        Consolidated selling, general and administrative expenses increased 25%
   to $11.5 million for the first quarter of 1998.  This increase was primarily
   attributable to higher compensation expenses worldwide and legal expenses in
   the U.S.  Increased legal expenses related directly to the Company's
   antitrust lawsuit against The Dun & Bradstreet Corporation, ACNielsen
   Company and IMS International, Inc.  In that suit the Company is seeking $1
   billion in trebled damages from the defendants for violations of U.S.
   antitrust laws.  The case recently entered the discovery phase and the
   Company anticipates incurring its current level of legal expenses in the next
   several fiscal quarters as the case progresses toward trial.

        For all periods presented, the Company's effective income tax rate is
   greater than the U.S. Federal statutory rate due to certain unbenefitted
   foreign losses, goodwill amortization and other nondeductible expenses.

        Based upon discussions with financial analysts, the Company considers
   the aggregation of operating profit (loss), equity earnings and minority
   interests ("Operating Results"), on a geographic basis to be a meaningful
   measure of the Company's operating performance.  A comparative analysis of
   consolidated revenues and Operating Results for the three months ended March
   31, 1998 and 1997 follows (in thousands):


       
       


<TABLE>
<CAPTION>
                                                     THREE MONTHS ENDED
                                                           MARCH 31
                                                     ------------------
                                                         1998      1997
                                                     --------  --------
<S>                                                  <C>       <C>

        Revenues:
         U.S. Services                               $ 94,572  $ 86,090
         International Services                        24,618    19,038
                                                     --------  --------
                                                     $119,190  $105,128
                                                     ========  ========

        Operating Results:
         U.S. Services operating profit              $  9,551  $  6,863
         International Services
           Operating loss                              (4,988)   (6,485)
           Equity in earnings of affiliated company        74       160
           Minority interests                             115       223
                                                     --------  --------
              Subtotal - International                 (4,799)   (6,102)

         Corporate and other expenses                  (1,277)     (416)
                                                     --------  --------

         Operating Results                           $  3,475  $    345
                                                     ========  ========
</TABLE>



        In the first quarter of 1998, revenues from the Company's U.S. services
   business were $94.6 million, an increase of 10% compared to $86.1 million
   for the corresponding 1997 quarter.  Operating Results for the Company's
   U.S. businesses were $9.6 million in the first quarter of 1998 compared to
   $6.9 million for the first quarter of 1997. The 39% increase of U.S.
   Operating Results was due to the growth in revenues together with the
   benefit of lower expense growth resulting from cost containment initiatives
   and the relatively high fixed cost structure of the Company's database
   operations.



                                       10

<PAGE>   11



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
           OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.



        First quarter 1998 revenues from the Company's International businesses
   were $24.6 million, an increase of 29% over the corresponding 1997 quarter.
   Results in the first quarter of 1998 reflect the consolidation of IRI's
   majority-owned operations in the Netherlands, IRI/GfK Retail Services, B.V.,
   effective February 1, 1998.  Excluding the revenues from the Netherlands and
   adjusted for foreign exchange effects, European revenues increased 26%
   compared to the first quarter of 1997.  International revenue increases were
   accomplished despite the depreciation of several foreign currencies against a
   strong U.S. dollar.  Operating Results for the Company's International
   businesses were a ($4.8) million loss in the first quarter of 1998 compared
   to a ($6.1) million loss in the corresponding 1997 quarter. The improved
   International results were principally due to continuing revenue growth of
   the Company's major European services.


                                       11

<PAGE>   12



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
           OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.


   LIQUIDITY AND CAPITAL RESOURCES

        The Company's current cash resources include its $15.1 million
   consolidated cash balance and $75.0 million available under the Company's
   bank revolving credit facility.  The Company anticipates that it will have
   sufficient funds from these sources and internally generated funds from its
   U.S. operations to satisfy its cash needs for the foreseeable future.

        The financial covenants in the bank credit agreement, as well as in the
   lease agreement for the Company's Chicago headquarters, require the Company
   to maintain a minimum tangible net worth and to meet certain cash flow
   coverage and leverage ratios.  The agreements also limit the Company's
   ability to declare dividends or make distributions to holders of capital
   stock, or redeem or otherwise acquire shares of the Company.  Approximately
   $65.4 million is currently available for such distributions under the most
   restrictive of these covenants.  The credit agreement contains covenants
   which restrict the Company's ability to incur additional indebtedness.

        Cash Flow:  Consolidated net cash provided by operating activities was
   $35.8 million for the three months ended March 31, 1998 compared to $25.0
   million for the same period in 1997, primarily due to improved operating
   performance and lower working capital investment in 1998.  Consolidated cash
   used in net investing activities was ($37.8) million in 1998 compared to
   ($28.4) million for the same period in 1997.  Investing activity for the
   first quarter of 1998 reflects higher expenditures in the U.S. business for
   both data procurement costs and purchases of property and equipment when
   compared to the first quarter of 1997.  Net cash used before financing
   activities was ($2.0) million for the three months ended March 31, 1998 and
   ($3.3) million for the same period of 1997. Consolidated cash (used)
   provided by net financing activities was ($3.4) million for the three months
   ended March 31, 1998 compared to $1.2 million for the same period in 1997.
   The first quarter of 1998 reflects $3.8 million of purchases of Common Stock
   under the stock purchase plan approved by the Company's Board of Directors
   in November 1997.

        Common Stock Purchase Plan:  In November 1997, the Company's Board of
   Directors approved a plan to purchase up to two million shares of the
   Company's Common Stock from time to time in the open market.  Purchases
   under the plan are subject to a number of considerations including the
   market price of the Company's Common Stock and general market conditions.
   Through March 31, 1998, the Company has purchased a cumulative total of
   487,000 shares of its Common Stock at an average price of just over $14 per
   share.  Purchases of Common Stock during the quarter ended March 31, 1998
   aggregated 67,600 shares at an average price of $13.36 per share.

        Other Deferred Costs and Capital Expenditures:  Consolidated deferred
   data procurement expenditures were $29.3 million for the three months ended
   March 31, 1998 and $25.8 million for the same period in 1997.  These
   expenditures are amortized over a period of 28 months and include



                                       12

<PAGE>   13



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
           OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.


   payments and services to retailers for point-of-sale data and other costs
   related to collecting, reviewing and verifying other data which are an
   essential part of the Company's data base.  Such expenditures for the
   Company's U.S. services business were $18.9 million and $16.4 million for
   the periods ended March 31, 1998 and 1997, respectively, and $10.4 million
   and $9.4 million, respectively, for the Company's International services
   business.

        Management expects to continue the development of its businesses in
   Europe, and accordingly, the Company's European operations will continue to
   require substantial investment in data procurement costs.  Based upon
   currently projected Operating Results and cash flows, the Company's
   assessment is that the realizability of its International assets is not
   impaired.  To the extent that actual Operating Results and cash flows are
   lower than current projections, the Company may be required to write down a
   portion of these assets in future periods.

        Consolidated capital expenditures were $6.3 million and $3.2 million
   for the three months ended March 31, 1998 and 1997, respectively.  Capital
   expenditures for the Company's U.S. services business were $5.2 million and
   $2.3 million for the three months ended March 31, 1998 and 1997,
   respectively, while related depreciation expense was $4.4 million and $4.0
   million, respectively.  The Company's International services business
   capital expenditures were $1.1 million and $.9 million for the three months
   ended March 31, 1998 and 1997, while related depreciation expense was $1.1
   million and $1.0 million, respectively.

        Consolidated capitalized software development costs were $2.3 million
   and $1.1 million for the three months ended March 31, 1998 and 1997,
   respectively.

        NOL Carryforwards:  As of December 31, 1997, the Company had cumulative
   U.S. Federal net operating loss ("NOL") carryforwards of approximately $70.8
   million that expire primarily in 2009 and 2011. At December 31, 1997, the    
   Company had general business tax credit carryforwards of approximately $9.5
   million which expire primarily between 1999 and 2012, and are available to
   reduce future Federal income tax liabilities. Certain of these carryforwards
   have  not been examined by the Internal Revenue Service and, therefore, are
   subject to adjustment. In addition, at December 31, 1997, various foreign
   subsidiaries of IRI had aggregate cumulative NOL carryforwards for foreign
   income tax purposes of approximately $8.9 million which are subject to
   various income tax provisions of each respective country.  Approximately
   $3.3 million of these foreign NOL's may be carried forward indefinitely,
   while the remaining $5.6 million expire in 2000 and 2002.

        Impact of Inflation:  Inflation has slowed in recent years and is
   currently not an important determinant of the Company's results of
   operations.  To the extent permitted by competitive conditions, the Company
   passes increased costs on to customers by adjusting sales prices and in the
   case of multi-year contracts through consumer price index provisions of such
   agreements.



                                       13

<PAGE>   14



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
           OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONT'D.


        Year 2000:  The Company has been assessing whether the hardware and
   software used in its businesses will function properly in connection with
   the transition of dates from 1999 to 2000.  Based on its evaluation to date,
   management believes that most of the hardware and software used in the
   Company's businesses are either now Year 2000 compliant or will become so
   prior to midyear 1999 through regular product upgrades and replacements.
   Therefore, management currently anticipates that, in connection with
   bringing its own hardware and software into compliance, the Company will not
   incur material expenditures which would cause the Company's reported
   consolidated financial information not to be indicative of future
   consolidated operating results or financial condition.

        The Company potentially faces Year 2000 compliance issues with certain
   of its data vendors and tracking service clients.  The Company is currently
   developing a plan to ensure that all such hardware and software interfacing
   with the Company complies with Year 2000 requirements.  The Company believes
   that its plans to address Year 2000 concerns are adequate and does not
   currently anticipate significant problems with data suppliers and clients on
   which the Company's systems rely. If the Company's data suppliers do not
   become Year 2000 compliant on a timely basis, delays in the Company's data
   delivery to clients may occur.  If clients do not become Year 2000
   compliant, their ability to utilize the Company's data and services may be
   negatively affected.  A significant disruption of service, if it were to
   occur, could negatively impact the Company's financial performance.

        Forward Looking Information:  Certain matters discussed herein may
   contain forward-looking statements that are subject to risks and
   uncertainties that could cause actual results to differ materially from
   those anticipated, including customer renewals of service contracts, the
   timing of significant new customer engagements, increased competitive
   conditions in Europe, foreign currency exchange rates and other factors
   beyond the Company's control.  These risks and uncertainties are described
   in reports and other documents filed by the Company with the Securities and
   Exchange Commission.



                                       14

<PAGE>   15



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES
                                    PART II

                               OTHER INFORMATION





   Item 6. Exhibits and Reports on Form 8-K

          a.   Exhibits


          Exhibit No.  Description of Exhibit                     Page
          -----------  -----------------------------------------  ----

            27         Financial Data Schedule (filed herewith).   EF


          b.   Reports on Form 8-K.

        The registrant has not filed any reports on Form 8-K during
        the quarter for which this report is filed.



                                       15

<PAGE>   16



                  INFORMATION RESOURCES, INC. AND SUBSIDIARIES



                                   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.




                                     INFORMATION RESOURCES, INC.
                                     ---------------------------
                                     (Registrant)





                                     /s/  Gary M. Hill
                                     -----------------
                                     Gary M. Hill
                                     Executive Vice President
                                     and Chief Financial Officer
                                     (Authorized officer of Registrant and
                                     principal financial officer)






                                    /s/  John P. McNicholas, Jr.
                                    ----------------------------
                                    John P. McNicholas, Jr.
                                    Senior Vice President and Controller
                                    (Principal accounting officer)






May 14, 1998



                                       16