<PAGE>   1


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    Form 10-Q
                        Quarterly Report Under Section 13
                           or 15 (d) of the Securities
                              Exchange Act of 1934
                              ---------------------



For the Quarter Ended
  September 30, 2000                         Commission File Number  0-18650
---------------------                        --------------------------------


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its charter)


   Delaware                                            36-3639399
----------------                             --------------------------------
 State or other                              IRS Employer Identification
 jurisdiction of                                        Number
 incorporation or
 organization

1300 E. Woodfield Road, Suite 312            Schaumburg, Illinois 60173
---------------------------------            --------------------------------
 Address of principal                            City, State, Zip Code
 executive offices

Registrant's telephone number:                      (847) 240-6200
                                             --------------------------------




         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.



                                (1)  Yes  x   No
                                         ---     ---

                                (2)  Yes  x   No
                                         ---     ---



<PAGE>   2


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                    FORM 10-Q
                    FOR THE QUARTER ENDED SEPTEMBER 30, 2000

PART I - FINANCIAL INFORMATION

Item 1.

  Index to Financial Statements

    Balance Sheets

      September 30, 2000 (unaudited)                                3

      December 31, 1999                                             4

    Statements of Revenue and Expenses (unaudited)

      For the three months ended September 30, 2000                 5

      For the three months ended September 30, 1999                 6

      For the nine months ended September 30, 2000                  7

      For the nine months ended September 30, 1999                  8

    Statements of Changes in Partners' Equity

      For the nine months ended September 30, 2000
         (unaudited)                                                9

    Statements of Cash Flows (unaudited)

      For the nine months ended September 30, 2000                 10

      For the nine months ended September 30, 1999                 11

    Notes to Financial Statements (unaudited)                      12

Item 2.

  Management's Discussion and Analysis of
    Financial Condition and Results of Operations             13 - 15

Item 3.

  Quantitative and Qualitative Disclosures about
    Market Risk                                                    15

PART II - OTHER INFORMATION

Items 1-6.                                                         16
----------


                                        2

<PAGE>   3


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                 BALANCE SHEETS
                               SEPTEMBER 30, 2000
                                   (Unaudited)



                                    Liquidating  Continuing
                                      Limited     Limited
                                      Partners     Partner       Total
                                    -----------  -----------   ----------
ASSETS

Cash and cash equivalents            $  258,000   $1,084,445   $1,342,445
Net investment in direct financing
  leases                                   --           --           --
Residual interest in CRCA                  --           --           --
Diverted and other assets, net          114,958      401,940      516,898
Datronic assets, net                       --           --           --
                                     ----------   ----------   ----------

                                     $  372,958   $1,486,385   $1,859,343
                                     ==========   ==========   ==========

LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued
  expenses                           $    6,896   $   28,501   $   35,397
                                     ----------   ----------   ----------

    Total liabilities                     6,896       28,501       35,397

Total partners' equity                  366,062    1,457,884    1,823,946
                                     ----------   ----------   ----------

                                     $  372,958   $1,486,385   $1,859,343
                                     ==========   ==========   ==========



                 See accompanying notes to financial statements


                                       3


<PAGE>   4


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                 BALANCE SHEETS
                               DECEMBER 31, 1999


                                    Liquidating  Continuing
                                       Limited    Limited
                                       Partners    Partner       Total
                                    -----------  -----------   ----------

ASSETS

Cash and cash equivalents            $  570,937   $2,458,123   $3,029,060
Net investment in direct financing
  leases                                   --         49,019       49,019
Residual interest in CRCA                  --           --           --
Diverted and other assets, net          176,327      616,511      792,838
Datronic assets, net                       --           --           --
                                     ----------   ----------   ----------

                                     $  747,264   $3,123,653   $3,870,917
                                     ==========   ==========   ==========

LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued
  expenses                           $    8,524   $   36,654   $   45,178
Lessee rental deposits                     --         14,377       14,377
                                     ----------   ----------   ----------

    Total liabilities                     8,524       51,031       59,555

Total partners' equity                  738,740    3,072,622    3,811,362
                                     ----------   ----------   ----------

                                     $  747,264   $3,123,653   $3,870,917
                                     ==========   ==========   ==========



                 See accompanying notes to financial statements


                                       4

<PAGE>   5



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  For the three months ended September 30, 2000
                                   (Unaudited)


                                    Liquidating  Continuing
                                       Limited    Limited
                                       Partners    Partner       Total
                                    -----------  -----------   ----------
Revenue:
  Lease income                       $     579    $   2,274    $   2,853
  Interest income                          337       16,146       16,483
                                     ---------    ---------    ---------

                                           916       18,420       19,336
                                     ---------    ---------    ---------

Expenses:
  General Partner's expense
    reimbursement                       27,939       97,685      125,624
  Professional fees                      2,715       10,703       13,418
  Other operating expenses                 959        3,354        4,313
  Credit for lease losses                 (443)      (1,547)      (1,990)
                                     ---------    ---------    ---------

                                        31,170      110,195      141,365
                                     ---------    ---------    ---------

Net loss                             $ (30,254)   $ (91,775)   $(122,029)
                                     =========    =========    =========

Net loss - General Partner           $    (302)   $    (918)   $  (1,220)
                                     =========    =========    =========

Net loss - Limited Partners          $ (29,952)   $ (90,857)   $(120,809)
                                     =========    =========    =========

Net loss per limited
   partnership unit                  $   (0.67)   $   (0.58)
                                     =========    =========

Weighted average number of limited
   partnership units outstanding        44,468      155,509
                                     =========    =========




                 See accompanying notes to financial statements

                                       5
<PAGE>   6


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  For the three months ended September 30, 1999
                                   (Unaudited)


                             Liquidating   Continuing
                               Limited      Limited
                               Partners      Partner       Total
                             -----------   ----------   ----------
Revenue:
  Lease income                $     316    $   5,116    $   5,432
  Interest income                 5,081       29,026       34,107
                              ---------    ---------    ---------

                                  5,397       34,142       39,539
                              ---------    ---------    ---------

Expenses:
  General Partner's expense
    reimbursement                36,662      141,648      178,310
  Professional fees               4,203       16,361       20,564
  Other operating expenses        1,882        6,584        8,466
  Credit for lease losses        (1,815)      (6,346)      (8,161)
                              ---------    ---------    ---------

                                 40,932      158,247      199,179
                              ---------    ---------    ---------

Net loss                      $ (35,535)   $(124,105)   $(159,640)
                              =========    =========    =========

Net loss - General Partner    $    (355)   $  (1,241)   $  (1,596)
                              =========    =========    =========

Net loss - Limited Partners   $ (35,180)   $(122,864)   $(158,044)
                              =========    =========    =========

Net loss per limited
   partnership unit             $ (0.79)     $ (0.79)
                              =========    =========

Weighted average number of
   limited partnership units
   outstanding                   44,468      155,509
                              =========    =========





                 See accompanying notes to financial statements


                                        6
<PAGE>   7


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  For the nine months ended September 30, 2000
                                   (Unaudited)


                                   Liquidating   Continuing
                                     Limited       Limited
                                     Partners      Partner       Total
                                   -----------   -----------   ----------
Revenue:
  Lease income                       $   3,480    $  13,555    $  17,035
  Interest income                        8,266       74,335       82,601
                                     ---------    ---------    ---------

                                        11,746       87,890       99,636
                                     ---------    ---------    ---------

Expenses:
  General Partner's expense
    reimbursement                      178,594      624,306      802,900
  Professional fees                     13,255       52,577       65,832
  Other operating expenses               8,201       29,242       37,443
  Provision (credit) for lease
    losses                              (5,566)       5,769          203
                                     ---------    ---------    ---------

                                       194,484      711,894      906,378
                                     ---------    ---------    ---------

Net loss                             $(182,738)   $(624,004)   $(806,742)
                                     =========    =========    =========

Net loss - General Partner           $  (1,827)   $  (6,240)   $  (8,067)
                                     =========    =========    =========

Net loss - Limited Partners          $(180,911)   $(617,764)   $(798,675)
                                     =========    =========    =========

Net loss per limited
   partnership unit                  $   (4.07)   $   (3.97)
                                     =========    =========

Weighted average number of limited
   partnership units outstanding        44,468      155,509
                                     =========    =========




                 See accompanying notes to financial statements



                                       7
<PAGE>   8



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  For the nine months ended September 30, 1999
                                   (Unaudited)

                                   Liquidating   Continuing
                                     Limited       Limited
                                     Partners      Partner       Total
                                   -----------   -----------   ----------
Revenue:
  Lease income                       $   3,017    $  36,193    $  39,210
  Interest income                       33,981      148,678      182,659
                                     ---------    ---------    ---------

                                        36,998      184,871      221,869
                                     ---------    ---------    ---------

Expenses:
  General Partner's expense
    reimbursement                      131,321      501,662      632,983
  Professional fees                     21,053       84,690      105,743
  Other operating expenses               6,676       23,681       30,357
  Credit for lease losses              (50,566)    (206,800)    (257,366)
                                     ---------    ---------    ---------

                                       108,484      403,233      511,717
                                     ---------    ---------    ---------

Net loss                             $ (71,486)   $(218,362)   $(289,848)
                                     =========    =========    =========

Net loss - General Partner           $    (715)   $  (2,184)   $  (2,899)
                                     =========    =========    =========

Net loss - Limited Partners          $ (70,771)   $(216,178)   $(286,949)
                                     =========    =========    =========

Net loss per limited
   partnership unit                  $   (1.59)   $   (1.39)
                                     =========    =========

Weighted average number of limited
   partnership units outstanding        44,468      155,509
                                     =========    =========




                 See accompanying notes to financial statements



                                        8
<PAGE>   9
                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY
                                   (Unaudited)

<TABLE>
<CAPTION>
                                             Liquidating    Continuing
                               General         Limited        Limited         Total
                              Partner's       Partners'      Partners'      Partners'
                                Equity         Equity         Equity         Equity
                              ---------      -----------    -----------    ----------
<S>                           <C>            <C>            <C>            <C>
Balance, December 31, 1999*   $      --      $   738,740    $ 3,072,622    $ 3,811,362

  Distributions to partners          --         (189,940)      (990,734)    (1,180,674)
  Net loss                         (8,067)      (180,911)      (617,764)      (806,742)
  Allocation of General
    Partner's Equity                8,067         (1,827)        (6,240)          --
                              -----------    -----------    -----------    -----------

Balance, September 30, 2000   $      --      $   366,062    $ 1,457,884    $ 1,823,946
                              ===========    ===========    ===========    ===========
</TABLE>


*  Balances are net of $57,914 and $299,245 of General Partner's equity
   previously allocated to Liquidating and Continuing Limited Partners' Equity.



                 See accompanying notes to financial statements



                                       9
<PAGE>   10


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                            STATEMENTS OF CASH FLOWS
                  For the nine months ended September 30, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                         Liquidating    Continuing
                                           Limited        Limited
                                           Partners      Partners         Total
                                         -----------    -----------    ----------
<S>                                      <C>            <C>            <C>
Cash flows from operating activities:
  Net loss                               $  (182,738)   $  (624,004)   $  (806,742)
  Adjustments to reconcile net loss
    to net cash used in operating
    activities:
    Provision (credit) for lease
      losses                                  (5,566)         5,769            203
    Changes in assets and liabilities:
      Accounts payable and
        accrued expenses                      (1,628)        (8,153)        (9,781)
      Lessee rental deposits                    --          (14,377)       (14,377)
                                         -----------    -----------    -----------
                                            (189,932)      (640,765)      (830,697)
                                         -----------    -----------    -----------

Cash flows from investing activities:
  Principal collections on leases              5,566         43,250         48,816
  Distribution of Diverted and
    other assets                              61,369        214,571        275,940
                                         -----------    -----------    -----------
                                              66,935        257,821        324,756
                                         -----------    -----------    -----------

Cash flows from financing activities:
  Distributions to Limited Partners         (189,940)      (990,734)    (1,180,674)
                                         -----------    -----------    -----------

Net decrease in cash and
  cash equivalents                          (312,937)    (1,373,678)    (1,686,615)
Cash and cash equivalents:
  Beginning of year                          570,937      2,458,123      3,029,060
                                         -----------    -----------    -----------
  End of third quarter                   $   258,000    $ 1,084,445    $ 1,342,445
                                         ===========    ===========    ===========

</TABLE>


                 See accompanying notes to financial statements


                                       10
<PAGE>   11
                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                            STATEMENTS OF CASH FLOWS
                  For the nine months ended September 30, 1999
                                   (Unaudited)

<TABLE>
<CAPTION>
                                         Liquidating    Continuing
                                           Limited        Limited
                                           Partners      Partners         Total
                                         -----------    -----------    ----------
<S>                                      <C>            <C>            <C>
Cash flows from operating activities:
  Net loss                               $   (71,486)   $  (218,362)   $  (289,848)
  Adjustments to reconcile net loss
    to net cash used in operating
    activities:
    Credit for lease losses                  (50,566)      (206,800)      (257,366)
    Changes in assets and liabilities:
      Judgment receivable, net                29,673        103,747        133,420
      Accounts payable and
        accrued expenses                      (7,548)       (29,598)       (37,146)
      Lessee rental deposits                  (6,133)       (26,213)       (32,346)
                                         -----------    -----------    -----------
                                            (106,060)      (377,226)      (483,286)
                                         -----------    -----------    -----------

Cash flows from investing activities:
  Principal collections on leases             14,426        294,151        308,577
  Residual interest in CRCA                   36,140        126,360        162,500
                                         -----------    -----------    -----------
                                              50,566        420,511        471,077
                                         -----------    -----------    -----------

Cash flows from financing activities:
  Distributions to Limited Partners       (1,756,395)    (4,618,561)    (6,374,956)
                                         -----------    -----------    -----------

Net decrease in cash and
  cash equivalents                        (1,811,889)    (4,575,276)    (6,387,165)
Cash and cash equivalents:
  Beginning of year                        2,417,775      7,094,146      9,511,921
                                         -----------    -----------    -----------
  End of third quarter                   $   605,886    $ 2,518,870    $ 3,124,756
                                         ===========    ===========    ===========
</TABLE>




                 See accompanying notes to financial statements


                                       11
<PAGE>   12
                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2000
                                   (Unaudited)



NOTE 1 - LIMITED PARTNERSHIP DISTRIBUTIONS:

During June 2000, the Partnership made a cash distribution to Limited Partners
who were owners of record on March 31, 2000. This distribution was made from
residual cash, which is cash available for distribution after satisfying current
Partnership liabilities and setting aside reserves against potential future
Partnership liabilities. The total distribution paid to Continuing and
Liquidating Limited Partners was $991,000 and $190,000, respectively. Pursuant
to the Partnership Agreement, these amounts were allocated among the Limited
Partners based on each partner's proportionate share of total partners' capital
attributable to their Class.

NOTE 2 - LITIGATION

In connection with the 1992 Ventre class action, the United States District
Court for the Northern District of Illinois entered an order on September 27,
2000 finding that Edmund J. Lopinski, Jr. had caused the Datronic Partnerships
to sustain losses of $20.0 million. Against this amount, the Court offset $10.9
million that has already been realized on behalf of the Partnerships through the
sale of Diverted and Other Assets and insurance settlements. The Court also
found that Lopinski is entitled to offset the remaining $9.1 million loss with
the proceeds previously received from the other defendants in the Ventre action
and the appraised value of the Schaumburg office building. Proceeds received
from the other defendants totaled $4.9 million, leaving $4.2 million to be
recovered from the building. During the third quarter 2000, the General Partner
received appraisals for the building indicating that its value substantially
exceeds this amount. Accordingly, the losses assessed against Lopinski have been
fully mitigated.

With this ruling, the Ventre, et al v. Datronic Rental Corp., et al class action
is closed.



                                       12


<PAGE>   13



PART I

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


The following discussion and analysis of liquidity and capital resources covers
material changes in the Partnership's financial condition from December 31, 1999
through September 30, 2000. The discussion and analysis of results of operations
is for the three and nine month periods ended September 30, 2000 as compared to
the corresponding periods in 1999. Any capitalized term not defined herein has
been defined or discussed in the Partnership's 1999 Form 10-K.

Liquidity and Capital Resources

During the nine months ended September 30, 2000, the Partnership continued to
liquidate its assets and use its cash to pay Partnership operating expenses, pay
a distribution to Limited Partners and provide for the ultimate liquidation of
the Partnership. During this period, Partnership cash and cash equivalents
decreased by $1,687,000 to $1,342,000 at September 30, 2000 from $3,029,000 at
December 31, 1999. This decrease is primarily due to a distribution paid to
Limited Partners of $1,181,000 (see below) and by cash used in operations of
$831,000, partially offset by cash receipts from collections on leases of
$49,000 and $276,000 from a distribution of Diverted and other assets.

During June 2000, the Partnership made a cash distribution to Limited Partners
who were owners of record on March 31, 2000. This distribution was made from
residual cash, which is cash available for distribution after satisfying current
Partnership liabilities and setting aside reserves against potential future
Partnership liabilities. The total distribution paid to Continuing and
Liquidating Limited Partners was $991,000 and $190,000, respectively. Pursuant
to the Partnership Agreement, these amounts were allocated among the Limited
Partners based on each partner's proportionate share of total partners' capital
attributable to their Class.

The Partnership's sources of future liquidity are expected to come from
cash-on-hand and the proceeds from the sale of the remaining Diverted Assets
(consisting of cash and an office building in Schaumburg, Illinois). The general
partner expects that the building will be sold during the first quarter of 2001
and the proceeds included in a subsequent distribution to Limited Partners.

The Partnership's interest in the Schaumburg office building is carried at
$517,000 (see Note 5 to the Partnership's financial statements included in the
1999 Form 10-K). At March 1993, the date LRC was appointed general partner, the
building was approximately 40%



                                       13
<PAGE>   14




occupied. Since then, occupancy has increased to more than 80% and base rental
rates have increased by 75%. An appraisal received during the third quarter 2000
indicates that the building's value has increased substantially over its book
value.

After all assets are disposed of and the proceeds distributed to the Limited
Partners, the Partnership will be required to file final reports with the
Securities and Exchange Commission and the Internal Revenue Service. The general
partner expects this to occur sometime during 2001.

Results of Operations

The Partnership had net losses of $122,000 and $807,000 for the three and nine
months ended September 30, 2000 in the aggregate for all classes of partners.
This compares to net losses of $160,000 and $290,000 for the three and nine
months ended September 30, 1999. Differences in operating results between
Liquidating and Continuing Limited Partners are attributable to lease income and
expenses associated with lease investments made since the March 4, 1993
Settlement. Liquidating Limited Partners do not participate in these post
Settlement activities. Significant factors affecting overall operating results
for the three and nine month periods ended September 30, 2000 and 1999 include
the following:

Lease income:
Since April 1995, the Partnership has been in its Liquidating Phase which
prohibits investing in any new leases. Accordingly, the lease portfolio has
continued to decrease as collections are made, resulting in a continued decline
in lease income. As of May 2000 the Partnership no longer has an active lease
portfolio. However, it does have $322,000 of fully reserved lease balances.
Occasionally recoveries are made against these balances and any such amounts in
excess of the reserve result in lease income.

Interest income:
Interest income includes earnings on invested cash balances. Interest income for
2000 was less than 1999 because of lower average invested cash balances,
partially offset by an increase in interest rates.

General Partner's expense reimbursement:
General Partner's expense reimbursement includes payments to LRC for expenses it
incurred as general partner. These expenses represent expenses incurred by LRC
in its management of the day-to-day operations of the Partnership. Included in
the first quarter 2000 expense are $303,000 of insurance premiums associated
with the wrap up of Partnership affairs and its ultimate liquidation and
dissolution.




                                       14
<PAGE>   15




Professional fees:
Professional fees for the nine months ended September 30, 2000 reflect a
decreasing level of professional services required as a result of the decrease
in the Partnership's lease portfolio and related activities.

Provision (credit) for lease losses:
This provision (credit) reflects the assessment of the potential losses inherent
in the lease portfolio and any recoveries of previously reserved balances. The
1999 credit includes the Partnership's share ($162,500) of a $250,000 recovery
against its residual interest in CRCA that resulted from the sale of a note
receivable. See Note 4 to the Partnership's financial statements included in the
1999 Form 10-K.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information called for in this disclosure is not applicable to the
Registrant.



                                       15
<PAGE>   16


PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1999 Form 10-K, for a discussion of material legal proceedings involving the
Partnership.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K


(a)  Exhibits


See Exhibit Index.

(b)  Reports on Form 8-K

None.



                                       16
<PAGE>   17
                                   SIGNATURES



Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized, on the 14th day of November 2000.





            DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
            Registrant





       By:  /s/DONALD D. TORISKY
            ----------------------------
            Donald D. Torisky
            Chairman and Chief Executive Officer,
            Lease Resolution Corporation
            General Partner of
            Datronic Equipment Income Fund XVIII, L.P.



       By:  /s/JEFFREY T. MCREYNOLDS
            ----------------------------
            Jeffrey T. McReynolds
            Vice President and Chief Financial Officer,
            Lease Resolution Corporation
            General Partner of
            Datronic Equipment Income Fund XVIII, L.P.




                                       17
<PAGE>   18



                                  EXHIBIT INDEX
                                  -------------


EXHIBIT NO.                   DESCRIPTION
-----------                   -----------
   27                         Financial Data Schedule, which is
                              submitted electronically to the
                              Securities and Exchange Commission
                              for information only and not filed.





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