<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, 1999                            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, 1999

PART I - FINANCIAL INFORMATION

Item 1.

  Index to Financial Statements

    Balance Sheets

      September 30, 1999 (unaudited)                                           3

      December 31, 1998                                                        4

    Statements of Revenue and Expenses (unaudited)

      For the three months ended September 30, 1999                            5

      For the three months ended September 30, 1998                            6

      For the nine months ended September 30, 1999                             7

      For the nine months ended September 30, 1998                             8

    Statements of Changes in Partners' Equity

      For the nine months ended September 30, 1999
         (unaudited)                                                           9

    Statements of Cash Flows (unaudited)

      For the nine months ended September 30, 1999                            10

      For the nine months ended September 30, 1998                            11

    Notes to Financial Statements (unaudited)                            12 - 13

Item 2.

  Management's Discussion and Analysis of
    Financial Condition and Results of Operations                        14 - 15

Item 3.

  Quantitative and Qualitative Disclosures about
    Market Risk                                                               16

PART II - OTHER INFORMATION

Items 1-6.                                                                    17


                                       2

<PAGE>   3
                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                 BALANCE SHEETS
                               September 30, 1999
                                  (Unaudited)

<TABLE>
<CAPTION>

                                         Liquidating          Continuing
                                           Limited              Limited
                                           Partners            Partners           Total
                                         -----------          -----------      -----------
<S>                                      <C>                  <C>              <C>
ASSETS

Cash and cash equivalents                $   605,886          $ 2,518,870      $ 3,124,756
Net investment in direct financing
  leases                                       -                  100,896          100,896
Residual interest in CRCA                      -                   -                -
Diverted and other assets, net               176,327              616,511          792,838
Datronic assets, net                           -                   -                -
                                         -----------          -----------      -----------

                                         $   782,213          $ 3,236,277      $ 4,018,490
                                         ===========          ===========      ===========

LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued
  expenses                               $     9,847          $    41,562      $    51,409
Lessee rental deposits                         3,301               27,027           30,328
                                         -----------          -----------      -----------

    Total liabilities                         13,148               68,589           81,737

Total partners' equity                       769,065            3,167,688        3,936,753
                                         -----------          -----------      -----------

                                         $   782,213          $ 3,236,277      $ 4,018,490
                                         ===========          ===========      ===========
</TABLE>


                 See accompanying notes to financial statements


                                        3
<PAGE>   4
                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                 BALANCE SHEETS
                               December 31, 1998


<TABLE>
<CAPTION>

                                         Liquidating        Continuing
                                           Limited            Limited
                                           Partners          Partners           Total
                                         -----------        -----------      ------------
<S>                                      <C>                <C>              <C>
ASSETS

Cash and cash equivalents                $ 2,417,775        $ 7,094,146      $  9,511,921
Judgment receivable, net                      29,673            103,747           133,420
Net investment in direct financing
  leases                                      -                 314,607           314,607
Residual interest in CRCA                     -                  -                 -
Diverted and other assets, net               176,327            616,511           792,838
Datronic assets, net                          -                  -                 -
                                         -----------        -----------      ------------

                                         $ 2,623,775        $ 8,129,011      $ 10,752,786
                                         ===========        ===========      ============

LIABILITIES AND PARTNERS' EQUITY

Accounts payable and accrued
  expenses                               $    17,395        $    71,160      $     88,555
Lessee rental deposits                         9,434             53,240            62,674
                                         -----------        -----------      ------------

    Total liabilities                         26,829            124,400           151,229

Total partners' equity                     2,596,946          8,004,611        10,601,557
                                         -----------        -----------      ------------

                                         $ 2,623,775        $ 8,129,011      $ 10,752,786
                                         ===========        ===========      ============
</TABLE>


                 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, 1999
                                  (Unaudited)


<TABLE>
<CAPTION>

                                         Liquidating        Continuing
                                           Limited           Limited
                                           Partners          Partners           Total
                                         -----------        ----------       ----------
<S>                                      <C>                <C>              <C>
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
                                            =========       ==========
</TABLE>


                 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, 1998
                                  (Unaudited)

<TABLE>
<CAPTION>

                                         Liquidating        Continuing
                                           Limited           Limited
                                           Partners          Partners          Total
                                         -----------        ----------       ---------
<S>                                      <C>                <C>              <C>
Revenue:
  Lease income                           $     115           $  21,681       $  21,796
  Interest income                           21,942              82,280         104,222
                                         ---------           ---------       ---------

                                            22,057             103,961         126,018
                                         ---------           ---------       ---------

Expenses:
  General Partner's expense
    reimbursement                           34,087             144,896         178,983
  Professional fees                          4,304              22,185          26,489
  Other operating expenses                   1,465               5,153           6,618
  Credit for lease losses                   (2,839)             (9,927)        (12,766)
                                         ---------           ---------       ---------

                                            37,017             162,307         199,324
                                         ---------           ---------       ---------

Net loss                                 $ (14,960)          $ (58,346)      $ (73,306)
                                         =========           =========       =========

Net loss - General Partner               $    (150)          $    (583)      $    (733)
                                         =========           =========       =========

Net loss - Limited Partners              $ (14,810)          $ (57,763)      $ (72,573)
                                         =========           =========       =========

Net loss per limited
   partnership unit                      $   (0.33)          $   (0.37)
                                         =========           =========

Weighted average number of limited
   partnership units outstanding            44,468             155,509
                                         =========           =========
</TABLE>


                 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, 1999
                                  (Unaudited)

<TABLE>
<CAPTION>

                                         Liquidating        Continuing
                                           Limited           Limited
                                           Partners          Partners          Total
                                         -----------        ----------       ----------
<S>                                      <C>                <C>              <C>
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
                                         =========          ==========
</TABLE>


                 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, 1998
                                  (Unaudited)

<TABLE>
<CAPTION>

                                         Liquidating        Continuing
                                           Limited           Limited
                                           Partners          Partners          Total
                                         -----------        ----------       ----------
<S>                                      <C>                <C>              <C>
Revenue:
  Lease income                           $  10,643          $  126,677       $  137,320
  Interest income                           66,200             245,417          311,617
                                         ---------          ----------       ----------

                                            76,843             372,094          448,937
                                         ---------          ----------       ----------

Expenses:
  General Partner's expense
    reimbursement                          124,030             501,155          625,185
  Professional fees                        137,677             494,059          631,736
  Other operating expenses                   7,425              26,460           33,885
  Credit for lease losses                  (99,240)           (459,983)        (559,223)
                                         ---------          ----------       ----------

                                           169,892             561,691          731,583
                                         ---------          ----------       ----------

Net loss                                 $ (93,049)         $ (189,597)      $ (282,646)
                                         =========          ==========       ==========

Net loss - General Partner               $    (930)         $   (1,896)      $   (2,826)
                                         =========          ==========       ==========

Net loss - Limited Partners              $ (92,119)         $ (187,701)      $ (279,820)
                                         =========          ==========       ==========

Net loss per limited
   partnership unit                      $   (2.07)         $    (1.21)
                                         =========          ==========

Weighted average number of limited
   partnership units outstanding            44,468             155,509
                                         =========          ==========
</TABLE>


                 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, 1998*         $   -           $ 2,596,946       $  8,004,611       $ 10,601,557

  Distributions to partners             -            (1,756,395)        (4,618,561)        (6,374,956)
  Net loss                            (2,899)           (70,771)          (216,178)          (289,848)
  Allocation of General
    Partner's Equity                   2,899               (715)            (2,184)              -
                                    ---------       -----------       ------------       ------------

Balance, September 30, 1999         $   -           $   769,065       $  3,167,688       $  3,936,753
                                    =========       ===========       ============       ============
</TABLE>

*  Balances are net of $56,896 and $296,111 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, 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

                                       10

<PAGE>   11
                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                            STATEMENTS OF CASH FLOWS
                  For the nine months ended September 30, 1998
                                  (Unaudited)

<TABLE>
<CAPTION>

                                         Liquidating       Continuing
                                           Limited           Limited
                                           Partners          Partners            Total
                                         -----------       -----------        -----------
<S>                                      <C>               <C>                <C>
Cash flows from operating activities:
  Net loss                               $   (93,049)      $  (189,597)       $  (282,646)
  Adjustments to reconcile net loss
    to net cash used in operating
    activities:
    Credit for lease losses                  (99,240)         (459,983)          (559,223)
    Changes in assets and liabilities:
      Accounts payable and
        accrued expenses                        (707)           (7,470)            (8,177)
      Lessee rental deposits                  (7,515)          (35,039)           (42,554)
                                         -----------       -----------        -----------
                                            (200,511)         (692,089)          (892,600)
                                         -----------       -----------        -----------

Cash flows from investing activities:
  Principal collections on leases             99,240         1,063,324          1,162,564
                                         -----------       -----------        -----------


Net increase (decrease) in cash and
  cash equivalents                          (101,271)          371,235            269,964
Cash and cash equivalents:
  Beginning of year                        2,253,955         5,662,905          7,916,860
                                         -----------       -----------        -----------
  End of third quarter                   $ 2,152,684       $ 6,034,140        $ 8,186,824
                                         ===========       ===========        ===========
</TABLE>


                 See accompanying notes to financial statements

                                       11

<PAGE>   12



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (Unaudited)


NOTE 1 - ORGANIZATION:

Datronic Equipment Income Fund XVIII, L.P., a Delaware Limited Partnership (the
"Partnership"), was formed on April 12, 1989 for the purpose of acquiring and
leasing both high- and low-technology equipment. See Notes 5, 8, and 10 to the
Partnership's financial statements included in the 1998 Form 10-K for a
discussion of the alleged diversion of Partnership assets in 1991 and 1992 and
the subsequent litigation and settlement, change in general partner, new classes
of limited partners established and amendments to the Partnership Agreement that
occurred.

NOTE 2 - BASIS OF FINANCIAL STATEMENTS:

The accompanying financial statements should be read in conjunction with the
Partnership's financial statements included in the 1998 Form 10-K. The financial
information furnished herein is unaudited but in the opinion of Management
includes all adjustments necessary (all of which are normal recurring
adjustments) for a fair presentation of financial condition and results of
operations. See Note 2 to the Partnership's financial statements included in the
1998 Form 10-K.

NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:

In early April 1999, the Partnership made a cash distribution to Limited
Partners who were owners of record on December 31, 1998. This distribution
consisted of two components: (i) the net proceeds from the Price Waterhouse and
Weiss & Company legal actions ($127,000 and $446,000 for Liquidating and
Continuing Limited Partners, respectively), and (ii) residual cash resulting
from the net cash flows of the Partnership ($1,629,000 and $4,173,000 for
Liquidating and Continuing Limited Partners, respectively). The portion of the
distribution attributable to legal action proceeds was allocated to each Limited
Partner based on the number of units held at the rate of $2.87 per unit. See
Note 8 to the Partnership's financial statements included in the 1998 Form 10-K.
Pursuant to the Partnership Agreement, residual cash was allocated to each
Limited Partner based on their proportionate share of total partners' capital
attributable to their Class.

NOTE 4 - RESIDUAL INTEREST IN CRCA:

Residual interest in CRCA represents the Partnership's fully reserved 65% (35%
for Fund XX) interest in the remaining assets of Computer



                                       12

<PAGE>   13



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

Rental Corp. of America, Inc. (CRCA). These assets consisted of a $4.2 million
subordinated note receivable from Personal Computer Rental Corporation (PCR) and
$136,000 of cash. See Note 4 to the Partnership's financial statements included
in the 1998 Form 10-K. In early April 1999, CRCA sold the note to PCR's senior
secured creditor for $250,000. The Partnership's share ($162,500) of the note
proceeds has been credited to the provision for lease losses. The Partnership's
65% share of any residual cash that may remain after payment of expenses will
also be credited to the provision for lease losses when paid to the Partnership.







                                       13

<PAGE>   14


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, 1998
through September 30, 1999. The discussion and analysis of results of operations
is for the three and nine month periods ended September 30, 1999 as compared to
the corresponding periods in 1998. Any capitalized term not defined herein has
been defined or discussed in the Partnership's 1998 Form 10-K.

Liquidity and Capital Resources

During the nine months ended September 30, 1999, Partnership assets continued to
be converted to cash in order to pay Partnership operating expenses and provide
for the ultimate liquidation of the Partnership. During this period, Partnership
cash and cash equivalents decreased by $6,387,000 to $3,125,000 at September 30,
1999 from $9,512,000 at December 31, 1998. This decrease is primarily due to a
distribution paid to Limited Partners of $6,375,000 (see below) and by cash used
in operations of $483,000, partially offset by cash receipts from collections on
leases of $309,000 and $162,000 from the sale of a CRCA note receivable.

In early April 1999, the Partnership made a cash distribution to Limited
Partners who were owners of record on December 31, 1998. This distribution
consisted of two components: (i) the net proceeds from the Price Waterhouse and
Weiss & Company legal actions ($127,000 and $446,000 for Liquidating and
Continuing Limited Partners, respectively), and (ii) residual cash resulting
from the net cash flows of the Partnership ($1,629,000 and $4,173,000 for
Liquidating and Continuing Limited Partners, respectively). The portion of the
distribution attributable to legal action proceeds was allocated to each Limited
Partner based on the number of units held at the rate of $2.87 per unit. See
Note 8 to the Partnership's financial statements included in the 1998 Form 10-K.
Pursuant to the Partnership Agreement, residual cash was allocated to each
Limited Partner based on their 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, cash receipts from leases owned by the Partnership and the
disposition of the remaining Diverted Assets (consisting primarily of an office
building in Schaumburg, Illinois). The lease portfolio is scheduled to be fully
liquidated by May 2000. The general partner expects that the building will be
sold sometime during 2000. The proceeds will be included in the next
distribution to the Limited Partners sometime during 2000. 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




                                       14

<PAGE>   15

Service. The general partner expects this to occur sometime during the year 2000
or early 2001.

Results of Operations

The Partnership had net losses of $160,000 and $290,000 for the three and nine
months ended September 30, 1999 in the aggregate for all classes of partners.
This compares to net losses of $73,000 and $283,000 for the three and nine
months ended September 30, 1998. Differences in operating results between
Liquidating and Continuing Limited Partners are attributable to lease income and
expenses associated with new 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, 1999 and 1998 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. This trend will continue as the Partnership liquidates its
remaining leases.

Interest income:
Interest income includes earnings on invested cash balances. Interest income for
1999 was lower than 1998 because of lower average invested cash balances and
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 include expenses incurred by LRC in
its management of the day-to-day operations of the Partnership.

Professional fees:
Professional fees for the three and nine months ended September 30, 1999 reflect
a decreasing level of professional services required as a result of the decrease
in the Partnership's lease portfolio and related activities. Included in the
1998 amount are fees paid in connection with the litigation against the
Partnership's former accountants.

Credit for lease losses:
This credit reflects recovery 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 Item 1. The 1998
credit includes a $384,000 CRCA-related recovery from the collection of another
note receivable. See Note 4 to the Partnership's financial statements included
in the 1998 Form 10-K.



                                       15

<PAGE>   16


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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










                                       16

<PAGE>   17



PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1998 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.




                                       17


<PAGE>   18


                                   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 4th day of November 1999.





            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/ ROBERT P. SCHAEN
            -----------------------------
            Robert P. Schaen
            Vice-Chairman and Chief Financial Officer,
            Lease Resolution Corporation
            General Partner of
            Datronic Equipment Income Fund XVIII, L.P.






                                       18


<PAGE>   19
                          EXHIBIT INDEX
                          -------------


EXHIBIT NO.              DESCRIPTION
-----------              -----------

   27                    Financial Data Schedule, which is submitted to the
                         Securities and Exchange for information only and not
                         filed.




                                       19