<PAGE>   1

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON D.C. 20549
   
                    ----------------------------------------
                                   FORM 10-QSB/A
    

  X    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
 ---   SECURITIES EXCHANGE ACT OF 1934

       For the quarterly period ended March 30, 1997

                                       OR

       TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
 ---   SECURITIES EXCHANGE ACT OF 1934

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

                         Commission file number: 0-21305

                            Electronic Designs, Inc.
             (Exact name of Registrant as specified in its charter)

           DELAWARE                                        04-3298416
           ----------------------------------------------------------
           (State or other jurisdiction of          (I.R.S. Employer
           incorporation or organization)       Identification Number)

        One Research Drive, Westborough, Massachusetts         01581 
           (Address of Principal Executive Offices)         (Zip Code)

                                 (508) 366-5151
              (Registrant's Telephone Number, Including Area Code)

                     --------------------------------------
              (Former Name, Former Address and Formal Fiscal Year,
                         if Changed Since Last Report)

Check whether 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 past 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 Registrant's Common Stock outstanding on May 2, 1997
was 7,100,929

                                  Page 1 of 8
 
<PAGE>   2


                               
   

PART I:   FINANCIAL INFORMATION (Restated to reflect change in Note 6 to
financial statements and related references in Item 2.) 
    

ITEM 1: FINANCIAL STATEMENTS

<TABLE>
ELECTRONIC DESIGNS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEET

<CAPTION>
                                                                      MARCH 30,     SEPTEMBER 30,
                                                                        1997            1996
<S>                                                                 <C>             <C>
ASSETS
Current asset;
    Cash and cash equivalents                                       $  5,467,000    $  3,290,000
    Accounts receivable, net                                           5,893,000       6,356,000
    lnventories                                                        4,737,000       5,483,000
    Prepaid expenses                                                      97,000         143,000
                                                                    ------------    ------------
                Total current assets                                  16,194,000      15,272,000


Property and equipment, net                                            3,529,000       3,843,000
Other assets                                                              87,000          87,000
Intangible assets, net                                                 1,628,000       1,861,000
                                                                    ------------    ------------
                                                                    $ 21,438,000    $ 21,063,000
                                                                    ============    ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current portion of long-term debt                                $  1,311,000    $    828,000
   Accounts payable                                                    3,907,000       5,329,000
   Accrued expenses and other liabilities                              2,032,000       2,690,000
                                                                    ------------    ------------
              Total current liabilities                                7,250,000       8,847,000

Deferred rent                                                            137,000         130,000
Long-term debt, net of current portion                                 2,552,000       2,939,000
                                                                    ------------    ------------
              Total liabilities                                        9,939,000      11,916,000
                                                                    ------------    ------------

Shareholders' equity:
   Convertible preferred stock; $0.01 par value; 8,000,000 shares
   authorized; 0 and 1,823 shares issued and outstanding at
   March 30, 1997 and September 30, 1996, respectively                      
   Common stock; $0.01 par value; 20,000,000 shares authorized;
   7,090,192 and 6,341,896 shares issued and outstanding at
   March 30, 1997 and September 30, 1996, respectively                    71,000          64,000
   Additional paid in capital                                         26,950,000      26,943,000
   Accumulated deficit                                               (15,522,000)    (17,860,000)
                                                                    ------------    ------------
                Total shareholders' equity                            11,499,000       9,147,000
                                                                    ------------    ------------
                                                                    $ 21,438,000    $ 21,063,000
                                                                    ============    ============
</TABLE>




      See accompanying notes to unaudited consolidated financial statements

                                        2


<PAGE>   3




3. INVENTORIES

<TABLE>
Inventories consisted of the following:
<CAPTION>
                                    MARCH 30,       SEPTEMBER
                                      1997             1996
<S>                                <C>             <C>
Raw materials                      $3,199,000      $3,244,000
Work-in-process                       $35,000       1,241,000
Finished goods                      1,003,000         998,000
                                   ----------      ----------
                                   $4,737,000      $5,483,000
                                   ==========      ==========
</TABLE>

4. NET INCOME PER SHARE

     Net income per share represents earnings per common and common equivalent
share which is determined on the basis of the weighted average number of shares
outstanding during the respective period after giving effect to (i) all options
and warrants using the modified treasury stock method, and (ii) the conversion
of preferred stock using the if-converted method. Primary and fully diluted
earnings per share are the same. 

     In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings Per Share".
This Statement establishes and simplifies standards of computing and presenting
earnings per share and replaces primary and fully diluted earnings per share
with basic and diluted earnings per share.  SFAS 128 will be effective for the
Company's first quarter of fiscal 1998 and requires the restatement of all
previously reported earnings per share data that are presented. Early adoption
of SFAS 128 is not permitted. The Company plans to adopt this pronouncement as
required.
 
5. SHAREHOLDERS' EQUITY

     During the six month period ended March 30,1997, 729,200 shares of common
stock were issued in conversion of 1,823 shares of preferred stock.

     In December 1996, the Company, as part of a service agreement with an
outside firm, issued warrants to purchase 45,000 shares of common stock at an
exercise price of $3.875 per share which vest upon achievement of specified
goals. These warrants expire in December 1999.

6. SUBSEQUENT EVENTS

   
     On May 13, 1997 the Company announced the decision to divest its
Crystallume Diamond Technology Division located in Santa Clara, California. At
March 30, 1997 the Crystallume division had total assets of $2.2 million. The
division recorded revenues of $209,000 in the current quarter and $357,000 for
the six months of fiscal 1997 as compared to $325,000 and $663,000 in the same
periods in the prior year. The operating loss for the second quarter and first
six months of fiscal 1997 was $225,000 nad $552,000, respectively, compared to
an operating loss of $152,000 and $1,446,000 for the same periods in fiscal
1996. A restructuring charge of $590,000 is included in the operating loss
recorded for the six months of the prior fiscal year.
    



                                      3


                                       

<PAGE>   4




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

     This Form 10-QSB contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The Company's actual results could differ materially from
those set forth in the forward-looking statements. Certain factors that might
cause such a difference are discussed in the section entitled "Certain Factors
Affecting Future Operating Results" beginning on page 9 of this Form 10-QSB.

     Since its inception in 1984 through October 10, 1995, Electronic Designs,
Inc. (formerly Crystallume) (the "Company") had been primarily engaged in
research and development related to diamond coatings using a process called
chemical vapor deposition ("CVD").

     Effective October 10, 1995, the Company acquired all of the outstanding
stock of Electronic Designs, Inc. ("EDI-MA") in a purchase transaction (the
"Acquisition"). EDI-MA manufactured high density memory components used in
commercial and military systems, and also designed and manufactured flat panel
display units suitable for avionics and other specialty applications using
active matrix liquid crystal displays. As a result of the Acquisition, the
results of operations and cash flows of EDI-MA are included in the results of
operations and cash flows of the Company from the date of the Acquisition.
             
     In March 1996, the Company changed its state of incorporation from
California to Delaware and changed its name to Electronic Designs, Inc.

   
     On May 13, 1997 the Company announced the decision to divest its
Crystallume Diamond Technology Division located in Santa Clara, California. At
March 30, 1997 the Crystallume division had total assets of $2.2 million. The
division recorded revenues of $209,000 in the current quarter and $357,000 for
the six months of fiscal 1997 as compared to $325,000 and $663,000 in the same
periods in the prior year. The operating loss for the second quarter and first
six months of fiscal 1997 was $225,000 and $552,000, respectively, compared to
an operating loss of $152,000 and $1,446,000 for the same periods in fiscal
1996. A restructuring charge of $590,000 is included in the operating loss
recorded for the six months of the prior fiscal year.
    


RESULTS OF OPERATIONS

Revenues:

     Revenues decreased 36% to $9,925,000 in the second quarter of fiscal 1997
from $15,564,000 in the same period in fiscal 1996. For the six month period,
revenues decreased 28% to $20,946,000 in the first half of fiscal 1997 from
$29,194,000 in the same period in fiscal 1996. These decreases in revenues were
due in part to declining average selling prices for the Company's memory
products reflecting decreases in the cost of memory chips which are the primary
raw material. The Company passed a substantial part of those cost savings
through to its customers. Unit volumes for the memory products increased in the
current quarter and first six months of fiscal 1997 as compared to the same
periods in fiscal 1996. Partially offsetting the decreases in memory product
sales were increases in display product sales.

     The Company derives a substantial portion of its revenues and earnings from
sales to defense contractors and subcontractors of memory products manufactured
in compliance with military specifications. Trends in the defense industry
include reductions in spending from year to year and the movement toward the
purchase of commercial off-the-shelf ("COTS") products rather than those
manufactured in compliance with specified military standards. To date, these
changes have not had a materially adverse effect on the Company's results due to
increased demand resulting from upgrading of existing military systems and the
slow rate of adoption of the COTS program.

Gross profit:

     Gross profit for the second quarter of fiscal 1997 was $3,959,000 compared 
to $4,636,000 in the same period of fiscal 1996. Gross profit for the first six
months of fiscal 1997 was $8,218,000 compared to $7,611,000 in the same period
of fiscal 1996. Gross profit for the six month period ended March 31, 1996
included a nonrecurring charge of $1,100,000 related to the revaluation, to
their estimated fair value, of inventories acquired as part of the Acquisition.
This amount was charged to cost of revenues in the first quarter of fiscal 1996
as the acquired inventories were sold. Gross profit as a percentage of revenues
("gross margin") increased to 39.9% and 39.2% in the second quarter and six
months of fiscal 1997, respectively, from 29.8 and 26.1% (or 29.8% excluding the
effect of the



                                      4
<PAGE>   5





nonrecurring charge of $1,100,000) in the same periods in the prior year. Gross
margin increased as a result of the higher mix of military memory products and
display products and the benefit of reductions in purchase prices of memory
devices. As a result of the rapidly declining cost of memory devices, the
Company has been able to increase its gross margins on memory products in the
short term. Due to competitive forces, the Company believes that, as prices
stabilize, gross margins may decline.

     The Company purchases its semiconductor components from a small number of
large suppliers, including foreign suppliers who are regularly the target of
threatened or pending trade disputes and sanctions which, if realized, could
affect the ability of the Company to obtain critical raw materials. The Company
has not been materially adversely affected by this situation in the past and
does not anticipate experiencing any material adverse effect in the future. The
Company does not have specific contractual arrangements with its suppliers.
While the Company believes it has good relationships with its vendors, in the
event that product availability becomes more limited in the future, there is no
assurance that these sources of supply will continue under terms that permit the
Company to compete effectively in its targeted markets.

Operating expenses:

     Research and development expenses in the second quarter and six month
period of fiscal 1997 decreased 2% and 11% to $636,000 and $1,253,000,
respectively, from $648,000 and $1,408,000 in the respective periods in fiscal
1996 due to reductions in headcount and a redirection of diamond development
efforts.

     Selling, general and administrative expenses decreased by $323,000 and 
$494,000 or 14% and l1%, in the first quarter and six months, respectively, in
fiscal 1997 from $2,315,000 and $4,544,000 in the respective periods in fiscal
1996. The majority of these decreases resulted from lower commissions paid to
outside sales representatives in fiscal 1997 due to the decreases in revenues
and lower legal and accounting fees.

     The restructuring charge of $590,000 in fiscal 1996 relates primarily to
severance costs associated with restructuring activities at the Company's
diamond operations to eliminate duplicative managerial and administrative
positions and to consolidate the Company's executive offices in Westborough,
Massachusetts.
   
Other income (expense):

     Interest income in the current quarter was $60,000 and $109,000 for the six
months of fiscal 1997 as compared to $2,000 and $47,000 in the same periods in
the prior year due to higher cash and cash equivalent balances in fiscal 1997.
Interest expense decreased $186,000 and $325,000 in the second quarter and first
six months of fiscal 1997 to $88,000 and $193,000, respectively, from $274,000
and $518,000 in the same periods in fiscal 1996 as a result of repayment of bank
loans incurred for the Acquisition.

LIQUIDITY AND CAPITAL RESOURCES
              
     At March 30, 1997, cash and cash equivalents were $5,467,000 representing
an increase of $2,177,000 from September 30, 1996.

     In the first half of fiscal 1997, the Company generated $2,413,000 of cash
from operating activities, primarily due to the Company's net income,
depreciation and amortization and reduction in inventories and accounts
receivable offset by declines in accounts payable and accrued expenses. This
compared to a use of $1,803,000 in the same period in fiscal 1996, primarily as
a result of an increase in accounts receivable and decrease in accrued expenses
which more than offset net income, depreciation and amortization, a reduction
in inventories and an increase in accounts payable in the first half of fiscal
1997. The Company invested $336,000 of cash in capital equipment expenditures.
The Company generated $100,000 from financing activities in the first half of
fiscal 1997 as a result of the renegotiation of its bank facility which was
offset by regular repayments of its loans and lease facilities.

     In connection with the Acquisition in October 1995, the Company entered
into, and in October 1996 amended and restated, a Loan and Security Agreement
(the "Agreement") with a bank. Under the terms of the Agreement, the Company is
allowed to borrow (i) up to $3,500,000 on the form of a term loan (ii) up to
$6,000,000




                                       5

<PAGE>   6



under a revolving credit facility (including up to $5,000,000 for letters of
credit) (the "Revolver") and (iii) up to $1,500,000 in the form of an equipment
loan. At March 30, 1997, $3,208,000 was outstanding under the term loan and
letters of credit in the aggregate amount of $100,000 were outstanding under the
Revolver. No amounts were outstanding under the equipment loan at March 30,
1997.

     The Company believes that it is in compliance with all material covenants
under the Agreement as of March 30, 1997. Borrowings under the Revolver are
limited to a borrowing base which is calculated on a formula which includes
domestic and foreign accounts receivable and certain inventories, less amounts
outstanding under the term loan and letters of credit. Under the terms of the
Agreement, as amended, availability under the Revolver at March 30, 1997 was
limited to $2,039,952.

     The Company anticipates that the combination of its current cash balance,
accounts receivable balance, Revolver, equipment loan facility and its cash flow
from operations will be sufficient to meet the Company's liquidity requirements
for the next 12 months.

CERTAIN FACTORS AFFECTING FUTURE OPERATING RESULTS
  
     This Form 10-QSB contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The Company's actual results could differ materially from
those set forth in the forward-looking statements. Certain factors that might
cause such a difference include the following: the Company's ability to develop
new products; the cyclicality of product supply and demand and pricing in the
Company's targeted markets,particularly for its commercial memory products; the
rapidity of technological change and highly competitive nature of the
semiconductor packaging industry; competition from larger companies in the
commercial module market; the Comany's ability to divest its diamond operations
for proceeds sufficient to cover its investment; the rapidity of the display
transition from cathode ray tubes ("CRT") to active matrix liquid crystal
displays ("AMLCD"); dependence on contracts with defense related companies for
its memory and display products; the movement toward the purchase of ("COTS")
products rather than those manufactured as compliant to specified military
standards; regulatory, political, economic and currency risks associated with
international sales which accounted for approximately 30% of net sales in fiscal
1996; risks related to the financial condition and success of the Company's
customers, the Company's customers' products and the general economy; the
likelihood that steep declines in sales, pricing and gross margins of commercial
memory products will occur toward the end of a product's life cycle; absence of
firm contractual relationships with certain key suppliers of significant raw
materials for its memory and display products; the Company's dependence on key
personnel and ability to attract and retain qualified management, manufacturing,
quality assurance, engineering, marketing, sales and support personnel; the
possibility that subsequent changes in ownership may limit the Company's use of
net operating loss and research and development tax credit carryforwards and
trends in outsourcing.
                                                    


                                       6



 

<PAGE>   7
PART II. OTHER INFORMATION

ITEM 3. DELETED IN ITS ENTIRETY

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (RESTATED)

        (a) On February 26, 1997, the Company held its Annual Shareholders'
        Meeting (the "Meeting").

   
        (b) Norman T. Hall and Thomas A. Schultz were elected as directors of
        the Company to serve until the 2000 Annual Meeting of Shareholders and 
        until their respective successors are duly elected and qualified or 
        until their earlier resignation or removal. The other three directors,
        Donald F. McGuinness, Frank D. Edwards, and Thomas J. Toy are
        continuing as directors and their terms expire in 1999, 1998, and 1998,
        respectively.

        (c) The matters described below were voted upon at the Meeting, and the
        results of the votes for each matter are listed below.
    

   

           1.   To elect Norman T. Hall and Thomas A. Schultz, as directors of
                the Company to serve until the 2000 Annual Meeting of
                Shareholders and until their respective successors are duly
                elected and qualified or until their earlier resignation or
                removal.
                                        Votes for       Withheld
                                        ---------       --------
                  Norman T. Hall        5,775,010        31,085 
                  Thomas A Schultz      5,744,929        31,166

           2.   To ratify the appointment of Price Waterhouse LLP to serve as
                independent accountants for the Company for the fiscal year
                ending September 30, 1997.
                  
                  FOR           AGAINST         ABSTAIN         NON-VOTES
                  ---           -------         -------         ---------
                  5,786,545     10,800           8,750             0 

    
   

ITEM 5. OTHER INFORMATION (RESTATED)

        As discussed in the notes to the financial statements under Subsequent
Events, the Company announced its decision on May 13, 1997 to divest its
Crystallume Diamond Technology Division. At March 30, 1997, the division had
total assets of $2.2 million. The division recorded revenues of $209,000 in the
current quarter and $357,000 for the six months of fiscal 1997 as compared to
$325,000 and $663,000 in the same periods in fiscal 1996. The operating loss
for the second quarter and the first six months of fiscal 1997 was $225,000 and
$552,000, respectively, compared to an operating loss of $152,000 and
$1,446,000 for the same periods in fiscal 1996. A restructuring charge of
$590,000 is included in the operating loss recorded for the first six months of
the prior fiscal year.
    

   
        On May 12, 1997, the Board of Directors authorized the repurchase of up
to 350,000 shares of the Company's common stock. On that date, the Company had
7,100,929 shares of common stock outstanding.
    


                                      7


<PAGE>   8



                                   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.

                                       Electronic Designs, Inc. (Registrant)
                                       ----------------------------------------
   

Dated: May 22, 1997
                                       /s/ Frank D. Edwards
                                       ----------------------------------------
                                       Frank D. Edwards, Senior Vice President
                                       and Chief Financial Officer (Principal 
                                       Financial and Accounting Officer and Duly
                                       Authorized Officer)
    










                                      8