<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    FORM 10-Q

 X       Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
---      Exchange Act of 1934

                For the quarterly period ended September 30, 1996

                                       OR

         Transition Report Pursuant to Section 13 or 15(d) of the Securities
---      Exchange Act of 1934

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

                         Commission file number 0-22726

                              SAFESKIN CORPORATION
             (Exact name of registrant as specified in its charter)


              Florida                                      59-2617525
    (State or other jurisdiction                      (IRS Employer ID No.)
 of incorporation or organization)


               12671 High Bluff Drive, San Diego, California 92130
                    (Address of principal executive offices)

                                 (619) 794-8111
              (Registrant's telephone number, including area code)


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

         Yes   X           No
              ---             ---

         Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

              Class                             Outstanding at October 31, 1996

Common Stock, par value $0.01 per share                   12,862,374
<PAGE>   2
                              SAFESKIN CORPORATION

                                      INDEX
<TABLE>
<CAPTION>
                                                                                       Page Number
                                                                                       -----------
<S>                                                                                        <C>
PART I:           Financial Information.........................................             1


ITEM 1.           Financial Statements..........................................             1


                  Condensed Consolidated Balance Sheets at                                   2
                  September 30, 1996 and December 31, 1995......................

                  Condensed Consolidated Statements of Operations
                  for the three months ended September 30, 1996                              3
                  and 1995......................................................


                  Condensed Consolidated Statements of Operations
                  for the nine months ended September 30, 1996
                  and 1995......................................................             4


                  Condensed Consolidated Statements of Cash Flows
                  for the nine months ended September 30, 1996
                  and 1995......................................................             5

                  Notes to Condensed Consolidated Financial Statements                       6


ITEM 2.           Management's Discussion and Analysis of Financial
                  Condition and Results of Operations...........................             7



PART II:          Other Information.............................................            16


ITEM 6.           Exhibits and Reports on Form 8-K..............................            16


                  Signatures....................................................            17
</TABLE>
<PAGE>   3
                          PART I: FINANCIAL INFORMATION


ITEM 1.    Financial Statements


<TABLE>
<CAPTION>
           INDEX                                                                                        PAGE
           -----                                                                                        ----
<S>                                                                                                       <C>
           Condensed Consolidated Balance Sheets at September 30, 1996
           and December 31, 1995...........................................................................2

           Condensed Consolidated Statements of Operations for
           the three months ended September 30, 1996 and 1995..............................................3

           Condensed Consolidated Statements of Operations for
           the nine months ended September 30, 1996 and 1995...............................................4

           Condensed Consolidated Statements of Cash Flows for the
           nine months ended September 30, 1996 and 1995...................................................5

           Notes to Condensed Consolidated Financial Statements............................................6
</TABLE>

                                      -1-
<PAGE>   4
                              SAFESKIN CORPORATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                    SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
                                                              SEPTEMBER 30,      DECEMBER 31,
                                                                  1996               1995
                                                              (UNAUDITED)
                                                             --------------     --------------
<S>                                                           <C>                <C>
           ASSETS

Current assets:
     Cash and cash equivalents ........................       $  8,270,168       $  2,086,972
     Accounts receivable, net .........................         16,628,786         17,521,996
     Inventory ........................................         24,022,294         18,021,414
     Other current assets .............................          5,066,756          2,488,855
                                                              ------------       ------------
           Total current assets .......................         53,988,004         40,119,237
Property, plant and equipment, net ....................         53,027,841         42,737,526
Deferred taxes and other assets .......................          1,682,173          1,818,030
                                                              ------------       ------------
           Total assets ...............................       $108,698,018       $ 84,674,793
                                                              ============       ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Accounts payable .................................       $  4,868,666       $  6,318,089
     Accrued liabilities ..............................          9,226,462          5,745,663
                                                              ------------       ------------

           Total current liabilities ..................         14,095,128         12,063,752
                                                              ------------       ------------

Long-term debt ........................................               --            2,750,000
Other long-term liabilities............................            699,617               --
                                                              ------------       ------------
           Total liabilities ..........................         14,794,745         14,813,752
Commitments and contingencies
Shareholders' equity:
     Preferred stock; $.01 par value; 10,000,000 shares
          authorized and no shares outstanding ........               --                 --
     Common stock; $.01 par value; 40,000,000 shares
           authorized; 12,854,224 shares
           and 12,480,531 shares outstanding ..........            128,542            124,805
     Additional paid-in-capital .......................         34,821,779         31,013,995
     Deferred compensation ............................               --           (1,012,895)
     Foreign currency translation adjustment ..........            876,064            348,851
     Retained earnings ................................         58,076,888         39,386,285
                                                              ------------       ------------

           Total shareholders' equity .................         93,903,273         69,861,041
                                                              ------------       ------------

           Total liabilities and shareholders' equity .       $108,698,018       $ 84,674,793
                                                              ============       ============
</TABLE>


The accompanying notes are an integral part of these condensed financial
statements.

                                       -2-
<PAGE>   5
                              SAFESKIN CORPORATION

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                1996              1995
                                                                            -----------       -----------
<S>                                                                         <C>               <C>
Net sales ...........................................................       $37,492,495       $32,440,712

Cost of goods sold ..................................................        21,022,797        20,909,489
                                                                            -----------       -----------

            Gross profit ............................................        16,469,698        11,531,223
                                                                            -----------       -----------

Operating expenses:
     Selling ........................................................         4,999,263         4,209,883
     Research and development .......................................           526,471           420,200
     General and administrative .....................................         2,891,152         1,699,668
                                                                            -----------       -----------

            Total operating expenses ................................         8,416,886         6,329,751
                                                                            -----------       -----------

            Income from operations ..................................         8,052,812         5,201,472

Interest expense ....................................................             8,744            69,997

Other expense (income), net .........................................            75,785           291,722
                                                                            -----------       -----------

Income before income tax provision ..................................         7,968,283         4,839,753

Income tax provision ................................................           916,354           713,151
                                                                            -----------       -----------

Net income ..........................................................       $ 7,051,929       $ 4,126,602
                                                                            ===========       ===========

Per share amounts:
     Earnings per share of common stock and common stock equivalents:
                 Primary ............................................       $      0.50       $      0.32
                 Fully diluted ......................................              0.50              0.32
Weighted average number of shares of common stock and common stock
     equivalents outstanding:
                 Primary ............................................        14,118,134        12,939,760
                 Fully diluted ......................................        14,118,134        12,939,760
</TABLE>



The accompanying notes are an integral part of these condensed financial
statements.

                                       -3-
<PAGE>   6
                              SAFESKIN CORPORATION

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                1996               1995
                                                                            ------------       ------------
<S>                                                                         <C>                <C>
Net sales ...........................................................       $106,534,022       $ 84,277,972

Cost of goods sold ..................................................         62,576,360         55,281,912
                                                                            ------------       ------------

            Gross profit ............................................         43,957,662         28,996,060
                                                                            ------------       ------------

Operating expenses:
     Selling ........................................................         12,746,953         11,617,226
     Research and development .......................................          1,404,302            977,751
     General and administrative .....................................          7,968,915          4,275,230
                                                                            ------------       ------------

            Total operating expenses ................................         22,120,170         16,870,207
                                                                            ------------       ------------

            Income from operations ..................................         21,837,492         12,125,853

Interest expense ....................................................            118,218            107,417

Other expense (income), net .........................................            200,350           (191,267)
                                                                            ------------       ------------

Income before income tax provision ..................................         21,518,924         12,209,703

Income tax provision ................................................          2,828,321          1,850,885
                                                                            ------------       ------------

Net income ..........................................................       $ 18,690,603       $ 10,358,818
                                                                            ============       ============

Per share amounts:
     Earnings per share of common stock and common stock equivalents:
                 Primary ............................................       $       1.36       $       0.82
                 Fully diluted ......................................               1.34               0.82
Weighted average number of shares of common stock and common stock
     equivalents outstanding:
                 Primary ............................................         13,739,715         12,705,604
                 Fully diluted ......................................         13,984,492         12,705,604
</TABLE>



The accompanying notes are an integral part of these condensed financial
statements.

                                       -4-
<PAGE>   7
                              SAFESKIN CORPORATION

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                  1996                1995
                                                              ------------        ------------
<S>                                                           <C>                 <C>
Cash flows from operating activities:
     Net income .......................................       $ 18,690,603        $ 10,358,818
     Adjustments to reconcile net income to cash
          provided by operating activities:
          Depreciation and amortization ...............          4,077,575           2,633,748
          Loss on sale of property, plant and equipment             24,888               6,375
          Amortization of deferred compensation .......            152,469                --
     Changes in operating assets and liabilities:
          (Increase) decrease in:
               Accounts receivable ....................            865,926          (4,292,198)
               Inventory ..............................         (6,047,926)         (5,255,232)
               Other assets ...........................         (2,456,545)           (549,519)
          Increase in:
               Accounts payable and accrued liabilities          2,683,067           5,973,542
                                                              ------------        ------------
          Net cash provided by operating activities ...         17,990,057           8,875,534
                                                              ------------        ------------

Cash flows from investing activities:
     Purchase of property, plant and equipment ........        (14,331,379)        (12,536,490)
     Proceeds from sale of equipment ..................               --                16,750
                                                              ------------        ------------
          Net cash used by investing activities .......        (14,331,379)        (12,519,740)
                                                              ------------        ------------

Cash flows from financing activities:
     (Decrease) increase in long-term debt ............         (2,750,000)          4,750,000
     Proceeds from issuance of common stock ...........          4,671,947             170,321
                                                              ------------        ------------
          Net cash provided by financing activities ...          1,921,947           4,920,321
                                                              ------------        ------------

Effect of exchange rate changes on cash ...............            602,571            (408,265)
                                                              ------------        ------------
Net increase in cash and cash equivalents .............          6,183,196             867,850
Cash and cash equivalents at beginning of period ......          2,086,972           4,581,417
                                                              ------------        ------------
Cash and cash equivalents at end of period ............       $  8,270,168        $  5,449,267
                                                              ============        ============
</TABLE>


The accompanying notes are an integral part of these condensed financial
statements.

                                       -5-
<PAGE>   8
                              SAFESKIN CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

         In the opinion of the Company, the accompanying unaudited condensed
         consolidated financial statements contain all adjustments, which
         consist only of normal, recurring adjustments necessary for a fair
         presentation of results for the periods indicated. The results of any
         interim period are not necessarily indicative of results for the full
         year. Certain information and footnote disclosures normally included in
         financial statements prepared in accordance with generally accepted
         accounting principles have been condensed or omitted. These condensed
         consolidated financial statements should be read in conjunction with
         the consolidated financial statements and related notes thereto for the
         year ended December 31, 1995. The December 31, 1995 condensed
         consolidated balance sheet was derived from audited financial
         statements, but does not include all disclosures required by generally
         accepted accounting principles.

         Inventories at September 30, 1996 consisted of $1,921,000, $138,000 and
         $21,963,000 for raw materials, work in process and finished goods,
         respectively. At December 31, 1995, inventories consisted of
         $2,005,000, $132,000 and $15,884,000 for raw materials, work in process
         and finished goods, respectively.

         On November 14, 1996, the Company announced that it authorized a
         two-for-one stock split of its Common Stock to be effective in the form
         of a stock dividend which will be distributed on January 2, 1997 to
         shareholders of record at the close of business on November 29, 1996.
         The holders of the Company's Common Stock will receive a stock dividend
         at the rate of one share of Common Stock for each share of Common Stock
         owned. The effects of this stock split have not been reflected in the
         financial statements contained herein.

                                      -6-
<PAGE>   9
ITEM 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations.

The following discussion and analysis should be read in conjunction with the
condensed consolidated financial statements and related notes thereto.

GENERAL

The Company's net sales have grown substantially over the past several years.
The Company attributes the growth in net sales during this period principally to
growth in markets for its products, the introduction of new products and
increased market penetration due to the development of sales and marketing
programs. The Company introduced lightly powdered hypoallergenic medical gloves,
powder-free hypoallergenic medical gloves, HypoClean(R) powder-free
hypoallergenic gloves, powder-free hypoallergenic latex surgical gloves and
Scientific/Industrial Nitrile gloves in 1989, 1990, 1992, 1994 and 1995,
respectively. In the fourth quarter of 1996, the Company formally launched its
Safeskin 2000 powder-free latex surgical glove which was developed through the
use of computer-aided design and a new rapid prototyping technique known as
laminated object manufacturing. Although the Company has continued to develop
new products and expects to do so in the future, no assurance can be given that
the new products will be accepted in the marketplace or will have similar growth
rates.

The Company's net sales are derived from the sale of finished products, net of
allowable rebates which are provided to distributors for their sales of the
Company's products in specific volumes to specified end user customers. Cost of
goods sold includes all costs to manufacture the finished product plus related
costs associated with ocean freight, customs duty and warehousing. Selling
expenses include all salaries for sales and marketing staffs together with other
related expenses such as sales commissions, travel costs, trade shows,
advertising and delivery expenses. Research and development expenses include
salaries for research and development staffs as well as expenses such as
consulting, product testing and travel costs. General and administrative
expenses include salaries for executives and administrative staffs, together
with related expenses such as travel costs, insurance, facilities costs and
professional fees. Income tax expenses are substantially less than statutory
rates as a result of the tax free status of the Company's foreign manufacturing
operations.

The Company's medical glove distributors do not bill third-party reimbursement
sources separately for purchases of the Company's gloves. Consequently, the
timing and effect of third-party payments to hospitals and clinics does not have
a direct material effect on the Company's operations and liquidity.

                                      -7-
                                                                               
<PAGE>   10
On November 14, 1996, the Company announced that it authorized a two-for-one
stock split of its Common Stock to be effective in the form of a stock dividend
which will be distributed on January 2, 1997 to shareholders of record at the
close of business on November 29, 1996. The holders of the Company's Common
Stock will receive a stock dividend at the rate of one share of Common Stock for
each share of Common Stock owned. The effects of this stock split have not been
reflected in the financial statements contained herein.
                                                                               
                                      -8-
<PAGE>   11




THREE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995

Net sales for the three months ended September 30, 1996 were $37,492,000 which
represents a 15.6% increase over net sales of $32,441,000 for the same period in
1995. The predominant causes for the sales growth were an increase in unit
volumes sold and the shift in product mix to higher priced powder-free gloves in
the 1996 period as compared to the 1995 period.

Cost of goods sold increased less than 1% from $20,910,000 for the three month
period ended September 30, 1995 to $21,022,000 for the three months ended
September 30, 1996. As a percentage of net sales, cost of goods sold decreased
from 64.5% for the three months ended September 30, 1995 to 56.1% for the same
period in 1996. Cost of goods sold reflects the favorable impact of U.S. import
legislation ("Generalized System of Preferences" or "GSP") reinstated by
President Clinton in the third quarter of 1996 retroactive to August 1, 1995. As
a result of this legislation, the Company has estimated a cumulative customs
duty refund of approximately $1,175,000 for gloves imported from its
manufacturing facilities during the period since the program expired on July 31,
1995. The new GSP term, under which imports from Thailand and certain imports
from Malaysia are currently eligible, runs through May 31, 1997. The favorable
impact of this refund was partially offset by a $650,000 charge in the third
quarter relating to the write off of inventory as a result of the introduction
of the new Safeskin 2000 powder-free latex surgical glove. Excluding the customs
duty refund and the write off of inventory, cost of goods sold as a percentage
of net sales for the three months ended September 30, 1996 would have been
58.0%. This decrease in cost of goods sold as a percentage of net sales was
principally attributable to improved operating efficiencies in the Thailand
facility coupled with lower latex prices during the 1996 period. As a result of
the above, gross profits increased 42.8% from $11,531,000 for the three months
ended September 30, 1995 to $16,470,000 for the three months ended September 30,
1996.

Selling expenses increased 18.8% from $4,210,000 for the three months ended
September 30, 1995 to $4,999,000 for the three months ended September 30, 1996.
As a percentage of net sales, selling expenses increased slightly from 13.0% for
the three months ended September 30, 1995 to 13.3% for the same period in 1996.
The Company has accrued approximately $523,000 of non-recurring net severance
charges relating to a former executive. Excluding such charges, selling expenses
as a percentage of net sales would have been 11.8%. This represents a decrease
in selling expenses as a percentage of net sales from the prior period. The
decrease pertains primarily to overall selling expenses such as salaries, travel
costs and delivery expenses remaining comparable to the prior year while sales
levels have significantly increased over the prior year.

                                      -9-
<PAGE>   12
Research and development expenses increased 25.3% from $420,000 for the three
months ended September 30, 1995 to $527,000 for the three months ended September
30, 1996. As a percentage of net sales, these expenses increased from 1.3% for
the three months ended September 30, 1995 to 1.4% for the three months ended
September 30, 1996.

General and administrative expenses increased 70.1% from $1,699,000 for the
three months ended September 30, 1995 to $2,891,000 for the three months ended
September 30, 1996. As a percentage of net sales, general and administrative
expenses increased from 5.2% for the 1995 period to 7.7% for the 1996 period.
The increase in general and administrative expenses as a percentage of net sales
pertains primarily to increased costs associated with the Information Technology
Department (which was established in the second quarter of fiscal year 1995) to
support the continued growth of the Company. Additional factors include
increased facilities costs and consulting fees in fiscal 1996.

Income from operations increased 54.8% from $5,202,000 for the three months
ended September 30, 1995 to $8,053,000 for the three months ended September 30,
1996. Operating margins increased from 16.0% in the 1995 period to 21.5% in the
1996 period.

Interest expense decreased from $70,000 for the three months ended September 30,
1995 to $9,000 for the three months ended September 30, 1996. The decrease in
interest expense resulted from decreased debt outstanding in the 1996 period.

Other expense (income), net, decreased from $292,000 of other expense for the
three months ended September 30, 1995 to $76,000 of other expense for the three
months ended September 30, 1996. The decrease in other expense was primarily due
to the reclassification of scrap sale proceeds totaling approximately $264,000
as a reduction of cost of goods sold which occurred in the third quarter of
fiscal 1995.

Income taxes increased from $713,000 for the three months ended September 30,
1995 to $916,000 for the three months ended September 30, 1996. The income tax
provisions recorded in both 1995 and 1996 remain less than statutory rates due
to the foreign tax free status.

Net income increased 70.9% from $4,127,000 for the three months ended September
30, 1995 to $7,052,000 for the three months ended September 30, 1996 due to the
foregoing factors.

                                      -10-
<PAGE>   13
NINE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO NINE MONTHS
ENDED SEPTEMBER 30, 1995

Net sales for the nine months ended September 30, 1996 were $106,534,000 which
represents a 26.4% increase over net sales of $84,278,000 for the same period in
1995. The predominant causes for the sales growth were an increase in unit
volumes sold and the shift in product mix to higher priced powder-free gloves in
the 1996 period as compared to the 1995 period.

Cost of goods sold increased 13.2% from $55,282,000 for the nine month period
ended September 30, 1995 to $62,576,000 for the nine months ended September 30,
1996. As a percentage of net sales, cost of goods sold decreased from 65.6% for
the nine months ended September 30, 1995 to 58.7% for the same period in 1996.
Cost of goods sold reflects the favorable impact of U.S. import legislation
("Generalized System of Preferences" or "GSP") reinstated by President Clinton
in the third quarter of 1996 retroactive to August 1, 1995. As a result of this
legislation, the Company has estimated a cumulative customs duty refund of
approximately $1,175,000 for gloves imported from its manufacturing facilities
during the period since the program expired on July 31, 1995. The new GSP term,
under which imports from Thailand and certain imports from Malaysia are
currently eligible, runs through May 31, 1997. The favorable impact of this
refund was partially offset by a $650,000 charge in the third quarter relating
to the write off of inventory as a result of the introduction of the new
Safeskin 2000 powder-free latex surgical glove. Excluding the customs duty
refund and the write off of inventory, cost of goods sold as a percentage of net
sales for the nine months ended September 30, 1996 would have been 59.4%. This
decrease in cost of goods sold as a percentage of net sales was principally
attributable to improved operating efficiencies in the Thailand facility during
the 1996 period. As a result of the above, gross profits increased 51.6% from
$28,996,000 for the nine months ended September 30, 1995 to $43,958,000 for the
nine months ended September 30, 1996.

Selling expenses increased 9.7% from $11,617,000 for the nine months ended
September 30, 1995 to $12,747,000 for the nine months ended September 30, 1996.
As a percentage of net sales, selling expenses decreased from 13.8% for the nine
months ended September 30, 1995 to 12.0% for the same period in 1996. The
Company has accrued approximately $523,000 of non-recurring net severance
charges relating to a former executive. Excluding such charges, selling expenses
as a percentage of net sales would have been 11.4%. The decrease pertains
primarily to overall selling expenses such as salaries, travel costs and
delivery expenses remaining comparable to the prior year while sales levels have
significantly increased over the prior year.

Research and development expenses increased 43.6% from $978,000 for the nine
months ended September 30, 1995 to $1,404,000 for the nine months ended
September 30, 1996. As a percentage of net sales, these expenses increased from
1.2% for the nine months ended September 30, 1995 to 1.3% for the nine months
ended September 30, 1996.

                                      -11-
<PAGE>   14
General and administrative expenses increased 86.4% from $4,275,000 for the nine
months ended September 30, 1995 to $7,969,000 for the nine months ended
September 30, 1996. As a percentage of net sales, general and administrative
expenses increased from 5.1% for the 1995 period to 7.5% for the 1996 period.
The increase in general and administrative expenses as a percentage of net sales
pertains primarily to increased costs associated with the Information Technology
Department (which was established in the second quarter of fiscal year 1995) to
support the continued growth of the Company. Additional factors include
increased facilities costs and increased consulting fees in fiscal 1996.

Income from operations increased 80.1% from $12,126,000 for the nine months
ended September 30, 1995 to $21,838,000 for the nine months ended September 30,
1996. Operating margins increased from 14.4% in the 1995 period to 20.5% in the
1996 period.

Interest expense increased slightly from $107,000 for the nine months ended
September 30, 1995 to $118,000 for the nine months ended September 30, 1996.

Other expense (income), net, increased from $191,000 of other income for the
nine months ended September 30, 1995 to $201,000 of other expense for the nine
months ended September 30, 1996. The increase in other expense was substantially
due to losses experienced from foreign currency transactions in the Company's
European subsidiaries in the nine months ended September 30, 1996 compared to
gains from foreign currency transactions experienced in the prior year.

Income taxes increased from $1,851,000 for the nine months ended September 30,
1995 to $2,828,000 for the nine months ended September 30, 1996. The income tax
provisions recorded in both 1995 and 1996 remain less than statutory rates due
to the foreign tax free status.

Net income increased 80.4% from $10,359,000 for the nine months ended September
30, 1995 to $18,691,000 for the nine months ended September 30, 1996 due to the
foregoing factors.

                                      -12-
<PAGE>   15
LIQUIDITY AND CAPITAL RESOURCES

The Company's operations generated approximately $17,990,000 and $8,876,000 of
cash during the nine months ended September 30, 1996 and 1995, respectively.
Further, during the nine months ended September 30, 1996 and 1995, the Company
acquired capital assets of approximately $14,331,000 and $12,536,000,
respectively, primarily all of which were for the expansion of the Company's
foreign manufacturing operations.

The Company is currently constructing a new production line in its Thailand
facility. The new production line, referred to by the Company as the "Grand
Master", is expected to have the highest capacity of any glove production line
in the world, equivalent in capacity to approximately eight of the existing
production lines in this facility. Production and capital costs are expected to
be reduced due to labor savings and higher unit production. Construction is
expected to be completed by early 1997 and is being funded with internally
generated cash.

In addition, the Company is currently building a latex concentrate plant in
Thailand. The output of the plant will supply latex concentrate to the Company's
factories in Thailand and Malaysia to manufacture its hypoallergenic disposable
latex gloves. The Company expects that the first construction phase of this new
plant will be completed in the first half of 1997 and that the final phase will
be completed within three years. This plant will allow the Company to more fully
integrate its manufacturing process to gain better control over the quality,
cost and reliability of latex supplies.

The Company has a domestic two-year term credit facility for financing general
working capital needs, up to a maximum of $25,000,000 in borrowings. As of
September 30, 1996, there were no borrowings outstanding under this credit
facility.

The Company's foreign manufacturing subsidiaries have revolving lines of credit
for financing general working capital needs up to approximately $13,700,000 of
which there were no outstanding balances as of September 30, 1996. These
borrowings are collateralized by all assets of the subsidiaries and are further
supported by a guarantee of the Company.

The Company does not believe that the relatively moderate levels of inflation
which have been experienced in the United States in recent years have had a
significant effect on its net sales or its profitability.

                                      -13-
<PAGE>   16
CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This report and the documents incorporated by reference herein contain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. These forward-looking statements include, among others, statements
concerning the Company's outlook for 1996 and beyond, the Company's liquidity
and working capital, the Company's ability to generate additional efficiencies
in its manufacturing facilities and other statements of expectations, beliefs,
future plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. The
forward-looking statements in this report are subject to risks and uncertainties
that could cause the assumptions underlying such forward-looking statements and
the actual results to differ materially from those expressed in or implied by
the statements.

The most important factors that could prevent the Company from achieving its
goals -- and cause the assumptions underlying forward-looking statements and the
actual results of the Company to differ materially from those expressed in or
implied by those forward-looking statements -- include, but are not limited to,
the following:

         --       the competitive nature of the industry and the ability of the
                  Company to continue to distinguish its products on the basis
                  of quality, reliability and value, and the ability of the
                  Company to maintain selling prices and anticipated volumes 

         --       the consistent availability, at competitive prices, of raw
                  rubber from independent growers and concentrate plant
                  operators in Malaysia and Thailand

         --       risks associated with investments and operations in foreign
                  countries, particularly Thailand and Malaysia, including those
                  related to local economic conditions, exchange rate
                  fluctuations, governmental policies regarding foreign
                  ownership of manufacturing facilities, local regulatory
                  requirements, tax holidays and political factors

         --       economic conditions in the healthcare industry, including the
                  potential impact of industry consolidation

         --       delays in the completion of the Company's construction of its
                  new production line and latex concentrate plant in Thailand or
                  the failure of such new line or plant to generate anticipated
                  productivity and efficiencies

         --       changes in significant government regulations affecting the
                  healthcare industry                                          

                                     -14-
<PAGE>   17
         --       the ability of the Company to protect its proprietary
                  products, know-how and manufacturing processes
        
         --       changes in the Company's rates or basis of income taxation

         --       possible obsolescence of the Company's primary product due to
                  the development by competitors of new products, manufacturing
                  processes or technologies including latex alternatives

These and other risks and uncertainties affecting the Company are discussed in
greater detail in this report and in other filings by the Company with the
Securities and Exchange Commission.

                                     -15-
<PAGE>   18
                           PART II: OTHER INFORMATION

ITEM 6.           Exhibits and Reports on Form 8-K

(a)      Exhibits


         EXHIBIT           DESCRIPTION
         -------           -----------

         11                Statement re: Computation of per share earnings


(b)      Reports on Form 8-K

         None.

                                      -16-
<PAGE>   19
                                   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.


                                     SAFESKIN CORPORATION


Date: November 14, 1996                       By:  /s/ David L. Morash
                                                   --------------------
                                              David L. Morash, Executive Vice-
                                              President, Chief Financial Officer

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