<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                          ----------------------------

                                    FORM 10-Q

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

FOR THE QUARTER ENDED MARCH 31, 2000              COMMISSION FILE NUMBER 0-25016

                                  T-NETIX, INC.
             (Exact Name of registrant as Specified in Its Charter)

<TABLE>
<S>                                                   <C>
                  COLORADO                                         84-1037352
 ---------------------------------------------        ------------------------------------
(State of Other Jurisdiction of Incorporation)        (I.R.S.  Employer Identification No.)

       67 INVERNESS DRIVE EAST
         ENGLEWOOD, COLORADO                                          80112
 --------------------------------------                            ----------
(Address of principal executive offices)                           (Zip Code)
</TABLE>

         REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (303) 790-9111
--------------------------------------------------------------------------------

         Securities registered pursuant to Section 12(b) of the Act: NONE.

         Securities registered pursuant to Section 12(g) of the Act: Common
         Stock
     (Title of Class)

Indicate by check mark whether the Registrant: (1) has filed all reports 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 practical date.

                       Class                    Outstanding at May 10, 2000
         --------------------------------       ---------------------------
         Common stock, $0.01 stated value               12,733,084

<PAGE>   2

                         FORM 10-Q CROSS REFERENCE INDEX

<TABLE>
<CAPTION>
                                                                          Page
                                                                          ----

                          PART I FINANCIAL INFORMATION

<S>                                                                       <C>
Item 1        Condensed Financial Statements (Unaudited)...................   2
Item 2        Management's Discussion and Analysis of Financial Condition
              and Results of Operations....................................  13
Item 3        Quantitative and Qualitative Disclosure About Market Risk....  19

                            PART II OTHER INFORMATION

Item 1        Legal Proceedings............................................  20
Item 2        Changes in Securities and Use of Proceeds....................  20
Item 3        Defaults Upon Senior Securities..............................  20
Item 4        Submission of Matters to a Vote of Security Holders..........  20
Item 5        Other Information............................................  20
Item 6        Exhibits and Reports on Form 8-K.............................  20
</TABLE>



<PAGE>   3

                                     PART I

ITEM 1.  FINANCIAL STATEMENTS

              INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


<TABLE>
<S>                                                                        <C>
Condensed Consolidated Balance Sheets as of March 31, 2000 and
  December 31, 1999 (Unaudited)............................................  2

Condensed Consolidated Statements of Operations for the Three Months Ended
  March 31, 2000 and 1999 (Unaudited)......................................  3

Condensed Consolidated Statements of Cash Flows for the Three Months Ended
  March 31, 2000 and 1999 (Unaudited)......................................  4

Notes to Condensed Consolidated Financial Statements (Unaudited)...........  5
</TABLE>



<PAGE>   4
                         T-NETIX, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                MARCH 31,  DECEMBER 31,
                                                                                  2000        1999
                                                                                ---------  ------------

                                                                                (AMOUNTS IN THOUSANDS)
                                     ASSETS
<S>                                                                              <C>         <C>

Cash and cash equivalents ....................................................   $    178    $    118
Accounts receivable, net .....................................................     14,795      16,459
Prepaid expenses .............................................................      1,554       1,038
Inventories ..................................................................        100         710
                                                                                 --------    --------
   Total current assets ......................................................     16,627      18,325
Property and equipment, net ..................................................     36,484      33,858
Goodwill, net ................................................................      6,215       6,401
Deferred tax asset ...........................................................      2,297       2,297
Intangible and other assets, net .............................................      8,854       9,252
                                                                                 --------    --------
     Total assets ............................................................   $ 70,477    $ 70,133
                                                                                 ========    ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
   Accounts payable ..........................................................   $ 12,991    $ 13,187
   Accrued liabilities .......................................................      5,286       5,924
   Current portion of long term debt .........................................      7,712       7,366
                                                                                 --------    --------
     Total current liabilities ...............................................     25,989      26,477
   Long term debt ............................................................     23,399      21,555
                                                                                 --------    --------
     Total liabilities .......................................................     49,388      48,032
Stockholders' equity:
   Preferred stock, $.01 stated value,  10,000,000 shares authorized;
     no shares issued ........................................................         --          --
   Common stock, $.01 stated value, 70,000,000 shares authorized;
     12,731,584 and 12,699,400 shares issued and outstanding at March 31,
       2000 and December  31, 1999, respectively .............................        127         127
   Additional paid-in capital ................................................     35,858      35,791
   Accumulated deficit .......................................................    (14,896)    (13,817)
                                                                                 --------    --------
     Total stockholders' equity ..............................................     21,089      22,101
                                                                                 --------    --------
Commitments and contingencies
Total liabilities and stockholders' equity ...................................   $ 70,477    $ 70,133
                                                                                 ========    ========
</TABLE>

See accompanying notes to condensed consolidated financial statements.


                                      -2-
<PAGE>   5

                         T-NETIX, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                   THREE MONTHS ENDED MARCH 31, 2000 AND 1999

<TABLE>
<CAPTION>
                                                        2000          1999
                                                        ----          ----
                                                       (AMOUNTS IN THOUSANDS,
                                                     EXCEPT PER SHARE AMOUNTS)
<S>                                                  <C>          <C>
Revenue:
   Telecommunications services ...................   $  10,125    $   9,814
   Direct call provisioning ......................       7,246        6,502
   Internet services .............................       5,817           --
   Equipment sales and other .....................         382        1,468
                                                     ---------    ---------
         Total revenue ...........................      23,570       17,784
                                                     ---------    ---------
Expenses:
   Operating costs:
     Telecommunications services .................       4,501        4,243
     Direct call provisioning ....................       6,515        6,080
     Internet services ...........................       5,099           --
     Cost of equipment sold and other ............         218          665
                                                     ---------    ---------
       Total operating costs .....................      16,333       10,988
   Selling, general and administrative ...........       3,738        3,360
   Research and development ......................       1,175        1,360
   Depreciation and amortization .................       3,049        2,822
                                                     ---------    ---------
       Total expenses ............................      24,295       18,530
                                                     ---------    ---------
         Operating loss ..........................        (725)        (746)
Merger transaction expenses ......................          --         (190)
Interest and other income (expense), net .........        (354)        (484)
                                                     ---------    ---------
       Loss before income taxes ..................      (1,079)      (1,420)
Income tax benefit ...............................          --          588
                                                     ---------    ---------
Net loss .........................................   $  (1,079)   $    (832)
                                                     =========    =========

Basic and diluted loss per common share ..........   $   (0.08)   $   (0.07)
                                                     =========    =========

Weighted average common shares ...................      12,715       12,246
                                                     =========    =========
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                      -3-

<PAGE>   6

                         T-NETIX, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                   THREE MONTHS ENDED MARCH 31, 2000 AND 1999


<TABLE>
<CAPTION>
                                                                     2000        1999
                                                                     ----        ----
                                                                  (AMOUNTS IN THOUSANDS)
<S>                                                                <C>        <C>
Cash flows from operating activities:
Net loss .......................................................   $(1,079)   $  (832)
Adjustments to reconcile net earnings to net cash
  provided by operating activities:
  Depreciation and amortization ................................     3,049      2,822
  Deferred income tax benefit ..................................        --       (588)
  Gain on sale of property and equipment .......................      (248)        --
  Changes in operating assets and liabilities:
     Change in accounts receivable, net ........................     1,664       (309)
     Change in prepaid expenses ................................      (516)      (122)
     Change in inventory .......................................       610       (870)
     Change in intangibles and other assets ....................       (16)       553
     Change in accounts payable ................................      (196)     2,385
     Change in accrued liabilities .............................      (638)      (167)
                                                                   -------    -------
     Cash provided by operating activities .....................     2,630      2,872
                                                                   -------    -------
Cash used in investing activities:
  Purchase of property and equipment ...........................    (5,046)    (4,286)
  Proceeds from disposal or property and equipment .............       228         --
  Other investing activities ...................................        (9)      (460)
                                                                   -------    -------
     Cash used in investing activities .........................    (4,827)    (4,746)
                                                                   -------    -------
Cash flows from financing activities:
  Net proceeds (payments) under line of credit .................     2,351      1,663
  Payments of debt .............................................      (161)      (192)
  Proceeds from debt ...........................................        --        682
  Common stock issued for cash under option plans ..............        67        140
                                                                   -------    -------
     Cash provided by financing activities .....................     2,257      2,293
                                                                   -------    -------
Net increase in cash and cash equivalents ......................        60        419
Cash and cash equivalents at beginning of period ...............       118        678
                                                                   -------    -------
Cash and cash equivalents at end of period .....................   $   178    $ 1,097
                                                                   -------    -------

Cash paid for interest .........................................   $   638    $   537
                                                                   =======    =======
Cash paid for income taxes .....................................   $    --    $   113
                                                                   =======    =======
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                      -4-
<PAGE>   7

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         UNAUDITED FINANCIAL STATEMENTS

         The accompanying unaudited consolidated financial statements reflect
         all adjustments which, in the opinion of management, are necessary to
         reflect a fair presentation of the financial position and results of
         operations of T-NETIX, Inc. and subsidiaries (the Company) for the
         interim periods presented. All adjustments, in the opinion of
         management, are of a normal and recurring nature. Some adjustments
         involve estimates, which may require revision in subsequent interim
         periods or at year-end. The financial statements have been presented in
         accordance with generally accepted accounting principles. Refer to
         notes to consolidated financial statements, which appear in the 1999
         Annual Report on Form 10-K for the Company's accounting policies, which
         are pertinent to these statements.

         BASIS OF PRESENTATION

         On June 14, 1999, the Company completed a merger with Gateway
         Technologies, Inc. ("Gateway"), a privately held provider of inmate
         calling services. As a result of the merger, Gateway became a wholly
         owned subsidiary of the Company. Prior to the merger, the Company
         changed its year-end from July 31 to December 31. Gateway's year-end
         was December 31.

         The merger was accounted for as a pooling of interests. As a result,
         the Company's financial statements have been restated to combine
         Gateway's financial statements as if the merger had occurred at the
         beginning of the earliest period presented. Information concerning
         common stock and per share data has been restated on an equivalent
         share basis.

         LIQUIDITY

         The Company incurred losses from continuing operations in the three
         months ended March 31, 2000 of $1.1 million and had a working capital
         deficit of $ 9.4 million at March 31, 2000. In March 2000 the Company
         reached an agreement with its lenders to amend its credit agreement to
         provide for revised financial covenants. As of March 31, 2000 the
         Company is in compliance with all terms in the agreement with the
         lenders. The Company raised $7.5 million of additional financing in
         April 2000. The financing consisted of preferred stock and subordinated
         debt. The net proceeds were used to reduce the outstanding balance on
         the credit facility required by the lenders. The new agreement has not
         been fully executed by the Company or the lenders; however the Company
         expects to complete the agreement in May 2000. There can be no
         assurance that the agreement will be completed with the currently
         anticipated terms or other acceptable terms.

         The Company is taking steps to increase cash flow from operations and
         obtain additional financing to ensure that the Company is able to carry
         out the remainder of its fiscal 2000 business plan. There can be no
         assurance that the Company will be successful in increasing its cash
         flow from operations or that additional financing will be available, or
         if available, will be obtained on acceptable terms.



                                      -5-
<PAGE>   8

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

(1)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         EARNINGS (LOSS) PER COMMON SHARE

         Earnings (loss) per common share are presented in accordance with the
         provisions of Statement of Financial Accounting Standards No. 128,
         Earnings Per Share (SFAS 128). Basic earnings per share excludes
         dilution for common stock equivalents and is computed by dividing
         income or loss available to common shareholders by the weighted average
         number of common shares outstanding during the period. Diluted earnings
         per share reflect the potential dilution that could occur if securities
         or other contracts to issue common stock were exercised or converted
         into common stock. For the three months ended March 31, 2000 and 1999,
         common stock equivalents of 459,000 and 460,000 respectively were not
         included in the diluted earnings per share calculation, as their effect
         would be anti-dilutive.

         RECENT ACCOUNTING PRONOUNCEMENTS

         In March 2000, the Financial Accounting Standards Board ("FASB") issued
         interpretation No. 44 "Accounting for Certain Transactions involving
         Stock Compensation - and interpretation of APB Opinion No. 25 ("FIN
         44"). This interpretation provides guidance on the accounting for
         certain stock option transactions and subsequent amendments to stock
         option transactions. FIN 44 is effective July 1, 2000, but certain
         conclusions cover specific events that occur after either December 15,
         1998 or January 12, 2000. The Company has not yet assessed the impact,
         if any, that FIN 44 might have on its financial position or results of
         operations.

         In December 1999, the SEC released Staff Accounting Bulletin ("SAB")
         No. 101, "Revenue Recognition in Financial Statements", which provides
         guidance on the recognition, presentation, and disclosure of revenue in
         financial statements filed with the SEC. Subsequently, the SEC released
         SAB 101A, which delayed the implementation date of SAB 101 for
         registrants with fiscal years beginning between December 16, 1999 and
         March 15, 2000. The Company has not yet assessed the impact, if any,
         that SAB 101 might have on its financial position or results of
         operations.

         In June 1998, the Financial Accounting Standards Board issued Statement
         of Financial Accounting Standards No. 133, (SFAS 133), "Accounting for
         Derivative Instruments and Hedging Activities." This statement
         establishes accounting and reporting standards for derivative
         instruments, including certain derivative instruments embedded in other
         contracts (collectively referred to as derivatives), and for hedging
         activities. The statement requires companies to recognize all
         derivatives as either assets or liabilities, with the instruments
         measured at fair value. The accounting for changes in fair value, gains
         or losses, depends on the intended use of the derivative and its
         resulting designation. In June 1999, the Financial Accounting Standards
         Board issued SFAS 137, "Accounting for Derivative Instruments and
         Hedging Activities Deferral of the Effective Date of FASB No. 133 - An
         amendment of FASB Statement No. 133." SFAS 137 defers the effective
         date of SFAS 133 to all fiscal quarters of all fiscal years beginning
         after June 15, 2000. The Company does not expect the adoption of SFAS
         133 to have a material impact on its financial position or results of
         operations.



                                      -6-
<PAGE>   9
                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         RECLASSIFICATION

         Certain amounts in the 1999 financial statements have been reclassified
         to conform to the 2000 presentation.

(2)      BALANCE SHEET COMPONENTS

         Accounts receivable consist of the following:


<TABLE>
<CAPTION>
                                                           MARCH 31,  DECEMBER 31,
                                                             2000        1999
                                                           --------    --------
                                                          (AMOUNTS IN THOUSANDS)
<S>                                                       <C>         <C>
Accounts receivable, net:
   Trade accounts receivable ...........................   $ 11,224    $ 11,797
   Direct call provisioning receivable .................      6,441       7,268
   Customer reimbursable receivable ....................        342         752
   Other receivables ...................................        208         231
                                                           --------    --------
                                                             18,215      20,048
     Less: Allowance for doubtful accounts .............     (3,420)     (3,589)
                                                           --------    --------
                                                           $ 14,795    $ 16,459
                                                           ========    ========
</TABLE>

Bad debt expense was $1,314,000 and $1,351,000 for the three
months ended March 31, 2000 and 1999, respectively.

Property and equipment consist of the following:

<TABLE>
<CAPTION>
                                                    MARCH 31,  DECEMBER 31,
                                                      2000        1999
                                                    ---------  ------------
                                                    (AMOUNTS IN THOUSANDS)
<S>                                                 <C>         <C>
Property and equipment, net:
   Telecommunications equipment .................   $ 57,772    $ 55,487
   Construction in progress .....................      8,521       7,341
   Office equipment .............................      9,833       9,169
                                                    --------    --------
                                                      76,126      71,997
     Less: Accumulated depreciation and
                amortization ....................    (39,642)    (38,139)
                                                    --------    --------
                                                    $ 36,484    $ 33,858
                                                    ========    ========
</TABLE>



                                      -7-
<PAGE>   10

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(2)      BALANCE SHEET COMPONENTS (CONTINUED)

         Intangible and other assets consist of the following:

<TABLE>
<CAPTION>
                                                     MARCH 31, DECEMBER 31,
                                                       2000       1999
                                                    --------- -------------
                                                    (AMOUNTS IN THOUSANDS)
<S>                                                 <C>         <C>
Intangible and other assets, net:
   Patent license rights ..........................   $  3,325   $  3,325
   Purchased technology assets ....................      2,487      2,487
   Capitalized software development costs .........        660        651
   Acquired software technologies .................      1,783      1,783
   Patent defense and application costs ...........      2,583      2,583
   Deposits and long-term prepayments .............      1,353      1,183
   Other ..........................................      1,496      1,649
                                                      --------   --------
                                                        13,687     13,661
     Less: Accumulated amortization ...............     (4,833)    (4,409)
                                                      --------   --------
                                                      $  8,854   $  9,252
                                                      ========   ========
</TABLE>

         Accrued liabilities consist of the following:

<TABLE>
<CAPTION>
                                                     MARCH 31, DECEMBER 31,
                                                       2000       1999
                                                    --------- -------------
                                                    (AMOUNTS IN THOUSANDS)
<S>                                                   <C>     <C>
Accrued liabilities:
   Deferred revenue and customer advances .........   $1,549    $2,114
   Compensation related ...........................    1,808     1,175
   Other ..........................................    1,929     2,635
                                                      ------    ------
                                                      $5,286    $5,924
                                                      ======    ======
</TABLE>



                                      -8-
<PAGE>   11

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(3)      DEBT

         Debt consists of the following:


<TABLE>
<CAPTION>
                                    MARCH 31, DECEMBER 31,
                                      2000       1999
                                   --------- -------------
                                   (AMOUNTS IN THOUSANDS)
<S>                                 <C>       <C>
Debt:
   Bank lines of credit ..........   $30,812   $28,461
   Other .........................       299       460
                                     -------   -------
                                      31,111    28,921
   Less current portion ..........     7,712     7,366
                                     -------   -------
     Non current portion .........   $23,399   $21,555
                                     -------   -------
</TABLE>

         In September 1999, the Company entered into a Senior Secured Revolving
         Credit Facility (the "Credit Facility") with its commercial bank. The
         Credit Facility provides for maximum credit of $40,000,000 subject to
         limitations based on financial covenant calculations. The Credit
         Facility is comprised of a one year LIBOR component of $15,000,000 at
         an interest rate of LIBOR plus 4.0% at March 31, 2000; a one month
         LIBOR component of $7,000,000 at an interest rate of LIBOR plus 4.0% at
         March 31, 2000; and $8,812,000 at the Bank's prime rate, 9.0% at March
         31, 2000, plus 1.25%. As of March 31, 2000, the interest rate on
         borrowings under the line of credit ranged from 11.7% to 12.0%. The
         Company also pays a fee of 0.40% per annum on the unused portion of the
         line of credit.

         The Credit Facility is collateralized by substantially all of the
         assets of the Company. Under the terms of the Credit Facility, the
         Company is required to maintain certain financial ratios and other
         financial covenants. These ratios include a debt to a four quarter
         rolling earnings before interest, taxes and depreciation and
         amortization (EBITDA) ratio, a ratio of fixed charges (interest and
         debt payments) to EBITDA, and minimum quarterly EBITDA. The Agreement
         also prohibits the Company from incurring additional indebtedness.

         In March 2000, the Company reached an agreement with its lenders to
         amend its credit agreement to provide for revised financial covenants.
         The Company raised $7.5 million of additional financing in April 2000
         as required by the lenders. The net proceeds were used to reduce the
         outstanding balance on the credit facility. As of March 31, 2000 the
         Company is in compliance with all terms proposed in the agreement with
         the lenders. The maximum amount of credit under the credit facility
         available to the Company is dependent upon the Company's financial
         performance. Based on the financial covenants, the Company's maximum
         borrowings are less than $40.0 million. The new terms contained in the
         agreement with the bank plan to extend the maturity date of the
         facility to May 2001. The new agreement has not been fully executed by
         the Company or the lenders; however the Company expects to complete the
         agreement in May 2000. There can be no assurance that the agreement
         will be completed with the currently anticipated terms or other
         acceptable terms.




                                      -9-
<PAGE>   12

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(4)      SUBSEQUENT EVENTS

         FINANCING ACTIVITIES

         In April 2000, the Company issued 3,750 shares of our Series A
         Convertible Redeemable Preferred Stock and a five-year stock purchase
         warrant exercisable for 340,909 shares at $6.60 per share of the
         Company's common stock to RGC International Investors, LLC, a fund
         managed by Rose Glen Capital Management LP. The net proceeds from the
         issuance were $3,525,000, net of offering costs. The preferred stock
         has a yield of 8% per annum payable on liquidation, and is convertible
         into our common stock at a conversion price based on the closing market
         price of the common stock during a pricing period of 5 consecutive
         trading days during the 22 consecutive trading days preceding
         conversion, up to a "fixed" conversion price. The fixed conversion
         price is the lower of $6.05 per share or 110% of the market price of
         the Company's common stock for 10 days ending on August 17, 2000. With
         limited exceptions relating to a change of control of the Company,
         during the six month period after the issuance of the preferred stock,
         the preferred stock is not convertible into the Company's common stock
         unless the market price of the common stock equals or exceeds the fixed
         conversion price. After that, the Company has the right to issue cash
         instead of common stock upon conversion of the preferred stock, if the
         market price of the common stock is less than the fixed conversion
         price. The Company will account for these transactions in accordance
         with ETIF 98-5, Accounting for Convertible Securities with Beneficial
         Conversion Features or Contingently Adjustable Conversion Ratios.

         The preferred stock is redeemable at the option of the Company, subject
         to certain restrictions, if the market price of the Company's common
         stock is less than or equal to $4.00. The redemption is subject to
         notice requirements. The cash redemption price is the greater of 120%
         of the stated value of the preferred stock plus the liquidation
         preference, or the number of shares of common stock issuable upon
         conversion of the preferred stock multiplied by the highest closing
         price of the common stock during a period from notice of redemption
         until the redemption date.

         The Company also issued subordinated notes payable of $3.75 million to
         a director and significant shareholder of the Company. The note bears
         interest and prime rate plus one percent per annum and is payable every
         six months beginning in October 2000. The director and significant
         shareholder also received five-year stock purchase warrants to purchase
         25,000 shares of common stock at an exercise price of $6.05 per share.
         The Company also issued stock purchase warrants exercisable for 50,000
         shares of common stock to the broker on the sale of the preferred stock
         at an exercise price of $6.60 per share. The stock purchase warrants
         will be valued at fair value using the Black-Scholes model and will be
         amortized as financing fees over the term of the respective debt or
         warrant.



                                      -10-
<PAGE>   13

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

(5)      SEGMENT INFORMATION

         The Company has three reportable segments; the Corrections Divisions,
         the SpeakEZ Division, and Internet Services Division. The Company
         evaluates performance based on earnings (loss) before income taxes.
         Additional measures include operating income, depreciation and
         amortization, and interest expense. There are no intersegment sales.
         The Company's reportable segments are specific business units that
         offer different products and services. They are managed separately
         because each business requires different technology and marketing
         strategies. The accounting policies of the reportable segments are the
         same as those described in the summary of significant accounting
         policies. Segment information for the three months ended March 31, 2000
         and 1999 is as follows (amounts in thousands):

<TABLE>
<CAPTION>
                                                  2000        1999
                                                  ----        ----
<S>                                             <C>         <C>
REVENUE FROM EXTERNAL CUSTOMERS:
  Corrections Division ......................   $ 17,672    $ 17,759
  SpeakEZ Division ..........................         81          25
  Internet Services Division ................      5,817          --
                                                --------    --------
                                                $ 23,570    $ 17,784
                                                ========    ========

OPERATING INCOME (LOSS):
  Corrections Division ......................   $ (1,053)   $     49
  SpeakEZ Division ..........................       (390)       (795)
  Internet Services Division ................        718          --
                                                --------    --------
                                                $   (725)   $   (746)
                                                ========    ========

DEPRECIATION AND AMORTIZATION
  Corrections Division ......................   $  2,812    $  2,562
  SpeakEZ Division ..........................        237         260
  Internet Services Division ................         --          --
                                                --------    --------
                                                $  3,049    $  2,822
                                                ========    ========

INTEREST AND OTHER INCOME (EXPENSE)
  Corrections Division ......................   $    (76)   $   (277)
  SpeakEZ Division ..........................       (278)       (207)
  Internet Services Division ................         --          --
                                                --------    --------
                                                $   (354)   $ ( 484)
                                                ========    ========

SEGMENT EARNINGS (LOSS) BEFORE TAX:
  Corrections Division ......................   $ (1,129)   $   (418)
  SpeakEZ Division ..........................       (668)     (1,002)
  Internet Services Division ................        718          --
                                                --------    --------
                                                $ (1,079)   $   (832)
                                                ========    ========
</TABLE>



                                      -11-
<PAGE>   14

                         T-NETIX, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(5)      SEGMENT INFORMATION (CONTINUED)

<TABLE>
<CAPTION>
                                     MARCH 31, 2000  DECEMBER 31, 1999
                                     --------------  -----------------
<S>                                  <C>               <C>
SEGMENT ASSETS:
 Corrections Division ................   $67,102           $66,534
 SpeakEZ Division ....................     3,375             3,599
 Internet Services Division ..........        --                --
                                         -------           -------
                                         $70,477           $70,133
                                         ========          =======
</TABLE>

         There was no intersegment revenue for the three months ended March 31,
         2000 and 1999. Unallocated amounts to arrive at net earnings (loss)
         included an income tax benefit of $588,000 for the three months ended
         March 31, 1999. Consolidated total assets included eliminations of
         approximately $13,156,000 and $12,976,000 as of March 31, 2000 and
         December 31, 1999, respectively. Eliminations consist of intercompany
         receivables in the Corrections Division and intercompany payables in
         the SpeakEZ Division related solely to intercompany borrowing of the
         SpeakEZ Division.



                                      -12-
<PAGE>   15


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

For a comprehensive understanding of our financial condition and performance,
this discussion should be considered in the context of the condensed
consolidated financial statements and accompanying notes and other information
contained herein.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain information contained in this
Management's Discussion and Analysis of Financial Condition and Results of
Operations and elsewhere in this Form 10-Q includes forward-looking statements.
Important factors that could cause actual results to differ materially from
those in the forward-looking statements include, but are not limited to, those
listed under the caption "Risk Factors" in the Company's Form 10-K for the year
ended December 31, 1999, which may affect the potential technological
obsolescence of existing systems, the renewal of existing site specific
Corrections and Internet Service Division customer contracts, the ability to
retain the base of current site specific customer contracts, the continued
relationship with existing customers, the ability to win new contracts for our
products and services, including Lock & Track(TM), Contain(R) and our Internet
Services Division, the successful integration of Gateway Technologies, Inc. into
our business, our ability to penetrate the market for jail management systems,
the ability to reduce expenditures in the SpeakEZ Division and to successfully
license voice verification and fraud prevention technology, the effect of
economic conditions, the effect of regulation, including the Telecommunications
Act of 1996 that could affect our sales or pricing, the impact of competitive
products and pricing particularly in the our Corrections Division, our
continuing ability to develop hardware and software products, commercialization
and technological difficulties, manufacturing capacity and product supply
constraints or difficulties, actual purchases by current and prospective
customers under existing and expected agreements, and the results of financing
efforts, along with the other risks detailed therein.

OVERVIEW

ACQUISITION OF GATEWAY TECHNOLOGIES, INC.

On June 14, 1999, we completed our merger with Gateway Technologies, Inc. or
"Gateway" by exchanging 3,672,234 shares of our common stock for all of the
common stock of Gateway. Each share of Gateway was exchanged for 5.0375 shares
of our common stock. In addition, outstanding Gateway stock options were
converted at the same exchange rate into options to purchase approximately
379,000 shares of our common stock.

The merger constituted a tax-free reorganization and has been accounted for as a
pooling of interests under Accounting Principles Board Opinion No. 16.
Accordingly, all prior period information contained in this Management's
Discussion and Analysis of Financial Condition and Results of Operations has
been restated to include the combined results of operations, financial position
and cash flows of T-NETIX and Gateway as though Gateway had always been a part
of T-NETIX

In addition, in connection with the merger transaction, T-NETIX issued 375,341
shares of common stock to certain shareholders of Gateway in exchange for their
terminating a royalty agreement with Gateway. The royalty agreement related to
automated call processing technology and intellectual property rights that were
assigned to Gateway by the royalty owners in exchange for royalty payments. The
termination of the royalty owners' interests resulted in the acquisition of an
intangible asset. The asset has been recorded at its estimated fair value, or
$2,487,000. The fair value is based on the value of T-NETIX common stock at
February 10, 1999 (date of the Merger Agreement), or $6.625, multiplied by the
number of shares issued in exchange for termination of the royalty owners'
interests. The intangible asset has an estimated useful life of 10 years, the
remaining term of the underlying patent.



                                      -13-
<PAGE>   16

CORRECTIONS DIVISION

In the Corrections Division we derive revenue from three main sources:
telecommunications services, direct call provisioning and equipment sales. Each
form of revenue has specific and varying operating costs associated with such
revenue. Selling, general and administrative expenses, along with research and
development and depreciation and amortization are common expenses regardless of
the revenue generated.

Telecommunications services revenue is generated under long-term contracts,
which provide for transaction fees paid on a per-call basis. The per-call charge
is primarily for the provisioning of specialized call processing services to
telecommunications service providers for their customers, the correctional
facilities. Such telecommunications service providers include AT&T, Bell
Atlantic, US WEST, SBC Communications (including Ameritech), BellSouth, Sprint
and GTE, and other telecommunications service providers. We are paid a
prescribed fee for each call completed and additional fees for validating phone
numbers dialed by inmates.

As a direct inmate call provider, we buy "wholesale" call services to be re-sold
as collect calls. We use the services of third parties to bill the collect
calls. We then enter into direct contracts with the correctional facilities and
generally pay to the correctional facilities commissions on the gross billed
revenue. The rates charged by us are consistent with the collect call rates
charged by the incumbent local exchange carrier or "ILEC" in the same service
area and the predominant interexchange carrier or "IXC". Since all calls
originating from the inmate phones are collect calls, each phone generates
higher-than-industry-average revenues. The uncertainty of the creditworthiness
of the billed parties results however in a higher-than-industry-average
uncollectible cost.

Equipment sales and other revenue includes the sales of our inmate calling
system and the DRS system. The sales of the inmate calling system are generally
made to only one customer. We then charge monthly maintenance fees to keep the
system operational. Sales to this customer can vary depending upon the success
of the customer in winning contracts with correctional facilities.

INTERNET SERVICES DIVISION

In December 1999, we entered into a master service agreement with US WEST
!NTERPRISE America, Inc. to provide interLATA Internet services to US WEST
customers. The contract, which commenced December 1, 1999, calls for us to buy,
resell and process billing of Internet bandwidth to this customer. The contract
with US WEST is for a minimum of sixteen months.

We recognized a significant increase in Internet Services revenue and related
costs for the three months ended March 31, 2000. Our gross margin on these
services was 12% for the three months ended March 31, 2000. Factors affecting
margin include a negotiated base management fee and contract incentive payments.
The costs associated with this contract are primarily the costs for Internet
bandwidth. There were no capital outlays required to begin provisioning these
services. We have added three employees to perform the services under this
contract, and their costs are reflected in our selling, general and
administrative expenses. The Company anticipates the addition of personnel as it
intends to expand the service offerings of the Internet Services Division beyond
the scope of the current single contract. The additions will be for technical
and administrative staff.

Extension of the contract beyond the minimum sixteen-month period is dependent
upon the regulatory approval process in various states. In the event that US
WEST receives regulatory approval to provide inter-LATA telecommunications
services during or after the initial sixteen month period, our Internet Services
revenue could be reduced significantly or eliminated.



                                      -14-
<PAGE>   17
SPEAKER VERIFICATION DIVISION

We completed consolidation of our SpeakEZ operations to our Englewood facility
in February 1999. The reorganization included a change in marketing strategy
from a direct customer sales strategy to a technology licensing strategy. A
direct customer sales strategy markets a specifically developed software product
to a specific, end user customer. The strategy is then to find other specific
customers who have similar operating systems and market this product to these
customers. In contrast, a technology licensing strategy focuses on a larger
scale customer who can integrate the SpeakEZ software product into its existing
product line. This larger customer, such as a computer manufacturer, would then
be responsible for the product integration and ultimate delivery to the end user
customer.

Even with the changes in marketing strategy, there can be no assurance that the
SpeakEZ products will achieve the necessary market acceptance or become widely
adopted. The market for speaker verification software has only recently begun to
develop. As is typical in the case of a new and rapidly evolving market, demand
and market acceptance for recently introduced products and services are subject
to a high level of uncertainty. Our voice print revenue has been minimal to
date. There is no assurance that the SpeakEZ products will be commercially
accepted or profitable in the future.



                                      -15-
<PAGE>   18

RESULTS OF OPERATIONS

The following table sets forth certain statement of operations data as a
percentage of total revenue for the three months ended March 31, 2000 and 1999.

<TABLE>
<CAPTION>
                                                     2000      1999
                                                     ----      ----
<S>                                                  <C>       <C>
Revenue:
   Telecommunications services ...................     43%      55%
   Direct call provisioning ......................     31       37
   Internet services .............................     25       --
   Equipment sales and other .....................      1        8
                                                     ----     ----
Total revenue ....................................    100      100

Expenses:
   Operating costs ...............................     69       62
   Selling, general and administrative ...........     16       19
   Research and development ......................      5        7
   Depreciation and amortization .................     13       16
                                                     ----     ----
     Operating loss ..............................     (3)      (4)
   Merger transaction expenses ...................     --       (1)
   Interest and other income (expense), net ......     (2)      (3)
                                                     ----     ----
    Loss before income taxes .....................     (5)      (8)
    Income tax (expense) benefit .................     --        3
                                                     ----     ----
    Net loss .....................................     (5)%     (5)%
                                                     ====     ====
</TABLE>

Total Revenue. Total revenue for the three months ended March 31, 2000 was $23.6
million, an increase of 33% over $17.8 million for the corresponding prior
period. This increase was primarily attributable to the commencement of Internet
services, as well as increases in direct call provisioning revenue and
telecommunications services revenue offset in part by decreases in equipment
sales and other.

The 3% increase in telecommunications services revenue to $10.1 million in the
three months ended March 31, 2000, from $9.8 million for the corresponding prior
period, was due primarily to an increase in call volumes. The increase in call
volumes is primarily due to the addition of new sites.

Direct call provisioning revenue increased 11% to $7.2 million for the three
months ended March 31, 2000, from $6.5 million in the corresponding prior
period. This increase was due to the addition of new sites primarily for which
we are provisioning the long distance service. The addition of sites is
primarily a result of our being successful in competitive bidding arrangements
for contracts directly with correctional institutions.

The Internet Services contract commenced in December 1999. Future revenue is
dependent upon the base of subscribers and contract incentive payments.

Equipment sales and other revenue decreased 74% to $382,000 for the three months
ended March 31, 2000 from $1.5 million in the corresponding prior period. Such
sales are primarily associated with one telecommunications service provider
customer and are dependent upon the timing of installations for this customer
and the customer's success rate in its territory. In the three months ended
March 31, 2000 we had sales of approximately $268,000 to this telecommunications
service provider customer. The reduction for the three months ended March 31,
2000 from the corresponding prior period is due primarily to the timing of
purchases by this customer.

Operating costs. Total operating costs were $16.3 million in the three months
ended March 31, 2000, an increase of 49% from $11.0 million in the corresponding
prior period. The increases were primarily due to the commencement of Internet
services as well as increases in telecommunication services expenses offset by a
reduction in the cost of equipment sold and other expenses.



                                      -16-
<PAGE>   19


Operating costs of telecommunications services primarily consist of service
administration costs for correctional facilities, including salaries and related
personnel expenses, communication costs and inmate calling systems repair and
maintenance expense. Operating costs of telecommunications services also include
costs associated with call verification procedures, primarily network expenses
and database access charges. Operating costs associated with direct call
provisioning include the costs associated with telephone line access, long
distance charges, commissions paid to correctional facilities, costs associated
with uncollectible accounts and billing charges. Internet Services expense
consists of Internet bandwidth costs. Cost of equipment sold and other includes
primarily the purchase price of equipment which is resold. Other equipment cost
components were minimal. Voice print operating costs include royalty charges,
the cost of hardware and the cost of services which amounts are reflected as
other operating costs.

The following table sets forth the operating costs and expenses for each type of
revenue as a percentage of corresponding revenue for the three months ended
March 31, 2000 and 1999.

<TABLE>
<CAPTION>
                                             2000             1999
                                             ----             ----
<S>                                          <C>              <C>
Operating costs:
  Telecommunications services............    44%               43%
  Direct call provisioning...............    90                94
  Internet services......................    88                --
  Cost of equipment sold and other ......    57                45
</TABLE>

Operating costs associated with providing telecommunications services as a
percentage of corresponding revenue was 44% for the three months ended March 31,
2000, an increase from 43% for the corresponding prior period. The increase was
due to cost increases without corresponding revenue increases. Total
telecommunications services operating expenses were $4.5 million for the three
months ended March 31, 2000 and $4.2 million for the corresponding prior period.
The increase in 2000 is due to increases in personnel costs as a result of
raises for existing personnel and the addition of new personnel in the National
Service Center and other operational support functions. We anticipate that we
will continue to increase our personnel costs for our National Service Center
and other operations management personnel, however, we believe this
centralization of customer support will allow us to begin to reduce field
operations costs. Direct call provisioning costs as a percentage of applicable
revenue decreased to 90% of revenue for the three months ended March 31, 2000
from 94% in for the corresponding prior period. This decrease was primarily due
to a reduction in bad debt expense because of improved historical collections.
The contract for Internet services commenced in December 1999. Cost of equipment
sold and other decreased in the three months ended March 31, 2000 but increased
as a percentage of corresponding revenue from the corresponding prior primarily
due to the change in the revenue mix for equipment sales and voice print sales.

Selling, General and Administrative Expenses. Selling, general and
administrative expenses were $3.7 million for the three months ended March 31,
2000 compared to $3.4 million for the corresponding prior period. Selling,
general and administrative expenses associated with the Corrections Division
were $3.6 million for the three months ended March 31, 2000 compared to $3.1
million in the corresponding prior period. The increase in the three months
ended March 31, 2000 was primarily due to increases in salary and benefits for
additional personnel and from raises and cost of living adjustments for existing
personnel. Other expenses, including travel and telecommunications cost
increased due to the merger with Gateway and additional sales and marketing
travel. We anticipate an increase in selling, general and administrative
expenses due to reorganization of existing personnel to increase the number of
people in support organizations.

Research and Development Expenses. Research and development expenses were $1.2
million in the three months ended March 31, 2000 compared to $1.4 million for
the corresponding prior period. Research and development expenses for the
Corrections Division were $1.0 million in the three months ended March 31, 2000
and $1.1 million in the corresponding prior period. The decrease was primarily
due to reduced personnel expenses.



                                      -17-
<PAGE>   20

Depreciation and Amortization Expenses. Depreciation and amortization expense
was $3.0 million in the three months ended March 31, 2000, an increase from $2.8
million for the corresponding prior period. The increase was due primarily to
the depreciation associated with new site installations.

Merger Transaction Expenses. These expenses were directly related to the merger
with Gateway and amounted to approximately $190,000 for the three months ended
March 31, 1999. Merger transaction expenses consisted primarily of fees for
investment bankers, attorneys, accountants, financial printing and other related
charges.

Interest and Other Income (Expense), Net. Interest and other income (expense),
net was $354,000 for the three months ended March 31, 2000, a decrease from
$484,000 for the corresponding prior period. Included in other income in the
three months ended March 31, 2000 is a gain of approximately $248,000 on the
sale of used telecommunications equipment. There was $59,000 of miscellaneous
other income in the three months ended March 31, 1999. Interest expense was
$602,000 for the three months ended March 31, 2000, and $543,000 for the
corresponding prior period. The increase in 2000 was attributable to an increase
in the average amount of indebtedness outstanding and an increase in interest
rates. The average debt balance increased primarily due to the increase in
capital expenditures and business acquisitions.

LIQUIDITY AND CAPITAL RESOURCES

CASH FLOWS

We incurred losses from continuing operations in the current year of $1.1
million and had a working capital deficit of $9.4 million at March 31, 2000. We
reached an agreement with our lenders to amend our credit agreement to provide
for revised financial covenants. Additionally, we raised $7.5 million of
additional financing in April 2000. The net proceeds were used to reduce the
outstanding balance on our credit facility. However, these factors among others
may indicate that we may not be able to meet our obligations as they become or
due or we may have to significantly reduce installations and curtail other
operations.

We are taking steps to increase cash flow from operations and obtain additional
financings to ensure that we are able to carry out the remainder of our fiscal
2000 business plan. There can be no assurance that we will be successful in
increasing our cash flow from operations or that additional financing will be
available, or if available, will be obtained on acceptable terms.

We present the following information for the three months ended March 31, 2000
and 1999 and as of March 31, 2000 and December 31, 1999:

<TABLE>
<CAPTION>
                                                            2000           1999
                                                            ----           ----
                                                          (AMOUNTS IN THOUSANDS)
<S>                                                     <C>             <C>
   Cash provided by operating activities.............   $   2,630       $  2,872
   Working capital deficit...........................   $  (9,362)      $ (8,152)
   Current ratio.....................................        0.64           0.69
</TABLE>

We have historically relied upon commercial borrowings, operating cash flow and
the sale of equity securities to fund our operations and capital needs. Cash
provided by operations decreased 8% to $2.6 million for the three months ended
March 31, 2000 from $2.9 million in the corresponding prior period primarily
due to an increase in net loss.

Purchases of property and equipment were $5.0 million in the three months ended
March 31, 2000 compared to $4.3 for the corresponding prior period. The 18%
increase in purchases of property and equipment was primarily due to additional
inmate calling system installations and upgrades to existing systems.



                                      -18-
<PAGE>   21

DEBT AND EQUITY

We have been funding our operations primarily from available borrowings under a
line of credit and by using cash provided by operations. Due to our continued
capital requirements and the merger with Gateway, in September 1999, we entered
into a Senior Secured Revolving Credit Facility ("Credit Facility") with a
commercial bank. The maximum amount of credit under the credit facility
available to the Company is dependent upon the Company's financial performance.
Based on the financial covenants, the Company's maximum borrowings are less than
$40.0 million. In March 2000 we reached an agreement with the lenders to amend
our credit facility to provide for revised financial covenants. The new
agreement has not been fully executed by the Company or the lenders; however the
Company expects to complete the agreement in May 2000. There can be no assurance
that the agreement will be completed with the currently anticipated terms or
other acceptable terms. Subsequent to the period end we raised $7.5 million of
additional financing in April 2000. The net proceeds were used to reduce the
outstanding balance on the Credit Facility.

We anticipate that our capital expenditures in 2000 will be consistent with 1999
based on our anticipated growth in installed systems at correctional facilities.
We believe that we may need to obtain additional financing in order to
supplement our Credit Facility and cash flows from operations in order for us to
meet our anticipated cash needs for anticipated new installations of inmate call
processing systems and upgrades of existing systems and to finance our
operations for at least the next 12 months. In the event we do not get
sufficient financing, current cash flows may not be sufficient for the planned
level of installations and we may have to reduce the number of sites that we
install. There can be no assurance that such financing will be available or, if
available, will be obtainable on acceptable terms.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We are exposed to interest rate risk as discussed below.

INTEREST RATE RISK

We have current debt outstanding under a line of credit of $30,812,000 at March
31, 2000. Under the terms of the debt agreement the maximum credit available is
$40,000,000 depending on certain financial covenant requirements. The loan bears
interest at differing rates including, $22,000,000 at LIBOR plus 4.0% and the
remaining balance at the prime rate, 9.0% at March 31, 2000, plus 1.25%.
Interest on LIBOR rate loans is payable at the end of the interest period
applicable to the loan but not longer than every three months. Interest on prime
rate loans is payable every three months. Since the interest rates on the loans
outstanding are variable and are reset periodically, we are exposed to interest
rate risk. The new terms contained in the agreement with the bank plan to extend
the maturity date of the facility to May 15, 2001.



                                      -19-
<PAGE>   22

                            PART II OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

From time to time we have been, and expect to continue to be subject to various
legal and administrative proceedings or various claims in the normal course of
our business. We believe the ultimate disposition of these matters will not have
a material affect on our financial condition, liquidity, or results of
operations.

In a case brought in the First Judicial District Court of the State of New
Mexico, styled Valdez v. State of New Mexico, et. al., the complaint joins as
defendants the State of New Mexico, several political subdivisions of the State
of New Mexico and several inmate telecommunications service providers, including
T-NETIX and Gateway. The complaint includes a request for certification by the
court of a plaintiffs' class action consisting of all persons who have been
billed for and paid for telephone calls initiated by an inmate confined in a
jail, prison, detention center or other New Mexico correctional facility. The
complaint alleges violations of New Mexico Unfair Practices Act, the New Mexico
Antitrust Act and the New Mexico Constitution, and also alleges unjust
enrichment, constructive trust, economic compulsion, constructive fraud and
illegality of contracts, all in connection with the provision of "collect only"
inmate telecommunications services. Although management believes the likelihood
of an unfavorable outcome is low, there can be no assurance that a judgment
against a class of defendant providers will not ultimately be entered.

On April 8, 1999, in the District Court of Dallas County 116th Judicial
District, Gateway Technologies, Inc. ("Gateway") filed a lawsuit, as a
shareholder of Telequip Labs, Inc. ("Telequip"), against Telequip, James Burton
Hellwarth, and David Hellwarth. On March 23, 2000, Telequip filed a counterclaim
against Gateway for tortious interference with contract, breach of contract,
recission, declaratory relief, violations of the Texas Free Enterprises and
Antitrust Act, conspiracy to monopolize, conversion of trade secrets, and
business disparagement. On April 25, 2000, Gateway, Telequip, and other parties
to the litigation entered into a settlement agreement releasing one another from
the claims against them in the lawsuit. The settlement does not prejudice
Gateway's right to assert in litigation that it has terminated its patent
license agreement with Telequip, or Telequip's right to assert in litigation
that the patent license agreement has not been terminated.

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

         10.11    Employment Agreement between T-NETIX, Inc and Thomas E. Larkin
                  dated March 3, 2000

         27       Financial Data Schedule



                                      -20-


<PAGE>   23

                                   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.


                                       T-NETIX, INC.
                                       -------------
                                       (Registrant)

        Date  May 15, 2000             By:  /s/ Alvyn A. Schopp
                                            -------------------
                                       Alvyn A. Schopp, Chief Executive Officer



                                      -21-
<PAGE>   24

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                   DESCRIPTION
-------                  -----------
<S>                 <C>
 10.11              Employment Agreement

 27                 Financial Data Schedule
</TABLE>