FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549
(Mark One)

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

For the quarterly period ended                 March 31, 1999
                              --------------------------------------------------
                                                     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                       0-24900
                      ----------------------------------------------------------

                             ITI Technologies, Inc.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                                      06-1340453
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

               2266 North Second Street, North St. Paul, MN 55109
--------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (651) 777-2690
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not applicable
--------------------------------------------------------------------------------
   (Former name, former address and former fiscal year, if changed since last
                                    report)

            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 _____

                      APPLICABLE ONLY TO CORPORATE ISSUERS

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

            As of April 30, 1999, there were 8,429,542 shares of common stock
outstanding.

<PAGE>


                             ITI TECHNOLOGIES, INC.

                                    FORM 10-Q

                          QUARTER ENDED MARCH 31, 1999


                                   INDEX                                    PAGE
                                                                            ----
PART I --     FINANCIAL INFORMATION

              Item 1 --    Consolidated Financial Statements and Report of
                           Independent Accountants                             3

              Item 2 --    Management's Discussion and Analysis               10
                           of Financial Condition and Results
                           of Operations

PART II       OTHER INFORMATION

              Item 1 --    Legal Proceedings                                  14

              Item 5 --    Other Information                                  14

              Item 6 --    Exhibits and Reports on Form 8-K                   15

              Signatures                                                      16


                                        2
<PAGE>


                                     PART I
                              FINANCIAL INFORMATION

Item 1.       Financial Statements.



                        REPORT OF INDEPENDENT ACCOUNTANTS


To the Board of Directors and Stockholders of ITI Technologies, Inc.

We have reviewed the consolidated balance sheet of ITI Technologies, Inc. as of
March 31, 1999, and the related consolidated statements of operations and cash
flows for the three-month periods ended March 31, 1999 and 1998. These financial
statements are the responsibility of the Company's management.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should
be made to the consolidated financial statements for them to be in conformity
with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of ITI Technologies, Inc. as of
December 31, 1998, and the related consolidated statements of operations, cash
flows and stockholders' equity for the year then ended (not presented herein);
and in our report dated March 23, 1999, we expressed an unqualified opinion on
those consolidated financial statements. In our opinion, the information set
forth in the accompanying consolidated financial statements is fairly stated, in
all material respects, in relation to the consolidated financial statements from
which it has been derived.



/s/ PricewaterhouseCoopers LLP

PRICEWATERHOUSECOOPERS LLP
Minneapolis, Minnesota
May 10, 1999


                                       3
<PAGE>


                             ITI TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

                                                        FOR THE THREE
                                                         MONTHS ENDED
                                                           MARCH 31,
                                                    -----------------------
                                                       1999          1998
                                                       ----          ----
                                                           (UNAUDITED)

Net sales.........................................  $ 27,829      $ 23,914
Cost of goods sold................................    14,829        13,050
                                                    ---------     ---------
Gross profit......................................    13,000        10,864
Operating expenses:
   Marketing, general and administrative..........     5,280         4,794
   Research and development.......................     1,983         2,014
   Amortization of intangible assets..............       353           353
                                                    ---------     ---------
Operating income..................................     5,384         3,703
Other income:
   Interest, net..................................       256           180
   Other, net.....................................         5            79
                                                    ---------     ---------
Income before income tax expense..................     5,645         3,962
Income tax expense................................     2,034         1,428
                                                    ---------     ---------
Net income........................................   $ 3,611       $ 2,534
                                                    =========     =========
Per share amounts:
Basic.............................................    $  .43        $  .30
Weighted average common shares
   outstanding....................................     8,420         8,487

Diluted...........................................    $  .41        $  .29
Weighted average common and common
   equivalent shares outstanding..................     8,853         8,863




The accompanying notes are an integral part of the consolidated financial
statements.
--------------------------------------------------------------------------------


                                       4
<PAGE>


                             ITI TECHNOLOGIES, INC.
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                           MARCH 31,       DECEMBER 31,
                                                                             1999              1998
                                                                         ------------      ------------
                                                                          (UNAUDITED)
                                     ASSETS
<S>                                                                      <C>               <C>    
Current assets:
      Cash and cash equivalents ....................................     $      4,903      $      5,594
      Accounts receivable ..........................................           20,541            19,037
      Notes receivable-dealer financing, current portion ...........            1,221             1,096
      Inventories ..................................................           25,613            25,201
      Deferred income taxes ........................................            1,223             1,223
      Other current assets .........................................              919             1,738
                                                                         ------------      ------------
          Total current assets .....................................           54,420            53,889

Property and equipment .............................................           12,009            10,647
Excess of cost over net assets acquired ............................           27,375            27,576
Other intangible assets ............................................           19,821            19,897
Notes receivable-dealer financing, net of current portion ..........            6,309             3,948
                                                                         ------------      ------------
          Total assets .............................................     $    119,934      $    115,957
                                                                         ============      ============
                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
      Accounts payable .............................................     $      5,178      $      6,874
      Accrued wages ................................................            2,125             2,045
      Other accrued expenses .......................................            2,386             1,955
                                                                         ------------      ------------
          Total current liabilities ................................            9,689            10,874
Income taxes .......................................................            7,676             7,676
                                                                         ------------      ------------
          Total liabilities ........................................           17,365            18,550
                                                                         ------------      ------------

Commitments and contingencies
Stockholders' equity:
      Common stock ($0.01 par value; 30,000 shares authorized;
          9,386 shares issued, 8,429 shares outstanding at
          March 31, 1999; 9,304 shares issued, 8,347 shares
          outstanding at December 31, 1998) ........................               94                93
      Additional paid-in capital ...................................           77,918            76,368
      Retained earnings ............................................           39,936            36,325
      Treasury stock, at cost (957 shares at March 31, 1999
          and December 31, 1998) ...................................          (15,379)          (15,379)
                                                                         ------------      ------------
          Total stockholders' equity ...............................          102,569            97,407
                                                                         ------------      ------------
          Total liabilities and stockholders' equity ...............     $    119,934      $    115,957
                                                                         ============      ============
</TABLE>

The accompanying notes are an integral part of the consolidated financial
statements.
--------------------------------------------------------------------------------

                                       5
<PAGE>


                             ITI TECHNOLOGIES, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                    FOR THE THREE
                                                                                     MONTHS ENDED
                                                                                       MARCH 31,
                                                                                ----------------------
                                                                                  1999          1998
                                                                                  ----          ----
                                                                                     (UNAUDITED)
<S>                                                                             <C>           <C>     
OPERATING ACTIVITIES:
Net income ................................................................     $  3,611      $  2,534
Adjustments to reconcile net income to net cash
    provided by operating activities:
    Amortization of intangible assets .....................................          379           378
    Depreciation and amortization .........................................          600           548
    Provision for doubtful accounts .......................................          207            59
    Changes in operating assets and liabilities:
        Accounts receivable ...............................................       (1,711)        1,172
        Inventories .......................................................         (412)          449
        Notes receivable-dealer financing .................................       (1,577)          (74)
        Other current assets ..............................................           56           471
        Accounts payable ..................................................       (1,696)         (225)
        Income taxes payable ..............................................          978           498
        Accrued wages and other accrued expenses ..........................          296           191
                                                                                --------      --------
Net cash provided by operating activities .................................          731         6,001
                                                                                --------      --------

INVESTING ACTIVITIES:
Additions to property and equipment .......................................       (1,962)         (533)
Additions to other intangible assets ......................................         (102)       (1,385)
Issuance of notes receivable related to dealer financing ..................         (909)
                                                                                --------      --------
Net cash used in investing activities .....................................       (2,973)       (1,918)
                                                                                --------      --------

FINANCING ACTIVITIES:
Proceeds from exercise of common stock options ............................        1,551           110
                                                                                --------      --------
Net cash provided by financing activities .................................        1,551           110
                                                                                --------      --------
NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS ......................................................         (691)        4,193
CASH AND CASH EQUIVALENTS
    AT BEGINNING OF PERIOD ................................................        5,594         5,838
                                                                                --------      --------
CASH AND CASH EQUIVALENTS
    AT END OF PERIOD ......................................................     $  4,903      $ 10,031
                                                                                ========      ========
</TABLE>

The accompanying notes are an integral part of the consolidated financial
statements.
--------------------------------------------------------------------------------

                                       6
<PAGE>


NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          BASIS OF PRESENTATION

            The unaudited consolidated statement of operations for the
            three-month periods ended March 31, 1999 and 1998, reflect, in the
            opinion of management of ITI Technologies, Inc. (the "Company"), all
            normal, recurring adjustments necessary for a fair statement of the
            results of operations for the interim periods. The results of
            operations for any interim period are not necessarily indicative of
            results for the full year. The consolidated balance sheet data as of
            December 31, 1998, was derived from audited consolidated financial
            statements but does not include all disclosures required by
            generally accepted accounting principles. The unaudited consolidated
            financial statements should be read in conjunction with the
            consolidated financial statements and notes thereto incorporated in
            the Company's Annual Report on Form 10-K for the year ended December
            31, 1998. PricewaterhouseCoopers LLP, the Company's independent
            accountants, have performed reviews of the interim consolidated
            financial statements included herein and their review report thereon
            accompanies this filing.

            The unaudited consolidated financial statements include the accounts
            of the Company and its wholly owned subsidiaries. All significant
            intercompany accounts and transactions have been eliminated.

2.          NOTES RECEIVABLE-DEALER FINANCING

            The Company provides financing to qualified dealers for their
            business needs. Loans to dealers that finance the cost of equipment
            and other account acquisition costs of the dealer are treated as
            cash flows from operations on the accompanying Consolidated
            Statement of Cash Flows. Loans to dealers to purchase account
            portfolios in an effort to expand their business are treated as
            investing activities on the accompanying Consolidated Statement of
            Cash Flows. In both cases, the Company receives a perfected security
            interest in the dealers monitoring contacts as well as other
            collateral considerations. All notes are made at market interest
            rates adjusted for credit and collateral factors with varied
            repayment terms between 36 to 72 months.

3.          SIGNIFICANT CUSTOMER

            As of March 31, 1999, one customer participating in the Company's
            dealer financing program had a note receivable balance due to the
            Company of $3.4 million.


--------------------------------------------------------------------------------
                                       7
<PAGE>


4.          LITIGATION

            On August 17, 1995, the Company commenced an action for patent
            infringement against Pittway Corporation and its subsidiary, Ademco
            Distribution Inc., in the United States District Court for the
            District of Minnesota. On March 9, 1998, the jury found that the
            Ademco VISTA Plus/5800 family of wireless security systems infringes
            the Company's Learn Mode patent and awarded the Company damages of
            approximately $36.0 million for lost profits and royalties. On April
            9, 1998, the Court entered an injunction prohibiting Pittway
            Corporation from manufacturing and marketing the Ademco 5800 series
            wireless products that infringe ITI's Learn Mode patent and awarded
            the Company prejudgment interest of approximately $3 million,
            bringing the total judgement to approximately $39 million. Pittway
            Corporation appealed the verdict. On March 4, 1999, the Federal
            Circuit Court of Appeals heard oral arguments on the case. The
            Company anticipates that the appeal will be resolved during the
            first half of 1999.

            Pittway has announced that in 1997 it had "introduced an improved
            method of enrolling transmitters in its VISTA series of control
            panels." Pittway calls this new method "QED." While the Company has
            maintained that Pittway's QED products also infringe the Company's
            Learn Mode patent, the judge would not allow the Company to add
            Pittway's QED products to the action commenced in August of 1995 to
            avoid any additional complication and delay. Accordingly, the
            Company commenced a second patent infringement lawsuit against
            Pittway and Ademco Distribution, Inc. on August 3, 1998, for
            infringement of the Company's Learn Mode patent. The suit was also
            filed in the United States District Court for the District of
            Minnesota.

            Costs associated with these actions and related appeal are being
            capitalized as a patent asset associated with the related technology
            and are included in other intangible assets on the consolidated
            balance sheet. As of March 31, 1999, and December 31, 1998, the
            Company has capitalized $4.9 million and $4.8 million of costs
            related to these lawsuits, respectively.

5.          EARNINGS PER SHARE

            The difference in the weighted average shares outstanding for
            calculating basic and diluted earnings per share is attributable to
            the assumed exercise of stock options under the Company's Stock
            Option Incentive Plan.

            The dilutive effect of all stock options outstanding during the
            three months ended March 31, 1999, was included in the calculation
            of the diluted per share earnings. During the three months ended
            March 31, 1998, approximately 140,000 stock options with exercise
            prices greater than the average market value of the Company's common
            stock were excluded from the computation of dilutive earnings per
            share.


--------------------------------------------------------------------------------
                                       8
<PAGE>


6.          OTHER FINANCIAL STATEMENT DATA (IN THOUSANDS):

<TABLE>
<CAPTION>
                                                           March 31,       December 31,
                                                             1999             1998
                                                         ------------      ------------
                                                         (UNAUDITED)
<S>                                                      <C>               <C>         
Accounts receivable:
   Accounts receivable .............................     $     21,893      $     20,182
   Allowance for doubtful accounts .................           (1,352)           (1,145)
                                                         ------------      ------------
         Total .....................................     $     20,541      $     19,037
                                                         ============      ============
Inventories:
   Raw materials ...................................     $     12,269      $     12,600
   Allowance for obsolescence ......................           (1,369)           (1,360)
                                                         ------------      ------------
                                                               10,900            11,240
   Work-in-process .................................            5,711             5,615
   Finished goods ..................................            9,002             8,346
                                                         ------------      ------------
         Total .....................................     $     25,613      $     25,201
                                                         ============      ============

Property and equipment:
   Machinery and equipment .........................     $     14,236      $     12,433
   Furniture and fixtures ..........................            4,699             4,545
   Land, building and improvements .................            1,790             1,786
                                                         ------------      ------------
                                                               20,725            18,764
   Accumulated depreciation and amortization .......           (8,716)           (8,117)
                                                         ------------      ------------
         Total .....................................     $     12,009      $     10,647
                                                         ============      ============

Other intangible assets:
   Trademarks and trade names ......................     $     13,829      $     13,829
   Technology and patents ..........................            5,438             5,336
   Customer lists ..................................            3,007             3,007
   Other ...........................................              626               626
                                                         ------------      ------------
                                                               22,900            22,798
   Accumulated amortization ........................           (3,079)           (2,901)
                                                         ------------      ------------
         Total .....................................     $     19,821      $     19,897
                                                         ============      ============

Other accrued expenses:
   Warranty ........................................     $        650      $        650
   Professional fees ...............................              419               432
   Other ...........................................            1,317               873
                                                         ------------      ------------
         Total .....................................     $      2,386      $      1,955
                                                         ============      ============
</TABLE>


--------------------------------------------------------------------------------
                                       9
<PAGE>


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

            When used in this discussion, the words "believes," "anticipates"
      and similar expressions are intended to identify forward-looking
      statements. Such statements are subject to certain risks and uncertainties
      which could cause actual results to differ materially from those
      projected. Readers are cautioned not to place undue reliance on these
      forward-looking statements which speak only as of the date hereof. The
      Company undertakes no obligation to publish revised forward-looking
      statements to reflect events or circumstances after the date hereof or to
      reflect the occurrence of unanticipated events. Readers are also urged to
      carefully review and consider the various disclosures made by the Company
      which attempt to advise interested parties of the factors which affect the
      Company's business, not only in this report, but also in the Company's
      periodic reports filed with the Securities and Exchange Commission.

RESULTS OF OPERATIONS:

            NET SALES. Net sales increased $3.9 million, or 16.4%, from $23.9
      million for the three months ended March 31, 1998, to $27.8 million for
      the three months ended March 31, 1999. International sales, excluding
      Canada, increased 24.4% over the first quarter of 1998 driven primarily by
      the NX product line. Sales to utilities, commercial and domestic
      distribution channels were flat or slightly down from the first quarter of
      1998. Sales to the Company's traditional dealers, both large and small,
      increased 24.8% from the first quarter of 1998. The increases in sales are
      primarily attributable to volume increases.

            GROSS PROFIT. Gross profit increased $2.1 million from the first
      quarter of 1998 to $13.0 million for the first quarter of 1999 and
      increased as a percentage of net sales from 45.4% to 46.7%. The increase
      in gross margin is due primarily to the leveraging of fixed manufacturing
      costs over the increased sales volume. Margins were also favorably
      impacted by an increased volume of higher margin wireless products being
      incorporated with the NX-hybrid product offerings.

            MARKETING, GENERAL AND ADMINISTRATIVE EXPENSES. Marketing, general
      and administrative expenses increased from $4.8 million for the first
      quarter of 1998 to $5.3 million for the first quarter of 1999. The
      increase is primarily due to increased employment costs and additions to
      the bad debt reserve to reflect the more diverse nature of the Company's
      customer base. As a percentage of net sales, marketing, general and
      administrative expenses for the first quarter decreased from 20.0% in 1998
      to 19.0% in 1999.


--------------------------------------------------------------------------------
                                       10
<PAGE>


            RESEARCH AND DEVELOPMENT EXPENSE. Research and development expenses
      totaled approximately $2.0 million for both the first quarter of 1998 and
      1999. As a percentage of net sales, research and development expenses for
      the first quarter decreased from 8.4% in 1998 to 7.1% in 1999. The
      decrease in research and development expense as a percentage of net sales
      was primarily due to a combination of increased sales during the first
      quarter of 1999 and the fact that the Company had a high level of product
      in the prototype and regulatory approval stages in 1998 due to new product
      introductions and changes in UL regulations. The Company also continues
      development on its Advent(TM) platform, which is designed for the
      commercial burglary and fire market. The Company is committed to
      maintaining a high level of product development efforts. Anticipated
      expenditures for research and development activities for the year ended
      December 31, 1999, will be between 7% and 8% of net sales.

            AMORTIZATION OF INTANGIBLE ASSETS. Amortization of
      acquisition-related intangible assets remained constant at $353,000 for
      both the first quarter of 1998 and 1999.

            NET INTEREST INCOME. Net interest income increased from $180,000 for
      the first quarter of 1998 to $256,000 for the first quarter of 1999. The
      increase is the result of additional participation in the dealer financing
      program. Interest earned under this program increased from $63,000 in 1998
      to $206,000 in 1999.

            INCOME TAX EXPENSE. Income tax expense increased from $1.4 million
      for the first quarter of 1998 to $2.0 million for the first quarter of
      1999. The Company's effective tax rate remained constant for these periods
      and varied from the federal statutory rate primarily due to state income
      taxes, net of federal benefit, and the non-deductibility for income tax
      purposes of the amortization of excess of cost over net assets acquired.

LIQUIDITY AND CAPITAL RESOURCES

            The Company has historically funded its operations primarily with
      cash from operations. For the first three months of 1999, the Company
      generated net cash from operating activities of $731,000. Net cash
      provided by operating activities resulted primarily from $3.6 million in
      net income, adjusted for $979,000 of non-cash depreciation and
      amortization charges, less $4.1 million used from changes in operating
      assets and liabilities, principally accounts receivable, accounts payable
      and funding of the Company's dealer financing program.

            During the first quarter of 1999, the Company invested $2.0 million
      in property and equipment, $1.2 million of which related to the expansion
      at the Company's Gladewater, Texas facility. For the year ended December
      31, 1999, the Company expects that purchases of property and equipment
      will be approximately $4.0 million. In addition, the Company invested
      $909,000 in notes receivable related to dealer financing of a purchased
      account portfolio.

            For the first three months of 1999, cash provided by the exercise of
      stock options, including the related tax benefit, was $1.6 million.

--------------------------------------------------------------------------------
                                       11
<PAGE>


            A substantial amount of the Company's working capital is invested in
      accounts and notes receivable and inventories. The Company periodically
      reviews accounts and notes receivable for noncollectibility and
      inventories for obsolescence and establishes allowances it believes are
      appropriate.

            On June 18, 1998, the Board of Directors of the Company authorized
      the repurchase, from time to time, of up to 1,000,000 shares of the
      Company's common stock in the open market or in private transactions.
      Total repurchases under this authorization of 245,200 shares at a total
      cost of $6.3 million occurred during the third quarter of 1998. The Board
      also canceled the previous stock repurchase program authorized on November
      22, 1996, to repurchase up to 900,000 shares, under which the Company had
      acquired 711,500 shares in 1996 and 1997.

            The Company believes that its current cash position, along with cash
      flows from operations and funds available through the Company's credit
      facility, will be adequate to fund its working capital and capital
      expenditure requirements along with any activity related to its stock
      repurchase program at least through the end of 1999.

EFFECT OF INFLATION AND FOREIGN CURRENCY TRANSACTIONS

            The Company believes that inflation and foreign currency
      fluctuations have not had a significant effect on its operations.
      Currently, the Company does not conduct any transactions or maintain any
      accounting records in any European currency. As such, the Company
      anticipates that there will be no material effect on its operations as a
      result of the recent conversion by eleven member states of the European
      Union to a common currency on January 1, 1999.

IMPACT OF THE YEAR 2000 ISSUE

            The Year 2000 issue is the inability of many computer programs to
      correctly identify dates occurring after December 31, 1999, because they
      use two digits rather than four digits to identify years. This could cause
      a computer system failure or miscalculations, resulting in disruptions of
      operations including, among other things, a temporary inability to process
      transactions or engage in similar normal business activities.

            The Company's assessment of the Year 2000 issue is substantially
      complete. The Company believes that with modifications to existing
      software and conversions to new software, the Year 2000 issue will not
      pose significant operational problems for its computer systems or the
      Company and the cost of such modifications to be immaterial.

--------------------------------------------------------------------------------
                                       12
<PAGE>


            In addition to internal Year 2000 remediation activities, the
      Company is in contact with key suppliers and customers to ensure no
      interruption in the relationship between the Company and these important
      third parties from the Year 2000 issue. A comprehensive survey of all
      vendors and customers has not been, nor will one be, undertaken. All
      efforts thus far have been focused on key vendors and customers. If these
      third parties do not convert their systems in a timely manner and in a way
      that is compatible with the Company's systems, the Year 2000 issue could
      have a material adverse effect on Company operations. The Company believes
      that its actions with key suppliers and customers will minimize these
      risks.

            The vast majority of the Company's products are not date-sensitive.
      The Company has collected information on current and discontinued
      date-sensitive products. This information is available to customers as of
      the date of this filing.

            At this time, the Company does not have in place a comprehensive,
      global contingency plan relative to potential Year 2000 disruptions.
      Rather, each significant system either has been repaired and tested, or is
      being reworked. For systems currently being reworked, contingency plans
      exist to address unforeseen problems.


--------------------------------------------------------------------------------
                                       13
<PAGE>


                           PART II - OTHER INFORMATION

Item 1.     Legal Proceedings.

            On August 17, 1995, the Company commenced an action for patent
            infringement against Pittway Corporation and its subsidiary, Ademco
            Distribution Inc., in the United States District Court for the
            District of Minnesota. On March 9, 1998, the jury found that the
            Ademco VISTA Plus/5800 family of wireless security systems infringes
            the Company's Learn Mode patent and awarded the Company damages of
            approximately $36 million for lost profits and royalties. On April
            9, 1998, the Court entered an injunction prohibiting Pittway
            Corporation from manufacturing and marketing the Ademco 5800 series
            wireless products that infringe the Company's Learn Mode patent and
            awarded the Company prejudgment interest of approximately $3
            million, bringing the total judgment to approximately $39 million.
            Pittway Corporation has appealed the verdict. On March 4, 1999, the
            Federal Circuit Court of Appeals heard oral arguments on the case.
            The Company anticipates that the appeal will be resolved during the
            first half of 1999.

            Pittway has announced that in 1997 it had "introduced an improved
            method of enrolling transmitters in its VISTA series of control
            panels." Pittway calls this new method "QED." While the Company has
            maintained that Pittway's QED products also infringe the Company's
            Learn Mode patent, the judge would not allow the Company to add
            Pittway's QED products to the action commenced in August of 1995 to
            avoid any additional complication and delay. Accordingly, the
            Company commenced a second patent infringement lawsuit against
            Pittway and Ademco Distribution, Inc. on August 3, 1998, for
            infringement of the Company's Learn Mode patent. The suit was also
            filed in the United States District Court for the District of
            Minnesota. Costs associated with these actions and related appeal
            are being capitalized as a patent asset associated with the related
            technology.

            In addition, the Company experiences routine litigation in the
            normal course of its business. The Company does not believe that any
            of this routine litigation will have a material adverse effect on
            the financial condition or results of operations of the Company.
            Costs associated with routine litigation are expensed in the period
            incurred.

Item 5.     Other Information.

            None.


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<PAGE>


Item 6.     Exhibits and Reports on Form 8-K.

            (a)   The following exhibits are filed as part of this Quarterly
                  Report on Form 10-Q:

                  15.  Letter regarding unaudited interim financial information.

                  27.1 Financial data schedule (for electronic filing purposes
                       only).

            (b)   No Current Reports on Form 8-K were filed by the Company
                  during the quarter ended March 31,1999, or during the period
                  from March 31, 1999, to the date of this Quarterly Report on
                  Form 10-Q.


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<PAGE>


                                   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.


Dated:  May 17, 1999                      ITI TECHNOLOGIES, INC.



                                          By  /s/ Jack A. Reichert
                                              ---------------------------------
                                              Jack A. Reichert
                                              Vice President of Finance
                                             (Chief Accounting Officer)


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