<PAGE>   1
================================================================================

                                    FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

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

For the quarterly period ended March 29, 1998

                                       OR

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934  [NO FEE REQUIRED]

For the transition period from           to

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

                          Commission File No.: 0-14685

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

                DELAWARE                                          51-0271821
     (State or other jurisdiction of                           (I.R.S. Employer
     incorporation or organization)                          Identification No.)

      14800 CONFERENCE CENTER DRIVE
          SUITE 400, WESTFIELDS

           CHANTILLY, VIRGINIA                                      20151
(Address of principal executive offices)                          (Zip Code)

       Registrant's telephone number, including area code: (703) 802-9200

         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 and (2) has been subject to such filing
requirements for the past 90 days. Yes /x/ No -

         As of May 1, 1998, there were 11,556,597 shares of Common Stock of the
Registrant outstanding.

================================================================================
<PAGE>   2

                                 FORM 10-Q INDEX

                         PART I - FINANCIAL INFORMATION

<TABLE>

Item 1.  Financial Statements

<S>                                                                             <C>
         Consolidated Balance Sheets - March 29, 1998 and December 28, 1997           3

         Consolidated Statements of Income - Three Months Ended

           March 29, 1998 and March 30, 1997                                          4

         Consolidated Statements of Cash Flows - Three Months Ended

           March 29, 1998 and March 30, 1997                                          5

         Notes to Consolidated Financial Statements                              6 - 10

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

           and Results of Operations                                            11 - 14


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                                           14

Item 2.  Changes in Securities                                                       14

Item 3.  Defaults Upon Senior Securities                                             15

Item 4.  Submission of Matters to a Vote of Security Holders                         15

Item 5.  Other Information                                                           15

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

Signatures                                                                           16

Index to Exhibits                                                                   E-1
</TABLE>


                                     Page 2
<PAGE>   3
                         PART I. - FINANCIAL INFORMATION

Item 1.   Financial Statements

                      GENICOM CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                  MARCH 29,       DECEMBER 28,
(In thousands, except share data)                                   1998             1997
                                                                  ---------       -----------
                                                                 (UNAUDITED)
<S>                                                               <C>             <C>
ASSETS

CURRENT ASSETS:
    Cash and cash equivalents                                     $   3,299        $   4,622
    Accounts receivable, less allowance for
        doubtful accounts of $4,724 and $4,470                       93,580           89,692
    Other receivables                                                 2,280            3,252
    Inventories                                                      64,260           67,553
    Prepaid expenses and other assets                                10,571            8,390
                                                                  ---------        ---------
        TOTAL CURRENT ASSETS                                        173,990          173,509
Property, plant and equipment, net                                   39,494           36,146
Goodwill                                                             33,522           33,800
Intangibles and other assets                                          5,562            6,594
                                                                  ---------        ---------
                                                                  $ 252,568        $ 250,049
                                                                  =========        =========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

    Current portion of long-term debt                             $   4,032        $   6,391
    Accounts payable and accrued expenses                            78,666           84,578
    Deferred income                                                  16,878           16,350
                                                                  ---------        ---------
        TOTAL CURRENT LIABILITIES                                    99,576          107,319
Long-term debt, less current portion                                 95,000           87,072
Other non-current liabilities                                        10,407           10,262
                                                                  ---------        ---------
        TOTAL LIABILITIES                                           204,983          204,653
STOCKHOLDERS' EQUITY:

    Common stock, $0.01 par value; 18,000,000 shares
        authorized, 11,538,597 and 11,365,750 shares issued
        and outstanding                                                 115              114
    Additional paid-in capital                                       28,868           26,959
    Retained earnings                                                20,192           20,020
    Foreign currency translation adjustment                          (1,590)          (1,697)
                                                                  ---------        ---------
        TOTAL STOCKHOLDERS' EQUITY                                   47,585           45,396
                                                                  ---------        ---------
                                                                  $ 252,568        $ 250,049
                                                                  =========        =========
</TABLE>


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


                                     Page 3
<PAGE>   4
                      GENICOM CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED,
                                                MARCH 29,     MARCH 30,
(In thousands, except per share data)             1998          1997
                                                ---------     ---------
<S>                                             <C>           <C>
REVENUES, NET:
    Products                                    $ 80,331       $65,634
    Services                                      41,779        30,711
                                                --------       -------
                                                 122,110        96,345
                                                --------       -------

OPERATING COSTS AND EXPENSES:
    Cost of revenues:
       Products                                   56,960        44,956
       Services                                   37,736        27,424
    Selling, general and administration           20,271        17,117
    Engineering, research and
       product development                         4,325         2,545
                                                --------       -------
                                                 119,292        92,042
                                                --------       -------

OPERATING INCOME                                   2,818         4,303
Interest expense, net                              2,593         1,373
                                                --------       -------

INCOME BEFORE INCOME TAXES                           225         2,930
Income tax expense                                    56           413
                                                --------       -------

NET INCOME                                      $    169       $ 2,517
                                                ========       =======

Earnings per common share (basic)               $   0.01       $  0.23
                                                ========       =======

Earnings per common share (diluted)             $   0.01       $  0.21
                                                ========       =======

Weighted average number of  common shares
   outstanding (basic)                            11,464        10,998
                                                ========       =======

Weighted average number of common shares
   and dilutive shares (diluted)                  12,672        12,189
                                                ========       =======
</TABLE>

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


                                     Page 4
<PAGE>   5
                      GENICOM CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED,
                                                                  MARCH 29,       MARCH 30,
(In thousands)                                                      1998            1997
                                                                  --------        --------
<S>                                                               <C>             <C>
Cash flows from operating activities:
    Net income                                                     $   169        $  2,517
    Adjustments to reconcile net income to cash provided
      by (used in) operating activities:
        Depreciation                                                 3,477           3,358
        Amortization                                                 1,994           1,162
        Changes in assets and liabilities:
              Accounts receivable                                   (2,916)         (1,441)
              Inventories                                            3,218          (5,831)
              Accounts payable and accrued expenses                 (3,340)         (9,036)
              Deferred income                                          528             835
              Other                                                     (4)           (100)
                                                                   -------        --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                  3,126          (8,536)
                                                                   -------        --------
Cash flows from investing activities:
    Additions to property, plant and equipment                      (6,727)         (2,666)
    Other investing                                                 (1,095)
                                                                   -------        --------
NET CASH USED IN INVESTING ACTIVITIES                               (7,822)         (2,666)
                                                                   -------        --------
Cash flows from financing activities:
    Borrowings on long-term debt                                     8,521          10,100
    Payments on long-term debt                                      (2,952)         (8,282)
    Bank overdraft                                                  (2,172)          5,682
    Financing costs                                                    (62)           (155)
                                                                   -------        --------
NET CASH PROVIDED BY FINANCING ACTIVITIES                            3,335           7,345
                                                                   -------        --------
Effect of exchange rate changes on cash and cash equivalents            38             (65)
                                                                   -------        --------
Net decrease in cash and cash equivalents                           (1,323)         (3,922)
Cash and cash equivalents at beginning of period                     4,622           5,866
                                                                   -------        --------
Cash and cash equivalents at end of period                         $ 3,299        $  1,944
                                                                   =======        ========
</TABLE>

The accompanying notes are an integral part of these financial statements

                                     Page 5

<PAGE>   6
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.       In the opinion of management, the accompanying unaudited consolidated
         financial statements of GENICOM Corporation and subsidiaries (the
         "Company" or "GENICOM") contain all adjustments (consisting only of
         normal recurring accruals) necessary to present fairly the Company's
         consolidated financial position as of March 29, 1998, and the results
         of operations and cash flows for the periods indicated. Certain
         information and footnote disclosures normally included in financial
         statements prepared in accordance with generally accepted accounting
         principles have been condensed or omitted. It is suggested that these
         condensed consolidated financial statements be read in conjunction with
         the financial statements and notes thereto included in the Company's
         December 28, 1997 Annual Report. The results of operations for the
         three months ended March 29, 1998, are not necessarily indicative of
         the operating results to be expected for the full year.

2.       Inventories are stated at the lower of cost, determined on the
         first-in, first-out method, or market. Inventories consist of, in
         thousands:

<TABLE>
<CAPTION>
                     MARCH 29,    DECEMBER 28,
                       1998          1997
                     ---------    ------------
<S>                  <C>          <C>
Raw Materials         $ 6,480       $ 9,295
Work in process         1,564         1,994
Finished goods         56,216        56,264
                      -------       -------
                      $64,260       $67,553
                      =======       =======
</TABLE>

3.       Earnings per share are based upon the weighted average number of common
         shares and dilutive common share equivalents (using the treasury stock
         method) outstanding during the period.

<TABLE>
<CAPTION>
                                          Three Months Ended March 29, 1998
                                         ------------------------------------
                                         Income        Shares       Per Share
                                         ------       --------      ---------
<S>                                      <C>          <C>           <C>
BASIC EPS

Income available to shareholders         $  169         11,464       $  0.01
                                         ------       --------       -------

Weighted shares from stock options                      1,208
                                                      -------

DILUTED EPS                              $  169         12,672       $  0.01
                                         ------       --------       -------

                                          Three Months Ended March 30, 1997
                                         -----------------------------------

BASIC EPS

Income available to shareholders         $2,517         10,998       $  0.23
                                         ------       --------       -------

Weighted shares from stock options                       1,191
                                                      --------

DILUTED EPS                              $2,517         12,189       $  0.21
                                         ------       --------       -------
</TABLE>


                                     PAGE 6
<PAGE>   7
4.       Segment Information

         The Company operates in the serial, line and page printer business
         where it designs, manufactures and markets printers as well as the
         related supplies and spare parts (Document Solutions company). The
         Company's operation in services provides customers with a full range of
         network information technology services with field services, depot
         repair, parts and logistics and network products (Enterprising Service
         Solutions company). The production and sales of relay products, a
         product line the Company sold in November 1997, comprised less than 10%
         of revenue, operating income and identifiable assets. This product line
         is included in the Document Solutions segment for 1997. Revenue between
         industry segments are not material.

<TABLE>
<CAPTION>
                                     Three Months Ended or As of
                                     March 29,        March 30,
(in thousands)                         1998              1997
                                     ---------        ---------
<S>                                  <C>              <C>
REVENUE
Document Solutions                   $  80,331        $  65,634
Enterprising Service Solutions          41,779           30,711
                                     ---------        ---------
                                     $ 122,110        $  96,345
                                     ---------        ---------

OPERATING INCOME
Document Solutions                   $   6,276        $   6,583
Enterprising Service Solutions          (3,458)          (2,280)
                                     ---------        ---------
                                     $   2,818        $   4,303
                                     ---------        ---------

DEPRECIATION AND AMORTIZATION
Document Solutions                   $   1,548        $   1,320
Enterprising Service Solutions           3,540            2,896
Corporate and other                        383              304
                                     ---------        ---------
                                     $   5,471        $   4,520
                                     ---------        ---------

ASSETS
Document Solutions                   $ 137,877        $ 114,213
Enterprising Service Solutions          91,549           61,873
Corporate and other                     23,142           11,515
                                     ---------        ---------
                                     $ 252,568        $ 187,601
                                     ---------        ---------

CAPITAL EXPENDITURES
Document Solutions                   $   1,065        $     632
Enterprising Service Solutions           4,191            1,704
Corporate and other                      1,471              330
                                     ---------        ---------
                                     $   6,727        $   2,666
                                     ---------        ---------
</TABLE>


5.       Business Acquisitions

         Novadyne Computer Systems, Incorporated

         On November 14, 1997, the Company purchased selected assets of Novadyne
         Computer Systems, Inc. for approximately $17.3 million including the
         assumptions of certain liabilities. The transaction was financed
         through the Company's credit facility with NationsBank of Texas, N.A.


                                     Page 7
<PAGE>   8
         Pro Forma Financial Information

         Presented below are the unaudited actual and pro forma statements of
         operations as if the acquired operations had been integrated into the
         Company effective December 30, 1996. Accounting adjustments have been
         made in the pro forma financial information to include estimated costs
         of the combinations and to reflect the integration and consolidation of
         facilities and personnel. Included in such integration costs are
         relocation costs associated with facilities and employee expenses. This
         pro forma information has been prepared for comparative purposes only
         and does not purport to be indicative of the results that actually
         would have been obtained if the acquired operations had been conducted
         by the Company during the period presented, and is not intended to be a
         projection of future results. Presentation is in thousands except for
         earnings per share amounts.

<TABLE>
<CAPTION>
                                                 Actual Three        Pro Forma Three
                                                 Months Ended         Months Ended
                                                March 29, 1998       March 30, 1997
                                                --------------       --------------
<S>                                             <C>                  <C>
         Revenue                                   $122,110             $105,030
         Pre-Tax Income                                 225                4,000
                                                   --------             --------
         Net Income                                     169                3,159
                                                   --------             --------
         Earnings per share - Basic                $    .01             $    .29
                                                   --------             --------
         Earnings per share - Diluted                   .01                  .26
                                                   --------             --------
         Weighted average shares outstanding

           Basic                                     11,464               10,998
                                                   --------             --------
           Diluted                                   12,672               12,189
                                                   --------             --------
</TABLE>

         Digital Equipment Corporation Agreements

         On August 10, 1997, the Company purchased Digital Equipment
         Corporation's Printing Systems Business and became Digital's exclusive
         supplier of Digital-branded printer products. The multi-year agreement
         also established a cooperative alliance where the Company will provide
         a broad line of products, business planning, technical support and
         distribution services to Digital's marketing channels in each of their
         global geographies. The Company and Digital have also agreed to pursue
         joint marketing programs for each other's capabilities, products and
         services.

6.       Commitments and Contingencies

         Environmental matters:

         The Company and the former owner of its Waynesboro, Virginia facility,
         General Electric Company ("G.E."), have generated and managed hazardous
         wastes at the facility for many years as a result of their use of
         certain materials in manufacturing processes. The Company and the
         United States Environmental Protection Agency ("EPA") have agreed to a
         corrective action consent order (the "Order"), which became effective
         on September 14, 1990. The Order requires the Company to undertake an
         investigation of solid waste management units at its Waynesboro,
         Virginia facility and to conduct a study of any necessary corrective
         measures that may be required. The investigative work under the Order
         was completed in December 1997 and the Company submitted a report to
         the EPA. The EPA has not yet responded to the report. Although not
         required by the Order, the Company has agreed to install and operate an
         interim ground water stabilization system, subject to EPA approval of
         the system design. The interim groundwater stabilization program may be
         chosen as the final remedy for the site, or additional corrective
         measures may eventually be required. It is


                                     Page 8
<PAGE>   9
         not possible to reliably estimate the costs that any such possible
         additional corrective measures would entail. However, if additional
         corrective measures are required, the Company expects that it will
         enter into discussion with EPA concerning their scope and a further
         order for that purpose.

         The Company has been notified by the EPA that it is one of 700
         potentially responsible parties ("PRPs") under the Comprehensive
         Environmental Response, Compensation and Liability Act of 1980, for
         necessary corrective action at a hazardous waste disposal site in
         Greer, South Carolina. In prior years, the Company arranged for the
         transportation of wastes to the site for treatment or disposal. During
         1995, the PRPs entered into an administrative consent order with EPA
         under which they will undertake a remedial investigation and
         feasibility study which is currently underway.

         Atlantic Design:

         December of 1995, the Company entered into a five year agreement which
         was extended an additional year in June 1996 (renewable annually after
         6 years) with Atlantic Design Company, a subsidiary of Ogden Services
         Corporation, pursuant to which ADC acquired the Company's manufacturing
         operations in McAllen, Texas and Reynosa, Mexico. Under the agreement,
         ADC is committed to manufacturing a significant part of the Company's
         impact printer products, printed circuit boards, related supplies and
         spare parts, while the Company retains design, intellectual and
         distribution rights with respect thereto.

         Ogden Services Corporation has divested certain ADC facilities and has
         been attempting to divest the Reynosa operations. The Company's
         contract with ADC contains a clause requiring GENICOM's consent to the
         sale, which consent cannot be unreasonably withheld. The Company has
         evaluated preliminary information received from ADC concerning a
         potential buyer, but, to the Company's knowledge, the sale of the
         Reynosa facility is not imminent.

         In August 1997, ADC filed a Demand for Arbitration with the American
         Arbitration Association seeking a legal interpretation of the pricing
         provisions in the agreement between ADC and the Company and the
         recovery of an amount in dispute said to be approximately $2 million.
         The Company filed a counterclaim against ADC for approximately $10
         million alleging various breaches of the agreement. Ogden Services
         Corporation and ADC have filed counterclaims against the Company
         seeking damages in excess of $10 million alleging additional various
         breaches by the Company of the agreement. The Company, Ogden and ADC
         have engaged in settlement discussions, but no agreement has been
         reached to date. Discovery is in progress in the arbitration and
         hearings are scheduled to begin in July 1998. In April 1998, Ogden and
         ADC filed an amended claim to seek recision of the agreement. The
         Company does not believe there is any basis for such a claim and is
         vigorously contesting such assertion. While the Company remains hopeful
         that a negotiated solution can be reached, the Company cannot presently
         predict the outcome of this matter or how the respective claims will be
         resolved. There can be no assurance that such outcomes will not have a
         material adverse effect upon the Company.

         Other matters:

         In the ordinary course of business, the Company is party to various
         environmental, administrative and legal proceedings. In the opinion of
         management, the Company's liability, if any, in all pending litigation
         or other legal proceedings, other than those


                                     Page 9
<PAGE>   10
         discussed above, will not have a material effect upon the financial
         condition, results of operations or liquidity of the Company.

7.       The Company adopted SFAS 130, "Reporting Comprehensive Income", in the
         first quarter of 1998. The Company's income, if reported on a
         comprehensive basis, would be $249,000 for the first quarter of 1998.
         The Company had a gain in its foreign currency translation amount of
         $107,000 from December 28, 1997, with an after tax gain of $80,000. For
         the first quarter of 1997, the foreign currency translation loss was
         $139,000, with an after tax loss of $119,000. The Company's
         comprehensive income for the first quarter of 1997 would have been $2.4
         million.


                                     Page 10
<PAGE>   11
Item 2.  Management's Discussion and Analysis of Results of Operations and 
         Financial Condition:

                              RESULTS OF OPERATIONS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
(in millions)                                 1ST QUARTER               1ST QUARTER
                                                  1998        CHANGE        1997
-------------------------------------------------------------------------------------
<S>                                           <C>             <C>       <C>    
Revenues - Enterprising Service Solutions       $   41.8      $  11.1     $  30.7
Revenues - Document Solutions                       80.3         14.7        65.6
                                                --------      -------     -------

Total Revenues                                  $  122.1      $  25.8     $  96.3
                                                --------      -------     -------
Percentage change                                                26.8%
-------------------------------------------------------------------------------------
</TABLE>

         Revenue in the first quarter of 1998 increased 26.8% from the first
         quarter of 1997 primarily due to the agreements with Digital Equipment
         ("DEC") and the acquisition of certain assets of Novadyne Computer
         Systems. Documents Solutions company ("DSC") revenue was 31.0% higher
         than the first quarter of 1997 as a result of the DEC agreements.
         Enterprising Service Solutions ("ESSC") revenue increased 36.0% from
         the prior year quarter. The increase in ESSC revenue was principally
         due to the acquisition of certain assets of Novadyne Computer Systems
         which increased revenues in field service, a contract with NASDAQ for
         upgrading their computer network and increased integration business in
         the Canadian subsidiary. In November of 1997, the Company sold its
         relay product line which accounted for $4.3 million in revenue in the
         first quarter of 1997. This revenue is included in the above chart in
         Document Solutions.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
(in millions)                                1ST QUARTER   4TH QUARTER   1ST QUARTER
                                                1998          1997          1997
------------------------------------------------------------------------------------
<S>                                          <C>           <C>           <C>    
Order backlog                                 $  49.6        $  44.9      $  63.3
Change: 1st Quarter of 1998 compared to                     
              Amount                                             4.7        (13.7)
              Percentage                                        10.5%       (21.6)
------------------------------------------------------------------------------------
</TABLE>                                                  

         The decrease in order backlog from the 1997 first quarter primarily
         reflects the effect of the sale of the relay product line. The relay
         backlog was $10.4 million as of March 30, 1997. The increase in backlog
         from the fourth quarter of 1997 is principally due to the annual
         contracts ESSC records in January, partially offset by a decline in DSC
         backlog. The Company's backlog as of any particular date should not be
         the sole measurement used in determining sales for any future period.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
(in millions)                                     1ST QUARTER               1ST QUARTER
                                                      1998       CHANGE         1997
---------------------------------------------------------------------------------------
<S>                                               <C>            <C>        <C>    
Gross margin - Enterprising Service Solutions       $   4.0      $   0.7      $   3.3
Gross margin - Document Solutions                      23.4          2.8         20.6
                                                    -------      -------      -------
Total gross margin                                     27.4          3.5         23.9
                                                    -------      -------      -------
As a % of revenue                                      22.4%                     24.8%
---------------------------------------------------------------------------------------
</TABLE>

         Gross margin, as a percent of revenue, decreased from 24.8% in the
         first quarter of 1997 to 22.4% in the first quarter of 1998. As a
         percent of revenue, gross margin for DSC decreased to 29.1% in 1998
         from 32.5% in 1997. This decrease is primarily the result of the lower
         margins associated with the DEC products. For ESSC, gross margin
         decreased from 10.7% 


                                    Page 11
<PAGE>   12
         for the first three months of 1997 to 9.7% for 1998. The gross margin
         decline was principally the result of lower revenue in ESSC,
         particularly at the Louisville depot which had approximately the same
         fixed costs as the Waynesboro and Bedford depots combined in the first
         quarter of 1997.

<TABLE>
<CAPTION>
-------------------------------------------------------------------
(in millions)                 1ST QUARTER               1ST QUARTER
                                  1998       CHANGE        1997
-------------------------------------------------------------------
<S>                           <C>            <C>        <C>    
Operating expenses:

Selling, general and
    administrative              $  20.3      $   3.2      $  17.1
Engineering, research and
    product development             4.3          1.8          2.5
                                -------      -------      -------
Total                           $  24.6      $   5.0      $  19.6

As a % of revenue                  20.1%                     20.4%
------------------------------------------------------------------
</TABLE>

         The increase of $5.0 million in operating expenses from the first
         quarter of 1997 was primarily a result of elevated levels of spending
         needed to support the higher revenue in 1998. Sales and marketing
         expenses were higher to support the increased marketing effort for ESSC
         and for the introduction of new printer products. Engineering increased
         $1.8 million due to development costs related to the travel printer
         business and new products for the DEC channel. These increases were
         partially offset by cost containment programs.

<TABLE>
<CAPTION>
-----------------------------------------------------------------
(in millions)             1ST QUARTER                 1ST QUARTER
                             1998          CHANGE        1997
-----------------------------------------------------------------
<S>                       <C>              <C>        <C>   
Interest expense, net       $   2.6        $  1.2       $  1.4
                                                     
Percentage change                            85.7%   
-----------------------------------------------------------------
</TABLE>
                                                 
         Interest expense increased primarily as a result of the higher debt
         needed to support the working capital needs of the business and higher
         development costs associated with new product introduction. Working
         capital has increased as a result of the DEC agreements and the
         acquisition of Novadyne Computer Systems.

<TABLE>
<CAPTION>
-------------------------------------------------------------
(in millions)           1ST QUARTER               1ST QUARTER
                           1998        CHANGE        1997
-------------------------------------------------------------
<S>                     <C>           <C>         <C>   
Income tax expense       $   0.1      $  (0.3)      $  0.4

Effective tax rate          24.9%                     14.1%
-------------------------------------------------------------
</TABLE>

         The Company's effective income tax rate for the first quarter of 1998
         was 24.9% as compared to 14.1% for the year-ago period. During the
         first quarter of 1998, the tax rate was affected by the anticipated
         utilization of foreign operating losses. In 1997, the rate was affected
         by the reversal of the valuation allowance associated with certain tax
         assets in Australia of approximately $0.5 million.


                                     Page 12
<PAGE>   13
LIQUIDITY AND CAPITAL RESOURCES

<TABLE>
<CAPTION>
---------------------------------------------------------------------
(in millions)                             1ST QUARTER     1ST QUARTER
                                             1998             1997
---------------------------------------------------------------------
<S>                                       <C>             <C>    
Cash provided by (used in) operations       $  3.1          $ (8.5)
                                                       
Cash used in investing activities             (7.8)           (2.7)
                                                       
Cash provided by financing activities          3.3             7.3
---------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------
(in millions)                              1ST QUARTER     4TH QUARTER
                                               1998           1997
----------------------------------------------------------------------
<S>                                        <C>             <C>       
Working capital                             $    74.4      $     66.2
                                            
Inventories                                      64.3            67.6
                                            
Debt obligations                                 99.0            93.5
                                            
Debt to equity ratio                         2.1 to 1        2.1 to 1
----------------------------------------------------------------------
</TABLE>                                     
                                            
         Cash provided by operations was $3.1 million for the first quarter of
         1998 compared to cash used by operations of $8.5 million in the first
         quarter of 1997. The change in cash from operations was principally due
         to the decrease in inventory and the increase in amortization expense.
         The Company's working capital increased $8.2 million as of March 29,
         1998 as compared to December 28, 1997 due primarily to the following: a
         $3.9 million increase in accounts receivable which was primarily due to
         a higher number of days sales outstanding; a $5.9 million decrease in
         accounts payable which declined principally due to payments to Digital
         Equipment Corporation; a $3.3 million decrease in inventory mainly due
         to lower base product revenue. Debt increased slightly from December
         1997. This increase was needed to support the working capital needs of
         the business and from the acquisition of certain assets of Novadyne
         Computer Systems. Debt to equity ratio remained unchanged from 1997
         year end. As of March 29, 1998, the Company had $4.3 million available
         for borrowing on its revolving credit agreement.

         On July 3, 1997, the Company amended its credit agreement with
         NationsBank of Texas, N.A., as agent for a group of banks,
         ("NationsBank") which increased the Company's revolving credit line
         from $35 million to $40 million. Other terms and conditions of the
         credit agreement generally remained unchanged.

         On September 5, 1997, the Company further amended and restated its
         credit agreement with NationsBank, increasing its total credit
         facilities to $110 million from $80 million. The Company used part of
         the proceeds from the credit facilities to repay the $9 million note to
         Texas Instruments. The term notes totaled $55 million with maturities
         of 5 and 7 years and the revolving credit line was increased from $40
         million to $55 million. The financial 


                                    Page 13
<PAGE>   14
         covenants for the facility were redefined. The Company entered into a
         new interest rate swap which fixes the interest rate on $37.5 million
         of the debt for a term of three years. The fixed rate at the time the
         amendment was executed was approximately 8.5%. The revolving credit
         line was increased to $70 million in October 1997 when commitments from
         additional lenders were received increasing the total credit facilities
         to $125 million.

         Of the four coverage ratios the Company is required to meet quarterly
         as part of its credit facility agreement with NationsBank, the Company
         fell short of meeting the Consolidated Funded Debt Coverage Ratio and
         the Consolidated Fixed Charges Coverage Ratio for the fiscal quarter
         ended March 29, 1998 due principally to higher levels of capital
         expenditures in ESSC and low earnings. NationsBank waived the
         requirement for the quarter. The Company is currently negotiating to
         reset the coverage ratios.

         GENICOM provides an array of services and products addressing different
         niches of the information processing industry, competing against a wide
         range of companies from large multinationals to small domestic
         entrepreneurs. Except for the historical information contained herein,
         the matters discussed in this 10Q include forward-looking statements
         that involve a number of risks and uncertainties. Terms such as
         "believes", "expects", "plans", "intends", "estimates", or
         "anticipates", and variations of such words and similar expressions are
         intended to identify such forward looking statements. There are certain
         important factors and risks, including the change in hardware and
         software technology, economic conditions in the North American, Western
         European and Asian markets, the anticipation of growth of certain
         market segments and the positioning of the Company's products and
         services in those segments, certain service customers whose business is
         declining, seasonality in the buying cycles of certain of the Company's
         customers, the timing of product announcements, the release of new or
         enhanced products and services, the introduction of competitive
         products and services by existing or new competitors, access to and
         development of product rights and technologies, the management of
         growth, the arbitration with Atlantic Design Corporation, the
         integration of acquisitions, including but not limited to the Company's
         acquisition of certain assets of Novadyne Computer Systems as of
         November 14, 1997, GENICOM's ability to attract and retain highly
         skilled technical, managerial and sales and marketing personnel,
         possible litigation related to the Company's operations, including
         litigation arising under various environmental laws, and the other
         risks detailed from time to time in the Company's SEC reports,
         including reports on Form 10K, that could cause results to differ
         materially from those anticipated by the statements contained herein.

                          PART II. - OTHER INFORMATION

Item 1.  Legal Proceedings:

Not applicable.

Item 2.  Changes in Securities:

         The following information with respect to securities recently issued by
         the Company in transactions which were not registered under the
         Securities Act of 1933, as amended. Exemption from registration is
         claimed under Section 4(2) of the 1933 Act.

         On February 4, 1998, Mr. Don E. Ackerman, Chairman of the GENICOM Board
         of Directors, exercised a stock option for 100,000 shares of GENICOM
         common stock granted to him on February 3, 1992. The exercise price of
         these shares was $1.00 and was paid in cash.

         On March 2, April 1 and April 7, 1998, Mr. Edward Lucente, a GENICOM
         director until January 1998, exercised stock options for 5,000 shares,
         5,000 shares and 10,000 shares of 


                                    Page 14
<PAGE>   15
         GENICOM common stock, respectively. Mr. Lucente was granted options for
         10,000 shares of common stock on May 4, 1993 with an exercise price of
         $1.625 and for 10,000 shares of common stock on January 28, 1997 with
         an exercise price of $3.125. The exercise price of all the shares was
         paid in cash.

Item. 3  Defaults Upon Senior Securities:

Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders:

Not applicable

Item 5.  Other Information:

Not applicable.

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

    (a)      Exhibits

                 Number    Description
                 ------    -----------------------------------------------------

                  10.1     Lease between Genicom Corporation and Gault
                           Riverport, LLC dated January 31, 1997, filed
                           herewith.

                  10.2     Amendment to Services Agreement with Atlantic Design
                           Company, Inc. dated May 29, 1996, filed herewith.

                  10.3     Amendment to Services Agreement with Atlantic Design
                           Company, Inc. dated June 24, 1996, filed herewith.

                  27.1     Financial Data Schedule

    (b)      Reports on Form 8-K:

         On March 17, 1998, the Company filed an 8-K/A regarding its acquisition
         of certain assets of Novadyne Computer Systems, Inc. on November 14,
         1998.


                                     Page 15
<PAGE>   16
                                   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.

                                                   GENICOM Corporation
                                          --------------------------------------
                                                       Registrant

Date:  May 13, 1998

                                                     /s/James C. Gale
                                          --------------------------------------
                                                        Signature

                                          James C. Gale
                                          Senior Vice President 
                                          Finance and Chief Financial 
                                          Officer

                                          (Mr. Gale is the Chief 
                                          Financial Officer and has 
                                          been duly authorized to sign 
                                          on behalf of the Registrant)


                                     Page 16
<PAGE>   17
                      GENICOM CORPORATION AND SUBSIDIARIES

                         INDEX TO EXHIBITS TO FORM 10-Q

                  FOR THE QUARTERLY PERIOD ENDED MARCH 29, 1998

EXHIBIT
NUMBER     DESCRIPTION                                           PAGE
-------    ---------------------------------------------------   ---------------

 10.1     Lease between Genicom Corporation and Gault
          Riverport, LLC dated January 31, 1997

 10.2     Amendment to Services Agreement with Atlantic Design
          Company, Inc. dated May 29, 1996

 10.3     Amendment to Services Agreement with Atlantic Design
          Company, Inc. dated June 24, 1996

 27.1     Financial Data Schedule                                Filed only with
                                                                 EDGAR version  
                                                                 



                                      E-1