<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 September 27, 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 it 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 a 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 November 2, 1998, there were 11,573,868 shares of Common Stock of
the Registrant outstanding.

================================================================================



<PAGE>   2



                                 FORM 10-Q INDEX


                         PART I - FINANCIAL INFORMATION


Item 1.     Financial Statements

            Consolidated Balance Sheets - September 27, 1998 and
            December 28, 1997                                               3

            Consolidated Statements of Income - Three Months and
            Nine Months Ended September 27, 1998 and September 28, 1997     4

            Consolidated Statements of Cash Flows - Nine Months Ended
              September 27, 1998 and September 28, 1997                     5

            Notes to Consolidated Financial Statements                 6 - 11

Item 2.     Management's Discussion and Analysis of Financial
              Condition and Results of Operations                     12 - 17


                     PART II - OTHER INFORMATION


Item 1.     Legal Proceedings                                              18

Item 2.     Changes in Securities                                          18

Item 3.     Defaults Upon Senior Securities                                18

Item 4.     Submission of Matters to a Vote of Security Holders            18

Item 5.     Other Information                                              18

Item 6.     Exhibits and Reports on Form 8-K                               18

Signatures                                                                 19

Index to Exhibits                                                         E-1



<PAGE>   3

                             PART I. - FINANCIAL INFORMATION

Item 1.   Financial Statements

                           GENICOM CORPORATION AND SUBSIDIARIES
                               CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                          SEPTEMBER 27,      DECEMBER 28,
(In thousands, except share data)                             1998               1997
                                                          --------------     --------------
                                                           (UNAUDITED)
<S>                                                     <C>                <C>
ASSETS
CURRENT ASSETS:
    Cash and cash equivalents                           $         6,523    $         4,622
    Accounts receivable, less allowance for
        doubtful accounts of $6,058 and $4,470                   88,704             89,692
    Other receivables                                             1,223              3,252
    Inventories                                                  65,863             67,553
    Prepaid expenses and other assets                            15,862              8,390
                                                          --------------     --------------
        TOTAL CURRENT ASSETS                                    178,175            173,509
Property, plant and equipment, net                               41,687             36,146
Goodwill                                                         16,218             33,800
Intangibles and other assets                                      5,228              6,594
                                                          --------------     --------------
                                                        $       241,308    $       250,049
                                                          ==============     ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
    Current portion of long-term debt                   $         5,762    $         6,391
    Accounts payable and accrued expenses                        73,593             84,578
    Deferred income                                              14,159             16,350
                                                          --------------     --------------
        TOTAL CURRENT LIABILITIES                                93,514            107,319
Long-term debt, less current portion                            105,600             87,072
Other non-current liabilities                                    10,206             10,262
                                                          --------------     --------------
        TOTAL LIABILITIES                                       209,320            204,653
STOCKHOLDERS' EQUITY:
    Common stock, $0.01 par value; 18,000,000 shares
        authorized, 11,562,217 and 11,365,750 shares issued
        and outstanding                                             116                114
    Additional paid-in capital                                   28,940             26,959
    Retained earnings                                             4,775             20,020
    Foreign currency translation adjustment                      (1,843)            (1,697)
                                                          --------------     --------------
        TOTAL STOCKHOLDERS' EQUITY                               31,988             45,396
                                                          --------------     --------------
                                                        $       241,308     $      250,049
                                                          ==============     ==============
</TABLE>


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



                                       3

<PAGE>   4
                                      
                     GENICOM CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED,          NINE MONTHS ENDED,
                                                   SEPTEMBER 27,  SEPTEMBER 28,  SEPTEMBER 27,   SEPTEMBER 28,
(In thousands, except per share data)                 1998           1997           1998           1997
                                                   ============  =============   ============   =============
REVENUES, NET:
<S>                                               <C>            <C>             <C>            <C>
    Products                                      $   73,400     $   72,750      $  228,415     $  207,952
    Services                                          35,680         29,939         114,828         89,729
                                                   ----------     ---------       ----------     ---------
                                                     109,080        102,689         343,243        297,681
                                                   ----------     ---------       ----------     ---------

OPERATING COSTS AND EXPENSES:
    Cost of revenues:
       Products                                       52,361         50,663         163,012        142,578
       Services                                       32,016         28,252         104,769         83,505
    Selling, general and administration               18,883         15,251          60,936         48,036
    Engineering, research and
       product development                             3,767          3,816          12,191          9,277
   Write-off of goodwill                                                             15,000
                                                   ----------     ---------       ----------     ---------
                                                     107,027         97,982         355,908        283,396
                                                   ----------     ---------       ----------     ---------

OPERATING INCOME (LOSS)                                2,053          4,707         (12,665)        14,285
Interest expense, net                                  2,887          1,868           8,217          4,900
                                                   ----------     ---------       ----------     ---------

(LOSS) INCOME BEFORE INCOME TAXES                       (834)         2,839         (20,882)         9,385
Income tax (benefit) expense                            (225)           553          (5,639)         1,739
                                                   ----------     ---------       ----------     ---------

NET (LOSS) INCOME                                 $     (609)    $    2,286      $  (15,243)    $    7,646
                                                   ==========     =========       ==========     ========= 

(Loss) earnings per common share (basic)          $    (0.05)    $     0.21      $    (1.32)    $     0.69
                                                   ==========     =========       ==========     ========= 

(Loss) earnings per common share (diluted)        $    (0.05)    $     0.18      $    (1.32)    $     0.61
                                                   ==========     =========       ==========     ========= 

Weighted average number of  common shares
   outstanding (basic)                                11,562         11,056          11,527         11,023
                                                   ==========     =========       ==========     ========= 
Weighted average number of common shares
   and dilutive shares (diluted)                      11,562         12,660          11,527         12,472
                                                   ==========     =========       ==========     ========= 
</TABLE>


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



                                       4
<PAGE>   5

                      GENICOM CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                        NINE MONTHS ENDED,
                                                                           SEPTEMBER 27,              SEPTEMBER 28,
(In thousands)                                                                  1998                       1997
                                                                       -------------------      -------------------

<S>                                                                  <C>                      <C>
Cash flows from operating activities:
    Net (loss) income                                                $            (15,243)    $              7,646
    Adjustments to reconcile net (loss) income to cash provided
      by (used in) operating activities:
        Depreciation                                                               10,787                   10,063
        Amortization                                                                5,899                    3,812
        Write-off of goodwill                                                      15,000
        Changes in assets and liabilities:
              Accounts receivable                                                   3,017                  (13,293)
              Inventories                                                           1,690                  (15,008)
              Accounts payable and accrued expenses                                (8,414)                  (4,136)
              Deferred income                                                      (2,191)                    (734)
              Other                                                                (5,392)                     306
                                                                       -------------------      -------------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                 5,153                  (11,344)
                                                                       -------------------      -------------------

Cash flows from investing activities:
    Additions to property, plant and equipment                                    (16,460)                 (13,618)
    Sale of equipment                                                                                          350
    Agreements with Digital Equipment Corporation                                                           (4,276)
    Other investing                                                                (2,060)                    (397)
                                                                       -------------------      -------------------
NET CASH USED IN INVESTING ACTIVITIES                                             (18,520)                 (17,941)
                                                                       -------------------      -------------------

Cash flows from financing activities:
    Borrowings on long-term debt                                                   29,904                   56,905
    Payments on long-term debt                                                    (12,005)                 (35,996)
    Bank overdraft                                                                 (2,172)                   5,682
    Financing costs                                                                  (468)                  (1,468)
                                                                       -------------------      -------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                          15,259                   25,123
                                                                       -------------------      -------------------

Effect of exchange rate changes on cash and cash equivalents                            9                     (290)
                                                                       -------------------      -------------------

Net increase (decrease) in cash and cash equivalents                                1,901                   (4,452)

Cash and cash equivalents at beginning of period                                    4,622                    5,866
                                                                       -------------------      -------------------
Cash and cash equivalents at end of period                           $              6,523     $              1,414
                                                                       ===================      ===================
</TABLE>

The accompanying notes are an integral part of these financial statements






                                       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 September 27, 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 nine
      months ended September 27, 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>
                                          SEPTEMBER 27,       DECEMBER 28,
                                             1998                1997
                                          ------------        ------------
<S>                                     <C>                 <C>
Raw materials                           $       3,274       $       9,295
Work in process                                 1,208               1,994
Finished goods                                 61,381              56,264
                                          ------------        ------------
                                        $      65,863       $      67,553
                                          ============        ============
</TABLE>


                                       6
<PAGE>   7



3.    In 1998, the Company adopted SFAS No. 128, "Earnings Per Share".  Basic
      net income per common share has been computed by dividing net income by
      the weighted-average number of common shares outstanding during the
      period.  Diluted net income per common share has been computed by
      dividing net income by the weighted average number of common shares
      outstanding plus an assumed increase in common shares outstanding for
      dilutive securities.  Dilutive securities consist of options to acquire
      Common Stock for a specified price.  Net income per common share amounts
      for all periods presented have been restated to conform to SFAS No. 128.

<TABLE>
<CAPTION>                              
(in thousands)                                        Three Months Ended September 27, 1998
                                             --------------------------------------------------------
                                               Income              Shares              Per Share
                                             -----------       ----------------     -----------------
<S>                                        <C>                 <C>                <C>
BASIC EPS                              
Income available to shareholders           $       (609)                11,562    $            (0.05)
                                             -----------       ----------------     -----------------
Weighted shares from stock options                                           0
                                                               ----------------
DILUTED EPS                                $       (609)                11,562    $            (0.05)
                                             -----------       ----------------     -----------------

                                                      Three Months Ended September 28, 1997
                                             --------------------------------------------------------
BASIC EPS                              
Income available to shareholders           $      2,286                 11,056    $             0.21
                                             -----------       ----------------     -----------------
Weighted shares from stock options                                       1,604
                                                               ----------------
DILUTED EPS                                $      2,286                 12,660    $             0.18
                                             -----------       ----------------     -----------------

                                                      Nine Months Ended September 27, 1998
                                             --------------------------------------------------------
                                               Income              Shares              Per Share
                                             -----------       ----------------     -----------------
BASIC EPS                              
                                       
Income available to shareholders           $    (15,243)                11,527    $            (1.32)
                                             -----------       ----------------     -----------------
Weighted shares from stock options                                           0
                                                               ----------------
DILUTED EPS                                $    (15,243)                11,527    $            (1.32)
                                             -----------       ----------------     -----------------

                                                      Nine Months Ended September 28, 1997
                                             --------------------------------------------------------
                                               Income              Shares              Per Share
                                             -----------       ----------------     -----------------
BASIC EPS                              
Income available to shareholders           $      7,646                 11,023    $             0.69
                                             -----------       ----------------     -----------------
Weighted shares from stock options                                       1,449
                                                               ----------------
DILUTED EPS                               $       7,646                 12,472   $              0.61
                                             -----------       ----------------     -----------------
</TABLE>                               
                                       

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 professional services, help desk/technical
      support, logistics management and on-site and off-site maintenance support
      (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 is not material.



                                       7
<PAGE>   8
\
<TABLE>
<CAPTION>
                                               Nine Months Ended or as of
                                            September 27,         September 28,
(in thousands)                                 1998                   1997
                                         -----------------      -----------------
<S>                                    <C>                    <C>
REVENUE

Document Solutions                     $          228,415     $          207,952

Enterprising Service Solutions                    114,828                 89,729
                                         -----------------      -----------------
                                       $          343,243     $          297,681
                                         -----------------      -----------------

OPERATING (LOSS)/INCOME *

Document Solutions                     $            7,168     $           24,358

Enterprising Service Solutions                    (19,833)               (10,073)
                                         -----------------      -----------------
                                       $          (12,665)    $           14,285
                                         -----------------      -----------------

DEPRECIATION AND AMORTIZATION

Document Solutions                     $            4,832     $            4,283

Enterprising Service Solutions                     10,578                  8,641

Corporate and other                                 1,276                    951
                                         -----------------      -----------------
                                       $           16,686     $           13,875
                                         -----------------      -----------------

ASSETS

Document Solutions                     $          130,352     $          141,148

Enterprising Service Solutions                     83,121                 60,061

Corporate and other                                27,835                 17,059
                                         -----------------      -----------------
                                       $          241,308     $          218,268
                                         -----------------      -----------------

CAPITAL EXPENDITURES

Document Solutions                     $            2,812     $            2,297

Enterprising Service Solutions                      8,655                  7,288

Corporate and other                                 4,993                  4,033
                                         -----------------      -----------------
                                       $           16,460     $           13,618
                                         -----------------      -----------------
</TABLE>


           *Includes $6.8 million and $8.2 million goodwill write-off for
           Document Solutions and Enterprising Service Solutions, respectively.

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
      assumption of certain liabilities. The transaction was financed through
      the Company's credit facility with NationsBank of Texas, N.A.

      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



                                       8
<PAGE>   9
      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 periods presented, and is not
      intended to be a projection of future results. Presentation is in
      thousands except for earnings per share amounts.

<TABLE>
<CAPTION>
                                                       Three Months Ended                          Nine Months Ended
                                             ---------------------------------------      ---------------------------------------
                                                                     (proforma)                                   (proforma)
                                                Sept. 27,            Sept. 28,                Sept. 27,            Sept. 28,
                                                   1998                 1997                     1998                1997
                                             -----------------    -----------------        -----------------    ----------------
<S>                                        <C>                  <C>                      <C>                  <C>
Revenue                                    $          109,080   $          111,374       $          343,243   $         323,736
Pre-Tax (Loss) Income                                    (834)               3,909                  (20,882)              9,756
                                             -----------------    -----------------        -----------------    ----------------
Net (Loss) Income                                        (609)               2,928                  (15,243)              9,572
                                             -----------------    -----------------        -----------------    ----------------
(Loss) Earnings per share                  $            (0.05)  $             0.26       $            (1.32)  $            0.87
                                             -----------------    -----------------        -----------------    ----------------
Weighted average shares outstanding                    11,562               11,056                   11,527              11,023
                                             -----------------    -----------------        -----------------    ----------------
</TABLE>

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 formally
      responded to the report, although the EPA has stated informally that it
      may require additional investigative work. 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 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:

      In 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, Inc. ("ADC"), a subsidiary of Ogden
      Services Corporation, pursuant to which ADC acquired the


                                       9
<PAGE>   10
      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
      attempted 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. The Company filed a counterclaim against ADC.
      Ogden Services Corporation and ADC then filed counterclaims against the
      Company. On July 4, 1998, the Company, ADC and Ogden Services Corporation
      settled the arbitration. Primary settlement terms included settlement of
      all claims and counterclaims in the arbitration, a $2.1 million payment to
      ADC for which the Company was fully reserved, a price increase effective
      for shipments after August 15, 1998, and a guarantee of orders for one
      year. ADC is continuing as a supplier for 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 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 loss, if reported on a
      comprehensive basis, would be $639,000 for the three months ended
      September 27, 1998 and $15.4 million for the nine months ended September
      27, 1998.  The Company had a loss in its foreign currency translation
      amount of $41,000 from June 28, 1998 and  $146,000 from December 28,
      1997, with after tax losses of $30,000 and $107,000, respectively.  For
      the third quarter of 1997, the foreign currency translation loss was
      $219,000, with an after tax loss of  $176,000.  For the nine months
      ended September 28, 1997, the foreign currency translation loss was
      $400,000, with an after tax loss of $326,000.  The Company's
      comprehensive income for the third quarter of 1997 would have been $2.2
      million and for the nine months ended September 28, 1997, $7.3 million.

8.    On July 2, 1998, the Company and its banks amended the credit agreement
      with NationsBank of Texas, N.A., as agent for the group of banks.  The
      amendment adjusted the Company's required financial covenants until the
      end of 1998, limited capital expenditures to a maximum of $27 million
      for 1998, adjusted the borrowing base percentages until the end of 1998
      allowing the Company increased borrowing ability and adjusted the
      interest rate upwards 1.50% on the incremental increased borrowing
      against the higher base.

      On November 12, 1998, the credit agreement was again amended. The
      amendment extends the increased borrowing base percentages through
      February 15, 1999 and adjusts the financial covenants for the fourth
      quarter of 1998. The Company was in compliance with the financial
      covenants of the

                                       10
<PAGE>   11
      amended credit agreement as of September 27, 1998 and based on current
      projections, anticipates it will be in compliance with the adjusted
      financial covenants for the fourth quarter.

      In order to be in compliance with certain covenants in the credit
      agreement in 1999, the Company will likely require additional amendments.
      Inability of the Company to reach agreement with the banking syndicate on
      amendments or to arrange alternative financing could have a material
      adverse effect on the Company.

9.    Based upon a second quarter review of certain long-lived assets, the
      Company determined that the value of goodwill associated with the
      acquisitions of Centronics, Printer Systems Corporation and Harris
      Adacom was impaired.  In accordance with FAS 121, "Accounting for the
      Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
      Of", during the second fiscal quarter of 1998, the Company took a
      pre-tax charge associated with this impairment of approximately $15
      million.  By segment, Enterprising Service Solutions' pre-tax charge was
      $8.2 million and Document Solutions' pre-tax charge was $6.8 million.

10.   In June 1998, the Financial Accounting Standards Board issued Statement
      of Financial Accounting Standards No. 133, "Accounting for Derivative
      Instruments and Hedging Activities."  This Statement requires that an
      entity recognize all derivatives as either assets or liabilities in the
      balance sheet and measure those instruments at fair value.  The Company
      will be required to adopt this new accounting standard by January 1,
      2000.  Management does not anticipate early adoption.  The Company
      believes that the effect of adoption of SFAS No. 133 will not be
      material.


                                       11
<PAGE>   12


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

                              RESULTS OF OPERATIONS


<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                                                               THREE MONTHS ENDED
                                            -------------------------------------------------------
                                                3RD QTR.                               3RD QTR.
(in millions)                                     1998               CHANGE              1997
---------------------------------------------------------------------------------------------------
<S>                                         <C>                <C>                 <C>
Revenues - Enterprising Service Solutions   $       35,680      $      5,741       $      29,939
Revenues - Document Solutions                       73,400               650              72,750
                                                 ----------         ---------         -----------
Total Revenue                               $      109,080      $      6,391       $     102,689
                                                 ----------         ---------         -----------
Percentage change                                                       6.2%
---------------------------------------------------------------------------------------------------
</TABLE>



<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                                              NINE MONTHS ENDED
                                            ---------------------------------------------------
                                                3RD QTR.                              3RD QTR.
(in millions)                                     1998             CHANGE               1997
-----------------------------------------------------------------------------------------------
<S>                                          <C>                <C>               <C>
Revenues - Enterprising Service Solutions    $     114,828      $     25,099      $      89,729
Revenues - Document Solutions                      228,415            20,463            207,952
                                                 ----------         ---------         ---------
Total Revenue                                $     343,243      $     45,562      $     297,681
                                                 ----------         ---------         ---------
Percentage change                                                      15.3%
-----------------------------------------------------------------------------------------------
</TABLE>


Revenue in the third quarter of 1998 increased 6.2% from the third quarter of
1997 primarily due to the revenue growth in Document Solutions ("DSC") as a
result of the agreements with Digital Equipment Corporation ("DEC") and in
Enterprising Service Solutions ("ESSC") as a result of the acquisition of
certain assets of Novadyne Computer Systems. DSC revenue, excluding Relays, was
0.9% higher than the third quarter of 1997 as a result of the agreements with
DEC. ESSC revenue increased 19.2%. This increase was primarily the result of the
Novadyne acquisition and to a lesser extent, increased depot revenue as a result
of new customers.

For 1998 year to date, revenue increased $45.6 million from 1997. DSC's revenue,
excluding Relays, increased $32.6 million or 9.8% primarily due to the
agreements with DEC. ESSC's revenue for 1998 increased $25.1 million or 28.0%
compared to 1997 principally from the acquisition of certain assets of Novadyne
Computer Systems which increased revenues in field service, secondarily, a
contract with NASDAQ for upgrading their computer network and increased
integration business in the Canadian subsidiary.

Relay revenues, which are included as part of Document Solutions in the above
table for 1997, were $3.4 million for the third quarter of 1997 and $12.2
million for the nine months ended September 28, 1997. This product line was sold
in November of 1997.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                                                    3RD QUARTER        4TH QUARTER       3RD QUARTER
(in millions)                                           1998                1997            1997
------------------------------------------------------------------------------------------------------
<S>           <C>                                    <C>              <C>                <C>
Order Backlog                                        $    35.9        $      44.8        $     60.5
Change:       3rd Quarter of 1998 compared to
              Amount                                                         (8.9)            (24.6)
              Percentage                                                   -19.9%            -40.7%
------------------------------------------------------------------------------------------------------
</TABLE>

The decrease in order backlog from the third quarter of 1997 primarily reflects
the effect of a decline in printer backlog and the sale of the relay product
line. In August 1997, the Company, with the commencement of the DEC agreements,
recorded a significant amount of initial backlog related to those agreements.
The relay backlog was $6.8 million as of September 28, 1997. The decrease in the
order backlog from the fourth quarter of 1997 is principally due to a decrease
in printer and supplies backlog partially offset by the recording of ESSC annual
contracts in January. The Company's backlog as of any particular date should not
be the sole measurement used in determining sales for any future period.


                                       12
<PAGE>   13

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
                                                             THREE MONTHS ENDED
                                                -------------------------------------------------
                                                    3RD QTR.                       3RD QTR.
(in millions)                                         1998           CHANGE          1997
-------------------------------------------------------------------------------------------------
<S>                                             <C>               <C>             <C>
Gross margin - Enterprising Service Solutions   $       3.7       $       2.0     $      1.7
Gross margin - Document Solutions                      21.0              (1.1)          22.1
                                                    -------         ---------       --------
Total gross margin                              $      24.7       $       0.9     $     23.8
                                                    -------         ---------       --------
As a % of revenue                                     22.7%                            23.2%
-------------------------------------------------------------------------------------------------
</TABLE>


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                                                              NINE MONTHS ENDED
                                                 ---------------------------------------------
                                                   3RD QTR.                       3RD QTR.
(in millions)                                        1998         CHANGE            1997
----------------------------------------------------------------------------------------------
<S>                                             <C>              <C>            <C>
Gross margin - Enterprising Service Solutions   $       10.1     $     3.9      $        6.2
Gross margin - Document Solutions                       65.4           -                65.4
                                                     -------       -------        ----------
Total gross margin                              $       75.5     $     3.9      $       71.6
                                                     -------       -------        ----------
As a % of revenue                                      22.0%                           24.1%
----------------------------------------------------------------------------------------------
</TABLE>

Gross margin, as a percent of revenue, decreased from 23.2% in the third quarter
of 1997 to 22.7% in the third quarter of 1998. As a percent of revenue, gross
margin for DSC excluding Relays decreased to 28.7% for the quarter ending
September 27, 1998 from 31.2% for the quarter ending September 28, 1997. This
decrease is primarily the result of the lower volume of supplies sales which
carry a larger margin percentage than printers and a change in the sales mix of
printers. For ESSC, gross margin increased from 5.6% for the third quarter of
1997 to 10.3% for 1998 reflecting improvement in the operating efficiency of
ESSC.

As a percent of revenue, gross margin for the nine months ended September 27,
1998 was 22.0% as compared to 24.1% for the nine months ended September 28,
1997. The gross margin percentage for DSC excluding Relays for the first nine
months of 1998 decreased to 28.6% from 32.1% in 1997 due to a reduction of
supplies sales and the sales mix in printer sales. ESSC's gross margin
percentage increased slightly to 8.8% for year to date 1998 from 6.9% for the
same period in 1997 reflecting operational efficiency improvements.



<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                 THREE MONTHS ENDED                                         NINE MONTHS ENDED
                                       -----------------------------------------      --------------------------------------------
                                           3RD QTR.                    3RD QTR.           3RD QTR.                     3RD QTR.
(in millions)                               1998         CHANGE          1997               1998         CHANGE          1997
----------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
<S>                                    <C>             <C>              <C>           <C>              <C>             <C>
Selling, general and administrative    $       18.9    $      3.6       $   15.3      $     60.9       $     12.9      $     48.0
Engineering, research and product
  development                                   3.8           -              3.8            12.2              2.9             9.3
Write-off of goodwill                                                                       15.0             15.0             -
                                           --------     ---------         ------         -------        ---------       ---------
Total                                  $       22.7    $      3.6       $   19.1      $     88.1       $     30.8      $     57.3
                                           --------     ---------         ------         -------        ---------       ---------
As a % of revenue                             20.8%                        18.6%           25.7%                            19.2%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


The increase of $3.6 million in operating expenses from the third quarter of
1997 was primarily the result of increased marketing costs to support new
product introductions and higher marketing costs in ESSC. Operating expenses
increased as a percentage of revenue in the third quarter of 1998, to 20.8% as
compared to 18.6% in 1997.

For the first nine months of 1998, operating expenses increased $15.8 million,
excluding the goodwill write-off, compared to 1997 primarily for the reasons
mentioned above.

During the second quarter of 1998, based upon review of long-lived assets, the
Company determined that the value of goodwill associated with the acquisitions
of Centronics, Printer Systems Corporation and Harris Adacom was impaired. In
accordance with FAS 121, during the second fiscal quarter of 1998, the Company
took a pre-tax charge associated with this impairment of approximately $15
million.


                                       13
<PAGE>   14
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                          THREE MONTHS ENDED                                 NINE MONTHS ENDED
                            ------------------------------------------------    ---------------------------------------------
                             3RD QTR.                          3RD QTR.          3RD QTR.                         3RD QTR.
(in millions)                  1998            CHANGE            1997              1998            CHANGE           1997
-----------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                 <C>              <C>               <C>               <C>              <C>
Interest expense, net    $   2.9             $     1.0        $     1.9         $    8.2          $    3.3         $   4.9

Percentage change                                52.6%                                               67.3%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>


Interest expense increased $1.0 million in the third quarter of 1998 as compared
to the year-ago quarter primarily as a result of higher borrowings in 1998 due
to higher debt need to support the working capital needs of the business and
secondarily higher development costs associated with new product introductions.
In addition, with the new amendment to the credit agreement in July 1998,
Genicom was paying a slightly higher interest rate for its debt than in 1997.
Interest expense for the nine months ended September 28, 1998 increased $3.3
million compared to the same period in 1997 for the above reasons.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                         THREE MONTHS ENDED                                     SIX MONTHS ENDED
                       -------------------------------------------------------    ----------------------------------------------
                         3RD QTR.                              3RD QTR.             3RD QTR.                         3RD QTR.
(in millions)              1998              CHANGE              1997                 1998            CHANGE           1997
--------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>               <C>                  <C>                  <C>             <C>            <C>
Income tax expense       $   (0.2)         $   (0.8)            $    0.6             $   (5.6)       $  (7.3)       $   1.7

Effective tax rate           27.0%                                 19.5%                27.0%                         18.5%
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>


The Company's effective tax rate for the third quarter and the first nine months
of 1998 was 27.0%. The tax rate is being affected by the anticipated utilization
of foreign operating losses. During the first nine months of 1997, the Company
reversed part of its valuation allowance for its foreign deferred tax assets.

LIQUIDITY AND CAPITAL RESOURCES

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                      Nine Months Ended
                                                    --------------------------------------------------------
                                                          3RD QUARTER                   3RD QUARTER
(in millions)                                                1998                          1997
------------------------------------------------------------------------------------------------------------
<S>                                               <C>                           <C>
Cash provided by (used in) operations             $                       5.2   $                     (11.3)

Cash used in investing activities                                       (18.5)                        (17.9)

Cash provided by financing activities                                    15.3                          25.1

------------------------------------------------------------------------------------------------------------
</TABLE>


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                           3RD QUARTER                   4TH QUARTER
(in millions)                                                  1998                          1997
-------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                           <C>
Working capital                                     $                     84.7    $                     66.2

Inventories                                                               65.9                          67.6

Debt obligations                                                         111.4                          93.5

Debt to equity ratio                                                  3.5 to 1                      2.1 to 1
-------------------------------------------------------------------------------------------------------------
</TABLE>


                                       14
<PAGE>   15
Cash provided by operations increased $16.5 million from the first nine months
of 1997 principally due to the stabilization of inventory. In 1997, inventory
increased to support the higher level of revenue in 1997 compared to 1996. The
Company's working capital increased $18.5 million as of September 27, 1998 as
compared to December 28, 1997 due primarily to a $7.5 million increase in
prepaid and other assets driven by taxes receivable and a $11.0 million decrease
in accounts payable and accrued expenses. Debt increased significantly with the
proceeds used to support the working capital needs of the business, the
acquisition of certain assets of Novadyne Computer Systems, and the operating
loss. The Company had approximately $6.1 million available for borrowing under
its credit facilities as of September 27, 1998.

On July 2, 1998, the Company and its banks amended the credit agreement with
NationsBank of Texas, N.A., as agent for the group of banks. The amendment
adjusted the Company's required financial covenants, limited capital
expenditures to a maximum of $27 million for 1998, adjusted the borrowing base
percentages allowing the Company increased borrowing ability and adjusted the
interest rate upwards 1.50% on the incremental increased borrowing against the
higher base.

On November 12, 1998, the credit agreement was again amended. The amendment
extends the increased borrowing base percentages through February 15, 1999 and
adjusts the financial covenants for the fourth quarter of 1998. The Company was
in compliance with the financial covenants of the amended credit agreement as of
September 27, 1998 and based on current projections, anticipates it will be in
compliance with the adjusted financial covenants for the fourth quarter.

In order to be in compliance with certain covenants in the credit agreement in
1999, the Company will likely require additional amendments. Inability of the
Company to reach agreement with the banking syndicate on amendments or to
arrange alternative financing could have a material adverse effect on the
Company.

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. The Company filed a counterclaim against ADC. Ogden Services
Corporation and ADC then filed counterclaims against the Company. On July 4,
1998, the Company, ADC and Ogden Services Corporation settled the arbitration.
Primary settlement terms included settlement of all claims and counterclaims in
the arbitration, a $2.1 million payment to ADC for which the Company was fully
reserved, a price increase effective for shipments after August 15, 1998, and a
guarantee of orders for one year. ADC is continuing as a supplier for the
Company.

Year 2000

GENICOM is taking an active approach to address computer issues associated with
the onset of the new millennium - specifically, the impact of possible failure
of computer systems and computer driven equipment due to the rollover to the
year 2000. The Year 2000 problem is pervasive and complex as virtually every IT
and non-IT system could be affected in some way by the rollover of the two-digit
year value from 99 to 00. The issue is whether computer systems or embedded
technology will properly recognize date sensitive information when the year
changes to 2000. IT and non-IT systems that do not properly recognize such
information could generate erroneous data or causes failures.

If not properly addressed, the Year 2000 problem could result in failures in
Company computer systems or items with embedded systems or the computer systems
or equipment of third parties with whom the Company deals with worldwide. Any
such failures of the Company's and/or third parties IT and non-IT systems could
have a material impact on the Company's ability to conduct business.


                                       15
<PAGE>   16


Since 1996, the Company has been identifying and seeking to minimize its
exposure to the Year 2000 problem. In 1996, the Company began expending
significant funds under contracts with EDS to replace the majority of its
internal computer system. During this process, the Company has required third
party vendors to make representations that the components of the new systems and
related software are Year 2000 compliant. The replacement equipment is scheduled
to completely installed and tested by the end of the second quarter of 1999. As
a result, the Company does not anticipate Year 2000 problems with its internal
systems. The approximately $16 million cost of the replacement system is being
capitalized by the Company.

Management has also considered whether the Year 2000 problem will affect the
products or services provided by the Company to its customers. Because the
Company's printer products do not contain date sensitive embedded software and
do not manipulate, calculate, convert, compare, sequence or present any date
data, these products should not present Year 2000 compliance issues. The Company
does, though its Enterprising Service Solutions company, resell and install
computer software that could be susceptible to Year 2000 problems. The Company's
practice is to disclaim responsibility for Year 2000 compliance relating to
third party software.

At this time GENICOM is actively working to ensure that foreseeable Year 2000
related computer problems related to Company computer systems and products are
effectively addressed. The Company does not expect that the commitment of
resources to study and correct internally any Year 2000 problems to result in
the delay of its projects or product development.

The Company is currently developing a plan to review vendor and customer
compliance as well as items that may be affected by embedded systems such as
manufacturing and telephone equipment. This plan is expected to be completed
shortly after year end. The plan will include inquiries of vendors and customers
related to their Year 2000 compliance. The cost of implementing the plan or the
financial impact of customers, vendors, or embedded systems that are not
compliant has yet to be determined. Once the Company has sufficient information
available to do so, it intends to analyze its most reasonably likely worst case
scenario and develop contingency plans.

The Company cannot estimate or predict the potential adverse consequences, if
any, that could result from a third party failure to effectively address this
issue or failure of certain equipment and is unable to predict if those parties
noncompliance or equipment failure will have a material adverse effect on
earnings.

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 changes 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
Company's ability to reach an appropriate level of operating efficiency in the
services group, Year 2000 issues, the ability of the Company to amend its credit
agreement or obtain alternative financing arrangements in 1999 if necessary,
GENICOM's ability to attract and retain highly skilled technical, managerial and
sales and marketing personnel, possible litigation related to the 



                                       16
<PAGE>   17
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.


                                       17
<PAGE>   18



                          PART II. - OTHER INFORMATION

Item 1. Legal Proceedings:

Not applicable.

Item 2. Changes in Securities:

Not applicable.

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

<TABLE>
<CAPTION>
           NUMBER      DESCRIPTION
           ----------  ---------------------------------------------------------

<S>        <C>         <C>
           27.1        Financial Data Schedule
</TABLE>


b)     Reports on Form 8-K:

       Not applicable.


                                       18
<PAGE>   19


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




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


Date:  November 12, 1998


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

                                                     James C. Gale
                                                     Senior Vice President
                                                     and Chief Financial Officer

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

                                       19

<PAGE>   20
                      GENICOM CORPORATION AND SUBSIDIARIES

                         INDEX TO EXHIBITS TO FORM 10-Q

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 27, 1998



<TABLE>
<CAPTION>
EXHIBIT
NUMBER                  DESCRIPTION                           PAGE
-------------------     ------------------------------------  -------------------------------
<S>                     <C>                                   <C>
10.1                    Fifth Amendment to Amended and 
                        Restated Credit Agreement dated
                        as of October 30, 1998

27.1                    Financial Data Schedule               Filed only with 
                                                              EDGAR version
</TABLE>







                                      E-1