<PAGE>   1


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                         For the quarterly period ended:

                               SEPTEMBER 30, 2000

                                       or

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

                         Commission File Number: 0-9463

                                  ULTRAK, INC.

             (Exact name of registrant as specified in its charter)

               Delaware                                    75-2626358
   (State or other jurisdiction of                      (I.R.S. Employer
   incorporation or organization)                       Identification No.)

        1301 Waters Ridge Drive,
           Lewisville, Texas                                   75057
(Address of principal executive offices)                    (Zip Code)

                                 (972) 353-6651
              (Registrant's telephone number, including area code)

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

                                                                Yes X  No
                                                                   ---   ---

  Indicate the number of shares outstanding of each of the issuer's classes of
  common stock as of September 30, 2000: 11,710,755 shares of $.01 par value
  common stock.


<PAGE>   2


                          ULTRAK, INC. AND SUBSIDIARIES

                        QUARTER ENDED SEPTEMBER 30, 2000

                                      INDEX




<TABLE>
<CAPTION>
   Part I:  Financial Information                                               Page No.
                                                                                --------
<S>                                                                             <C>
       Consolidated Balance Sheets                                                  3

       Consolidated Statements of Operations                                        4

       Consolidated Statements of Cash Flows                                        5

       Notes to Consolidated Financial Statements                                   6

       Management's Discussion and Analysis of
       Financial Condition and Results of Operations                                12



   Part II:  Other Information                                                      17


   Signatures                                                                       19
</TABLE>


                                       2
<PAGE>   3


                          ULTRAK, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                     SEPTEMBER 30,    DECEMBER 31,
                                     ASSETS                                              2000             1999
                                                                                     -------------    ------------
                                                                                      (unaudited)
<S>                                                                                  <C>              <C>
Current Assets:
    Cash and Cash Equivalents                                                        $   2,272,295       4,757,512
    Investments                                                                            643,500         600,033
    Trade Accounts Receivable, less allowance for doubtful accounts                     36,517,281      41,337,442
    Inventories, net                                                                    45,232,938      49,097,433
    Advances for Inventory Purchases                                                        19,451       1,943,617
    Prepaid Expenses and Other Current Assets                                            6,555,949       4,230,732
    Deferred Income Taxes                                                                3,892,322       3,959,604
    Net Assets of Discontinued Operations                                                1,704,594       1,905,831
                                                                                     -------------    ------------
        Total Current Assets                                                            96,838,330     107,832,204
                                                                                     -------------    ------------

Property, Plant and Equipment, at cost                                                  29,345,021      26,879,627
        Less accumulated depreciation and amortization                                 (12,142,270)     (9,016,169)
                                                                                     -------------    ------------
                                                                                        17,202,751      17,863,458
                                                                                     -------------    ------------

Goodwill, net of accumulated amortization                                               53,679,150      56,337,690

Investment in Detection Systems, Inc., at equity                                        13,904,510      13,354,019

Software Development Costs, net of accumulated amortization                              3,809,502       2,973,764

Other Assets                                                                             2,086,920       1,989,373
                                                                                     -------------    ------------

        Total Assets                                                                 $ 187,521,163     200,350,508
                                                                                     =============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
    Accounts Payable-Trade                                                           $  12,395,988      15,739,200
    Accrued Expenses                                                                     6,179,194       5,916,432
    Accrued Restructuring Costs                                                            316,200       1,749,073
    Other Current Liabilities                                                            3,702,799       4,713,081
                                                                                     -------------    ------------
        Total Current Liabilities                                                       22,594,181      28,117,786
                                                                                     -------------    ------------

Line of Credit                                                                          36,567,863      37,000,000

Deferred Income Taxes                                                                    2,584,649       2,569,870

Stockholders' Equity:
   Preferred Stock, $5 par value, issuable in series; 2,000,000 shares
        authorized; Series A, 12% cumulative convertible, 195,351 shares
        authorized, issued and outstanding                                                 976,755         976,755
   Common Stock, $.01 par value; 20,000,000 shares authorized;
        15,153,005 and 14,981,471 shares issued and outstanding at
        September 30, 2000 and December 31, 1999, respectively                             151,530         149,815
   Additional Paid in Capital                                                          158,178,457     156,708,110
   Retained Earnings                                                                    13,328,921      17,578,720
   Accumulated Other Comprehensive Loss                                                 (8,178,082)     (4,067,437)
   Treasury Stock, at cost (3,442,250 common shares at
        September 30, 2000 and December 31, 1999, respectively)                        (38,683,111)    (38,683,111)
                                                                                     -------------    ------------
        Total Stockholders' Equity                                                     125,774,470     132,662,852
                                                                                     -------------    ------------

        Total Liabilities and Stockholders' Equity                                   $ 187,521,163     200,350,508
                                                                                     =============    ============
</TABLE>

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


                                       3
<PAGE>   4


                          ULTRAK, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                           THREE MONTHS      THREE MONTHS       NINE MONTHS       NINE MONTHS
                                                               ENDED             ENDED             ENDED             ENDED
                                                           SEP. 30, 2000     SEP. 30, 1999     SEP 30, 2000      SEP. 30, 1999
                                                           -------------     -------------     -------------     -------------
                                                            (unaudited)       (unaudited)       (unaudited)        (unaudited)
<S>                                                        <C>               <C>               <C>               <C>
Net sales                                                  $  47,265,151        51,281,007       153,318,092       152,273,218
Cost of sales                                                 33,240,800        34,411,019       106,437,978       102,380,523
                                                           -------------     -------------     -------------     -------------
        Gross profit                                          14,024,351        16,869,988        46,880,114        49,892,695
        Gross profit %                                              29.7%             32.9%             30.6%             32.8%

Other operating costs:
    Marketing and sales                                        8,909,798         8,339,484        26,727,700        25,001,207
    General and administrative                                 5,705,912         5,564,164        16,693,767        16,109,128
    Depreciation and goodwill amortization                     1,687,100         1,568,516         4,911,927         4,457,409
    Special charges                                            1,361,241                --         1,361,241         3,875,000
                                                           -------------     -------------     -------------     -------------
                                                              17,664,051        15,472,164        49,694,635        49,442,744
                                                           -------------     -------------     -------------     -------------
        Operating profit (loss)                               (3,639,700)        1,397,824        (2,814,521)          449,951

Other (expense) income:
   Interest expense, net                                      (1,035,776)         (710,641)       (2,817,097)       (2,141,309)
   Equity in income of Detection Systems, Inc.                   230,000           450,000           554,000         1,300,000
   Other, net                                                   (144,284)          399,238          (124,746)        1,229,977
                                                           -------------     -------------     -------------     -------------
                                                                (950,060)          138,597        (2,387,843)          388,668
                                                           -------------     -------------     -------------     -------------

INCOME (LOSS) BEFORE INCOME TAXES                             (4,589,760)        1,536,421        (5,202,364)          838,619

       Income tax benefit (expense)                              786,737          (660,661)        1,040,473          (360,606)
                                                           -------------     -------------     -------------     -------------

NET INCOME (LOSS)                                             (3,803,023)          875,760        (4,161,891)          478,013
Dividend requirements on
preferred stock                                                  (29,302)          (29,302)          (87,908)          (87,908)
                                                           -------------     -------------     -------------     -------------
Net income (loss) allocable to
common stockholders                                        $  (3,832,325)          846,458        (4,249,799)          390,105
                                                           =============     =============     =============     =============

Net income (loss) per share:
      Basic                                                $       (0.33)    $        0.07     $       (0.36)    $        0.03
                                                           =============     =============     =============     =============
      Diluted                                              $       (0.33)    $        0.07     $       (0.36)    $        0.03
                                                           =============     =============     =============     =============

Number of common shares used in computations:
      Basic                                                   11,709,514        11,646,944        11,676,559        11,672,288
                                                           =============     =============     =============     =============
      Diluted                                                 11,709,514        12,226,365        11,676,559        12,371,622
                                                           =============     =============     =============     =============
</TABLE>

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


                                       4
<PAGE>   5


                         ULTRAK, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                    NINE MONTHS           NINE MONTHS
                                                                                       ENDED                 ENDED
                                                                                 SEPTEMBER 30, 2000    SEPTEMBER 30, 1999
                                                                                 ------------------    ------------------
<S>                                                                              <C>                   <C>
Cash flows from operating activities:
   Net income (loss)                                                             $       (4,161,891)              478,013
   Adjustments to reconcile net income (loss) to net cash provided by
        operating activities:
        Depreciation and amortization                                                     4,911,925             4,457,409
        Provision for losses on accounts receivable                                         388,426               497,509
        Provision for inventory obsolescence                                                646,789               (26,119)
        Deferred income taxes                                                                82,061                    --
        Non-cash special charges                                                          1,361,241                    --
        Changes in operating assets and liabilities, net of effects of
            acquisitions and divestitures:
            Accounts receivable                                                           4,609,689            (1,733,983)
            Inventories                                                                   3,217,706            (4,170,254)
            Advances for inventory purchases                                              1,924,166             2,680,454
            Prepaid expenses and other assets                                            (1,000,341)              287,562
            Other assets                                                                   (497,494)            1,971,376
            Accounts payable                                                             (3,343,212)            3,010,755
            Accrued and other current liabilities                                        (3,541,634)            5,955,729
            Decrease in net assets of discontinued operations                               201,237             1,914,339
                                                                                 ------------------    ------------------
                 Net cash provided by  operating activities                               4,798,668            15,322,790
                                                                                 ------------------    ------------------

Cash flows from investing activities:
      Proceeds (purchases) of investments, net                                             (593,958)              444,450
      Purchases of property and equipment                                                (4,418,938)           (6,522,197)
      Acquisitions, net of cash acquired                                                         --              (679,878)
                                                                                 ------------------    ------------------
                 Net cash used in investing activities                                   (5,012,896)           (6,757,625)
                                                                                 ------------------    ------------------

Cash flows from financing activities:
      Net borrowings on revolving line of credit                                           (432,137)              635,030
      Issuance of common stock, net of issuance costs                                     1,472,062                56,250
      Purchase of treasury stock                                                                 --            (6,171,165)
      Payment of preferred stock dividends                                                  (87,908)              (87,908)
                                                                                 ------------------    ------------------
                 Net cash provided by (used in) financing activities                        952,017            (5,567,793)
                                                                                 ------------------    ------------------

Effect of exchange rate changes on cash                                                  (3,223,006)             (689,318)

Net increase (decrease) in cash and cash equivalents                                     (2,485,217)            2,308,054
                                                                                 ------------------    ------------------

Cash and cash equivalents at beginning of the period                                      4,757,512             4,480,721
                                                                                 ------------------    ------------------
Cash and cash equivalents at end of the period                                   $        2,272,295             6,788,775
                                                                                 ==================    ==================

Supplemental schedule of noncash investing and financing:
  Acquisition of businesses
      Assets acquired                                                            $               --             3,609,767
      Liabilities assumed                                                                        --            (1,435,000)
      Common stock issued                                                                        --            (1,494,889)
                                                                                 ------------------    ------------------

      Net cash paid for acquisitions                                             $               --               679,878
                                                                                ===================    ==================
</TABLE>

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


                                       5
<PAGE>   6


                          ULTRAK, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

1. Basis of Presentation:

The accompanying unaudited interim consolidated financial statements include the
accounts of Ultrak, Inc. and its subsidiaries ("Ultrak" or "the Company"). All
significant intercompany balances and transactions have been eliminated in
consolidation.

The interim financial statements are prepared on an unaudited basis in
accordance with accounting principles for interim reporting and do not include
all of the information and disclosures required by generally accepted accounting
principles for complete financial statements. All adjustments which are, in the
opinion of management, necessary for a fair presentation of the results of
operations for the interim periods have been made and are of a recurring nature
unless otherwise disclosed herein. The results of operations for such interim
periods are not necessarily indicative of results of operations for a full year.
For further information, refer to the consolidated financial statements and
notes to the consolidated financial statements for the year ended December 31,
1999 included in the Ultrak Annual Report on Form 10-K.

2. Earnings Per Share:

The Company computes basic earnings (loss) per share based on the weighted
average number of common shares outstanding. Diluted earnings per share is
computed based on the weighted average number of shares outstanding, plus the
number of additional common shares that would have been outstanding if dilutive
potential common shares had been issued.

Following is a reconciliation of basic and diluted earnings (loss) per share:

<TABLE>
<CAPTION>
                                                     Quarter Ended Sep. 30, 2000               Quarter Ended Sep. 30, 1999
                                                --------------------------------------   --------------------------------------
                                                    Net                    Per Share         Net                    Per Share
                                                    Loss         Shares      Amount         Income       Shares       Amount
                                                ------------  ----------- ------------   -----------  ------------ ------------
<S>                                             <C>           <C>         <C>            <C>          <C>          <C>
Basic income (loss) per share:
Income (loss) allocable to common stockholders  $ (3,832,325)  11,709,514        $(.33)  $   846,458    11,646,944         $.07
                                                                          ============                             ============

Effect of Dilutive Securities:
   Stock options                                          --           --                         --       172,440
   Convertible preferred stock                            --           --                     29,302       406,981
                                                ------------  -----------                -----------  ------------

Diluted income (loss) per share                 $ (3,832,325)  11,709,514        $(.33)  $   875,760    12,226,365         $.07
                                                ============  =========== ============   ===========  ============ ============
</TABLE>


                                       6
<PAGE>   7


                          ULTRAK, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   (Unaudited)

2.  Earnings per Share, continued:

<TABLE>
<CAPTION>
                                                           Nine Months Ended                           Nine Months
                                                           September 30, 2000                    Ended September 30, 1999
                                                --------------------------------------   --------------------------------------
                                                    Net                    Per Share         Net                    Per Share
                                                    Loss         Shares      Amount         Income       Shares       Amount
                                                ------------  ----------- ------------   -----------  ------------ ------------
<S>                                             <C>           <C>         <C>            <C>          <C>          <C>

Basic income (loss) per share:
Income (loss) allocable to common stockholders  $ (4,249,799)  11,676,559        $(.36)  $   390,105    11,672,288         $.03
                                                                          ============                             ============

Effect of Dilutive Securities:
   Contingently issuable shares                           --           --                         --       131,698
   Stock options                                          --           --                         --       160,655
   Convertible preferred stock                            --           --                     87,908       406,981
                                                ------------  -----------                -----------  ------------

Diluted income (loss) per share                 $ (4,249,799)  11,676,559       $ (.23)  $   478,013    12,371,622        $ .03
                                                ============  =========== ============   ===========  ============ ============
</TABLE>

For the three and nine months ended September 30, 2000, options to purchase
579,123 and 535,078 shares, respectively, were not included in the computation
of dilutive income per share because their effect would be anti-dilutive.

3. Note Payable to Bank:

   The Company is currently in violation of its financial covenants, but has
obtained the necessary waivers from its lenders.


                                       7
<PAGE>   8


                          ULTRAK, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   (Unaudited)

4. Segment Disclosure and Foreign Operations:

The Company has four business segments: United States-Professional Security
Group (US-PSG), United States-Diversified Sales Group (US-DSG),
International-Professional Security Group (Int'l-PSG), and Supply. The segments
are differentiated by the customers serviced as follows:

       US-PSG

       This segment consists of sales in the United States to professional
       security dealers, distributors, installers and certain large-end users of
       professional security products.

       US-DSG

       This segment sells video and security products to industrial markets and
       consumers in the United States.

       International-PSG

       This segment sells to professional security dealers, distributors,
       installers and certain large- end users of professional security products
       outside the United States.

       Supply

       This segment sells products and systems manufactured by the Company's
       Ohio and California facilities to the US-PSG and International-PSG
       segments.

The Company's underlying accounting records are maintained on a legal entity
basis for government and public reporting requirements. Segment disclosures are
on a performance basis consistent with internal management reporting. The
Company evaluates performance based on earnings from operations before income
taxes and other income and expense. The Corporate column includes corporate
overhead-related items.


                                       8
<PAGE>   9


                          ULTRAK, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   (Unaudited)

4.       Segment Disclosure and Foreign Operations, continued:

The following tables provide financial data by segment for the periods noted:

<TABLE>
<CAPTION>
Three months ended Sep. 30, 2000:                     US-PSG       US-DSG      Int'l-PSG      Supply      Corporate      Total
                                                    -----------  -----------  -----------   ----------   -----------  ------------
<S>                                                 <C>          <C>          <C>           <C>         <C>          <C>
Total revenue                                       $20,760,385  $15,191,178  $16,715,353   $ 6,960,673           --  $ 59,627,589
Intersegment revenue                                   (152,766)          --   (6,311,201)   (5,898,471)          --   (12,362,438)
                                                    -----------  -----------  -----------   -----------  -----------  ------------
Revenue from external customers                     $20,607,619  $15,191,178  $10,404,152   $ 1,062,202           --  $ 47,265,151
                                                    ===========  ===========  ===========   ===========  ===========  ============

Operating profit (loss), including special
charges                                             $   909,129  $ 2,209,538  $(1,089,973)  $    46,851  $(5,715,245) $ (3,639,700)
Depreciation and amortization expense                   171,191       55,859      197,743        31,401    1,230,906     1,687,100
</TABLE>


<TABLE>
<CAPTION>
Three months ended Sep. 30, 2000:                     US-PSG       US-DSG      Int'l-PSG      Supply      Corporate      Total
                                                    -----------  -----------  -----------   ----------  -----------  ------------
<S>                                                 <C>          <C>          <C>           <C>          <C>          <C>
Total revenue                                       $21,933,508  $13,535,498  $21,172,297   $ 5,125,997            --  $ 61,767,300
Intersegment revenue                                   (391,519)          --   (4,968,777)   (5,125,997)           --   (10,486,293)
                                                    -----------  -----------  -----------   -----------  ------------  ------------
Revenue from external customers                     $21,541,989  $13,535,498  $16,203,520            --            --  $ 51,281,007
                                                    ===========  ===========  ===========   ===========  ============  ============

Operating profit (loss)                             $ 2,231,854  $ 2,416,861  $   623,421   $  (245,682) $ (3,628,630) $  1,397,824
Depreciation and amortization expense                   176,647       54,368      199,324        15,215     1,122,962     1,568,516
</TABLE>

<TABLE>
<CAPTION>
Nine months ended Sep. 30, 2000:                    US-PSG       US-DSG       Int'l-PSG     Supply        Corporate      Total
                                                  -----------  -----------  ------------  -----------    ------------  ------------
<S>                                               <C>          <C>           <C>           <C>           <C>           <C>
Total revenue                                     $68,125,206  $46,562,520  $ 61,043,396   $ 18,267,626  $      6,122  $194,004,870
Intersegment revenue                                 (529,275)          --   (23,040,893)   (17,116,610)           --   (40,686,778)
                                                  -----------  -----------  ------------   ------------  ------------  ------------
Revenue from external customers                   $67,595,931  $46,562,520  $ 38,002,503   $  1,151,016  $      6,122  $153,318,092
                                                  ===========  ===========  ============   ============  ============  ============

Operating profit (loss), including
special charges                                   $ 5,787,832  $ 7,706,347  $ (1,890,942)  $   (656,887) $(13,760,871) $ (2,814,521)
Depreciation and amortization expense                 495,985      174,006       622,637         86,812     3,532,487     4,911,927
</TABLE>

<TABLE>
<CAPTION>
Nine months ended Sep. 30, 2000:                    US-PSG       US-DSG      Int'l-PSG      Supply        Corporate       Total
                                                  -----------  -----------  -----------   -----------    ------------  ------------
<S>                                               <C>          <C>          <C>           <C>          <C>           <C>
Total revenue                                     $63,494,901  $44,001,123  $ 54,384,187   $ 15,648,359            --  $177,528,570
Intersegment revenue                               (1,209,855)          --   (8,397,138)    (15,648,359)           --   (25,255,352)
                                                  -----------  -----------  ------------   ------------  ------------  ------------
Revenue from external customers                   $62,285,046  $44,001,123  $ 45,987,049             --            --  $152,273,218
                                                  ===========  ===========  ============   ============  ============  ============

Operating profit (loss)                           $ 5,877,177  $ 9,280,065  $    759,202   $   (484,191) $(14,982,302) $    449,951
Depreciation and amortization expense                 473,246      180,573       568,553         45,644     3,189,393     4,457,409
</TABLE>

Financial information relating to the Company's Corporate segment is as follows:

<TABLE>
<CAPTION>
                                            Three months ended Sep. 30,    Nine months ended Sep. 30,
                                            ---------------------------------------------------------
                                                2000           1999           2000           1999
                                            ------------   ------------   ------------   ------------
<S>                                         <C>            <C>            <C>            <C>
Engineering and other corporate expenses    $  1,450,016   $  1,102,019   $  4,086,641   $  3,593,607
General and administrative                     1,656,602      1,403,649      5,353,300      4,324,302
Depreciation and amortization                  1,230,906      1,122,962      3,532,487      3,189,393
Special charges                                1,361,241             --      1,361,241      3,875,000
                                            ------------   ------------   ------------   ------------

  Operating Expenses                        $  5,698,765   $  3,628,630   $ 14,333,669   $ 14,982,302
                                            ============   ============   ============   ============
</TABLE>

Sales by geographic area were as follows:

<TABLE>
<CAPTION>
                                            Three months ended Sep. 30,    Nine months ended Sep. 30,
                                            ---------------------------------------------------------
                                                2000           1999           2000           1999
                                            ------------   ------------   ------------   ------------
<S>                                         <C>            <C>            <C>            <C>
United States                               $ 36,860,999   $ 35,077,487   $115,315,589   $106,286,169
Europe                                         8,671,893     14,120,351     32,773,447     41,667,396
Other                                          1,732,259      2,083,169      5,229,056      4,319,653
                                            ------------   ------------   ------------   ------------

   Total Revenues                           $ 47,265,151   $ 51,281,007   $153,318,092   $152,273,218
                                            ============   ============   ============   ============
</TABLE>


                                       9
<PAGE>   10


                          ULTRAK, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   (Unaudited)

5. Comprehensive Income (Loss):

Total comprehensive income (loss) is as follows:

<TABLE>
<CAPTION>
                                                  Three months ended Sep. 30,    Nine months ended Sep. 30,
                                                  ---------------------------------------------------------
                                                      2000           1999           2000           1999
                                                  ------------   ------------   ------------   ------------
<S>                                               <C>            <C>            <C>            <C>
Net Income (Loss)                                 $ (3,803,023)  $    875,760   $ (4,161,891)  $    478,013

Other Comprehensive Income (Expense):

     Currency Translation Adjustment                (2,177,009)       646,044     (4,139,332)      (961,192)
     Unrealized Gain (Loss) on Investments
                                                      (116,161)            --         28,687        171,874
                                                  ------------   ------------   ------------   ------------

                                                    (2,293,170)       646,004     (4,110,645)      (789,318)
                                                  ------------   ------------   ------------   ------------

Comprehensive income (loss)                       $ (6,096,193)  $  1,521,804   $ (8,272,536)  $   (311,305)
                                                  ============   ============   ============   ============
</TABLE>




<TABLE>
<CAPTION>
                                                          Foreign     Unrealized    Accumul. Other
                                                         Currency   Gain (Loss) On   Comprehensive
The activity for the three months ended Sep. 30, 2000      Items      Investments       Loss
related to the following:                              -----------  --------------  --------------
<S>                                                    <C>            <C>            <C>
Balance as of June 30, 2000                            $(5,461,886)   $ (423,026)    $(5,884,912)
Current Period Change                                   (2,177,009)     (116,161)     (2,293,170)
                                                       -----------    ----------     -----------
Balance as of September 30, 2000                       $(7,638,895)   $ (539,187)    $(8,178,082)
                                                       ===========    ==========     ===========
</TABLE>


<TABLE>
<CAPTION>
                                                          Foreign     Unrealized    Accumul. Other
                                                         Currency   Gain (Loss) On   Comprehensive
The activity for the three months ended Sep. 30, 2000      Items      Investments       Loss
related to the following:                              -----------  --------------  --------------
<S>                                                    <C>            <C>            <C>
Balance as of June 30, 1999                            $(2,402,850)           --     $(2,402,850)
Current Period Change                                      646,044            --         646,044
                                                       -----------    ----------     -----------
Balance as of September 30, 1999                       $(1,756,806)           --     $(1,756,806)
                                                       ===========    ==========     ===========
</TABLE>


<TABLE>
<CAPTION>
                                                          Foreign     Unrealized    Accumul. Other
                                                         Currency   Gain (Loss) On   Comprehensive
The activity for the three months ended Sep. 30, 2000      Items      Investments       Loss
related to the following:                              -----------  --------------  --------------
<S>                                                    <C>            <C>            <C>
Balance as of December 31, 1999                        $(3,499,563)   $ (567,874)    $(4,067,437)
Current Period Change                                   (4,139,332)       28,687      (4,110,645)
                                                       -----------    ----------     -----------
Balance as of September 30, 2000                       $(7,638,895)   $ (539,187)    $(8,178,082)
                                                       ===========    ==========     ===========
</TABLE>


<TABLE>
<CAPTION>
                                                          Foreign     Unrealized    Accumul. Other
                                                         Currency   Gain (Loss) On   Comprehensive
The activity for the three months ended Sep. 30, 2000      Items      Investments       Loss
related to the following:                              -----------  --------------  --------------
<S>                                                    <C>            <C>            <C>
Balance as of December 31, 1998                        $  (795,614)   $ (171,874)    $  (967,488)
Current Period Change                                     (961,192)      171,874        (789,318)
                                                       -----------    ----------     -----------
Balance as of September 30, 1999                       $(1,756,806)           --     $(1,756,806)
                                                       ===========    ==========     ===========
</TABLE>


                                       10
<PAGE>   11


                          ULTRAK, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

                                   (UNAUDITED)

6. Special Charges

Special charges totaled $1,361,241 for the quarter ended September 30, 2000.
These charges were incurred for severance obligations of the company related to
the separation of three former executives, severance obligations related to the
outsourcing of manufacturing operations in California and Australia, and the
proxy contest with Detection Systems, Inc., a company of which Ultrak, Inc. is a
21% stockholder. The detail of these charges is as follows:

<TABLE>
<CAPTION>

                                                        Special Charge
                                                        --------------
<S>                                                     <C>
Severance                                               $      584,067
California Outsourcing                                  $       84,465
Australia Outsourcing                                   $       75,000
Detection Systems, Inc. Proxy Contest                   $      617,709
                                                        --------------

                                                        $    1,361,241
                                                        ==============
</TABLE>

The Company incurred $3,875,000 of non-recurring special charges in 1999 related
to a restructuring plan that commenced in June 1999. The Company expects the
restructuring to be complete by the end of 2000. The current year activity is
summarized as follows:

Total 1999 restructuring plan for the nine months ended September 30, 2000 is
summarized as follows:

<TABLE>
<CAPTION>
                                                      Accrued at                       Accrued at
                                                  December 31, 1999    Settled     September 30, 2000
                                                  -----------------  -----------   ------------------
<S>                                               <C>                <C>           <C>
Severance and other related employee costs        $         918,807      918,807                   --
Leased facilities and other termination costs               830,266      514,066              316,200
                                                  -----------------  -----------   ------------------
                                                  $       1,749,073    1,432,873              316,200
                                                  =================  ===========   ==================
</TABLE>


7. Intervision Sale

On July 1, 2000, the Company sold certain assets of its UK-based business,
Intervision Express Ltd. ("Intervision"), to Norbain SD, Ltd. ("Norbain"), a
UK-based distributor of CCTV and access control equipment. The Company received
approximately $2.1 million in cash for inventory and certain other assets
including use of the Intervision tradename. Ultrak retained the right to sell
Ultrak branded products directly to systems integrators and installers in
Intervision's previous market in the UK and Ireland.

In addition, the Company granted Norbain distribution exclusivity for its
Diamond-series dome product line and its CCTV products in the UK. To maintain
its exclusivity, Norbain must purchase at least $6 million of Ultrak-branded
CCTV products and dome systems through the end of 2002.


                                       11
<PAGE>   12


                          ULTRAK, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

          For the Three Months ended September 30, 2000 compared to the
                      Three Months ended September 30, 1999

Results of Operations

For the three months ended September 30, 2000, net sales were $47,265,151, a
decrease of $4,015,856 (8%) over the same period in 1999. This was primarily due
to the sale of Intervision, as well as adverse impacts of the Euro decline.

Gross profit margins on net sales decreased to 29.7% for the three months ended
September 30, 2000 from 32.9% for the same period in 1999. This decrease in
gross profit margin was due to lower worldwide systems sales.

Marketing and sales expenses were $8,909,798, an increase of $570,314 (6%) over
the same period in 1999. Marketing and sales expenses for the three months ended
September 30, 2000 were 18.8% of net sales, up from 16.3% for the same period in
1999. This net increase was due to the effect of acquisitions completed during
1999, the effect of hiring additional field sales personnel, and the effect of
hiring additional sales support and marketing personnel in anticipation of new
product introductions and resulting sales activities. There were increased
advertising, promotion, and freight costs associated with the sales and shipment
of new standard products. Part of these increases were offset by decreases due
to a reduction in field sales and support personnel in our International PSG
segment and the sale of Intervision.

General and administrative expenses were $5,705,912 for the three months ended
September 30, 2000, an increase of $141,748 (3%) over the same period in 1999.
General and administrative expenses for the three months ended September 30,
2000 were 12.0% of net sales, up from 10.9% of net sales for the same period in
1999. This increase represents the outsourcing of SAP basis support and an
increase in hiring costs and service contracts. This increase is partially
offset by a reduction in expenses due to the outsourcing of manufacturing
operations in Australia and California, as well as the sale of Intervision.

Special charges totaled $1,361,241 for the three months ended September 30,
2000. These charges were incurred for severance obligations of the company
related to the separation of three former executives, severance obligations
related to the outsourcing of manufacturing operations in California and
Australia, and the proxy contest with Detection Systems, Inc., a company of
which Ultrak, Inc. is a 21% stockholder.


                                       12
<PAGE>   13


                          ULTRAK, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS, CONTINUED

          For the Three Months ended September 30, 2000 compared to the
                      Three Months ended September 30, 1999


Results of Operations, continued

Other expense was $950,060 for the three months ended September 30, 2000, an
increase of $1,088,657 (785%) from the same period in 1999. This net increase in
other expenses resulted primarily from a $389,493 reduction in income on the
sale of investments from the same period in 1999 and an increase in interest
rates paid by the Company on its credit facility due to an increase in net
borrowings of approximately $2.4 million over the same period in 1999. A
decrease in the Company's equity in the income of Detection Systems, Inc.
("DETC") of $220,000 over the same period in 1999 also contributed to the
increase in other expense.


                                       13
<PAGE>   14


                          ULTRAK, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS, CONTINUED

          For the Nine Months ended September 30, 2000 compared to the
                      Nine Months ended September 30, 1999


Results of Operations

For the nine months ended September 30, 2000, net sales were $153,318,092, an
increase of $1,044,874 (1%) over the same period in 1999. This was primarily due
to increases in sales of standard products and observation systems. The increase
can also be attributed to an increase in sales of consumer/do-it-yourself
products by the Company's e-commerce site: SecurityandMore.com, which began
operating in September 1999. These increases were partially offset by a loss in
sales due to the sale of Intervision, as well as adverse impacts of the Euro
decline.

Gross profit margins on net sales decreased to 30.6% for the nine months ended
September 30, 2000 from 32.8% for the same period in 1999. This decrease in
gross profit margin was due to lower systems sales in the International segment.

Marketing and sales expenses were $26,727,700, an increase of $1,726,493 (6%)
over the same period in 1999. Marketing and sales expenses for the nine months
ended September 30, 2000 were 17.4% of net sales, up from 16.4% for the same
period in 1999. This net increase was due to the effect of acquisitions
completed during 1999, the effect of hiring additional field sales personnel,
and the effect of hiring additional sales support and marketing personnel in
anticipation of new product introductions and resulting sales activities. Part
of these increases were offset by decreases due to a reduction in field sales
and support personnel in our International PSG segment and the sale of
Intervision.

General and administrative expenses were $16,693,767, an increase of $548,639
(4%) over the same period in 1999. General and administrative expenses for the
nine months ended September 30, 2000 were 10.8% of net sales, up from 10.6% for
the same period in 1999. This increase represents the outsourcing of SAP basis
support and an increase in hiring costs and service contracts. This increase is
partially offset by a reduction in expenses due to the outsourcing of
manufacturing operations in Australia and California, as well as the sale of
Intervision.


                                       14
<PAGE>   15


                          ULTRAK, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS, CONTINUED

          For the Nine Months ended September 30, 2000 compared to the
                      Nine Months ended September 30, 1999

Special charges were $1,361,241, compared with $3,875,000 for the nine months
ended September 30, 1999. The charges incurred in the nine months ended
September 30, 2000 were for severance obligations related to the separation of
three former executives, severance obligations related to the outsourcing of
manufacturing operations in California and Australia, and the proxy contest with
Detection Systems, Inc., a company of which Ultrak, Inc. is a 21% stockholder.
The special charges recorded in the nine months ended September 30, 1999 were
for severance obligations incurred by the Company related to the separation of
two former officers, European restructuring expenses such as employee severance,
terminating leases, and consolidation of all purchasing, shipping, and billing
activities to Antwerp, Belgium, estimated closing costs of three sales and
distribution offices in the U.S., and costs to centralize the accounting and
finance functions to the U.S. headquarters.

Other expense was $2,387,843 for the nine months ended September 30, 2000, an
increase of $2,776,511 (714%) from the same period in 1999. This net increase in
other expenses resulted primarily from a $1,194,876 reduction in income on the
sale of investments from the same period in 1999 and an increase in interest
rates paid by the Company on its credit facility as a result of the two-year
agreement signed on March 22, 2000. A decrease of the Company's equity in the
income of Detection Systems, Inc. ("DETC") by $746,000 over the same period in
1999 also contributed to the increase in other expense.


                                       15
<PAGE>   16


                          ULTRAK, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS, CONTINUED


Liquidity and Capital Resources

The Company had a net decrease in cash and cash equivalents for the nine months
ended September 30, 2000 of approximately $2,485,000. Net cash provided by
operating activities for the period was approximately $4.8 million versus $15.3
million for the comparable period. The most significant differences from 1999 to
2000 are the net losses in 2000, payment of accrued restructuring costs and a
net reduction in past due European payables to bring accounts with major
suppliers to current status. Net cash used in investing activities was
approximately $5.0 million consisting of purchases of property and equipment,
primarily related to the worldwide computer software implementation, and
purchases of investments. Net cash provided by financing activities was
approximately $950,000, consisting primarily of issuance of common stock, offset
by net repayments on the revolving line of credit and by the payment of
dividends on the Company's outstanding Series A Preferred Stock.

As of September 30, 2000, the Company had unused available revolving lines of
credit under its bank facility totaling $4.6 million. The Company had obtained
waivers from its lenders for all of its covenants as of the date of this report.
Fees for these waivers will be approximately $175,000.

The Company believes that internally generated funds, available borrowings under
the bank credit facility and current amounts of cash and cash equivalents will
be sufficient to meet its presently anticipated needs for working capital,
capital expenditures and acquisitions, if any, for at least the next twelve
months.

Quantitative and Qualitative Disclosures about Market Risk

There has been no material change in the Company's market risk exposure since
the filing of the 1999 Annual Report on Form 10-K.


                                       16
<PAGE>   17


                          ULTRAK, INC. AND SUBSIDIARIES

                        QUARTER ENDED SEPTEMBER 30, 2000

   Part II: Other Information

       Item 1.   Legal Proceedings

                 Ultrak previously commenced litigation seeking to invalidate
                 the golden parachute agreements between Detection Systems, Inc.
                 ("DETC") and each of Karl K Kostusiak, its Chairman and Chief
                 Executive Officer, and David B. Lederer, currently its
                 Executive Vice President and to preliminarily and permanently
                 enjoin the making of any payments under them, as well as for
                 other relief, by filing a shareholder derivative complaint on
                 June 30, 2000 in the United States District Court for the
                 Western District of New York (the "Court") against DETC's five
                 current directors, including Messrs. Kostusiak and Lederer.

                 On September 27, 2000 Detection Systems announced that the
                 golden parachute agreements with Messrs. Kostusiak and Lederer
                 had been modified and amended and sent a letter to the Court
                 arguing as a result of this action that Ultrak's lawsuit was
                 rendered moot. Upon determining that these new agreements
                 significantly reduced the potential cost to Detection Systems
                 shareholders in the event of a change of control, and because
                 the goal of Ultrak's lawsuit had been achieved, on October 2,
                 2000, Ultrak informed the federal court that it intended to
                 submit papers to the court for a voluntary dismissal of the
                 case. On October 24, 2000, the Court approved Ultrak's
                 voluntary dismissal of the lawsuit, without prejudice, and
                 ordered that the Court will consider, when submitted, an
                 application by Ultrak to recover fees paid by it in connection
                 with the lawsuit. There can be no assurance that Ultrak will
                 prevail in recovering these fees or as to the amount of fees it
                 may recover.

       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


                                       17
<PAGE>   18


                          ULTRAK, INC. AND SUBSIDIARIES

                        QUARTER ENDED SEPTEMBER 30, 2000

   Part II: Other Information, Continued

       Item 5.   Other Information

                 Not Applicable

       Item 6.   Exhibits and Reports on Form 8-K

                 (a) Exhibits filed with this report:

                 Exhibit 10.27: Amendment No. 5 to Ultrak, Inc 1988
                 Non-Qualified Stock Option Plan, adopted by the Board as of
                 January 24, 2000.

                 Exhibit 27: Financial Data Schedule

                 (b) Reports on Form 8-K.

                 A Current Report on Form 8-K was filed with the Securities and
                 Exchange Commission on October 24, 2000 reporting the
                 resignation of Tim Torno, Vice President Finance and Chief
                 Financial Officer and the appointment of Chris Sharng as Senior
                 Vice President and Chief Financial Officer of the Company.



                                       18
<PAGE>   19


                          ULTRAK, INC. AND SUBSIDIARIES

                                   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.



                                   ULTRAK, INC.
                                  (Registrant)


   Date: November 14, 2000            By: /s/ Chris Sharng
                                         ---------------------------------------
                                         Chris Sharng, Senior Vice President and
                                         Chief Financial Officer


                                       19
<PAGE>   20


                               INDEX TO EXHIBITS



<TABLE>
<CAPTION>
EXHIBIT
NUMBER           DESCRIPTION
-------          -----------
<S>              <C>
10.27            Amendment No. 5 to Ultrak, Inc 1988 Non-Qualified Stock Option
                 Plan, adopted by the Board as of January 24, 2000.

27               Financial Data Schedule
</TABLE>