<PAGE>   1


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              450 Fifth Street, NW
                             Washington, D.C. 20549

                                   FORM 10-QSB



(Mark One)
[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

                                     For the quarterly period ended July 1, 2001

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                         For the transition period from            to
                                                        ----------    ----------
                                                  Commission file number 2-69336



                                  CRAMER, INC.

A Kansas Corporation                             IRS Employment I.D. #48-0638707
625 Adams Street
Kansas City, Kansas  66105                          Telephone No. (913) 621-6700

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X]
No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,041,400 shares of common stock, no
par value, as of August 1, 2001.


<PAGE>   2


                          PART I. FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS

                                  CRAMER, INC.
                                  BALANCE SHEET
                                    UNAUDITED
                    (Amounts in Thousands, Except Share Data)

<TABLE>
<CAPTION>
              ASSETS                                                                 7/1/01            12/31/00
                                                                                    -------            --------
<S>                                                                                 <C>                <C>
CURRENT ASSETS:
     Accounts receivable, net of allowance of $50                                   $ 1,124            $ 1,509
     Inventories                                                                      1,107              1,558
     Prepaid expenses                                                                   393                336
                                                                                    -------            -------
              Total current assets                                                    2,624              3,403

PROPERTY, PLANT AND EQUIPMENT
     At cost                                                                          6,214              6,187
     Accumulated depreciation                                                         5,474              5,369
                                                                                    -------            -------
                                                                                        740                818
OTHER ASSETS:
     Intangible pension asset                                                            56                 56
                                                                                    -------            -------


              Total Assets                                                          $ 3,420            $ 4,277
                                                                                    =======            =======

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Cash Overdrafts                                                                $   234            $   282
     Note payable                                                                     2,145              2,302
     Accounts payable                                                                   717              1,004
     Accrued liabilities                                                                776                664
                                                                                    -------            -------
              Total current liabilities                                               3,872              4,252

NON-CURRENT LIABILITIES:
     Pension benefits payable                                                           307                316
     Other                                                                              165                185
                                                                                    -------            -------
              Total non-current liabilities                                             472                501

STOCKHOLDERS' EQUITY:
     Common stock, no par value; authorized, 6,000,000 shares;
         issued and outstanding 4,041,400 shares at July 1, 2001,
         issued and outstanding 4,051,400 shares at December 31, 2000                 3,819              3,824
     Accumulated deficit                                                             (4,439)            (3,996)
                                                                                    -------            -------
                                                                                       (620)              (172)
     Minimum pension liability adjustment                                              (304)              (304)
                                                                                    -------            -------
              Net stockholders' equity                                                 (924)              (476)
                                                                                    -------            -------

              Total Liabilities and Stockholders' Equity                            $ 3,420            $ 4,277
                                                                                    =======            =======
</TABLE>



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<PAGE>   3

                                  CRAMER, INC.
                            STATEMENTS OF OPERATIONS
                                    UNAUDITED
                  (Amounts in Thousands, Except Per Share Data)



<TABLE>
<CAPTION>
                                                                         QUARTER ENDED                       SIX MONTHS ENDED
                                                                  7/1/01             7/2/00             7/1/01             7/2/00
                                                               -----------        -----------        -----------        -----------
<S>                                                            <C>                <C>                <C>                <C>
NET SALES                                                      $     2,519        $     3,299        $     5,817        $     6,782
COST OF SALES                                                        1,888              2,389              4,381              4,918
                                                               -----------        -----------        -----------        -----------
              Gross profit                                             631                910              1,436              1,864

OPERATING EXPENSES:
     Selling expenses                                                  497                745              1,021              1,421
     General and administrative                                        341                317                638                631
                                                               -----------        -----------        -----------        -----------
              Total operating expenses                                 838              1,062              1,659              2,052
                                                               -----------        -----------        -----------        -----------
              Loss from operations                                    (207)              (152)              (223)              (188)

OTHER INCOME (EXPENSE):
     Interest expense, net                                             (45)               (56)               (99)              (101)
     Other, net                                                        (74)               (27)              (121)               (29)
                                                               -----------        -----------        -----------        -----------
              Total other income (expense)                            (119)               (83)              (220)              (130)
                                                               -----------        -----------        -----------        -----------

LOSS BEFORE INCOME TAXES                                              (326)              (235)              (443)              (318)
INCOME TAX EXPENSE (BENEFIT)                                             0                  0                  0                  0
                                                               -----------        -----------        -----------        -----------

NET LOSS                                                       $      (326)       $      (235)       $      (443)       $      (318)
                                                               ===========        ===========        ===========        ===========

     Net loss per share based on weighted
         average number of common equivalent
         shares outstanding                                    $     (0.08)       $     (0.06)             (0.11)       $     (0.08)

     Weighted Average Common Equivalent
         Shares Outstanding               Basic                  4,041,400          4,051,400          4,041,400          4,051,400
                                        Diluted                  4,041,400          4,051,400          4,041,400          4,051,400
</TABLE>


These interim financial statements contain all adjustments required for them to
be comparable to the annual financial statements issued on Form 10KSB.




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                                  CRAMER, INC.
                            STATEMENTS OF CASH FLOWS
                                    UNAUDITED
                             (AMOUNTS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                             SIX MONTHS ENDED
                                                                                         7/1/01           7/2/00
                                                                                         ------           ------
<S>                                                                                      <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                                 $(443)           $(318)
Adjustments to reconcile net loss to net cash
     provided by (used in) operating activities:

     Depreciation and amortization                                                         106              141
     Changes in operating assets and liabilities:
         Accounts receivable                                                               385             (209)
         Inventories                                                                       451             (172)
         Prepaid expenses                                                                  (57)             (32)
         Accounts payable and accrued expenses                                            (223)             298
         Other non-current liabilities                                                     (29)             (90)
                                                                                         -----            -----

                      Net cash provided by (used by) operating activities                  190             (382)
                                                                                         -----            -----
Cash flows from investing activities:
     Capital expenditures                                                                  (28)            (227)
                                                                                         -----            -----

Cash flows from financing activities:
     Net cash provided (used) by financing activities                                     (162)             560
                                                                                         -----            -----

Net increase (decrease) in cash                                                              0              (49)
Cash at beginning of year                                                                                    49
                                                                                         -----            -----

Cash at end of quarter                                                                   $   0            $   0
                                                                                         =====            =====

Supplemental disclosures:
     Cash paid during the period for:
         Interest                                                                        $  99            $ 101
                                                                                         =====            =====
         Income tax                                                                      $   0            $   0
                                                                                         =====            =====
</TABLE>



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<PAGE>   5


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS

A.        FORWARD LOOKING STATEMENTS

         Except for the historical information contained herein, this report on
         Form 10-QSB contains forward-looking statements that involve risks and
         uncertainties. The Company's actual results could differ materially
         from the forward looking statements. In connection with the "safe
         harbor" provisions of the Private Securities Litigation Reform Act of
         1995, Cramer, Inc. reminds readers that there are many important
         factors that could cause the Company's actual results to differ
         materially from those projected in forward-looking statements of the
         Company made by, or on behalf of, the Company. When used in this Form
         10-QSB and in other filings by the Company with the Securities and
         Exchange Commission, in the Company's press releases and in oral
         statements made with the approval of an authorized executive officer,
         words or phrases such as "will likely result", "expects", "are expected
         to", "will continue", "is anticipated", "estimate", "project" or
         similar expressions are intended to identify forward-looking
         statements. The Company wishes to caution readers not to place undue
         reliance on such forward-looking statements.

         There are a number of reasons why investors should not place undue
         reliance on forward-looking statements. Among the risks and
         uncertainties that could cause the Company's actual results for future
         periods to differ materially from any forward-looking statements made
         are the following:

          -    Fluctuations or reductions in product demand and market
               acceptance

          -    The level of product development by the Company

          -    Capacity and supply constraints or difficulties

          -    The results of financing efforts

          -    The effect of new laws and regulations

          -    Unexpected additional expenses or operating losses

          -    Competition

          -    The Company's reliance on certain vendors for key components.

          -    The potential inability of the Company's new marketing channels
               to generate sufficient sales to cover sales, marketing and
               introduction costs

         The foregoing list of risks and uncertainties is not meant to be
         complete. For an additional discussion of risks that may impact the
         Company's future operations, please review the company's Annual Report
         on Form 10-KSB for the fiscal year ended December 31, 2000.

B.        SUMMARY OF OPERATIONS

         At $5,817,000, net sales in the first half of 2001 were $965,000 less
         than in the first half of 2000. Management attributes the company's
         decline in sales to an overall softening in the market for its
         products, as well as a strategic discontinuance of unprofitable product
         lines.

         Selling, and general & administrative expenses during the first half of
         2001



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<PAGE>   6

         decreased by $393,000 as compared to the same period in 2000. The
         decrease reflects management's efforts to reduce the Company's
         expenses.

         Primarily as a result of the decrease in sales, the Company experienced
         a $223,000 operating loss in the first half of 2001. This is an
         increase of $35,000 as compared to the net operating loss incurred in
         the same period in 2000.

         Net sales for the second quarter of 2001 were $2,519,000, $780,000
         lower than the comparable quarter of 2000.

C.        FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

         The Company's trade accounts receivable decreased by $385,000 from
         December 31, 2000 to July 1, 2001. The decrease is partially due to the
         decline in sales, as well as enhanced collection efforts.

         Inventories decreased by $451,000 during the first half of 2001. The
         difference represents less purchasing activity in conjunction with the
         decline in sales.

         Capital expenditures aggregated $28,000 during the first half of 2001,
         compared to $227,000 over the comparable period in 2000.

         The Company's accounts payable decreased by $335,000 from the December
         31, 2000 balance.

         The Company's notes payable decreased by $157,000 during the first half
         of 2001, compared to an increase of $560,000 over the same period of
         2000. The Company continues to participate in a consolidated cash
         management and credit facility with its parent, Rotherwood. (See
         discussion in Note 3 to the Financial Statements in the Company's 2000
         Form 10KSB.) The credit facility is subject to renewal in August of
         2001. Events during the past three months have decreased the certainty
         that the facility will be renewed by the current lender. In the first
         place, the Company has continued to operate at a loss and remains in
         violation of its financial net worth covenant under the loan. In the
         second, the parent, Rotherwood Ventures LLC, which has historically
         provided a $2 million letter of credit as collateral enhancement for
         the Company's working capital line of credit, has now informed the
         Company that it my not consent to renew the letter of credit on a
         permanent basis. Additionally, the lending parameters offered by the
         current lender, or through replacement financing, may not offer
         sufficient liquidity to allow the Company to continue current
         operations. These events increase the probability that the lender will
         not renew the loan and the probability that the Company may not remain
         viable as a going concern.

PART II.  OTHER INFORMATION


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ITEM 1.  LEGAL PROCEEDINGS

         The Company is a defendant in several lawsuits relating to product
         liability claims arising from accidents allegedly occurring in
         connection with the use of its products. The claims are covered by
         insurance and are being defended by the Company's independent counsel,
         or by counsel assigned by the insurance carriers, but are subject to
         deductibles ranging from $0 to $100,000. A number of the claimants
         allege substantial damages. While management believes the Company has
         substantial defenses with respect to the claims, the ultimate outcome
         of such litigation cannot be predicted with certainty. The Company has
         reasonably estimated and accrued in its financial statements its
         portion of the deductible as a product liability contingency. Such
         claims are an ordinary aspect of the Company's business.



ITEM 2.  CHANGES IN SECURITIES

         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         On August 7, 2001, the Company held its Annual Shareholders
         Meeting. The Company's sharholders approved, pursuant to the Proxy
         Statement, the appointment of Directors and new Auditors for fiscal
         2001.



ITEM 5.  OTHER INFORMATION

         None.



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         None.



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                                   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.



                                             CRAMER, INC.
                                             (Registrant)



Date: 8/21/01                                /s/ Greg Coward
    -----------                              -----------------------------------
                                             Greg Coward
                                             President



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