<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 October 1, 2000

/ /   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: 4,051,400 shares of common stock, no
par value, as of November 1, 2000.


<PAGE>   2



                          PART I. FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

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


<TABLE>
<CAPTION>

              ASSETS                                                            10/1/00      12/31/99
                                                                               ---------    ----------
<S>                                                                            <C>          <C>

CURRENT ASSETS:
     Cash ...............................................................      $    93       $    49
     Accounts receivable, net of allowance of $31 at October 1, 2000,
         and $21 at December 31, 1999 ...................................        1,314         1,263
     Inventories ........................................................        1,441         1,355
     Prepaid expenses and other current assets ..........................          428           309
                                                                               -------       -------
              Total current assets ......................................        3,276         2,976

PROPERTY, PLANT AND EQUIPMENT
     At cost ............................................................        6,288         6,046
     Accumulated depreciation ...........................................        5,423         5,271
                                                                               -------       -------
                                                                                   865           775
OTHER ASSETS:
     Intangible pension asset ...........................................          108           108
     Goodwill ...........................................................          156           171
     Other non current assets ...........................................          143           160
                                                                               -------       -------

              Total Assets ..............................................      $ 4,548       $ 4,190
                                                                               =======       =======

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Note payable .......................................................      $ 2,315       $ 1,842
     Cash overdrafts ....................................................          241           246
     Accounts payable ...................................................          784           466
     Accrued liabilities ................................................          472           477
                                                                               -------       -------
              Total current liabilities .................................        3,812         3,031

NON-CURRENT LIABILITIES:
     Pension benefits payable ...........................................          272           301
     Other ..............................................................          150           210
                                                                               -------       -------
              Total non-current liabilities .............................          422           511

STOCKHOLDERS' EQUITY:
     Common stock, no par value; authorized, 6,000,000 shares; issued and
         outstanding 4,051,400 shares at October 1, 2000,
         and December 31, 1999 ..........................................        3,824         3,824
     Accumulated deficit ................................................       (3,313)       (2,979)
                                                                               -------       -------
                                                                                   511           845
     Minimum pension liability adjustment ...............................         (197)         (197)
                                                                               -------       -------
              Net stockholders' equity ..................................          314           648
                                                                               -------       -------

              Total Liabilities and Stockholders' Equity ................      $ 4,548       $ 4,190
                                                                               =======       =======

</TABLE>

<PAGE>   3


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


<TABLE>
<CAPTION>

                                                                        QUARTER ENDED                 NINE MONTHS ENDED
                                                                    10/1/00         10/3/99       10/1/00         10/3/99
                                                                 ------------   ------------   ------------   ------------
<S>                                                             <C>             <C>            <C>            <C>

NET SALES .....................................................  $     3,165    $     3,349    $     9,947    $     9,843
COST OF SALES .................................................        2,268          2,389          7,186          7,022
                                                                 ------------   ------------   ------------   ------------
              Gross profit ....................................          897            960          2,761          2,821

OPERATING EXPENSES:
     Selling expenses .........................................          555            644          1,976          1,946
     General and administrative ...............................          279            347            910            983
                                                                 ------------   ------------   ------------   ------------
              Total operating expenses ........................          834            991          2,886          2,929
                                                                 ------------   ------------   ------------   ------------

              Income (loss) from operations ...................           63            (31)          (125)          (108)

OTHER EXPENSE:
     Interest expense, net ....................................          (58)           (33)          (159)           (88)
     Other, net ...............................................          (21)           (53)           (50)           (63)
                                                                 ------------   ------------   ------------   ------------
              Total other expense .............................          (79)           (86)          (209)          (151)
                                                                 ------------   ------------   ------------   ------------

LOSS BEFORE INCOME TAXES ......................................          (16)          (117)          (334)          (259)
INCOME TAX BENEFIT ............................................            0              0              0              0
                                                                 ------------   ------------   ------------   ------------

NET  LOSS .....................................................  $       (16)   $      (117)   $      (334)   $      (259)
                                                                 ============   ============   ============   ============

     Net loss per share based on basic and diluted
          weighted average number of common
          equivalent shares outstanding .......................  $     (0.00)   $     (0.03)   $     (0.08)   $     (0.06)

     Weighted Average Common Equivalent
          Shares Outstanding                Basic..............    4,051,400      4,051,400      4,051,400      4,051,400
                                        Diluted ...............    4,051,400      4,051,400      4,051,400      4,051,400

</TABLE>


There is no difference between Net Loss and Total Comprehensive Loss for the
quarter or nine-month periods ending October 1, 2000 and October 3, 1999.

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



<PAGE>   4


                                  CRAMER, INC.
                            STATEMENTS OF CASH FLOWS
                                    UNAUDITED
                             (Amounts in Thousands)
<TABLE>
<CAPTION>


                                                                   Nine Months Ended
                                                                  10/1/00    10/3/99
                                                                  -------    -------
<S>                                                               <C>        <C>

Cash flows from operating activities:
Net loss ......................................................   $  (334)   $  (259)
Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
     Depreciation and amortization ............................       184        192
     Changes in operating assets and liabilities:
         Accounts receivable ..................................       (51)      (373)
         Inventories ..........................................       (86)        53
         Prepaid expenses .....................................      (119)       (39)
         Accounts payable and other current liabilities .......       308        224
         Other non-current liabilities ........................       (89)       (73)
                                                                  -------    -------

                      Net cash used by operating activities ...      (187)      (278)
                                                                  -------    -------

Cash flows from investing activities:
     Capital expenditures .....................................      (242)      (209)
                                                                  -------    -------

Cash flows from financing activities:
     Principal payments on notes payable ......................    (3,385)    (3,810)
     Proceeds from issuance of notes payable ..................     3,858      4,306
                                                                  -------    -------

                      Net cash provided by financing activities       473        496
                                                                  -------    -------

Net increase in cash ..........................................        44         12
Cash at beginning of year .....................................        49         63
                                                                  -------    -------

Cash at end of quarter ........................................   $    93    $    75
                                                                  =======    =======

Supplemental disclosures:
     Cash paid during the period for:
         Interest .............................................   $   159    $    88
                                                                  =======    =======
         Income tax ...........................................   $     0    $     0
                                                                  =======    =======

</TABLE>

<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 foregoing list of risks and uncertainties is not meant to be
         complete.

B.       SUMMARY OF OPERATIONS

         At $9,947,000, net sales for the first three quarters of 2000 were
         $104,000, or 1%, higher than during the same period in 1999. The
         Company's sales in the first three quarters of 2000 to its catalog
         distributors increased by 18% as compared to the first three-quarters
         of 1999. Management attributes the Company's sales growth in this area
         to increased sales contacts with key personnel at these targeted
         companies and programs that provided these distributors with more
         specific incentive programs. The sales increase to catalog distributors
         was offset by an 8% decrease in sales volume to contract furniture
         dealers. This sales decrease is due to lower unit volume of the


<PAGE>   6

         Company's Triton product. Management attributes the decrease in volume
         to increased competition in the 24 hour, heavy duty usage niche
         pioneered by the Triton as other seating manufacturers introduce
         alternative products.

         The Company's backlog at the end of October 1, 2000 was $767,000. This
         is a decrease of $233,000 as compared to the Company's backlog at the
         end of 1999. The Company has been able to reduce its order backlog by
         implementing cellular manufacturing and the use of Kanbans and similar
         visual production management techniques. These improvements in
         manufacturing and scheduling efficiency are allowing the Company to
         schedule approximately 90% of its orders with a 5 day lead time. This
         compares to the 3 to 4 week lead time that was used for scheduling in
         1999. Management believes the Company's shorter lead-time provides
         better customer service and is a competitive advantage in many
         situations.

         As a percentage of net sales, gross margins in the first nine months of
         2000 were 27.8% as compared to 28.6% in the first nine months of 1999.
         The decrease in gross margins reflects the increased labor costs in the
         first quarter of the year arising from training the Company's
         production employees in the use of the new cellular manufacturing
         techniques.

         At $2,886,000, total operating expenses during the first three quarters
         of 2000 are substantially unchanged from the total operating expenses
         for the same period in 1999. However, operating expenses in the third
         quarter of 2000 were only $834,000. This is a $157,000, or 16%,
         reduction as compared to these operating expenses in the third quarter
         of 1999. In addition, third quarter 2000 operating expenses were
         $228,000, or 21%, less than operating expenses in the second quarter of
         2000.

         The reduction in operating expenses reflects management's decision in
         July of 2000 to restructure the Company's sales operations targeted
         toward the internet and other direct to end user sales channels. In the
         12 months ending June 2000, the company had spent approximately
         $633,000 in costs such as staffing of a telemarketing center, printing
         and postage for literature mailed directly to end-users, and
         advertisements in selected national publications. These costs
         significantly exceeded the sales in these new market channels and were
         not producing the desired return. Therefore, the Company reduced its
         costs by (a) contracting with a third party to staff the telemarketing
         center on a commissioned basis, (b) significantly reducing the number
         of mailing to end users, and (c) eliminating the use of national
         advertising campaigns.

         Interest expense in the first three-quarters of 2000 increased by
         $71,000 as compared to the first three-quarters of 1999. While the
         increase is principally due to the increase in average borrowing
         levels, interest rates are slightly higher in 2000 as compared to 1999.

<PAGE>   7

         Other non-operating expenses decreased by $13,000 in the first nine
         months of 2000 as compared to the same period in 1999. Furthermore,
         these costs were $32,000 lower in the third quarter of 2000 as compared
         to the third quarter of 1999. The decrease is due to the Company's sale
         for $25,000 of certain intellectual property rights related to the use
         of infrared keyboard technology to another manufacturer of high-end
         ergonomic keyboards.

         In the third quarter of 2000 the Company transferred the keyboard
         manufacturing of its Floating Arm keyboard product line from a contract
         manufacturer to another manufacturer and distributor of ergonomic
         keyboards. The ergonomic keyboard manufacturer will produce the
         Floating Arms keyboard for the Company and its own use. This
         manufacturer distributes its other ergonomic keyboards through market
         channels that the Company does not participate in. Therefore,
         management believes that the other manufacturers' sales will not impact
         the sale of the Company's Floating Arm keyboard products. The other
         manufacturer will pay a royalty to the Company for all Floating Arm
         keyboards it sells.

         The Company's cost for individual Floating Arm keyboards will be
         substantially the same as that charged by the contract manufacturer.
         However, as a result of this transfer, the Company was able to
         eliminate an approximately $7,700 monthly charge by the contract
         manufacturer for inventory management and facility usage.

         As a result of the cost savings actions described above, the Company
         reduced its loss before income taxes from $235,000 in the second
         quarter of 2000 to $16,000 in the third quarter of 2000. Management
         notes that the operating trend within the quarter is positive as the
         Company had a net loss in July and then net income in both August and
         September.

         Management expects that the restructuring of the sales and marketing
         efforts associated with the direct to end user sales channels will
         return the Company to profitability. The Company's core seating and
         utility product business has been consistently profitable. Sales to
         catalog distributors are increasing and management expects this trend
         to continue. Furthermore, while sales of Tritons to contract furniture
         dealers have decreased recently, management expects that these sales
         will be replaced by the sales of the Company's new RhinoPlus seating
         line and other new proprietary products. These products were recently
         introduced and have gathered favorable reviews.

         While management expects the 4th quarter to be profitable, it is likely
         that the overall results for 2000 will be a net loss.


C.       FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

         The Company's trade accounts receivable increased by $51,000 from
         December 31, 1999 to October 1, 2000. The increase is due to the timing
         of

<PAGE>   8



         sales in the final weeks of the respective periods. Weekly sales in the
         final month of 1999 aggregated $1,121,000 while sales in the final
         month of the quarter ended October 1, 2000 aggregated $1,251,000, an
         increase of $130,000. Trade accounts receivable at the end of the third
         quarter of 2000 is $158,000 lower than at the end of the second quarter
         of 2000. This reflects an improvement in aging. Days sales outstanding
         decreased from 40 to 38 during the third quarter.

         Inventories increased by $86,000 during the period from December 31,
         1999 to October 1, 2000. The difference represents normal fluctuations
         in the Company's inventory balances. The above is net of a $110,000
         sale of inventory to another keyboard manufacturer in conjunction with
         the transfer of the manufacturing of this product (see above).

         Prepaid expenses and other current assets increased by $119,000 during
         the first three quarters of 2000. The increase is principally due to a
         short term note receivable for the keyboard inventory transfer.
         Payments are being made on the note in accordance with its term and
         management expects that the full balance will be paid within the coming
         12 months.

         Capital expenditures aggregated $242,000 during the first
         three-quarters of 2000. Approximately $45,000 consisted of the
         programming and development costs for significantly enhancing the
         Company's two web sites. Another $72,000 consists of improvements in
         electrical wiring and fixtures made in the Company's manufacturing
         facility as part of the development of new work cells. $25,000 was
         expended to purchase new data processing equipment. The remaining
         increase consists of improvements and additions to tooling used in
         manufacturing the Company's products.

         The Company's accounts payable balance at October 1, 2000 increased by
         $318,000 from the December 31, 1999 balance. The increase is due to
         actions by the Company to improve cash flow by more aggressive payment
         terms with vendors.

         The Company's notes payable increased by $473,000 during the first
         three quarters of 2000. The increase is principally due to the
         increases in accounts receivable, inventory, short term receivable, and
         property plant and equipment discussed above as well as the Company's
         operating loss. During the most recent quarter, the Company was able to
         reduce amounts due on this note by $155,000.

         During the first three-quarters of 2000, the Company reduced its
         long-term pension liability by $29,000 in accordance with established
         payment schedules.

         The Company continues to participate in a consolidated cash management
         and credit facility with its parent, Rotherwood, and other affiliated
         companies. (See discussion in Note 3 to the Financial Statements in the
         Company's 1999


<PAGE>   9


         Form 10KSB.) At the end of the third quarter of 2000 the credit
         facility aggregated $2,600,000 and was for the sole use of the Company
         and one other company substantially owned by Rotherwood. Rotherwood
         supports this new facility by a $2 million letter of credit. At
         present, the entire credit facility is available for the Company's use.
         This situation is expected to continue through out the note's term.
         Members of the Company's management provide financial advisory services
         for the affiliated company and is aware of its expected cash
         availability and / or cash needs. As a result, Management believes that
         the Company's access to the entire $2,600,000 credit facility, along
         with existing cash balances and cash generated from future operations,
         will be adequate to meet future operating requirements and liquidity
         needs.

PART II. OTHER INFORMATION

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

         None.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         None.


<PAGE>   10




                                   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: 11/14/00                                  /s/ Gary Rubin
     -----------------                          --------------------------------
                                                Gary A. Rubin
                                                Vice President, Finance & CFO