<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 April 4, 1999

[ ]     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 May 7, 1999.


<PAGE>   2


              




                          PART I. FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS

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

<TABLE>
<CAPTION>
              ASSETS                                                               4/4/99           12/31/98   
                                                                                   ------           --------   
<S>                                                                                <C>               <C>    
CURRENT ASSETS:
     Cash                                                                          $    40           $    63
     Accounts receivable, net of allowance of $21                                    1,408             1,114
     Inventories                                                                     1,403             1,483
     Prepaid expenses                                                                  325               230
                                                                                   -------           -------
              Total current assets                                                   3,176             2,890

PROPERTY, PLANT AND EQUIPMENT:
     At cost                                                                         5,933             5,818
     Accumulated depreciation                                                        5,118             5,068
                                                                                   -------           -------
                                                                                       815               750
OTHER ASSETS:
     Intangible pension asset                                                          160               160
     Goodwill                                                                          185               190
     Other non current assets                                                          182               189
                                                                                   -------           -------

              Total Assets                                                         $ 4,518           $ 4,179
                                                                                   =======           =======

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Note payable                                                                  $ 1,731           $ 1,548
     Accounts payable                                                                  541               429
     Accrued liabilities                                                               658               600
                                                                                   -------           -------
              Total current liabilities                                              2,930             2,577

NONCURRENT LIABILITIES:
     Pension benefits payable                                                          480               494
     Other                                                                             238               238
                                                                                   -------           -------
              Total noncurrent liabilities                                             718               732

STOCKHOLDERS' EQUITY:
     Common stock, no par value; authorized, 6,000,000 shares; issued and
         outstanding 4,051,400 shares at April 4, 1999,
         and December 31, 1998                                                       3,824             3,824
     Accumulated deficit                                                            (2,687)           (2,687)
                                                                                   -------           -------
                                                                                     1,137             1,137
     Minimum pension liability adjustment                                             (267)             (267)
                                                                                   -------           -------
              Net stockholders' equity                                                 870               870
                                                                                   -------           -------

              Total Liabilities and Stockholders' Equity                           $ 4,518           $ 4,179
                                                                                   =======           =======

</TABLE>


<PAGE>   3
                                  CRAMER, INC.
                              STATEMENTS OF INCOME
                                    UNAUDITED
                  (Amounts in Thousands, Except Per Share Data)



<TABLE>
<CAPTION>
                                                                      QUARTER ENDED
                                                              4/4/99                4/5/98    
                                                            -----------           -----------
<S>                                                         <C>                   <C>        
NET SALES                                                   $     3,201           $     3,180
COST OF SALES                                                     2,286                 2,339
                                                            -----------           -----------
              Gross profit                                          915                   841

OPERATING EXPENSES:

     Selling expenses                                               584                   576
     General and administrative                                     298                   269
                                                            -----------           -----------
              Total operating expenses                              882                   845
                                                            -----------           -----------

              Income (loss) from operations                          33                    (4)

OTHER EXPENSE:
     Interest expense, net                                          (25)                  (25)
     Other, net                                                      (8)                   26
                                                             ----------            ---------- 
              Total other expense                                   (33)                    1
                                                             ----------            ---------- 

INCOME (LOSS) BEFORE INCOME TAXES                                     0                    (3)
INCOME TAX EXPENSE (BENEFIT)                                          0                     0
                                                             ----------            ---------- 

NET INCOME (LOSS)                                           $        (0)          $        (3)
                                                             ==========            ========== 



     Net income (loss) per share based on weighted
         average number of common equivalent
         shares outstanding - basic and diluted             $      0.00           $      0.00

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

There is no difference between Net Income and Total Comprehensive Income for the
quarters ending April 4, 1999 and April 5, 1998.


These interim financial statements include 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>

                                                                                         QUARTER ENDED
                                                                                    4/4/99            4/5/98
                                                                                   -------           -------
<S>                                                                                <C>               <C>
Cash flows from operating activities:                                              
     Net income (loss)                                                             $     0           $    (3)
     Adjustments to reconcile net income to net cash
         provided by (used in) operating activities:
         Depreciation and amortization                                                  49                40
         Changes in operating assets and liabilities:
              Accounts receivable                                                     (294)               11
              Inventories                                                               80               (46)
         Prepaid expenses                                                              (95)               30
              Other assets                                                              12                 0
              Accounts payable and accrued expenses                                    171               127
              Other noncurrent liabilities                                             (14)               15
                                                                                   -------           -------

                      Net cash provided by (used in) operating activities              (91)              174
                                                                                   -------           -------

Cash flows from investing activities:
     Capital expenditures                                                             (115)              (20)


Cash flows from financing activities:
     Principal payments on notes payable                                            (1,008)           (1,003)
     Proceeds from issuance of notes payable                                         1,191               830
                                                                                   -------           -------

                      Net cash provided by (used in) financing activities              183              (173)
                                                                                   -------           -------

Net decrease in cash                                                                   (23)              (19)
Cash at beginning of year                                                               63                52
                                                                                   -------           -------

Cash at end of quarter                                                             $    40           $    33
                                                                                   =======           =======

Supplemental disclosures:
     Cash paid during the period for:
         Interest                                                                  $    25           $    25
                                                                                   =======           =======
         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 risk and
         uncertainties. The Company's actual results could differ materially. 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 possible effect of the year 2000 on computer systems


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

B.       POSSIBLE EFFECT OF THE YEAR 2000

         As with many other companies, Cramer may be impacted by the "year 2000
         problem". The "year 2000 problem" arose because many existing computer
         programs use only the last two digits to refer to a year. Therefore,
         these computer programs do not properly recognize a year that begins
         with "20" instead of the familiar "19". If not corrected, many computer
         applications could fail or create erroneous results.

         In developing a response to the year 2000 issue, the Company has
         considered all of its computer systems, both those that are directly
         related to information technology systems and other systems where
         computer controls 



<PAGE>   6


         exist. The Company has also considered the readiness of its key vendors
         and customers.

         The Company's only critical system is its Enterprise Resource Planning
         (ERP) system that encompasses the Company's manufacturing, scheduling,
         purchasing, and accounting systems. The ERP system resides on an IBM
         advanced 36/AS 400. The advanced 36/AS400's operating system and the
         core ERP system will be converted to allow recognition of years
         beginning with a "20" using the 100 year fixed window methodology. This
         methodology converts all dates entered into the system in a prescribed
         manner that will allow the ERP system to consistently handle dates both
         before and after the turn of the century.

         The Company's in-house EDP department is developing and installing the
         fixed window subroutines that will be used in converting the ERP system
         to year 2000 compliance. Implementation of this process is proceeding
         through a pre-established schedule for each of the various modules of
         the ERP system. Initial remediation efforts focused on the
         manufacturing portions of the ERP system. Corrections have been
         completed and are presently in the testing phase. The final portions of
         the remediation effort will focus on the accounting portions of the ERP
         system. Remediation of these portions of the ERP system are scheduled
         to be completed by the end of the 2nd quarter of 1999. Once remediation
         of the entire ERP system has been completed, all daily transactions
         will be run on the converted system in a test environment that
         simulates processing in the year 2000. This final test process is
         scheduled to occur in the 3rd quarter of 1999.

         Due to the time required for the year 2000 project, non-essential
         enhancements to the company's computer systems have been delayed at
         times, however, the direct costs associated with the year 2000 project
         are expected to be less than $15,000.

         The Company has appointed an internal task force to review year 2000
         compliance issues for all other areas where computer controls exist.
         This review includes all other information technology systems other
         than the ERP system and possible computer controlled processes in the
         Company's facilities, communications, manufacturing equipment, etc. At
         April 26, 1999, the task force had completed its inventory of all of
         the Company's systems. Furthermore, with the exception of the Company's
         phone and voice mail system, the task force has determined that all
         computer controlled systems have already been appropriately remediated
         for the year 2000. In conjunction with appropriate vendors, the
         company's phone and voice mail system will be assessed in the 2nd or
         3rd quarter of 1999. Once an assessment is completed, an appropriate
         remediation plan will be implemented.

         The Company has developed a questionnaire to assess its vendors'
         readiness to handle the year 2000 issue. These questionnaires were
         distributed to vendors in later portions of 1998 and in early 1999. The
         responses to these questionnaires are currently being reviewed. Special
         attention will be given to



<PAGE>   7


         significant vendors and in these cases, we will supplement their
         answers with verbal discussions with appropriate management and
         information system professionals.

         Through discussions with appropriate parties, the Company is aware that
         its 8 largest wholesale and catalog customers are aware of the year
         2000 issue and are currently determining how to convert their systems
         to handle the problem. Since the remainder of the Company's sales are
         to a wide variety of other furniture re-sellers, which change from year
         to year, there are no efforts currently underway to assess the status
         of these customers' year 2000 readiness.

         The Company is developing contingency plans in case its ERP system, its
         other computer controlled systems, its vendors, or major customers
         prove not to be ready for the year 2000. With respect to the ERP
         system, the Company believes that it can operate with manual controls
         and systems for some period if all or portions of the ERP system were
         not fully operational. Depending on the extent of the deficiency,
         additional clerical personnel may have to be hired for a short period
         of time. The Company's senior management will evaluate the preparedness
         of its key vendors in the summer of 1999. Contingency plans for vendor
         supplied parts will include the purchase of additional inventory in the
         final month of 1999.

         There can be no assurance that year 2000 remediation by the Company or
         third parties will be properly and timely completed and failure to do
         so could have a material adverse effect on the Company's financial
         condition. The Company can not predict the actual effects to it of the
         year 2000 issue, which depends on numerous uncertainties such as (1)
         whether major third parties address this issue properly and timely and
         (2) whether broad-based or systemic economic failures may occur. The
         Company is currently unaware of any events, trends, or condition
         regarding this issue that may have a material effect on the Company's
         results of operations, liquidity, or financial position.

C.       SUMMARY OF OPERATIONS

         At $3,201,000, net sales in the first quarter of 1999 were virtually
         the same as in the first quarter of 1998. While sales were unchanged,
         the Company's gross margin in the first quarter of 1999 increased by
         $74,000 from the level in the same period last year. As a percentage of
         net sales, gross margins in the first quarter of 1999 were 28.6% as
         compared to 26.4% in the first quarter of 1998. The improvement in
         margins reflects (a) reduced labor costs achieved through reductions in
         indirect and clerical personnel, (b) lower workers compensations costs
         due to the Company's continued success in managing employee safety, and
         (c) lower expenses for anticipated product liability defense costs due
         to the Company's success in reducing settlements during the past few
         years.

         The Company's backlog of unfilled orders at the end of the quarter was
         $891,000. Substantially all of the Company's quarter-end backlog is


<PAGE>   8

         scheduled to ship in the next 3 months.

         Selling, and general and administrative expenses during the first
         quarter of 1999 increased by $37,000 as compared to the same period in
         1998. The increase consists primarily of additional salaries associated
         with an expansion of personnel in the Company's sales and engineering
         departments. The Company has increased the number of internal sales
         representatives in order to more actively manage its key catalog
         customers. These individuals will also develop market driven sales
         literature, which will better support the Company's commissioned sales
         representatives. The Company has increased engineering personnel in
         order to enhance its research and development efforts so that it can
         expand its product offering while shortening the new product
         development cycle.

         Primarily as a result of the increase in gross margins, the Company had
         a positive $33,000 in operating income during the first quarter of
         1999. This is an increase of $37,000 as compared to the $4,000
         operating loss suffered during the first quarter of 1998.

         Other, non-operating income (expense) changed from a net income of
         $26,000 in the first quarter of 1998 to a net expense of $8,000 in the
         first quarter of 1999. In 1998 the Company received a $18,000 refund of
         workers compensation insurance premiums paid in 1996. The premium
         refund was due to the Company's ability to reduce workers compensation
         costs as compared to 1995 and prior years. No such refund was received
         in the first quarter of 1999, however, as noted above, workers
         compensation insurance premiums paid in 1999 are at a substantially
         lower rate than in 1988.

         While the Company's operating income in the first quarter of 1999 was
         significantly improved over the same period in the prior year, as a
         result of the decrease in other non-operating income, the Company broke
         even in the first quarter of 1999. This is a slight improvement from
         the $3,000 net loss experienced in the same period in the prior year.

         While overall, the Company broke even in the first quarter of 1999,
         management notes that the Company's core seating and utility product
         business remains profitable. Management believes that the improvements
         in gross margins on these products, which were realized in the first
         quarter of 1999, will continue throughout the remainder of the year.
         However, sales of the Company's new articulating keyboard product
         continue to be slow and the sales, marketing and introductory costs for
         the product line continue to exceed the gross margin generated from its
         sales. This situation is anticipated to continue throughout the
         remainder of the current year as distribution of the product is
         established and as technical enhancements are completed. However, in
         the long run the Company believes that the product line will be a
         successful addition to the Company's product offering providing a net
         positive return on amounts invested.


<PAGE>   9


D.       FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

         The Company's trade accounts receivable increased by $294,000 from
         December 31, 1998 to April 4, 1999. The increase is due to the timing
         of sales in the final weeks of the respective periods. Weekly sales in
         the final 4 weeks of 1998 averaged $251,000. Weekly sales in the final
         4 weeks of the first quarter of 1999 averaged $305,000; an increase if
         approximately 22%.

         Inventories decreased by $80,000 during the first quarter of 1999. The
         difference represents normal fluctuations in the Company's inventory
         balances.

         Capital expenditures aggregated $115,000 during the first quarter of
         1999 and consisted primarily of replacements to tooling maintained at
         vendors used in manufacturing the Company's existing utility products.
         Most of the new tooling expenditures will allow reductions in existing
         product costs or will eliminate anticipated product cost increases.

         The Company's accounts payable increased by $112,000 from the December
         31, 1998 balance. The increase is a result of increased purchases of
         raw materials to support the increased business activity in the final
         weeks of the first quarter of 1999.

         The Company's notes payable increased by $183,000 during the first
         quarter of 1999. The increase is principally due to the timing of sales
         that was described above and the expenditures for new tooling. 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 1998 Form 10KSB.)
         Management believes that the Company's access to this 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.


<PAGE>   10

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.




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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: 5-11-99                                      /s/ Gary A. Rubin
     ---------------------                         ---------------------------
                                                   Gary A. Rubin
                                                   Vice President, Finance & CFO