<PAGE>   1
--------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                ----------------

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the quarterly period ended August 31, 1997.

                                       or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from  _____________________  to ____________________

                           COMMISSION FILE NO. 0-20189

                              EQUITRAC CORPORATION
             (Exact name of Registrant as specified in its charter)

           FLORIDA                                       59-1797862
(State or other jurisdiction of             (IRS Employee Identification Number)
incorporation or organization)

                           836 PONCE DE LEON BOULEVARD
                           CORAL GABLES, FLORIDA 33134
                                 (305) 442-2060

               (Address, including zip code, and telephone number,
                      including area code, of registrant's
                          principal executive offices)

     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 the
filing requirements for at least the past 90 days. Yes  X   No    .
                                                      ----    ----

     As of October 2, 1997, there were 3,495,600 shares of the Registrant's
common stock, par value $.01, outstanding.



--------------------------------------------------------------------------------



<PAGE>   2




                              EQUITRAC CORPORATION

                                      INDEX

                                                                          PAGE
                                                                          ----

PART I - FINANCIAL INFORMATION

Item 1.           Financial Statements

                  Condensed Balance Sheets
                  as of August 31, 1997
                  and February 28, 1997                                    2

                  Condensed Statements of Income
                  for the three months and six months
                  ended August 31, 1997 and 1996                           3

                  Condensed Statement of
                  Stockholders' Equity for the
                  six months ended August 31, 1997                         4

                  Condensed Statements of Cash Flows
                  for the six months ended
                  August 31, 1997 and 1996                                 5

                  Notes to Condensed Financial Statements                  6

Item 2.           Management's Discussion and Analysis of
                  Financial Condition and Results of
                  Operations                                               9

PART II - OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K                        13


SIGNATURES                                                                13


<PAGE>   3


PART I        FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS


                              EQUITRAC CORPORATION

                            CONDENSED BALANCE SHEETS
                      (in thousands, except share amounts)

<TABLE>
<CAPTION>
                                                                          (Unaudited)
                                                                            AUGUST 31,    FEBRUARY 28,
                                                                              1997           1997
                                                                          ------------    ------------
<S>                                                                         <C>            <C>     
                                     ASSETS
Current assets:
      Cash and cash equivalents                                             $  4,401       $  4,755
      Investment securities                                                    3,899          4,817
      Accounts receivable, net of allowances of $650 and $550 at               
          August 31, and February 28, respectively                             7,152          6,117 
      Inventories                                                              2,174          2,483
      Deferred income taxes                                                      578            581
      Other current assets                                                       280            313
                                                                            --------       --------
             Total current assets                                             18,484         19,066

      Investment securities                                                    2,417          1,330
      Property and equipment, net                                              6,286          6,317
      Intangible assets, net                                                   3,680          3,378
      Deferred income taxes                                                      397            397
      Other assets                                                               193            194
                                                                            --------       --------
             Total assets                                                   $ 31,457       $ 30,682
                                                                            ========       ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
      Accounts payable                                                      $  1,130       $  1,095
      Accrued expenses and other current liabilities                           3,048          3,930
      Unearned income                                                          1,069            882
                                                                            --------       --------
             Total current liabilities                                         5,247          5,907
                                                                            --------       --------

Stockholders' equity:
    Common stock, $.01 par value; 15,000,000 shares
       authorized, 3,848,600 and 3,800,300 shares issued
       at August 31, and February 28, respectively                                38             38
    Additional paid-in capital                                                11,032         10,741
    Retained earnings                                                         17,112         15,672
    Cumulative translation adjustment                                            (31)           (23)
    Unrealized gain on investment securities, net of tax                           6             --
    Treasury stock, at cost (355,800 and 330,800 shares at
       August 31, and February 28, respectively)                              (1,947)        (1,653)
                                                                            --------       --------
             Total stockholders' equity                                       26,210         24,775
                                                                            --------       --------
                 Total liabilities and stockholders' equity                 $ 31,457       $ 30,682
                                                                            ========       ========

</TABLE>

                             See accompanying notes.



                                       2

<PAGE>   4


                              EQUITRAC CORPORATION

                         CONDENSED STATEMENTS OF INCOME
                                   (Unaudited)

                    (in thousands, except earnings per share)


<TABLE>
<CAPTION>
                                                    THREE MONTHS ENDED         SIX MONTHS ENDED
                                                        AUGUST 31,                AUGUST 31,
                                                  --------------------      --------------------
                                                    1997         1996         1997         1996
                                                  -------      -------      -------      -------
<S>                                               <C>          <C>          <C>          <C>    
Revenues:
       Sales                                      $ 5,728      $ 4,445      $10,968      $ 8,410
       Service and support                          4,034        3,224        7,936        6,334
       Rental                                       2,607        2,625        5,195        5,213
                                                  -------      -------      -------      -------
            Total revenues                         12,369       10,294       24,099       19,957
                                                  -------      -------      -------      -------

Expenses:
       Cost of revenues                             5,103        3,775        9,842        7,329
       Product development                            708          528        1,481          960
       Selling expenses                             1,768        1,602        3,493        3,170
       General and administrative                   3,733        3,434        7,221        6,731
                                                  -------      -------      -------      -------
            Total expenses                         11,312        9,339       22,037       18,190
                                                  -------      -------      -------      -------

            Operating income                        1,057          955        2,062        1,767

Interest income                                       136          108          270          234
                                                  -------      -------      -------      -------
            Income before income taxes              1,193        1,063        2,332        2,001

Income taxes                                          459          412          892          776
                                                  -------      -------      -------      -------
            Net income                            $   734      $   651      $ 1,440      $ 1,225
                                                  =======      =======      =======      =======

Earnings per share                                $  0.20      $  0.18      $  0.39      $  0.35
                                                  =======      =======      =======      =======

Weighted average common and common equivalent
    shares used in per share calculation            3,728        3,556        3,708        3,535
                                                  =======      =======      =======      =======


</TABLE>


                             See accompanying notes.



                                       3
<PAGE>   5


                              EQUITRAC CORPORATION
                  CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY

                                   (Unaudited)

                     (in thousands, except number of shares)

<TABLE>
<CAPTION>
                                                     COMMON                                  UNREALIZED
                                                    STOCK AND                                 GAIN ON 
                                                   ADDITIONAL                 CUMULATIVE     INVESTMENT                    TOTAL
                                     COMMON         PAID-IN      RETAINED     TRANSLATION    SECURITIES,   TREASURY    STOCKHOLDERS'
                                     SHARES         CAPITAL      EARNINGS     ADJUSTMENT     NET OF TAX     STOCK         EQUITY
                                   ----------     ----------    ----------    ----------     ----------   ----------   -------------
<S>                                 <C>           <C>           <C>           <C>            <C>          <C>           <C>       
Balance, February 28, 1997          3,800,300     $   10,779    $   15,672    $      (23)    $       --   $   (1,653)   $   24,775


Purchase of Treasury Stock
   25,000 Shares                           --             --            --            --             --         (294)         (294)

Unrealized gain on marketable
   securities, net of tax                  --             --            --            --              6           --             6

Translation Adjustment                     --             --            --            (8)            --           --            (8)

Exercise of employee
   stock options                       48,300            291            --            --             --           --           291

Net income for the six months
   ended August 31, 1997                   --             --         1,440            --             --           --         1,440
                                   ----------     ----------    ----------    ----------     ----------   ----------    ----------
Balance, August 31, 1997            3,848,600     $   11,070    $   17,112    $      (31)    $        6   $   (1,947)   $   26,210
                                   ==========     ==========    ==========    ==========     ==========   ==========    ==========



</TABLE>




                             See accompanying notes.




                                       4
<PAGE>   6


                              EQUITRAC CORPORATION

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                 (in thousands)

<TABLE>
<CAPTION>
                                                                          SIX MONTHS ENDED
                                                                              AUGUST 31,
                                                                        ---------------------
                                                                          1997          1996
                                                                        -------       -------
<S>                                                                     <C>           <C>    
Cash flows from operating activities:
      Net income                                                        $ 1,440       $ 1,225
      Adjustments to reconcile net income to
          net cash provided by operating activities:
      Depreciation                                                        1,431         1,213
      Amortization                                                          615           551
      Provision for doubtful accounts                                       100            50
      Change in assets and liabilities:
           (Increase) decrease in:
             Accounts receivable                                           (764)       (1,716)
             Inventories                                                    335          (400)
             Other current assets                                            62            76
             Other assets                                                     1           (13)
           Increase (decrease) in:
             Accounts payable                                              (142)         (138)
             Accrued expenses                                              (882)          (81)
             Unearned income                                                 65           300
                                                                        -------       -------
               Net cash provided by operating activities                  2,261         1,067
                                                                        -------       -------
Cash flows from investing activities:
      Purchases of property and equipment                                (1,393)       (1,293)
      Acquisitions, principally intangible assets                        (1,053)       (1,834)
      Sales and maturities of investment securities                       1,892         1,102
      Purchases of investment securities                                 (2,050)         (998)
      Decrease in restricted cash                                            --         1,450
                                                                        -------       -------

               Net cash used in investing activities                     (2,604)       (1,573)
                                                                        -------       -------

Cash flows from financing activities:
      Repayment of acquisition obligations                                   --           (30)
      Proceeds from issuance of common stock                                291            40
      Purchase of treasury stock                                           (294)           --
                                                                        -------       -------
               Net cash (used in) provided by financing activities           (3)           10
                                                                        -------       -------
      Exchange rate effect on cash                                           (8)            6
                                                                        -------       -------
      Net decrease in cash and cash equivalents                            (354)         (490)
      Cash and cash equivalents at beginning of period                    4,755         3,581
                                                                        -------       -------
      Cash and cash equivalents at end of period                        $ 4,401       $ 3,091
                                                                        =======       =======

      Supplemental disclosure of cash flow information:
             Cash paid during the period for income taxes               $ 1,718       $ 1,240

</TABLE>



Non-cash investing and financing activities during the six months ended August
31, 1996 included the assumption of a $611,000 liability to fulfill service
contracts in connection with the Infortext Acquisition.



                             See accompanying notes.

                                       5


<PAGE>   7

                              EQUITRAC CORPORATION

                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS


1.  BASIS OF PRESENTATION

         The accompanying unaudited condensed financial statements have been
     prepared by the Company, in accordance with generally accepted accounting
     principles, pursuant to the rules and regulations of the Securities and
     Exchange Commission. Certain information and footnote disclosure normally
     included in financial statements have been condensed or omitted pursuant to
     such rules and regulations. In the opinion of management, the accompanying
     financial statements include all adjustments (of a normal recurring nature)
     which are necessary to state fairly the results for the interim periods
     presented. The results for the six months ended August 31, 1997 are not
     necessarily indicative of the results to be expected for the full fiscal
     year. These unaudited condensed financial statements should be read in
     conjunction with the financial statements and notes thereto included in the
     Annual Report on Form 10-K for the fiscal year ended February 28, 1997,
     filed with the Securities and Exchange Commission.

 2.  USE OF ESTIMATES

         The preparation of financial statements in conformity with generally
     accepted accounting principals requires management to make estimates and
     assumptions that affect the reported amounts in the financial statements
     and accompanying notes. Actual results could differ from those estimates.

 3.  REVENUE RECOGNITION

         Sales revenue is recognized upon installation and customers'
     acceptance. Service and support revenues are recognized ratably over the
     period in which the service and support are provided. Rental contract
     revenue, which includes service and support on the underlying rental
     equipment and software, is recognized ratably over the term of the
     respective lease. Rental contracts are accounted for as operating leases.

 4.  CASH AND CASH EQUIVALENTS

         All investments in highly liquid marketable securities with a maturity
     of three months or less at the time of purchase are classified as cash
     equivalents.

 5.  INVESTMENT SECURITIES

         The Company's investment securities consist primarily of municipal
     bonds, U.S. Treasury obligations and investment grade corporate bonds with
     maturities ranging from one to twenty-two years. These investments are
     classified as available-for-sale and are recorded at fair value with
     unrealized gains and losses included in stockholders' equity.
     Interest income is recognized when earned.





                                       6
<PAGE>   8


 6.  INVENTORIES

         Inventories comprised primarily of system components, parts and
     supplies are carried at the lower of weighted average cost or market. The
     weighted average cost of inventories approximates the "first in-first out"
     (FIFO) method.

 7.  PROPERTY AND EQUIPMENT

         Property and equipment consist primarily of system rental equipment
     under operating leases and service equipment used in connection with
     service contracts, and are stated at cost less accumulated depreciation.
     Additions, major renewals and improvements are capitalized, and repair and
     maintenance costs are expensed. Upon retirement or sale, the cost of the
     assets disposed of and the related accumulated depreciation are removed
     from the accounts and any resulting gain or loss is included in the
     determination of net income. Property and equipment are depreciated using
     the straight-line method over the estimated useful lives of the assets.
     Leasehold improvements are amortized using the straight-line method over
     the shorter of the estimated life of the asset or the remaining term of the
     lease.

 8.   PRODUCT DEVELOPMENT COSTS

         Product development costs are expensed as incurred.

 9.   FOREIGN CURRENCY TRANSLATION

         Translation of foreign currencies into U.S. dollars is computed for
     revenue and expense accounts using average exchange rates during the year.
     Net assets of the Company's Canadian operations, whose "functional
     currency" is the Canadian dollar are translated at current rates of
     exchange, with the resulting translation adjustment recorded directly into
     a separate component of stockholders' equity. The functional currency for
     the Company's other foreign operations is the U.S. dollar. Net assets of
     these operations are translated at current rates of exchange, with the
     resulting translation gains and losses included in the statement of income.

 10.  EARNINGS PER SHARE

         Earnings per share (EPS) are based on the weighted average number of
     shares of common stock and common stock equivalents outstanding during the
     year. Common stock equivalents consist of stock options.

         In February 1997, the Financial Accounting Standards Board issued
     Statement of Financial Accounting Standards No. 128 (SFAS 128), Earnings
     Per Share. SFAS 128 specifies new standards designed to improve the
     earnings per share information provided in financial statements by
     simplifying the existing computational guidelines, revising the disclosure
     requirements and increasing the comparability of EPS data on an
     international basis. SFAS 128 is effective for financial statements issued
     for periods ending after December 15, 1997, including interim periods. The
     Company does not believe that the adoption of SFAS 128 in fiscal 1998 will
     have a significant impact on the Company's reported EPS.



                                       7
<PAGE>   9


11.  ACQUISITIONS

         In March 1996, the Company acquired the cost recovery customer base of 
     ISI Infortext, Inc. (ISI). Pursuant to the acquisition agreement, 
     additional purchase price consideration of $625,000 was paid to ISI in 
     March 1997. The Company also repurchased 25,000 shares of Equitrac common 
     stock from ISI at the fair market value of the shares at the time of 
     repurchase.

         Intangible assets recorded in connection with acquisitions represent
     costs allocated to specifically identifiable intangible assets and the
     excess of cost over the fair value of tangible and identifiable intangible
     assets arising from acquisitions ("goodwill"). The costs of all
     identifiable intangible assets and goodwill are amortized on a
     straight-line basis over their respective estimated useful lives, ranging
     from three to seven years.

12.  CONTINGENCIES

         The Company is involved from time to time in legal proceedings incident
     to the normal course of its business. Management believes that adverse
     decisions in any pending or threatened proceedings would not have a
     material adverse effect on the Company's financial positions or results of
     operations.

13.  RECLASSIFICATIONS

         Certain prior year amounts have been reclassified to conform with
     current year presentation.





                                       8
<PAGE>   10



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
        CONDITION AND RESULTS OF OPERATIONS 

RESULTS OF OPERATIONS

     The Company's revenues are derived from three principal sources: (1) sales
of new systems, upgrades and add-ons of equipment or software; (2) monthly
revenues from service and software support agreements and (3) monthly revenues
from leases of its systems. The Company offers its customers the option of
purchasing a system or leasing a system pursuant to an operating lease (the term
of which is typically 36 months or longer), which includes all service and
software support. The Company offers its purchase customers service and software
support agreements (the terms of which are typically for 36 months or longer).
Systems that are not purchased in conjunction with a service contract are
serviced by the Company on a time-and-materials basis. The Company's computer
service division offers its customers service agreements (the terms of which are
typically for 12 months) and also provides service on a time-and-materials
basis.

     The following table sets forth, for the periods presented, selected items
from the Condensed Statements of Income as a percentage of total revenues.


<TABLE>
<CAPTION>
                                                    PERCENTAGE OF TOTAL REVENUES FOR
                                             -------------------------------------------
                                              THREE MONTHS ENDED       SIX MONTHS ENDED
                                                  AUGUST 31,              AUGUST 31,
                                             -------------------     -------------------
                                               1997        1996        1997        1996
                                             -------     -------     -------     -------
<S>                                             <C>         <C>         <C>         <C>  
Revenues:
       Sales                                    46.3%       43.2%       45.5%       42.2%
       Service and support                      32.6        31.3        32.9        31.7
       Rental                                   21.1        25.5        21.6        26.1
                                             -------     -------     -------     -------
             Total revenues                    100.0       100.0       100.0       100.0
                                             -------     -------     -------     -------
Expenses:
       Cost of revenues                         41.3        36.7        40.8        36.7
       Product development                       5.7         5.1         6.2         4.8
       Selling expenses                         14.3        15.5        14.5        15.9
       General and administrative               30.2        33.4        30.0        33.7
                                             -------     -------     -------     -------
             Total expenses                     91.5        90.7        91.5        91.1
                                             -------     -------     -------     -------
             Operating income                    8.5         9.3         8.5         8.9

       Interest income                           1.1         1.0         1.1         1.1
                                             -------     -------     -------     -------

             Income before income taxes          9.6        10.3         9.6        10.0

       Income taxes                              3.7         4.0         3.7         3.9
                                             -------     -------     -------     -------

             Net income                          5.9%        6.3%        5.9%        6.1%
                                             =======     =======     =======     =======

</TABLE>

                                       9


<PAGE>   11


REVENUES

     Total revenues for the second quarter ended August 31, 1997 increased 20%
to $12,369,000 from $10,294,000 in the same quarter last fiscal year. For the
six months ended August 31, 1997, total revenues were $24,099,000, an increase
of 21% over revenues of $19,957,000 recorded in the same six month period in the
prior fiscal year. The Company's total revenues increased primarily as a result
of increases in sales revenues and service and support revenues. System sales
revenues were comprised primarily of revenues from sales of new systems to
existing customers and, to a lesser extent, from sales of new systems to new
customers and from sales of add-on equipment to existing customers. Service and
support revenues and rental revenues were comprised primarily of recurring
revenues from existing maintenance and lease agreements.

     SALES REVENUES. Sales revenues for the quarter ended August 31, 1997
increased 29% to $5,728,000 from $4,445,000 in the same quarter last fiscal
year. Sales revenues for the six months ended August 31, 1997 increased 30% to
$10,968,000 from $8,410,000 in the same six month period last fiscal year. The
increase resulted primarily from an increase in computer equipment resale
revenues from the ECS division due to increased market presence and an increase
in sales of systems manufactured by the Company. Sales revenues for the quarter
and six months ended August 31, 1997, included $843,000 and $1,569,000 of ECS
computer equipment resale revenues. The remaining increases resulted from an
increase in volume of sales of new systems to existing customers.

     SERVICE AND SUPPORT REVENUES. Service and support revenues for the quarter
ended August 31, 1997 increased 25% to $4,034,000 from $3,224,000 in the same
quarter last fiscal year. Service and support revenues for the six months ended
August 31, 1997 increased 25% to $7,936,000 from $6,334,000 in the same six
month period last fiscal year. This increase resulted primarily from an increase
in service contracts in the Company's cost recovery divisions and an increase in
service and support revenues generated by the ECS division. Service and support
revenues from the Company's cost recovery divisions increased 16% for the
quarter and year ended August 31, 1997. Service and support revenues generated
by the Company's computer service division increased to $493,000 and $1,021,000
during the quarter and six months ended August 31, 1997, respectively from
$215,000 and $363,000 in the same quarter and six month period last fiscal year.

     RENTAL REVENUE. Rental revenues for the quarter ended August 31, 1997
decreased to $2,607,000 from $2,625,000 in the same quarter last fiscal year.
Rental revenues for the six months ended August 31, 1997 decreased to $5,195,000
from $5,213,000 in the same six month period last fiscal year. The decrease in
rental revenues resulted from the migration of customers who previously leased
systems to purchases of new systems with related service contracts, as their
rental contracts expired. Management anticipates that rental revenue will
decline in future periods as this trend continues.


                                       10

<PAGE>   12


EXPENSES

     COST OF REVENUES. Cost of revenues is comprised primarily of (i) payroll
and other expenses related to the Company's manufacturing, customer support and
service personnel, (ii) the cost of hardware and other system components
associated with system sales and service, and (iii) depreciation of system
rental and service units. Cost of revenues for the quarter ended August 31, 1997
increased to $5,103,000, or 41.3% of total revenues, from $3,775,000, or 36.7%
of total revenues, in the same quarter last fiscal year. Cost of revenues for
the six months ended August 31, 1997 increased to $9,842,000, or 40.8% of total
revenues, from $7,329,000, or 36.7% of total revenues in the same six month
period last fiscal year. This increase in the cost of revenues as a percentage
of total revenues is primarily attributable lower gross margins in the Company's
ECS division compared to the Company's cost recovery divisions. Management
anticipates that the cost of revenues as a percentage of total revenues may
increase in future periods, as the Company expands its ECS division into new
geographical territories and to the extent that the ECS division contributes a
higher percentage of the Company's revenues.

     PRODUCT DEVELOPMENT EXPENSES. Product development expenses for the quarter
ended August 31, 1997 increased to $708,000, or 5.7% of total revenues from
$528,000, or 5.1% of total revenues, in the same quarter last fiscal year.
Product development expenses for the six months ended August 31, 1997 increased
to $1,481,000, or 6.2% of total revenues, from $960,000, or 4.8% of total
revenues, in the same six month period last fiscal year. Current development
efforts are focused on enhancing and expanding the Equitrac and Infortext cost
recovery product lines as well as developing several new products. Products
under development during these periods include (i) Equitrac's Professional
Internet Client(TM) (E.P.I.C.), a full-featured Internet browser designed to
control Internet access and track on-line research and e-mail for billing and
management purposes, (ii) TelemeTrac(TM), a product which collects and
consolidates photocopier meter totals remotely through cellular telephone
networks, (iii) PrintLog(TM), a digital output tracking application designed to
track all pages printed from a workstation to laser printers and network
photocopiers and assign each transaction to a client, project or department and
(iv) OneTrac(TM), an inexpensive copy and fax control product line developed for
resale through both the Equitrac direct sales force and through copier dealers.
Management anticipates deriving revenues from these products beginning in the
second half of fiscal 1998 and to a greater extent in fiscal 1999. The Company
does not capitalize any of its software product development costs since software
development costs incurred subsequent to attainment of technological feasibility
of a new product line are not deemed to be significant; accordingly, product
development expenses for each period include all hardware and software
development costs incurred during the period. Management anticipates that
product development costs will increase during fiscal 1998 compared to
respective periods last fiscal year, as the projects under development are
completed and the Company invests in the development of additional products.

     SELLING EXPENSES. Selling expenses for the quarter ended August 31, 1997
increased to $1,768,000, or 14.3% of total revenues, from $1,602,000, or 15.5%
of total revenues, in the same quarter last fiscal year. Selling expenses for
the six months ended August 31, 1997 increased to $3,493,000, or 14.5% of total
revenues, from $3,170,000, or 15.9% of total revenues, in the same six month
period last fiscal year. These decreases in selling expenses as a percentage of
revenues resulted primarily from incremental revenues derived per sales
representative during the quarter and six months ended August 31, 1997 compared
to the same quarter and six month period last fiscal year.




                                       11
<PAGE>   13


     GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses
for the quarter ended August 31, 1997 increased to $3,733,000, or 30.2% of total
revenues, from $3,434,000, or 33.4% of total revenues, in the same quarter last
fiscal year. General and administrative expenses for the six months ended August
31, 1997 increased to $7,221,000, or 30.0% of total revenues, from $6,731,000,
or 33.7% of total revenues, in the same six month period last fiscal year. These
declines in general and administrative expenses as a percentage of revenues
resulted primarily from the Company's ability to increase revenues through
internal sales growth without adding a commensurate level of support and
administrative positions.

     INTEREST INCOME. The Company's interest income increased to $136,000 during
the quarter ended August 31, 1997 from $108,000 during the same quarter last
fiscal year. Interest income for the six months ended August 31, 1997 increased
to $270,000 from $234,000 in the same six month period last fiscal year.

     INCOME TAXES. The Company's effective income tax rate was 38% for the
quarter and six months ended August 31, 1997, compared to 39% in the same
quarter and six month period last fiscal year. The decrease in the Company's
effective tax rate resulted primarily from the increase in the Company's
research and development tax credit due to the increase in product development
expenditures.

LIQUIDITY AND CAPITAL RESOURCES

     The Company has funded its operations over the past several years
principally from cash flow from operations. The Company's cash and cash
equivalents and investment securities decreased to $10,717,000 at August 31,
1997 from $10,902,000 at February 28, 1997. This decrease in cash and cash
equivalents and investment securities resulted primarily from payment of
acquisition obligations. Other significant uses of cash included the purchase of
property and equipment and a payment to the IRS, as a result of a settlement of
prior year income taxes, the liability for which had been accrued in prior
years.

     The Company anticipates that its cash and cash equivalents and marketable
securities and cash flow from operating activities will be adequate to meet the
Company's cash requirements for the foreseeable future.

FORWARD LOOKING STATEMENTS

     Certain statements in this Form 10-Q, including statements contained
herein under the caption "Management's Discussion and Analysis of Financial
Condition and Results of Operations", constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements express or implied by such forward-looking statements. Such factors
include, but are not limited to the following: general economic and business
conditions; charges and costs related to acquisitions; and the ability of the
Company to develop and market products for the markets in which it operates, to
successfully integrate its acquired products and services, to adjust to changes
in technology, customer preferences, enhanced competition and new competitors in
the markets in which it operates.




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<PAGE>   14






PART II  OTHER INFORMATION
 
ITEM 6.  Exhibits and Reports on Form 8-K

         A.  Exhibits

             11.   Statement of Computation of Earnings per Share

         B.  Reports on Form 8-K

             Form 8-K for the month of August, 1997.



                                   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 thereunto duly
authorized.

                                         EQUITRAC CORPORATION


Date:    October 14, 1997                By: /s/ GEORGE P. WILSON
                                             --------------------
                                             George P. Wilson
                                             President and Chief
                                             Executive Officer



Date:    October 14, 1997                By: /s/ SCOTT J. MODIST
                                             -------------------
                                             Scott J. Modist
                                             Vice President - Finance, Treasurer
                                             and Chief Financial Officer



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