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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K


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



                Date of Report (Date of Earliest Event Reported):
                                 APRIL 26, 1999




                             DIGITAL RECORDERS, INC.
             (Exact name of registrant as specified in its charter)



     NORTH CAROLINA                   1-13408                    56-1362926
(State of Incorporation)       (Commission File No.)          (I.R.S. Employer
                                                             Identification No.)




                          4018 PATRIOT DRIVE, SUITE 100
                          DURHAM, NORTH CAROLINA 27709
                    (Address of principal executive offices)



                                 (919) 361-2155
              (Registrant's telephone number, including area code)


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ITEM 5.           OTHER EVENTS

                  On April 26, 1999, the Board of Directors of Digital
Recorders, Inc. (the "Registrant") authorized the extension of the term of its
Redeemable Warrants to Purchase Common Stock (the "Warrants") sold in the
Registrant's public offering in November 1994. As extended, the Warrants may be
exercised at any time prior to 5:00 P.M. Eastern Time on April 30, 2000. All
Warrants not exercised on or prior to such date shall expire, subject to the
right of the Company to extend such date.

                  All other terms of the Warrants remain unchanged.


                                   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 hereunto duly authorized.


                                        DIGITAL RECORDERS, INC.



Date:  August 31, 1999                  By: /s/ David L. Turney
                                            ------------------------------------
                                            David L. Turney
                                            Chairman of the Board, President and
                                            Chief Executive Officer




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