UNITED STATES

                       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): October 16, 2003

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

                             Digital Recorders, Inc.

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             (Exact Name of Registrant as Specified in Its Charter)


     North Carolina                     1-13408                56-1362926
(State or Other Jurisdiction    (Commission File Number)      (IRS Employer
    of Incorporation)                                        Identification No.)

                5949 Sherry Lane, Suite 1050, Dallas, Texas 75225
               (Address of Principal Executive Offices) (Zip Code)

    Registrant's Telephone Number, Including Area Code      (214) 378-8992






Item 12.  Results of Operations and Financial Conditions

On October 16, 2003, Digital Recorders, Inc. (the "Company") announced in a
press release the Company's preliminary third quarter 2003 revenues and outlook
for fiscal year 2003. A copy of the Company's press release is attached hereto
as Exhibit 99.1. This Form 8-K and the attached exhibit are provided under Item
12 of Form 8-K and are furnished to, but not filed with, the Securities and
Exchange Commission.





Signature(s)

     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: October 16, 2003       By: /s/ DAVID L. TURNEY
                                 -----------------------------------------------
                                 David L. Turney
                                 Chairman, Chief Executive Officer and President