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): January 20, 2004

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

                             Digital Recorders, Inc.

             ------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)



         North Carolina                  1-13408               56-1362926
(State or Other Jurisdiction of  (Commission File Number)     (IRS Employer
         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 Condition

     On January 20, 2004, Digital Recorders, Inc. (the "Company") announced in a
press release the Company's preliminary results for its fourth quarter and
fiscal year 2003, which ended December 31, 2003. A copy of the Company's press
release is attached hereto as Exhibit 99.1 and is incorporated herein by
reference. This Form 8-K and the attached exhibit 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: January 20, 2004          By:    /s/ DAVID L. TURNEY
                                       -----------------------------------------
                                       David L. Turney
                                       Chairman, Chief Executive Officer
                                       and President




                                  Exhibit 99.1

                      Press Release Dated January 20, 2004