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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10–Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Act of 1934

For the Quarter Ended December 26, 2003

Commission File No. 0–23018

PLANAR SYSTEMS, INC.

(exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (503) 748-1100

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 such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) x Yes ¨ No

Number of common stock outstanding as of February 2, 2004

14,586,761 shares, no par value per share

PLANAR SYSTEMS, INC.

INDEX

2

Part 1. FINANCIAL INFORMATION

Planar Systems, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(unaudited)

See accompanying notes to unaudited consolidated financial statements.

3

Planar Systems, Inc.

Consolidated Balance Sheets

(In thousands)

See accompanying notes to unaudited consolidated financial statements.

4

Planar Systems, Inc.

Consolidated Statement of Cash Flows

(In thousands)

(unaudited)

See accompanying notes to unaudited consolidated financial statements.

5

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except per share amounts)

(Unaudited)

Note 1 - BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States. However, certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the statements include all adjustments necessary (which are of a normal and recurring nature) for the fair presentation of the results of the interim periods presented. These financial statements should be read in connection with the Company’s audited financial statements for the year ended September 26, 2003.

Note 2 – STOCK-BASED COMPENSATION PLANS

Stock-based compensation plans

The Company accounts for its stock-based compensation plans under Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees”.

If the Company accounted for its stock-based compensation plans in accordance with Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”, the Company’s net income and net income per share would approximate the pro forma disclosures below:

The effects of applying FAS No. 123 in this pro forma disclosure are not indicative of future amounts. FAS No. 123 does not apply to awards prior to January 1, 1995 and additional awards are anticipated in future years.

Note 3 - INVENTORIES

Inventories, stated at the lower of cost or market, consist of:

6

Inventory reserves for estimated inventory obsolescence were $4,704 and $4,933 as of December 26, 2003 and September 26, 2003, respectively. Included in cost of sales are $156 and $146 of charges related to inventory obsolescence reserves for the three month periods ended December 26, 2003 and December 27, 2002, respectively.

Note 4 - RESEARCH AND DEVELOPMENT COSTS

Research and development costs are expensed as incurred. The Company periodically enters into research and development contracts with certain governmental agencies and private-sector companies. These contracts generally provide for reimbursement of costs. Funding from research and development contracts is recognized as a reduction in operating expenses during the period in which the services are performed and related direct expenses are incurred, as follows:

Note 5 - NON-RECURRING CHARGES

The non-recurring charges incurred affected the Company’s financial position as follows:

During the first quarter of fiscal year 2004, the Company paid cash of $947 related to contractual liabilities, severance and lease termination costs. The remaining amounts are expected to be paid primarily by the end of fiscal year 2004.

Note 6 - INCOME TAXES

The provision for income taxes has been recorded based upon the current estimate of the Company’s annual effective tax rate. This rate differs from the federal statutory rate primarily due to the provision for state income taxes, research credits, and the effects of the Company’s foreign tax rates

Note 7 – NET INCOME PER COMMON SHARE

Basic net income per share was computed using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share is computed using the weighted average number of common shares plus dilutive common equivalent shares outstanding during the period. Incremental shares of 540 and 646 for the quarters ended December 26, 2003 and December 27, 2002, respectively, were used in the calculations of diluted earnings per share. Potential common equivalent shares related to stock options excludes 486 and 1,545 shares not included in the computation of diluted net income per share because the options’ exercise price was greater than the average market price of the common shares for the periods ended December 26, 2003, and December 27, 2002, respectively.