SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
                                    ---------

 [x]  QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001.

                                       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 Number                                0-18592



                           MERIT MEDICAL SYSTEMS, INC.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its charter)


                          Utah                               87-0447695
           ------------------------------           ---------------------------
          (State or other jurisdiction of           (I.R.S. Identification No.)
           incorporation or organization)

                 1600 West Merit Parkway, South Jordan UT, 84095
                 -----------------------------------------------
                    (Address of Principal Executive Offices)

                                 (801) 253-1600
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

      Indicate by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Sections 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.

Yes  x    No
   -----    ----

      Indicate  the  number of shares  outstanding  of each of the  Registrant's
classes of common stock, as of the latest practicable date.



  Common Stock                                  10,648,348
----------------                     ----------------------------------
TITLE OR CLASS                      Number of Shares Outstanding at
                                                November 13, 2001















                           MERIT MEDICAL SYSTEMS, INC.

                               INDEX TO FORM 10-Q



PART I.     FINANCIAL INFORMATION                                                        PAGE
                                                                                         ----

  Item 1.   Financial Statements

                                                                                       
            Consolidated Balance Sheets as of September 30, 2001
            and December 31, 2000 .........................................................1

            Consolidated Statements of Operations for the three and nine months
            ended September 30, 2001 and 2000..............................................3

            Consolidated Statements of Cash Flows for the nine months
            ended September 30, 2001 and 2000..............................................4

            Notes to Consolidated Financial Statements.....................................6

  Item 2.   Management's Discussion and Analysis of Financial Condition
            and Results of Operations......................................................7

   Item 3.  Market Risk Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

PART II.    OTHER INFORMATION


  Item 4.    Exhibits and Reports on Form 8-K.............................................10

SIGNATURES........................................................................ . . . .10









MERIT MEDICAL SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
--------------------------------------------------------------------------------


                                          PART I - FINANCIAL INFORMATION

ITEM 1:  Financial Statements

                                                  September 30,     December 31,
ASSETS                                               2001              2000
                                                  ------------     ------------
                                                  (Unaudited)

CURRENT ASSETS:
Cash and cash equivalents                         $    648,998     $    412,384
Trade receivables - net                             14,246,477       13,235,858
Employee and related party receivables                 347,405          440,654
Irish Development Agency grant receivable                 --            177,477
Inventories                                         21,838,612       25,273,428
Prepaid expenses and other assets                      698,765          663,101
Deferred income tax assets                           1,183,944        1,183,944
Income tax refund receivable                           192,075          588,640
                                                  ------------     ------------
Total current assets                                39,156,276       41,975,486
                                                  ------------     ------------

PROPERTY AND EQUIPMENT:
Land                                                 1,257,902        1,260,985
Building                                             1,500,000        1,500,000
Automobiles                                             91,651          131,036
Manufacturing equipment                             22,886,102       19,696,550
Furniture and fixtures                               9,697,422        9,576,084
Leasehold improvements                               5,614,085        5,420,194
Construction-in-progress                             1,239,321        2,120,671
                                                  ------------     ------------
Total                                               42,286,483       39,705,520
Less accumulated depreciation
  and amortization                                 (20,627,297)     (17,860,490)
                                                  ------------     ------------
Property and equipment - net                        21,659,186       21,845,030
                                                  ------------     ------------

OTHER ASSETS:
Intangible assets - net                              2,585,160        2,522,384
Cost in excess of the fair
value of assets acquired - net                       4,839,062        5,062,458
Deposits                                                35,254           41,273
                                                  ------------     ------------
Total other assets                                   7,459,476        7,626,115
                                                  ------------     ------------

TOTAL ASSETS                                      $ 68,274,938     $ 71,446,631
                                                  ------------     ------------
Continued on Page 2
See Notes to Consolidated Financial Statements

                                        1



MERIT MEDICAL SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS (Continued)
SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
-------------------------------------------------------------------------------


LIABILITIES AND STOCKHOLDERS' EQUITY
                                                  September  30,   December 31,
                                                      2001            2000
                                                   ------------    ------------
                                                   (Unaudited)
CURRENT LIABILITIES:
Current portion of long-term debt                  $    710,725    $  1,091,725
Trade payables                                        4,829,004       4,835,517
Accrued expenses                                      6,331,812       3,471,039
Advances from employees                                 141,289          96,778
Income taxes payable                                    162,267          33,420
                                                   ------------    ------------
Total current liabilities                            12,175,097       9,528,479

DEFERRED INCOME TAX LIABILITIES                       2,265,528       2,177,833

LONG-TERM DEBT                                        8,493,045      24,011,778

DEFERRED CREDITS                                        897,088         955,839
                                                   ------------    ------------

Total liabilities                                    23,830,758      36,673,929
                                                   ------------    ------------

STOCKHOLDERS' EQUITY:
Preferred  stock 5,000,000 shares  authorized
   as of September  30, 2001,  and
   December 31, 2000, no shares issued
Common  stock - no par  value; 20,000,000 shares
   authorized, 10,594,331 and
   9,489,045 shares issued at September 30, 2001
   and December 31, 2000, respectively               24,676,481      19,779,765
Retained earnings                                    20,407,289      15,617,075
Accumulated other comprehensive loss                   (639,590)       (624,138)
                                                  ------------    ------------
Total stockholders' equity                           44,444,180      34,772,702
                                                   ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 68,274,938    $ 71,446,631
                                                   ============    ============

See Notes to Consolidated Financial Statements


                                        2







MERIT MEDICAL SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 and 2000    (Unaudited)
--------------------------------------------------------------------------------


                                                         Three Months Ended               Nine Months Ended
                                                           September  30,                     September  30,
                                                   ----------------------------      -----------------------------
                                                      2001             2000              2001              2000
                                                   -----------     ------------      ------------     ------------

                                                                                          
NET SALES                                          $25,694,128     $ 23,330,203       $78,746,516     $ 68,963,497

COST OF SALES                                       15,968,517       15,371,355        50,375,374      45,754,360
                                                   -----------     ------------      ------------     ------------

GROSS PROFIT                                         9,725,611        7,958,848        28,371,142       23,209,137
                                                   -----------     ------------      ------------     ------------

OPERATING EXPENSES:
Selling, general and administrative                  6,051,068        5,738,691        18,215,271       17,766,023
Research and development                               944,205          995,553         3,165,068        3,003,937
Severance Costs                                           --               --                --            277,300
                                                   -----------     ------------      ------------     ------------
Total operating expenses                             6,995,273        6,734,244        21,380,339       21,047,260
                                                   -----------     ------------      ------------     ------------

INCOME FROM OPERATIONS                               2,730,338        1,224,604         6,990,803        2,161,877

OTHER EXPENSE - NET                                    130,814          661,181            99,389        1,762,102
                                                   -----------     ------------      ------------     ------------

INCOME BEFORE INCOME TAX EXPENSE                     2,599,524          563,423         6,891,414          399,775

INCOME TAX EXPENSE                                     854,528          169,026         2,101,200          119,933
                                                   -----------     ------------      ------------     ------------

NET INCOME                                        $  1,744,996     $    394,397       $ 4,790,214     $    279,842
                                                   ===========     ============      ============     ============

EARNINGS PER  COMMON SHARE -
   Basic                                          $        .17     $        .04       $       .48     $        .03
                                                  ============     ============       ===========     ============

   Diluted                                        $        .16     $        .04       $       .46     $        .03
                                                  ============     ============       ===========     ============

WEIGHTED AVERAGE COMMON SHARES -
   Basic                                            10,307,373        9,709,323         9,975,947        9,641,224
                                                  ============       ==========      ============       ==========

   Diluted                                          11,242,488        9,848,121        10,473,826        9,815,788
                                                   ===========       ==========       ===========       ==========



  See Notes to Consolidated Financial Statements



                                        3







MERIT MEDICAL SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000   (Unaudited)
--------------------------------------------------------------------------------

                                                                       September 30,     September 30,
                                                                           2001             2000
                                                                       -------------  ---------------


                                                                                       
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                $4,790,214         $279,842
                                                                       -------------  ---------------
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                                            3,442,261        3,283,694
  Bad debt expense                                                           184,787          573,906
 (Gains) Losses on sales and abandonment of
   property and equipment                                                   (785,695)          60,629
Amortization of deferred credits                                            (126,697)         (96,680)
Deferred income taxes                                                         87,695            6,601
Changes in operating assets and liabilities net of
  effects from acquisitions:
         Trade receivables                                                (1,195,406)      (1,599,025)
         Employee and related party receivables                               93,249          100,766
         Irish Development Agency grant receivable                           245,423          (13,180)
         Inventories                                                       3,434,816        1,010,689
         Prepaid expenses                                                    (35,664)        (366,585)
         Deposits                                                              6,019           14,039
         Trade payables                                                       (6,513)      (1,827,504)
         Accrued expenses                                                  2,860,773        1,027,452
         Advances from employees                                              44,511           13,001
         Income taxes payable                                                525,412         (136,759)
                                                                       -------------  ---------------
Total adjustments                                                          8,774,971        2,051,044
                                                                       -------------  ---------------

Net cash provided by operating activities                                 13,565,185        2,330,886
                                                                       -------------  ---------------


CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for:
   Property and equipment                                                 (2,803,991)      (3,532,240)
   Intangible assets                                                        (174,140)        (358,255)
   Acquisitions                                                                              (660,649)
Proceeds from the sale of property and equipment                             939,198           33,188
                                                                       -------------  ---------------

Net cash used in investing activities                                     (2,038,933)      (4,517,956)
                                                                       -------------  ---------------



Continued on page 5
See Notes to Consolidated Financial Statements


                                        4







MERIT MEDICAL SYSTEMS, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000    (Unaudited)
-------------------------------------------------------------------------------

                                                                        September 30,   September 30,
                                                                            2001            2000
                                                                        -------------  --------------
                                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
    Issuance of common stock                                               4,896,716        1,114,629
    Issuance of long-term debt                                                              2,592,404
Principal payments on long-term debt                                     (16,170,902)      (1,017,567)

Net cash provided by financing activities                                (11,274,186)       2,689,466
                                                                        -------------  --------------

EFFECT OF EXCHANGE RATES ON CASH                                             (15,452)        (129,386)
                                                                        -------------  --------------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                    236,614          373,010

CASH AT BEGINNING OF PERIOD                                                  412,384          668,711
                                                                        -------------  --------------

CASH AT END OF PERIOD                                                   $    648,998   $    1,041,721
                                                                        ============   ==============

SUPPLEMENTAL  DISCLOSURES OF CASH- FLOW  INFORMATION Cash paid during the period
  for:
    Interest (including capitalized interest
      of $71,056 and $102,958, respectively)                            $    948,131   $    1,609,922
                                                                        ============   ==============
   Income taxes                                                         $    144,502   $      250,091
                                                                        ============   ==============

SUPPLEMENTAL DISCLOSURES OF NONCASH
INVESTING AND FINANCING ACTIVITIES:

During the nine months  ended  September  30,  2001 and 2000 the Company  issued
notes payable totaling  $271,169 and $509,963,  respectively,  for manufacturing
equipment, furniture and fixtures, land and building.





See Notes to Consolidated Financial Statements




                                        5





MERIT MEDICAL SYSTEMS, INC.

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

1.  Basis of  Presentation.  In the  opinion  of  management,  the  accompanying
consolidated  financial  statements contain all adjustments,  consisting only of
normal recurring  accruals,  necessary for a fair  presentation of the financial
position of the Company as of September 30, 2001 and December 31, 2000,  and the
results of its  operations  and cash flows for the three and nine  months  ended
September  30,  2001 and  2000,  and its cash  flows for the nine  months  ended
September 30, 2001 and 2000.  The results of  operations  for the three and nine
months ended September 30, 2001 and 2000 are not  necessarily  indicative of the
results for a full-year period.

2.  Inventories.  Inventories  at  September  30,  2001 and  December  31,  2000
    consisted of the following:




                                                                        September 30,       December 31,
                                                                            2001                2000
                                                                       ---------------     ---------------

                                                                                    
          Raw materials                                              $     8,400,291      $    8,325,314
          Work-in-process                                                  4,450,466           3,678,807
          Finished goods                                                  12,045,988          15,255,622
          Less reserve for obsolete inventory                             (3,058,133)         (1,986,315)
                                                                      ---------------     ---------------
          Total                                                      $  21,838,612        $  25,273,428
                                                                      ==============      ==============


3. Income Taxes.  The Company has not fully allocated income tax expense between
current and deferred for the quarters  ended  September  30, 2001 and 2000.  The
effective  tax rates for the three and nine months ended  September 30, 2001 and
2000 were below the 35% federal  statutory  rate.  Improvements in the effective
tax rate below the 35%  federal  statutory  rate were  largely the result of the
Company's  operations in Ireland which are currently  taxed at a lower rate than
the  Company's  overall  effective  tax rate as well as  credits  received  from
research and development expenditures.

4. Reporting  Comprehensive Income. The Company's only transaction considered to
be an additional  component of comprehensive  income is the cumulative effect of
foreign currency translation adjustments.  As of September 30, 2001 and December
31, 2000,  the  cumulative  effect of such  transactions  reduced  stockholders'
equity by $639,590  and  $624,138,  respectively.  Comprehensive  income for the
three and nine months ended September 30, 2001 and 2000 is shown as follows:




                                                       Three months ended                     Nine months ended
                                                         September 30,                         September 30,
                                             ------------------------------------    -------------------------------
                                                  2001                  2000             2001            2000
                                             --------------        --------------    --------------   --------------

                                                                                             
Net Income                                   $    1,744,996        $  394,397$           4,790,214    $      279,842
Foreign currency translation                         41,058           (76,470)             (15,452)         (129,386)
                                             --------------        --------------    --------------   --------------
Comprehensive income                         $    1,786,054        $  317,927        $   4,774,762    $      150,456
                                             ==============        ==============    ==============   ==============


     5. Recently Issued Financial Accounting  Standards.  Statement of Financial
Accounting Standard No.  133,(Accounting for Derivative  Instruments and Hedging
Activities),  as amended, requires that all derivative instruments be recognized
as either assets or liabilities at fair market value.  The Company  adopted this
statement  beginning  January  1,2001.  The  effect on the  Company's  financial
statements of adopting this statement was not significant.

On June 29, 2001,  Statement of Financial  Accounting  Standards (SFAS) No. l41,
"Business  Combinations",  was approved by the  Financial  Accounting  Standards
Board (FASB).  SFAS No. 141 requires  that the purchase  method of accounting be
used for all business  combinations  initiated after June 30, 2001 and addresses
the initial  recogni- tion and  measurement  of goodwill and certain  intangible
assets in a business  combination.  The  Company  has  adopted  this  accounting
standard for business combinations initiated after June 30, 2001.




                                        6







 MEDICAL SYSTEMS, INC.

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


      On June 29, 2001, SFAS No. 142,  "Goodwill and Other  Intangible  Assets",
      was approved by the FASB. SFAS No. 142 changes the accounting for goodwill
      from an amortization method to an impairment-only approach.  Goodwill from
      past  business  combinations  will no  longer  be  amortized,  but will be
      reviewed annually,  or more frequently if impairment  indicators arise. As
      of September 30, 2001,  the net book value of the  Company's  goodwill was
      $4.8 million, and goodwill  amortization for the first nine months of 2001
      was $206,096. The Company is required to implement SFAS No. 142 on January
      1,  2002 and it has not yet  determined  the  impact on its  earnings  and
      financial position of the required impairment tests of goodwill.

      In  August  2001,  the FASB  issued  SFAS  No.  144,  (Accounting  for the
      Impairment or Disposal of Long-lived  Assets),which  addresses  accounting
      and  financial  reporting  for the  impairment  or disposal of  long-lived
      assets.  This  statement is effective  for the Company on January 1, 2002.
      The Company does not expect that the adoption of this standard will have a
      material effect on its results of operations or financial position.

      6. Stock Split. On August 15, 2001, the Company  announced a five-for-four
      stock split  effective  August 28, 2001.  All earnings per share and share
      data have been adjusted to reflect this split



ITEM 2:

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
------------------------------------------------------------

Overview

Merit Medical Systems,  Inc.  reported its best third quarter and nine months in
history, with record revenues and earnings. Company sales increased over 10% for
third quarter 2001  compared to the third  quarter of 2000,  across most product
lines,  particularly  custom kits and stand-alone  products.  Continued positive
momentum  in  manufacturing  efficiency  has  resulted  in  favorable  labor and
overhead  utilization  as compared to the first nine months of 2000.  Management
believes  that this trend toward  lower costs per unit and higher gross  margins
will continue into the fourth quarter as the Company sells inventories  produced
in the last four or five months.

The Company is also experiencing  greater efficiencies in the sales, general and
administrative  areas  of  the  Company.  Management  has  continued  to  reduce
inventory; with a reduction of in excess of $3.4 million since December 31, 2000
and almost $7 million  during the last 21 months  covering the prior fiscal year
and the current nine month period.  This  reduction in inventory has resulted in
lower  inventory  carrying  costs.  The Company's cash flow from  operations was
$13.6  million  for the first nine  months of 2001,  and the Company was able to
reduce its long-term debt by $16.2 million during the period. So in just over 14
months the Company has reduced its line of credit  balance  almost $25  million,
from $30.4  million at August 24, 2000 to $5.6  million as of October 31,  2001.
This lower debt,  combined  with  falling  interest  rates,  have  resulted in a
significant decrease in interest expense.

Management is pleased to report that the  fundamental  financial  performance of
the Company has improved over the last year in almost every area.  Sales are up,
productivity has increased, gross margins have improved, operating expenses have
dropped as a percentage of sales, and debt balances and interest costs are down,
resulting in a much improved cash flow, net income, and earnings per share.

On  August  15,  2001 the  Company  announced  that its board of  directors  had
approved a  five-for-four  forward  stock split with a record date of August 24,
2001,  and an effective  date of August 28,  2001.  All  applicable  comparative
financial information have been restated to reflect this stock split.

                                        7





MERIT MEDICAL SYSTEMS, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
--------------------------------------------------------------------------------

Operations. The Company's sales and earnings for the three and nine months ended
September 30, 2001, improved compared to the same periods in 2000. The following
table sets forth certain operational data as a percentage of sales for the three
and nine months ended September 30, 2001 and 2000.




                                              Three Months Ended                          Nine Months Ended
                                                September 30,                                September 30,
                                               ---------------                               -------------

                                          2001                2000                      2001              2000
                                          ----                ----                      ----              ----
                                                                                             
Sales                                    100.0 %             100.0 %                   100.0 %           100.0 %
Gross Profit                               37.9               34.1                      36.0               33.7
Selling, General and Administrative        23.6               24.6                      23.1               25.8
Research & Development                      3.7                4.3                       4.0                4.4
Income From Operations                     10.6                5.2                       8.9                3.1
Other Expense                                .5                2.8                        .1                2.6
Net Income                                  6.8                1.7                       6.1                 .4


Sales.  Sales for the third quarter of 2001 were $25.7 million compared to $23.3
million for the same period last year,  which  represents  a gain of 10 percent.
During the  quarter,  the  Company's  inflation  device  sales  increased  by 18
percent, and custom kit business grew by 9 percent compared to the quarter ended
September 30, 2000. Sales of Stand-alone devices including  syringes,  manifolds
and needles grew by 13 percent. Growth in all segments reflects continued market
share  gains and  acceptance  of the  Company's  products,  as well as  hospital
procedural  growth.  For example,  sales of the Company's  inflation devices not
sold in kits grew by 26 percent in the  quarter due in part to  increased  sales
for  new  spinal  procedures  such  as  discography  and  kyphoplasty.  For  the
nine-month  period  ended  September  30, 2001,  total sales were $78.7  million
compared  with $69 million  for the same  period in 2000,  a gain of 14 percent.
These gains were led by sales of the Company's  stand- alone inflation  devices,
which rose 30 percent;  syringes which were up 35%, and custom kits, (other than
inflation  kits) which grew by 20 percent.  Catheter  sales  declined by 14% and
10%, respectively,  for the three and nine month periods of 2001 compared to the
same periods of 2000,  primarily  because last year this product line  benefited
significantly  from the misfortune of a recall by Merit's largest competitor for
these catheters.

Gross  Profit.  Gross profit as a percentage  of sales for the third  quarter of
2001 was  37.9%  compared  to 34.1% for the same  period  of 2000.  For the nine
months ended  September 30, 2001,  gross profit was 36.0%  compared to 33.7% for
the first nine months of 2000.  The  increase in gross  profit for the three and
nine months ended  September  30,  2001,  was  primarily  due to the much higher
productivity from both labor and overhead  applications  compared to a year ago.
Gross  margins as a percent of sales have  improved  quarter to quarter as well,
from 35.9% in the second  quarter  ended June 30th to 37.9% in the third quarter
of 2001 because of the Company's  efforts to reduce  inventory,  lower costs and
increase employee productivity.

Operating Expenses.  Operating expenses were 27.3% of sales for the three months
ended  September 30, 2001  compared to 28.9% for the third quarter of 2000.  For
the first nine months of 2001 operating  expenses decreased to 27.1% compared to
30.2% for the same period in 2000. Selling,  general and administrative expenses
as a percentage of sales were 23.6% and 23.1%,  respectively,  for the three and
nine months ended September 30, 2001, compared to 24.6% and 25.8%, respectively,
for the same periods in 2000.  The decrease was primarily due to the  successful
implementation of the Company's expense- reduction program as well as the strong
increase in sales.  Research and development  costs declined to 3.7% and 4.0% of
sales,  respectively,  for the three and nine months ended  September  30, 2001,
down from 4.3% and 4.4% of sales, respectively, for the same periods of 2000.

Operating  Income.  During the quarter  ended  September  30, 2001,  the Company
reported income from operations of $2.7 million compared to $1.2 million for the
comparable  period in 2000.  Operating  income for the first nine months of 2001
was $7.0 million  verses $2.2 million for the same period in 2000.  The increase
in net  earnings  for the three and nine  months  ended  September  30, 2001 was
mainly  attributable  to the  improvement  in  gross  margins  discussed  above,
increased sales, and reduced operating expenses as a percent of sales.


                                        8






MERIT MEDICAL SYSTEMS, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
-------------------------------------------------------------------------------

Liquidity and Capital  Resources.  At September 30, 2001, the Company's  working
capital was $27.0 million which  represented a current ratio of 3.2 to 1. During
the nine months ended  September  30, 2001 the  principal  sources of funds were
$13.6  million  generated  from  operations,  $4.9  million from the issuance of
common  stock,  and $.9 million from the sale of land.  During this same period,
$16.2 million was used to pay down  long-term  debt and $3.0 million to purchase
equipment and other long term assets.  These factors  resulted in an increase of
$.2 million in cash for the nine months ended September 30, 2001.

In March 2000, the Company  increased its long-term  revolving credit facilities
with a bank to $35 million for a term of six years.  During  September 2001, the
Company  voluntarily  reduced  its line of credit  under this  obligation  to $8
million.  The credit  facility bears interest at or below the bank's prime rate,
or can be fixed at between  140 and 160 points over LIBOR and  contains  various
conditions  and  restrictions.  At September 30, 2001, the  outstanding  balance
under the credit  facility  was $7.7  million.  Historically,  the  Company  has
incurred  significant  expenses  in  connection  with  product  development  and
introduction  of new  products.  Substantial  capital has also been  required to
finance growth in inventories and receivables,  particularly  with  acquisitions
and the  introduction of new product lines.  The Company's  principal  source of
funding  for  these  and other  expenses  has been the sale of  equity  and cash
generated  from   operations,   secured  loans  on  equipment  and  bank  credit
facilities.  The Company  believes  that its present  sources of  liquidity  and
capital are adequate for its current operations.

Item 3: Quantitative and Qualitative Disclosure About Market Risk.

Market Risk Disclosures.
The Company  principally  hedges the following EURO currencies:  Belgian Francs,
French Francs, German Marks, Dutch Gilders, and Irish Pounds. The Company enters
into  forward  foreign  exchange  contracts to protect the Company from the risk
that the eventual net dollar cash flows resulting from transactions with foreign
customers  and  suppliers  may be  adversely  affected  by changes  in  currency
exchange rates. Such contracts are not significant.

Forward-Looking  Statements.  This Report includes "Forward-Looking  Statements"
within the meaning of Section 27A of the  Securities Act of 1933, as amended and
Section 21E of the Securities  Exchange Act of 1934, as amended.  All statements
other than  statements of historical fact are  "Forward-Looking  Statements" for
purpose of these provisions,  including any projections of earnings, revenues or
other financial  items, any statements of the plans and objectives of management
for future  operations,  any  statements  concerning  proposed  new  products or
services,  any statements  regarding future economic  conditions or performance,
and  any  statements  of  assumptions  underlying  any  of  the  foregoing.  All
Forward-Looking  Statements  included in this  document  are made as of the date
hereof and are based on  information  available to Merit as of such date.  Merit
assumes no obligation to update any  Forward-Looking  Statement.  In some cases,
Forward-Looking  Statements can be identified by the use of terminology  such as
"may,"  "will,"  "expects,"  "plans,"   "anticipates,"   "intends,"  "believes,"
"estimates,"  "potential,"  or  "continue,"  or the  negative  thereof  or other
comparable  terminology.  Although the Company  believes  that the  expectations
reflected in the  Forward-Looking  Statements  contained  herein are reasonable,
there can be no assurance that such  expectations or any of the  Forward-Looking
Statements will prove to be correct,  and actual results could differ materially
from  those  projected  or  assumed in the  Forward-Looking  Statements.  Future
financial  condition and results of operations,  as well as any  Forward-Looking
Statements are subject to inherent  risks and  uncertainties,  including  market
acceptance  of  the  Company's   products,   the  timing  of  price   increases,
fluctuations in and  obsolescence of inventory,  price and product  competition,
availability of labor and materials,  development of new products and techniques
that render the  Company's  products  obsolete,  foreign  currency  fluctuation,
changes in health care  markets  related to health care reform  initiatives  and
other factors referred to in the Company's press releases and reports filed with
the  Securities  and  Exchange  Commission.   All  subsequent  Forward-  Looking
Statements  attributable  to the  Company  or person  acting on its  behalf  are
expressly qualified in their entirety by these cautionary statements.


                                        9





MERIT MEDICAL SYSTEMS, INC.
---------------------------

                                            PART II - OTHER INFORMATION



ITEM 4: Exhibits and Reports on Form 8-K

                  (a) Reports on Form 8-K - none
                  (b) Exhibits - none



                                   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 thereunto duly authorized.





MERIT MEDICAL SYSTEMS, INC.
REGISTRANT





Date:     NOVEMBER 13, 2001     /s/FRED P. LAMPROPOULOS
       ----------------------   -------------------------------------------
                                   FRED P. LAMPROPOULOS
                                   PRESIDENT AND CHIEF EXECUTIVE OFFICER





Date:     NOVEMBER 13, 2001     /s/ KENT W. STANGER
       ----------------------   -------------------------------------------
                                    KENT W. STANGER
                                    VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

                                       10