EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
WESTERN DIVISION OF MASSACHUSETTS
Case Name: MRS Technology, Inc.
Case Number: 98-44938-JFQ
CHAPTER 11 MONTHLY OPERATING REPORT
FOR MONTH ENDING JULY,1998
Comes Now, MRS Technology, Inc.
Debtor-In-Possession, and hereby submits its Monthly Operating Report for
the period commencing July 1, 1998 and ending July 31, 1998 as shown by
the report and exhibits consisting of 11 pages and containing the
following, as indicated:
(X) Monthly Reporting Questionnaire (Attachment 1)
(X) Comparative Balance Sheets (Forms OPR-1 & OPR-2)
(X) Summary of Accounts Receivable (Form OPR-3)
(X) Schedule of Post-petition Liabilities (Form OPR-4)
(X) Income Statement (Form OPR-5)
(X) Statement of Sources and Uses of Cash (Form OPR-6)
I declare under penalty of perjury that this report and all attachments
are true and correct to the best of my knowledge and belief.
Date: August 19, 1998 DEBTOR(S)-IN-POSSESSION
/s/ Patricia F. DiIanni
Name & Title: Patricia F. DiIanni
Vice President and Chief
Financial Officer
Address: MRS Technology, Inc.
10 Elizabeth Drive
Chelmsford, MA 01824
Telephone No.: (978) 250-0450
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
Case Name: MRS Technology, Inc.
Case Number: 98-44938-JFQ
MONTH OF: July 1998
1. Payroll: State the amount of all executive wages paid and taxes
withheld and paid.
Name and Title Wages Paid Taxes Withheld
Of Executive Gross Net Due Paid
C.P. Herrmann, CEO $13,153.86 $10,041.84 Weekly Weekly
Before Before
P.F. DiIanni, CFO $ 6,923.09 $ 4,778.51 Payday Payday
E. DaSilviera, VP $ 7,269.23 $ 4,855.08 Via ADP Via ADP
TOTAL EXECUTIVE
PAYROLL: $27,346.18
2. Insurance: Is workers' compensation and other insurance in effect?
Yes. Are payments current? Yes. If any policy has lapsed, been replaced
or renewed, state so in the schedule below. Attach a copy of the new
policy's binder or cover page.
Date
Carrier Coverage Expiration Premium Coverage
Type Name Amount Policy # Date Amounts Pd Thru
Homeowners
Rental Property
Liability
Vehicle
Workers
Compensation
Other
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT (Page 2)
DETAILED LISTING OF DISBURSEMENTS
CASE NAME: MRS Technology, Inc.
CASE NUMBER: 98-44938-JFQ
MONTH OF: July 1998
3. Bank Accounts Account Type
Operating *MRSA Payroll Other Total
Bank Name Fleet Japan BankBoston Petty
Cash
Account Number 94088-55556 896-60243
BEGINNING BOOK $131,676 $15,337 $ 3,557 $2,144 $152,714
BALANCE
PLUS:
Deposits 179,797 1,906 1,220 182,923
LESS:
Disbursements (33,438) (9,228) (78,333) (1,807) (122,806)
Other:
Transfers
In (Out) (110,000) 110,000 0
Foreign Exchange
Impact (541) (541)
ENDING BOOK
BALANCE $168,035 $ 7,474 $ 35,224 $1,557 $212,290
* MRS Asia is located in Japan and has one service employee.
4. Post-Petition Payments: List any post-petition payments to
professionals and payments on Pre-petition debts in the schedule below
(attach separate sheet if necessary).
Payments To/On Amount Date Check #
Professionals (attorneys, None
Accountants, etc.):
Pre-petition Debts: None
COMPARATIVE BALANCE SHEETS FORM OPR-1
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-JFQ
FILING
DATE MONTH
ASSETS 7/1/98 July
CURRENT ASSETS
Cash $ 129,041 $ 212,290
Other negotiable instruments (i.e.
CD's, Treasury Bills, Etc.) 0 0
Accounts Receivable, Net (OPR-3) 201,899 412,004
Less allowance for doubtful accounts (21,045) (21,045)
Inventory, at cost 5,575,890 5,443,375
Prepaid expenses and deposits 132,884 131,300
Investments 0 0
Other: Uninvoiced Ship. 135,374 82,960
TOTAL CURRENT ASSETS $6,154,043 $6,260,884
PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,906,242
Less Accumulated Depreciation (3,775,570) (3,794,569)
NET PROPERTY, PLANT AND EQUIPMENT 130,672 111,673
+ OTHER ASSETS 29,339 29,091
TOTAL ASSETS $6,314,054 $6,401,648
+Itemize if value of "Other Assets" exceeds 10% of "Total Assets"
COMPARATIVE BALANCE SHEETS FORM OPR-2
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-JFQ
TOTAL MONTH
LIABILITIES 7/1/98 July
POST PETITION LIABILITIES 0 98,018
Priority Debt/Secured &
Employee Expenses * $ 1,040,051 $ 1,070,538
Unsecured Debt 2,217,507 2,315,871
TOTAL PRE PETITION LIABILITIES 3,257,558 3,386,409
TOTAL LIABILITIES 3,257,558 3,484,427
SHAREHOLDER'S EQUITY (DEFICIT)
Preferred Stock 0 0
Common Stock 68,586 68,586
Paid-In Capital 36,511,205 36,511,205
Retained Earnings
Through Filing Date (33,523,295) (33,523,295)
Post Filing Date 0 (130,874)
TOTAL SHAREHOLDERS' EQUITY $ 3,056,496 $ 2,925,622
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 6,314,054 $ 6,410,049
* Includes accrued interest and expenses.
SUMMARY OF ACCOUNTS RECEIVABLE
FORM OPR-3
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-JFQ
0-30 31-60 61-90 OVER
TOTAl DAYS DAYS DAYS 90 DAYS
DATE OF FILING:
7/1/98 $201,899 $146,526 $31,187 $5,779 $18,407
Allowance for
doubtful accounts -
General (21,045) ( ) ( ) ( ) ( )
MONTH: July 1998 $412,005 $333,558 $55,532 $9,371 $13,544
Allowance for
doubtful accounts -
General (21,045) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
MONTH:
Allowance for
doubtful accounts ( ) ( ) ( ) ( ) ( )
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-0JFQ
DATE DATE TOTAL
INCURRED DUE DUE
TAXES PAYABLE
Federal Income Taxes 0
FICA-Employer's Share 0
FICA-Employer's Share 0
Unemployment Tax 0
State Income Tax 0
State Sales & Use Tax 0
State Tax 0
Personal Property Tax 0
TOTAL TAXES PAYABLE 0
POSTPETITION SECURED DEBT 1,070,538
POSTPETITION UNSECURED DEBT 0 0
ACCRUED INTEREST PAYABLE 0 0
TRADE ACCOUNTS PAYABLE & OTHER:
(List Separately*)
See attached sheet $98,018
Totals
*Attach separate page if necessary.
Note: Total postpetition liabilities shown here must agree with the same
item as shown on OPR-2 of this report.
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-JFQ
0-30 31-60 11-90 OVER
DAYS DAYS DAYS 90 DAYS
TAXES PAYABLE
Federal Income Taxes
FICA-Employer's Share
FICA-Employer's Share
Unemployment Tax
State Income Tax
State Sales & Use Tax
State Tax
Personal Property Tax
TOTAL TAXES PAYABLE
POSTPETITION SECURED DEBT
POSTPETITION UNSECURED DEBT
ACCRUED INTEREST PAYABLE
TRADE ACCOUNTS PAYABLE & OTHER:
(List Separately*)
Totals
*Attach separate page if necessary.
Note: Total postpetition liabilities shown here must agree with the same
item as shown on OPR-2 of this report.
Schedule of Post Petition Liabilities - Form 4
Trade Accounts Payable & Other
Date Amount Vendor
7/28/98 $ 899.58 Delta Dental
7/23/98 448.73 Reliance Standard Life
7/24/98 1,046.24 Ron Trevisone
7/17/98 1,262.38 Ron Trevisone
7/17/98 895.66 Ron Trevisone
7/8/98 178.17 Carlo Gavazzi Inc.
7/16/98 645.00 Alpine Precison
7/15/98 7,273.88 AFCO Credit Corporation
7/23/98 234.81 Image Graphics
7 16/98 32.00 Bain Pest Control Service
7/15/98 162.75 Federal Express
7/22/98 32.25 Federal Express
7/22/98 71.50 Federal Express
7/15/98 152.50 Federal Express
7/15/98 102.43 ACT Teleconferencing
7/18/98 127.15 Joe Halberg
7/8/98 343.95 UNUM Insurance
7/4/98 1,018.75 Tom Guimond
7/11/98 5,248.77 Harvard Community Health Plan
7/10/98 22.18 Book Clearing House
7/14/98 26.12 Newark Electronics
7/25/98 256.20 Xerox Corporation
7/16/98 28.61 Mass Electric
7/22/98 2,000.00 Colonial Gas
7/22/98 2,000.00 Colonial Gas
7/22/98 1,000.00 Colonial Gas
7/22/98 408.42 UNUM Insurance
7/6/98 300.00 Atcor Corporation
7/9/98 215.30 Chiswick Trading
7/27/98 75.00 Chiswick Trading
7/31/98 17.88 Hammond
7/2/98 2,230.00 ILC
7/1/98 124.55 Merrimack Tool
7/1/98 400.00 Photronics
7/27/98 400.00 Photronics
7/27/98 1,200.00 Telic Company
7/21/98 109.04 Winfred M. Berg Inc.
Accruals:
7/31/98 2,467.00 Vacation
7/31/98 16,500.00 Legal
7/31/98 5,000.00 Audit
7/31/98 37,061.00 Rent & Utilities
7/31/98 6,000.00 Commissions
$98,017.80
INCOME STATEMENT
FORM OPR-5
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-JFQ
FILING TO
MONTH DATE
NET REVENUE (INCOME) $ 341,679 $ 341,679
COST OF GOODS SOLD
Materials 107,334 107,334
Labor-Direct 53,386 53,386
Manufacturing Overhead 109,768 109,768
TOTAL COST OF GOODS SOLD LIABILITIES 270,488 270,488
GROSS PROFIT 71,191 71,191
Selling and Marketing 17,465 17,465
General and Administrative 155,931 155,931
Other:Research & Development 16,110 16,110
Other (Income)/Expense (8,224) (8,224)
TOTAL OPERATING EXPENSES 181,282 181,282
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (110,091) (110,091)
INTEREST EXPENSE 10,182 10,182
DEPRECIATION 19,000 19,000
INCOME TAX EXPENSE (BENEFIT) 0 0
EXTRAORDINARY INCOME (EXPENSE)* 0 0
NET INCOME (LOSS) (139,273) (139,273)
*Requires Footnote
STATEMENT OF SOURCES AND USES OF CASH
FORM OPR-6
REV 7/92
Case Name: MRS Technology, Inc. Month Ended: July 1998
Case Number: 98-44938-JFQ
MONTH
JULY
SOURCES OF CASH
Income (Loss) From Operations (139,273)
Add: Depreciation, Amortization &
Other Non-Cash 19,000
CASH GENERATEED FROM OPERATIONS (120,273)
Add: Decrease in Assets:
Accounts Receivable 0
Inventory 132,515
Prepaid Expenses & Deposits 1,584
Property, Plant & Equipment 0
Other- Uninvoiced Shipments & Other 52,662
Increase in Liabilities
Pre-Petition Liabilities 128,851
Post Petition Liabilities 98,018
TOTAL SOURCES OF CASH (A) $293,357
USES OF CASH
Increase in Assets:
Accounts Receivable $210,105
Inventory
Prepaid Expenses & Deposts 0
Property, Plant & Equipment 0
Other 0
Decrease in Liabilities
Pre-Petition Liabilities 0
Post Petition Liabilities 0
TOTAL USES OF CASH (B) 210,105
NET SOURCE (USE) OF CASH (A-B=NET) 83,252
CASH - BEGINNING BALANCE (See OPR-1) 129,041
CASH - ENDING BALANCE (See OPR-1) 212,290