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