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 OCTOBER,1998 Comes Now, MRS Technology, Inc. Debtor-In-Possession, and hereby submits its Monthly Operating Report for the period commencing October 1, 1998 and ending October 31, 1998 as shown by the report and exhibits consisting of 17 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: November 24, 1998 DEBTOR(S)-IN-POSSESSION /s/ Patricia F. DiIanni Name & Title: Patricia F. DiIanni Vice President and Chief Financial Officer Address: MRS Technology, Inc. 231 Sutton Street, Unit 1D No. Anodver, MA 01845 Telephone No.: (978) 682-4000 ATTACHMENT 1 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE Case Name: MRS Technology, Inc. Case Number: 98-44938-JFQ MONTH OF: October 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 $14,615.40 $12,093.60 Weekly Weekly Before Before P.F. DiIanni, CFO $ 7,692.32 $ 5,507.72 Payday Payday E. DaSilviera, VP $ 8,076.92 $ 5,898.97 Via ADP Via ADP TOTAL EXECUTIVE PAYROLL: $30,384.64 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: October 1998 3. Bank Accounts Account Type Operating *MRSA Payroll Other Total Bank Name Fleet Japan BankBoston Petty Cash Account Number 94088-55556 N/A 896-60243 N/A BEGINNING BOOK $143,202 $10,962 $ 26,879 $2,046 $183,089 BALANCE PLUS: Deposits 295,325 10,559 0 1,450 307,334 LESS: Disbursements (105,132) (7,775) (99,270) (1,637) (213,814) Other: Transfers In (Out) (105,000) 0 105,000 0 0 Foreign Exchange Impact 1,878 1,878 ENDING BOOK BALANCE $228,395 $15,624 $ 32,609 $1,859 $278,487 * 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: October 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) 201,899 412,005 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 $6,260,885 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-1 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH MONTH ASSETS August September CURRENT ASSETS Cash $ 321,509 $ 183,089 Other negotiable instruments (i.e. CD's, Treasury Bills, Etc.) 0 0 Accounts Receivable, Net (OPR-3) 266,224 255,532 Less allowance for doubtful accounts (21,045) (21,045) Inventory, at cost 5,411,849 5,337,618 Prepaid expenses and deposits 130,245 80,179 Investments 0 0 Other: Uninvoiced Ship. 82,960 82,960 TOTAL CURRENT ASSETS $6,191,742 5,918,334 PROPERTY, PLANT AND EQUIPMENT, AT COST 3,906,242 3,891,499 Less Accumulated Depreciation (3,809,060) (3,823,244) NET PROPERTY, PLANT AND EQUIPMENT 97,182 68,255 + OTHER ASSETS 28,946 27,493 TOTAL ASSETS $6,317,870 $6,014,081 +Itemize if value of "Other Assets" exceeds 10% of "Total Assets" COMPARATIVE BALANCE SHEETS FORM OPR-1 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH ASSETS October CURRENT ASSETS Cash $ 278,488 Other negotiable instruments (i.e. 0 CD's, Treasury Bills, Etc.) Accounts Receivable, Net (OPR-3) 232,293 Less allowance for doubtful accounts (21,045) Inventory, at cost 5,313,110 Prepaid expenses and deposits 78,045 Investments 0 Other: Uninvoiced Ship. 82,960 TOTAL CURRENT ASSETS $5,963,851 PROPERTY, PLANT AND EQUIPMENT, AT COST 3,891,499 Less Accumulated Depreciation (3,885,365) NET PROPERTY, PLANT AND EQUIPMENT 6,134 + OTHER ASSETS 27,380 TOTAL ASSETS $5,997,365 +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: October 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. COMPARATIVE BALANCE SHEETS FORM OPR-2 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH MONTH LIABILITIES August September POST PETITION LIABILITIES $ 97,475 $ 144,022 Priority Debt/Secured & Employee Expenses * $ 1,114,668 1,126,257 Unsecured Debt 2,343,878 2,167,668 TOTAL PRE PETITION LIABILITIES 3,458,546 3,293,925 TOTAL LIABILITIES 3,556,021 3,437,947 SHAREHOLDER'S EQUITY (DEFICIT) Preferred Stock 0 0 Common Stock 68,585 68,588 Paid-In Capital 36,511,205 36,511,202 Retained Earnings Through Filing Date (33,523,295) (33,523,295) Post Filing Date (294,646) (480,361) TOTAL SHAREHOLDERS' EQUITY $ 2,761,849 2,576,134 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,317,870 6,014,081 * Includes accrued interest and expenses. COMPARATIVE BALANCE SHEETS FORM OPR-2 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH LIABILITIES October POST PETITION LIABILITIES $ 192,354 Priority Debt/Secured & Employee Expenses * $ 1,140,333 Unsecured Debt 2,129,703 TOTAL PRE PETITION LIABILITIES 3,270,036 TOTAL LIABILITIES 3,462,390 SHAREHOLDER'S EQUITY (DEFICIT) Preferred Stock 0 Common Stock 68,588 Paid-In Capital 36,511,202 Retained Earnings Through Filing Date (33,523,295) Post Filing Date (521,520) TOTAL SHAREHOLDERS' EQUITY $ 2,534,975 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,997,365 * Includes accrued interest and expenses. SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 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: August 1998 $266,224 $128,918 $49,620 $67,842 $19,844 Allowance for doubtful accounts (21,045) ( ) ( ) ( ) ( ) MONTH: September 98 $255,532 $120,380 $55,319 $ 5,500 $74,333 Allowance for doubtful accounts MONTH: October 1998 $232,293 $115,773 $42,387 $ 0 $74,133 Allowance for doubtful accounts (21,045) ( ) ( ) ( ) ( ) 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: October 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 1,126,257 POSTPETITION UNSECURED DEBT 0 0 ACCRUED INTEREST PAYABLE 0 0 TRADE ACCOUNTS PAYABLE & OTHER: (List Separately*) See attached sheet $192,354 Totals $192,354 *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: October 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 10/20/98 $ 77.73 Allied Electric 10/14/98 12,353.96 Altid Enterprises 10/14/98 12,353.96 Altid Enterprises 10/14/98 12,353.96 Altid Enterprises 10/22/98 73.00 Alpine Precision 9/30/98 10.00 Browning-Ferris Industries 10/19/98 874.94 First National Bank of Boston 10/13/98 1,713.39 CGLIC 10/20/98 185.00 Cobra Resources 9/21/98 22,726.10 Cohn & Kelakos 10/29/98 1,510.20 Delta Dental 10/29/98 3,421.92 Patricia DiIanni 9/30/98 16.34 Electronic Fastners 10/15/98 474.91 Health Alliance Plan 10/14/98 1,082.82 HBS&R Client Trust 9/29/98 25.37 Hammond Office Products 10/17/98 10,196.77 Harvard Pilgrim Health Care 8/08/98 162.23 Investor Communications 10/10/98 6,788.50 ILC Technology 10/14/98 2,145.00 NetCom 10/22/98 97.51 Newark Electronics 10/29/98 539.58 Reliance Standard 10/22/98 400.15 UNUM 10/05/98 118.90 Xerox ACCRUALS: 7/31/98 10,652.00 Vacation 7/31/98 66,000.00 Legal 7/31/98 20,000.00 Audit 7/31/98 6,000.00 Commissions $192,354.24 INCOME STATEMENT FORM OPR-5 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH MONTH July August NET REVENUE (INCOME) $ 341,679 $ 130,808 COST OF GOODS SOLD Materials 107,334 33,483 Labor-Direct 53,386 54,125 Manufacturing Overhead 109,768 57,663 TOTAL COST OF GOODS SOLD LIABILITIES 270,488 145,271 GROSS PROFIT 71,191 (14,463) Selling and Marketing 17,465 266 General and Administrative 155,931 108,753 Other:Research & Development 16,110 1,967 Other (Income)/Expense (8,224) (4,639) TOTAL OPERATING EXPENSES 181,282 106,347 INCOME BEFORE INTEREST, DEPRECIATION, TAXES, OR EXTRAORDINARY EXPENSES (110,091) (120,810) INTEREST EXPENSE 10,182 20,070 DEPRECIATION 19,000 14,492 INCOME TAX EXPENSE (BENEFIT) 0 0 EXTRAORDINARY INCOME (EXPENSE)* 0 0 NET INCOME (LOSS) (139,273) (155,372) *Requires Footnote INCOME STATEMENT FORM OPR-5 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH MONTH September October NET REVENUE (INCOME) $ 131,101 $140,656 COST OF GOODS SOLD Materials 6,944 2,586 Labor-Direct 62,351 53,224 Manufacturing Overhead 188,710 141,697 TOTAL COST OF GOODS SOLD LIABILITIES 258,005 197,507 GROSS PROFIT (126,904) (56,851) Selling and Marketing (5,472) 0 General and Administrative 119,766 77,415 Other:Research & Development 57,905 44,509 Other (Income)/Expense (136,142) (137,615) TOTAL OPERATING EXPENSES 36,057 (15,691) INCOME BEFORE INTEREST, DEPRECIATION, TAXES, OR EXTRAORDINARY EXPENSES (162,961) (41,160) INTEREST EXPENSE 10,012 0 DEPRECIATION 12,743 0 INCOME TAX EXPENSE (BENEFIT) 0 0 EXTRAORDINARY INCOME (EXPENSE)* 0 0 NET INCOME (LOSS) (185,716) (41,160) *Requires Footnote INCOME STATEMENT FORM OPR-5 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ FILING TO DATE NET REVENUE (INCOME) $ 744,244 COST OF GOODS SOLD Materials 150,347 Labor-Direct 223,086 Manufacturing Overhead 497,838 TOTAL COST OF GOODS SOLD LIABILITIES 871,271 GROSS PROFIT (127,027) Selling and Marketing 12,259 General and Administrative 461,865 Other:Research & Development 120,491 Other (Income)/Expense (286,620) TOTAL OPERATING EXPENSES 307,995 INCOME BEFORE INTEREST, DEPRECIATION, TAXES, OR EXTRAORDINARY EXPENSES (435,022) INTEREST EXPENSE 40,264 DEPRECIATION 46,235 INCOME TAX EXPENSE (BENEFIT) 0 EXTRAORDINARY INCOME (EXPENSE)* 0 NET INCOME (LOSS) (521,521) *Requires Footnote STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 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 STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH MONTH August September SOURCES OF CASH Income (Loss) From Operations (155,372) $(185,716) Add: Depreciation, Amortization & Other Non-Cash 14,492 28,927 CASH GENERATEED FROM OPERATIONS (140,880) (156,789) Add: Decrease in Assets: Accounts Receivable 145,781 10.691 Inventory 31,526 74,100 Prepaid Expenses & Deposits 1,055 50,066 Property, Plant & Equipment 0 0 Other- Uninvoiced Shipments & Other 145 1,453 Increase in Liabilities Pre-Petition Liabilities 72,137 0 Post Petition Liabilities 0 46,547 TOTAL SOURCES OF CASH (A) $109,764 26,068 USES OF CASH Increase in Assets: Accounts Receivable $ 0 0 Inventory Prepaid Expenses & Deposts Property, Plant & Equipment 0 0 Other 0 0 Decrease in Liabilities Pre-Petition Liabilities 0 (164,621) Post Petition Liabilities (543) 0 TOTAL USES OF CASH (B) (543) (164,621) NET SOURCE (USE) OF CASH (A-B=NET) 109,221 (138,553) CASH - BEGINNING BALANCE (See OPR-1) 212,290 321,509 CASH - ENDING BALANCE (See OPR-1) 321,509 183,089 STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6 REV 7/92 Case Name: MRS Technology, Inc. Month Ended: October 1998 Case Number: 98-44938-JFQ MONTH October SOURCES OF CASH Income (Loss) From Operations $(41,160) Add: Depreciation, Amortization & Other Non-Cash 62,121 CASH GENERATEED FROM OPERATIONS 20,961 Add: Decrease in Assets: Accounts Receivable 23,239 Inventory 24,508 Prepaid Expenses & Deposits 2,134 Property, Plant & Equipment 0 Other- Uninvoiced Shipments & Other 113 Increase in Liabilities Pre-Petition Liabilities 0 Post Petition Liabilities 48,332 TOTAL SOURCES OF CASH (A) $119,287 USES OF CASH Increase in Assets: Accounts Receivable $ 0 Inventory 0 Prepaid Expenses & Deposts 0 Property, Plant & Equipment 0 Other 0 Decrease in Liabilities Pre-Petition Liabilities (23,889) Post Petition Liabilities 0 TOTAL USES OF CASH (B) (23,889) NET SOURCE (USE) OF CASH (A-B=NET) 95,398 CASH - BEGINNING BALANCE (See OPR-1) 183,089 CASH - ENDING BALANCE (See OPR-1) 278,487