SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Commission File No.: 0-9503
Current Report
November 25, 1997
(Date of Report - Date of Earliest Event Reported)
DIGITAL PRODUCTS CORPORATION
Florida 59-1141879
(State or other jurisdiction of (IRS Employer
Incorporation or organization) Identification No)
3001 SW 10th Street
Pompano Beach, Florida 33069
(Address of Principal Executive Offices)
(800) 670-7790
(Registrant's Telephone Number)
(Former Name, Former Address and Former Fiscal Year,
if changed since last report)
<PAGE>
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
On April 3, 1997, the Company filed a voluntary petition under Chapter 11
of the U.S. Bankruptcy Act in the U.S. District Court for the Southern
District of Florida. Since that date, the Company has continued its
day-to-day business under the protection of the Bankruptcy Court as
Debtor-In-Possession. The following Monthly Financial Report for Business for
the month of October was filed with the Bankruptcy Court on November 25, 1997.
<PAGE>
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF FLORIDA
MIAMI DIVISION
IN RE: CASE NUMBER
97-21987BKC-RBR
JUDGE RAYMOND B. RAY
DEBTOR. CHAPTER 11
DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS)
FOR THE PERIOD
FROM 10/1/97 TO 10/31/97
Comes now the above-named debtor and files its Periodic Financial Reports in
accordance with the Guidelines established by the United States Trustee and
FRBP 2015.
Robert Furr
Attorney for Debtor
Debtor's Address Attorney's Address
And Phone Number: and Phone Number:
3001 SW 10th Street 1499 W Palmetto Road
Pompano Beach, FL 33069 Boca Raton, FL 33486
(800) 670-7790 (561) 395-0500
<PAGE>
Monthly Financial Report for Business
For the Period Beginning: 10/1/97 and Ending: 10/31/97
Name of Debtor: Digital Products Corporation Case Number 97-21987 BKC RBR
Date of Petition: 4/3/97
<TABLE>
<CAPTION>
Current Cumulative
Month Petition to Date
<S> <C> <C>
1. Cash at Beginning of Period $ 38,426.73 $ 60,846.09
2. Receipts:
A. Cash Sales - -
Less: Cash Refunds - -
Net Cash Sales - -
B. Collections on Post Petition A/R 295,256.95 1,104,713.90
C. Collections on Pre Petition A/R 21,145.07 382,998.55
D. Other Receipts 236.00 50,086.29
3. TOTAL RECEIPTS 316,638.02 1,537,798.74
4. TOTAL CASH AVAILABLE FOR
OPERATIONS (Line 1 + Line 3) 355,064.75 1,598,644.83
5. DISBURSEMENTS
A. U.S. Trustee Quarterly Fees 3,750.00 7,500.00
B. Net Payroll 64,950.09 374,877.47
C. Payroll Taxes Paid 31,542.89 166,182.50
D. Sales and Use Taxes - -
E. Other Taxes 606.23 1,259.46
F. Rent 6,000.00 40,084.71
G. Other Leases 10,650.73 36,420.65
H. Telephone 34,307.20 172,246.29
I. Utilities - -
J. Travel & Entertainment 12,912.70 68,285.27
K. Vehicle Expenses - -
L. Office Supplies 2,064.58 10,283.88
M. Advertising 3,625.00 13,850.57
N. Insurance (Attachment 7) 7,094.73 78,519.90
O. Purchases of Fixed Assets 1,515.00 47,853.24
P. Purchases of Inventory 38,403.69 131,126.23
Q. Manufacturing Supplies - -
R. Repairs and Maintenance 317.33 1,242.65
S. Payments to Secured Creditors - -
T. Other Operating Expenses 74,745.37 386,332.80
(Attach List)
6. TOTAL CASH DISBURSEMENTS 292,485.54 1,536,065.62
7. ENDING CASH BALANCE
(LINE 4 - LINE 6) $ 62,579.21 $ 62,579.21
</TABLE>
I declare under penalty of perjury that this statement and the accompanying
documents and reports are true and correct to the best of my knowledge and
belief.
This 20 day of November 1997.
<PAGE>
Monthly Financial Report for Business
Period Beginning: 10/1/97 and Ending: 10/31/97
Name of Debtor: Digital Products Corporation Case Number: 97-21987-BKC-RBR
Date of Petition: 4/3/97
<TABLE>
<CAPTION>
OTHER RECEIPTS
Current Cumulative
Month to Date
<S> <C> <C>
IL Unemployment Refund - 701.08
Employees Shipping - 22.25
AT&T Refund - 172.98
Various Misc Income - 1,197.38
Genesee County Payment in Error - 1,622.00
COD Supplies/Other 236.00 2,217.37
EMS Cash Advance - 24,900.00
APT Refund deposit - 10,000.00
Various Tax refunds - 257.51
State of Utah Receipt in error - 4,750.20
Void Checks - 245.52
Nasdaq Refund - 4,000.00
$ 236.00 $ 50,086.29
</TABLE>
Monthly Financial Report for Business
Period Beginning: 10/1/97 and Ending: 10/31/97
Name of Debtor: Digital Products Corporation Case Number: 97-21987-BKC-RBR
Date of Petition: 4/3/97
<TABLE>
<CAPTION>
OTHER OPERATING EXPENSES
Current Cumulative
Month to Date
<S> <C> <C>
Tax Account Bank Charge Service Charges 16.96 148.28
Barnett Bank Bank Charge Wire Transfer Fees - 75.00
Operating Acc Bank Charge Service Charges 65.33 454.04
Payroll Account Bank Charges Service Charges 20.49 131.52
Kinko's Copies for Tracking - 654.67
Postage Next Day Mailing - 56.75
Subcontractors Installers 2,975.45 20,409.51
Corporate License Fees - 330.00
Computer Programmer 5,875.00 29,325.48
Subcontractors Labor 18,394.39 59,447.14
Freight 9,999.10 47,334.30
Transfer Agent/Other 3,429.44 25,182.25
Patent Renewals 1,650.00 12,025.00
Refund (ck Rec in Error) - 6,362.20
Advance Payment Repayment - 24,900.00
Various Medical Claims - 1,835.88
Subcontractors Computer Supplies - 498.18
S. Kapila Interim CFO - 10,469.05
L. Martin Commission - 1,000.00
T. Snellings Commission - 2,500.00
Various Network Support - 5,634.33
Various Move Expense - 7,006.60
SGSG Advance - 17,820.67
Competatech/Others Training 206.25 1,156.45
Employees Mileage - 168.44
Employees 125s Reimbursement - 2,588.00
Corporate Systems CCSN Deposit 31,612.96 61,612.96
Mike Luther Expense Advance - 6,206.10
USCF Fees 500.00 500.00
Various Deposits - 40,500.00
Total $ 74,745.37 $386,332.80
</TABLE>
ATTACHMENT 1
MONTHLY ACCOUNTS RECEIVABLE AGING AND RECONCILIATION
Name of Debtor: Digital Products Corporation Case Number: 97-21987 BKC RBR
Reporting Period Beginning: 10/1/97 and Ending: 10/31/97
ACCOUNTS RECEIVABLE AT PETITION DATE: $534,314.00
ACCOUNTS RECEIVABLE RECONCILIATION (Includes all accounts receivable,
pre-petition and post-petition, including charge card sales, which have not
been received):
Beginning of Month Balance $ 574,750.53
Plus: Current Month New Billings 309,972.40
Less: Collections during the Month 316,402.02
End of Month Balance $ 568,320.91
Aging: (Show the total amount for each age group of accounts
Incurred since filing the petition)
0-30 days 31-60 days 61-90 days Over 90 Total
Days
$240,995.86 151,936.97 97,224.78 78,163.30 $568,320.91
<PAGE>
ATTACHMENT 2
MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT
Name of Debtor: Digital Products Corporation Case # 97-21987 BKC-RBR
Reporting Period Beginning 10/1/97 and Ending 10/31/97
In the space below list all invoices or bills incurred and not paid since the
filing of the petition. Do not include amounts owed prior to the filing of
the petition.
<TABLE>
<CAPTION>
Date Days
Incurred Outstanding Vendor Description Amount
<S> <C> <C> <C> <C>
24-Apr-97 Millward & Co. Audit 150.00 dispute
26-Oct-97 5 Victor Flores Programming 1,937.50
31-Oct-97 1 United Parcel Service Freight 4,537.01
25-Oct-97 6 Liberty Court Travel Airfare 383.00
29-Oct-97 2 Industrial Assembly Straps 2,382.00
31-Oct-97 1 Pagenet Pagers 233.29
31-Oct-97 1 American Design Subcontract 4,691.05
31-Oct-97 1 F Garner & A Laporte Installer (subcontractor) 987.48
30-Oct-97 2 Charles Nora Subcontract & Expense 1,040.95
25-Oct-97 6 Corporate Systems Group Network Support 2,250.00
31-Oct-97 1 Various employees Expense reimburse 2,800.65
25-Oct-97 6 US West Telephone 1,110.37
20-Oct-97 11 Rhino Technologies Subcontract 1,407.00
31-Oct-97 1 Carnotel Phone service 1,873.74
$25,784.04
</TABLE>
ACCOUNTS PAYABLE RECONCILIATION (Post Petition Only):
Opening Balance (total from prior report) $ 22,318.21
Plus: New Indebtedness Incurred This Month 25,634.04
Less: Amount Paid on Prior Accounts Payable 22,168.21
End of Month Balance $ 25,784.04
Secured: List the status of Payments to Secured Creditors and Lessors (Post
Petition Only)
Number Total
of Post Amount of
Secured Date Petition Post Petition
Creditor/ Payment Payment Payments Payments
Lessor Due Amount Delinquent Delinquent
None
<PAGE>
ATTACHMENT 3
Name of Debtor: Digital Products Corporation Case # 97-21987 BKC-RBR
Report Period Beginning 10/1/97 and Ending 10/31/97
INVENTORY REPORT
INVENTORY BALANCE AT PETITION DATE: $148,780.63
INVENTORY RECONCILIATION:
Inventory Balance at Beginning of Month $ 5,515.83
Inventory Purchased during Month 38,403.69
Inventory Used or Sold 31,356.68
Inventory on Hand at End of Month $ 12,562.84
METHOD OF COSTING INVENTORY: Inventory is stated at lower of cost or
market using first-in, first-out method in determining cost, and replacement
cost or net realizable value in determining market.
FIXED ASSETS FAIR MARKET VALUE AT PETITION DATE: $716,000
(Includes Property, Plant and Equipment)
BRIEF DESCRIPTION (First Report Only):
FIXED ASSETS RECONCILIATION:
Fixed Assets Book Value at Beginning of Month $842,927.91
Less: Depreciation Expense 34,963.00
Plus: New Purchases 1,515.00
Ending Monthly Balance $809,479.91
BRIEF DESCRIPTION OF FIXED ASSETS PURCHASED OR DISPOSED OF DURING THE
REPORTING PERIOD:
Computer $1,515.00
<PAGE>
ATTACHMENT 4
MONTHLY BANK RECONCILIATIONS
DEBTOR: Digital Products Corporation Case # 97 21987 BKC-RBR
Report Period Beginning: 10/1/97 Ending: 10/31/97
BANK: Comerica Bank & Trust BRANCH: Boca Raton
ACCT NAME: Digital Products Corporation
ACCT NUMBER: 1811006533
PURPOSE OF ACCOUNT: Operating Account
Beginning Balance $ 37,567.66
Total of Deposits Made 316,638.02
Total Amount of Checks/Wires 197,889.78
Service Charges 65.33
Transfers to Other Accounts 94,221.76
Closing Balance $ 62,028.81
Number of First Check Written This Period 1470
Number of Last Check Written This Period 1561
Total Number of Checks Written This Period 88
Total Number of Wire Transfers 1
Voided Checks This Period 3
Total 92
BANK: Comerica Bank & Trust BRANCH: Boca Raton
ACCT NAME: Digital Products Corporation
ACCT NUMBER: 1811006541
PURPOSE OF ACCOUNT: Payroll Account
Beginning Balance $ 360.30
Total of Deposits Made 62,959.95 Transfers in
Total Amount of Checks Written 62,653.26
Service Charges Payroll Depot 296.83
Service Charges 20.49
Transfers to Other Accounts 0.00
Closing Balance $ 349.67
Number of First Check Written This Period 459
Number of Last Check Written This Period 515
Total Number of Checks Written This Period 58
Plus Manual Checks 0
Total 58
Plus Direct Deposits 60 Items
Total 118 Items
<PAGE>
ATTACHMENT 4
MONTHLY BANK RECONCILIATION
DEBTOR: Digital Products Corporation Case # 97 21987 BKC-RBR
Report Period Beginning: 10/1/97 Ending: 10/31/97
BANK: Comerica Bank & Trust BRANCH: Boca Raton
ACCT NAME: Digital Products Corporation
ACCT NUMBER: 1811006558
PURPOSE OF ACCOUNT: Tax Account
Beginning Balance $ 498.77
Total of Deposits Made 31,261.81 Transfers in
Total Amount of Checks Written 31,542.89 Transfers out
Service Charges 16.96
Transfers to Other Accounts 0.00
Closing Balance $ 200.73
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation Case # 97-21987 BKC-RBR
Report Period Beginning: 10/1/97 And Ending: 10/31/97
NAME OF BANK: Comerica Bank & Trust
ACCOUNT NAME: Digital Products Corporation
ACCOUNT #: 1811006533
PURPOSE OF ACCOUNT: Operating Account
<TABLE>
<CAPTION>
Date Check # Payee Purpose Amount
<S> <C> <C> <C> <C>
10/2/97 1470 Telnet Data Group Inventory $ 66.25
10/6/97 1471 Rhino Technologies Subcontractors 666.00
10/1/97 1472 United Parcel Service Freight 2,762.72
10/1/97 1473 AFCO Insurance 5,911.29
10/1/97 1474 US Postmaster Postage 96.00
10/1/97 1475 Competatech, Inc. Training 206.25
10/1/97 1476 Charles P Nora Consulting 769.23
10/1/97 1477 United Parcel Service Freight 1,461.21
10/1/97 1478 Stor & Lock Storage 1,142.00
10/1/97 1479 American Stock Trans Transfer fees 1,600.00
10/2/97 1480 KBS, Inc Rent 5,000.00
10/2/97 1481 Charles P Nora Travel Expenses 823.27
10/2/97 1482 Pitney Bowes Supplies 13.54
10/2/97 1483 Jeffrey Serbin Inventory/Supplies 873.14
10/2/97 1484 Riscorp of Florida Workcomp 1,098.88
10/2/97 1485 Telogy Equipment Rent 131.44
10/2/97 1486 PaineWebber Mailing 76.44
10/2/97 1487 Reliance Standard Life Insurance 62.40
10/2/97 1488 Liberty Court Travel 1,079.00
10/3/97 1489 Bryan Brown Travel Expenses 46.94
10/3/97 1490 Victor Flores Programming 2,050.00
10/3/97 1491 American Design Co Subcontract 4,241.85
10/6/97 1492 Data Duplicating Corp. Freight 48.50
10/6/97 1493 Dadan Packaging Boxes 1,058.00
10/6/97 1494 Industrial Assembly Strap Kits 2,382.00
10/6/97 1495 Corporate Systems Group Software 116.60
10/6/97 1496 Telnet Data Group Inventory 47.00
10/6/97 1497 Advanced Pro. Tech. Rent 3,212.48
10/7/97 1498 Comp USA Printer Repairs 317.33
10/7/97 1499 Frank Garner Installer 375.00
10/7/97 1500 Albani Laporte III Installer 543.54
10/7/97 1501 Electronic Filings, Inc. Edgar filing 153.00
10/7/97 1502 LCI International Telephone 15,546.61
10/7/97 1503 Rhino Technologies Subcontractor 360.00
10/8/97 1504 Renata Batteries Batteries 2,911.81
10/8/97 1505 Dale Conrad Travel Expenses 5,439.48
10/9/97 1506 AT&T Credit Phone rent 6,107.76
10/9/97 1507 United Parcel Service Freight 23.00
10/9/97 1508 PageNet Pagers 233.29
10/9/97 1509 Virginia Riscorp Workcomp 22.16
10/9/97 1510 Telnet Data Group Inventory 1,777.75
</TABLE>
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation Case # 97-21987 BKC-RBR
Report Period Beginning: 10/1/97 And Ending: 10/31/97
NAME OF BANK: Comerica Bank & Trust
ACCOUNT NAME: Digital Products Corporation
ACCOUNT #: 1811006533
PURPOSE OF ACCOUNT: Operating Account
<TABLE>
<CAPTION>
Date Check # Payee Purpose Amount
<S> <C> <C> <C>
10/9/97 1511 LEP Profit Freight $ 240.00
10/10/97 1512 AT&T Telephone 88.07
10/10/97 1513 American Design Contract Labor 2,938.86
10/10/97 1514 United Parcel Service Freight 1,299.65
10/10/97 1515 US West Telephone 917.70
10/13/97 1516 Access 2000 Computer System 12,313.00
10/9/97 1517 USCF Loan Fees 500.00
1518 void -
10/14/97 1519 Richard Angulo Expenses 3,462.74
10/15/97 1520 Industrial Assembly Strap Kits 2,382.00
1521 void -
10/15/97 1522 Industrial Assembly Strap Kits 2,382.00
10/16/97 1523 Dale Conrad Travel Expenses 2,020.05
10/17/97 1524 Telogy Equipment Rent 57.05
10/17/97 1525 Rhino Technologies Subcontract 756.00
10/17/97 1526 Charles P Nora Consulting 730.00
10/17/97 1527 Telnet Data Group Inventory 2,867.00
10/20/97 1528 United Airlines Travel 1,435.67
10/20/97 1529 LCI International Telephone 13,320.26
10/20/97 1530 TCG Telephone 2,304.31
10/20/97 1531 United Parcel Service Freight 675.68
10/20/97 1532 Charles P Nora Travel 621.08
10/20/97 1533 Bryan Brown Travel 588.21
10/20/97 1534 American Design Co. Inc Subcontract 2,712.75
1535 void -
1536 open -
10/30/97 1537 PennWell Media Online Website Hosting 2,500.00
10/20/97 1538 Ken Virgillito Travel Expenses 825.64
10/20/97 1539 Albani Laporte III Installer 601.91
10/20/97 1540 Frank Garner Installer 325.00
10/20/97 1541 Dan Farley Installer 1,130.00
10/20/97 1542 Liberty Court Travel Travel 670.59
10/22/97 1543 Midwest Financial Airfare 576.10
10/22/97 1544 Holland & Knight Patent 1,650.00
10/22/97 1545 American Stock Transfer Transfer Fees 1,600.00
10/22/97 1546 Charles P Nora Consulting 380.00
10/22/97 1547 Memcon Advance SGSG 1,000.00
10/22/97 1548 Mike Luther Salary Advance 2,000.00
10/24/97 1549 Rhino Technologies Subcontractor 1,128.00
10/23/97 1550 Victor Flores Programming 3,825.00
10/24/97 1551 Telnet Data Group Inventory 4,304.00
10/27/97 1552 American Design Co. Subcontractor 2,931.70
10/30/97 1553 CA Board of Equal. Sales tax 545.00
10/30/97 1554 Annie Angulo Expense Reimburse 343.74
10/30/97 1555 Richard Angulo Expense Reimburse 1,684.24
</TABLE>
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation Case # 97-21987 BKC-RBR
Report Period Beginning: 10/1/97 And Ending: 10/31/97
NAME OF BANK: Comerica Bank & Trust
ACCOUNT NAME: Digital Products Corporation
ACCOUNT #: 1811006533
PURPOSE OF ACCOUNT: Operating Account
<TABLE>
<CAPTION>
Date Check # Payee Purpose Amount
<S> <C> <C> <C> <C>
10/30/97 1556 US Trustee Quarterly Fee $ 3,750.00
10/30/97 1557 Renata Batteries Batteries 3,025.20
10/30/97 1558 Telnet Data Group Inventory 2,310.00
10/30/97 1559 Jacque C Williams Shasta County tax 61.23
10/30/97 1560 Charles P Nora Consulting 780.00
10/30/97 cashier Corporate Systems Group
Computer System 31,612.96
10/31/97 1561 Triple S Transportation Freight 2,864.23
$197,889.78
</TABLE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Product Corporation Case #: 97-21987 BKC-RBR
Report Period Beginning: 10/1/97 and Ending: 10/31/97
NAME OF BANK: Comerica Bank & Trust
ACCOUNT NAME: Digital Products
ACCOUNT #: 1811005541
PURPOSE OF ACCOUNT: Payroll Account
<TABLE>
<CAPTION>
Date Check # Payee Purpose Amount
<S> <C> <C> <C> <C>
10/3/97 459-468+12 direct dep Employees Payroll $12,483.76
10/10/97 469-479+12 direct dep Employees Payroll 12,315.96
10/17/97 480-490+12 direct dep Employees Payroll 12,268.75
10/24/97 491-502+12 direct dep Employees Payroll 12,753.08
10/31/97 503-515+12 direct dep Employees Payroll 12,831.71
Sub Total Payroll Depot 62,653.26
October Payroll Depot Serv. Chg. 296.83
Grand Total $62,950.09
</TABLE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation Case # 97-21987 BKC - RBR
Report Period Beginning: 10/1/97 and Ending: 10/31/97
NAME OF BANK: Comerica Bank & Trust
ACCOUNT NAME: Digital Products Corporation
ACCOUNT #: 1811006558
PURPOSE OF ACCOUNT: Tax Account
<TABLE>
<CAPTION>
Date Check # Payee Purpose Amount
<S> <C> <C> <C> <C>
10/2/97 transfer Payroll Depot payroll taxes $ 6,756.45
10/9/97 transfer Payroll Depot payroll taxes 5,420.84
10/17/97 transfer Payroll Depot payroll taxes 5,335.55
10/23/97 transfer Payroll Depot payroll taxes 5,586.25
10/30/97 transfer Payroll Depot payroll taxes 8,162.72
$31,261.81
</TABLE>
<PAGE>
ATTACHMENT 6a
Monthly Tax Report
DEBTOR: Digital Products Corporation Case # 97-21987 BKC - RBR
Reporting Period Beginning: 10/1/97 and Ending: 10/31/97
TAXES PAID and ACCRUED DURING MONTH
Date Bank Description Amount
10/3/97 Comerica Bank FED WH $ 3,220.57
FICA 2,281.32
MEDICARE 587.05
FUTA 11.17
IN WH 62.77
NE WH 507.46
VA WH 28.18
FL SUTA 25.70
NE SUTA 32.20
$6,756.45
10/10/97 Comerica Bank FED WH $2,661.24
FICA 1,819.99
MEDICARE 479.15
FUTA 11.37
IN WH 62.77
NE WH 298.85
VA WH 28.18
FL SUTA 27.09
NE SUTA 32.20
$5,420.84
10/17/97 Comerica Bank FED WH $2,588.28
FICA 1,803.93
MEDICARE 475.49
FUTA 12.33
IN WH 62.77
NE WH 298.85
VA WH 28.18
FL SUTA 33.52
NE SUTA 32.20
$5,335.55
10/24/97 Comerica Bank FED WH $2,718.17
FICA 1,886.40
MEDICARE 494.72
FUTA 14.79
IN WH 62.77
NE WH 298.85
VA WH 28.18
FL SUTA 50.17
NE SUTA 32.20
$5,586.25
<PAGE>
ATTACHMENT 6a
Monthly Tax Report
DEBTOR: Digital Products Corporation Case #97-21987 BKC - RBR
Reporting Period Beginning: 10/1/97 and Ending: 10/31/97
TAXES PAID and ACCRUED DURING MONTH
Date Bank Description Amount
10/31/97 Comerica Bank FED WH $4,208.91
FICA 2,591.41
MEDICARE 659.60
FUTA 10.77
IN WH 62.77
NE WH 298.85
VA WH 265.68
FL SUTA 50.03
NE SUTA 14.70
$8,162.72
TOTAL $31,261.81
<PAGE>
ATTACHMENT 6b
DEBTOR: Digital Products Corporation Case #97-21987 BKC - RBR
Report Period Beginning: 10/1/97 and Ending: 10/31/97
TAXES OWED AND DUE
Report all unpaid post-petition taxes including Federal & State withholding,
FICA, state sales tax, property tax, unemployment taxes and State WC. Date
last tax returns filed 10/31/97. Period: 2nd Quarter returns
<TABLE>
<CAPTION>
Name of Taxing Date Payment Description Amount
Authority Due
<S> <C> <C> <C>
Fed Taxes 10/08/97 Fed WH/Fica/Medicare $6,088.97 Pd
Fed Taxes 10/16/97 Fed WH/Fica/Medicare 4,960.38 Pd
Fed Taxes 10/22/97 Fed WH/Fica/Medicare 4,867.70 Pd
Fed Taxes 10/29/97 Fed WH/Fica/Medicare 5,099.29 Pd
Fed Taxes 11/05/97 Fed WH/Fica/Medicare 7,459.92 Pd
FUTA 01/31/98 Fed unemployment tax 60.43
IN WH 01/31/98 IN WH 313.85
NE WH 01/31/98 NE WH 1,702.86
VA WH 01/31/98 VA WH 378.40
FL SUTA 01/31/98 FL unemployment 186.51
NE SUTA 01/31/98 NE unemployment 143.50
</TABLE>
<PAGE>
ATTACHMENT 7
SUMMARY OF PERSONNEL & INSURANCE COVERAGES
Name of Debtor: Digital Products Corporation Case #97-21987 BKC - RBR
Report Period Beginning: 10/1/97 and Ending 10/31/97
Report all compensation received during the month. Do not include
reimbursement for expenses incurred for which you have receipts.
Name of Officer: Title Amount Paid Travel Adv.
Richard Angulo Pres/COO $ 9,230.75 -
Michael Luther CEO/Chairman 11,538.50 -
Bryan Brown CFO/Secy 7,692.30 -
PERSONNEL REPORT
Full Time Part Time
Number of employees at beginning of period 21 2
Number hired during the period 3 -
Number converted to full time - -
Number terminated during the period 1 -
Number of employees on payroll at the end of period 22 2
CONFIRMATION OF INSURANCE
List all policies of insurance in effect, including but not limited to
workers' compensation, liability, fire, theft, comprehensive, vehicle, health
& life.
<TABLE>
<CAPTION>
Carrier Agent & Phone # Policy # Coverage Expiration Date
Type Date Premium
Due
<S> <C>
Riscorp of FL Alexander & Alex 12924 WC 4/1/98 11/2/97
305-279-7870
VA Riscorp Dade Underwriters 40076 WC 3/1/98 11/2/97
954-462-1304
Reliance Stand. Mahoney & Asso. MLTD097814 LTD 8/1/97 11/2/97
Life Insurance 954-763-7971
Gotham Ins. Seitlin Ins. MM014842LP296 Comp. Gen'l 6/1/98 11/1/97
305-591-0090 Liability
Nat'l Union Fire Seitlin Ins. BE9327676 Umbrella 6/1/98 11/1/97
Ins. Co. of Pitt. 305-591-0090 Liability
Pacific Ins. Co. Seitlin Ins. ZG0008872 Property 5/1/98 11/1/97
305-591-0090
Fidelity & Dep. Seitlin Ins. CCP0033867 Crime 5/1/98 11/1/97
305-591-0090
Mutual of Midwest Emp. Ben. 266 MBPT Health & Dental 10/1/98 11/1/97
Omaha
</TABLE>
ATTACHMENT 8
SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD
The Company filed its Plan of Reorganization and Disclosure Statement on June
16, 1997.
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