SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Commission File No.: 0-9503
Current Report
January 22, 1998
(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 November was filed with the Bankruptcy Court on January 26, 1998.
<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 12/1/97 TO 12/31/97
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: 12/1/97 and Ending: 12/31/97
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 $ 76,683.80 $ 60,846.09
2. Receipts:
A. Cash Sales - -
Less: Cash Refunds - -
Net Cash Sales - -
B. Collections on Post Petition A/R 364,777.65 1,767,615.04
C. Collections on Pre Petition A/R - 382,998.55
D. Other Receipts - 50,226.29
3. TOTAL RECEIPTS 364,777.65 2,200,839.88
4. TOTAL CASH AVAILABLE FOR
OPERATIONS (Line 1 + Line 3) 441,461.45 2,261,685.97
5. DISBURSEMENTS
A. U.S. Trustee Quarterly Fees - 7,500.00
B. Net Payroll 65,191.18 494,787.56
C. Payroll Taxes Paid 24,593.48 214,566.73
D. Sales and Use Taxes - -
E. Other Taxes - 10,057.85
F. Rent 6,000.00 52,084.71
G. Other Leases 11,338.64 59,495.74
H. Telephone 11,975.02 205,579.69
I. Utilities - -
J. Travel & Entertainment 18,317.33 111,127.19
K. Vehicle Expenses - -
L. Office Supplies 1,900.86 17,063.69
M. Advertising - 13,850.57
N. Insurance (Attachment 7) 11,784.39 98,871.08
O. Purchases of Fixed Assets 2,037.00 61,824.62
P. Purchases of Inventory 95,744.38 267,673.36
Q. Manufacturing Supplies - -
R. Repairs and Maintenance 89.06 1,559.21
S. Payments to Secured Creditors - -
T. Other Operating Expenses 45,884.98 499,038.84
(Attach List)
6. TOTAL CASH DISBURSEMENTS 294,856.32 2,115,080.84
7. ENDING CASH BALANCE
(LINE 4 - LINE 6) $ 146,605.13 $ 146,605.13
</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 22 day of January 1997.
<PAGE>
Monthly Financial Report for Business
For the Period Beginning: 12/1/97 and Ending: 12/31/97
Name of Debtor: Digital Products Corporation
Case Number 97-21987 BKC RBR
Date of Petition: 4/3/97
<TABLE>
<CAPTION>
Current Cumulative
OTHER RECEIPTS Month Petition 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 - 2,357.37
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
$ 0 $ 50,226.29
</TABLE>
<PAGE>
Monthly Financial Report for Business
For the Period Beginning: 12/1/97 and Ending: 12/31/97
Name of Debtor: Digital Products Corporation
Case Number 97-21987 BKC RBR
Date of Petition: 4/3/97
<TABLE>
<CAPTION>
Current Cumulative
OTHER OPERATING EXPENSES Month Petition to Date
<S> <C> <C>
Tax Acct Bank Charge Service Charges 15.17 179.20
Barnett Bank Bank Charge Wire Transfer Fees - 75.00
Operating Acct Bank Charge Service Charges 102.50 616.54
Payroll Acct Bank Charges Service Charges 18.36 168.31
Kinko's Copies for Tracking - 654.67
Postage Next Day Mailing - 56.75
Subcontractors Installers 2,740.22 25,196.00
Corporate License Fees - 330.00
Computer Programmer 2,537.50 37,737.98
Subcontractors Labor 13,823.36 89,318.19
Freight 2,326.87 67,119.79
Transfer Agent/Other 1,771.00 28,724.25
Patent Renewals - 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 Consult/Comm 1,750.00 8,250.00
Various Network Support 4,900.00 10,534.33
Various Move Expense - 7,006.60
SGSG Advance - 18,786.09
Competatech/Others Training 300.00 2,131.45
Employees Mileage - 168.44
Employees 125s Reimbursement - 2,588.00
Corporate Systems CCSN Deposit - 61,612.96
Mike Luther Expense Advance - 6,206.10
Peggy Conway Expense Advance 2,000.00 2,000.00
USCF Fees - 500.00
Various Deposits - 40,500.00
EMS Commission - 2,843.25
Bank of Kaukauna Utah lease - 15,044.63
Argentina Consultants Consulting 13,600.00 13,600.00
Total $ 45,884.98 $499,038.84
</TABLE>
ATTACHMENT 1
MONTHLY ACCOUNTS RECEIVABLE AGING AND RECONCILIATION
Name of Debtor: Digital Products Corporation
Case Number: 97-21987 BKC RBR
Reporting Period Beginning: 12/1/97 and Ending: 12/31/97
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 $ 595,689.32
Plus: Current Month New Billings 359,164.80
Less: Collections during the Month 364,777.65
End of Month Balance $ 590,076.47
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
$151,480.32 78,138.69 40,132.23 205,664.18 $ 475,415.42
<PAGE>
ATTACHMENT 2
MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT
Name of Debtor: Digital Products Corporation
Case # 97-21987 BKC-RBR
Reporting Period Beginning 12/1/97 and Ending 12/31/97
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 150.00dispute
10-Dec-97 21 LCI International Telephone 15,000.00
30-Dec-97 2 PageNet Pagers 263.81
31-Dec-97 1 American Design Subcontractor 1,742.59
21-Dec-97 10 United Parcel Service Freight 19.53
30-Dec-97 1 United Parcel Service Freight 1,052.98
31-Dec-97 1 Frank Garner Installer 280.00
31-Dec-97 1 Albani Laporte III Installer 619.68
$19,628.59
</TABLE>
ACCOUNTS PAYABLE RECONCILIATION (Post Petition Only):
Opening Balance (total from prior report) $ 10,101.10
Plus: New Indebtedness Incurred This Month 19,478.59
Less: Amount Paid on Prior Accounts Payable 9,951.10
End of Month Balance $ 19,628.59
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 12/1/97 and Ending 12/31/97
INVENTORY REPORT
INVENTORY BALANCE AT PETITION DATE: $148,780.63
INVENTORY RECONCILIATION:
Inventory Balance at Beginning of Month $ 12,805.09
Inventory Purchased during Month 95,744.38
Inventory Used or Sold 22,649.57
Inventory on Hand at End of Month $ 85,899.90
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 $ 786,451.29
Less: Depreciation Expense 34,963.00
Plus: New Purchases 2,037.00
Ending Monthly Balance $ 753,525.29
BRIEF DESCRIPTION OF FIXED ASSETS PURCHASED OR DISPOSED OF DURING THE
REPORTING PERIOD:
Computer software $ 2,037.00
<PAGE>
ATTACHMENT 4
MONTHLY BANK RECONCILIATIONS
DEBTOR: Digital Products Corporation
Case # 97 21987 BKC-RBR
Report Period Beginning: 12/1/97 Ending: 12/31/97
BANK: Comerica Bank & Trust BRANCH: Boca Raton
ACCT NAME: Digital Products Corporation
ACCT NUMBER: 1811006533
PURPOSE OF ACCOUNT: Operating Account
Beginning Balance $ 76,167.58
Total of Deposits Made 364,777.65
Total Amount of Checks/Wires 216,387.65
Service Charges 102.50
Transfers to Other Accounts 78,355.90
Closing Balance $146,099.18
Number of First Check Written This Period 1653
Number of Last Check Written This Period 1743
Total Number of Checks Written This Period 88
Total Number of Wire Transfers 5
Voided Checks This Period 6
Total 99
BANK: Comerica Bank & Trust BRANCH: Boca Raton
ACCT NAME: Digital Products Corporation
ACCT NUMBER: 1811006541
PURPOSE OF ACCOUNT: Payroll Account
Beginning Balance $ 331.24
Total of Deposits Made 53,739.16 Transfers in
Total Amount of Checks Written 53,509.61
Service Charges Payroll Depot 229.55
Service Charges 18.36
Transfers to Other Accounts 0.00
Closing Balance $ 312.88
Number of First Check Written This Period 565
Number of Last Check Written This Period 612
Total Number of Checks Written This Period 48
Plus Manual Checks 0
Total 48
Plus Direct Deposits 49 Items
Total 97 Items
<PAGE>
ATTACHMENT 4
MONTHLY BANK RECONCILIATION
DEBTOR: Digital Products Corporation
Case # 97 21987 BKC-RBR
Report Period Beginning: 12/1/97 Ending: 12/31/97
BANK: Comerica Bank & Trust BRANCH: Boca Raton
ACCT NAME: Digital Products Corporation
ACCT NUMBER: 1811006558
PURPOSE OF ACCOUNT: Tax Account
Beginning Balance $ 184.98
Total of Deposits Made 24,640.00 Transfers in
Total Amount of Checks Written 24,616.74 Transfers out
Service Charges 15.17
Transfers to Other Accounts 0.00
Closing Balance $ 193.07
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation
Case # 97-21987 BKC-RBR
Report Period Beginning: 12/1/97 And Ending: 12/31/97
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>
1643 Void $ -
12/3/97 1644 Renatta Batteries Batteries 3,049.70
12/11/97 1645 Richard Angulo Comm., travel, etc. 16,000.00
12/1/97 1653 Self Storage, Inc Storage 1,142.00
12/1/97 1654 AFCO Insurance Insurance 5,911.29
12/1/97 1655 Midwest Emp. Ben. Insurance 2,514.27
12/1/97 1656 Reliance Standard Insurance 41.59
1657 Void -
1658 Void -
12/3/97 wire Charles Nora Contractor 769.00
12/3/97 1659 US West Telephone 1,522.76
12/4/97 1660 Frank Garner Installer 230.00
12/4/97 1661 Albani LaPorte III Installer 374.78
12/4/97 1662 Subway Lunch Meeting 16.76
12/4/97 1663 American Design Co, Inc. Contract Labor 3,325.07
12/5/97 1664 KBS, Inc. Rent 5,000.00
12/5/97 1665 US Postmaster Stamps 96.00
12/8/97 1666 AT&T Credit Phone Rent 3,053.88
12/8/97 1667 Telnet Data Group Parts 334.00
12/8/97 1668 Industrial Assembly Straps 2,382.00
12/9/97 1669 Charles P Nora Contractor 145.00
12/9/97 1670 Carnotel Phones 1,539.64
1671 Void -
12/9/97 1672 PageNet Pagers 233.29
12/9/97 1673 United Parcel Service Freight 475.56
12/10/97 1674 Industrial Assembly Straps 2,382.00
12/10/97 1675 Renata Batteries Batteries 2,993.31
12/10/97 1676 Precision Dynamics Wristlet Straps 316.90
12/11/97 1677 Revelation Software Software 2,037.00
12/11/97 1678 Bryan Brown Office Supplies 110.73
12/12/97 1679 Gevalia Kaffe Supplies 10.00
12/12/97 1680 Corporate Systems Network Support 4,900.00
12/12/97 1681 APT, Inc. Rent 6,511.32
12/22/97 1682 Telnet Data Group Parts 923.00
12/22/97 1683 Industrial Assembly Straps 2,382.00
12/12/97 1684 Electronic Filings Filing 8k 171.00
12/12/97 1685 United Parcel Service Freight 419.38
12/12/97 1686 American Stock Transfer Fees 1,600.00
12/12/97 1687 American Design Co. Contract Labor 2,140.03
12/12/97 1688 Mike Luther Net pay 814.70
12/12/97 wire Peggy Conway Net pay/expenses 1,247.50
1689 void -
12/12/97 1690 Judy Sundberg Expenses 2,687.20
12/15/97 1691 Liberty Court Airfare/subcontract 1,463.00
</TABLE>
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation
Case # 97-21987 BKC-RBR
Report Period Beginning: 12/1/97 And Ending: 12/31/97
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>
12/15/97 wire Doug Hogmire Net pay $ 559.46
12/16/97 1692 Victor Flores Programming 2,537.50
12/16/97 1693 Charles P Nora Contractor/expenses 291.71
12/16/97 1694 Telnet Data Group Parts 23.25
12/16/97 1695 Liberty Court Travel Airfare 2,977.39
12/16/97 1696 Virginia Riscorp Workcomp 22.24
12/16/97 1697 Percival Leach Travel Expenses 7,039.00
12/16/97 1698 Telogy Equipment rent 131.44
12/16/97 1699 HiTech Courier Delivery 65.00
12/16/97 1700 TCG Telephone 2,310.77
12/16/97 1701 Key Leasing Furniture 500.00
12/16/97 1702 Dadan Packaging Boxes 288.00
12/16/97 1703 Telnet Data Group Parts 799.45
12/17/97 1704 Data Duplicating Corp. Freight 21.00
12/17/97 1705 DHL Freight 77.80
12/17/97 1706 Albani LaPorte III Installer 665.44
12/17/97 1707 Frank Garner Installer 500.00
12/18/97 1708 Doug Hogmire Travel expenses 1,053.05
12/18/97 1709 Dan Farley Installer 970.00
12/18/97 1710 Quiznos Lunch meeting 69.28
12/18/97 1711 Peggy Conway Expenses 339.12
12/18/97 1712 Judy Sundberg Expenses 273.68
12/18/97 1713 Colleen McCoy Airfare 502.00
12/19/97 1714 Harry Koch Co Workcomp 939.00
12/19/97 1715 Telnet Data Group Parts 1,002.00
12/19/97 1716 Dadan Packaging Packaging 1,058.00
1717 void -
12/19/97 1718 Judy Sundberg Expenses 21.51
12/19/97 1719 Acme Typewriter Repairs 89.06
12/19/97 1720 Competatech Training 300.00
12/19/97 1721 United Parcel Service Freight 585.62
12/19/97 1722 American Design Contract Labor 2,240.47
12/19/97 1723 Penny Woods Expenses 50.00
12/19/97 1724 Wausau Insurance Workcomp 2,356.00
12/19/97 wire Travis Snellings Consulting 500.00
12/22/97 1725 Jeff Serbin Supplies 73.77
12/22/97 1726 Charles Nora Contractor 180.00
12/22/97 1727 Dadan Packaging Packaging 75.00
12/22/97 1728 Gard Dist. Co. Parts 127.00
12/22/97 1729 Mike Luther Expenses 1,229.60
12/22/97 1730 Penny Woods Expenses 69.44
12/23/97 1731 Percival Leach Consulting fee 12,600.00
12/23/97 1732 American Design Contract Labor 2,112.59
12/23/97 1733 Liberty Court Travel Airfare 890.00
12/29/97 1734 Ken Virgillito Office Supplies 87.60
</TABLE>
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation
Case # 97-21987 BKC-RBR
Report Period Beginning: 12/1/97 And Ending: 12/31/97
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>
12/29/97 1735 Charles Nora Contractor $ 829.00
12/29/97 1736 Keith Lyttle Expenses 100.00
12/29/97 1737 Peggy Conway Expense advance 2,000.00
12/30/97 1738 Nextel Phones 1,339.86
12/30/97 1739 Memcon Office rent 1,000.00
12/30/97 1740 Telnet Data Group Parts 2,535.00
12/30/97 1741 US West Telephone 2,238.42
12/30/97 1742 United Parcel Service Freight 747.51
12/30/97 1743 Doug Hogmire Expenses 728.96
12/30/97 wire KBS, Inc. Inventory 75,000.00
$216,387.65
</TABLE>
<PAGE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Product Corporation
Case #: 97-21987 BKC-RBR
Report Period Beginning: 12/1/97 and Ending: 12/31/97
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>
12/5/97 565-576+11 direct dep Employees Payroll $ 13,746.15
12/12/97 577-588+13 direct dep Employees Payroll 12,174.15
12/19/97 589-600+13 direct dep Employees Payroll 13,986.66
12/26/97 601-612+12 direct dep Employees Payroll 13,832.20
Sub Total Payroll 53,739.16
December Payroll Depot Serv. Chg. 229.55
Grand Total $ 53,968.71
</TABLE>
ATTACHMENT 5
CHECK REGISTER
DEBTOR: Digital Products Corporation
Case # 97-21987 BKC - RBR
Report Period Beginning: 12/1/97 and Ending: 12/31/97
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>
12/4/97 transfer Payroll Depot payroll taxes $ 6,030.62
12/11/97 transfer Payroll Depot payroll taxes 4,960.57
12/18/97 transfer Payroll Depot payroll taxes 7,407.15
12/29/97 transfer Payroll Depot payroll taxes 6,218.40
$24,616.74
</TABLE>
<PAGE>
ATTACHMENT 6a
Monthly Tax Report
DEBTOR: Digital Products Corporation
Case # 97-21987 BKC - RBR
Reporting Period Beginning: 12/1/97 and Ending: 12/31/97
<TABLE>
<CAPTION>
TAXES PAID and ACCRUED DURING MONTH
Date Bank Description Amount
<S> <C> <C> <C>
12/4/97 Comerica Bank FED WH $ 2,981.99
FICA 2,048.47
MEDICARE 532.53
FUTA 9.33
IN WH 62.77
NE WH 332.57
FL SUTA 62.96
$ 6,030.62
12/11/97 Comerica Bank FED WH $ 2,359.83
FICA 1,741.68
MEDICARE 460.88
FUTA 11.84
IN WH 62.77
NE WH 243.58
FL SUTA 79.89
$ 4,960.47
12/18/97 Comerica Bank FED WH $ 3,637.50
FICA 2,495.73
MEDICARE 637.27
FUTA 22.68
IN WH 62.77
MN WH 34.61
NE WH 392.60
FL SUTA 109.45
MN SUTA 14.54
$ 7,407.15
12/29/97 Comerica Bank FED WH $ 3,081.83
FICA 2,076.02
MEDICARE 539.07
FUTA 17.17
IN WH 62.77
MN WH 22.15
NE WH 332.57
FL SUTA 72.28
MN SUTA 14.54
$ 6,218.40
Total $24,616.74
</TABLE>
<PAGE>
ATTACHMENT 6b
DEBTOR: Digital Products Corporation
Case # 97-21987 BKC - RBR
Report Period Beginning: 12/1/97 and Ending: 12/31/97
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: 3rd Quarter returns
<TABLE>
<CAPTION>
Name of Taxing Date Payment Description Amount
Authority Due
<S> <C> <C> <C>
Fed Taxes 12/10/97 Fed WH/Fica/Medicare $ 5,562.99 Pd
Fed Taxes 12/17/97 Fed WH/Fica/Medicare 4,562.49 Pd
Fed Taxes 12/24/97 Fed WH/Fica/Medicare 6,770.50 Pd
Fed Taxes 12/31/97 Fed WH/Fica/Medicare 5,696.92 Pd
FUTA 01/31/98 Fed unemployment tax 175.04
IN WH 01/31/98 IN WH 878.78
MN WH 01/31/98 MN WH 56.76
NE WH 01/31/98 NE WH 4,334.46
VA WH 01/31/98 VA WH 671.97
FL SUTA 01/31/98 FL unemployment 725.09
MN SUTA 01/31/98 MN Unemployment 29.08
NE SUTA 01/31/98 NE unemployment 239.24
</TABLE>
<PAGE>
ATTACHMENT 7
SUMMARY OF PERSONNEL & INSURANCE COVERAGES
Name of Debtor: Digital Products Corporation
Case # 97-21987 BKC - RBR
Report Period Beginning: 12/1/97 and Ending 12/31/97
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 $ 16,490.96 $ -
Michael Luther CEO/Chairman 9,230.80 -
Bryan Brown CFO/Secy 6,153.84 -
PERSONNEL REPORT
Full Time Part Time
Number of employees at beginning of period 20 1
Number hired during the period 3 -
Number converted to full time - -
Number terminated during the period - -
Number of employees on payroll at the end
of period 23 1
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> <C> <C> <C> <C>
Riscorp of FL Alexander & Alex 12924 WC 4/1/98 1/2/98
305-279-7870
VA Riscorp Dade Underwriters 40076 WC 3/1/98 1/2/98
954-462-1304
Reliance Stand.Mahoney & Asso. LTD097814 LTD 8/1/97 1/2/98
Life Insurance 954-763-7971
Gotham Ins. Seitlin Ins. MM014842LP296 Comp Gen'l 6/1/98 1/2/98
305-591-0090 Liability
Nat'l Union Seitlin Ins. BE9327676 Umbrella 6/1/98 1/2/98
Fire Ins. Co. 305-591-0090 Liability
of Pitt.
Pacific Ins. Seitlin Ins. ZG0008872 Property 5/1/98 1/2/98
Co. 305-591-0090
Fidelity & Seitlin Ins. CCP0033867 Crime 5/1/98 1/2/98
Dep. 305-591-0090
Mutual of Midwest Emp. Ben. 266 MBPT Health & 10/1/98 1/2/98
Omaha Dental
</TABLE>
<PAGE>
ATTACHMENT 8
SIGNIFICANT DEVELOPMENTS DURING REPORTING PERIOD
The Company filed its Plan of Reorganization and Disclosure Statement on June
16, 1997.
