<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)
SCAN-OPTICS, INC.
----------------------------
(Name of Issuer)
Common Stock, par value $.02
------------------------------------
(Title of Class of Securities)
805894102
----------------------------
(CUSIP Number)
Walter J. Schloss
Walter & Edwin Schloss Associates, L.P.*
52 Vanderbilt Avenue
New York, New York 10017
(212) 370-1844
----------------------------
(Name, Address and Telephone Number
of Person Authorized to Receive
Notices and Communications)
February 4, 1997
----------------------------
(Date of Event Which Requires Filing
of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
- --------
* formerly known as Walter J. Schloss Associates
<PAGE> 2
<TABLE>
<S> <C>
CUSIP NO. 805904102
---------
- ------------------------------------------------------------------------------------------------------
1) Name of Reporting Person Walter & Edwin Schloss
S.S. or I.R.S. Identifica- Associates, L.P.
tion No. of Above Person Employer I.D. No. 13-6065556
- ------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box (a)
if a Member of a Group -----------------------------------
(See Instructions) (b) X
-----------------------------------
- ------------------------------------------------------------------------------------------------------
3) SEC Use Only
- ------------------------------------------------------------------------------------------------------
4) Source of Funds (See
Instructions) WC
- ------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal
Proceedings is Required Pur-
suant to Items 2(d) or 2(e)
- ------------------------------------------------------------------------------------------------------
6) Citizenship or Place of Delaware
Organization
- ------------------------------------------------------------------------------------------------------
(7) Sole Voting Power 791,600 shares
Number of ------------------------------------------------------------------------
Shares Bene- (8) Shared Voting
ficially Power -0-
Owned by ------------------------------------------------------------------------
Each Report- (9) Sole Dispositive
ing Person Power 791,600 shares
With ------------------------------------------------------------------------
(10) Shared Dispositive
Power -0-
------------------------------------------------------------------------
11) Aggregate Amount Beneficially
Owned by Each Reporting Person 791,600 shares
- ------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount
in Row (11) Excludes Certain
Shares (See Instructions)
- ------------------------------------------------------------------------------------------------------
13) Percent of Class Represented
by Amount in Row (11) 12.1%(1)
- ------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See
Instructions) PN
- ------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------
(1) Based on total outstanding shares of 6,533,230 of Common Stock, $.02
par value ("Common Stock") as reported in the Company's unaudited
Consolidated Statement of Operations for the quarter ended September
30, 1996.
Page 2 of 8 Pages
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<TABLE>
<S> <C>
CUSIP NO. 805894102
---------
- ------------------------------------------------------------------------------------------------------
1) Name of Reporting Person Walter J. Schloss
S.S. or I.R.S. Identifica- Soc. Sec. No. ###-##-####
tion No. of Above Person
- ------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box (a)
if a Member of a Group -----------------------------------
(See Instructions) (b) X
-----------------------------------
- ------------------------------------------------------------------------------------------------------
3) SEC Use Only
- ------------------------------------------------------------------------------------------------------
4) Source of Funds (See
Instructions) PF
- ------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal
Proceedings is Required Pur-
suant to Items 2(d) or 2(e)
- ------------------------------------------------------------------------------------------------------
6) Citizenship or Place of
Organization United States
- ------------------------------------------------------------------------------------------------------
(7) Sole Voting Power 17,000 shares
Number of -------------------------------------------------------------------------
Shares Bene- (8) Shared Voting
ficially Power 791,600 shares (1)
Owned by -------------------------------------------------------------------------
Each Report- (9) Sole Dispositive
ing Person Power 17,000 shares
With -------------------------------------------------------------------------
(10) Shared Dispositive
Power 828,600 shares(1,2)
- ------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially
Owned by Each Reporting Person 808,600 shares(1)
- -------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount
in Row (11) Excludes Certain
Shares (See Instructions) X
- ------------------------------------------------------------------------------------------------------
13) Percent of Class Represented
by Amount in Row (11) 12.4%
- ------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See
Instructions) IN
- ------------------------------------------------------------------------------------------------------
</TABLE>
- ----------------------------
(1) Includes 791,600 shares owned by Walter & Edwin Schloss Associates,
L.P. ("Associates"), of which Schloss Management Company
("Management") is the general partner. Walter J. Schloss is one of the
general partners of Management. By reason of his capacity as general
partner of Management, Walter J. Schloss may be deemed to have shared
dispositive power and shared voting power of such shares.
(2) Includes 20,000 shares held in accounts of clients of Walter Schloss,
with respect to which he may from time to time possess certain indicia
of investment discretion, but as to which he has no voting power and
he disclaims beneficial ownership.
Page 3 of 8 Pages
<PAGE> 4
<TABLE>
<S> <C>
CUSIP NO. 805894102
---------
- ------------------------------------------------------------------------------------------------------
1) Name of Reporting Person Edwin W. Schloss
S.S. or I.R.S. Identifica- Soc. Sec. No. ###-##-####
tion No. of Above Person
- ------------------------------------------------------------------------------------------------------
2) Check the Appropriate Box (a)
if a Member of a Group -----------------------------------
(See Instructions) (b) X
-----------------------------------
- ------------------------------------------------------------------------------------------------------
3) SEC Use Only
- ------------------------------------------------------------------------------------------------------
4) Source of Funds (See
Instructions) PF
- ------------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal
Proceedings is Required Pur-
suant to Items 2(d) or 2(e)
- ------------------------------------------------------------------------------------------------------
6) Citizenship or Place of United States
Organization
- ------------------------------------------------------------------------------------------------------
(7) Sole Voting Power 44,200 shares
Number of ------------------------------------------------------------------------
Shares Bene- (8) Shared Voting
ficially Power 835,800 shares(1)
Owned by ------------------------------------------------------------------------
Each Report- (9) Sole Dispositive
ing Person Power 44,200 shares
With ------------------------------------------------------------------------
(10) Shared Dispositive
Power 835,800 shares(1)
- ------------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially
Owned by Each Reporting Person 835,800 shares(1)
- -------------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount
in Row (11) Excludes Certain
Shares (See Instructions) X
- ------------------------------------------------------------------------------------------------------
13) Percent of Class Represented
by Amount in Row (11) 12.8%
- ------------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See
Instructions) IN
- ------------------------------------------------------------------------------------------------------
</TABLE>
- -----------------------------
(1) Includes 791,600 shares owned by Associates of which Management is the
general partner. Edwin W. Schloss is one of the general partners of
Management. By reason of his capacity as general partner of
Management, Edwin W. Schloss may be deemed to have shared dispositive
power and shared voting power of such shares.
Page 4 of 8 Pages
<PAGE> 5
INTRODUCTORY STATEMENT
On September 8, 1989, there was filed with the Securities and
Exchange Commission a Statement on Schedule 13D (the "Original Statement")
relating to shares of Common Stock, par value $.02 per share (the "Common
Stock"), of Scan-Optics, Inc. (the "Company"), beneficially owned by Walter &
Edwin Schloss Associates, L.P. (formerly known as Walter J. Schloss Associates)
("Associates"), Walter J. Schloss and Edwin W. Schloss. Associates, Walter J.
Schloss and Edwin W. Schloss filed Amendment No. 1 to the Original Statement
("Amendment No. 1") on May 24, 1994, and Amendment No. 2 to the Original
Statement on December 22, 1995 ("Amendment No. 2"; the Original Statement,
Amendment No. 1 and Amendment No. 2 are collectively referred to as the
"Statement"). All capitalized terms used herein and not otherwise defined
herein shall have the same respective meanings as used in the Statement.
This Amendment No. 3 is being filed to report the disposition
by Associates of shares of Common Stock of the Company. The Statement is hereby
amended as follows:
Item 5. Interest in Securities of the Issuer.
Item 5 of the Statement is hereby amended and restated as
follows:
(a) As of the date hereof, Associates beneficially owns
directly 791,600 shares of Common Stock (the "Partnership Shares"), which
constitutes approximately 12.1% of the outstanding shares of Common Stock of
the Company. Walter J. Schloss and Edwin W. Schloss are general partners of
Management, the general partner of Associates. Walter J. Schloss has a 12.5%
interest in the profits of Associates due to his general partner interest and a
12.761% interest in the profits of Associates due to his limited partnership
interests in Associates. Therefore, Walter J. Schloss has a 25.261% pecuniary
interest in such shares. Edwin Schloss has a 12.5% interest in the profits of
Associates due to his general partner interest and a 1.576% interest in the
profits of Associates due to his limited partnership interests in Associates.
Therefore, Edwin Schloss has a 14.076% pecuniary interest in such shares.
As of the date hereof, and subject to the limitations of his
pecuniary interest in such shares as described above, Walter J. Schloss
beneficially owns 808,600 shares (including the shares owned by Associates) of
Common Stock, which constitutes approximately 12.4% of the outstanding shares
of Common Stock.
As of the date hereof, and subject to the limitations of his
pecuniary interest in such shares as described above, Edwin W. Schloss
beneficially owns 835,800 shares (including
Page 5 of 8 Pages
<PAGE> 6
the shares owned by Associates) of Common Stock, which constitutes
approximately 12.8% of the outstanding shares of Common Stock.
In addition, Walter J. Schloss and Edwin Schloss provide
investment advice in the ordinary course of business to clients. Walter J.
Schloss and Edwin W. Schloss may, at any given time or from time to time,
possess certain indicia of investment discretion with respect to shares of
Common Stock held in the accounts of their respective clients, but as to which
neither Walter J. Schloss nor Edwin W. Schloss have any voting powers. The
filing of this Statement should not be deemed an admission that either Walter
J. Schloss or Edwin W. Schloss was the beneficial owner of the shares of Common
Stock held in said client accounts.
(b) Associates has sole power to vote and dispose of the
Partnership Shares, except that Walter J. Schloss and Edwin W. Schloss, solely
by reason of their positions as general partners of Management, the general
partner of Associates, may be deemed to have shared power to vote and dispose
of the Partnership Shares.
Walter J. Schloss and Edwin W. Schloss each have sole power
to vote and dispose of the shares of Common Stock beneficially owned directly
by them.
(c) Information with respect to all transactions in Common
Stock effected by Associates during the period beginning 60 days prior to the
date hereof are as follows:
<TABLE>
<CAPTION>
DATE SHARES SOLD PER SHARE PRICE
<S> <C> <C>
1/10/97 1,400 $7.50
1/13/97 60,000 $8.07
2/3/97 2,000 $8.00
2/4/97 11,000 $8.295
</TABLE>
All such transactions were open market transactions, and Associates paid normal
and customary brokerage commissions in connection with such transactions..
(d) To the best knowledge of Associates, no person other than
Associates has the right to receive or the power to direct the receipt of,
dividends from, or the proceeds from the sale of, the Partnership Shares,
except that Walter J. Schloss and Edwin W. Schloss may be deemed to have such
rights and powers solely by reason of being general partners of Management, the
general partner of Associates.
To the best knowledge of Walter J. Schloss and Edwin W.
Schloss, respectively, each person maintaining an investment advisory account
with him has the sole right to receive or
Page 6 of 8 Pages
<PAGE> 7
the power to direct the receipt of dividends from, or proceeds from the sale
of, the shares of Common Stock held in said person's account.
(e) Not Applicable.
Page 7 of 8 Pages
<PAGE> 8
SIGNATURE
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
/S/ WALTER J. SCHLOSS
---------------------------------------
Walter J. Schloss
/S/ EDWIN W. SCHLOSS
---------------------------------------
Edwin W. Schloss
WALTER & EDWIN SCHLOSS ASSOCIATES,
L.P.
By Schloss Management Company,
General Partner
By:/S/ WALTER J. SCHLOSS
------------------------------------
Walter J. Schloss, General
Partner
By:/S/ EDWIN W. SCHLOSS
------------------------------------
Edwin W. Schloss, General
Partner
Page 8 of 8 Pages
