<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)
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)
SEPTEMBER 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
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<TABLE>
<CAPTION>
CUSIP NO. 805904102
<S> <C>
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 (b) X
-------------------------
(SEE INSTRUCTIONS)
- --------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------
Number of (7) SOLE VOTING POWER 525,000 SHARES
Shares Bene- -----------------------------------------------------------------------
ficially (8) Shared Voting
Owned by POWER -0-
Each Report- -----------------------------------------------------------------------
ing Person (9) Sole Dispositive
With POWER 525,000 SHARES
-----------------------------------------------------------------------
(10) Shared Dispositive
POWER -0-
-----------------------------------------------------------------------
11) Aggregate Amount Beneficially
OWNED BY EACH REPORTING PERSON 525,000 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) 7.5%(1)
- --------------------------------------------------------------------------------------------
14) Type of Reporting Person (See
INSTRUCTIONS) PN
- --------------------------------------------------------------------------------------------
</TABLE>
__________________
(1) Based on total outstanding shares of 6,988,218 of Common Stock, $.02
par value ("Common Stock") as reported in the Company's Proxy
Statement, dated April 14, 1997.
Page 2 of 8 Pages
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<TABLE>
<CAPTION>
CUSIP NO. 805894102
<S> <C>
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 (b) X
-------------------------
(SEE INSTRUCTIONS)
- --------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------
Number of (7) SOLE VOTING POWER 17,000 SHARES
Shares Bene- -----------------------------------------------------------------------
ficially (8) Shared Voting
Owned by
Each Report- POWER 525,000 SHARES(1)
ing Person -----------------------------------------------------------------------
With (9) Sole Dispositive
POWER 17,000 SHARES
-----------------------------------------------------------------------
(10) Shared Dispositive
POWER 562,000 SHARES(1,2)
- --------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially
OWNED BY EACH REPORTING PERSON 542,000 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) 7.8%
- --------------------------------------------------------------------------------------------
14) Type of Reporting Person (See
INSTRUCTIONS) IN
- --------------------------------------------------------------------------------------------
</TABLE>
______________
(1) Includes 525,000 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>
<TABLE>
<CAPTION>
CUSIP NO. 805894102
<S> <C>
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 (b) X
-------------------------
(SEE INSTRUCTIONS)
- --------------------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------------------
Number of (7) SOLE VOTING POWER 30,000 SHARES
Shares Bene- -----------------------------------------------------------------------
ficially (8) Shared Voting
Owned by
Each Report- POWER 525,000 SHARES(1)
ing Person -----------------------------------------------------------------------
With (9) Sole Dispositive
POWER 30,000 SHARES
-----------------------------------------------------------------------
(10) Shared Dispositive
POWER 555,000 SHARES(1)
- --------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially
OWNED BY EACH REPORTING PERSON 555,000 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) 7.9%
- --------------------------------------------------------------------------------------------
14) Type of Reporting Person (See
INSTRUCTIONS) IN
- --------------------------------------------------------------------------------------------
</TABLE>
_____________
(1) Includes 525,000 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>
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, Amendment No. 2
to the Original Statement on December 22, 1995 ("Amendment No. 2"), Amendment
No. 3 to the Original Statement on February 4, 1997 ("Amendment No. 3), and
Amendment No. 4 to the Original Statement on August 19, 1997 ("Amendment
No. 4"); the Original Statement, Amendment No. 1, Amendment No. 2, Amendment
No. 3 and Amendment No. 4 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. 5 is being filed to report the disposition by
Associates and by Edwin Schloss 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
525,000 shares of Common Stock (the "Partnership Shares"), which constitutes
approximately 7.5% 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 12.250% interest
in the profits of Associates due to his limited partnership interests in
Associates. Therefore, Walter J. Schloss has a 24.75% 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 1.777% interest in the profits of Associates
due to his limited partnership interests in Associates. Therefore, Edwin Schloss
has a 14.277% 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 542,000 shares (including the shares owned by Associates) of
Common Stock, which constitutes approximately 7.8% of the outstanding shares of
Common Stock.
Page 5 of 8 Pages
<PAGE>
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 555,000 shares (including the shares owned by Associates) of
Common Stock, which constitutes approximately 7.9% 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) (i) Information with respect to all transactions in Common
Stock effected by Associates since the date of Amendment No. 4 are as follows:
DATE SHARES SOLD PER SHARE PRICE
9/2/97 45,000 $8.769
9/3/97 7,000 $8.875
9/4/97 60,000 $9.9792
9/8/97 15,000 $10.6083
All such transactions were open market transactions, and Associates paid normal
and customary brokerage commissions in connection with such transactions.
(ii) Information with respect to all transactions in Common Stock
effected by Edwin Schloss since the date of Amendment No. 4 are as follows:
DATE SHARES SOLD PER SHARE PRICE
9/3/97 10,000 $8.875
Page 6 of 8 Pages
<PAGE>
9/4/97 1,500 $8.875
9/4/97 2,700 $9.8125
All such transactions were open market transactions, and Edwin Schloss 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 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>
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
