FORM 10-K
                  U.S. SECURITIES AND EXCHANGE COMMISSION
                           Washington, DC  20549


             [X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the Fiscal Year Ended March 31, 1998
                                    OR
   [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
                            EXCHANGE ACT OF 1934
 
                          Commission File #0-12293

                           CANISCO RESOURCES, INC.
              (Exact Name of Registrant as Specified in Charter)

         DELAWARE                                      No. 54-0952207
   (State of Incorporation)                     IRS Employer Identification

          300 Delaware Avenue, Suite 714, Wilmington, Delaware  19801
             (Address of Principal Executive Offices and Zip Code)

              Registrant's Telephone Number, Including Area Code
                               (302) 777-5050

      Securities Registered Pursuant to Section 12 (b) of the Act:  None

          Securities Registered Pursuant to Section 12 (g) of the Act:

                    Common Stock, Par Value $.0025 Per Share

     Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.  Yes [X]  No [  ]


     Indicate by check mark if disclosure of delinquent filers pursuant to 
Item 405 of Regulation S-K is not contained herein, and will not be contained, 
to the best of the registrant's knowledge, in the definitive proxy or 
information statements incorporated by reference in Part III of this Form 10-K 
or any amendment to this Form 10-K.  [  ]

   The aggregate market value held by non-affiliates of the registrant as of
                               March 31, 1998:
              Common Stock, par value $.0025 per share   $4,848,215

       The number of shares outstanding as of the close of business on
            June 25, 1998, was 2,465,540 shares of Common Stock,
                         par value $.0025 per share.


           CANISCO RESOURCES, INC. - 1998 Form 10-K Annual Report

                             Table of Contents
PART I

Item  1.    Business                                                   3

Item  2.    Properties                                                 8

Item  3.    Legal Proceedings                                          8

Item  4.    Submission of Matters to a Vote of Security Holders        9

PART II

Item  5.    Market for the Registrant's Common Equity and
            Related Stockholder Matters                                9

Item  6.    Selected Financial Data                                   10

Item  7.    Management's Discussion and Analysis of Financial
            Condition and Results of Operations                       11

Item  8.    Financial Statements and Supplementary Data               16

Item  9.    Changes In and Disagreements with Accountants on
            Accounting and Financial Disclosure                       35

PART III

Item 10.    Directors and Executive Officers of the Registrant        35

Item 11.    Executive Compensation                                    35

Item 12.    Security Ownership of Certain Beneficial Owners
            and Management                                            35

Item 13.    Certain Relationships and Related Transactions            35

PART IV

Item 14.    Exhibits, Financial Statement Schedules and
            Reports on Form 8-K                                       36

DOCUMENTS INCORPORATED BY REFERENCE

Portions of registrant's definitive Proxy Statement for the Annual Meeting of 
Shareholders on August 11, 1998, are incorporated into Part III as set forth 
herein.

PART I

ITEM 1    BUSINESS

Canisco Resources, Inc. (stock symbol "CANR"), a Delaware corporation, was 
founded in 1996 as the successor by merger of Nuclear Support Services, Inc. 
(NSSI or the Company) and NSS of Delaware, Inc.  Shareholder approval for the 
merger of NSSI and NSS of Delaware into Canisco Resources, Inc. was granted at 
a special meeting of shareholders held March 29, 1996.  This merger was also 
effected pursuant to the Company's Amended Joint Plan of Reorganization which 
was confirmed by the United States Bankruptcy Court for the Middle District of 
Pennsylvania, Harrisburg on April 24, 1996.

Nuclear Support Services, Inc. was organized in 1973 as a Virginia business 
corporation. Prior to 1993, the Company's principal business was providing 
staff augmentation service on an "as needed" basis to assist in the 
maintenance and operation of power generation facilities.

From 1987 through 1989, the Company acquired companies which provided valve 
services involving maintenance of valves and valve actuators and diagnostic 
testing of motor-operated valves to the power generation, petro-chemical, 
refining and pulp and paper industries.

In 1990, the Company sold to Westinghouse Electric Corporation the nuclear 
portion of the valve diagnostic, actuator and valve maintenance operations of 
its subsidiary, Henze-Movats, Inc., in exchange for cash and the Numanco and 
WISCO staff augmentation businesses of Westinghouse.  The non-nuclear valve 
and actuator operations was retained and renamed Henze Services, Inc. (Henze).

In April 1992, the staff augmentation operations of the Company and that of 
Numanco were consolidated and renamed NSS Numanco, Inc. (NSS Numanco), 
headquartered in Hershey, Pennsylvania.

In June 1993, the Company created a new subsidiary, IceSolv, Inc. (IceSolv) to 
provide dry ice blasting services for decontamination, cleaning and 
preparation of surfaces for the nuclear power, electrical and other general 
industries.

Effective October 1, 1993, NSSI acquired two companies, Oliver B. Cannon & 
Son, Inc. and Sline Industrial Painters, Inc., marketed together as Cannon 
Sline.  Cannon Sline provides surface preparation, specialty coatings and 
related services to the power generation, pulp and paper, and other general 
industries across the United States.

In March 1995, the Company commenced a restructuring plan which included 
increased emphasis on its more profitable lines of business and a shift in 
focus from staff augmentation to contract services.

In the first week of September 1995, the Company and its subsidiaries filed 
voluntary bankruptcy petitions under Chapter 11 Reorganization in the U.S. 
Bankruptcy Court for the Middle District of Pennsylvania (the 'Court' in 
Harrisburg which are jointly administered at Case Number 1-95-1767.  This 
action became necessary to gain access to the Company's own cash for continued 
operations when its participant lender refused to continue funding its working 
capital line.  The Company obtained debtor-in-possession financing with its 
agent lender and continued to operate as debtor-in-possession.

On January 31, 1996, the Company filed its Joint Plan of Reorganization.  An 
Amended Joint Plan of Reorganization (the "Amended Plan") was filed and 
confirmed by the Court on April 24, 1996.  On June 28, 1996 the Company met 
all the requirements of the Amended Plan by executing the necessary 
banking documents for securing exit financing.  The Company's exited from 
bankruptcy on July 1, 1996.

In February, 1996, the commercial nuclear power staff augmentation business of 
NSS Numanco was sold.  Numanco's remaining business services were transferred 
to the Company's IceSolv, Inc. subsidiary.   IceSolv remains an operating 
subsidiary of the Company pursuant to the reorganization and restructuring 
plans.

In May 1996, Oliver B. Cannon & Son, Inc. and Sline Industrial Painters Inc. 
were merged pursuant to the Amended Plan.  The surviving entity is Cannon 
Sline, Inc., a Pennsylvania corporation.  Cannon Sline remains an operating 
subsidiary under the reorganization and restructuring plans.

In June 1996 substantially all the assets of Henze Services, Inc. were sold 
pursuant to the Amended Plan.  This subsidiary was then self-liquidated in 
bankruptcy.

On March 24, 1998, the Court administratively closed the bankruptcy 
proceedings pending the resolution of two contested matters.

Subsequent to the fiscal year ended March 31, 1998, the Company acquired all
the outstanding stock of Mansfield Industrial Coatings, Inc.  Mansfield 
provides specialty coating, asbestos, and lead abatement services to power 
generation, pulp and paper, petro-chemical and other general industries 
located throughout the southeastern and gulf coast regions of the country.  
The acquisition was completed April 22, 1998.

The current structure of Canisco Resources, Inc. reflects these changes.

MARKETS AND SERVICES FOR CANISCO RESOURCES

Canisco Resources, Inc. provides a range of maintenance services on an as-
needed basis primarily to the power generation, petro-chemical and pulp and 
paper industries through the Company's operating subsidiaries.  The Company's 
services consist of specialty cleaning, decontamination, janitorial services, 
technical support, surface preparation and painting and specialty coatings and
linings application. The Company also provides turnkey identification system 
services along with miscellaneous metal, siding and roof replacements to its 
clients.


Power Generation Market

The power generation industry was the largest market for the Company's 
services in fiscal year 1998.  Thirty-three percent (33%) of consolidated 
revenues was attributable to nuclear, fossil fuel, hydro-electric and other 
customers whose operations involve the production of electricity.  This is an 
increase from thirty-one percent (31%) in fiscal year 1997 and a reduction 
from forty-seven percent (47%) in fiscal year 1995. This reduction of 
dependence on the power generation industry is intentional and part of the 
Company's strategy to balance its market mix.


Petro-chemical Market

Twenty-four percent (24%) of the Company's revenues in fiscal year 1998 was 
generated from clients in the petro-chemical and refining industry which 
includes chemical, crude oil and natural gas processing compared to twenty-one 
percent (21%) in fiscal years 1997 and  1996.


Pulp and Paper Market

Pulp and paper facilities serviced by the Company include mills and production 
plants whose primary operations involve the production of paper, paperboard
and pulp.  Of the Company's consolidated revenues in fiscal year 1998, twenty 
percent (20%) was generated from customers in this industry compared to 
twenty-five percent (25%) in fiscal year 1997 and eighteen percent (18%) in 
fiscal year 1996.


Other Markets Served

The Company provides services to government facilities and state and municipal 
infrastructure as well as automotive, metals and mining, textiles, marine and 
printing industries.  No one of these industries is a significant part of the 
Company's business.  Twenty-three percent (23%) of the Company's consolidated 
revenues during fiscal year 1998 were generated from services provided 
to this group of industries unchanged from fiscal year 1997 compared to 
fourteen percent (14%) in fiscal year 1996.

The Company's business is impacted by seasonal sensitivity.  Historically, 
demand for the Company's services is highest in the spring through fall and 
lowest during the winter months.  The Company's assets are not assigned to a 
particular market.

COMPETITION

The Company's subsidiaries compete with approximately one hundred (100) 
national and/or regional competitors.  Price, quality and customer service are 
the governing factors.


CLIENTS

The Company's clients consist primarily of electric utilities, major oil 
companies, paper companies and other general industry.  Because of the nature 
of the services offered by the Company and the size of the projects in which 
the Company is engaged, a small number of clients, at times, account for a 
significant percentage of the Company's revenues in a given fiscal year.

For the fiscal year ended March 31, 1998, Northeast Utilities accounted for 
12% of consolidated revenues.  No client represented more than ten percent 
(10%) of revenues in fiscal years 1997 and 1996. 

The Company operates primarily within the United States.  The Company has or 
is performing contracts in Alabama, Arizona, Arkansas, California, Colorado, 
Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, 
Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, 
New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode 
Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, 
West Virginia, Wisconsin, and Wyoming.

The Company's contracts with its clients provide for charges for services on a
time and material, fixed-price and/or modified fixed-price basis.  The time 
and materials contracts generally permit the client to control the amount, 
type and timing of services to be performed by the Company, and most of the 
contracts permit the client to terminate the contract with appropriate notice.  
The Company's clients often modify the nature and timing of services to be 
performed.  The fixed-price and modified fixed-price contracts are recognized
on the percentage of completion method and are measured by the cost-to-cost 
method.  Revenues from time and material contracts are recognized as work 
progresses.  Provisions for estimated losses on uncompleted contracts are 
made in the period in which losses are determined.

The Company's uncompleted contracts include both undetermined and specific 
dollar contracts for services.  The Company has found that the undetermined 
dollar contracts are longer term and give it more flexibility in being 
responsive to customers' needs.  Due to the number and nature of undetermined 
dollar contracts and customer scheduling changes which may effect the timing 
of contract initiation and completion, it is difficult for management to place
an exact dollar value on its present uncompleted contracts.

INSURANCE

In addition to insurance required by statute, the Company maintains insurance 
coverage for general liability.  Based on scope of their operations, the 
company's subsidiaries maintain environmental and pollution liability 
insurance as may be applicable.


PERSONNEL

The seasonality of the business causes the employment of the Company to vary 
widely throughout the year.  During the fiscal year ended March 31, 1998, the 
number of personnel employed at one time by the Company fluctuated between 
approximately 450 and 800.

Managerial and clerical employees of the Company and its subsidiaries are not 
affiliated with a union nor are the project related employees of IceSolv.  
Cannon Sline, Inc. utilizes union labor for field projects on an as-needed 
basis.  Pertinent collective bargaining agreements to which Cannon Sline is 
signatory are: Collective bargaining agreements between District Council No.
21 International Brotherhood of Painters and Allied Trades, and the 
Associated Master Painters and Decorators of Philadelphia and Vicinity and 
Cannon Sline (expires 04/30/01); National Power Generating Facilities
Agreement between IBPAT, AFL-CIO-CFL and Cannon Sline; Corrosion Control 
Agreement in Industrial Plants between IBPAT, AFL-CIO-CFL and Cannon Sline; 
Fire-Retardant Coatings Agreement between IBPAT, AFL-CIO-CFL and Cannon Sline; 
National Tank Agreement between IBPAT, AFL-CIO-CFL and Cannon Sline; National 
Rubberlining Agreement between the International Brotherhood of Boilermakers, 
Iron Shipbuilders, Blacksmiths, Forgers and Helpers, AFL-CIO and Cannon Sline;
National  Bridge & Tunnel Agreement between IBPAT, AFL-CIO-CFL and Bridge 
Painting Contractors; National Erectors Association National Maintenance 
Agreement between IBPAT, AFL-CIO-CFL and Cannon Sline, and, Installation of 
Corrosion Proof Materials Agreement between the Operative Plasterers and 
Cement Masons International and Cannon Sline.  Unless otherwise noted, the 
foregoing agreements provide for annual renewal absent written notice.  Cannon 
Sline does not expect any significant difficulty in renewing any of its 
agreements.

The following table sets forth the demographics of the Company's employees for 
the period indicated.
<TABLE>
<CAPTION>
Description                                       At Fiscal Year End
                                          1998            1997            1996

<S>                                      <C>             <C>             <C>
Union Project Personnel                    405             432             454

Non-Union Project Personnel                 81              83             215

Clerical, Administrative,
Sales and Management Personnel              92              83             130

Total Personnel                            578             608             799
</TABLE>

ITEM 2    PROPERTIES

The Company and its subsidiaries maintain office and shop/storage facilities 
suitable to support operations.  These facilities are geographically located 
to provide effective customer service:

The following properties are owned: Philadelphia, PA; Lakeland, FL; 
Sulphur, LA;  Houston, TX; and Jacksonville, FL; Chesterfield County, VA.

The following properties are leased:  Longview, WA; Kennewick, WA; Palmyra, 
PA; Riverside, NJ; Sacramento, CA; Brunswick, OH; Atlanta, GA; and 
Wilmington, DE.

There are no major encumbrances on the real properties with the exception of 
liens granted to the Company's lenders on the owned properties.


ITEM 3    LEGAL PROCEEDINGS

The Company or its subsidiaries are involved in various claims and legal 
actions arising in the ordinary course of business.  In the opinion of 
management, the ultimate disposition of these matters will not have a material 
adverse effect on the Company's consolidated financial position.  For
information related to the Company's bankruptcy filing in 1995, please refer 
to prior interim reports and Item 1.

ITEM 4    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to a vote of security holders during 
the fourth quarter of the fiscal year ended 1998.


PART II

ITEM 5    MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
          STOCKHOLDER MATTERS

Canisco Resources, Inc. had  2,465,540 shares of common stock outstanding and  
approximately 374 shareholders of record as of June 25, 1998.  
The Company's common stock traded on the NASDAQ Stock Market under the 
symbol "NSSI" until May 20, 1996 at which time the Company commenced 
trading on the NASDAQ Small Cap Market under the symbol "CANR".  The above 
was the result of the merger of Nuclear Support Services, Inc. into 
Canisco Resources, Inc. in accordance with the Company's plan of 
reorganization.  The number of shares of common stock and shareholders 
of record did not change.

<TABLE>

Stock Highlights
<CAPTION>
                           Fiscal Year              Fiscal Year
Quarter                      1998                     1997
Ended                     High    Low              High    Low
<S>                      <C>     <C>             <C>     <C>
June  30                  2 3/4   1 3/8           2 5/8   2 1/8
Sept  30                  2 3/4   1 3/8           3 1/8   2 1/4
Dec   31                  3 7/8   1 3/4           5       2 7/8
March 31                  2 3/4   1 7/8           4 1/4   2 5/8

</TABLE>

ITEM 6    SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
Financial Highlights for the Fiscal Year End 
(in thousands except per share amounts)

                               1998   1997(1)  1996(2)   1995(3)    1994(4)
<S>                         <C>      <C>      <C>      <C>         <C>
Revenues                     $52,227  $50,191  $32,931  $83,116     $83,729
Income (loss)
  before reorganization
  costs and income taxes         659    1,180      736     (830)       (236)
Income (loss) from 
  continuing operations          659      525     (357)    (844)       (125)
Net earnings (loss)              490      452   (1,508)  (2,849)       (642)
Basic earnings (loss)
  per share                     0.22     0.21    (0.69)   (1.31)      (0.30)
Total assets                  20,633   21,301   26,101   39,389      35,489
Total long-term debt          10,256   11,274    5,587    5,587      15,946
Liabilities subject
  to compromise                    -        -    5,262    8,146           -
Equity per share                1.43     1.20     0.99     1.69        3.00
Return on average
  Equity                          17%      19%       -        -           -
Weighted average
  common and common
  equivalent shares (basic)    2,193    2,170    2,169    2,169       2,169

(1)    Reflects net reorganization expenses of approximately $600,000 and
       settlement of the Westinghouse litigation.

(2)    Fiscal year end change from September 30th to March 31st (a 6 month 
       period) and reflects the discontinuance of Henze operations and
       includes approximately $1.1 million in reorganization costs.

(3)    Reflects the discontinuance of Henze operations, a write-off of 
       approximately $3.4 million for business restructuring activities and an 
       accrual of $750,000 for Federal income tax relating to a prior year.

(4)    Purchased Oliver B. Cannon & Son, Inc. and Sline Industrial Painters, 
       Inc. (Cannon Sline)

</TABLE>

ITEM 7    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
          RESULTS OF OPERATIONS

All results reported herein for fiscal year 1998, fiscal year 1997 and fiscal
year 1995 are for a full year compared to fiscal year 1996 data which is for 
an abbreviated year of six months resulting from a change in fiscal year to 
end March 31 versus September 30.

During fiscal 1995, the Company determined that the valve repair business as 
then currently conducted by its Henze subsidiary, did not fit the Company's 
future strategy.  Effective June 6, 1996, the Company divested of 
substantially all the assets and business of its Henze subsidiary and it is 
identified in the financial statements as a discontinued operation.  As a 
result, the line items on the Company's Consolidated Statement of Operations 
from "Revenues from services" through "Income (Loss) from continuing 
operations" (inclusive) are presented absent the effects of Henze's operations 
(which are identified as discontinued operations and presented as a separate 
line item on a net basis).  Results from continuing and discontinued 
operations are then combined to produce net earnings (loss).

In June , 1997, the FASB issued Statement of Financial Accounting Standards 
No. 130, Reporting Comprehensive Income.  Statement No 130 established 
standards for reporting and display of comprehensive income and its components 
in a full set of general purpose financial statements.  Statement No. 130 is 
effective for periods beginning after December 15, 1997.  This Statement 
affects reporting in financial statements only and will not have impact upon 
results of operations, financial condition or long-term liquidity.  The 
Company is in compliance with the standards established by this Statement as 
required.

The Company is in the process of conducting a comprehensive review of its 
computer systems to identify the systems that could be affected by the 'Year 
2000' issue.  The Year 2000 problem is the result of computer programs being 
written using two digits rather than four to define the applicable year.  Any 
of the Company's programs that have time-sensitive software may recognize a 
date using '00' as the year 1900 rather than the year 2000.  This could result 
in a major system failure or miscalculations.  The Company believes its 
primary operating systems and software are Year 2000 compliant and expects 
no adverse impact from the Year 2000 issue.

Results of Operations 1998 Compared to 1997

Fiscal year 1998 revenues were $52,227,000 compared to $50,195,000  for fiscal 
year 1997.  The increase was due primarily to the award of a multi-year 
maintenance agreement in the power generation market.  The power generation
market accounted for thirty-three percent (33%) of the 1998 total revenues 
compared to thirty-one percent (31%) for fiscal year 1997 revenues.  The 
petro-chemical business contribution increased to twenty-four percent (24%) 
from twenty-one percent (21%) for fiscal year 1997.  The pulp and paper market 
business represented twenty percent (20%) of revenue in 1998 versus twenty-
five percent (25%) in fiscal year 1997.  This decline was driven by the 
completion of several large capital projects performed in the prior year.  The 
revenue contribution of all other markets collectively remained constant on a 
percentage basis at twenty three percent (23%).  The contribution of the 
various markets reflect the diversification strategy of the Company.

The gross margin of the Company was $9,377,000 compared to $9,538,000 for 
fiscal year 1997 and as a percent of revenue, gross margin was eighteen 
percent (18%) compared to nineteen percent (19%).  This decrease in gross 
margin percentage is attributable to several large capital projects completed 
in the prior year, shifts in revenues between market sectors and the impact of 
weather.

General and administrative expenses were $7,790,000 compared to $7,829,000 for 
the prior year.   As a percent of revenue, general and administrative expenses 
decreased to 15% from 16%.

Income from operations decreased to $1,586,000 compared to $1,709,000 for 
fiscal year 1997.  This decrease was attributable to decreases in gross 
margins offset somewhat by a decrease in general and administrative expenses. 

Interest expense for the year was $1,004,000 compared to $963,200 in fiscal 
year 1997.  The increase was due primarily to the increase of the revolving
credit facility, the proceeds of which were used to pay certain long term debt 
obligations.

The Company had other income, net of expenses of $77,000 in fiscal year 1998 
compared to other expenses net of income of  $169,000 for fiscal year 1997. 
In 1997 significant items were reorganization expenses, gain on the discount 
of compromised liabilities and settlement of the litigation against 
Westinghouse.  

Income tax expense for fiscal year 1998 was $168,500 compared to 
$52,000 for the fiscal year ended 1997.

Net income from continuing operations was $490,000 or $0.22 cents per share 
compared to $525,000 or $0.24 cents per share a year ago.  There were no 
losses attributable to discontinued operations in the period compared to a 
loss of $73,000 or $0.03 cents per share in the prior fiscal year.

Combining the results of continuing and discontinued operations the Company 
posted a net income of $490,000 or $0.22 cents per share (basic) compared to 
$452,000 or $0.21 per share a year ago.


Results of Operations 1997 Compared to 1996

Fiscal year 1997 revenues were $50,195,000 compared to $32,931,000 for fiscal 
year 1996.  The decrease on an annualized basis was due to the sale of NSS 
Numanco in February, 1996 and the sale of Henze in June, 1996.  The power 
generation market contributed $15,592,000 or thirty-one percent (31%) of the 
1997 total revenues compared to $15,596,000 or forty-seven percent (47%) 
of fiscal year 1996 revenues.  The petro-chemical business remained constant 
on a percentage basis at twenty-one percent (21%).  The pulp and paper market 
contributed twenty-five percent (25%) of revenue in 1997 versus eighteen (18%) 
in fiscal year 1996.  The revenue contribution of all other markets
 collectively was twenty-three percent (23%) compared to fourteen percent 
(14%) in fiscal year 1996.  The contribution of the various markets reflect 
the diversification strategy of the Company.

The gross margin of the Company was $9,538,000 compared to $4,987,000 for the 
six month 1996 fiscal year.  As a percent of revenue, gross margin was 
nineteen percent (19%) compared to fifteen percent (15%) in fiscal year 1996.  
This increase in gross margin percentage is due to the divestiture of the 
staff augmentation business, which traditionally depressed gross margins on a 
consolidated basis. 

General and administrative expenses were $7,829,000 compared to $4,579,000 for 
the prior year. This increase was due to the full 12 month fiscal year offset 
somewhat by reduced expenses as a result of the Reorganization.

Income from operations increased to $1,709,000 from $407,000.  This increase 
was attributable to the full year business period along with increases in 
gross margin and decrease in general and administrative expenses.

Interest expense for the year was $963,200 compared to $670,000 in fiscal year 
1996.  The increase was due to the full twelve month fiscal period compared to 
the prior year offset somewhat by the reduction in interest rates and 
reduction of debt.

The Company had other expenses, net of income, of $169,000 and $148,000 for 
fiscal years 1997 and 1996 respectively.  In 1997 significant items were 
reorganization expenses, gain on the discount of compromised liabilities and 
settlement of the litigation against Westinghouse.  In fiscal year 1996, 
significant items were reorganization expenses and gain on the sale of the 
Company's NSS Numanco subsidiary.

Accrued income tax expense for fiscal year 1997 was $52,000 net of
approximately $300,000 resulting from settlement of a prior period tax audit 
compared to a tax benefit of $54,000 for the fiscal year ended March 31, 1996.

Net income from continuing operations was $525,000 or 24 cents per share 
compared to a loss of $357,000 or 16 cents per share a year ago.  Losses 
attributable to discontinued operations were approximately $73,000 compared to 
a loss of $1,151,000 in the prior fiscal year.

Combining the results of continuing and discontinued operations the Company 
posted a net income of $452,000 or $0.21 per share compared to a loss of 
$1,508,000 or $0.69 per share a year ago.

Results of Operations 1996 Compared to 1995

Fiscal 1996 revenues were $32,931,000 compared to $83,116,000 for fiscal year 
The decrease on an annualized basis was due to the sale of NSS Numanco 
in February, 1996.  The power generation market contributed $15,596,000 or 
forty-seven percent (47%) of 1996 total revenues compared to $44,255,000 or 
fifty-three percent (53%) of fiscal year 1995 revenues.  The petro-chemical 
business accounted for twenty-one percent (21%) of revenues compared to 
seventeen percent (17%) in fiscal year 1995.  The pulp and paper market 
contributed eighteen percent (18%) of revenue in 1996 versus fifteen percent 
(15%) in fiscal year 1995.  The revenue contribution of all other markets 
collectively was fourteen percent (14%) compared to fifteen percent (15%) in 
fiscal year 1995.  The contribution of the various markets reflect the 
diversification strategy of the Company.

The gross margin of the Company was $4,987,000 compared to $12,901,000 for 
fiscal year 1995. As a percent of revenue, gross margin was consistent at 
approximately fifteen percent (15%).

General and administrative expenses decreased to $4,579,000 from $12,177,000 
the prior year.  This decrease was due to the abbreviated fiscal year, 
deletion of prior year one-time expenses and reduced expenses as a result of 
the Reorganization.

Income from operations decreased to $407,000 from $724,000 primarily due to 
the abbreviated fiscal year.

Interest Expense decreased to $670,000 from $1,554,000 in fiscal year 1995 as 
a result of the abbreviated fiscal year and reduction of debt.

Gain on the sale of NSS Numanco and miscellaneous income totaled approximately 
$1,000,000 in fiscal 1996.  These gains were offset by reorganization expenses 
of $1,147,000.

Net loss from continuing operations for fiscal year 1996 was $357,000 compared 
to $844,000 the prior year.  Losses attributable to discontinued operations 
were $586,000 from operations and $565,000 for disposal of assets, both net of 
income tax benefits.  Combining the losses from continuing and discontinued 
operations, the Company posted a net loss of $1,508,000 or $0.69 
per share versus $2,849,000 or $1.31 per share loss for the prior year.


Liquidity and Capital Resources

The Company's ability to generate cash adequate to meet its needs depends 
primarily upon payments for its services and periodic bank borrowings.  These 
sources of liquidity are reduced by the payment of direct costs, taxes, 
purchase of property and equipment and periodic repayment of the Company's 
revolving line of credit and term debt.

The Company was operating as a Debtor-In-Possession under the terms of Chapter 
11 Reorganization of the United States Bankruptcy Code, Case Number 1-95-01767
prior to its emergence from bankruptcy on July 1, 1996.  As of March 1, 1996 
the Company entered into a cash collateral stipulation allowing it to use its 
own cash for continued operations.

The use of cash collateral continued through July 1, 1996, when the Company 
secured financing with a new lender, BNY Financial Corporation.  This
refinancing consisted of a five year commitment for an $11,000,000 revolving 
credit line and $3,900,000 in long term debt.

At March 31, 1998, the Company had borrowed approximately $6,526,000 on its 
revolving credit line of $11,000,000 and had an outstanding principal balance 
of $2,535,000 on its long term secured loan obligation.  The Company is in 
compliance with the debt covenants as amended from time to time.

At March 31, 1998, the Company had working capital of approximately $5,293,000 
compared to working capital of $5,269,000 for fiscal year end 1997.  The 
increase in working capital was due primarily to the increase in other current 
assets, accounts payable, and costs and earnings in excess of billings on 
uncompleted contracts, offset somewhat by the decrease in accounts receivable 
and accrued expenses and withholding.

Effective April 17, 1998, the Company amended its credit facility with its 
current lender, BNY Financial Corporation.  The amended credit facility 
consists of a three year commitment for a $25,000,000 credit facility.  The 
amended facility includes a $5,000,000 acquisition credit line.

The Company anticipates that working capital and available bank credit will be 
sufficient to meet cash needs for the coming year.  Capital expenditures of 
approximately $1,000,000 are budgeted for fiscal year 1998 for upgrading 
equipment to support existing and expected future contract work.


Looking Forward

Subsequent to year end, the Company accelerated payment of its prepetition
debt on a selected basis to those creditors willing to accept a discount.
This action will reduce expenses going forward.  The Company has implemented a 
growth plan and completed its first acquisition under that plan.  Revenues
associated with the acquisition are anticipated to increase the Company's 
revenue by forty percent (40%) with earnings increasing commensurately.


Cautionary Statement

Statements in this Report on Form 10K which express the 'belief', 
'anticipation' or 'expectation,' as well as other statements which are not 
historical fact, are forward looking statements within the meaning of the
Private Securities Litigation Reform Action of 1995 and involve risks and 
uncertainties that could cause actual results to differ materially from those 
projected.  Certain factors such as competitive market pressures, material 
changes in demand from larger customers, changes in weather, availability of 
labor, changes in government policies and changes in economic conditions could 
cause actual results to differ materially from those in the forward-looking 
statements.


                            CANISCO RESOURCES, INC.
                     (formerly Nuclear Support Services, Inc.)

                       Consolidated Financial Statements

                       Years Ended March 31, 1998 and 1997
                       Six Months ended March 31, 1996, and
                          Year ended September 30, 1995


                 (With Independent Auditors' Report Thereon)



                       Independent Auditors' Report


The Board of Directors and Shareholders
Canisco Resources, Inc.:


We have audited the accompanying consolidated balance sheets of Canisco 
Resources, Inc. (formerly Nuclear Support Services, Inc.) and subsidiaries as 
of March 31, 1998 and 1997, and the related consolidated statements of 
operations, shareholders' equity, and cash flows for the years ended March 31, 
1998 and 1997, the six months ended March 31, 1996, and the year ended 
September 30, 1995.  These consolidated financial statements are the 
responsibility of the Company's management.  Our responsibility is to express 
an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial 
statements are free of material misstatement.  An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial 
statements.  An audit also includes assessing the accounting principles used 
and significant estimates made by management, as well as evaluating the 
overall financial statement presentation.  We believe that our audits provide 
a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above 
present fairly, in all material respects, the financial position of Canisco 
Resources, Inc. and subsidiaries at March 31, 1998 and 1997, and the results 
of their operations and their cash flows for the years ended March 31, 1998 
and 1997, the six months ended March 31, 1996, and the year ended September 
30, 1995, in conformity with generally accepted accounting principles.

Philadelphia, Pennsylvania
June 3, 1998

<TABLE>
                           CANISCO RESOURCES, INC.
                   (formerly Nuclear Support Services, Inc.)
<CAPTION>
                          Consolidated Balance Sheets

                             March 31, 1998 and 1997
<S>                                         <C>                  <C>
Assets                                            1998              1997

Current assets:
  Cash and cash equivalents                   $ 1,188,393          1,308,225
  Accounts receivable
    Billed, less allowances of $137,933
    and $199,050 at March 31, 1998 and
    1997, respectively                          7,749,599          8,637,956
  Unbilled                                        242,930            222,193
  Other                                           283,491            209,885

Total accounts receivable                       8,276,020          9,070,034

Inventory                                         419,697            407,166
Deferred income taxes                             289,000            391,000
Costs and estimated earnings 
 in excess of billings 
 on uncompleted contracts                       1,377,433            924,075
Prepaid expenses and other 
 current assets                                 1,961,818          1,590,187
Total current assets                           13,512,361         13,690,687

Property and equipment:
  Land                                            954,100            954,100
  Buildings and improvements                    1,085,812          1,085,812
  Machinery and equipment                       2,545,281          2,378,759
  Furniture and fixtures                          404,811            374,803
  Vehicles                                        389,516            419,921

                                                5,379,520          5,213,395
Less accumulated depreciation                   1,886,289          1,543,280

                                                3,493,231          3,670,115

Deferred income taxes                           2,116,000          2,297,000
Intangible pension asset                          905,938          1,009,474
Other assets                                      605,779            633,675

Total assets                                 $ 20,633,309         21,300,951

              See accompanying notes to consolidated financial statements.


                           CANISCO RESOURCES, INC.
                   (formerly Nuclear Support Services, Inc.)

                         Consolidated Balance Sheets

                            March 31, 1998 and 1997

Liabilities and Shareholders' Equity                   1998           1997

Current liabilities:
  Current portion of long-term debt               $  1,974,993      2,053,314
  Accounts payable and bank overdrafts               3,301,171      2,849,475
  Accrued payroll and employee benefits              1,137,532      1,442,713
  Billings in excess of costs and 
   estimated earnings on uncompleted 
   contracts                                           379,462        516,617
   Other accrued expenses (note 4)                   1,425,957      1,559,913

   Total current liabilities                         8,219,115      8,422,032

Note payable to bank                                 6,526,421      5,412,020
Long-term debt, less current portion                 1,755,000      3,808,314
Accrued pension cost                                   962,869      1,052,197

Total liabilities                                   17,463,405     18,694,563

Shareholders' equity:
  Common stock, $.0025 par value, 
   authorized 10,000,000 shares, 
   issued 2,477,592 shares at 
   March 31, 1998 and 1997,
   outstanding 2,215,540 and
   2,170,540 shares at 
   March 31, 1998 and 1997,
   respectively                                         6,194          6,194
 Additional paid-in capital                         2,873,101      3,478,576
 Retained earnings                                  4,242,146      3,751,755
 Treasury stock, at cost                           (3,951,537)    (4,630,137)
Total shareholders' equity                          3,169,904      2,606,388
Commitments and contingencies

Total liabilities and shareholders' equity        $20,633,309     21,300,951
</TABLE>
<TABLE>
<CAPTION>
                               CANISCO RESOURCES, INC.
                        (formerly Nuclear Support Services, Inc.)

                         Consolidated Statements of Operations
                         Years ended March 31, 1998 and 1997, 
                            Six Months ended March 31, 1996,
                           and Year ended September 30, 1995

                                                     Six months
                                                          ended    Year ended
                               Year ended March 31,    March 31, September 30,
                                  1998        1997       1996          1995
<S>                        <C>           <C>        <C>           <C>
Revenues from services      $ 52,227,363  50,195,491 32,930,854    83,115,904
Cost of services              42,851,839  40,657,144 27,944,340    70,215,224

Gross margin                   9,375,524   9,538,347  4,986,514    12,900,680

General and administrative
  expenses                     7,789,533   7,829,001  4,579,371    12,176,557
Income from operations         1,585,991   1,709,346    407,143       724,123
Interest expense              (1,003,979)   (963,120)  (670,457)   (1,554,135)
Gain on sale of Numanco
  Subsidiary                           -           -    883,232             -
Other income (expense), net       76,909     433,440    116,364          (190)

Income (loss) before
  reorganization costs
  and income taxes               658,921   1,179,666    736,282      (830,202)

Reorganization costs:
  Professional fees                    -    (996,371)(1,147,074)     (185,019)
  Gain on discount of
    compromised liabilities            -     393,518          -             -

Income (loss) from continuing
  operations before
  income taxes                   658,921     576,813   (410,792)   (1,015,221)

Income tax expense
  (benefit)                      168,530      51,690    (54,000)     (171,000)
Income (loss) from
  continuing operations          490,391     525,123   (356,792)     (844,221)


                                                                   (Continued)
                         CANISCO RESOURCES, INC.
                 (formerly Nuclear Support Services, Inc.)

                    Consolidated Statements of Operations
   
                      Years ended March 31, 1998 and 1997, 
                       Six Months ended March 31, 1996,
                      and Year ended September 30, 1995

                                                     Six months
                                                          ended    Year ended
                                 Years ended March 31, March 31, September 30,
                                     1998        1997      1996          1995


Discontinued operations:
  Loss from operations of
    discontinued subsidiary
    (net of income tax
    benefit of $243,069 and
    $1,080,000, in 1996
    and 1995, respectively)   $         -           -  (586,029)   (2,004,755)
  Loss from disposal of
    discontinued subsidiary
    (net of income tax benefit
    of $48,470 and $335,000
    in 1997 and 1996,
    respectively)                       -     (72,705)  (565,000)           -

Loss from discontinued
  operations                            -     (72,705)(1,151,029)  (2,004,755)
Net earnings (loss)           $   490,391     452,418 (1,507,821)  (2,848,976)

Earnings (loss) per share,
  (basic):
  Continuing operations           $   .22         .24       (.16)       (.39)
  Discontinued operations               -        (.03)      (.53)       (.92)

Net earnings (loss) per share,
  (basic)                         $   .22         .21       (.69)      (1.31)
Weighted average common and
  common equivalent shares
  (basic)                       2,193,040   2,169,865  2,169,190   2,169,190

Earnings (loss) per share:
  (diluted):
    Continuing operations     $       .20         .21          -          -
    Discontinuing operations            -        (.03)         -          -

Net earnings
  per share (diluted)         $       .20         .18          -          -

Weighted average
  common shares (diluted)       2,405,436   2,488,635          -          -



            See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>

                             CANISCO RESOURCES, INC.
                     (formerly Nuclear Support Services, Inc.)

                   Consolidated Statements of Shareholders' Equity

                        Years ended March 31, 1998 and 1997, 
                          Six Months ended March 31, 1996,
                         and Year ended September 30, 1995

             Common Stock                           Treasury Stock
             Number       Additional             Number 
                 of          paid in   Retained      of
             shares Amount   capital   earnings  shares      Amount      Total
<S>      <C>       <C>    <C>       <C>        <C>     <C>          <C>
Balance
at
9/30/94   2,476,242 $6,190 3,472,506  7,656,134 307,052 $(4,630,137) 6,504,693

Net loss          -      -         - (2,848,976)      -           -  2,848,976

Balance
at
9/30/95   2,476,242  6,190 3,472,506  4,807,158 307,052  (4,630,137) 3,655,717

Net loss          -      -         - (1,507,821)      -           - (1,507,821)

Balance
at 
3/31/96   2,476,242  6,190 3,472,506  3,299,337 307,052  (4,630,137) 2,147,896

Exercise
of
options       1,350      4     6,070          -       -           -      6,074

Net
earnings          -      -         -    452,418       -           -    452,418

Balance
at 
3/31/97   2,477,592  6,194 3,478,576  3,751,755 307,052  (4,630,137) 2,606,388

Re-
issuance
of 
treasury
stock             -      -  (605,475)         - (45,000)    678,600     73,125

Net
earnings          -      -         -    490,391       -           -    490,391

Balance
at
3/31/98   2,477,592 $6,194 2,873,101  4,242,146 262,052 $(3,951,537)  3,169,904


            See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
                              CANISCO RESOURCES, INC.
                     (formerly Nuclear Support Services, Inc.)

                       Consolidated Statements of Cash Flows

                        Years ended March 31, 1998 and 1997, 
                          Six Months ended March 31, 1996,
                         and Year ended September 30, 1995

                                                     Six months
                                                          ended    Year ended
                                  Year ended March 31, March 31, September 30,
                                     1998       1997       1996          1995
<S>                            <C>         <C>      <C>           <C>
Cash flows from operating 
  activities:
   Net earnings (loss)          $ 490,391    452,418 (1,507,821)   (2,848,976)
   Adjustments to reconcile
     net earnings (loss)
     to net cash provided by
     operating activities:
   Depreciation and amortization  629,329    644,467    837,393     1,441,179
   Deferred income taxes          283,000    324,000   (515,000)   (1,197,000)
   Gain on sale of Numanco
     Subsidiary                         -          -   (883,232)            -
   Loss accrued on disposal of
     discontinued subsidiary            -          -    900,000             -
   Gain on discount of
     compromised liabilities            -   (393,518)         -             -
   Other                                -          -    116,080         1,640
   Change in assets and
     liabilities net of
     effects from purchases
     and sales of subsidiaries:
   Decrease (increase) in
     accounts receivable          794,014  3,035,777  8,997,213    (4,774,332)
   (Increase) decrease
     in inventory                 (12,531)   (39,141)    28,726       428,734
   (Increase) decrease
     in prepaid expenses
     and other current assets    (371,631)  (213,511)    38,190     2,118,394
   Decrease (increase) in
     costs and estimated
     earnings in excess of
     billings on uncompleted
     contracts                   (453,358)   913,883    922,481    (1,399,176)
   Increase (decrease) in
     other assets                (121,204)   272,217   (267,495)      129,100
   (Decrease) increase in
     accounts payable             383,541   (708,278)(2,521,433)    4,853,357

                                                                   (Continued)

                              CANISCO RESOURCES, INC.
                      (formerly Nuclear Support Services, Inc.)

                    Consolidated Statements of Cash Flows Continued


                                                     Six months
                                                          ended    Year ended
                                  Year ended March 31, March 31, September 30,
                                     1998       1997       1996          1995

   Increase (decrease)
      in accrued payroll
      and employee benefits    $ (305,181)   787,047 (1,230,826)      248,683

   (Decrease) increase in 
      other accrued expenses     (133,956)(2,715,328)  (775,286)    1,304,819
   (Decrease) increase in
      billings in excess 
      of costs and estimated
      earnings on uncompleted
      contracts                  (137,155)  (267,661)     4,557       411,140
   Decrease in accrued
      pension cost                (89,328)         -          -             -
Net cash provided by
  operating activities            955,931  2,092,372  4,143,547       717,562
Cash flows from investing
  activities:
  Purchase of property and
     equipment                   (199,809)  (117,075)   (22,686)     (534,809)
  Sale of property and equipment        -          -     44,019         5,887
  Purchase of marketable
     securities                         -          -          -      (218,427)
  Sale of marketable
     securities                         -          -    325,924        37,232
  Proceeds from sale of
     Numanco subsidiary                 -          -  2,350,000             -
  Proceeds from sale of
     Henze subsidiary                   -  1,200,000          -             -
Net cash provided by
  (used in) investing
   activities                    (199,809) 1,082,925  2,697,257      (710,117)
Cash flows from financing
  activities:
  Net borrowings (payments)
    on notes payable            1,182,556  1,295,628 (8,107,298)    1,086,033
  Proceeds from long-term debt          -  3,900,000          -             -

                                                                   (Continued)

                           CANISCO RESOURCES, INC.
                    (formerly Nuclear Support Services, Inc.)

                Consolidated Statements of Cash Flows Continued

                                                     Six months
                                                          ended    Year ended
                                 Years ended March 31, March 31, September 30,
                                     1998       1997       1996          1995


  Debt issuance costs         $         -   (745,522)         -             -
  Principal payments on
    long-term debt             (2,131,635)(6,873,684)   (32,341)   (1,155,158)
  Exercise of stock options             -      6,074          -             -
  Treasury stock issuance          73,125          -          -             -

Net cash used in
   financing activities          (875,954)(2,417,504)(8,139,639)      (69,125)
Net increase (decrease)
   in cash and cash
   equivalents                   (119,832)   757,793 (1,298,835)      (61,680)
Cash and cash equivalents
   at beginning of period       1,308,225    550,432  1,849,267     1,910,947
Cash and cash equivalents
   at end of period         $   1,188,393  1,308,225    550,432     1,849,267
Cash paid during the
   period for:
   Interest                 $     958,776  1,004,516    738,566     1,861,850
   Income taxes                    23,990     23,654     10,407       123,113
Supplemental disclosure 
  of noncash financing 
  activity - increase in 
  intangible asset
  resulting from minimum 
  pension liability 
  adjustment                $           -  1,009,474          -             -


          See accompanying notes to consolidated financial statements.
</TABLE>

                            CANISCO RESOURCES, INC.
                    (formerly Nuclear Support Services, Inc.)

                    Notes to Consolidated Financial Statements

                         Years ended March 31, 1998 and 1997, 
                           Six Months ended March 31, 1996,
                          and Year ended September 30, 1995

(1)  Description of Business and Basis of Presentation

Canisco Resources, Inc. provides painting and surface preparation,
specialty coatings and linings, specialty cleaning, decontamination,
janitorial, and technical support services.  On September 5, 1995 (the 
'Petition Date'), Canisco Resources, Inc. (formerly Nuclear Support 
Services, Inc.) - (the 'Debtor') filed a voluntary petition for relief 
under Chapter 11 of the United States Bankruptcy Code ('Chapter 11') in 
the United States Bankruptcy Court for the Middle District of 
Pennsylvania in Harrisburg.  Under Chapter 11, certain claims against the 
Debtor in existence prior to the filing of the petition for relief under 
the federal bankruptcy laws were stayed while the Debtor continued 
business operations as Debtor-in-Possession.  These claims are reflected 
in the March 31, 1996 consolidated balance sheet as 'Liabilities subject 
to compromise under reorganization proceedings.'  The Debtor exited its 
bankruptcy reorganization on July 1, 1996.

(2) Summary of Significant Accounting Policies
 
Basis of Consolidation

The consolidated financial statements include the accounts of Canisco
Resources, Inc. and its wholly owned subsidiaries (together referred 
to as the 'Company').  All significant intercompany transactions and 
balances have been eliminated in consolidation.  The results of 
operations of the Company's Henze Services, Inc. subsidiary are shown 
as discontinued operations for all periods presented through its sale in 
June 1996.  In 1996, the Company changed its name from Nuclear Support 
Services, Inc. to Canisco Resources, Inc. and changed its fiscal year-end 
from September 30 to March 31.

Accounting Estimates

In preparing the consolidated financial statements, management is
required to make estimates and assumptions that affect the reported 
amounts of assets and liabilities as of the dates of the consolidated 
balance sheets and income and expenses for the periods.  Actual results
could differ from those estimates.

                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements

(2)    Continued

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company considers 
all highly liquid debt instruments with original maturities of three 
months or less to be cash equivalents.  Included in cash and cash 
equivalents at March 31, 1998 and 1997 is cash of approximately 
$1,085,000 and $1,028,000, respectively, restricted as to use in 
connection with the Company's workers' compensation insurance program.

Revenue and Cost Recognition

Revenues from fixed-price and modified fixed-price construction
contracts are recognized on the percentage-of-completion method, 
measured by the cost-to-cost method. Revenues from cost-plus-fee 
contracts are recognized on the basis of costs incurred during the  
period plus the fee earned, measured by the cost-to-cost method.

Contract costs include all direct material and labor costs and those 
indirect costs related to contract performance, such as indirect 
labor, supplies, tools, repairs, and depreciation costs. General and 
administrative costs are charged to expense as incurred. Provisions 
for estimated losses on uncompleted contracts are made in the period 
in which such losses are determined.  Changes in job performance, job 
conditions, and estimated profitability, including those arising from 
contract penalty provisions, and final contract settlements may result 
in revisions to costs and income and are recognized in the period in 
which the revisions are determined.  Profit incentives are included 
in revenues when their realization is reasonably assured.  An amount 
equal to contract costs attributable to claims is included in revenues 
when realization is probable and the amount can be reliably estimated.

The asset, 'Cost and estimated earnings in excess of billings on 
uncompleted contracts,' represents revenues recognized in excess of 
amounts billed. The liability, 'Billings in excess of costs and 
estimated earnings on uncompleted contracts,' represents billings in 
excess of revenues recognized.  Contract retentions are included in 
accounts receivable.

Inventory

Inventory consists primarily of consumable supplies and is stated at 
the lower of average cost or market.


                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements

(2)    Continued

Property and Equipment 

Property and equipment are stated at cost less accumulated depreciation
and amortization. Depreciation is provided using the straight-line 
method over the estimated useful lives of the assets ranging from three 
to 10 years for property and equipment other than buildings.  The 
estimated useful life of buildings is 40 years.  Capital leases are 
included at the capitalized amount less accumulated amortization. 
Amortization of capital leases is included in depreciation expense. 
Leasehold improvements are amortized over the shorter of their estimated 
useful lives or the terms of the respective leases.

Maintenance and repairs are expensed when incurred, and expenditures 
for improvements are capitalized. Any gains or losses from the disposal 
of assets are recorded in the year of disposal.

Accounts Payable and Bank Overdrafts

Included in accounts payable and bank overdrafts is $825,124 and $756,969 
of bank overdrafts at March 31, 1998 and 1997, respectively.

Stock Option Plan 

Prior to April 1, 1996, the Company accounted for its stock option plan 
in accordance with the provisions of Accounting Principles Board 
('APB') Opinion No. 25, Accounting for Stock Issued to Employees, and 
related interpretations.  As such, compensation expense to be recognized
over the related vesting period would generally be recorded on the date
of grant only if the current market price of the underlying stock
exceededthe exercise price.  On April 1, 1996, the Company adopted
Statement of Financial Accounting Standards ("SFAS") No. 123,
Accounting for Stock-Based Compensation, which permits entities to
recognize as expense over the vesting period the fair value of all
stock-based awards on the date of grant.

Alternatively, SFAS No. 123 also allows entities to continue to apply the 
provisions of APB Opinion No. 25 and provide pro forma net earnings (loss) 
and pro forma earnings (loss) per share disclosures for employee stock 
option grants as if the fair-value based method defined in SFAS No. 123 
had been applied.  The Company has elected to continue to apply the 
provisions of APB Opinion No. 25 and provide the pro forma disclosure 
provisions of SFAS No. 123.

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of

The Company adopted the provisions of SFAS No. 121, Accounting for the 
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed 
Of, on April 1, 1996.  This statement requires that long-lived assets and 
certain identifiable intangibles be reviewed for impairment whenever 

                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements


(2)    Continued

events or changes in circumstances indicate that the carrying amount of an 
asset may not be recoverable. Recoverability of assets to be held and used 
is measured by a comparison of the carrying amount of an asset to future 
net cash flows expected to be generated by the asset.  If such assets are 
considered to be impaired, the impairment to be recognized is measured 
by the amount by which the carrying amount of the assets exceed the 
fair value of the assets.  Assets to be disposed of are reported at the 
lower of the carrying amount or fair value less costs to sell.  
Adoption of this statement did not have a material impact on the 
Company's financial position, results of operations, or liquidity.

Income Taxes

Deferred income taxes are recognized for the tax consequences of 
'temporary differences' by applying enacted statutory tax rates 
applicable to future years to differences between the financial 
statement  carrying amounts and the tax bases of existing assets and 
liabilities.  Additionally, the effect on deferred taxes of a change in 
tax rates is recognized in earnings in the period that includes the 
enactment date.

Concentration of Credit Risk

The Company provides its services primarily to the power generation, 
petro-chemical and pulp and paper industries.

The Company performs ongoing credit evaluations of its customers and 
generally does not require collateral.  The Company maintains reserves 
for potential credit losses and such losses have been within 
management's expectations.

Net Earnings (Loss) Per Share of Common Stock

During fiscal year 1998, the Company adopted SFAS No. 128, 'Earnings per 
Share'.  The adoption of SFAS No. 128 requires the Company to replace 
primary and fully diluted earnings per share with basic and diluted 
earnings per share.  Basic earnings per share are computed by dividing net 
income by the weighted average number of shares of common stock outstanding 
during the year.  Diluted earnings per common share reflects the potential 
dilution of securities that could share in the earnings.  Prior year 
earnings per share have been restated.

                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements


(3)    Prepaid Expenses and Other Current Assets

Included in prepaid expenses and other current assets is approximately 
$1,300,000 and $660,000 at March 31, 1998 and 1997, respectively, related
to workers' compensation refunds due from the Company's insurance carrier.

(4)    Costs and Estimated Earnings on Uncompleted Contracts and Retainage

<TABLE>
<CAPTION>
Costs and estimated earnings on uncompleted contracts are summarized as 
follows:
                                                        March 31,
                                                     1998        1997
<S>                                          <C>             <C>
Costs incurred on uncompleted contracts       $   67,512,400  69,831,710
Estimated earnings                                14,141,842  15,092,433

                                                  81,654,242  84,924,143
Less billings to date                             80,656,271  84,516,685

                                              $      997,971     407,458
Included in the accompanying consolidated
balance sheets under the following captions:
Costs and estimated earnings in excess of
 billings on uncompleted contracts             $   1,377,433     924,075
Billings in excess of costs and estimated
earnings on uncompleted contracts                   (379,462)   (516,617)
                                               $     997,971     407,458

</TABLE>

Accounts receivable billed includes amounts retained by customers, in 
accordance with contract provisions, of approximately $243,000 and 
$220,000 at March 31, 1998 and 1997, respectively.  These amounts are 
expected to be collected within one year.

                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements

(5)    Liabilities Subject to Compromise Under Reorganization Proceedings

In accordance with the bankruptcy reorganiziation plan, $3,217,480 of the 
Company's prepetition liabilities were comprised and are to be paid to 
creditors in ten equal quarterly payments.  These paymentsbegan October 1, 
1996 and bear interest at 2% per annum.  In accorandance with Statement of 
Position 90-7, Financial Reporting by Entities in Reorganization Under the 
Bankrupcty Code, the total payments were discounted at 9% resulting in a 
gain of $393,518.  This gain was recorded in the year ended March 31, 1997.

(6)    Long-Term Debt and Notes Payable

<TABLE>
<CAPTION>
Long-term debt is summarized as follows:
                                                        March 31,
                                                   1998        1997
<S>                                        <C>             <C>
Term loan payable to bank, collateralized
by the Company's accounts receivable,
inventory, machinery and equipment, real
estate, and general intangibles.  The 
note bears interest at prime + 1.0% 
(9.50% at March 31, 1998) and is payable
in equal monthly installments through
June 2001)                                   $   2,535,000   3,315,000

Prepetition compromised liabilities, net
of discount of $74,000 and $260,000 at
March 31, 1998 and 1997, respectively,
effective interest rate of 9% 
payable in equal quarterly installments
through January 1999                             1,194,993    2,546,628

                                                 3,729,993    5,861,628
Less current maturities                          1,974,993    2,053,314

                                              $  1,755,000    3,808,314
</TABLE>

On June 28, 1996, the Company entered into an $11,000,000 revolving credit 
agreement (the 'Credit Agreement') with a bank which expires on June 1, 
2001.  The amount outstanding under the Credit Agreement was $6,526,421 at 
March 31, 1998 and $5,412,020 at March 31, 1997.  Borrowings bear interest 
at the prime rate plus 0.75% (9.25% and 9.05% at March 31, 1998 and 1997, 
respectively),and are secured by the Company's accounts receivable, 
inventory, machinery and equipment, real estate, and general intangibles.  
The Credit Agreement, among other things, requires the Company to meet 
various covenants including minimum levels of tangible net worth and 
earnings before interest, taxes, depreciation, and amortization.  
Commitment fees are 1/4 of 1% of the average daily unused amount of the 
Credit Agreement.  The Company is also required to pay a monthly collateral 
monitoring fee of $7,500.
                                                               (Continued)

CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements

(6)	    Continued

At March 31, 1998, future long-term debt payments, excluding payments under
the revolving credit agreement, are as follows:

             Year                        Amount
             1999                    $1,974,993
             2000                       780,000
             2001                       780,000
             2002                       195,000
      
                                     $3,729,993

Based on the borrowing rates currently available to the Company for debt
with similar terms and average maturities, the fair value of long-term 
debt approximates its carrying value.


CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.

Notes to Consolidated Financial Statements

(7)  Income Taxes

Income tax expense (benefit) relating to continuing operations
consists of the following:
<TABLE>
<CAPTION>
                                                     Six months         Year
                           Years ended March 31           ended        ended
                            1998            1997        3-31-96      9-30-95
     <S>              <C>                <C>          <C>           <C>
      Current:
        Federal        $  (114,470)       (272,310)           -       579,000
        State                    -               -            -       (88,000)

      Total current       (114,470)       (272,310)           -       491,000

      Deferred - Federal 
        and state          283,000         324,000      (54,000)     (662,000)

      Total income tax
        expense 
        (benefit)       $  168,530          51,690      (54,000)     (171,000)

</TABLE>


                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements

(7)   Continued

The reconciliation between the tax expense (benefit) computed by 
multiplying pretax income (loss) from continuing operations by the U.S. 
Federal statutory tax rate and the reported amounts of income tax 
expense (benefit) is as follows:
<TABLE>
<CAPTION>

                                                      Six months        Year
                                                         ended         ended
                              Years ended March 31,     March 31,     Sept. 30,
                                 1998        1997         1996          1995
     <S>                     <C>           <C>         <C>         <C>
      Computed at U.S. 
        statutory
        tax rate              $ 224,000     196,000     (140,000)   (345,000)
      State income taxes, 
         net of Federal 
         income tax effect       24,000      21,000      (14,000)    (26,000)
      Federal income taxes
         relating to prior 
         year                   (95,000)   (298,000)           -     534,000
       Decrease in 
         beginning-of-year
         balance of valuation
         allowance                    -           -            -    (613,000)
       Nondeductible expenses
         and other, net          15,530     132,690      100,000     279,000

       Total income tax 
         expense (benefit)   $  168,530      51,690      (54,000)   (171,000)
</TABLE>

                                                                   (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements

(7)    Continued

SFAS 109 requires the recognition of deferred tax assets and liabilities 
for both the expected future tax impact of differences between the 
financial statement and tax basis of assets and liabilities, and for the 
expected future tax benefit to be derived from tax loss and tax credit 
carryforwards. SFAS 109 additionally requires the establishment of a 
valuation allowance to reflect the likelihood of realization of deferred 
tax assets. The tax effects of temporary differences and carryforwards that 
give rise to significant portions of the deferred tax assets and 
liabilities are as follows:
<TABLE>
<CAPTION>
                                                           March 31,
                                                       1998        1997
     <S>                                     <C>             <C>
      Deferred tax assets:
        Allowance for doubtful accounts       $       2,000      26,000
        Operating loss carryforwards              2,479,000   2,452,000
        Accruals not deducted for tax
          purposes                                  315,000     466,000
        AMT credit carryforwards                    167,000     167,000

        Total gross deferred tax assets           2,963,000   3,111,000

        Less valuation allowance                     71,000      71,000

      Net deferred tax assets                     2,892,000   3,040,000

      Deferred tax liabilities:
        Fixed asset depreciation                    458,000     251,000
        Other                                        29,000     101,000

        Total deferred tax liabilities              487,000     352,000

      Net deferred tax asset                  $   2,405,000   2,688,000

</TABLE>
                                                               (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements


(7)  Continued

The Company's net operating loss carryforwards, which total approximately 
$6,400,000 at March 31, 1998, expire beginning in 2010.  The valuation 
allowance for deferred tax assets did not change for the year ended March
31, 1998.  In assessing the realizability of deferred tax assets, 
management considers whether it is more likely than not that some portion 
or all of the deferred tax assets will not be realized. The ultimate 
realization of deferred tax assets is dependent upon the generation of 
future taxable income during the periods in which those temporary 
differences become deductible. Management considers the scheduled reversal 
of deferred tax liabilities, projected future taxable income and tax 
planning strategies in making this assessment. Based upon the level of 
historical taxable income and projections for future taxable income over 
the periods which the deferred tax assets are deductible, management 
believes it is more likely than not the Company will realize the benefits 
of these deductible differences, net of the existing valuation allowances 
at March 31, 1998.

In 1995, the Internal Revenue Service (IRS), completed an audit of the 
Company's income tax returns for the years ended September 30, 1993, 
1992, 1991, and 1990. As a result of the audit, the IRS challenged the 
write-off for tax purposes of certain intangible assets made during the 
year ended September 30, 1993. The Company had previously accrued 
$750,000 relating to this audit. The Company settled this matter for
approximately $450,000 in April 1997.  Included in other accrued expenses
on the Company's consolidated balance sheets is $420,000 and $440,000 at 
March 31, 1998 and 1997, respectively, related to this matter.

(8)  Employee Benefit Plans

Effective October 1, 1996, the Company established a defined benefit 
pension plan for the benefit of a certain select group of former 
(retired) senior management.  The benefits to be paid are based on 
specified amounts for a specified period of time.  The Company has 
decided to fund the plan by contributing amounts when necessary for 
benefit disbursements.


CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements


(8)  Continued


The following table sets forth the plan's funded status at March 31, 
1998 and 1997:
<TABLE>
<CAPTION>

                                                       March 31,     March 31,
                                                           1998          1997
    <S>                                             <C>           <C>
     Actuarial present value of accumulated
       plan benefits, including vested benefits
       of $962,869 and $1,052,197 at March 31,
       1998 and 1997, respectively                   $  962,869     1,052,197
    Plan assets at fair value                                 -             -

    Accumulated plan benefits in excess of
      plan assets                                       962,869     1,052,197
    Unrecognized prior service cost                    (905,938)   (1,009,474)
    Minimum liability adjustment                        905,938     1,009,474

    Accrued pension cost                             $  962,869     1,052,197
</TABLE>

    Net pension cost for the year ended March 31, 1998 and the period from 
    October 1, 1996 to March 31, 1997 included the following components:

                                                      March 31,     March 31,
                                                           1998          1997

    Interest cost on projected benefit obligation     $  75,672        40,955
    Amortization of prior service cost                  103,536        51,768

                                                      $ 179,208        92,723

    The weighted-average discount rate used to measure the projected benefit 
    obligation was 8.0%.

    Effective February 1, 1990, the Company established the Nuclear Support 
    Services, Inc. Retirement Savings Plan (401(k) Plan) for qualified 
    Company employees.  No Company contributions were made to the Plan 
    during any of the periods presented.  The Company  terminated the Plan 
    effective March 31, 1996.
                                                               (Continued)

CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements


(8)  Continued

The Company established an Employee Stock Purchase Plan in 1988 for 
substantially all of its employees.  The Plan offers employees the
opportunity to purchase Company common stock through regular payroll
deductions.  Participation in this Plan is voluntary, and the Company
pays transaction fees for purchases made under this Plan.

The Company is obligated under the terms of a thrift plan for substantially
all employees of its subsidiary, Cannon Sline, Inc., not covered by
union-sponsored plans.  The Plan allows participants to contribute after-
tax earnings up to a maximum of 10% of annual compensation.  The Plan
provides for Company matching and additional discretionary contributions 
as defined in the Plan document.  Cannon Sline expensed approximately 
$163,000, $150,000, $48,000, and $74,000, in combined matching and 
discretionary contributions to the Plan during the 
years ended March 31, 1998 and 1997, the six months ended March 31, 1996, 
and the year ended September 30, 1995 , respectively.  

Cannon Sline is required to contribute to pension plans (defined 
contribution) administered by collective bargaining organizations. 
Contributions are based on hours worked, as specified in the various 
contracts. Information regarding these plans is not currently made 
available by the union administrators or trustees.


(9) Major Customer

In the year ended March 31, 1998, one customer accounted for the 12% of 
consolidated revenues.  In the year ended September 30, 1995, one customer 
accounted for 16% of consolidated revenues.  No single customer accounted 
for more than 10% of consolidated revenues in the year ended March 31, 
1997 or the six months ended March 31, 1996.


(10) Stock-Based Incentive Plans

(a)  Stock Appreciation Rights Plan

On January 1, 1995, the Board of Directors adopted the Nuclear 
Support Services, Inc. Non-Qualified Executive Stock Appreciation 
Plan (the 'SAR Plan') to provide incentive to key officers and 
executives of the Company.  A total of 250,000 appreciation rights 
(Rights) can be granted under the SAR Plan through January 1, 2002.



                                                               (Contined)

CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements


(10)  Continued

Rights granted under the SAR Plan are immediately exercisable and expire 
five years from the date of grant.  Each Right entitles the grantee to 
receive in cash, upon exercise thereof, the excess of the market value of 
one share of the Company's common stock on the date of exercise over a 
price specified at the date of grant.  At March 31, 1998, a total of 
235,000 Rights have been granted under the SAR Plan at grant prices 
ranging from $2.50-$3.00 per Right.  As of March 31, 1998, no Rights have 
been exercised.  The total appreciation value of all Rights granted as of 
March 31, 1998 was approximately $3,500.

(b)  Stock Option Plan

On February 6, 1990, the Board of Directors adopted the Nuclear 
Support Services, Inc. 1990 Stock Option Plan (the '1990 Plan') to 
provide incentive to key full-time employees and consultants of the 
Company.  Under the 1990 Plan, stock options could be granted for up 
to 416,897 shares of common stock.  Options granted under the 1990 
Plan are immediately exercisable and expire five years from the date 
of grant.  All stock options were granted at not less than the fair 
market value of the stock on the date granted.  The 1990 Plan was 
effective January 1, 1990 and expired December 31, 1994.  Options 
outstanding under the 1990 Plan remain exercisable by their terms 
after expiration of the Plan.

On February 8, 1991 the Board of Directors adopted the Directors Stock 
Option Program wherein Directors, at their election made in advance, 
could accept non qualified stock options in lieu of cash for all or a 
portion of Director compensation. Such options could be acquired at
the rate of 17% of the market value of the stock as of the date such 
compensation was payable. Options granted under this program were 
included in the 1990 Plan and are exercisable at the fair market value
of the stock on the date that each Directors compensation became 
payable. 


                                                               (Continued)

CANISCO RESOURCES, INC.
 (formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements

(10)  Continued

Following is a summary of activity in the 1990 Plan for the years ended
March 31, 1998 and 1997, the six months ended March 31, 1996, and the 
year ended September 30, 1995:
<TABLE>
<CAPTION>
                                                        Option price per share

                                                                      Weighted
                                                    Shares    Range    average
       <S>                                        <C>      <C>           <C>
        Options outstanding at 
          September 30, 1994                       397,632  $ 3.25-9.00   4.75
            Issued                                  11,258         4.12   4.12
            Canceled or expired                    (76,292)   3.25-7.13   4.40

        Options outstanding at
           September 30, 1995                      332,598    3.38-9.00   4.81
             Canceled or expired                   (43,805)   3.75-6.13   4.45

        Options outstanding at
           March 31, 1996                          288,793    3.38-9.00   4.87
             Exercised                              (1,350)        4.50   4.50
             Canceled or expired                   (38,696)   3.75-8.50   6.12

        Options outstanding and exercisable 
          at March 31, 1997                        248,747    3.38-9.00   4.68
             Canceled or expired                  (72,703)    4.63-9.00   5.71

        Options outstanding and exercisable at
          March 31, 1998                           176,044  $ 3.38-5.50   4.25
</TABLE>

                                                           (Continued)
CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements

(10)  Continued

The following table summarizes information about stock options 
outstanding at March 31, 1998:
<TABLE>
<CAPTION>
                                              Weighted
                                               average        Weighted
Range of                                     remaining         average
Exercise                   Number          contractual        exercise
Prices                outstanding                 life           price
<S>                      <C>                <C>             <C>
$ 3.38-5.00               127,593             9 months       $    3.78
  5.01-9.00                48,451            10 months            5.49
</TABLE>

(11)  Dispositions and Discontinued Operations

In February 1996, the Company sold certain operations of its NSS Numanco 
subsidiary.  The sale resulted in proceeds to the Company of $2,350,000 and 
a pretax gain of approximately $883,000.

During September 1995, the Company adopted plans to sell the operations of 
its Henze Services subsidiary. On June 4, 1996, the Company completed the 
sale of Henze which resulted in proceeds to the Company of $1,350,000 and a 
pretax loss of approximately $1,000,000.  Revenues from this subsidiary 
were $2,226,000, $4,964,000, and $14,567,000 for the year ended March 31, 
1997, the six months ended March 31, 1996, and the year ended September 30, 
1995, respectively.  Certain expenses have been allocated to discontinued 
operations, including interest expense, which was allocated based on the 
ratio of Henze net assets to the sum of total net assets of the 
consolidated Company plus consolidated debt. Interest expense allocated to 
discontinued operations for the year ended March 31, 1997, the six months 
ended March 31, 1996, and the year ended September 30, 1995 was $45,439, 
$183,937, and $255,702, respectively.


                                                          (Continued)

CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements

(12) Commitments and Contingencies

(a)  Legal Matters

The Company or its subsidiaries are involved in various claims and legal 
actions arising in the ordinary course of business.  In the opinion of 
management, the ultimate disposition of these matters will not have a 
material adverse effect on the Company's consolidated financial position.


(b)  Rental Agreements

The Company leases office space and various equipment under Operating 
leases which provide for minimum rentals as follows:

    Year                                      Amount
    1999                                 $   470,384
    2000                                     218,059
    2001                                     104,716
    2002                                      31,911

    Total minimum lease payments          $  825,070

Rental expense under all agreements for the year ended March 31, 1998, 
and 1997, the six months ended March 31, 1996, and the year ended 
September 30, 1995 was approximately $506,000, $490,000, $597,000, and 
$1,019,000, respectively.

(13)  Comparable Consolidated Statement of Operations Data (Unaudited)
Consolidated statements of operations data for the six-month period
ended March 31, 1995 is as follows:

                                                        1995
               Revenues from services            $  37,117,738
               Gross margin                          5,854,480
               Income tax benefit                     (976,780)
               Loss from continuing operations      (1,465,170)
               Loss from discontinued operations    (1,319,023)
               Net Loss                             (2,784,193)

               Loss per share                    $       (1.28)


CANISCO RESOURCES, INC.
(formerly Nuclear Support Services, Inc.)

Notes to Consolidated Financial Statements

(14)   Subsequent Events

On April 17, 1998, the Company amended its Credit Agreement (see Note 6) 
with its existing lender extending the credit limit to $25.0 million.  The 
amended facility includes a $5.0 million acquisition credit line.

On April 22, 1998, the Company purchased the stock of Mansfield Industrial 
Coatings Inc. ('Mansfield') of Pensacola, Florida for a purchase price of 
$7,216,000, consisting of cash and common stock.  In addition, an earnout 
agreement was entered into, whereby the Company may pay additional 
consideration of $750,000 over a three-year period depending on the results 
of operations of Mansfield.  Mansfield is a provider of painting, 
insulation, fireproofing, asbestos, and lead abatement services.  These 
services are provided to a broad range of industrial clients located 
throughout the southeastern and gulf coast regions of the United States.  
The acquisition will be accounted for as a purchase.


ITEM 9  CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS ON ACCOUNTING AND 
        FINANCIAL DISCLOSURES

        None


PART III


ITEM 10 DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The information required by Item 10 is presented under
captions "Election of Directors,"  "Executive Officers," 
and "Compliance with Section 16(a)" in the Company's Proxy 
Statement for the Annual Meeting of Shareholders to be 
held August 11, 1998 and is incorporated herein by 
reference.


ITEM 11 EXECUTIVE COMPENSATION

The information required by Item 11 presented under the
caption "Committees and Meetings, and under several 
captions commencing with "Executive Compensation" and 
continuing through and including "Performance Graph," in 
the Company's Proxy Statement for the Annual Meeting of 
Shareholders to be held August 11, 1998 and is 
incorporated herein by reference.


ITEM 12 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
        MANAGEMENT

The information required by Item 12 is presented under the
caption "Security Ownership of Certain Beneficial Owners 
and Management," in the Company's Proxy Statement for the 
Annual Meeting of Shareholders to be held August 11, 1998 
and is incorporated herein by reference.


ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 

The information required by Item 13 is presented under 
captions, "Compensation Committee Interlocks and Insider 
Participation," and "Certain Transactions," in the 
Company's Proxy Statement for the Annual Meeting of 
Shareholders to be held August 11, 1998 and is 
incorporated herein by reference.

PART IV

ITEM 14 EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
        REPORTS ON FORM 8-K

        A.  Reports on Form 8-K and other forms

            Form 8-K filed May 7, 1998 related to the acquisition 
            of Mansfield Industrial Coatings, Inc.

        B.  Exhibits

            Exhibit Number       Description of Document

            2.1                  Plan and Agreement of Merger by 
                                 and among Nuclear Support
                                 Services, Inc., NSS of Delaware, 
                                 Inc. and Canisco Resources, Inc. 
                                 (filed as exhibit 2.1 to the 
                                 Company's form 8-B filed May 24, 
                                 1996 and incorporated herein by 
                                 reference).

            2.2                  Agreement for purchase of stock 
                                 of Oliver B. Cannon & Son, Inc. 
                                 and Sline Industrial Painters,  
                                 Inc. (filed as Exhibit 2.1 to the
                                 Company's form 8-K dated November 
                                 19, 1993 and incorporated herein
                                 by reference.

            3.1                  Articles of Incorporation of the 
                                 Company, as amended (filed as
                                 exhibit 3.1 to Form 8-
                                 B filed May 24, 1996 and 
                                 incorporated herein by 
                                 reference).

            3.2                  By-laws of the Company (filed as 
                                 Exhibit 3.2 to Form 8-B filed May
                                 24, 1996 and incorporated herein 
                                 by reference).

            10.1                 1990 Stock Option Plan (filed as 
                                 Exhibit 28.2 to Registration
                                 Statement on Form S-8 
                                 (No. 33-33180) and incorporated 
                                 herein by reference)

            22                   Subsidiaries of the Registrant.

            23                   Accountants' Consent

            27                   Financial Data Schedule (EDGAR)

            99.1                 Index to Financial Statement 
                                 Schedule. 

            99.2                 Independent Auditors' Report -
                                 Schedule.

            99.3                 Schedule II - Valuation and 
                                 Qualifying Accounts.

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the 
Securities Exchange Act of 1934, Registrant has duly caused this 
Annual Report to be signed on its behalf by the undersigned, 
thereunto duly authorized.

DATE:  June 25, 1998                   

CANISCO RESOURCES, INC.

/s/ Ralph A. Trallo
Ralph A. Trallo
President and
Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1934, this 
report has been signed below by the following persons, on behalf of 
the Registrant and in the capacities and on the dates indicated:

SIGNATURE                            CAPACITY                 DATE


/s/Donald E. Lyons                   Chairman of the Board    June 25, 1998


/s/Dale L. Ferguson                  Director                 June 25, 1998


/s/Wm. Lawrence Petcovic             Director                 June 25, 1998


/s/Thomas P. McShane                 Director                 June 25, 1998


/s/ Joe C. Quick                     Director                 June 25, 1998


/s/ Ralph A. Trallo                  President, CEO           June 25, 1998


/s/ Michael J. Olson                 Chief Financial Officer  June 25, 1998