FORM 10-QSB
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

For the six month period ended   September 30, 1998

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934
For the transition period from __________________ to __________________

Commission file number          1-6107

                                SKLAR CORPORATION
             (Exact name of registrant as specified in its charter)

        Pennsylvania                                     44-0625447
(State or other jurisdiction of                (I.R.S. Employer Identification
incorporation or organization)                             Number)

889 S. Matlack Street, West Chester, Pennsylvania          19382
(Address of principal executive offices)                (Zip Code)

Issuer's telephone number            (610) 430-3200

     Check whether the issuer (l) 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

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes ________ No ________

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date.

              Class                          Outstanding  October 1, 1998
------------------------------------         -----------------------------
  (Common stock, $0.10 par value)                    794,423

Transitional Small Business Disclosure Format (Check one):  Yes ___   No  X


<PAGE>
                                SKLAR CORPORATION


                                      INDEX



                                                                        Page No.

Part I   Financial Information

         Balance Sheet -
                  September 30, 1998 and March 31, 1998 ..................  3

         Statement of Income (Loss) -
                  three and six months ended September 30, 1998 and 1997 .  4

         Statement of Cash Flows -
                  six months ended September 30, 1998 and 1997 ..........   5

         Notes to condensed financial statements ........................ 6 - 9

         Management's Discussion and Analysis of Financial
                  Condition and Results of Operations ..................10 - 11


Part II   Other Information

         Item 1    Legal Proceedings .................................. 11 - 12

         Item 3    Defaults Upon Senior Securities ....................    12

         Item 5    Other Information ..................................    12

         Item 6    Exhibits and Reports on form 8-K ...................    12

                                       2
<PAGE>
                                SKLAR CORPORATION
                                  BALANCE SHEET

<TABLE>
<CAPTION>
ASSETS                                                       9/30/98        3/31/98
                                                           (UNAUDITED)
<S>                                                        <C>            <C>       
CURRENT ASSETS:
     Cash                                                  $   71,910     $   12,885
     Accounts Receivable                                    2,240,804      2,547,506
     Inventories (Note 5)                                   3,167,605      3,142,043
     Prepaid Expenses                                         218,799        199,262
                                                           ----------     ----------
TOTAL CURRENT ASSETS                                        5,699,118      5,901,696
EQUIPMENT AND IMPROVEMENTS (Note 6)                           632,284        630,264
GOODWILL (Note 7)                                             558,468        879,830
OTHER ASSETS                                                   54,714        106,636
                                                           ----------     ----------
TOTAL ASSETS                                               $6,944,584     $7,518,426
                                                           ==========     ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
     Cash Overdraft                                        $   74,028     $  294,816
     Short-term Bank Borrowings (Note 2)                    1,144,000      2,085,000
     Current Portion-Long-Term Debt and
         Capital Lease Obligations                            131,250        232,214
     Trade Accounts Payable                                 2,617,187      2,100,424
     Accrued Expenses                                         265,820        270,794
     Accrued Income Taxes                                      46,405          2,509
                                                           ----------     ----------
TOTAL CURRENT LIABILITIES                                   4,278,690      4,985,757

     Long-term Debt and Capital Lease Payable                  23,172         90,337
                                                           ----------     ----------
TOTAL LIABILITIES                                           4,301,862      5,076,094
                                                           ----------     ----------

CONTINGENCIES                                                       0              0

STOCKHOLDERS' EQUITY (Note 9):
     Series A convertible preferred stock, par value
       $.01 per share, authorized, 35,000 shares;
       24,825 issued  and 21,954 shares outstanding               248            248
     Series A subordinate convertible preferred stock,
       no par value, authorized 4,000 shares; issued
       and outstanding -0-                                          0              0
     Common stock, par value $.10 per share,
        authorized 1,500,000 shares; 1,237,711 issued
        and 794,423 outstanding                               123,771        123,771
     Additional Paid-in Capital                             2,106,482      2,106,482
     Retained earnings                                        563,259        362,869
                                                           ----------     ----------

                                                            2,793,760      2,593,370
                                                           ----------     ----------

     Less treasury stock                                      151,038        151,038
                                                           ----------     ----------

     TOTAL STOCKHOLDER'S EQUITY                             2,642,722      2,442,332
                                                           ----------     ----------

TOTAL LIABILITIES & STOCKHOLDER'S EQUITY                   $6,944,584     $7,518,426
                                                           ==========     ==========
</TABLE>

                        See notes to financial statements

                                       3
<PAGE>
                                SKLAR CORPORATION
                           STATEMENTS OF INCOME (LOSS)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                         3 Months Ended                    6 Month Ended
                                     9/30/98         9/30/97         9/30/98          9/30/97
<S>                                <C>             <C>             <C>             <C>        
Revenues:
  Net Sales (Note 10)              $ 3,418,405     $ 3,428,446     $ 6,651,867     $ 6,903,869

Cost and Expenses:
  Cost of Goods Sold                 1,713,183       1,963,135       3,553,023       3,932,599
   Selling, General & Admin          1,465,203       1,275,390       2,763,814       2,728,508
  Interest                              49,692         111,171         105,744         210,148
                                   -----------     -----------     -----------     -----------

                                     3,228,078       3,349,696       6,422,581       6,871,255
                                   -----------     -----------     -----------     -----------

  Income (Loss) before taxes           190,327          78,750         229,286          32,614

Provision for Income Taxes
  Currently Payable (Note 8)            25,000           3,261          28,896           3,261
                                   -----------     -----------     -----------     -----------

Net Income (Loss)                      165,327          75,489         200,390          29,353
                                   -----------     -----------     -----------     -----------

Preferred Dividend
Requirement (Note 9)                    68,607          68,607         137,213         137,213
                                   -----------     -----------     -----------     -----------

Gain (Loss) Applicable to
Common Shares                           96,720           6,882          63,177        (107,860)
                                   -----------     -----------     -----------     -----------

Per Share Data:

Weighted Average Common Shares
Outstanding                            794,423         744,423         773,112         744,423
                                   -----------     -----------     -----------     -----------

Gain (Loss) Per Share              $      0.12     $      0.01     $      0.08     $     (0.14)
                                   ===========     ===========     ===========     ===========
  (Note 11)
</TABLE>

                        See notes to financial statements

                                       4
<PAGE>
                                SKLAR CORPORATION
                            STATEMENTS OF CASH FLOWS
                           INCREASE (DECREASE) IN CASH
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                        For the Six Months Ended
                                                        9/30/98          9/30/97

<S>                                                 <C>                <C>    
Net Cash Provided (used) by Operating Activities       1,470,770          163,225


Net Cash Provided (Used) by Investing Activities         (81,693)         (77,856)

Net Cash Provided (Used) by Financing Activities      (1,330,052)         (59,862)
                                                     -----------      -----------

Net Increase/(Decrease) in Cash                           59,025           25,507
Cash at Beginning of Period                               12,885            7,506
                                                     -----------      -----------

Cash at End of Period                                $    71,910      $    33,013
                                                     ===========      ===========
</TABLE>


                        See notes to financial statements

                                       5
<PAGE>
                                SKLAR CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE 1   MANAGEMENT'S REPRESENTATION

In the opinion of Management,  the unaudited  financial  statements  contain all
adjustments  necessary to present fairly the financial  position as of September
30, 1998 and the results of operations and cash flows for the period then ended.

NOTE 2   SHORT-TERM BANK BORROWINGS

On June 4, 1996 the  Company  entered  into an  amended  and  restated  loan and
security  agreement  for  $3,750,000,  which  reduced to $3,000,000 on March 31,
1997, and is collateralized by the sum of 80% of qualifying  accounts receivable
plus 50% of inventories.  Borrowings based on eligible  inventories may comprise
up to 50% of the outstanding credit line amount.  Qualifying accounts receivable
and  inventory  used as a basis for the  September  30, 1998  borrowing  totaled
$5,060,949.  Unused  available credit at September 30, 1998 was $1,178,950 after
considering  outstanding  letters of credit  totaling  $34,640 and a $20% market
risk reserve on forward currency contracts totaling $83,610.

Borrowings from this line bear interest at the Bank's  National  Commercial Rate
(BNCR) plus 1.25% (one and one-quarter  percent). At September 30, 1998 the BNCR
was 8.5%. The interest  expense on short-term bank borrowings for the six months
ended   September   30,  1998  and  1997   amounted  to  $75,243  and  $137,963,
respectively.

The short-term  borrowing  facility  requires the Company to comply with certain
restrictive  covenants,  including  maintenance of various financial ratios. The
note is  guaranteed by the  Company's  president  including an assignment of his
company common and preferred stock.

NOTE 3   LONG-TERM DEBT

The contract  under which Dental  Corporation  of America (DCA) was acquired was
renegotiated  in April 1992.  The  renegotiated  contract,  among other  things,
changed  the  payment  terms from three  fixed  $100,000  annual  payments  plus
interest and  royalties  based upon future sales to a fixed  monthly  payment of
$12,000 for one year  commencing  April 1, 1992 followed by a monthly payment of
$5,000 for six years commencing April 1, 1993. The gross payments and associated
liability under the new agreement are  substantially  the same as to those which
were recorded,  including  interest,  upon the acquisition of DCA.  Accordingly,
there has been no change to the financial  statements  in  connection  with this
renegotiation.  The new agreement did however  change the aggregate  prospective
maturities.  The Company has not made  payments  against this  obligation  since
September  1996,  but continues to reflect the liability  (See Item 1 (A), Legal
Matters under Part II, Other Information).

NOTE 4   BUSINESS OPERATIONS

The Company  imports and  distributes  under the Sklar,  Misdom-Frank  and other
trademarks hand-held,  non-electronic  instruments for the surgical,  dental and
veterinary fields.

                                       6

<PAGE>

                                SKLAR CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 4   BUSINESS OPERATIONS, continued

Effective May 31, 1996, the Company  acquired certain assets and assumed certain
liabilities of Surgical Medical Specialists,  Inc. (SMS) in a transaction valued
at  $3,306,791.  The purchase  price was  allocated  $1,999,347 to inventory and
$1,307,444 to goodwill.  The purchase was financed by  $1,700,000  drawn against
the Company's  amended  credit line  agreement with  CoreStates  Bank,  $900,386
assumption of SMS vendor liabilities,  subject to the agreement, and $706,405 of
notes payable to the seller.  Subsequent to the  acquisition  it was  determined
certain  inventory may have been  misrepresented  or mislabeled and could not be
sold in the United States in accordance with regulations of the U.S. Customs and
Food and Drug Administration.

During the fiscal year ended March 31, 1998,  settlements  were reached with the
seller and one of the vendors included in the original assumed liabilities.  The
settlement  transactions  included a cash payment from the seller, cash payments
to a vendor by the seller and the company and a reduction of  liabilities to the
seller and vendors.  These  transactions  were  accounted  for by an  offsetting
reduction of goodwill.

During the six months ended  September  30, 1998,  an agreement was reached with
another vendor included in the original assumed  liabilities which encompasses a
cash payment of $120,000, in complete satisfaction of liabilities  approximating
$470,000 to be made prior to December 31, 1998. This agreement has been recorded
at September 30, 1998 as a reduction of goodwill.

NOTE 5   INVENTORIES

Inventories  are  stated at the lower of cost  (first-in,  first-out  method) or
market.

NOTE 6   EQUIPMENT AND IMPROVEMENTS

Equipment and improvements are stated at cost less accumulated  depreciation and
amortization.  Depreciation  and  amortization  are  provided  generally  on the
straight-line  method over the useful lives of the assets which are estimated to
be three to ten years for  equipment and the shorter of the life of the lease or
the life of the asset for leasehold improvements.

NOTE 7   GOODWILL AND CATALOG DEVELOPMENT COSTS

Goodwill is  amortized  over fifteen or twenty  years.  For the six months ended
September 30, 1998, the goodwill  originally  booked upon the acquisition of DCA
was reduced by $50,000 to reflect  the  decrease  in value  consistent  with the
declining volume in that business.

Prior to fiscal year 1996 costs incurred in creating, producing and distributing
new and existing  catalogs  were added to other assets and  amortized at various
schedules  ranging  from 1-5  years.  Subsequent  to fiscal  year  1995  catalog
development costs are expensed as incurred.

                                       7

<PAGE>

                                SKLAR CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE 8   INCOME TAXES

Income taxes  represent  the State tax due.  Federal  income  taxes  payable are
offset by net operating loss  carry-forwards and goodwill is reduced accordingly
to  reflect  the   utilization   of  the  loss   carry-forwards.   No  tax  loss
carry-forwards exist to offset state income tax payable.

As a  result  of the  merger  of  Medco  Jewelry  Corporation  and  Misdom-Frank
Corporation,  management  believes  there  may be  federal  net  operating  loss
carry-forwards available to Medco Jewelry Corporation at the date of merger that
have transferred to Sklar Corporation.  Such loss  carry-forwards and additional
post-merger operating losses totaling approximately $1,036,000,  which expire in
1999 ($50,000),  2000  ($14,000),  2001  ($461,000),  and 2002  ($511,000),  are
available as deductions from federal taxable income of future years.

NOTE 9   STOCKHOLDERS' EQUITY

As of September 30, 1998, of the  1,500,000  shares of Common Stock  authorized,
794,423 are outstanding.  Of the Series A Convertible  Preferred  Stock,  21,954
shares are authorized and outstanding.

The Series A  Convertible  Preferred  Stock may be redeemed by the Company after
March 1,  1986 at a price of $100 per  share and is  entitled  to a  liquidation
preference  of $100 per share plus  cumulative  dividends.  Annual  dividends of
$12.50 per share accrue cumulatively on the Series A Convertible Preferred Stock
commencing on July 1, 1984,  payable on June 30 of each year commencing June 30,
1985. No dividends have been declared in the years 1988 through 1998.

NOTE 10   SALES

A sale is recorded when title to the product passes to the customer.

NOTE 11   NET LOSS PER SHARE

Net loss per share is  computed by dividing  the net loss  applicable  to common
shares by the  weighted  average  number of shares of Common  Stock  outstanding
after giving effect to the ratably  accrued  preferred  dividend.  No effect has
been given to Common Stock equivalent shares as such would be anti-dilutive.

NOTE 12   CASH FLOW INFORMATION

For purposes of the statement of cash flows, the Company  considers cash in bank
and on hand as cash equivalents.

                                       8
<PAGE>
                                SKLAR CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Interest paid  amounted to $102,997 in the six months ended  September 30, 1998,
and $151,273 in the six months ended September 30, 1997.

Income  taxes paid  amounted to $22,051 in the six months  ended  September  30,
1998, and $8,500 in the six months ended September 30, 1997.

                                       9
<PAGE>
                                SKLAR CORPORATION
                       MANAGEMENT DISCUSSION AND ANALYSIS


The following  discussion and analysis  provides  information  which  management
believes is relevant to an assessment and understanding of the Company's results
of  operations  and  financial  condition.  The  discussion  should  be  read in
conjunction with the financial  statements and notes thereto appearing elsewhere
herein.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, the percentage of net
sales for certain items in the Company's Statements of Income for each period:

Income and Expense Items as Percentage of
Net Sales for the six months ended September 30

                           1998        1997

Net Sales                  100.0%     100.0%
Cost of Sales               53.4       57.0
Gross Profit                46.6       43.0
Selling, General and
  Admin. Expenses           41.6       39.5
Income Before
  Interest & Taxes           5.0        3.5
Interest Expense             1.6        3.0
Income Before
  Income Taxes               3.4        0.5
Net Income (Loss)            3.0        0.4

SALES

For the six month  period  ended  September  30, 1998  compared to the six month
period ended September 30, 1997, sales were down $252,002 or 3.7%. This decrease
reflects the competitive market pressures.

COST OF SALES

Cost of sales as a percentage of sales  decreased  3.6% for the six month period
ended  September 30, 1998  compared to the six month period ended  September 30,
1997.  This  decrease  results  primarily  from  the mix of  products  sold  and
favorable currency fluctuations.

                                       10
<PAGE>
                                SKLAR CORPORATION
                       MANAGEMENT DISCUSSION AND ANALYSIS


SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling,  General and  Administrative  expenses  for the six month  period ended
September  30,  1998 have  increased  $35,306 or 1.3% from the six month  period
ended June 30,  1997.  The  increase  in these  expenditures  is a result of the
Company's  commitment to an increased  marketing and advertising  effort and the
resulting  increased  personnel and  advertising  costs.  Management  expects to
continue this level of expenditure in future periods.

INTEREST

Interest  costs  decreased  $104,404  or 49.7%  for the six month  period  ended
September 30, 1998 compared to the six month period ended September 30, 1997 due
to a  reduction  in the  outstanding  line of  credit  and term  debt  funded by
operations and inventory and accounts receivable reductions.

INCOME TAXES

Federal  income tax  expense is reduced  in both  periods by the  available  net
operating loss  carry-forwards.  Income tax expense  represents the state income
tax payable.

LIQUIDITY AND CAPITAL RESOURCES

The  Company's  revolving  line of credit  with  CoreStates  Bank is  considered
adequate to meet the financing  requirements  of the Company in the  foreseeable
future.


                           PART II - OTHER INFORMATION

ITEM 1   LEGAL MATTERS

The Company filed suit in 1992 against the former principal of DCA for violating
the  terms  of a  non-compete  agreement  signed  as  part  of  a  re-negotiated
settlement for the purchase of DCA. The suit seeks the return of all monies paid
to the former  principal.  The case is  currently  under  appeal to the Superior
Court of Pennsylvania and no assessment of the outcome of the case has been made
by  counsel.  Payments  for  DCA  have  been  suspended  since  September  1996.
Settlement  was reached prior to arbitration in the matter of the asset purchase
agreement  with SMS.  The  settlement  was to the  satisfaction  of the  Company
although certain  inventory has been written off as a result of its non-saleable
properties. Certain other inventory may be written off as well.

The  Company  filed  suit in the  Court of  Common  Pleas  for  Chester  County,
Pennsylvania against an entity knows as "Endo-Surgical  Systems,  Inc." ("ENDO")
in February of 1998. Endo is controlled by the Company's former Controller.  The
suit  alleges  misappropriation  of  trade  secrets  and  conversion,   tortious
interference with existing contractual relations, and tortious interference with
prospective  economic  advantage.  Injunctive  relief is sought in  addition  to
damages,  costs,  and fees.  In December of 1997,  the company also filed in the
court of Common Pleas for Chester  County,  a Writ of 

                                       11
<PAGE>

Summons  against  the  former  controller,  personally.  The  Company  has since
conducted  a  fact-finding  effort.  A complaint  was filed in May of 1998.  The
complaint  alleges  at this  juncture,  among  other  things,  that  the  former
Controller  has  violated  the  standards  of conduct in the  practice of public
accounting  and engaged in  misappropriation  of trade  secrets and  conversion,
breach of fiduciary duties and confidential relationship,  tortious interference
with existing contractual relationships,  tortious interference with prospective
economic advantage,  defamation and trade libel,  breach of contract,  and fraud
and misrepresentation. Injunctive relief, damages, costs and fees are sought.

ITEM 3   DEFAULTS UPON SENIOR SECURITIES

As reported in  registrant's  form 10-Q for the quarter ended  December 31, 1985
and as further discussed in Note 9 to the financial  statements,  the registrant
did not  declare a dividend on its  cumulative  Series A  Convertible  Preferred
Stock on June 30, 1988 through 1998.

ITEM 5   OTHER INFORMATION

The  registrant  filed Form 15 on June 30, 1998 to deregister  its Common Shares
and Series A Convertible Preferred Stock.

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K

(b) No  reports on Form 8-K have been filed  during the  quarter  for which this
report is filed.

                                       12
<PAGE>
                                    SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  the  report  to be  signed  on its  behalf  by the
undersigned thereunto duly authorized.



SKLAR CORPORATION


/S/Michael Malinowski
MICHAEL MALINOWSKI
CHIEF FINANCIAL OFFICER

November 20, 1998