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 nine month period ended             December 31, 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 February 1, 1999
   -----------------------                   ---------------------------------
(Common stock, $0.10 par value)                           1,104,940

Transitional Small Business Disclosure Format (Check one):  Yes ________ No  X
<PAGE>
                                SKLAR CORPORATION


                                      INDEX



                                                                       Page No.

Part I   Financial Information

         Balance Sheet -
                  December 31, 1998 and March 31, 1998                      3

         Statement of Income (Loss) -
                  three and nine months ended December, 1998 and 1997       4

         Statement of Cash Flows -
                  nine months ended December 31, 1998 and 1997              5

         Notes to condensed financial statements                        6 - 9

         Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                 10 - 12


Part II   Other Information

         Item 1         Legal Proceedings                                  12

         Item 3         Defaults Upon Senior Securities                    12

         Item 5         Other Information                                  12

         Item 6         Exhibits and Reports on form 8-K                   13


                                       2
<PAGE>
                                SKLAR CORPORATION
                                  BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS                                                       12/31/98       3/31/98
                                                           (UNAUDITED)
CURRENT ASSETS:
<S>                                                        <C>            <C>       
     Cash                                                  $  254,872     $   12,885
     Accounts Receivable                                    2,234,935      2,547,506
     Inventories (Note 5)                                   3,309,024      3,142,043
     Prepaid Expenses                                         275,561        199,262
                                                           ----------     ----------
TOTAL CURRENT ASSETS                                        6,074,392      5,901,696
EQUIPMENT AND IMPROVEMENTS (Note 6)                           619,933        630,264
GOODWILL (Note 7)                                             536,367        879,830
OTHER ASSETS                                                        0        106,636
                                                           ----------     ----------
TOTAL ASSETS                                               $7,230,692     $7,518,426
                                                           ==========     ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
     Cash Overdraft                                        $   12,648     $  294,816
     Short-term Bank Borrowings (Note 2)                    1,098,000      2,085,000
     Current Portion-Long-Term Debt and
         Capital Lease Obligations                            131,250        232,214
     Trade Accounts Payable                                 2,963,990      2,100,424
     Accrued Expenses                                         226,844        270,794
     Accrued Income Taxes                                      25,002          2,509
                                                           ----------     ----------
TOTAL CURRENT LIABILITIES                                   4,457,734      4,985,757

     Long-term Debt and Capital Lease Payable                  19,641         90,337
                                                           ----------     ----------
TOTAL LIABILITIES                                           4,477,375      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 22,078 shares outstanding               248            248
     Series A subordinate convertible preferred stock,
       no par value, authorized 4,000 shares; issued
       and outstanding                                              0              0 
     Common stock, par value $.10 per share,
        authorized 1,500,000 shares; 1,297,952 issued,
        1,104,940 and 754,940 outstanding at
        12/31/98 and 3/31/98 respectively                     129,795        123,771
     Additional Paid-in Capital                             2,159,958      2,106,482
     Retained earnings                                        614,354        362,869
                                                           ----------     ----------
                                                            2,904,355      2,593,370
                                                           ----------     ----------
     Less treasury stock                                      151,038        151,038
                                                           ----------     ----------
     TOTAL STOCKHOLDER'S EQUITY                             2,753,317      2,442,332
                                                           ----------     ----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY                   $7,230,692     $7,518,426
                                                           ==========     ==========
</TABLE>
                        See notes to financial statements

                                       3
<PAGE>
                                SKLAR CORPORATION
                           STATEMENTS OF INCOME (LOSS)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                             3 Months Ended                  9 Months Ended
                                      12/31/98          12/31/97        12/31/98          12/31/97
Revenues:
<S>                               <C>               <C>              <C>              <C>         
  Net Sales (Note 10)              $  3,694,502      $  3,402,914     $ 10,346,369     $ 10,306,783

Cost and Expenses:
  Cost of Goods Sold                  2,176,993         1,943,850        5,730,016        5,876,449
  Selling, General & Admin            1,389,866         1,254,914        4,168,180        3,983,422
  Interest                               58,945           100,158          164,689          310,306
                                   ------------      ------------     ------------     ------------

                                      3,625,804         3,298,922       10,062,885       10,170,177
                                   ------------      ------------     ------------     ------------

  Income before taxes                    68,698           103,992          283,484          136,606

Provision for Income Taxes
  Currently Payable (Note 8)              3,104            10,400           32,000           13,661
                                   ------------      ------------     ------------     ------------

Net Income                               65,594            93,592          251,484          122,945
                                   ------------      ------------     ------------     ------------

Preferred Dividend
Requirement (Note 9)                     68,994            68,994          206,982          206,982
                                   ------------      ------------     ------------     ------------

Income (Loss) Applicable to
Common Shares                            (3,404)           24,598           44,502          (84,037)
                                   ------------      ------------     ------------     ------------

Per Share Data:

Weighted Average Common Shares
Outstanding
                                        902,766           754,940          823,485          754,940
                                   ------------      ------------     ------------     ------------

Gain (Loss) Per Share              $       0.00      $       0.03     $       0.05     $      (0.11)
                                   ============      ============     ============     ============
  (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 Nine Months Ended
                                                       12/31/98           12/31/97
<S>                                                  <C>              <C>        
Net Cash Provided (used) by Operating Activities       1,732,627          445,569

Net Cash Provided (Used) by Investing Activities         (49,680)        (179,979)

Net Cash Provided (Used) by Financing Activities      (1,398,937)        (179,081)
                                                     -----------      -----------

Net Increase/(Decrease) in Cash                          284,010           86,509
Cash at Beginning of Period                               12,885            7,506
                                                     -----------      -----------
Cash at End of Period                                $   296,895      $    94,015
                                                     ===========      ===========
</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 December
31, 1998 and the results of operations  and cash flows for the nine month period
then ended.

NOTE 2   SHORT-TERM BANK BORROWINGS

On December 4, 1998 the Company  entered into a loan and security  agreement for
$2,000,000,  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  December  31,  1998  borrowing  totaled
$4,057,195.  Unused  available  credit at December 31, 1998 was  $647,505  after
considering outstanding letters of credit totaling $101,520.

Borrowings  from this line bear  interest at the Bank's Prime Rate.  At December
31,  1998 the Prime Rate was 7.75%.  The  interest  expense on  short-term  bank
borrowings  for the nine months  ended  December  31, 1998 and 1997  amounted to
$114,590 and $203,445, respectively.

The full  value of the note is  guaranteed  personally  by the  Company's  Chief
Financial Officer.

NOTE 3   LONG-TERM DEBT 

The  original  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
originally 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  then  amended  credit line  agreement,  $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.  The cash payment was made February XX, 1999.  This agreement had 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.

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.

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.

                                       7
<PAGE>
                                SKLAR CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 8   INCOME TAXES, continued

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 December 31, 1998,  of the  1,500,000  shares of Common Stock  authorized,
1,104,940 were outstanding.  Of the Series A Convertible Preferred Stock, 35,000
were authorized and 22,078 shares 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 INCOME/(LOSS) PER SHARE

Net  income/(loss)  per share is  computed  by  dividing  the net  income/(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.

NOTE 13  SUBSEQUENT EVENT

The Company filed a preliminary  proxy  statement and a Schedule  13-E3 with the
Commission on January 14, 1999 for the purpose of  effectuating  a reverse split
of its common  stock.  If  effected,  it will allow the Company to cease to be a
reporting company under Section 12.

                                       8
<PAGE>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Interest paid  amounted to $127,401 in the nine months ended  December 31, 1998,
and $151,273 in the nine months ended December 31, 1997.

Income  taxes paid  amounted to $49,261 in the nine months  ended  December  31,
1998, and $30,895 in the nine months ended December 31, 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 nine months ended December 31

                                 1998            1997
                                 ----            ----
Net Sales                       100.0%          100.0%
Cost of Sales                    55.4            57.0
Gross Profit                     44.6            43.0
Selling, General and
  Admin. Expenses                40.3            38.7
Income Before
  Interest & Taxes                4.3             4.3
Interest Expense                  1.6             3.0
Income Before
  Income Taxes                    2.7             1.3
Net Income                        2.4             1.2

SALES

For the nine month  period ended  December  31, 1998  compared to the nine month
period ended December 31, 1997,  sales  increased  $39,586 or .4%. This increase
reflects the effect of competitive market pressures.

COST OF SALES

Cost of sales as a percentage of sales  decreased 1.6% for the nine month period
ended  December 31, 1998  compared to the nine month  period ended  December 31,
1997. This decrease results primarily from the mix of products sold.

                                       10
<PAGE>
                                SKLAR CORPORATION
                       MANAGEMENT DISCUSSION AND ANALYSIS

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling,  General and  Administrative  expenses  for the nine month period ended
December  31, 1998 have  increased  $184,758 or 4.6% from the nine month  period
ended December 31, 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  $145,617  or 46.9% for the nine month  period  ended
December 31, 1998 compared to the nine month period ended  December 31, 1997 due
to a  reduction  in the  outstanding  line of  credit  and term  debt  funded by
operations and inventory and accounts receivable reductions as well as increases
in trade accounts payable.

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  is  considered  adequate  to meet the
financing requirements of the Company in the foreseeable future.

YEAR 2000 COMPLIANCE

The company has retained a consulting  firm to assist the company in determining
any Year 2000  weaknesses and to aid the company in converting  its  information
systems  from a  mainframe/mini  computer  based  system  to a NT SQL  compliant
database  system.  The company uses a management  information  system to process
orders,  and  to  control  the  purchasing  and  distribution  functions  of the
company's  business.  Additionally  the system provides  information and reports
that  management  needs to monitor the operations  and make informed  decisions.
Management has done preliminary  tests on the current  application  software and
underlying  database and found it to be Year 2000  compliant.  It is anticipated
that full conversion to new hardware, software and operating environment will be
completed by June of 1999,  with the final  testing to be completed by September
1999. Support software including Sales Management software, Accounting software,
EDI software and General Office  software is the most current  versions,  all of
which were  purchased  and  installed  during  1997  through  1999.  The company
believes  these to be fully  compliant.  Testing of these products will occur in
the 3rd quarter of 1999.

The  company's  consulting  firm will be  communicating  with key  customers  to
coordinate  Year  2000  compliance  with the EDI  transmissions.  The  company's
products contain no electronic parts and therefore, no compliance issues exist.

                                       11
<PAGE>
YEAR 2000 COMPLIANCE, continued

While no Year 2000 problems have been found to date, the possibility exists that
year 2000 software  problems could exist in the company's  systems and there are
no  assurances  that  required  modifications  would be completed  on time.  The
failure  to  correct a YEAR 2000  problem  could  result in an  interruption  of
certain normal business activities and operations.

                           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,
Charles  Wilson.  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 Summons
against  Wilson,  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 Wilson 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,  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.

                                       12
<PAGE>
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.



                                       13
<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

February 19, 1999