SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                  ---------------------------------------

                                    FORM 10-Q

(mark one)

[ X ]   Quarterly  Report  Pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934 for the Quarter Ended July 4, 1998.

[   ]   Transition Report Pursuant to Section 13 or 15(d) of the Securities
        Exchange Act of 1934.

                         Commission File Number 1-13975

                                ONIX SYSTEMS INC.
             (Exact name of Registrant as specified in its charter)

Delaware                                                           76-0546330
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                            Identification No.)

22001 North Park Drive
Kingwood, Texas                                                    77339-3804
(Address of principal executive offices)                           (Zip Code)

     Registrant's telephone number, including area code: (781) 622-1000

        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  the  number  of  shares  outstanding  of each of the  issuer's
        classes of Common Stock, as of the latest practicable date.

                Class                   Outstanding at July 31, 1998
     ----------------------------       ----------------------------
     Common Stock, $.01 par value                15,606,337

<PAGE>


PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

                                ONIX SYSTEMS INC.

                           Consolidated Balance Sheet
                                   (Unaudited)

                                     Assets


                                                      July 4,   January 3,
(In thousands)                                           1998         1998
--------------------------------------------------------------------------

Current Assets:
  Cash and cash equivalents (includes $44,890
    and $19,618 under repurchase agreement
    with affiliated company)                         $ 48,496     $ 24,960
  Accounts receivable, less allowances of
    $1,939 and $2,155                                  35,522       32,583
  Inventories:
    Raw materials and supplies                         17,399       18,095
    Work in process                                     9,723        8,033
    Finished goods                                      5,438        6,804
  Deferred tax asset and other current assets           5,223        4,563
                                                     --------     --------

                                                      121,801       95,038
                                                     --------     --------

Property, Plant, and Equipment, at Cost                14,887       14,413
  Less: Accumulated depreciation and amortization       6,486        5,268
                                                     --------     --------
                                                        8,401        9,145
                                                     --------     --------
Other Assets                                              320           87
                                                     --------     --------

Cost in Excess of Net Assets of Acquired Companies     55,730       55,439
                                                     --------     --------

                                                     $186,252     $159,709
                                                     ========     ========

                                       2
<PAGE>

                                ONIX SYSTEMS INC.

                   Consolidated Balance Sheet (continued)
                                   (Unaudited)

                  Liabilities and Shareholders' Investment


                                                      July 4,   January 3,
(In thousands except share amounts)                      1998         1998
--------------------------------------------------------------------------

Current Liabilities:
  Accounts payable                                   $  8,968     $ 12,775
  Accrued payroll and employee benefits                 3,456        3,811
  Accrued income taxes                                  4,796        3,455
  Deferred revenue                                      2,690        3,624
  Other accrued expenses                                8,310        9,918
  Due to parent company and affiliated companies        2,640       19,508
                                                     --------     --------

                                                       30,860       53,091
                                                     --------     --------

Deferred Income Taxes                                   1,680        1,680
                                                     --------     --------

Shareholders' Investment (Note 2):
  Common stock, $.01 par value, 50,000,000
    shares authorized; 15,606,337 and 12,306,337
    shares issued and outstanding                         156          123
  Capital in excess of par value                      144,121      100,966
  Retained earnings                                     8,570        3,150
  Accumulated other comprehensive income (Note 4)         865          699
                                                     --------     --------

                                                      153,712      104,938
                                                     --------     --------

                                                     $186,252     $159,709
                                                     ========     ========


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       3
<PAGE>

                                ONIX SYSTEMS INC.

                        Consolidated Statement of Income
                                   (Unaudited)


                                                        Three Months Ended
                                                        ------------------
                                                        July 4,   June 28,
(In thousands except per share amounts)                    1998       1997
--------------------------------------------------------------------------

Revenues                                                $38,439    $28,962
                                                        -------    -------

Costs and Operating Expenses:
  Cost of revenues                                       21,930     17,079
  Selling, general, and administrative expenses           9,529      6,762
  Research and development expenses                       2,388      1,550
                                                        -------    -------

                                                         33,847     25,391
                                                        -------    -------

Operating Income                                          4,592      3,571

Interest Income                                             717          -
Interest Expense, Related Party                             (16)         -
                                                        -------    -------

Income Before Provision for Income Taxes                  5,293      3,571
Provision for Income Taxes                                2,090      1,436
                                                        -------    -------

Net Income                                              $ 3,203    $ 2,135
                                                        =======    =======

Basic and Diluted Earnings per Share (Note 3)           $   .21    $   .20
                                                        =======    =======

Weighted Average Shares (Note 3):
  Basic                                                  15,606     10,667
                                                        =======    =======
  Diluted                                                15,610     10,667
                                                        =======    =======

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.




                                       4
<PAGE>

                                ONIX SYSTEMS INC.

                        Consolidated Statement of Income
                                   (Unaudited)


                                                         Six Months Ended
                                                        July 4,   June 28,
(In thousands except per share amounts)                    1998       1997
--------------------------------------------------------------------------

Revenues                                                $75,583    $55,391
                                                        -------    -------

Costs and Operating Expenses:
  Cost of revenues                                       43,554     33,082
  Selling, general, and administrative expenses          19,162     13,054
  Research and development expenses                       4,565      2,999
                                                        -------    -------

                                                         67,281     49,135
                                                        -------    -------

Operating Income                                          8,302      6,256

Interest Income                                             976          -
Interest Expense, Related Party                            (277)         -
                                                        -------    -------

Income Before Provision for Income Taxes                  9,001      6,256
Provision for Income Taxes                                3,581      2,515
                                                        -------    -------

Net Income                                              $ 5,420    $ 3,741
                                                        =======    =======

Basic and Diluted Earnings per Share (Note 3)           $   .39    $   .35
                                                        =======    =======

Weighted Average Shares (Note 3):
  Basic                                                  14,065     10,667
                                                        =======    =======
  Diluted                                                14,070     10,667
                                                        =======    =======


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.



                                       5
<PAGE>

                                ONIX SYSTEMS INC.

                      Consolidated Statement of Cash Flows
                                   (Unaudited)

                                                         Six Months Ended
                                                       -------------------
                                                       July 4,    June 28,
(In thousands)                                            1998        1997
--------------------------------------------------------------------------

Operating Activities:
  Net income                                          $  5,420    $  3,741
  Adjustments to reconcile net income to net cash
    used in operating activities:
      Depreciation and amortization                      2,078       1,568
      Provision for losses on accounts receivable          127          91
      Changes in current accounts, excluding the
        effects of acquisition:
          Accounts receivable                           (3,024)       (759)
          Inventories                                     (274)     (3,604)
          Other current assets                            (664)       (709)
          Accounts payable                              (3,841)     (1,252)
          Other current liabilities                       (339)     (2,461)
      Other                                                 (5)         15
                                                      --------    --------

Net cash used in operating activities                     (522)     (3,370)
                                                      --------    --------

Investing Activities:
  Payment to affiliated company for acquired
    business                                           (19,117)          -
  Refund of acquisition purchase price                     424         614
  Purchases of property, plant, and equipment             (769)       (853)
  Proceeds from sale of property, plant, and
    equipment                                              238          51
                                                      --------    --------

Net cash used in investing activities                  (19,224)       (188)
                                                      --------    --------

Financing Activities:
  Net proceeds from issuance of Company common
    stock                                               43,188           -
  Issuance of note payable to parent company            12,000           -
  Repayment of note payable to parent company          (12,000)          -
  Net transfers from parent company                          -       3,448
                                                      --------    --------

Net cash provided by financing activities               43,188       3,448
                                                      --------    --------

Exchange Rate Effect on Cash                                94         106
                                                      --------    --------

Increase (Decrease) in Cash and Cash Equivalents        23,536          (4)
Cash and Cash Equivalents at Beginning of Period        24,960       2,386
                                                      --------    --------

Cash and Cash Equivalents at End of Period            $ 48,496    $  2,382
                                                      ========    ========

Noncash Activities:
  Transfer of acquired business from parent
    company                                           $      -    $  1,913


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       6
<PAGE>

                                ONIX SYSTEMS INC.

                 Notes to Consolidated Financial Statements

1.  General

    The interim  consolidated  financial statements presented have been prepared
by ONIX  Systems  Inc.  (the  Company)  without  audit  and,  in the  opinion of
management, reflect all adjustments of a normal recurring nature necessary for a
fair  statement  of the  financial  position  at July 4,  1998,  the  results of
operations for the three- and six-month periods ended July 4, 1998, and June 28,
1997, and the cash flows for the six-month  periods ended July 4, 1998, and June
28, 1997.  Interim results are not necessarily  indicative of results for a full
year.

    The  consolidated  balance sheet  presented as of January 3, 1998,  has been
derived from the consolidated financial statements that have been audited by the
Company's independent public accountants.  The consolidated financial statements
and notes are  presented as  permitted  by Form 10-Q and do not contain  certain
information  included  in the  annual  financial  statements  and  notes  of the
Company. The consolidated  financial statements and notes included herein should
be read in conjunction  with the financial  statements and notes included in the
Company's  Registration  Statement on Form S-1 (File No. 333-45333),  filed with
the Securities and Exchange Commission.

2.  Initial Public Offering

    On March 30, 1998, the Company sold 3,300,000  shares of its common stock in
an initial public  offering at $14.50 per share for net proceeds of $43,188,000.
Following the initial  public  offering,  Thermo  Instrument  Systems Inc. owned
approximately 68% of the Company's outstanding common stock.

3.  Earnings per Share

    Basic and diluted earnings per share were calculated as follows:

                                 Three Months Ended      Six Months Ended
                                 ------------------     ------------------
(In thousands except             July 4,   June 28,     July 4,   June 28,
per share amounts)                  1998       1997        1998       1997
--------------------------------------------------------------------------
Basic
Net income                       $ 3,203    $ 2,135     $ 5,420    $ 3,741
                                 -------    -------     -------    -------

Weighted average shares           15,606     10,667      14,065     10,667
                                 -------    -------     -------    -------

Basic earnings per share         $   .21    $   .20     $   .39    $   .35
                                 =======    =======     =======    =======

Diluted
Net income                       $ 3,203    $ 2,135     $ 5,420    $ 3,741
                                 -------    -------     -------    -------

Weighted average shares           15,606     10,667      14,065     10,667
Effect of stock options                4          -           5          -
                                 -------    -------     -------    -------

Weighted average shares,
  as adjusted                     15,610     10,667      14,070     10,667
                                 -------    -------     -------    -------

Diluted earnings per share       $   .21    $   .20     $   .39    $   .35
                                 =======    =======     =======    =======

                                       7
<PAGE>

                                ONIX SYSTEMS INC.

3.  Earnings per Share (continued)

    The  computation of diluted  earnings per share for each period excludes the
effect of assuming the exercise of certain outstanding stock options because the
effect  would be  antidilutive.  As of July 4, 1998,  there were 521,895 of such
options outstanding, with an exercise price of $14.25 per share.

4.  Comprehensive Income

    During the first quarter of 1998, the Company adopted Statement of Financial
Accounting   Standards   No.  130,   "Reporting   Comprehensive   Income."  This
pronouncement   sets  forth   requirements   for  disclosure  of  the  Company's
comprehensive  income and accumulated  other  comprehensive  income. In general,
comprehensive income combines net income and "other comprehensive income," which
represents foreign currency translation adjustments,  reported as a component of
shareholders'  investment in the accompanying  balance sheet.  During the second
quarter of 1998 and 1997, the Company's  comprehensive income totaled $3,197,000
and $2,239,000,  respectively. During the first six months of 1998 and 1997, the
Company's comprehensive income totaled $5,663,000 and $3,933,000, respectively.

5.  Subsequent Event

    On July  7,  1998,  the  Company  acquired  the  capital  stock  of  certain
businesses  of  the  Mid-South   Companies  for  $12.7  million  in  cash.  This
acquisition  will be accounted for using the purchase  method of accounting  and
its  results  will  be  included  in the  Company's  results  from  the  date of
acquisition.  The businesses  acquired include  Mid-South  Controls and Services
Inc.,  which  specializes  in the assembly and service of wellhead  measurement,
control,  and safety shutdown systems that are required by oil and gas companies
operating offshore  platforms,  and Mid-South Power Systems Inc., which provides
electrical  generators,  switchgear,  and motor control units that are used in a
wide variety of industrial applications.

Item 2 - Management's Discussion and Analysis of Financial Condition and
         Results of Operations

    Forward-looking  statements,  within  the  meaning  of  Section  21E  of the
Securities   Exchange  Act  of  1934,  are  made  throughout  this  Management's
Discussion and Analysis of Financial  Condition and Results of  Operations.  For
this  purpose,  any  statements  contained  herein  that are not  statements  of
historical fact may be deemed to be forward-looking statements. Without limiting
the foregoing, the words "believes," "anticipates," "plans," "expects," "seeks,"
"estimates,"  and similar  expressions are intended to identify  forward-looking
statements. There are a number of important factors that could cause the results
of the Company to differ materially from those indicated by such forward-looking
statements,  including  those  detailed  under the heading "Risk Factors" in the
Company's  Registration  Statement on Form S-1 (File No. 333-45333),  filed with
the Securities and Exchange Commission.


                                       8
<PAGE>

Overview

    The Company designs,  develops,  markets,  and services  sophisticated field
measurement  instruments and on-line sensors. These products incorporate a range
of advanced  measurement  technologies  to provide  real-time  data  collection,
analysis, and local control functions to enhance production efficiency,  improve
process and quality control, ensure regulatory compliance, and increase employee
safety.  The Company  manufactures  field  measurement  instruments  and on-line
sensors in four  general  product  areas:  flow  instruments,  level and density
instruments, composition analysis instruments, and industry-specific sensors and
recording instruments.

    The  Company's  products  are sold  primarily  to  participants  in  process
industries,  including oil and gas producers,  processors, and distributors, and
chemical companies, as well as water/wastewater,  iron, steel, electric utility,
minerals and mining, and pulp and paper companies. In 1997, customers in the oil
and gas  industries  accounted  for  approximately  61% of the  Company's  total
revenues,  with such revenues  derived from both the production  segment and the
refining and  petrochemical  segments of the industry.  Demand for the Company's
products  and services  within the oil and gas  industry is  dependent  upon the
level  of  capital  spending  by  oil  and  gas  companies  for  production  and
distribution.  This in turn is affected by current and  anticipated  oil and gas
prices; the discovery rate of new oil and gas reserves;  political,  regulatory,
and  economic  conditions;  and the ability of oil and gas  companies  to obtain
capital.  Decreases in oil and gas activities  could have a significant  adverse
effect upon the demand for the Company's  products and related  services,  which
would materially  adversely affect the Company's business,  financial condition,
and results of operations.

    Sales originating  outside of the United States and export revenues from the
United States accounted for  approximately 25% and 18%,  respectively,  of total
revenues  in 1997.  Export  sales in 1997  were  made  primarily  to the  United
Kingdom,  Japan, and South Korea.  During 1997,  exports from the Company's U.S.
and foreign  operations to the Far East were approximately 8% of total revenues.
The  Far  East  is  experiencing  a  severe  economic  crisis,  which  has  been
characterized  by  sharply  reduced  economic  activity  and  liquidity,  highly
volatile  foreign-currency-exchange  and  interest  rates,  and  unstable  stock
markets.  Although  the  Company's  export  sales to the Far East  have not been
materially  affected  in the  first  six  months of 1998,  such  sales  could be
adversely  affected by the  unstable  economic  conditions  there.  Although the
Company  seeks to charge its  customers  in the same  currency as its  operating
costs,  the Company's  financial  performance  and  competitive  position can be
affected by currency  exchange  rate  fluctuations  affecting  the  relationship
between the U.S. dollar and foreign currencies.

                                       9
<PAGE>

Results of Operations

Second Quarter 1998 Compared With Second Quarter 1997

    Revenues  increased 32% to $38.4 million in the second  quarter of 1998 from
$29.0 million in the second quarter of 1997. Revenues increased $7.6 million due
to the inclusion of revenues from acquired businesses, consisting principally of
$4.8  million  in  revenues  from the Peek  Measurement  Business,  acquired  in
November 1997, and $2.4 million in revenues from Fluid Data acquired in December
1997. Revenues from existing businesses  increased primarily due to higher sales
of  industry-specific  instruments as a result of an increase in spending by the
production  segment  of the  oil and  gas  industry  and,  to a  lesser  extent,
increased sales of level density instruments.

    The gross profit margin  increased to 43% in the second quarter of 1998 from
41%  in  the  second  quarter  of  1997,  primarily  due  to  the  inclusion  of
higher-margin  revenues from acquired  businesses  and, to a lesser  extent,  an
increase in higher-margin revenues from industry-specific instruments.

    Selling,  general,  and administrative  expenses as a percentage of revenues
increased to 25% in the second quarter of 1998 from 23% in the second quarter of
1997, primarily due to higher selling, general, and administrative expenses as a
percentage of revenues at acquired businesses.

    Research and  development  expenses  increased  to $2.4  million  during the
second  quarter of 1998 from $1.6  million in the second  quarter of 1997.  This
increase was primarily due to acquisitions  and, to a lesser extent, an increase
in  spending  at  certain   industry-specific   instrument   and  level  density
businesses.

    Interest income in the second quarter of 1998 primarily  represents interest
earned on the invested  proceeds  from the Company's  March 1998 initial  public
offering and third quarter 1997 private placement of common stock.

    The effective  tax rates were 39% and 40% in the second  quarter of 1998 and
1997,  respectively.  The  effective tax rates  exceeded the  statutory  federal
income  tax  rate  primarily  due  to the  impact  of  state  income  taxes  and
nondeductible  amortization  of  cost  in  excess  of  net  assets  of  acquired
companies.

    The arbitration panel, in an arbitration proceeding in which the Company was
involved,  rendered  its  decision in June 1998.  Thermo  Electron  Corporation,
Thermo Instrument,  and certain  affiliates of Thermo  Instrument,  including TN
Technologies, a wholly owned subsidiary of the Company, were joint defendants in
this matter.  The matter was resolved  with no liability for damages on the part
of the Company.

    The Company is currently  assessing the potential impact of the year 2000 on
the  processing of  date-sensitive  information  by the  Company's  computerized
information  systems and on products  purchased as well as products  sold by the
Company. While there can be no assurance that all problems arising from the year
2000 will be identified and resolved

                                       10
<PAGE>

Second Quarter 1998 Compared With Second Quarter 1997 (continued)

satisfactorily prior to the end of 1999, the Company presently believes that the
year 2000 issue will not pose significant  operational  problems for the Company
or have a material effect on future results of operations.

First Six Months 1998 Compared With First Six Months 1997

    Revenues increased 36% to $75.6 million in the first six months of 1998 from
$55.4 million in the first six months of 1997.  Revenues increased $16.6 million
due  to  the  inclusion  of  revenues  from  acquired   businesses,   consisting
principally of $9.7 million in revenues from the Peek  Measurement  Business and
$5.2 million in revenues  from Fluid Data.  Revenues  from  existing  businesses
increased  primarily due to higher sales of  industry-specific  instruments as a
result of an increase in spending by the  production  segment of the oil and gas
industry and, to a lesser extent, increased sales of level density instruments.

    The gross  profit  margin  increased  to 42% in the first six months of 1998
from 40% in the first six  months of 1997,  primarily  due to the  inclusion  of
higher-margin  revenues from acquired  businesses  and, to a lesser  extent,  an
increase in higher-margin revenues from industry-specific instruments.

    Selling,  general,  and administrative  expenses as a percentage of revenues
increased  to 25% in the  first  six  months  of 1998  from 24% in the first six
months of 1997,  primarily due to higher selling,  general,  and  administrative
expenses as a percentage of revenues at acquired businesses.

    Research and development expenses increased to $4.6 million during the first
six  months of 1998  from $3.0  million  in the first six  months of 1997.  This
increase was primarily due to acquisitions  and, to a lesser extent, an increase
in  spending  at  certain   industry-specific   instrument   and  level  density
businesses.

    Interest  income  in the  first  six  months  of 1998  primarily  represents
interest  earned on the invested  proceeds from the Company's March 1998 initial
public  offering  and third  quarter 1997  private  placement  of common  stock.
Interest  expense  in the  first  six  months  of 1998  represents  interest  on
indebtedness  relating to the November 1997  acquisition of the Peek Measurement
Business. In January 1998, the Company paid the $19.1 million purchase price for
the Peek  Measurement  Business.  The Company borrowed $12.0 million from Thermo
Instrument to partially fund the payment.  The $12.0 million was repaid in April
1998 following the Company's initial public offering.

    The effective tax rate was 40% in the first six months of 1998 and 1997. The
effective tax rate exceeded the statutory  federal income tax rate primarily due
to the impact of state income taxes and  nondeductible  amortization  of cost in
excess of net assets of acquired companies.

                                       11
<PAGE>

Liquidity and Capital Resources

    Consolidated  working capital was $90.9 million as of July 4, 1998, compared
with $41.9 million as of January 3, 1998.  Included in working  capital are cash
and cash  equivalents  of $48.5 million as of July 4, 1998,  compared with $25.0
million as of January 3, 1998.

    During the first six months of 1998, the Company's operating activities used
$0.5 million of cash. Cash flow from the Company's operations was offset by cash
of $3.8 million used to fund a decrease in accounts payable primarily due to the
timing of  payments.  In  addition,  the  Company  used $3.0  million to fund an
increase in accounts receivable primarily due to end of quarter shipments in the
Company's  industry-specific and composition product businesses and, to a lesser
extent, the timing of receipts.

    The Company used $19.2 million of cash for investing  activities  during the
first six months of 1998.  In January  1998,  the Company  paid Thermo Power the
purchase  price of $19.1  million for the Peek  Measurement  Business,  acquired
effective  November  1997.  The  Company  used $0.8  million  for  purchases  of
property,  plant, and equipment during the first six months of 1998. The Company
expects to expend approximately $1.0 million for property,  plant, and equipment
during the remainder of 1998.

    The Company's financing activities provided $43.2 million of cash during the
first six  months of 1998.  The  Company  raised  this cash from its March  1998
initial  public  offering  of common  stock (Note 2). In  addition,  the Company
borrowed $12.0 million from Thermo  Instrument to partially fund the payment for
the Peek Measurement Business. The note to Thermo Instrument was repaid in April
1998,  with a portion of the funds  received from the Company's  initial  public
offering.

    Although the Company  expects to have  positive  cash flow from its existing
operations,  the Company anticipates it will require significant amounts of cash
for the possible acquisition of complementary  businesses and technologies.  The
Company expects that it will finance these acquisitions through a combination of
internal funds, additional debt or equity financing from the capital markets, or
short-term borrowings from Thermo Instrument or Thermo Electron,  although there
is no agreement  with these  companies to ensure that funds will be available on
acceptable terms or at all. The Company believes that its existing resources are
sufficient to meet the capital  requirements of its existing  businesses for the
foreseeable future.


                                       12
<PAGE>

PART II - OTHER INFORMATION

Item 2 - Use of Proceeds

    The Company sold 3,300,000 shares of common stock, par value $.01 per share,
pursuant to a Registration Statement on Form S-1 (File No. 333-45333), which was
declared effective by the Securities and Exchange  Commission on March 24, 1998.
The managing  underwriters  of the offering  were  Donaldson,  Lufkin & Jenrette
Securities  Corporation,  Lazard Freres & Co. LLC, and Gruntal & Co., L.L.C. The
aggregate gross proceeds of the offering were  $47,850,000.  The Company's total
expenses in connection with the offering were  $4,662,000,  of which  $3,349,500
was for  underwriting  discounts  and  commissions,  $1,195,500  was  for  other
expenses  paid to persons  other than  directors  or  officers  of the  Company,
persons  owning  more than 10 percent of any class of equity  securities  of the
Company, or affiliates of the Company (collectively,  Affiliates),  and $117,000
was paid to Thermo Electron,  the Company's ultimate parent company, for certain
corporate  services rendered in connection with the offering.  The Company's net
proceeds from the offering were $43,188,000.  On April 10, 1998,  $12,000,000 of
such net  proceeds was expended to repay the  outstanding  indebtedness  owed to
Thermo  Instrument in connection  with the  acquisition of the Peek  Measurement
Business. As of July 4, 1998, the Company had also expended $363,000 of such net
proceeds for the purchase of property,  plant,  and  equipment,  $2,388,000  for
research and  development,  and $4,859,000 for working capital needs. As of July
4, 1998,  the  Company had  expended an  aggregate  of  $19,610,000  of such net
proceeds.  The  Company  invested  the  remaining  net  proceeds  pursuant  to a
repurchase  agreement with Thermo Electron.  As of July 4, 1998, the Company had
$48,496,000 of cash and cash equivalents.

Item 6 - Exhibits

    See Exhibit Index on the page immediately preceding exhibits.

                                       13
<PAGE>

                                   SIGNATURES


    Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized as of the 10th day of August 1998.

                                       ONIX SYSTEMS INC.


                                       Paul F. Kelleher
                                       ----------------------------
                                       Paul F. Kelleher
                                       Chief Accounting Officer



                                       John N. Hatsopoulos
                                       ----------------------------
                                       John N. Hatsopoulos
                                       Chief Financial Officer and
                                         Senior Vice President

                                       14
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                                ONIX SYSTEMS INC.

                                  EXHIBIT INDEX


Exhibit
Number      Description of Exhibit
-------------------------------------------------------------------------------
27          Financial Data Schedule.


                                       15
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