UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------- SCHEDULE 13G (Rule 13d-102) UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 1)* REX Stores Corporation - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock - -------------------------------------------------------------------------------- (Title of Class of Securities) 761624105 - -------------------------------------------------------------------------------- (CUSIP Number) - ---------- * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Page 1 of 6 pages

SCHEDULE 13G CUSIP No. 761624105 - -------------------------------------------------------------------------------- 1 Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person Granahan Investment Management, Inc. - -------------------------------------------------------------------------------- 2 Check the Appropriate Box If a Member of a Group* a. / / Not applicable. b. / / - -------------------------------------------------------------------------------- 3 SEC Use Only - -------------------------------------------------------------------------------- 4 Citizenship or Place of Organization Commonwealth of Massachusetts - -------------------------------------------------------------------------------- 5 Sole Voting Power Number of Shares 10,000 Beneficially -------------------------------------------------------- Owned By 6 Shared Voting Power Each Reporting -0- Person -------------------------------------------------------- With 7 Sole Dispositive Power 591,000 -------------------------------------------------------- 8 Shared Dispositive Power -0- - -------------------------------------------------------------------------------- 9 Aggregate Amount Beneficially Owned by Each Reporting Person 591,000 - -------------------------------------------------------------------------------- 10 Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares* / / - -------------------------------------------------------------------------------- 11 Percent of Class Represented By Amount in Row (9) 7.20% - -------------------------------------------------------------------------------- 12 Type of Reporting Person* IA - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! Page 2 of 6 pages

Item 1(a) Name of Issuer REX Stores Corporation Item 1(b) Address of Issuer's Principal Executive Offices 2875 Needmore Road Dayton, OH 45414 Item 2(a) Name of Person Filing Granahan Investment Management, Inc. Item 2(b) Address of Principal Business Office or, if none, Residence 275 Wyman Street, Suite 270 Waltham, MA 02154 Item 2(c) State of Organization/Citizenship Commonwealth of Massachusetts Item 2(d) Title of Class of Securities ` Common Stock Item 2(e) CUSIP Number 761624105 Item 3. If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b), check whether the person filing is a (a) [ ] Broker or Dealer registered under Section 15 of the Act (b) [ ] Bank as defined in Section 3(a)(6) of the Act (c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act (d) [ ] Investment Company registered under Section 8 of the Investment Company Act (e) [X] Investment Adviser registered under Section 203 of the Investment Advisers Act of 1940 (f) [ ] Employee Benefit Plan, Pension Fund which is subject to the provisions of the Employee Retirement Income Security Act of Page 3 of 6 pages

1974 or Endowment Fund; see ss.240.13d-1(b)(1)(ii)(F) (g) [ ] Parent Holding Company, in accordance with ss.240.13d-1(b)(1)(ii)(G) (h) [ ] Group, in accordance with ss.240.13d-1(b)(1)(ii)(H) Item 4. Ownership (a) Amount Beneficially Owned: 591,000 (b) Percent of Class: 7.20% (c) Number of shares as to which such person has: (i) sole power to vote or to direct the vote: 10,000 (ii) shared power to vote or to direct the vote: -0- (iii) sole power to dispose or to direct the disposition of: 591,000 (iv) shared power to dispose or to direct the disposition of: -0- Item 5. Ownership of Five Percent or Less of a Class Not Applicable. Item 6. Ownership of More than Five Percent on Behalf of Another Person Certain other persons have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the class of securities which are subject to this report. Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company Not Applicable. Item 8. Identification and Classification of Members of the Group Not Applicable. Page 4 of 6 pages

Item 9. Notice of Dissolution of Group Not Applicable. Item 10. Certification By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired in the ordinary course of business and were not acquired for the purpose of and do not have the effect of changing or influencing the control of the issuer of such securities and were not acquired in connection with or as a participant in any transaction having such purposes or effect. Page 5 of 6 pages

Signature After reasonably inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. GRANAHAN INVESTMENT MANAGEMENT, INC. Date: January 27, 1998 By: /s/ John J. Granahan ----------------------------- John J. Granahan, President Page 6 of 6 pages