It's reading a file of sql insert statements like this: 
INSERT INTO FOO VALUES (1,2,3,4,5,X'6789')

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It uses the first three numbers to build a filename. The X'' part at the end is hexadecimal-coded. It decodes that part and writes it to the file. The decode loop of the script would be better written as 
print OUT unpack("H*",$data);

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But that's as may be.

In reply to Re: help figuring out what a section of script does by Anonymous Monk
in thread help figuring out what a section of script does by michaelsingleton

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