-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OLsbJXjxqGMLF4gjbyxS68V8MJCyItWQw9+6CAn4SlZIUFR3ItOryF3UKV8ge6nd TjYb+lg/aw9sAwGrYOF0zw== 0000950133-98-002847.txt : 19980806 0000950133-98-002847.hdr.sgml : 19980806 ACCESSION NUMBER: 0000950133-98-002847 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980805 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MICROS SYSTEMS INC CENTRAL INDEX KEY: 0000320345 STANDARD INDUSTRIAL CLASSIFICATION: CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578] IRS NUMBER: 521101488 STATE OF INCORPORATION: MD FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-09993 FILM NUMBER: 98677493 BUSINESS ADDRESS: STREET 1: 12000 BALTIMORE AVE CITY: BELTSVILLE STATE: MD ZIP: 20705 BUSINESS PHONE: 3012016000 MAIL ADDRESS: STREET 1: 12000 BALTIMORE AVE CITY: BELTSVILLE STATE: MD ZIP: 20705-1291 11-K 1 FORM 11-K RE: MICROS SYSTEMS, INC. 1 This Exhibit Index is on page 3 As filed with the Securities and Exchange Commission on August 5, 1998 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------- FORM 11-K ---------------------- MICROS SYSTEMS, INC. (Exact name of issuer as specified in its charter) (Mark One) (X) ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 1997. OR ( ) TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 0-9993 MARYLAND 52-1101488 -------- ---------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 12000 Baltimore Avenue Beltsville, Maryland 20705-1291 (Address of principal executive offices) (Zip Code)
MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN ------------------------------------------- (Full title of plan) (Name, address and telephone (Copies to:) number of agent for service) A.L. GIANNOPOULOS ANTHONY H. RICKERT, ESQUIRE 12000 BALTIMORE AVENUE PIPER & MARBURY L.L.P. BELTSVILLE, MARYLAND 20705-1291 1200 NINETEENTH STREET, N.W. (301) 210-6000 SEVENTH FLOOR WASHINGTON, D.C. 20036 -i- 2 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 11-K REQUIRED INFORMATION (a) Financial Statements. Filed as part of this Report on Form 11-K are the financial statements and the schedules thereto of the MICROS Systems, Inc. 401(k) Retirement Plan as required by Form 11-K together with the report thereon of PricewaterhouseCoopers LLP, independent auditors, dated June 12, 1998. (b) Exhibits: A consent of PricewaterhouseCoopers LLP is being filed as Exhibit 23 to this Report. -ii- 3 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN INDEX TO FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION - --------------------------------------------------------------------------------
FINANCIAL STATEMENTS PAGE(s) - -------------------- ------- Report of Independent Accountants............................................................... 1 Statement of Net Assets Available for Benefits with Fund Information.......................................................................... 2-4 Statement of Changes in Net Assets Available for Benefits with Fund Information.......................................................................... 5-7 Notes to Financial Statements................................................................... 8-12 ADDITIONAL INFORMATION* - ----------------------- Schedule I - Schedule of Assets Held for Investment Purposes - December 31, 1997................ 13 Schedule II - Schedule of Reportable Transactions - Year Ended December 31, 1997................ 14
* Other schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable. -iii- 4 REPORT OF INDEPENDENT ACCOUNTANTS June 12, 1998 To the Participants and Administrator of MICROS Systems, Inc. 401(K) Retirement Plan In our opinion, the accompanying statements of net assets available for benefits, and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the MICROS Systems, Inc. 401(K) Retirement Plan (the "Plan") at December 31, 1997 and 1996, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedules I and II are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. In our report dated August 29, 1997, we were unable to, and did not, express an opinion on the 1996 financial statements because we did not perform any auditing procedures with respect to the information summarized in Note 6 of those financial statements. In conjunction with our audit of the 1997 financial statements, the plan administrator instructed us to perform, and we did perform, an audit of the 1996 financial statements in accordance with generally accepted auditing standards. Accordingly, we are now able to express an opinion on the 1996 financial statements. PricewaterhouseCoopers LLP - 1 - 5 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1997 - --------------------------------------------------------------------------------
PARTICIPANT DIRECTED ----------------------------------------------------------------------------------------------- MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH CAPITAL READY ASSET PHOENIX BASIC VALUE FEDERAL SECURITIES FUND TRUST FUND FUND TRUST ---- ----- ---- ---- ----- Assets Uninvested cash Investments Mutual funds $ - $ - $ - $ - $ - Equity securities Participant notes -------- -------- -------- ------ -------- Total investments Receivables Employer's contributions Participants' contributions -------- -------- -------- ------ -------- Total receivables -------- -------- -------- ------ -------- Total assets Liabilities -------- -------- -------- ------ -------- Net assets available for benefits $ - $ - $ - $ - $ - ======== ======== ======== ====== ========
PARTICIPANT DIRECTED ---------------------------------------------------------------------------------- MERRILL LYNCH PUTNAM NEW PUTNAM OTC & AIM INTERNATIONAL GLOBAL ALLOCATION OPPORTUNITIES EMERGING GROWTH EQUITY FUND FUND FUND FUND ---- ---- ---- ---- Assets Uninvested cash Investments Mutual funds $ - $ 959,136 $ 2,108,532 $ 1,577,775 Equity securities Participant notes -------- ------------ ------------- ------------- Total investments 959,136 2,108,532 1,577,775 Receivables Employer's contributions Participants' contributions -------- ------------ ------------- ------------- Total receivables -------- ------------ ------------- ------------- Total assets 959,136 2,108,532 1,577,775 Liabilities -------- ------------ ------------- ------------- Net assets available for benefits $ - $ 959,136 $ 2,108,532 $ 1,577,775 ======== ============ ============= =============
The accompanying notes are an integral part of these financial statements. - 2 - 6 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1997 - --------------------------------------------------------------------------------
PARTICIPANT DIRECTED -------------------------------------------------------------------------------------------- PUTNAM AIM AIM PUTNAM PUTNAM MICROS VOYAGER II VALUE CHARTER INCOME MONEY MARKET COMMON STOCK FUND FUND FUND FUND FUND FUND ---- ---- ---- ---- ---- ---- Assets Uninvested cash Investments Mutual funds $ 407,464 $ 2,181,055 $ 2,000,686 $ 570,945 $ 548,689 $ 10,227 Equity securities 587,655 Participant notes ----------- ------------ ------------- ----------- ---------- ---------- Total investments 407,464 2,181,055 2,000,686 570,945 548,689 597,882 Receivables Employer's contributions Participants' contributions ----------- ------------ ------------- ----------- ---------- ---------- Total receivables ----------- ------------ ------------- ----------- ---------- ---------- Total assets 407,464 2,181,055 2,000,686 570,945 548,689 597,882 Liabilities ----------- ------------ ------------- ----------- ---------- ---------- Net assets available for benefits $ 407,464 $ 2,181,055 $ 2,000,686 $ 570,945 $ 548,689 $ 597,882 =========== ============ ============= =========== ========== ==========
PARTICIPANT UNINVESTED NOTES CASH TOTAL ----- ---- ----- Assets Uninvested cash $ 17,276 $ 17,276 Investments Mutual funds 10,364,509 Equity securities 587,655 Participant notes $ 493,600 493,600 ----------- --------- ------------- Total investments 493,600 17,276 11,463,040 Receivables Employer's contributions Participants' contributions Total receivables =========== ========= ============= Total assets 493,600 17,276 11,463,040 Liabilities Net assets available for ----------- --------- ------------- benefits $ 493,600 $ 17,276 $ 11,463,040 =========== ========= =============
The accompanying notes are an integral part of these financial statements. - 3 - 7 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1996 - --------------------------------------------------------------------------------
PARTICIPANT DIRECTED ------------------------------------------------------------------------------------------- MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH CAPITAL READY ASSET PHOENIX BASIC VALUE FEDERAL SECURITIES FUND TRUST FUND FUND TRUST ---- ----- ---- ---- ----- Assets Investments Mutual funds $ 1,652,342 $ 466,434 $ 1,686,760 $ 1,573,975 $ 344,653 Equity securities Participant notes ----------- ---------- ----------- ----------- ---------- Total investments 1,652,342 466,434 1,686,760 1,573,975 344,653 Receivables Employer's contributions 5,795 2,615 7,414 7,134 1,278 Participants' contributions 20,546 9,271 26,285 25,294 4,532 ----------- ---------- ----------- ----------- ---------- Total receivables 26,341 11,886 33,699 32,428 5,810 ----------- ---------- ----------- ----------- ---------- Total assets 1,678,683 478,320 1,720,459 1,606,403 350,463 Liabilities ----------- ---------- ----------- ----------- ---------- Net assets available for benefits $ 1,678,683 $ 478,320 $ 1,720,459 $ 1,606,403 $ 350,463 =========== ========== =========== =========== ==========
PARTICIPANT DIRECTED --------------------------------- MERRILL LYNCH MICROS GLOBAL ALLOCATION COMMON STOCK PARTICIPANT FUND FUND NOTES TOTAL ---- ---- ----- ----- Assets Investments Mutual funds $ 1,300,133 $ 7,024,297 Equity securities $ 306,222 306,222 Participant notes $ 380,964 380,964 ------------ ---------- ---------- ------------- Total investments 1,300,133 306,222 380,964 7,711,483 Receivables Employer's contributions 4,702 377 29,315 Participants' contributions 16,669 1,337 103,934 ------------ ---------- ---------- ------------- Total receivables 21,371 1,714 133,249 ------------ ---------- ---------- ------------- Total assets 1,321,504 307,936 380,964 7,844,732 Liabilities ------------ ---------- ---------- ------------- Net assets available for benefits $ 1,321,504 $ 307,936 $ 380,964 $ 7,844,732 ============ ========== ========== =============
The accompanying notes are an integral part of these financial statements. - 4 - 8 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1997 - --------------------------------------------------------------------------------
PARTICIPANT DIRECTED ------------------------------------------------------------------------------------------------ MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH CAPITAL READY ASSET PHOENIX BASIC VALUE FEDERAL SECURITIES FUND TRUST FUND FUND TRUST ---- ----- ---- ---- ----- Additions to net assets attributed to: Investment income Interest and dividends $ - $ 3,471 $ - $ - $ - Net appreciation (depreciation) in fair value of investments 8,743 31,986 9,478 46,563 393 ------------ ------------ ------------- ------------- ----------- 8,743 35,457 9,478 46,563 393 Contributions Employer's Participants' 10,124 33,553 38,155 30,265 ------------ ------------ ------------- ------------- ----------- 10,124 33,553 38,155 30,265 ------------ ------------ ------------- ------------- ----------- Total additions 18,867 69,010 47,633 76,828 393 Deductions from net assets attributed to: Benefits paid to participants ------------ ------------ ------------- ------------- ----------- Net increase prior to interfund transfers 18,867 69,010 47,633 76,828 393 Interfund transfers (1,697,550) (547,330) (1,768,092) (1,683,231) (350,856) ------------ ------------ ------------- ------------- ----------- Net increase (decrease) (1,678,683) (478,320) (1,720,459) (1,606,403) (350,463) Net assets available for benefits Beginning of year 1,678,683 478,320 1,720,459 1,606,403 350,463 ------------ ------------ ------------- ------------- ----------- End of year $ - $ - $ - $ - $ - ============ ============ ============= ============= ===========
PARTICIPANT DIRECTED --------------------------------------------------------------------------------- MERRILL LYNCH PUTNAM NEW PUTNAM OTC & AIM INTERNATIONAL GLOBAL ALLOCATION OPPORTUNITIES EMERGING GROWTH EQUITY FUND FUND FUND FUND ---- ---- ---- ---- Additions to net assets attributed to: Investment income Interest and dividends $ - $ 19,968 $ - $ 5,836 Net appreciation (depreciation) in fair value of investments 15,275 90,866 189,231 88,167 ------------- ----------- ------------- ------------- 15,275 110,834 189,231 94,003 Contributions Employer's 118,460 109,566 73,382 Participants' 13,142 535,264 481,552 324,546 ------------- ----------- ------------- ------------- 13,142 653,724 591,118 397,928 ------------- ----------- ------------- ------------- Total additions 28,417 764,558 780,349 491,931 Deductions from net assets attributed to: Benefits paid to participants 26,153 272,255 185,233 ------------- ----------- ------------- ------------- Net increase prior to interfund transfers 28,417 738,405 508,094 306,698 Interfund transfers (1,349,921) 220,731 1,600,438 1,271,077 ------------- ----------- ------------- ------------- Net increase (decrease) (1,321,504) 959,136 2,108,532 1,577,775 Net assets available for benefits Beginning of year 1,321,504 ------------- ----------- ------------- ------------- End of year $ - $ 959,136 $ 2,108,532 $ 1,577,775 ============= =========== ============= =============
The accompanying notes are an integral part of these financial statements. - 5 - 9 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1997 - --------------------------------------------------------------------------------
PARTICIPANT DIRECTED ---------------------------------------------------------------------------------------- PUTNAM AIM AIM PUTNAM PUTNAM VOYAGER II VALUE CHARTER INCOME MONEY MARKET FUND FUND FUND FUND FUND ---- ---- ---- ---- ---- Additions to net assets attributed to: Investment income Interest and dividends $ 645 $ 219,458 $ 212,766 $ 28,141 $ 27,337 Net appreciation (depreciation) in fair value of investments 48,816 141,298 97,132 6,069 ---------- ------------- ------------- ---------- ----------- 49,461 360,756 309,898 34,210 27,337 Contributions Employer's 58,567 56,165 40,314 27,446 (89,782) Participants' 247,612 266,577 200,375 195,952 103,696 ---------- ------------- ------------- ---------- ----------- 306,179 322,742 240,689 223,398 13,914 ---------- ------------- ------------- ---------- ----------- Total additions 355,640 683,498 550,587 257,608 41,251 Deductions from net assets attributed to: Benefits paid to participants 20,560 169,551 174,317 36,849 97,820 ---------- ------------- ------------- ---------- ----------- Net increase (decrease) prior to interfund transfers 335,080 513,947 376,270 220,759 (56,569) Interfund transfers 72,384 1,667,108 1,624,416 350,186 605,258 ---------- ------------- ------------- ---------- ----------- Net increase (decrease) 407,464 2,181,055 2,000,686 570,945 548,689 Net assets available for benefits Beginning of year ---------- ------------- ------------- ---------- ----------- End of year $ 407,464 $ 2,181,055 $ 2,000,686 $ 570,945 $ 548,689 ========== ============= ============= ========== ===========
PARTICIPANT DIRECTED -------------------- MICROS COMMON STOCK PARTICIPANT UNINVESTED FUND NOTES CASH TOTAL ---- ----- ---- ----- Additions to net assets attributed to: Investment income Interest and dividends $ 613 $ 34,491 $ - $ 552,726 Net appreciation (depreciation) in fair value of investments 188,700 962,717 ---------- ---------- --------- ------------- 189,313 34,491 1,515,443 Contributions Employer's 37,959 432,077 Participants' 185,538 2,666,351 ---------- ---------- --------- ------------- 223,497 3,098,428 ---------- ---------- --------- ------------- Total additions 412,810 34,491 4,613,871 Deductions from net assets attributed to: Benefits paid to participants 12,126 699 995,563 ---------- ---------- --------- ------------- Net increase (decrease) prior to interfund transfers 400,684 33,792 3,618,308 Interfund transfers (110,738) 78,844 17,276 ---------- ---------- --------- ------------- Net increase (decrease) 289,946 112,636 17,276 3,618,308 Net assets available for benefit Beginning of year 307,936 380,964 7,844,732 ---------- ---------- --------- ------------- End of year $ 597,882 $ 493,600 $ 17,276 $ 11,463,040 ========== ========== ========= =============
- 6 - 10 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1996 - --------------------------------------------------------------------------------
PARTICIPANT DIRECTED ------------------------------------------------------------------------------- MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH MERRILL LYNCH CAPITAL READY ASSET PHOENIX BASIC VALUE FUND TRUST FUND FUND ---- ----- ---- ---- Additions to net assets attributed to: Investment income Interest and dividends $ 156,799 $ 23,007 $ 180,511 $ 97,022 Net appreciation (depreciation) in fair value of investments 14,400 10,986 94,839 ----------- ---------- ----------- ------------ 171,199 23,007 191,497 191,861 Contributions Employer's 108,542 69,913 98,396 110,735 Participants' 388,643 146,117 409,814 439,823 ----------- ---------- ----------- ------------ 497,185 216,030 508,210 550,558 ----------- ---------- ----------- ------------ Total additions 668,384 239,037 699,707 742,419 Deductions from net assets attributed to: Benefits paid to participants 140,906 177,258 135,780 187,359 ----------- ---------- ----------- ------------ Net increase prior to interfund transfers 527,478 61,779 563,927 555,060 Interfund transfers (173,500) (27,406) (102,517) (88,981) ----------- ---------- ----------- ------------ Net increase (decrease) 353,978 34,373 461,410 466,079 Net assets available for benefits Beginning of year 1,324,705 443,947 1,259,049 1,140,324 ----------- ---------- ----------- ------------ End of year $ 1,678,683 $ 478,320 $ 1,720,459 $ 1,606,403 =========== ========== =========== ============
PARTICIPANT DIRECTED ---------------------------------------------------------- MERRILL LYNCH MERRILL LYNCH MICROS FEDERAL SECURITIES GLOBAL ALLOCATION COMMON STOCK PARTICIPANT TRUST FUND FUND NOTES TOTAL ----- ---- ---- ----- ----- Additions to net assets attributed to: Investment income Interest and dividends $ 22,752 $ 123,614 $ 13,466 $ 617,171 Net appreciation (depreciation) in fair value of investments (7,092) 27,434 140,567 ---------- ------------ --------- --------- ------------ 15,660 151,048 13,466 757,738 Contributions Employer's 25,288 81,949 $ 3,463 498,286 Participants' 66,558 266,501 12,531 1,729,987 ---------- ------------ --------- --------- ------------ 91,846 348,450 15,994 2,228,273 ---------- ------------ --------- --------- ------------ Total additions 107,506 499,498 15,994 13,466 2,986,011 Deductions from net assets attributed to: Benefits paid to participants 75,444 120,293 837,040 ---------- ------------ --------- --------- ------------ Net increase prior to interfund transfers 32,062 379,205 15,994 13,466 2,148,971 Interfund transfers (71,158) (65,507) 291,942 237,127 ---------- ------------ --------- --------- ------------ Net increase (decrease) (39,096) 313,698 307,936 250,593 2,148,971 Net assets available for benefits Beginning of year 389,559 1,007,806 130,371 5,695,761 ---------- ------------ --------- --------- ------------ End of year $ 350,463 $ 1,321,504 $ 307,936 $ 380,964 $ 7,844,732 ========== ============ ========= ========= ============
The accompanying notes are an integral part of these financial statements. - 7 - 11 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1 - DESCRIPTION OF THE PLAN The following description of the MICROS Systems, Inc. 401(K) Retirement Plan (the Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. A. GENERAL The Plan is a defined contribution plan, sponsored by MICROS Systems, Inc. (the Company), covering all employees of the Company who have completed three consecutive months of service and are age twenty-one or older. Eligible employees may enroll in the Plan on the first day of the plan year quarter coincident with or next following the date on which eligibility criteria are met. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). B. CONTRIBUTIONS Participants may contribute 1% to 15% of their compensation to the Plan on a pre-tax basis through salary deductions; however, annual contributions may not exceed the maximum allowed under the Internal Revenue Code in any calendar year ($9,500 per taxpayer for the 1997 and 1996 calendar years). Participants may also contribute amounts representing distributions from other qualified defined benefit or contribution plans. The Company contributes a guaranteed 50% of the first 5% of a participant's contribution. Additionally, at the end of each plan year the Plan provides for the availability of year-end profit sharing contributions, depending upon profits and Board of Directors approval. C. VESTING Participants are immediately vested in their voluntary contributions plus actual earnings thereon. A participant's interest in the Company's matching and discretionary contribution portion of their accounts plus actual earnings thereon, becomes vested 20% after two years of service and increases 20% each year thereafter until becoming fully vested after six years. D. PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contributions and allocations of the Company's contributions and Plan earnings. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. - 8 - 12 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- E. FORFEITED ACCOUNTS In 1997, employer contributions were reduced by $115,394 from forfeited nonvested accounts. This entire amount was applied against 1997 employer contributions to the Putnam Money Market Fund. F. INVESTMENT OPTIONS At December 31, 1996 participants had the following investment options: MERRILL LYNCH CAPITAL FUND. This fund is a Merrill Lynch sponsored mutual fund whose investment objective is to achieve the highest total investment return consistent with prudent risk. Fund management may shift emphasis among equity, debt or convertible securities. MERRILL LYNCH READY ASSET TRUST. This fund's objective is to maintain a value of one dollar. Purchases are principally made in investments that have a short-term maturity. MERRILL LYNCH PHOENIX FUND. This fund is designed for investors seeking long-term growth of capital through a diversified portfolio of equity and fixed-income securities that fund management believes are undervalued. MERRILL LYNCH FEDERAL SECURITIES TRUST. This fund seeks to achieve high current return by investing in securities issued or guaranteed by the U.S. government or U.S. government agencies and enterprises. MERRILL LYNCH BASIC VALUE FUND. This fund strives for capital appreciation, then income, by investing in securities, primarily equities, that fund management believes are undervalued. MERRILL LYNCH GLOBAL ALLOCATION FUND. This fund seeks to achieve the highest investment return consistent with prudent risk through a fully managed investment policy utilizing domestic and foreign equity, debt, and money market instruments. Effective January 29, 1997, the Plan discontinued the Merrill Lynch funds as investment options. All monies invested in these funds were transferred into mutual funds offered by AIM and Putnam on January 31, 1997. The transfer took place as follows:
TRANSFERRED FROM: TRANSFERRED TO: ----------------- --------------- Merrill Lynch Basic Value Fund AIM Value Fund Merrill Lynch Capital Fund AIM Charter Fund Merrill Lynch Global Allocation Fund AIM International Growth Fund Merrill Lynch Phoenix Fund Putnam OTC & Emerging Growth Fund Merrill Lynch Federal Securities Trust Putnam Income Fund Merrill Lynch Ready Asset Trust Putnam Money Market Fund
- 9 - 13 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- After the transfer occurred, participants were also offered the Putnam New Opportunities Fund and the Putnam Voyager II Fund. A brief description of participants' investment options at December 31, 1997 follows: PUTNAM NEW OPPORTUNITIES FUND. This mutual fund has an aggressive growth objective and seeks long-term capital appreciation. This fund normally invests in common stocks in these sectors: personal communications, media/entertainment and environmental services. PUTNAM OTC & EMERGING GROWTH FUND. This mutual fund typically invests in small to mid-size companies whose sales and earnings are growing at very strong rates. The portfolio may include common stocks that are traded in the over-the-counter (OTC) market and stocks of emerging growth companies used on securities exchanges. AIM INTERNATIONAL EQUITY FUND. This fund seeks to provide long-term growth of capital by investing in a diversified portfolio of international equity securities with strong earnings momentum. PUTNAM VOYAGER II FUND. This mutual fund seeks long-term growth of capital. The fund invests primarily in common stocks issued by companies that the fund's management believes have potential for above-average capital appreciation relative to the market. AIM VALUE FUND. This mutual fund seeks long-term growth of capital, then income. The fund invests primarily in equity securities of companies that fund management believes are undervalued. AIM CHARTER FUND. This mutual fund seeks capital growth and current income. It invests primarily in dividend-paying common stocks. PUTNAM INCOME FUND. This mutual fund seeks high current income consistent with prudent risk. It invests in a wide range of bonds issued by U.S. and foreign corporations and government agencies. PUTNAM MONEY MARKET FUND. The fund's objective is to maintain a value of one dollar. Purchases are principally made in investments that have a short-term maturity. At December 31, 1997 and December 31, 1996, participants also had the option to invest in the MICROS Common Stock Fund. This fund consists of shares of MICROS Systems, Inc. common stock and cash held in a money market mutual fund. - 10 - 14 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- G. PAYMENT OF BENEFITS Each participant is entitled to the market value of their vested benefits calculated as of the valuation date following retirement, death, disability or termination of employment. These benefits will be distributed in a single lump sum payment, or in installments to the participant or another qualified plan as designated by the participant if the account balance exceeds $3,500. For termination of service due to other reasons, a participant may receive the value of the vested interest in his or her account as a lump sum distribution. H. PARTICIPANT NOTES Upon approval by the Plan Trustee/Sponsors, participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of the vested portion of their total account balance, including both employee and Company contributions. These transactions are treated as transfers to (from) the investment fund from (to) the Participant Notes fund. Notes are secured by the balance in the participant's account and bear interest at a rate commensurate with local prevailing rates as determined by the Plan Trustee/Sponsors, and approximate fair value. Interest rates on notes outstanding at December 31, 1997 range from 6.0% to 9.5%. Principal and interest are paid ratably through bi-weekly payroll deductions over a period not extending beyond five years from the date of the note. I. ADMINISTRATIVE EXPENSES The Company pays Emjay Corporation directly for certain normal Plan administrative expenses. Company personnel also perform various administrative services for the Plan, including maintenance of participant records on a noncompensatory basis. NOTE 2 - SUMMARY OF ACCOUNTING POLICIES A. BASIS OF ACCOUNTING The Plan's financial statements are prepared on the accrual basis of accounting. B. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ. - 11 - 15 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- C. INVESTMENT VALUATION AND INCOME RECOGNITION The Plan's investments are stated at fair value. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by Plan at year-end. The Company stock is valued at its quoted market price. Participant notes receivable are valued at cost, which approximates fair value. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. D. CONTRIBUTIONS Employee contributions are recorded in the period during which the Company makes payroll deductions from the Plan participants' earnings. Company contributions are recorded in the same period. E. PAYMENT OF BENEFITS Benefits are recorded when paid. NOTE 3 - PLAN AMENDMENT Effective January 29, 1997, the Company amended the Plan in its entirety by adopting the Emjay Corporation Regional Prototype Non-Standardized 401(k) Plan. At this time, the Plan also changed its participant-directed investment options from a combination of Merrill Lynch mutual funds and MICROS common stock to AIM and Putnam mutual funds and MICROS common stock. NOTE 4 - PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA. In the event of the Plan termination, participants will become 100 percent vested in their accounts. NOTE 5 - TAX STATUS The Plan, as amended effective January 29, 1997, is a non-standardized prototype plan sponsored by Emjay Corporation who has represented that it has received a favorable determination letter from the Internal Revenue Service (IRS). In addition, the Company filed a request for determination with the IRS and received a favorable determination letter dated October 10, 1995. Management has represented that the Plan is designed and is currently being operated in compliance with all applicable provisions of the Internal Revenue Code and ERISA. Therefore, no provision for income taxes has been included in the Plan's financial statements. - 12 - 16 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN ADDITIONAL INFORMATION - --------------------------------------------------------------------------------
SCHEDULE I - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - DECEMBER 31, 1997 - -------------------------------------------------------------------------------- CURRENT IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT UNITS COST VALUE - ----------------- ------------------------- ----- ---- ----- Putnam Investments: New Opportunities Fund Class A shares, $48.65 per share 19,715.024 $ 873,958 $ 959,136 OTC & Emerging Growth Fund Class A shares, $16.11 per share 130,883.441 1,941,722 2,108,532 Voyager II Fund Class A shares, $19.11 per share 21,322.022 366,062 407,464 Income Fund Class A shares, $7.11 per share 80,301.736 565,612 570,945 Money Market Fund Class A shares, $1.00 per share 548,688.650 548,689 548,689 AIM Family of Funds: International Equity Fund Class A shares, $16.70 per share 94,477.556 1,522,292 1,577,775 Value Fund Class A shares, $32.42 per share 67,274.980 2,086,557 2,181,055 Charter Fund Class A shares, $12.31 per share 162,525.227 1,941,049 2,000,686 MICROS Common Stock Fund 23,286.150 528,729 597,882 --------------- --------------- 10,374,670 10,952,164 --------------- --------------- Participant Notes (6.0% - 9.5%) 493,600 493,600 --------------- --------------- $ 10,868,270 $ 11,445,764 =============== ===============
- 13 - 17 SCHEDULE II - SCHEDULE OF REPORTABLE TRANSACTIONS - YEAR ENDED DECEMBER 31, 1997* - ---------------------------------------------------------------------------------
PURCHASES SALES --------- ------------------------------------- COST OF CURRENT GAIN/ IDENTITY OF ISSUE PURCHASES COST VALUE (LOSS) - ----------------- --------- ---- ----- ------ Putnam New Opportunities Fund $ 938,984 $ 65,026 $ 70,714 $ 5,688 Putnam OTC & Emerging Growth Fund 2,457,819 516,096 534,788 18,692 Putnam Voyager II Fund 438,729 72,688 80,082 7,414 Putnam Income Fund ` 670,768 105,156 105,885 729 Putnam Money Market Fund 888,190 339,501 339,501 - AIM International Equity Fund 1,876,643 354,351 387,034 32,684 AIM Value Fund 2,429,658 343,101 389,901 46,800 AIM Charter Fund 2,296,418 355,370 392,879 37,510 Merrill Lynch Basic Value Fund 1,569,582 1,683,231 113,649 Merrill Lynch Capital Fund 1,650,057 1,697,550 47,493 Merrill Lynch Global Allocation Fund 1,313,837 1,349,921 36,084 Merrill Lynch Phoenix Fund 1,772,181 1,768,092 (4,089) Merrill Lynch Federal Securities Trust 341,591 350,856 9,265 Merrill Lynch Ready Asset Trust 499,987 547,330 47,343
* Transactions or series of transactions in excess of five percent of the current value of the Plan's assets as of December 31, 1997, as defined in Section 2520.103-6 of the Department of Labor's Rules and Regulations for Reporting and Disclosure Under ERISA. - 14 - 18 MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN - ------------------------------------------- FORM 11-K SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Trustees have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. MICROS SYSTEMS, INC. 401(K) RETIREMENT PLAN Date: August 5, 1998 By: s/Gary C. Kaufman ------------------------ Plan Sponsor - 15 - EX-23 2 CONSENT OF PRICEWATERHOUSECOOPERS LLP 1 EXHIBIT 23 - CONSENT OF INDEPENDENT ACCOUNTANTS CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Forms S-8 (No. 333-07347) of our report dated June 12, 1998, appearing on page 1 of the Annual Report of the MICROS Systems, Inc. 401(k) Retirement Plan on Form 11-K for the year ended December 31, 1997. PricewaterhouseCoopers LLP Linthicum, Maryland August 3, 1998 - 16 - -----END PRIVACY-ENHANCED MESSAGE-----