-----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, KrRBlPmPCy+NvrRf0toDxrbr0vRDDTJoxrVUuCx3MMwOwFbgCrnCQQLYWzXz4cMD R7Ah7Xj2DXEb3Nb9UYbJOw== 0000950153-05-001498.txt : 20050627 0000950153-05-001498.hdr.sgml : 20050627 20050627170346 ACCESSION NUMBER: 0000950153-05-001498 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050627 DATE AS OF CHANGE: 20050627 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTER TEL INC CENTRAL INDEX KEY: 0000350066 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 860220994 STATE OF INCORPORATION: AZ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10211 FILM NUMBER: 05918070 BUSINESS ADDRESS: STREET 1: 1615 S. 52ND STREET STREET 2: . CITY: TEMPE STATE: AZ ZIP: 85281 BUSINESS PHONE: 480-449-8900 MAIL ADDRESS: STREET 1: 1615 S. 52ND STREET STREET 2: . CITY: TEMPE STATE: AZ ZIP: 85281 11-K 1 p70820e11vk.htm 11-K e11vk
Table of Contents

 
 

FORM 11-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549

ANNUAL REPORT

PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

     
þ
  Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934
 
  For the fiscal year ended December 31, 2004
 
   
 
  OR
 
   
o
  Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934
 
   
 
  For the transition period from                      to                     
 
   
 
  Commission file number 333-106868
     
A.
  Full title of the plan and the address of the plan, if different from that of the issuer named below:

Inter-Tel, Incorporated

Tax Deferred Savings Plan and Retirement Trust
1615 South 52nd Street
Tempe, AZ 85281
     
B.
  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Inter-Tel, Incorporated

1615 South 52nd Street
Tempe, AZ 85281
 
 

 


INTER-TEL, INCORPORATED
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST

Financial Statements and Supplemental Schedule
December 31, 2004 and 2003

Table of Contents

 
         
    Page
    3  
 
       
Financial Statements:
       
    4  
    5  
    6  
 
       
Supplemental Schedule:
       
 
       
    11  
 Ex-23.1

2


Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Participants and the Plan Administrator of the

Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust

We have audited the accompanying statements of net assets available for benefits of Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust at December 31, 2004 and 2003, and the related statement of changes in net assets available for benefits for the year ended December 31, 2004. 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 in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust at December 31, 2004 and 2003, and the changes in net assets available for benefits for the year ended December 31, 2004 in conformity with U.S. generally accepted accounting principles.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for purposes of additional analysis and is not a required part of the basic financial statements, but is 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. This supplemental schedule is the responsibility of the Plan’s management, and has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ MAYER HOFFMAN MCCANN P.C.

May 20, 2005
Phoenix, Arizona

3


Table of Contents

INTER-TEL, INCORPORATED
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 
                 
    December 31,  
    2004     2003  
ASSETS:
               
Cash and cash equivalents
  $ 10,265     $ 60,509  
 
           
 
               
Investments, at fair value
    58,773,340       50,187,368  
 
           
 
               
Receivables
               
Employer contribution
    1,752,905       1,549,374  
Participant contributions
    164,999       430  
Interest and dividends
          3,343  
 
           
Total receivables
    1,917,904       1,553,147  
 
           
 
               
Total Assets
    60,701,509       51,801,024  
 
               
LIABILITIES:
               
Excess contribution refund payable
    109,974       185,864  
 
           
 
               
NET ASSETS AVAILABLE FOR BENEFITS
  $ 60,591,535     $ 51,615,160  
 
           

See accompanying notes to financial statements.

4


Table of Contents

INTER-TEL, INCORPORATED
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year ended December 31, 2004

 
         
Additions to net assets attributed to:
       
Interest and dividends
  $ 1,004,780  
Net appreciation in fair value of investments
    4,911,107  
 
       
Contributions:
       
Employer
    1,752,905  
Participant
    5,695,036  
Rollovers
    557,443  
 
     
Total additions
    13,921,271  
 
     
 
       
Deductions from net assets attributed to:
       
Benefits paid to participants
    4,883,549  
Administrative expenses
    61,347  
 
     
Total deductions
    4,944,896  
 
     
 
       
Net increase in net assets
    8,976,375  
 
       
Net assets available for benefits at beginning of year
    51,615,160  
 
     
 
       
Net assets available for benefits at end of year
  $ 60,591,535  
 
     

See accompanying notes to financial statements.

5


Table of Contents

INTER-TEL, INCORPORATED
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004 AND 2003
 

(1)   Description of the Plan

     The following description of the Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

     General - The Plan is a defined contribution plan covering all employees of Inter-Tel, Incorporated and its subsidiaries (the “Company”). The Plan is administered by the Company. Effective January 1, 2001, an employee becomes eligible to participate in the Plan subsequent to the pay period in which the employee completes one hour of service. The Plan was established on December 1, 1984 and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

     Contributions - Each year, participants may contribute a percentage or dollar amount of their annual compensation to the Plan up to the annual IRS maximum through regular payroll deductions. Participants have the opportunity to change the previously elected percentage or dollar contributions each business day, to be effective at the next bi-weekly payroll period. Eligible participants receive a discretionary matching Company contribution. For 2004, the Company matched 50 percent of the participant’s basic contribution limited to six percent of the participant’s 2004 compensation. At the Company’s discretion, it may allocate a non-elective contribution at the end of each Plan year according to the terms of the Plan.

     Participant accounts - Each participant’s account is credited with the participant’s contributions, the Company’s contributions and an allocation of Plan earnings. Allocations are based on participant account balances. The benefit a participant is entitled to receive is the participant’s vested account balance. Participants may elect to have their accounts invested in mutual funds or common stock of the Company as offered by the Plan, or they may elect to have their accounts invested through individual self-directed brokerage accounts.

     Vesting - Participants immediately vest in their voluntary contributions plus actual earnings thereon and amounts rolled over from other plans into the Plan. Vesting in the Company’s matching contribution is based on years of service. The employer contribution portion of each participant account vests starting the first year of service at a graduated amount each year until completing the sixth year of service. After six years, the participant is 100 percent vested in the employer contribution account.

6


Table of Contents

     Forfeitures - Forfeited balances of terminated participants’ nonvested accounts are used to reduce future employer contributions. In 2004, forfeitures totaled $108,487 and are reflected as a reduction of employer contributions receivable and employer contributions at December 31, 2004 in the accompanying financial statements.

     Participant loans - Participants can borrow from their accounts a minimum of $1,000, up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range up to a maximum of five years, with the exception of loans for the purchase of a primary residence, which carry a maximum of up to twenty years. Loans are secured by the balance in the participant’s account and bear interest at a rate commensurate with prevailing rates at the time the loan is made as determined by the loan administrator. Principal and interest is generally paid ratably through payroll deductions.

     Payment of benefits - Upon termination of service, a participant may receive a lump-sum amount equal to the vested value of his or her account. Upon death, disability, or retirement, participants or their beneficiaries may elect to receive lump sums or annual installments over a 10 year period.

     Plan termination - Although the Company intends to continue the Plan indefinitely for the benefit of its participants, the Company has the right to discontinue its contributions at any time and to terminate or modify the Plan, subject to the provisions of ERISA. In the event of termination of the Plan, participants will become 100 percent vested in all of their accounts.

(2)   Significant accounting policies

     The significant accounting policies followed by the Plan are as follows:

     Investment valuation and income recognition - The Plan’s investments are stated at fair value. Securities and mutual funds traded on national securities exchanges are valued at the last quoted sales price on the principal exchange on which they are traded. Securities, limited partnerships and real estate promissory notes for which no price is readily available on the valuation date are valued at fair value as determined by the Plan Administrator. Participant loans are valued at their outstanding balances, 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.

     Use of estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net assets, and the reported amounts of changes in net assets during the year. Actual results could differ from those estimates.

7


Table of Contents

     Concentrations of credit and investment risk - The Plan provides for various investment fund options, which in turn invest in any combination of mutual funds and other investment securities. Investment securities are exposed to various risks, such as interest rate, credit and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in risks in the near term could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits and the statement of changes in net assets available for benefits.

(3)   Investments
 
    Investment information is summarized as follows:

                 
            December 31,  
    2004     2003  
     
Investments at fair value:
               
Common stock
  $ 7,076,257     $ 7,936,622  
Preferred stock
    3,750        
Corporate obligations
    61,039        
Common/collective trust funds
    1,955,373       686,046  
Money market accounts
    8,114,166       9,005,186  
Mutual funds
    38,506,142       30,874,850  
Unit investment trusts
    1,560,551       172,643  
Participant loans
    1,435,900       1,267,283  
Limited partnerships
    17,350       26,831  
Real estate note
          173,700  
Promissory note
    12,612       14,007  
Limited liability company units
    30,200       30,200  
     
Total investments, at fair value
  $ 58,773,340     $ 50,187,368  
     

     During 2004, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in fair value as follows:

         
Common stock
  $ 473,074  
Preferred stock
    60  
Corporate obligations
    13,006  
Common/collective trust funds
    188,408  
Mutual funds
    3,992,916  
Unit investment trusts
    231,396  
Limited partnerships
    12,247  
 
     
 
  $ 4,911,107  
 
     

8


Table of Contents

     Investments that represent five percent or more of the Plan’s net assets at December 31 are as follows:

         
    2004  
First Eagle Overseas A
  $ 5,153,620  
Growth Fund of America CL F
    5,332,963  
Icon Information Tech Fund
    4,075,227  
Inter-Tel, Incorporated Common Stock
    4,126,330  
Pimco Renaissance Fund D
    5,197,518  
Schwab Govt Security Fund
    7,230,469  
Schwab S&P 500 – Investor SHS
    4,364,578  
Vanguard Windsor II Fund
    5,589,981  
         
    2003  
First Eagle Overseas A
  $ 3,637,535  
Growth Fund of America CL F
    4,781,382  
Icon Information Tech Fund
    3,771,845  
Inter-Tel, Incorporated Common Stock
    4,693,292  
Schwab Govt Security Fund
    7,159,907  
Schwab S&P 500 – Investor SHS
    3,640,409  
Vanguard Windsor II Fund
    4,191,084  
Weitz Value Portfolio
    4,855,694  

(4)   Administrative expenses

     Substantially all of the Plan’s administrative expenses, except for record-keeper fees associated with several specific fund expenses and special transaction fees, are paid by the Company.

(5)   Differences between financial statements and Form 5500

     The following is a reconciliation of items reported in these financial statements to the amounts reported in Form 5500 for (1) contributions of participants, (2) interest and dividend income, and (3) corrective distributions:

                                   
 
        Amount per                    
        Financial       Corrective            
  Description     Statements (a)       Distributions       Amount per Form 5500    
 
Contributions: Participant
    $ 5,695,036       $ 99,643       $ 5,794,679    
 
Interest and Dividends
      1,004,780         10,331         1,015,111    
 
Corrective distributions
              (109,974 )       (109,974 )  
 

 
(a) Corrective distributions are reported net in these Financial Statements.

9


Table of Contents

(6)   Party-in-interest transactions

     Certain plan investments are shares of common stock of the Company or are funds held and managed by Charles Schwab Trust Company, the asset custodian; accordingly, these transactions qualify as party-in-interest transactions. Such transactions, while considered party-in-interest transactions under ERISA regulations, are permitted under the provisions of the Plan and are specifically exempt from the prohibition of party-in-interest transaction under ERISA. Fees paid and accrued by the Plan to the record-keeper for administrative fees amounted to $61,347 for the year ended December 31, 2004.

(7)   Income tax status

     The Plan has received a favorable determination letter from the Internal Revenue Service dated February 11, 2004 stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (‘’the Code”) and, therefore, that the related trust is exempt from federal and state income or franchise taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and ERISA, and, therefore, believes that the Plan is qualified and the related trust is exempt from federal and state income or franchise taxes.

10


Table of Contents

     
INTER-TEL, INCORPORATED
  EIN: 86-0220994
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001

SCHEDULE H, LINE 4(i)
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2004

 
                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
    Common Stocks:                    
 
      A C L N Ltd.   115 shares   **   $ 1  
 
      ABB Ltd. ADR   300 shares   **     1,698  
 
      ABM Industries Inc   5 shares   **     90  
 
      ADAPTEC   200 shares   **     1,518  
 
      Advanced Photonix   1,250 shares   **     2,275  
 
      Advanced Viral Research   13,000 shares   **     1,846  
 
      Agere Systems Inc.   9 shares   **     12  
 
      Alexander & Baldwin Inc.   85 shares   **     3,606  
 
      Allianz AG ADR   300 shares   **     3,987  
 
      Aluminum Corp China ADR   5 shares   **     293  
 
      Amazon.com Inc.   200 shares   **     8,858  
 
      Amdocs Limited   200 shares   **     5,250  
 
      American Movil ADR Inc.   100 shares   **     5,204  
 
      American Cap Strategies Ltd.   100 shares   **     3,335  
 
      American Technology Corp.   2,000 shares   **     22,100  
 
      Amerisourcebergen Corporation   100 shares   **     5,868  
 
      Ameritrade Holding Corp. New   200 shares   **     2,844  
 
      Amgen Incorporated   49 shares   **     3,143  
 
      Amsurg Corp.   90 shares   **     2,659  
 
      Amylin Pharmaceuticals Inc.   2,000 shares   **     46,720  
 
      Anheuser Busch Co. Inc.   300 shares   **     15,219  
 
      Annaly Mtg. Mgmt. Inc.   250 shares   **     4,905  
 
      Applied Materials Inc.   600 shares   **     10,260  
 
      Applied Micro Circuits   252 shares   **     1,061  
 
      Arthrocare Corp.   300 shares   **     9,618  
 
      AT & T Corp. New   295 shares   **     5,623  
 
      Atmel Corp.   150 shares   **     588  

11


Table of Contents

                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
   
 
  Avanex Corp.   500 shares   **     1,655  
   
 
  Barrick Gold Corporation   400 shares   **     9,688  
   
 
  Best Buy Inc.   100 shares   **     5,942  
   
 
  BHP Billiton Ltd. ADR   154 shares   **     3,699  
   
 
  Bluefly Inc.   2,597 shares   **     6,025  
   
 
  Bristol-Myers Squibb Co.   8,000 shares   **     204,960  
   
 
  Broadwing Corp.   4 shares   **     36  
   
 
  Brown & Brown Inc.   300 shares   **     13,065  
   
 
  Calamp Corp.   325 shares   **     2,906  
   
 
  Calpine Corporation   1,000 shares   **     3,940  
   
 
  Chesapeake Energy Corporation   230 shares   **     3,795  
   
 
  Chicago Mercantile Exchange   17 shares   **     3,888  
   
 
  China Pete and Chem ADR   45 shares   **     1,845  
   
 
  Cisco System Inc.   5,300 shares   **     102,396  
   
 
  Coca Cola Company   250 shares   **     10,427  
   
 
  Coded Communications Corp.   15,500 shares   **     2  
   
 
  Coeur D Alene Mines CP   4,000 shares   **     15,720  
   
 
  Conexant Systems Inc.   300 shares   **     597  
   
 
  Covad Communications Group Inc.   750 shares   **     1,613  
   
 
  Critical Path Inc   6 shares   **     9  
   
 
  Cummins Engine Inc.   47 shares   **     3,938  
   
 
  Davita Inc.   77 shares   **     3,044  
   
 
  Debt Strategy FD Inc.   375 shares   **     2,625  
   
 
  Dell Inc.   100 shares   **     4,214  
   
 
  Dentsply International   16 shares   **     899  
   
 
  Digital Lightwave Inc.   210 shares   **     277  
   
 
  Diversified Corp.   1,000 shares   **     150  
   
 
  DRDGold Ltd. ADR   5,800 shares   **     8,932  
   
 
  DSL.net Inc.   1,000 shares   **     230  
   
 
  Earthlink Inc.   1,000 shares   **     11,520  
   
 
  Earthshell Corp.   8,000 shares   **     20,000  
   
 
  Eastman Kodak Company   303 shares   **     9,758  
   
 
  Ebay Inc.   213 shares   **     24,780  
   
 
  Edulink Inc.   43,000 shares   **     13  
   
 
  Emulex Corp.   600 shares   **     10,104  
   
 
  Encana Corporation   65 shares   **     3,709  
   
 
  Exxon Mobile Corporation   100 shares   **     5,126  
   
 
  Finisar Corp.   500 shares   **     1,140  
   
 
  Florida Rock Inds Inc.   67 shares   **     3,989  
   
 
  Forest Labs Inc.   100 shares   **     4,486  
   
 
  Foster Wheeler Ltd. 07WT   900 shares   **     639  
   
 
  Foster Wheeler New   45 shares   **     714  
   
 
  Foundry Networks Inc.   50 shares   **     658  
   
 
  Freescale Semiconductor   161 shares   **     2,956  
   
 
  Frozen Food Express Inds   270 shares   **     3,483  

12


Table of Contents

                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
   
 
  General Electric Co.   2,212 shares   **     80,727  
   
 
  Gillette Co.   200 shares   **     8,956  
   
 
  Globalstar Telecom   500 shares   **     3  
   
 
  Goldspring Inc.   20,000 shares   **     2,800  
   
 
  Goodyear Tire & Rubber Company   371 shares   **     5,437  
   
 
  Gunslinger Records Inc.   42,500 shares   **     43  
   
 
  Hewlett Packard Company   689 shares   **     14,448  
   
 
  Hollis-Eden Pharmaceuticals Inc.   1,000 shares   **     9,420  
   
 
  Home Depot Inc.   1,332 shares   **     56,943  
   
 
  HSBC Holdings Plc Adr New   35 shares   **     2,980  
   
 
  I D Biomedical Corp.   125 shares   **     1,869  
   
 
  Impath Inc.   16 shares   **     70  
   
 
  Integra Lifesciences Hldgs.   80 shares   **     2,954  
   
 
  Intel Corp.   5,327 shares   **     124,589  
*  
 
  Inter-Tel Incorporated   150,706 shares   **     4,126,330  
   
 
  International Business Machines   102 shares   **     10,027  
   
 
  Intuitive Surgical New   100 shares   **     4,002  
   
 
  Ionatron Inc.   3,000 shares   **     33,990  
   
 
  Iridium World Communications   60 shares   **     2  
   
 
  ISCO International Inc.   4,640 shares   **     1,670  
   
 
  IVAX Corporation   77 shares   **     1,218  
   
 
  JDS Uniphase Corporation   180 shares   **     571  
   
 
  Jupitermedia Corporation   286 shares   **     6,801  
   
 
  K-Tel International Inc.   362 shares   **     34  
   
 
  Keithley Instruments Inc.   35 shares   **     689  
   
 
  Level 3 Communications   1,300 shares   **     4,407  
   
 
  Ligand Pharmaceuticals   300 shares   **     3,492  
   
 
  Lowes Companies   1,364 shares   **     78,540  
   
 
  Lucent Technologies Inc.   17,568 shares   **     66,056  
   
 
  Mangosoft Inc. New   9 shares   **     79  
   
 
  Marvel Enterprises Inc.   100 shares   **     2,048  
   
 
  Maxim Integrated Products Inc.   65 shares   **     2,755  
   
 
  Maxtor Corp.   1,000 shares   **     5,300  
   
 
  McHenry Metals Golf Corp.   5,000 shares   **     1  
   
 
  McLeod USA Inc.   111 shares   **     80  
   
 
  Merck & Co. Inc.   1,500 shares   **     48,210  
   
 
  Microsemi Corp.   62 shares   **     1,076  
   
 
  Microsoft Corp.   13,916 shares   **     371,842  
   
 
  Mittal Steel   90 shares   **     3,479  
   
 
  Mosaic Company   180 shares   **     2,938  
   
 
  Motorola Inc.   1,465 shares   **     25,196  
   
 
  Moving Bytes Inc.   10,000 shares   **     20  
   
 
  N V E Corporation   54 shares   **     1,504  
   
 
  Nabors Industries Ltd.   55 shares   **     2,821  
   
 
  Neomagic Corp.   500 shares   **     615  

13


Table of Contents

                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
   
 
  Neopharm Inc.   300 shares   **     3,753  
   
 
  Netflix Inc.   2,740 shares   **     33,784  
   
 
  Newmont Mining Corp.   476 shares   **     21,139  
   
 
  NMS Communications   140 shares   **     883  
   
 
  Nokia Corp.   694 shares   **     10,875  
   
 
  Nortel Networks   16,755 shares   **     58,140  
   
 
  Northpoint Communications Holdings   1,000 shares   **     1  
   
 
  O’Reilly Automotive Inc.   500 shares   **     22,525  
   
 
  Oilex Inc.   9,000 shares   **     1  
   
 
  Oracle Corp.   2,200 shares   **     30,184  
   
 
  Oxigene Inc.   300 shares   **     1,650  
   
 
  Palmone Inc.   27 shares   **     852  
   
 
  Palm Source, Inc.   8 shares   **     102  
   
 
  Penn Traffic Co.   500 shares   **     60  
   
 
  Pfizer Inc.   1,000 shares   **     26,890  
   
 
  PNC Bank Corp.   4,400 shares   **     252,736  
   
 
  Polycom   101 shares   **     2,355  
   
 
  Priceline.com, Inc.   33 shares   **     778  
   
 
  Qualcomm Inc.   48 shares   **     2,047  
   
 
  Quicksilver Inc.   125 shares   **     3,724  
   
 
  Qwest Communications International   1,966 shares   **     8,729  
   
 
  Rayonier Inc.   25 shares   **     1,223  
   
 
  Raytheon Company   95 shares   **     3,689  
   
 
  Redhat Inc.   500 shares   **     6,675  
   
 
  RF Micro Devices Inc.   200 shares   **     1,368  
   
 
  Ritchie Brothers Auctioneers   1,000 shares   **     33,060  
   
 
  S B C Communications Inc.   9,335 shares   **     240,563  
   
 
  Sandisk Corp.   200 shares   **     4,994  
   
 
  Save the World Air Inc.   5,900 shares   **     8,319  
   
 
  Sears Roebuck & Company   453 shares   **     23,124  
   
 
  Siebel Systems Inc.   28 shares   **     294  
   
 
  Sirius Satellite Radio   1,400 shares   **     10,668  
   
 
  Sonic Corp.   150 shares   **     4,575  
   
 
  Southwest Airlines   135 shares   **     2,198  
   
 
  Spectralink Corp.   500 shares   **     7,090  
   
 
  Stryker Corp.   1,000 shares   **     48,250  
   
 
  Sun Microsystems Inc.   4,200 shares   **     22,638  
   
 
  Superconductor Tech.   300 shares   **     417  
   
 
  Sysco Corp.   1,000 shares   **     38,170  
   
 
  Target Corp.   203 shares   **     10,550  
   
 
  Telefonos de Mexico   100 shares   **     3,810  
   
 
  Terayon Communication Systems   305 shares   **     827  
   
 
  Texas Instruments Inc.   500 shares   **     12,310  
*  
 
  The Charles Schwab Corp.   1,000 shares   **     11,960  
   
 
  Thor Industries Inc.   100 shares   **     3,716  

14


Table of Contents

                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
   
 
  Tidewater Inc./Citizen Certificates   110 shares   **     3,917  
   
 
  Time Warner Inc.   100 shares   **     1,945  
   
 
  Triquint Semiconductor   200 shares   **     890  
   
 
  Tyco Intl. Ltd.   500 shares   **     17,870  
   
 
  Universal Tech Institute   400 shares   **     15,248  
   
 
  Varian Med Sys   85 shares   **     3,675  
   
 
  Vitalworks Inc.   1,548 shares   **     6,889  
   
 
  Vitesse Semiconductor Corp.   446 shares   **     1,574  
   
 
  Vyyo Inc.   120 shares   **     1,033  
   
 
  Wachovia Corp.   2,780 shares   **     146,228  
   
 
  Walgreen Company   203 shares   **     7,782  
   
 
  Washington Mutual Inc.   209 shares   **     8,837  
   
 
  Wattage Monitor, Inc.   6,000 shares   **     1  
   
 
  Wheaton River Min. Ltd.   2,000 shares   **     6,520  
   
 
  Willis Group Holdings   300 shares   **     12,351  
   
 
  Xcelera, Inc.   50 shares   **     17  
   
 
  Xerox Corp.   2 shares   **     33  
   
 
  Y D I Wireless Inc.   450 shares   **     2,628  
   
 
  Yum Brands Inc.   75 shares   **     3,538  
   
 
  3Com Corp.   100 shares   **     416  
   
 
  3M Company   460 shares   **     37,790  
   
 
  8X8 Inc.   2,500 shares   **     10,174  
   
 
                     
   
 
 
Total common stocks
                7,076,257  
   
 
                     
 
    Preferred Stock:                    
   
 
  Annaly Mtg Mgmt Pfd.   150 shares   **     3,750  
   
 
                     
 
    Mutual Funds:                    
   
 
  Acadian Emerging Markets Port Instl.   348 shares   **     7,098  
   
 
  AIM Technology Fund   59 shares   **     1,505  
   
 
  American Century Income & Growth   359 shares   **     11,011  
   
 
  Ameristock Fund   61 shares   **     2,462  
   
 
  Ariel Appreciation Fund   165 shares   **     7,884  
   
 
  Ariel Fund   12,098 shares   **     643,259  
   
 
  Artisan International Fund   682 shares   **     15,105  
   
 
  Artisan Midcap Fund   169 shares   **     5,004  
   
 
  Baron Asset Fund   63 shares   **     3,293  
   
 
  Baron Growth Fund   63,468 shares   **     2,847,827  
   
 
  Burnham Financial Services Fund   144 shares   **     3,229  
   
 
  Calamos Growth FD CL A   26,631 shares   **     1,410,938  
   
 
  Calvert Income Fund   149 shares   **     2,534  
   
 
  Clipper Focus Fund   486 shares   **     8,421  
   
 
  Constellation Tip Health Biotech II   147 shares   **     2,141  
   
 
  Dodge & Cox Balanced Fund   574 shares   **     45,584  
   
 
  Dodge & Cox International Stock Fund   2,196 shares   **     67,299  

15


Table of Contents

                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
   
 
  Dodge & Cox Stock Fund   36 shares   **     4,623  
   
 
  Dreyfus Appreciation Fund   992 shares   **     38,377  
   
 
  Dreyfus Premier Emerging Mkts CL A   489 shares   **     9,583  
   
 
  Dreyfus Small Cap Stock Index   146 shares   **     2,969  
   
 
  Equity Office Properties TR   50 shares   **     1,456  
   
 
  Excelsior Val & Restruct. Fund   630 shares   **     26,733  
   
 
  Fidelity Magellan Fund   303 shares   **     31,493  
   
 
  First Eagle Gold Fund CL A   2,139 shares   **     35,343  
   
 
  First Eagle Overseas A   236,730 shares   **     5,153,620  
   
 
  Fording CA Coal Trust   55 shares   **     4,243  
   
 
  FPA Capital Fund   974 shares   **     38,954  
   
 
  FPA New Income   7,702 shares   **     86,112  
   
 
  Franklin Small Cap Growth CL A   1,433 shares   **     48,975  
   
 
  Fremont US Micro Cap Fund   1,136 shares   **     37,090  
   
 
  Growth Fund of America CL F   194,777 shares   **     5,332,963  
   
 
  Harbor Bond Fund   104 shares   **     1,227  
   
 
  Harbor International Growth Fund   157 shares   **     1,444  
   
 
  Hennessy Cornerstone Growth Fund   557 shares   **     10,274  
   
 
  Icon Information Tech Fund   447,827 shares   **     4,075,227  
   
 
  Janus Growth & Income Fund   348 shares   **     11,209  
   
 
  Janus Mid Cap Value Inv Shares   764 shares   **     16,874  
   
 
  Janus Overseas Fund   137 shares   **     3,322  
   
 
  Julius Baer Intl Equity FD CL I   622 shares   **     19,984  
   
 
  JP Morgan Core Bond Fund   194,926 shares   **     2,128,594  
   
 
  Laudus US Small Cap Investor Shares   118 shares   **     1,617  
   
 
  Loomis Sayles Small Cap   592 shares   **     15,371  
   
 
  Managers Special Equity Fund   33 shares   **     3,008  
   
 
  Meridian Value Fund   610 shares   **     23,238  
   
 
  MFA Mortgage Investments   300 shares   **     2,646  
   
 
  MFS Research Fund CL A   82 shares   **     1,659  
   
 
  Navellier Mid Cap Growth   1,678 shares   **     43,708  
   
 
  NB Genesis Fund   127 shares   **     3,782  
   
 
  NB Ltd Maturity Bond Fund   462 shares   **     4,313  
   
 
  Oakmark Equity Income Fund   6,112 shares   **     143,631  
   
 
  Oakmark Fund   548 shares   **     22,877  
   
 
  Oakmark International Fund   283 shares   **     5,990  
   
 
  Pimco RCM Global Healthcare Class D   554 shares   **     12,115  
   
 
  Pimco Real Return FD Instl.   487 shares   **     5,591  
   
 
  Pimco Renaissance Fund D   194,664 shares   **     5,197,518  
   
 
  Pimco Total Return Fund Instl Class   5,903 shares   **     62,983  
   
 
  Pioneer Mid Cap Value Fund Class A   2,076 shares   **     51,662  
   
 
  Putnam Growth & Income CL A   1,772 shares   **     34,377  
   
 
  Putnam Intl Equity Fund CL A   113 shares   **     2,671  
   
 
  Royce Low Priced Stock Fund   556 shares   **     8,523  
   
 
  Royce Opportunity Fund   590 shares   **     7,848  

16


Table of Contents

                             
            (c) Description of            
            investment including            
            maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
 
      Royce Special Equity Fund   381 shares   **     7,477  
 
      Royce Total Return Fund   1,638 shares   **     20,085  
 
      RS Smaller Company Growth Fund   749 shares   **     16,912  
 
      Rydex Juno Fund   1,063 shares   **     20,384  
 
      Rydex Venture 100 Fund   92 shares   **     1,847  
*
      Schwab S&P 500 – Investor SHS   234,277 shares   **     4,364,578  
*
      Schwab Total Bd Mkt Index Fund   1,344 shares   **     13,504  
*
      Schwab Total Stock Mkt. – Inv.   11,782 shares   **     239,878  
*
      Schwab 1000 Fund   408 shares   **     14,113  
 
      Selected American Shares   630 shares   **     23,231  
 
      Senior High Income Portfolio Inc.   102 shares   **     618  
 
      Sound Shore Fund   521 shares   **     19,124  
 
      Strong Advisor Common Stock FD CL   624 shares   **     14,127  
 
      Strong Mid Cap Disciplined Fund   275 shares   **     6,142  
 
      Strong Ultra Short Fund   1,608 shares   **     14,796  
 
      Tamarack Micro-Cap Value Fund CL   863 shares   **     17,629  
 
      Templeton Developing Markets Trust   816 shares   **     15,119  
 
      Templeton Dragon Fund   150 shares   **     2,621  
 
      Templeton Emerging Markets Fund   175 shares   **     2,888  
 
      Templeton Foreign Fund CL A   4,460 shares   **     54,854  
 
      Third Avenue Value Fund   45 shares   **     2,309  
 
      Thompson Plumb Growth Fund   235 shares   **     10,999  
 
      Torray Fund   111 shares   **     4,541  
 
      Turner Midcap Growth Fund CL I   192 shares   **     4,695  
 
      Van Kampen Real Estate Sec Fund   556 shares   **     12,860  
 
      Vanguard GNMA Fund Investor SHS   284 shares   **     2,968  
 
      Vanguard Growth Index Fund   645 shares   **     17,035  
 
      Vanguard Healthcare Fund   549 shares   **     69,621  
 
      Vanguard International Growth Portfolio   765 shares   **     14,422  
 
      Vanguard 500 Index FD Investor SHS   315 shares   **     35,140  
 
      Vanguard Windsor II Fund   181,906 shares   **     5,589,981  
 
      William Blair Intl Growth Fund   509 shares   **     11,233  
 
                         
 
     
Total mutual funds
                38,506,142  
 
                         
    Unit Investment Trusts:                    
 
      Ishares MSCI Grmny Idx F   70 shares   **     1,304  
 
      Ishares TR GS Investop   10 shares   **     1,115  
 
      Ishares TR Lehman Tips   30 shares   **     3,174  
 
      Ishares Trust Dow Jones   25,000 shares   **     1,535,000  
 
      Nasdaq 100 Shares   500 shares   **     19,958  
 
                         
 
     
Total unit investment trusts
                1,560,551  
 
                         
    Money Market Accounts:                    
*
      Schwab Money Market Fund   822,818 shares   **     822,818  
*
      Schwab Cash Reserves Sweep Shares   40,991 shares   **     40,991  
*
      Schwab US Treasury Money Fund   19,592 shares   **     19,592  
*
      Schwab Govt Security Fund   7,230,470 shares   **     7,230,469  

17


Table of Contents

                         
        (c) Description of            
        investment including            
        maturity date, rate of            
    (b) Identity of issue, borrower,   interest, collateral, par     (d)   (e) Current  
(a)   lessor or similar party   or maturity value     Cost   value  
*  
Stock Liquidity
  296 shares   **     296  
   
 
                 
   
Total money market accounts
                8,114,166  
   
 
                 
 
   
Common/Collective Trusts:
                   
*  
Schwab Managed Retirement 2010
  35,461 shares   **     467,025  
*  
Schwab Managed Retirement 2020
  58,035 shares   **     815,396  
*  
Schwab Managed Retirement 2030
  29,555 shares   **     438,884  
*  
Schwab Managed Retirement 2040
  15,615 shares   **     234,068  
   
 
                 
   
 
                1,955,373  
   
 
                 
   
Corporate Obligations
                   
   
Swiss Govt
  65,000 units   **     61,039  
   
 
                 
 
   
Limited Partnerships:
                   
   
Beaconsfield LP Fund I
  1 unit   **     17,350  
   
 
                 
 
   
Limited Liability Company Units
                   
   
Angstrom Preferred Holdings, LLC
  20,000 units   **     30,200  
   
 
                 
 
   
Promissory Note:
                   
   
Baptist Foundation Promissory Note
                   
   
 
  Interest rate:            
   
 
  11.75%; maturity            
   
 
  date: November 7,            
   
 
  2012; unsecured   **     12,612  
   
 
                 
 
*  
Participant loans
  Interest rates            
   
 
  ranging from            
   
 
  6.0% to 11.5%   **     1,435,900  
   
 
                 
 
   
Total investments
              $ 58,773,340  
   
 
                 
 
*   Denotes a party-in-interest
 
**   Disclosure of historical cost information is not required for participant directed investments.

18


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust has duly caused this report to be signed by the undersigned hereunto duly authorized.

Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust

     
/s/ Kurt R. Kneip
   

   
Inter-Tel, Incorporated
   
Kurt R. Kneip
   
Sr. Vice President and Chief Financial Officer
   
Date: June 27, 2005
   

19


Table of Contents

EXHIBIT INDEX

Exhibit:

     Exhibit 23.1 — Consent of Independent Registered Public Accounting Firm

20

EX-23.1 2 p70820exv23w1.htm EX-23.1 exv23w1
 

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

As independent registered public accountants, we hereby consent to the incorporation by reference in Registration Statement on Form S-8 (No. 333-123506) of our report dated May 20, 2005, relating to the financial statements and supplemental schedule of Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust as of December 31, 2004 and 2003, and for the year ended December 31, 2004 included in this Form 11-K. It should be noted that we have not audited any financial statements of the Plan subsequent to December 31, 2004, or performed any audit procedures subsequent to the date of our report.

/s/ MAYER HOFFMAN MCCANN P.C.

Phoenix, Arizona
June 24, 2005

 

-----END PRIVACY-ENHANCED MESSAGE-----