<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
---------------
/x/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 1996
OR
/ / TRANSACTION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to _________
Commission file number: 33-34004
---------------
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
ANALYSIS & TECHNOLOGY, INC.
ROUTE 2, P.O. BOX 220
NORTH STONINGTON, CONNECTICUT 06359
<PAGE> 2
REQUIRED INFORMATION
The following documents, which are attached hereto as Appendices, are
hereby furnished for the Analysis & Technology, Inc. Savings and Investment
Plan (the "Plan").
1. Independent auditors' report.
2. Statements of net assets available for Plan benefits as of
December 31, 1996 and 1995.
3. Statements of changes in net assets available for Plan benefits
for the years ended December 31, 1996 and 1995.
4. Notes to financial statements.
5. Consent of KPMG Peat Marwick LLP.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
By: /s/ Thomas M. Downie
--------------------------
Thomas M. Downie
Member, Analysis & Technology, Inc.
Savings and Investment Plan Committee
Date: June 20, 1997
<PAGE> 4
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1996 AND 1995
(WITH INDEPENDENT AUDITORS' REPORT THEREON)
<PAGE> 5
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Table of Contents
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report 1
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4-10
Schedule 1 Item 27a Schedule of Assets Held for Investment Purposes 11
Schedule 2 Item 27d Schedule of Reportable Transactions 12
</TABLE>
Note: Schedules regarding party-in-interest transactions, nonexempt
transactions, loans or fixed income obligations, leases in default or
classified as uncollectible, and assets held for investment purposes
which were both acquired and disposed of within the plan year, as
required by Section 103(b)(3) of the Employee Retirement Income
Security Act of 1974, have not been included herein as the information
is not applicable.
<PAGE> 6
[KPMG PEAT MARWICK LLP LETTERHEAD]
Independent Auditors' Report
The Savings and Investment Plan Committee
Analysis & Technology, Inc.:
We have audited the accompanying statements of net assets available for plan
benefits of the Analysis & Technology, Inc. Savings and Investment Plan as of
December 31, 1996 and 1995, and the related statements of changes in net
assets available for plan benefits for the years then ended. 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 generally accepted auditing
standards. Those standards 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.
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 plan benefits of the
Analysis & Technology, Inc. Savings and Investment Plan as of December 31,
1996 and 1995, and the changes in net assets available for plan benefits for
the years then ended in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions 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 audit
of the basic financial statements as of and for the year ended December 31,
1996 and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
-------------------------
KPMG Peat Marwick LLP
May 8, 1997
<PAGE> 7
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Investments in T. Rowe Price Group funds (note 3):
Prime Reserve Fund $ 4,313,533 4,338,166
Prime Reserve Fund-Insurance 15,592 11,017
New Era Fund 7,335,574 6,070,976
New Income Fund 4,247,173 4,283,879
Equity Income Fund 18,601,861 13,260,394
Spectrum Income Fund 1,705,306 1,553,679
Spectrum Growth Fund 5,262,953 4,027,368
International Stock Fund 4,446,034 2,394,318
Stable Value Common Trust Fund (note 5) 7,627,341 6,259,602
Small-Cap Value Fund 2,392,903 1,523,946
Growth and Income Fund 3,540,701 1,389,894
Science and Technology Fund 8,653,803 6,667,437
Blue Chip Growth Fund 3,190,234 610,923
Investment in Fidelity funds (note 3):
Magellan Fund 1,490,500 1,229,676
Contra Fund 1,897,928 904,077
Puritan Fund 487,175 436,505
----------- ----------
75,208,611 54,961,857
Analysis & Technology, Inc. common stock (note 3) 1,056,428 853,800
----------- ----------
Total investments 76,265,039 55,815,657
Loans to participants (note 1(d)) 3,287,417 2,773,254
----------- ----------
Net assets available for plan benefits $79,552,456 58,588,911
=========== ==========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 8
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Statements of Changes in Net Assets Available for Plan Benefits
For the years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net realized gains $ 377,464 1,079,957
Net unrealized gains 4,224,942 5,479,251
Interest 238,120 191,170
Dividends 4,821,723 3,700,360
------------ -----------
9,662,249 10,450,738
------------ -----------
Contributions:
Participant 6,726,845 5,241,245
Employer 2,014,768 1,567,973
------------ -----------
8,741,613 6,809,218
------------ -----------
Total additions 18,403,862 17,259,956
------------ -----------
Deductions from net assets attributed to:
Benefits paid (3,131,046) (3,945,892)
Insurance premiums (8,592) (9,275)
Administrative expenses (1,485) (1,305)
------------ -----------
Total deductions (3,141,123) (3,956,472)
------------ -----------
Net increase prior to transfers from other plans 15,262,739 13,303,484
Transfers from other plans (note 9) 5,700,806 1,920,452
------------ -----------
Net increase in net assets available for benefits 20,963,545 15,223,936
Net assets available for benefits:
Beginning of year 58,588,911 43,364,975
------------ -----------
End of year $ 79,552,456 58,588,911
============ ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 9
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1996 and 1995
(1) Description of Plan
The following brief description of the Analysis & Technology, Inc.
Savings and Investment 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 qualified defined contribution plan covering Analysis
& Technology, Inc. employees 21 years of age or older who are
full-time employees or who have completed at least 1,000 hours of
service during the 12-consecutive-month period commencing with
their employment date with Analysis & Technology, Inc. (the
"Company"). The Plan covers all employees working in all cost
centers in the Analysis & Technology segment, Engineering
Technology Center ("ETC") segment, Fleet Support Center ("FSC")
segment, and Government Systems Segment ("GSS") segment, as well as
employees of Integrated Performance Decisions, Inc. ("IPD"),
Applied Science Associates, Inc. ("ASA") and Automation Software,
Inc. ("ASI"). The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA").
(b) Contributions
The maximum salary savings (pre-tax) contribution that an employee
may elect to contribute to the Plan is 16% of annual gross
compensation. Depending on the particular cost center, segment or
subsidiary, the Company may match this salary savings contribution
at a rate of 50%, up to a specified percentage of the participant's
annual gross compensation. The Company may also make discretionary
profit-sharing contributions to employees working for certain cost
centers, segments or subsidiaries.
(c) Vesting
Participants are fully vested to the extent of their salary savings
contributions and earnings on those contributions.
Participants in all cost centers, segments and subsidiaries,
excluding ETC, vest in Company contributions and the related
earnings based on the following schedule:
<TABLE>
<CAPTION>
Years of Percentage of vesting
credited service in employer contributions
---------------- -------------------------
<S> <C>
Less than three years 0%
Three years 20%
Four years 40%
Five years 60%
Six years 80%
Seven years or more 100%
</TABLE>
4
<PAGE> 10
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
Participants at ETC vest as follows:
<TABLE>
<CAPTION>
Years of Percentage of vesting
credited service in employer contributions
---------------- -------------------------
<S> <C>
Less than one year 0%
One year 33-1/3%
Two years 66-2/3%
Three years or more 100%
</TABLE>
(d) Loans to Participants
Participants may borrow from their vested account balance under
certain circumstances as provided in the Plan agreement. Interest
on loans is charged at the "local prevailing commercial interest
rate," with a repayment term not to exceed five years. This term
can be extended if the loan is used for the purchase of the
participant's primary residence. No more than two loans can be
granted to the same participant in any 12-month period and only two
loans may remain outstanding at any time.
(e) Payment of Benefits
Upon termination from the plan, a participant's vested accrued
benefits in his or her account shall be distributed, as elected by
the participant, in either a single lump-sum payment, or, provided
the participant's vested account exceeds $3,500, in periodic
installments (at least annual), subject to certain minimum
distribution rules.
(f) Hardship Withdrawal
The Plan provides for hardship withdrawals, as defined by the Plan,
of the participant's salary savings, additional contributions, and
the vested portion of the employer matching contributions.
(g) Forfeitures
Nonvested employer contributions are forfeited by a participant who
terminates employment and are used to reduce subsequent employer
contributions under the Plan. Forfeitures were approximately
$150,000 during 1996 and $124,000 in 1995.
(2) Summary of Significant Accounting Policies
(a) Basis of Presentation
The accompanying financial statements of the Plan have been
prepared using the accrual basis of accounting in accordance with
generally accepted accounting principles.
(Continued)
5
<PAGE> 11
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
The preparation of financial statements in conformity with
generally accepted accounting principles requires estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
additions and deductions to net assets available for benefits
during the reporting period. Actual results could differ from those
estimates.
(b) Investments
Investments are stated at aggregate fair market values, which are
based principally on published market prices, except for the Stable
Value Common Trust Fund. The Stable Value Common Trust Fund invests
primarily in investment contracts which are stated at contract
value, which represents contributions plus interest accrued at the
contract rate, less withdrawals. The underlying investment
contracts of the Stable Value Common Trust Fund are considered
fully benefit responsive. Contract value approximates fair value.
Investment income is recognized when earned, and purchases and
sales of securities are recorded on a trade-date basis.
(c) Expenses
All expenses of the Plan are paid by the Company in accordance with
the Plan agreement, except participants who request a second loan
from the Plan must pay a $15 loan origination fee.
(3) Investments
The Plan's investments are held in trust and managed by T. Rowe Price
Trust Company ("T. Rowe Price"). The following table summarizes the
investments held by T. Rowe Price at December 31, 1996 and 1995.
Investments representing 5% or more of net assets available for
benefits are indicated by an asterisk (*).
<TABLE>
<CAPTION>
1996 1995
---------------------------- -----------------------------
Fair Fair
market/ market/
Number of contract Number of contract
shares value shares value
------ ----- ------ -----
<S> <C> <C> <C> <C>
T. Rowe Price Funds:
Prime Reserve Fund 4,313,533 4,313,533* 4,338,166 4,338,166*
Prime Reserve Fund-Insurance 15,592 15,592 11,017 11,017
New Era Fund 281,488 7,335,574* 268,034 6,070,976*
New Income Fund 477,747 4,247,173* 461,625 4,283,879*
Equity Income Fund 825,282 18,601,861* 662,688 13,260,394*
Spectrum Income Fund 152,259 1,705,306 138,228 1,553,679
Spectrum Growth Fund 347,849 5,262,953* 298,545 4,027,368*
International Stock Fund 322,176 4,446,034* 195,774 2,394,318
</TABLE>
(Continued)
6
<PAGE> 12
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
1996 1995
---------------------------- ----------------------------
Fair Fair
market/ market/
Number of contract Number of contract
shares value shares value
------ ----- ------ -----
<S> <C> <C> <C> <C>
Stable Value Common
Trust Fund 7,627,341 7,627,341* 6,259,602 6,259,602*
Small-Cap Value Fund 122,337 2,392,903 92,193 1,523,946
Growth and Income Fund 156,461 3,540,701 72,466 1,389,894
Science and Technology Fund 291,276 8,653,803* 228,964 6,667,437*
Blue Chip Growth Fund 167,378 3,190,234 40,485 610,923
Fidelity Funds:
Magellan Fund 18,481 1,490,500 14,302 1,229,676
Contra Fund 45,028 1,897,928 23,779 904,077
Puritan Funds 28,258 487,175 25,662 436,505
----------- -----------
$75,208,611 $54,961,857
=========== ===========
</TABLE>
A brief description of each fund's investment objective follows:
Prime Reserve Fund invests in liquid short-term debt obligations of
high quality corporations.
New Era Fund seeks to generate long-term growth of capital through
investments in a diversified group of companies whose tangible asset
value and/or earnings are expected to grow faster than the rate of
inflation over the long-term.
New Income Fund seeks the highest income over the long-term consistent
with preservation of capital.
Equity Income Fund provides current income by investing in dividend
paying common stocks with favorable prospects for capital appreciation.
Spectrum Income Fund provides a high level of income and preservation
of capital by investing primarily in a diversified group of mutual
funds which invest principally in fixed income securities.
Spectrum Growth Fund seeks to achieve long-term growth of capital and
growth of income by investing primarily in a diversified group of
mutual funds which invest principally in equity securities. Current
income is a secondary objective of the fund.
International Stock Fund seeks long-term growth of capital and income
principally through a diversified portfolio of stocks of established
non-U.S. issuers.
7
<PAGE> 13
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
Stable Value Common Trust Fund invests in guaranteed investment
contracts with varying maturity periods from a number of insurance
companies and other stable value contracts.
Small Cap Value Fund seeks long-term growth of capital by investing
primarily in the common stocks of companies with relatively small
market capitalizations which are believed to be undervalued.
Growth and Income Fund seeks long-term growth of capital, a reasonable
level of current income, and an increase in future income.
Science and Technology Fund seeks long-term growth of capital through
investment in common stocks of companies which generate growth
primarily through new technological developments.
Blue Chip Growth Fund seeks long-term growth of capital by investing
primarily in the common stocks of large and medium-sized companies with
potential for above-average growth.
Magellan Fund seeks long-term growth of capital and income through a
diversified portfolio of common stocks of small, medium, and large
companies.
Contra Fund seeks long-term capital appreciation through investments in
common stocks of companies in the midst of turnaround strategies.
Puritan Fund seeks to achieve high current income principally through a
diversified portfolio of high yield stocks and bonds. Long-term capital
appreciation is a secondary objective of the fund.
Analysis & Technology, Inc. common stock is offered to Plan
participants as an additional investment option. T. Rowe Price
purchases the shares in the open market at the time contributions are
received. The timing of all stock transactions is subject to the
availability of Analysis & Technology, Inc. stock on the open market,
and prices are set by the market. The market price per share and number
of shares held by the Plan at December 31, 1996 and 1995 were as
follows:
<TABLE>
<CAPTION>
1996 1995
------------------------------- -----------------------------
Number of Market price Number of Market price
shares per share shares per share
------ --------- ------ ---------
<S> <C> <C> <C>
72,857 $ 14.50 59,395 $ 14.375
</TABLE>
8
<PAGE> 14
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
(4) Detailed Changes in Net Assets
Changes in net assets for the year ended December 31, 1996 were:
<TABLE>
<CAPTION>
Prime
Prime Reserve New New Equity Spectrum
Reserve Insurance Era Income Income Income
Year ended December 31, 1996 Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ -- $ -- $ 112,816 $ ( 28,685) $ 89,398 $ (4,823)
Net unrealized gains (losses) -- -- 785,596 (152,867) 1,723,470 (823)
Interest 11,207 -- 24,161 14,672 48,937 7,137
Dividends 205,487 544 543,230 278,192 1,124,959 122,140
----------- ----------- ----------- ----------- ------------ -----------
216,694 544 1,465,803 111,312 2,986,764 123,631
----------- ----------- ----------- ----------- ------------ -----------
Contributions:
Participants' 310,446 13,568 400,433 271,297 1,160,457 234,166
Employer's 94,970 -- 118,549 98,910 353,613 78,012
----------- ----------- ----------- ----------- ------------ -----------
405,416 13,568 518,982 370,207 1,514,070 312,178
----------- ----------- ----------- ----------- ------------ -----------
Total additions 622,110 14,112 1,984,785 481,519 4,500,834 435,809
----------- ----------- ----------- ----------- ------------ -----------
Deductions from net assets attributed to:
Benefits paid to participants (304,020) (380) (389,894) (149,405) (594,127) (58,909)
Insurance premiums paid -- (8,592) -- -- -- --
Administrative expenses (68) -- (152) (70) (291) (42)
----------- ----------- ----------- ----------- ------------ -----------
Total deductions (304,088) (8,972) (390,046) (149,475) (594,418) (58,951)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) prior to
interfund transfers 318,022 5,140 1,594,739 332,044 3,906,416 376,858
Interfund transfers (339,820) (565) (237,071) (344,443) 440,135 (203,351)
Participant loan withdrawals (58,108) -- (194,960) (95,046) (328,351) (58,794)
Participant loan repayments 55,273 -- 101,890 70,739 222,124 36,914
Transfers from other plans -- -- -- -- 1,101,143 --
----------- ----------- ----------- ----------- ------------ -----------
(342,655) (565) (330,141) (368,750) 1,435,051 (225,231)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) (24,633) 4,575 1,264,598 (36,706) 5,341,467 151,627
Net assets available for benefits:
Beginning of year 4,338,166 11,017 6,070,976 4,283,879 13,260,394 1,553,679
----------- ----------- ----------- ----------- ------------ -----------
End of year $ 4,313,533 $ 15,592 $ 7,335,574 $ 4,247,173 $ 18,601,861 $ 1,705,306
=========== =========== =========== =========== ============ ===========
</TABLE>
Changes in net assets for the year ended December 31, 1995 were:
<TABLE>
<CAPTION>
Prime
Prime Reserve New New Equity Spectrum
Reserve Insurance Era Income Income Income
Year ended December 31, 1995 Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ -- $ -- $ 181,707 $ 41,083 $ 228,048 $ 9,845
Net unrealized gains (losses) -- -- 536,985 369,188 2,303,102 124,437
Interest 11,508 -- 22,131 13,277 39,799 6,381
Dividends 222,596 576 418,994 279,079 753,326 94,581
----------- ----------- ----------- ----------- ------------ -----------
234,104 576 1,159,817 702,627 3,324,275 235,244
----------- ----------- ----------- ----------- ------------ -----------
Contributions:
Participants' 276,134 9,076 428,988 311,444 910,649 231,934
Employer's 102,813 -- 124,880 95,270 255,362 68,617
----------- ----------- ----------- ----------- ------------ -----------
378,947 9,076 553,868 406,714 1,166,011 300,551
----------- ----------- ----------- ----------- ------------ -----------
Total additions 613,051 9,652 1,713,685 1,109,341 4,490,286 535,795
----------- ----------- ----------- ----------- ------------ -----------
Deductions from net assets attributed to:
Benefits paid to participants (616,567) (470) (391,578) (312,462) (1,011,055) (50,789)
Insurance premiums paid -- (9,275) -- -- -- --
Administrative expenses (118) -- (214) (114) (251) (17)
----------- ----------- ----------- ----------- ------------ -----------
Total deductions (616,685) (9,745) (391,792) (312,576) (1,011,306) (50,806)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) prior to
interfund transfers (3,634) (93) 1,321,893 796,765 3,478,980 484,989
Interfund transfers (508,559) (29) (1,044,222) (524,900) 36,499 (14,247)
Participant loan withdrawals (124,267) -- (173,034) (125,945) (267,929) (46,390)
Participant loan repayments 60,079 -- 104,817 77,745 210,839 32,010
Transfers from other plans 585,881 -- -- 62,822 -- --
----------- ----------- ----------- ----------- ------------ -----------
13,134 (29) (1,112,439) (510,278) (20,591) (28,627)
----------- ----------- ----------- ----------- ------------ -----------
Net increase (decrease) 9,500 (122) 209,454 286,487 3,458,389 456,362
Net assets available for benefits:
Beginning of year 4,328,666 11,139 5,861,522 3,997,392 9,802,005 1,097,317
----------- ----------- ----------- ----------- ------------ -----------
End of year $ 4,338,166 $ 11,017 $ 6,070,976 $ 4,283,879 $ 13,260,394 $ 1,553,679
=========== =========== =========== =========== ============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
Stable
Spectrum International Value Small-Cap Growth & Science &
Growth Stock Common Value Income Technology
Year ended December 31, 1996 Fund Fund Trust Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ 41,225 $ 28,815 $ -- $ 18,470 $ 15,009 $ 123,006
Net unrealized gains (losses) 440,774 330,363 -- 276,300 337,163 (10,020)
Interest 17,982 16,510 19,832 8,022 6,970 42,589
Dividends 364,010 118,560 374,856 118,873 182,553 927,406
----------- ----------- ----------- ----------- ----------- -----------
863,991 494,248 394,688 421,665 541,695 1,082,981
----------- ----------- ----------- ----------- ----------- -----------
Contributions:
Participants' 482,967 363,879 376,843 294,443 315,182 1,106,142
Employer's 171,114 129,173 115,774 87,459 80,951 343,159
----------- ----------- ----------- ----------- ----------- -----------
654,081 493,052 492,617 381,902 396,133 1,449,301
----------- ----------- ----------- ----------- ----------- -----------
Total additions 1,518,072 987,300 887,305 803,567 937,828 2,532,282
----------- ----------- ----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (147,626) (142,596) (384,401) (79,231) (70,173) (306,651)
Insurance premiums paid -- -- -- -- -- --
Administrative expenses (138) (84) (137) (30) (24) (335)
----------- ----------- ----------- ----------- ----------- -----------
Total deductions (147,764) (142,680) (384,538) (79,261) (70,197) (306,986)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers 1,370,308 844,620 502,767 724,306 867,631 2,225,296
Interfund transfers (122,512) 96,624 (137,403) 146,630 182,767 (125,162)
Participant loan withdrawals (125,504) (62,626) (191,007) (29,524) (35,109) (338,671)
Participant loan repayments 113,293 71,955 92,241 27,545 34,377 224,903
Transfers from other plans -- 1,101,143 1,101,141 -- 1,101,141 --
----------- ----------- ----------- ----------- ----------- -----------
(134,723) 1,207,096 864,972 144,651 1,283,176 (238,930)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 1,235,585 2,051,716 1,367,739 868,957 2,150,807 1,986,366
Net assets available for benefits:
Beginning of year 4,027,368 2,394,318 6,259,602 1,523,946 1,389,894 6,667,437
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 5,262,953 $ 4,446,034 $ 7,627,341 $ 2,392,903 $ 3,540,701 $ 8,653,803
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Stable
Spectrum International Value Small-Cap Growth & Science &
Growth Stock Common Value Income Technology
Year ended December 31, 1995 Fund Fund Trust Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ 65,100 $ 31,545 $ -- $ 19,574 $ 21,826 $ 436,828
Net unrealized gains (losses) 523,394 153,455 -- 192,686 180,432 809,897
Interest 15,584 15,920 21,462 5,597 5,103 26,433
Dividends 270,068 72,908 372,751 69,138 76,510 888,596
----------- ----------- ----------- ----------- ----------- -----------
874,146 273,828 394,213 286,995 283,871 2,161,754
----------- ----------- ----------- ----------- ----------- -----------
Contributions:
Participants' 489,260 397,855 428,714 201,471 154,203 784,281
Employer's 159,139 126,903 141,603 51,669 43,826 232,291
----------- ----------- ----------- ----------- ----------- -----------
648,399 524,758 570,317 253,140 198,029 1,016,572
----------- ----------- ----------- ----------- ----------- -----------
Total additions 1,522,545 798,586 964,530 540,135 481,900 3,178,326
----------- ----------- ----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (132,846) (136,649) (517,900) (13,175) (213,845) (248,280)
Insurance premiums paid -- -- -- -- -- --
Administrative expenses (87) (71) (141) (20) (38) (192)
----------- ----------- ----------- ----------- ----------- -----------
Total deductions (132,933) (136,720) (518,041) (13,195) (213,883) (248,472)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers 1,389,612 661,866 446,489 526,940 268,017 2,929,854
Interfund transfers 1,885 (442,588) 100,348 220,070 175,944 918,194
Participant loan withdrawals (102,625) (83,937) (136,073) (22,328) (18,965) (185,247)
Participant loan repayments 73,322 72,452 121,411 19,091 19,734 128,936
Transfers from other plans -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
(27,418) (454,073) 85,686 216,833 176,713 861,883
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 1,362,194 207,793 532,175 743,773 444,730 3,791,737
Net assets available for benefits:
Beginning of year 2,665,174 2,186,525 5,727,427 780,173 945,164 2,875,700
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 4,027,368 $ 2,394,318 $ 6,259,602 $ 1,523,946 $ 1,389,894 $ 6,667,437
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Blue Chip Fidelity Fidelity Fidelity
Growth Magellan Contra Puritan Participant A&T
Year ended December 31, 1996 Fund Fund Fund Fund Loans Stock Total
----------- ----------- ----------- --------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income
Net realized gains (losses) $ 16,054 $ (28,998) $ 8,633 $ 1,381 $ -- $ (14,837) $ 377,464
Net unrealized gains (losses) 328,741 (33,696) 152,317 6,483 -- 41,141 4,224,942
Interest 5,498 6,250 5,536 1,209 -- 1,608 238,120
Dividends 36,165 223,449 131,183 50,489 -- 19,627 4,821,723
----------- ----------- ----------- --------- ----------- ----------- ------------
386,458 167,005 297,669 59,562 -- 47,539 9,662,249
----------- ----------- ----------- --------- ----------- ----------- ------------
Contributions:
Participants' 341,296 362,508 297,262 89,190 -- 306,766 6,726,845
Employer's 103,907 97,203 84,584 27,175 -- 30,215 2,014,768
----------- ----------- ----------- --------- ----------- ----------- ------------
445,203 459,711 381,846 116,365 -- 336,981 8,741,613
----------- ----------- ----------- --------- ----------- ----------- ------------
Total additions 831,661 626,716 679,515 175,927 -- 384,520 18,403,862
----------- ----------- ----------- --------- ----------- ----------- ------------
Deductions from net assets
attributed to:
Benefits paid to participants (60,551) (107,249) (51,276) (26,974) (218,910) (38,673) (3,131,046)
Insurance premiums paid -- -- -- -- -- -- (8,592)
Administrative expenses (27) (33) (25) (3) -- (26) (1,485)
----------- ----------- ----------- --------- ----------- ----------- ------------
Total deductions (60,578) (107,282) (51,301) (26,977) (218,910) (38,699) (3,141,123)
----------- ----------- ----------- --------- ----------- ----------- ------------
Net increase (decrease) prior
to
interfund transfers 771,083 519,434 628,214 148,950 (218,910) 345,821 15,262,739
Interfund transfers 710,156 (220,099) 393,989 (96,513) (3,230) (140,132) --
Participant loan withdrawals (26,177) (62,689) (49,691) (5,599) 1,674,604 (12,748) --
Participant loan repayments 23,108 24,178 21,339 3,832 (1,133,398) 9,687 --
Transfers from other plans 1,101,141 -- -- -- 195,097 -- 5,700,806
----------- ----------- ----------- --------- ----------- ----------- ------------
1,808,228 (258,610) 365,637 (98,280) 733,073 (143,193) 5,700,806
----------- ----------- ----------- --------- ----------- ----------- ------------
Net increase (decrease) 2,579,311 260,824 993,851 50,670 514,163 202,628 20,963,545
Net assets available for
benefits:
Beginning of year 610,923 1,229,676 904,077 436,505 2,773,254 853,800 58,588,911
----------- ----------- ----------- --------- ----------- ----------- ------------
End of year $ 3,190,234 $ 1,490,500 $ 1,897,928 $ 487,175 $ 3,287,417 $ 1,056,428 $ 79,552,456
=========== =========== =========== ========= =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
Blue Chip Fidelity Fidelity Fidelity
Growth Magellan Contra Puritan Participant A&T
Year ended December 31, 1995 Fund Fund Fund Fund Loans Stock Total
--------- ----------- --------- --------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income
Net realized gains (losses) $ 6,215 $ 38,268 $ 8,378 $ 1,758 $ -- $ (10,218) $ 1,079,957
Net unrealized gains (losses) 67,267 112,019 58,339 37,965 -- 10,085 5,479,251
Interest 1,113 2,570 1,810 891 -- 1,591 191,170
Dividends 9,162 68,448 70,816 21,211 -- 11,600 3,700,360
--------- ----------- --------- --------- ----------- ------------ ------------
83,757 221,305 139,343 61,825 -- 13,058 10,450,738
--------- ----------- --------- --------- ----------- ------------ ------------
Contributions:
Participants' 85,554 187,820 119,221 49,517 -- 175,124 5,241,245
Employer's 20,045 61,072 38,013 19,601 -- 26,869 1,567,973
--------- ----------- --------- --------- ----------- ------------ ------------
105,599 248,892 157,234 69,118 -- 201,993 6,809,218
--------- ----------- --------- --------- ----------- ------------ ------------
Total additions 189,356 470,197 296,577 130,943 -- 215,051 17,259,956
--------- ----------- --------- --------- ----------- ------------ ------------
Deductions from net assets
attributed to:
Benefits paid to participants (8,365) (30,606) (13,694) (20,807) (137,818) (88,986) (3,945,892)
Insurance premiums paid -- -- -- -- -- -- (9,275)
Administrative expenses (2) (18) (8) (14) -- -- (1,305)
--------- ----------- --------- --------- ----------- ------------ ------------
Total deductions (8,367) (30,624) (13,702) (20,821) (137,818) (88,986) (3,956,472)
--------- ----------- --------- --------- ----------- ------------ ------------
Net increase (decrease) prior to
interfund transfers 180,989 439,573 282,875 110,122 (137,818) 126,065 13,303,484
Interfund transfers 326,187 313,110 492,949 143,062 3,230 (196,933) --
Participant loan withdrawals (5,012) (13,162) (10,131) (4,677) 1,319,722 -- --
Participant loan repayments 5,272 11,149 5,723 2,053 (950,467) 5,834 --
Transfers from other plans 103,487 479,006 132,661 185,945 -- 370,650 1,920,452
--------- ----------- --------- --------- ----------- ------------ ------------
429,934 790,103 621,202 326,383 372,485 179,551 1,920,452
--------- ----------- --------- --------- ----------- ------------ ------------
Net increase (decrease) 610,923 1,229,676 904,077 436,505 234,667 305,616 15,223,936
Net assets available for benefits:
Beginning of year -- -- -- -- 2,538,587 548,184 43,364,975
--------- ----------- --------- --------- ----------- ------------ ------------
End of year $ 610,923 $ 1,229,676 $ 904,077 $ 436,505 $ 2,773,254 $ 853,800 $ 58,588,911
========= =========== ========= ========= =========== ============ ============
</TABLE>
9
<PAGE> 15
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
(5) Guaranteed Investment Contract ("GIC") Funds
Beginning April 1, 1990, all contributions to the GIC Fund were invested
in the T. Rowe Price Stable Value Common Trust Fund (formerly the Managed
GIC Common Trust Fund). The Stable Value Common Trust Fund invests in
several types of GICs with varying maturity periods from a number of
insurance companies and other stable value contracts.
(6) 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
Plan termination, participants will become fully vested in their
accounts.
(7) Tax Status
On June 16, 1995, the Internal Revenue Service issued a Determination
letter which stated that the Plan and its underlying Trust (the "Plan")
qualify under Section 401(a) of the Internal Revenue Code (the "Code")
and therefore, is exempt from federal income taxes under Section 501(a)
of the Code. In the opinion of the Plan's Administrator, the Plan has
continued to operate within the terms of the plan document and applicable
regulations and remains qualified under the Code.
(8) Contributions
For purposes of Form 5500 filings, the contributions to the plan are
reported in an alternative manner to the financial statement
presentation. Employer contributions on the Form 5500 represent actual
employer contributions as well as employee contributions made via salary
deferrals. Employee contributions represent rollover contributions from
employees' previous employers. These two amounts totaled $7,283,604 and
$1,458,009, respectively, for the plan year ended December 31, 1996 and
$6,179,241 and $629,977, respectively, for the plan year ended December
31, 1995.
(9) Plan Mergers
Effective October 1, 1996, the Vector Research Company, Inc. Profit
Sharing Plan and the Vector Research Company, Inc. Pension Plan were
merged into the Plan. Vector Research Company, Inc. was acquired by A&T
during 1996.
Effective January 1, 1995, the ASA 401(k) Retirement Savings Plan was
merged into the Plan. Effective October 1, 1995, the ASA Employee Stock
Ownership Plan was merged into the Plan.
ASA is a subsidiary of A&T.
10
<PAGE> 16
Schedule 1
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1996
<TABLE>
<CAPTION>
Identity of issue, borrower,
lessor or similar party Description of investment Cost Current Value
----------------------- ------------------------- ---- -------------
<S> <C> <C> <C>
*T. Rowe Price Prime Reserve Fund $ 4,313,533 $ 4,313,533
*T. Rowe Price Prime Reserve Insurance Fund 15,592 15,592
*T. Rowe Price New Era Fund 6,048,548 7,335,574
*T. Rowe Price New Income Fund 4,190,442 4,247,173
*T. Rowe Price Equity Income Fund 14,431,965 18,601,861
*T. Rowe Price Spectrum Income Fund 1,656,553 1,705,306
*T. Rowe Price Spectrum Growth Fund 4,372,834 5,262,953
*T. Rowe Price International Stock Fund 3,980,127 4,446,034
*T. Rowe Price Stable Value Common Trust Fund 7,627,341 7,627,341
*T. Rowe Price Small Cap Value Fund 1,979,312 2,392,903
*T. Rowe Price Growth & Income Fund 3,062,006 3,540,701
*T. Rowe Price Science & Technology Fund 7,747,841 8,653,803
*T. Rowe Price Blue Chip Growth Fund 2,816,009 3,190,234
Fidelity Investments Magellan Fund 1,429,755 1,490,500
Fidelity Investments Contra Fund 1,701,049 1,897,928
Fidelity Investments Puritan Fund 452,803 487,175
*Analysis & Technology, Inc. Common Stock 974,535 1,056,428
------------ ------------
66,800,245 76,265,039
Loans to participants Various loans with interest
rates ranging from 8.6% to 11.5% 3,287,417 3,287,417
------------ ------------
$ 70,087,662 $ 79,552,456
============ ============
</TABLE>
*Indicates a party in interest to the plan.
11
<PAGE> 17
Schedule 2
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Item 27d- Schedule of Reportable Transactions
Year ended December 31, 1996
<TABLE>
<CAPTION>
Current
value of asset
Identity of party Purchase Selling Cost of on transaction Net gain
involved Description of Asset price price asset date or (loss)
-------- -------------------- ----- ----- ----- ---- ---------
<S> <C> <C> <C> <C> <C> <C>
T. Rowe Price Stable Value Common Trust Fund $2,859,466 -- 2,859,466 2,859,466 --
T. Rowe Price Stable Value Common Trust Fund -- 1,491,727 1,491,727 1,491,727 --
T. Rowe Price New Era Mutual Fund 1,458,632 -- 1,458,632 1,457,916 (716)
T. Rowe Price New Era Mutual Fund -- 1,091,731 933,833 1,091,731 157,898
T. Rowe Price Prime Reserve Mutual Fund 1,415,531 -- 1,415,531 1,415,531 --
T. Rowe Price Prime Reserve Mutual Fund -- 1,436,298 1,436,298 1,436,298 --
T. Rowe Price Science & Technology Mutual Fund 3,718,815 -- 3,718,815 3,718,071 (744)
T. Rowe Price Science & Technology Mutual Fund -- 1,844,638 1,558,029 1,844,638 286,609
T. Rowe Price Equity Income Mutual Fund 4,726,690 -- 4,726,690 4,722,799 (3,891)
T. Rowe Price Equity Income Mutual Fund -- 1,194,180 971,390 1,194,180 222,790
T. Rowe Price Blue Chip Growth Fund 2,450,967 -- 2,450,967 2,450,959 (8)
T. Rowe Price Blue Chip Growth Fund -- 216,443 184,747 216,443 31,696
</TABLE>
12
<PAGE> 18
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors
Analysis & Technology, Inc.
We consent to incorporation by reference in the registration statements (Nos.
333-05267, 333-04265, 33-86666, 33-86576, 33-59396, 33-52582, 33-37710,
33-34004, 33-31829, 33-25074, 33-17313, and 33-09067) on Form S-8 of Analysis &
Technology, Inc. of our report dated May 2, 1997, relating to the consolidated
balance sheets of Analysis & Technology, Inc. and subsidiaries as of March 31,
1997 and 1996, and the related consolidated statements of earnings,
shareholders' equity, and cash flows for each of the years in the three-year
period ended March 31, 1997, which report appears in the March 31, 1997 annual
report on Form 10-K of Analysis & Technology, Inc.
In addition, we consent to incorporation by reference in the registration
statement (Nos. 333-05267, 333-04265, 33-86666, 33-86576, 33-59396, 33-52582,
33-37710, 33-34004, 33-31829, 33-25074, 33-17313, and 33-09067) on Form S-8 of
Analysis and Technology, Inc. of our report dated May 8, 1997, relating to the
statements of net assets available for plan benefits of the Analysis &
Technology, Inc. Savings and Investment Plan as of December 31, 1996 and 1995,
and the related statements of changes in net assets available for plan benefits
for the years then ended, and the related supplementary schedules, which report
appears in the December 31, 1996 annual report on Form 11-K of the Analysis &
Technology, Inc. Savings and Investment Plan.
KPMG Peat Marwick LLP
Hartford, Connecticut
June 23, 1997
