<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, 1997
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, 1997 and 1996.
3. Statements of changes in net assets available for Plan
benefits for the years ended December 31, 1997 and 1996.
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 24, 1998
<PAGE> 4
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1997 AND 1996
(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
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, 1997 and 1996, 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,
1997 and 1996, 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,
1997 and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
KPMG Peat Marwick LLP
May 8, 1998
<PAGE> 7
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Investments in T. Rowe Price Group funds (note 3):
Prime Reserve Fund $ 4,448,792 4,313,533
Prime Reserve Fund - Insurance 10,910 15,592
New Era Fund 7,791,304 7,335,574
New Income Fund 4,343,119 4,247,173
Equity Income Fund 24,171,850 18,601,861
Spectrum Income Fund 2,010,742 1,705,306
Spectrum Growth Fund 6,228,587 5,262,953
International Stock Fund 4,164,574 4,446,034
Stable Value Common Trust Fund 7,125,252 7,627,341
Small-Cap Value Fund 4,233,812 2,392,903
Growth and Income Fund 4,795,652 3,540,701
Science and Technology Fund 9,635,464 8,653,803
Blue Chip Growth Fund 5,660,562 3,190,234
Investment in Fidelity funds (note 3):
Magellan Fund 1,959,858 1,490,500
Contra Fund 2,757,624 1,897,928
Puritan Fund 741,597 487,175
----------- -----------
90,079,699 75,208,611
Analysis & Technology, Inc. common stock (note 3) 2,425,271 1,056,428
----------- -----------
Total investments 92,504,970 76,265,039
Loans to participants (note 1(d)) 3,564,223 3,287,417
----------- -----------
Net assets available for plan benefits $96,069,193 79,552,456
=========== ===========
</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, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net realized gains $ 1,173,942 377,464
Net unrealized gains 5,484,359 4,224,942
Interest 287,305 238,120
Dividends 7,057,948 4,821,723
------------ ------------
14,003,554 9,662,249
------------ ------------
Contributions (note 7):
Participant 7,181,398 6,726,845
Employer 2,179,471 2,014,768
------------ ------------
9,360,869 8,741,613
------------ ------------
Total additions 23,364,423 18,403,862
------------ ------------
Deductions from net assets attributed to:
Benefits paid (4,869,836) (3,131,046)
Insurance premiums (6,950) (8,592)
Administrative expenses (1,528) (1,485)
------------ ------------
Total deductions (4,878,314) (3,141,123)
------------ ------------
Net increase prior to transfers (to) from other plans 18,486,109 15,262,739
Transfers (to) from other plans (note 8) (1,969,372) 5,700,806
------------ ------------
Net increase in net assets available for benefits 16,516,737 20,963,545
Net assets available for benefits:
Beginning of year 79,552,456 58,588,911
------------ ------------
End of year $ 96,069,193 79,552,456
============ ============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 9
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(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"),
Interactive Media Corporation ("IMC") 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:
Years of Percentage of vesting
credited service in employer contributions
---------------- -------------------------
Less than three years 0%
Three years 20%
Four years 40%
Five years 60%
Six years 80%
Seven years or more 100%
4
<PAGE> 10
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
Participants at ETC vest as follows:
Years of Percentage of vesting
credited service in employer contributions
---------------- -------------------------
Less than one year 0%
One year 33-1/3%
Two years 66-2/3%
Three years or more 100%
(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
$547,000 during 1997 and $150,000 during 1996.
(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,
1997 and 1996. Investments representing 5% or more of net assets
available for benefits are indicated by an asterisk (*).
<TABLE>
<CAPTION>
1997 1996
-------------------------- ----------------------------
Fair
market/ Fair market/
Number of contract Number of contract
shares value shares value
------ ----- ------ -----
<S> <C> <C> <C> <C>
T. Rowe Price Funds:
Prime Reserve Fund 4,448,792 $ 4,448,792 4,313,533 $ 4,313,533*
Prime Reserve Fund - Insurance 10,910 10,910 15,592 15,592
New Era Fund 300,243 7,791,304* 281,488 7,335,574*
New Income Fund 478,844 4,343,119 477,747 4,247,173*
Equity Income Fund 927,190 24,171,850* 825,282 18,601,861*
Spectrum Income Fund 172,448 2,010,742 152,259 1,705,306
Spectrum Growth Fund 390,997 6,228,587* 347,849 5,262,953*
International Stock Fund 310,326 4,164,574 322,176 4,446,034*
</TABLE>
(Continued)
6
<PAGE> 12
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
1997 1996
------------------------ --------------------------
Fair
market/ Fair market/
Number of contract Number of contract
shares value shares value
------ ----- ------ -----
<S> <C> <C> <C> <C>
Stable Value Common
Trust Fund 7,125,252 $ 7,125,252* 7,627,341 $ 7,627,341*
Small-Cap Value Fund 180,932 4,233,812 122,337 2,392,903
Growth and Income Fund 181,929 4,795,652 156,461 3,540,701
Science and Technology Fund 353,465 9,635,464* 291,276 8,653,803*
Blue Chip Growth Fund 234,198 5,660,562* 167,378 3,190,234
Fidelity Funds:
Magellan Fund 20,572 1,959,858 18,481 1,490,500
Contra Fund 59,138 2,757,624 45,028 1,897,928
Puritan Funds 38,266 741,597 28,258 487,175
---------- ----------
$90,079,699 $ 75,208,611
========== ==========
</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, 1997 and 1996 were as follows:
1997 1996
----------------------------- ---------------------------
Number of Market price Number of Market price
shares per share shares per share
------ --------- ------ ---------
86,232 $ 28.13 72,857 $ 14.50
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, 1997 were:
<TABLE>
<CAPTION>
Prime
Prime Reserve New New
Reserve Insurance Era Income
Year ended December 31, 1997 Fund Fund Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ - $ - $ 120,752 $ 312
Net unrealized gains (losses) - - (74,930) 85,702
Interest 13,869 - 25,431 14,944
Dividends 218,012 672 780,009 294,947
----------- ----------- ----------- -----------
231,881 672 851,262 395,905
----------- ----------- ----------- -----------
Contributions:
Participants' 322,246 6,895 342,246 281,804
Employer's 170,609 13 91,303 69,087
----------- ----------- ----------- -----------
492,855 6,908 433,549 350,891
----------- ----------- ----------- -----------
Total additions 724,736 7,580 1,284,811 746,796
----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (365,434) (5,112) (426,448) (358,417)
Insurance premiums paid - (6,950) - -
Administrative expenses (55) - (162) (70)
----------- ----------- ----------- -----------
Total deductions (365,489) (12,062) (426,610) (358,487)
----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers 359,247 (4,482) 858,201 388,309
Interfund transfers (134,397) (200) (138,491) (209,848)
Participant loan withdrawals (99,530) - (200,167) (75,413)
Participant loan repayments 41,003 - 116,906 55,131
Transfers from other plans (31,064) - (180,719) (62,233)
----------- ----------- ----------- -----------
(223,988) (200) (402,471) (292,363)
----------- ----------- ----------- -----------
Net increase (decrease) 135,259 (4,682) 455,730 95,946
Net assets available for benefits:
Beginning of year 4,313,533 15,592 7,335,574 4,247,173
----------- ----------- ----------- -----------
End of year $ 4,448,792 $ 10,910 $ 7,791,304 $ 4,343,119
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Equity Spectrum Spectrum International
Income Income Growth Stock
Year ended December 31, 1997 Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ 310,374 $ 8,756 $ 88,911 $ 59,025
Net unrealized gains (losses) 2,730,966 63,350 209,527 (146,011)
Interest 57,899 9,011 19,344 19,410
Dividends 2,399,765 136,645 628,619 220,626
------------ ------------ ------------ ------------
5,499,004 217,762 946,401 153,050
------------ ------------ ------------ ------------
Contributions:
Participants' 1,185,990 246,752 535,224 364,741
Employer's 311,663 84,383 156,696 117,702
------------ ------------ ------------ ------------
1,497,653 331,135 691,920 482,443
------------ ------------ ------------ ------------
Total additions 6,996,657 548,897 1,638,321 635,493
------------ ------------ ------------ ------------
Deductions from net assets attributed to:
Benefits paid to participants (784,143) (97,673) (154,479) (148,156)
Insurance premiums paid - - - -
Administrative expenses (301) (57) (100) (87)
------------ ------------ ------------ ------------
Total deductions (784,444) (97,730) (154,579) (148,243)
------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 6,212,213 451,167 1,483,742 487,250
Interfund transfers (158,473) (53,894) (295,570) (492,532)
Participant loan withdrawals (342,569) (55,088) (131,429) (118,249)
Participant loan repayments 252,666 42,830 95,601 69,546
Transfers from other plans (393,848) (79,579) (186,710) (227,475)
------------ ------------ ------------ ------------
(642,224) (145,731) (518,108) (768,710)
------------ ------------ ------------ ------------
Net increase (decrease) 5,569,989 305,436 965,634 (281,460)
Net assets available for benefits:
Beginning of year 18,601,861 1,705,306 5,262,953 4,446,034
------------ ------------ ------------ ------------
End of year $ 24,171,850 $ 2,010,742 $ 6,228,587 $ 4,164,574
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Stable
Value Small-Cap Growth & Science &
Common Value Income Technology
Year ended December 31, 1997 Trust Fund Fund Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ - $ 55,483 $ 59,775 $ 111,465
Net unrealized gains (losses) - 452,685 558,523 (829,049)
Interest 17,987 9,090 10,837 56,233
Dividends 446,039 267,635 263,299 907,670
----------- ----------- ----------- -----------
464,026 784,893 892,434 246,319
----------- ----------- ----------- -----------
Contributions:
Participants' 380,945 417,033 383,380 1,005,069
Employer's 88,877 127,371 108,410 316,460
----------- ----------- ----------- -----------
469,822 544,404 491,790 1,321,529
----------- ----------- ----------- -----------
Total additions 933,848 1,329,297 1,384,224 1,567,848
----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (1,026,369) (111,268) (216,106) (374,878)
Insurance premiums paid - - - -
Administrative expenses (131) (27) (50) (283)
----------- ----------- ----------- -----------
Total deductions (1,026,500) (111,295) (216,156) (375,161)
----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers (92,652) 1,218,002 1,168,068 1,192,687
Interfund transfers (268,655) 690,094 158,806 34,286
Participant loan withdrawals (154,607) (53,442) (69,796) (286,906)
Participant loan repayments 66,207 37,343 46,929 240,378
Transfers from other plans (52,382) (51,088) (49,056) (198,784)
----------- ----------- ----------- -----------
(409,437) 622,907 86,883 (211,026)
----------- ----------- ----------- -----------
Net increase (decrease) (502,089) 1,840,909 1,254,951 981,661
Net assets available for benefits:
Beginning of year 7,627,341 2,392,903 3,540,701 8,653,803
----------- ----------- ----------- -----------
End of year $ 7,125,252 $ 4,233,812 $ 4,795,652 $ 9,635,464
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Blue Chip Fidelity Fidelity Fidelity
Growth Magellan Contra Puritan
Year ended December 31, 1997 Fund Fund Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ 105,361 $ 43,605 $ 56,718 $ 7,257
Net unrealized gains (losses) 905,414 224,466 189,055 55,944
Interest 13,930 7,424 8,140 1,591
Dividends 32,402 122,265 260,328 56,367
----------- ----------- ----------- -----------
1,057,107 397,760 514,241 121,159
----------- ----------- ----------- -----------
Contributions:
Participants' 687,895 261,141 340,533 118,308
Employer's 228,617 104,594 129,432 42,300
----------- ----------- ----------- -----------
916,512 365,735 469,965 160,608
----------- ----------- ----------- -----------
Total additions 1,973,619 763,495 984,206 281,767
----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (154,210) (155,322) (109,639) (48,640)
Insurance premiums paid - - - -
Administrative expenses (98) (41) (50) (2)
----------- ----------- ----------- -----------
Total deductions (154,308) (155,363) (109,689) (48,642)
----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers 1,819,311 608,132 874,517 233,125
Interfund transfers 825,796 (67,687) 104,501 43,990
Participant loan withdrawals (60,359) (26,877) (38,584) (3,993)
Participant loan repayments 67,236 25,868 38,105 5,267
Transfers from other plans (181,656) (70,078) (118,843) (23,967)
----------- ----------- ----------- -----------
651,017 (138,774) (14,821) 21,297
----------- ----------- ----------- -----------
Net increase (decrease) 2,470,328 469,358 859,696 254,422
Net assets available for benefits:
Beginning of year 3,190,234 1,490,500 1,897,928 487,175
----------- ----------- ----------- -----------
End of year $ 5,660,562 $ 1,959,858 $ 2,757,624 $ 741,597
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Participant A&T
Year ended December 31, 1997 Loans Stock Total
------------ ------------ ------------
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ - $ 146,148 $ 1,173,942
Net unrealized gains (losses) 530 1,058,187 5,484,359
Interest - 2,165 287,305
Dividends - 22,648 7,057,948
------------ ------------ ------------
530 1,229,148 14,003,554
------------ ------------ ------------
Contributions:
Participants' - 301,196 7,181,398
Employer's - 31,954 2,179,471
------------ ------------ ------------
- 333,150 9,360,869
------------ ------------ ------------
Total additions 530 1,562,298 23,364,423
------------ ------------ ------------
Deductions from net assets attributed to:
Benefits paid to participants (250,515) (83,027) (4,869,836)
Insurance premiums paid - - (6,950)
Administrative expenses - (14) (1,528)
------------ ------------ ------------
Total deductions (250,515) (83,041) (4,878,314)
------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers (249,985) 1,479,257 18,486,109
Interfund transfers (530) (37,196) -
Participant loan withdrawals 1,737,014 (20,005) -
Participant loan repayments (1,209,693) 8,677 -
Transfers from other plans - (61,890) (1,969,372)
------------ ------------ ------------
526,791 (110,414) (1,969,372)
------------ ------------ ------------
Net increase (decrease) 276,806 1,368,843 16,516,737
Net assets available for benefits:
Beginning of year 3,287,417 1,056,428 79,552,456
------------ ------------ ------------
End of year $ 3,564,223 $ 2,425,271 $ 96,069,193
============ ============ ============
</TABLE>
Changes in net assets for the year ended December 31, 1996 were:
<TABLE>
<CAPTION>
Prime
Prime Reserve New New Equity
Reserve Insurance Era Income Income
Year ended December 31, 1996 Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ - $ - $ 112,816 $ (28,685) $ 89,398
Net unrealized gains (losses) - - 785,596 (152,867) 1,723,470
Interest 11,207 - 24,161 14,672 48,937
Dividends 205,487 544 543,230 278,192 1,124,959
------------ ------------ ------------ ------------ ------------
216,694 544 1,465,803 111,312 2,986,764
------------ ------------ ------------ ------------ ------------
Contributions:
Participants' 310,446 13,568 400,433 271,297 1,160,457
Employer's 94,970 - 118,549 98,910 353,613
------------ ------------ ------------ ------------ ------------
405,416 13,568 518,982 370,207 1,514,070
------------ ------------ ------------ ------------ ------------
Total additions 622,110 14,112 1,984,785 481,519 4,500,834
------------ ------------ ------------ ------------ ------------
Deductions from net assets attributed to:
Benefits paid to participants (304,020) (380) (389,894) (149,405) (594,127)
Insurance premiums paid - (8,592) - - -
Administrative expenses (68) - (152) (70) (291)
------------ ------------ ------------ ------------ ------------
Total deductions (304,088) (8,972) (390,046) (149,475) (594,418)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 318,022 5,140 1,594,739 332,044 3,906,416
Interfund transfers (339,820) (565) (237,071) (344,443) 440,135
Participant loan withdrawals (58,108) - (194,960) (95,046) (328,351)
Participant loan repayments 55,273 - 101,890 70,739 222,124
Transfers from other plans - - - - 1,101,143
------------ ------------ ------------ ------------ ------------
(342,655) (565) (330,141) (368,750) 1,435,051
------------ ------------ ------------ ------------ ------------
Net increase (decrease) (24,633) 4,575 1,264,598 (36,706) 5,341,467
Net assets available for benefits:
Beginning of year 4,338,166 11,017 6,070,976 4,283,879 13,260,394
------------ ------------ ------------ ------------ ------------
End of year $ 4,313,533 $ 15,592 $ 7,335,574 $ 4,247,173 $ 18,601,861
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Stable
Spectrum Spectrum International Value Small-Cap
Income Growth Stock Common Value
Year ended December 31, 1996 Fund Fund Fund Trust Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ (4,823) $ 41,225 $ 28,815 $ - $ 18,470
Net unrealized gains (losses) (823) 440,774 330,363 - 276,300
Interest 7,137 17,982 16,510 19,832 8,022
Dividends 122,140 364,010 118,560 374,856 118,873
----------- ----------- ----------- ----------- -----------
123,631 863,991 494,248 394,688 421,665
----------- ----------- ----------- ----------- -----------
Contributions:
Participants' 234,166 482,967 363,879 376,843 294,443
Employer's 78,012 171,114 129,173 115,774 87,459
----------- ----------- ----------- ----------- -----------
312,178 654,081 493,052 492,617 381,902
----------- ----------- ----------- ----------- -----------
Total additions 435,809 1,518,072 987,300 887,305 803,567
----------- ----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (58,909) (147,626) (142,596) (384,401) (79,231)
Insurance premiums paid - - - - -
Administrative expenses (42) (138) (84) (137) (30)
----------- ----------- ----------- ----------- -----------
Total deductions (58,951) (147,764) (142,680) (384,538) (79,261)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers 376,858 1,370,308 844,620 502,767 724,306
Interfund transfers (203,351) (122,512) 96,624 (137,403) 146,630
Participant loan withdrawals (58,794) (125,504) (62,626) (191,007) (29,524)
Participant loan repayments 36,914 113,293 71,955 92,241 27,545
Transfers from other plans - - 1,101,143 1,101,141 -
----------- ----------- ----------- ----------- -----------
(225,231) (134,723) 1,207,096 864,972 144,651
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 151,627 1,235,585 2,051,716 1,367,739 868,957
Net assets available for benefits:
Beginning of year 1,553,679 4,027,368 2,394,318 6,259,602 1,523,946
----------- ----------- ----------- ----------- -----------
End of year $ 1,705,306 $ 5,262,953 $ 4,446,034 $ 7,627,341 $ 2,392,903
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Growth & Science & Blue Chip Fidelity Fidelity
Income Technology Growth Magellan Contra
Year ended December 31, 1996 Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ 15,009 $ 123,006 $ 16,054 $ (28,998) $ 8,633
Net unrealized gains (losses) 337,163 (10,020) 328,741 (33,696) 152,317
Interest 6,970 42,589 5,498 6,250 5,536
Dividends 182,553 927,406 36,165 223,449 131,183
----------- ----------- ----------- ----------- -----------
541,695 1,082,981 386,458 167,005 297,669
----------- ----------- ----------- ----------- -----------
Contributions:
Participants' 315,182 1,106,142 341,296 362,508 297,262
Employer's 80,951 343,159 103,907 97,203 84,584
----------- ----------- ----------- ----------- -----------
396,133 1,449,301 445,203 459,711 381,846
----------- ----------- ----------- ----------- -----------
Total additions 937,828 2,532,282 831,661 626,716 679,515
----------- ----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Benefits paid to participants (70,173) (306,651) (60,551) (107,249) (51,276)
Insurance premiums paid - - - - -
Administrative expenses (24) (335) (27) (33) (25)
----------- ----------- ----------- ----------- -----------
Total deductions (70,197) (306,986) (60,578) (107,282) (51,301)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) prior to
interfund transfers 867,631 2,225,296 771,083 519,434 628,214
Interfund transfers 182,767 (125,162) 710,156 (220,099) 393,989
Participant loan withdrawals (35,109) (338,671) (26,177) (62,689) (49,691)
Participant loan repayments 34,377 224,903 23,108 24,178 21,339
Transfers from other plans 1,101,141 - 1,101,141 - -
----------- ----------- ----------- ----------- -----------
1,283,176 (238,930) 1,808,228 (258,610) 365,637
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 2,150,807 1,986,366 2,579,311 260,824 993,851
Net assets available for benefits:
Beginning of year 1,389,894 6,667,437 610,923 1,229,676 904,077
----------- ----------- ----------- ----------- -----------
End of year $ 3,540,701 $ 8,653,803 $ 3,190,234 $ 1,490,500 $ 1,897,928
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Fidelity
Puritan Participant A&T
Year ended December 31, 1996 Fund Loans Stock Total
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income
Net realized gains (losses) $ 1,381 $ - $ (14,837) $ 377,464
Net unrealized gains (losses) 6,483 - 41,141 4,224,942
Interest 1,209 - 1,608 238,120
Dividends 50,489 - 19,627 4,821,723
------------ ------------ ------------ ------------
59,562 - 47,539 9,662,249
------------ ------------ ------------ ------------
Contributions:
Participants' 89,190 - 306,766 6,726,845
Employer's 27,175 - 30,215 2,014,768
------------ ------------ ------------ ------------
116,365 - 336,981 8,741,613
------------ ------------ ------------ ------------
Total additions 175,927 - 384,520 18,403,862
------------ ------------ ------------ ------------
Deductions from net assets attributed to:
Benefits paid to participants (26,974) (218,910) (38,673) (3,131,046)
Insurance premiums paid - - - (8,592)
Administrative expenses (3) - (26) (1,485)
------------ ------------ ------------ ------------
Total deductions (26,977) (218,910) (38,699) (3,141,123)
------------ ------------ ------------ ------------
Net increase (decrease) prior to
interfund transfers 148,950 (218,910) 345,821 15,262,739
Interfund transfers (96,513) (3,230) (140,132) -
Participant loan withdrawals (5,599) 1,674,604 (12,748) -
Participant loan repayments 3,832 (1,133,398) 9,687 -
Transfers from other plans - 195,097 - 5,700,806
------------ ------------ ------------ ------------
(98,280) 733,073 (143,193) 5,700,806
------------ ------------ ------------ ------------
Net increase (decrease) 50,670 514,163 202,628 20,963,545
Net assets available for benefits:
Beginning of year 436,505 2,773,254 853,800 58,588,911
------------ ------------ ------------ ------------
End of year $ 487,175 $ 3,287,417 $ 1,056,428 $ 79,552,456
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE> 15
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Notes to Financial Statements
(5) 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.
(6) Tax Status
On June 1, 1994, 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.
(7) 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 $7,969,991 and
$1,390,878, respectively, for the plan year ended December 31, 1997 and
$7,283,604 and $1,458,009, respectively, for the plan year ended December
31, 1996.
(8) Plan Transfers
On July 18, 1997, the Company sold its interest in ASI to its
joint-venture partner, Brown & Sharpe Manufacturing Company. In
connection with this sale, all plan assets of participants who were
employees of ASI were transferred to Putnam Fiduciary Trust Company.
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 the
Company during 1996.
10
<PAGE> 16
Schedule 1
ANALYSIS & TECHNOLOGY, INC.
SAVINGS AND INVESTMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
<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 $ 4,448,792 $ 4,448,792
*T. Rowe Price Prime Reserve Insurance Fund 10,910 10,910
*T. Rowe Price New Era Fund 6,744,554 7,791,304
*T. Rowe Price New Income Fund 4,210,419 4,343,119
*T. Rowe Price Equity Income Fund 17,656,776 24,171,850
*T. Rowe Price Spectrum Income Fund 1,910,217 2,010,742
*T. Rowe Price Spectrum Growth Fund 5,263,695 6,228,587
*T. Rowe Price International Stock Fund 3,949,380 4,164,574
*T. Rowe Price Stable Value Common Trust Fund 7,125,252 7,125,252
*T. Rowe Price Small Cap Value Fund 3,399,332 4,233,812
*T. Rowe Price Growth & Income Fund 3,836,362 4,795,652
*T. Rowe Price Science & Technology Fund 9,693,353 9,635,464
*T. Rowe Price Blue Chip Growth Fund 4,420,910 5,660,562
Fidelity Investments Magellan Fund 1,684,859 1,959,858
Fidelity Investments Contra Fund 2,414,201 2,757,624
Fidelity Investments Puritan Fund 655,189 741,597
*Analysis & Technology, Inc. Common Stock 1,294,284 2,425,271
----------- -----------
78,718,485 92,504,970
Loans to participants Various loans with interest
rates ranging from 6.0% to 11.5% 3,564,223 3,564,223
----------- -----------
$ 82,282,708 $ 96,069,193
========== ==========
</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, 1997
<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 $ 1,900,806 - 1,900,806 1,900,806 -
T. Rowe Price Stable Value Common Trust Fund - 2,402,896 2,402,896 2,402,896 -
T. Rowe Price Prime Reserve Mutual Fund 2,834,283 - 2,834,283 2,834,283 -
T. Rowe Price Prime Reserve Mutual Fund - 2,699,493 2,699,493 2,699,493 -
T. Rowe Price Science & Technology Mutual Fund 3,671,783 - 3,671,783 3,671,783 -
T. Rowe Price Science & Technology Mutual Fund - 1,972,524 1,787,856 1,972,524 184,668
T. Rowe Price Equity Income Mutual Fund 5,150,710 - 5,150,710 5,150,710 -
T. Rowe Price Equity Income Mutual Fund - 2,622,060 2,014,834 2,622,060 607,225
</TABLE>
12
<PAGE> 18
ACCOUNTANTS' CONSENT
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 1, 1998, relating to the consolidated
balance sheets of Analysis & Technology, Inc. and subsidiaries as of March 31,
1998 and 1997, 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, 1998, which report appears in the March 31, 1998 annual
report on Form 10-K of Analysis & Technology, Inc.
In addition, 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 and Technology, Inc. of our report dated May 8, 1998, relating to the
statements of net assets available for plan benefits of the Analysis &
Technology, Inc. Savings and Investment Plan as of December 31, 1997 and 1996,
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, 1997 annual report on Form 11-K of the Analysis &
Technology, Inc. Savings and Investment Plan.
KPMG Peat Marwick LLP
Providence, Rhode Island
June 24, 1998
