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